This is another (SSL) encrypted connection to the payment server hosted by the payment gateway.
The merchant then forwards the transaction details to their payment gateway.
The payment gateway may allow transaction data to be sent directly from the customer’s browser to the gateway, bypassing the merchant’s systems. In between other methods, this may be done via SSL(Secure Socket Layer) encryption.
If the order is via a website, the customer’s web browser encrypts the information to be sent between the browser and the merchant’s web server.
A customer places order on website by pressing the ‘ Submit Order‘ or equivalent button, or perhaps enters their card details using an automatic phone answering service.
The payment gateway may be provided by a bank to its customers, but can be provided by a specialized financial service provider as a separate service, such as a Payment service provider. Payment gateways encrypt sensitive information, such as credit card numbers, to ensure that information passes securely between the customer and the merchant. A payment gateway facilitates a payment transaction by the transfer of information between a payment portal and the front end processor or acquiring bank. Payment Gateway is a merchant service provided by an e-commerce application service provider that authorizes credit cards or direct payments for e-business, online retailers, bricks and clicks and traditional brick and mortar business.