What is a Payment Gateway, How to Build?

As E-commerce volume increases day by day, the demand for Payment Gateway systems also increases day by day. One of the most important elements of e-commerce is the Payment Gateway systems. Because if this system does not exist or does not work safely, it is not possible for e-commerce systems to survive. In this content, I wanted to prepare a guide on what is a payment gateway and how it works, especially for those who are new to e-commerce. Those who are already dealing with e-commerce are knowledgeable on this subject, but I think there is a need for a guide on how to build a payment gateway for those who are just starting out. You can find all the details about how payment gateway works in the rest of the content.

What is payment gateway?

Payment Gateway can be defined as a system that allows customers to pay securely using credit cards or other payment options on online sales sites. Payment Gateways are systems that provide security in the payment process and mediate all these services, starting with the approval of the order by the customer and ending with it. Platforms such as PayPal, Stripe, Square can be cited as examples of Payment Gateway systems.

How does payment gateway work?

Briefly, I would like to explain the answer to the question “how does a payment gateway work” step by step;

  • When the customer adds the product to the cart and reaches the “Checkout” stage, the payment gateway system is activated.
  • At this stage, the customer is asked to choose one of the payment options.
  • If the payment option by credit card is selected, credit card information is entered and the payment process continues.
  • Once the payment information is entered into the system by the customer, the Payment Gateway software securely encrypts this information and reports it to the financial institution.
  • The Financial Institution instantly checks the information reported by the payment gateway system and approves or rejects it if the information and the amount requested to be paid are appropriate.
  • The Financial Institution sends the payment result as successful or unsuccessful to the payment gateway software.
  • The payment gateway system reflects the successful or unsuccessful transaction result to the customer via a page.
  • Thus, the process is completed.

How to create a payment gateway?

Integrating the payment gateway system into the website can be a bit complicated. Many payment methods can generally be active in ready-made e-commerce software. All you have to do is activate it by entering your account information. However, the integration process for software other than ready-made E-commerce software is a bit complicated. If you do not have good software or code knowledge, you may have difficulty with integration. However, I would like to give you brief information about how to make a payment gateway. Below you can find the answer to the question “how to build payment gateway” step by step;1.

  1. First, choose a good Payment Gateway: When choosing a payment gateway, look at its reliability, commission rates, refund policy, and how long it takes to pay you. The best platforms I can recommend to you are: Stripe, Paypal and 2Checkout.
  2. Open an account and verify: Create an account by visiting the payment gateway website of your choice. Then verify this account. Create a payment gateway application for the website you want to receive service from. If approval is received after your application, you will receive an informative e-mail about payment policies, commission rates, etc.
  3. Review documentation and API: After receiving confirmation, log in by visiting the payment gateway’s web page again. Once you log in, review the API and Documentation. This section will contain step-by-step information on how to set up a payment gateway. You can perform integration using this information.
  4. Complete the integration:Complete the integration by following the instructions in the “how to create payment gateway” documentation on the payment gateway page. The connection between the payment gateway and your website is usually provided through an API. If you cannot set this correctly during the integration process, you may experience problems in the payment process. Therefore, if you think you cannot do it, I recommend you get professional help.
  5. Test Payment Gateway integration:After completing the integration process, test the payment system. Create a low amount order yourself and enter your information at all stages and proceed to the payment confirmation page. If you do not experience any problems at this stage, you are now ready.

How to integrate payment gateway in website?

I explained the step-by-step process under the heading “how to implement payment gateway” above. Integration may be a little more difficult, especially in systems other than ready-made E-commerce software, for example in systems with WordPress infrastructure. However, since most payment gateway platforms have plugins for platforms such as WordPress, you can complete the integration process by following the steps in the documentation.

How to build your own payment gateway?

To create your own payment gateway system, you need to have very good software knowledge. If you do not have such talent, I recommend you to use ready-made payment gateway systems. Because creating a payment gateway from scratch is a really difficult process.

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Hello. I'm Mehmet K. I am a SEO and Finance specialist. I share content that will guide those who want to make money on my website. If you want to earn money online, you are at the right place. Hope you have a good time :)

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