When it comes to payments, what are payment gateways talking about?

The answers here explain the concept of a gateway and use the example of a payment block design for a business system.1. Definition of payment gatewayWhen it co...

Feb 28,2022 | SANDRA

The answers here explain the concept of a gateway and use the example of a payment block design for a business system.

1. Definition of payment gateway

When it comes to payment gateways, you first need to understand the definition of a gateway. The role of the gateway is to realize the communication connection between networks, including two basic functions: inter-network link and protocol conversion.subscription payment gateway, In the same way, the payment section in the merchant business system realizes the connection between the merchant business system and the bank payment system. It plays a similar role and can be regarded as a gateway. Therefore, the design of the payment gateway that we want to talk about today in China is actually the teaching design of the payment section of the merchant business information system.

2. The origin of payment gateway

When electronic payment is not yet popular, merchants support a bank by connecting with a system interface provided by the bank. Then, as the payment industry continues to grow, merchants are no longer satisfied with supporting just one or two banks in the payment chain. At this time, the merchant's payment system needs to connect with multiple banks at the same time, and deal with many derivative problems caused by this, such as reconciliation and settlement. Moreover, the human resource cost and time management cost required to develop such a system are also unwilling to accept by merchants.

At this time, third-party payment institutions were born, and they began to develop and operate a system instead of merchants to realize the function of connecting multiple banking systems at the same time, and then provide it to merchants through a unified interface. So this stage of the third-party payment system is the payment gateway.

In addition to realizing the link between the merchant business system and the banking system, the basic functions of the payment gateway also include many other basic functions related to the payment business, including: order management, channel management, risk control management, routing configuration, account management, clearing management, Merchant management and user management, etc.

With the further development of online payment, there are more and more third-party payment institutions. At this time, the problem that merchants need to solve is no longer how to access multiple banks, but how to access multiple payment institutions. At this time, the merchant's demand for the payment system has also changed, and the position of the gateway is further advanced, which puts forward higher requirements for the merchant's payment system.