On the other hand, online payment processing businesses can increase their income even more as online consumers tend to buy more products/services due to the simplicity, convenience and protection offered by a secure online payment gateway.
How secure online payments work
The customer enters his payment details into the payment gateway.
The payment gateway receives the payment data and online payment gateways for business then passes it on to the merchant bank processor via a secure connection.
The merchant bank processor sends the payment to the credit card network.
This sends a payment authorization request to the customer's issuing bank.
This bank approves or declines the payment request and then forwards the results to the credit card network.
This sends the results back to the merchant bank processor.
The results are transmitted to the payment gateway.
If the payment is approved, the issuing bank sends the transaction to the Credit Card Network, which transfers the payment to the Merchant's bank.
It's so simple!
Advantages of accepting payments online
As mentioned earlier, online consumers are accustomed to a quick process of paying for what they buy, so instant gratification is a key motivation for shopping online.