iSmart Software | - How does an online payment gateway work?

How does an online payment gateway work?
	1) The consumer completes their registration via the iRegister Booking Form. This is done on a secure web page so the consumer's personal information including banking information (credit card) is encrypted so that it can't be intercepted and read by a third party.

	2) iRegister software on the web gathers the registration request, compiling it into a form that the credit card processing company expects. [GoPay, SafePay, PayPal]

	3) iRegister transmits the formatted order from the web page to the credit card processor (payment gateway). The credit card processor checks the information it received about the order to ensure it has all the information it needs to continue processing the transaction. It then determines which company manages the consumer's credit card and transmits a request for the card to be charged.

	4) The consumer's credit card company validates the card and the account. If everything checks out correctly and the credit card is clear for purchases, the credit card company sends an acknowledgement back to the card processor that the amount requested can be transferred. If the credit card company denies the charge it sends a code back to the credit card processor indicating what the problem was.

	5) The credit card processor (payment gateway) now tells iRegister whether or not the transaction was successful (iRegister will then tell the consumer whether or not the order was complete and send the registration on to the organisation running the course or event). The credit card processor (payment gateway) initiates a funds transfer to the organisation running the course or event for deposit into their bank account.

	6) The organisation running the event or course collects the funds and makes a scheduled transfer to their regular bank account.

	Merchant = [organisation who is using iSmart to have their events/courses, service or product booked online] Internet Merchant Accounts are separate bank accounts for the merchant that are approved and capable of receiving credit card payments from credit card providers. Internet merchant accounts typically do not hold funds for an extended period of time such as your typical bank account but usually transfer payments to another bank account designated by the internet merchant on a daily basis. The *Payment Gateway Account* is the online credit card processor or transaction handler which is capable of hooking into credit card accounts belonging to the online shopper and the merchant's internet merchant account (above). The payment gateway handles the verification and transfer requests. The term account when used with "payment gateway" is not a funds holding account but rather a "service account" that typically has a log in where you can configure your payment gateway settings.