In order to learn what an internet payment gateway is, and how it works, you must first understand how a credit card machine works. At retail (face to face) business locations a customer will hand their credit card to the cashier for payment. The first thing the cashier does is enter the dollar amount of the sale, and then they will take the credit card and swipe it through a credit card machine.
The machine then transmits the data from the credit card to the “processing network”. The processing network returns either a “declined” or “approved” response. If approved, the transaction will get batched out by the terminal at the end of the day with the rest of the day’s transactions. Typically a couple days later the money from that sale is deposited into the Continue reading
