What is Payment Gateway ? - FintechForums Blogs

It’s a technology used by the merchants for receiving all digital payments from the customers. It collects customer card information and encrypts it for the processing of payments. Payment gateway includes physical card payments in retail stores, online store payment portals, also from last few years started accepting payments using OR codes or NFC(Near Field Communication).

How Payment Gateway Work :

It is the front-end technology that sends customer information to the merchant’s bank where the transaction is processed. Payment gateways are being upgraded according to the market needs like with the development of chip technologies the signature phase is eliminated with PIN (Personal Identification Number) which is entered directly into gateway hardware. Also contactless payments are now more in use in which customers use their phones instead of using a card. The architecture of a payment gateway is different for in-store gateway and online portal. For an online payments gateway the use of API(Application Programming Interfaces) is done which allows the website to communicate with payment processing network while in a in-store payment gateway POS(Point Of Sale) terminal is used to connect processing network using an internet connection.

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Vineet Katial

Vineet Katial is the founding director of Sky7 Ventures and the Owner of VistaMoney. This veteran businessman and investor is a founding member of TIE Detroit Angels and is on numerous boards for start-ups and charitable organisations. Mr. Vineet Katial has over 30 years of excellent professional experience. Vineet Katial played a significant role in the accomplishments of the organisations he previously worked for. Vineet Katial was a member of the group that established one of India’s earliest call centres, which is today among the biggest in the world. An enthusiastic businessman, Vineet has consistently provided advice, knowledge, and experience to new firms.

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