Hello again, my friends!
Today we'll focus on Payment Gateways. What they are, why we need them, which ones can we trust and deal with.
So, what a Payment Gateway really is? A payment gateway is a way, a path, to process electronic transactions.
Payment gateways provide the tools to process payments between businesses, customers and financial institutions (banks).
We need them to buy goods that are sold online, or to accept payments from our customers if we have an online business.
The way that the whole system works is, more or less, as follows:
1.The customer makes a purchase. This can be via a Web site, or even by a phone order that the business enters in by hand while on the phone with the customer.
2.The Internet browser being used by the customer uses Secure Socket Layer (SSL) encryption to "scramble" the information being sent.
3.The business Web site takes the details and forwards them to the payment gateway. The payment gateway is separately hosted in some cases, and encryption is still necessary.
4.The payment gateway takes the information and sends the details to the bank used by the business.
5.The bank sends the request to the card association.
6.With Visa or MasterCard, the card association forwards the information to the bank that issued the card, to the customer's bank.
In the case of American Express or Discover, the card association is the same as the customer's bank, and a response can then be issued.
7.The customer's bank defines whether or not there are sufficient funds to cover the amount of the transaction.
8.The issuing bank then sends an authorization code. This code will tell the payment processor card association whether or not to allow the transaction to go through.
The authorization code corresponds to the reason for a decline if there is one, or simply includes the code that allows the transaction to take place.
9.The payment processor sends the authorization code to the payment gateway.
10.The payment gateway then sends the code on to the business. If the transaction is declined, the sale is canceled.
If the transaction is approved, the sale goes through and the money is placed on "hold" from the customer's account.
Quite simple, isn't it? Actually, the whole process takes no more than five (5) seconds!
Having all these in mind for educational purposes only, here are a short list of Payment Gateways that we can safely trust.
1. Paypal
Paypal is owned and operated by Ebay. Do you have a most trustworthy in mind? Despite some negative reviews, here and there, the fact remains:
You don't have anything to fear if you don't make something illegal! This is a fact after many years of using it!
Visit Paypal here: http://www.paypal.com
2. Google Checkout
Owned and operated by the biggest search engine worldwide, what else to say?
http://www.checkout.google.com
3. Clickbank
Clickbank is an affiliate network and Payment Gateway all together! I have personally used their services many times and i can assure you that your credit card info will totally safe with them!
Visit Clickbank here: http://www.clickbank.com
4. Amazon Payment Gateway
Owned and operated by one of the largest online webstores Amazon.com!
https://payments.amazon.com
5. 2checkout
This is one of the oldest and well known websites for direct transactions using your credit card. You don't have to make an account with them to use their services.
Visit 2checkout here: http://www.2checkout.com
6. Authorize.net
Another old and well known website that we can trust!
http://www.authorize.net
7. Moneybookers/Skrill
Basically the same website operated by two different domains. Old and well known Payment Gateway!
http://www.skrill.com or http://www.moneybookers.com
8. Neteller
More than a decade with us! A really old website.
http://www.neteller.com/
Are these the only Payment Gateways/Processors that we can trust? Of course not. But i highly recommend to start with these ones and go for others if the above fail to your needs.
Quite simple, isn't it? (I like to say this...)
Until next time, have a good time. Bye-Bye!
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