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Sunday, July 8, 2007

Payment Gateway Integration: Part I

Are you a PHP web developer?
Lookig for "How to integrate a payment gateway with your site?" Want to know about Payment Gateway?
Check it here...

Various web definitions for "Payment Gateway"

- Company that provides the transaction-processing network that receives encrypted transactions from a merchant’s website and sends them to the card issuing bank for approval.

- It allows the secure transfer of credit card funds from users on your website to your merchant account.

- A payment gateway can be thought of as a digital equivalent to a credit card processing terminal.

- An online system for real-time charging of credit cards when a customer places an order, which normally requires a merchant account.

- A software usually provided by a third party such as (Authorize.Net, PayPal, 2CheckOut) that allows a website to be integrated to a merchant account.

How "Payment Gateway" works...

var PG = Authorize.Net or PayPal or 2CheckOut

A Secure Sockets Layer (SSL) connection is established between merchant web storefront application and $PG's transaction servers to securely exchange payment data between parties.

1. A customer visits your Web site and makes a purchase.
2. The transaction data is then passed from your storefront to the $PG's transaction server.
3. $PG's transaction server collects the transaction information from your site and then securely routes the transaction via the payment gateway through the financial network to the appropriate bank, ensuring that customers are authorised to make their purchases.
4. The funds for the transaction will be transferred to merchant’s bank account.
5. The payment gateway sends an acknowledgement to customer with Transaction Status.

Who are involved...

(1) Merchants:
Want to sell their products via internet / want payment through internet.
Normally interested in trusted Payment Gateway provider.
Have knowledge about Payment Gateway

(2) Customers (Two types of Customer)
- Normal Customers
Want to buy products via Internet / want to make payment through Internet.

- Customers with basic awareness of secure transaction.
Want to buy products via Internet / want to make payment through Internet
But always verify that: transaction is secure (SSL, https://).
may / may not have knowledge about Payment Gateway

(3) Web Developers (Me & U all)
Want to integrate the web site with Payment Gateway.
Have knowledge about Payment Gateway

Well known Payment Gateway Providers...

Google Checkout

If you know about osCommerce, then you might know that "it is providing readymade payment gateway integration solution for shopping sites" as one of its best feature.

osCommerce is an Open Source based online shop e-commerce solution that is available for free under the GNU General Public License.

Click here to read more about osCommerce supported payment gateways

To be continued... [Integration code in PHP]