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Payment Gateway provider in Kochi

What Are Payment Gateways And How Do They Work?

You might have heard about Payment Gateways but sceptical on how it works? You have clicked on the right link!

This blog will outline what a payment gateway is and how it works effectively in a business!

We will start with what a payment gateway means (for those who don't know in technical terms)

A payment gateway authorizes payments for retailers in all business categorizations. They ensure that sensitive information, such as credit card numbers, entered into a virtual terminal or on an E-commerce website, are passed securely from the customer to the merchant and from the merchant to the payment processor through the use of encryption as per Wikipedia.

The Payment Gateway enables merchants, corporate and government entities to process outline transactions. It ensures that sensitive information of credit card numbers and the details are passed securely from the customer to the merchant and then to the payment processor through the use of encryption. Hence, the benefits of Payment Gateways are plenty such as secured and fast transactions, expanded customer base, easy report generation and much more!

Do you wanna know about Merchant Account? Here you go!

Every payment made with credit card involves the transfer of funds to the merchant's account. A merchant account is where funds are held before depositing into your bank account and it helps in enabling the merchants to process credit and debit card payments.

And what about a Payment Service Provider?

Payment Service Provider (PSP) facilitates and helps the merchants in accepting payments. There are various methods of payments such as direct debit, credit cards, Real-Time bank transfers using e-banking. PSP can connect to multiple acquiring banks and payment card networks as well.

Alright! We will now see how PG goes through this process.

As we discussed above, Payment Gateway performs a vital role in processing and authorizing the transactions between customers and merchants. Now, let's see how the Payment Gateway (PG) works


The customer chooses the product or service they need to purchase and then enters their credit card details onto your payment page. This information is then directed to your payment gateway and the customer enters the relevant credit card information by swiping the card and inserting it into a chip reader or manually inputting the account number directly into the payment gateway, linked terminal, or Point-of-sale.


The merchant securely transfers order information to the payment gateway. The service provider routes the data through a secure connection to the bank.


After the authentication process, the transaction is then authorized or declined by the issuing bank or the card based on the buyer’s available funds or credit. If approved, the transaction is routed back to the payment provider to be processed.


The settlement is the final step in the process of Payment Gateway. The bank settles the money with the payment gateway and then it settles the money to the merchant. Hence, the whole process is done there.

The steps involved in online payment processing have considerably reduced the long wait and hassle while purchasing commercial products and services. If you're looking for a digital gateway for your business, INFINTOR SOLUTIONS offers you innovative and fully integrated system!




Infintor recognised as one of the best software solution provider in Kochi, Qatar and UAE. Infintor specialises in custom software solutions, mobile application development, ERP solutions, website design, digital marketing services, branding and design activities, etc.

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