Payment gateway

Prime Functions and Classifications of Payment Gateway Systems Are you an IT engineering student willing to get a job with handsome salary? If yes, you should make sure of learning many innovative software solutions prevailing in the modern world. Especially, IT students pursuing their education from engineering college in Jabalpur should learn about payment gateways offered primarily by large numbers of banks, financial companies and other big organizations.

Payment Gateway and its Functions Payment gateway refers to an innovative type of e-commerce application service provider, whose prime responsibility is to authorize credit card payments for online retailers, ebusiness groups, bricks and clicks and traditional types of brick and mortar companies.

Payment gateways protect details of credit card via encryption of sensitive information, like credit card numbers and at the same time, to assure about securely passing of information in between the merchant and customers and even in between the payment processor and the merchant. If you possess good knowledge in concepts of encryption and decryption associated with syllabus of engineering in Shri Ram Institute of Technology, you could understand the mechanism of payment gateway without any difficulty.

Payment Gateway Classifications Experts associated with banks, financial institutions and other big organizations have classified the e-commerce solution as payment gateway in two different categories.

According to this, few of the gateways require own merchant accounts, while others involve usage of gateway’s merchant account.

Indeed the main question that strikes in the mind of people are what exactly the merchant account. Merchant account refers to a type of credit card account, which has setup with banks and allow in accepting of credit cards in the form of payment.

Own Merchant Account If the payment gateway requires using of own merchant account, it depends on only the individual to create an account with the bank and negotiate for suitable discounts directly. In contrast, individuals who already possess a merchant account with their respective banks simply need to inform banking personnel of requirement related to online merchant facilities.

Once the establishment of your merchant account completes, you may step ahead and link it with the suitable payment gateway to allow all sorts of transactions related to credit cards originate from the site and processed with the help of merchant account with the bank.

Payment Gateway’s Merchant Account Some of the payment gateways offer service, which involves the use of gateway’s merchant account. This is a type of indirect method to accept credit cards over the website. As per this setup, payment gateway charges a suitable discount rate for each transaction and holds all funds within the bank account.

Whenever you register yourself with the processor of any particular gateway, it will give access to the administration panel of your own, where you may view as well as edit each transaction concerning to credit card and linked to your website.