What is an Online Payment Gateway and How Does it Operate?
In today's world, online transactions have become an essential part of our lives. From shopping to paying bills, we prefer doing everything online for convenience and efficiency. To ensure secure and fast payment transactions, Payment gateways have been introduced. In this article, we will dive deep into understanding what online payment gateways are and how they work. What is a Payment Gateway? A Payment Gateway is software that authorizes and manages online payment transactions between a buyer and a seller. It is an online equivalent of a Point-of-Sale (POS) machine that you see in physical stores. Payment gateways enable secure, fast, and convenient payment processing for businesses and customers. How does a Payment Gateway work? A payment gateway works by encrypting sensitive payment information such as credit card details, bank account numbers, etc. entered by a customer on a website or mobile app. The encrypted information is then sent to the payment processor, which decrypt