What is a Payment Gateway ApI?

Thanks to encryption, the gateway can more easily transmit sensitive confidential information such as credit card numbers for fast and secure banking transactions between the portal (seller) and the receiving bank (customer). As they are faster and more accessible e-commerce electronic payment systems, easily accessible e-commerce electronic payment systems.

All of this is done through the API, an application programming interface. It allows two software applications to communicate without their knowledge due to a set of rules.

A payment gateway is an electronic payment system provided by an e-commerce application service provider. Through these, payments and transfers between banks and businesses can be securely authorized, whether traditional, electronic, physical or online.

Payment gateways keep the payments ecosystem running smoothly thanks to the technology that transmits data from sellers to customers, enabling online payments for consumers and businesses.

How does the ApI payment gateway work?

The payment gateway performs a series of tasks to process the transaction. When a customer places an order on the website, the customer's web browser encrypts information to the sales web server. Data is secured using the Condom Connection Word Layer (SSL) or Transport Layer.

The seller forwards the transaction details to its e-commerce payment solution, where the seller's account details can be found. This connection is encrypted using SSL.

In this way, the payment gateway ApI receives the transaction information and forwards the information to the seller's bank, and sends the transaction information to the issuer of the customer's credit card. This is simple because the bank uses a code to send a response to the best payment gateway for ecommerce. This code is used to include transaction failure information such as insufficient funds, in addition to approving or denying payment destinations.

Some payment gateways are just a way to load cards. Charge sellers 1.4% to 3.5%, no monthly fee. However, if you have a merchant account, the processing fee will be reduced to a transaction fee, usually between 0.10% and 20% of each transaction, including monthly fees.

A simple payment gateway will be the most efficient option in the short term, as monthly fees reduce turnover more than processing fees. However, once sales reach a critical threshold, it is more economical to pay monthly transaction fees with transaction fees.

You'll see several of the best payment gateways offer both options or have other strengths in this area. This can be anything from reducing the processing cost of some cards to integrating directly into accounting software.