How a Payment Gateway Works
As a secure payment processor offering secure credit card payment processing services in South Africa, PayGate connects your website or call centre directly to your internet merchant account at your bank. Therefore you as the merchant can accept credit card payments without having to connect to the bank yourself.
PayGate is integrated directly to the major South African banks as well as acquirers in other territories. When a transaction is processed via PayGate’s systems, the transaction data is sent to an internet merchant account at the relevant bank for authorization. This transaction data is sent over a secure link to the internet merchant account at the relevant bank ensuring that the data can not be intercepted before the bank receives it.
After this, the bank authorizes the transaction by connecting to the credit card issuing bank via the MasterCard and Visa networks. If there are funds available on the credit card these funds are reserved by the acquiring bank. Once this has happened the issuing bank sends a status update to the acquiring bank, which then sends it to PayGate. We map this bank status to a code on our gateway. This process takes seconds and in most cases is almost instantaneous.
In order to take the funds from the cardholder’s credit card and deposit it into your internet merchant account, your bank (the acquiring bank) needs to receive a settlement instruction from PayGate. Our system generates these settlement instructions automatically for every successful authorization. The settlement instructions for a 24 hour period are then sent to the acquiring bank in a batch that our system generates every evening. Once the acquiring bank has received this batch it takes approximately 1 – 2 working days for you to receive your money.
PayGate offers secure, reliable and cost effective credit card payment processing services including virtual point of sale services as well as online credit card payment systems. Our systems are designed for ease of use and integration and to allow you the merchant to receive credit card payments quickly and easily.
Date Created: 2009-09-23 | Last Update : 2009-09-23 |
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