The card payment gateway is to validate your customer’s credit card details securely, make sure the funds are available for the payment and get you paid.

A payment gateway is the service that authorizes credit card payments for online and offline businesses. It is the equivalent of a physical point of sale terminal in a shop or restaurant. It lets your customer submit their credit card details and then securely passes this sensitive financial information from the customer to the merchant and then between the merchant and the bank.

How Does a Credit Card Payment Work?

Credit Cards contain several informational and security features: usually, on their front, is a 16-digit embossed card number, an expiration date, and a hologram.

On the reverse side is a magnetic stripe, signature panel, and 3-digit Card Verification Value (CVV). Some payment systems use non-standard alternatives such as key fobs and miniature cards.

Credit cards are linked to lines of credit, so their use signifies an obligation to pay the credit issuer, as opposed to a direct withdrawal from existing funds.

The credit card holder is usually required to pay an interest on outstanding credit that is not paid back within a month.