| By :
Patricia Strasser
Utilizing the services of a payment gateway such as the Authorize.Net, provides several advantages both on the client and the merchant. To make online transaction hassle-free and secured, using the services of a payment gateway is highly recommended. Learn more about the leading service provider and its advantages through this brief overview. Definition Authorize.Net is a merchant service provider that facilitates processing of credit card related transactions. It serves as a payment gateway that acts a middle man between the clients and the merchants to guarantee a secured business operation. It involves an elaborated task to make certain that the clients are well protected. Company's background According to Wikipedia, it is known as the largest payment gateway online provider for having more than 212,000 existing merchants. The company was originally owned by Lightbridge, but was later sold to Cybersource in November 2007 for a price of $565 million. Their being one of the top service providers is due to their excellent services integrated into their processes namely the Simple Integration Method (SIM) and the Advanced Integrated Method (AIM). The former is the most preferred method by small-time businesses because it is simpler to use. For the second method, transaction is directly carried out within the website, which is almost imperceptible on the part of the clients. Large companies opt for this kind of service because it is professionally presentable. Transaction flow As a payment gateway, it employs several related tasks to facilitate the transmission of necessary information from the gateway to the bank. To safeguard the welfare of the customer, pertinent details are encrypted before it can be transmitted through the following steps: * Order is placed online * Encrypted transactions are forwarded to the payment gateway, which is also forwarded to the service processor * Information are forwarded to the card association connected with the acquiring bank by the bank processor * Card processor such as VISA or MasterCard communicates with the issuing bank * A response is sent to the processor by the issuing bank, either approved or decline * Response is forwarded by the processor to the payment portal * A reply is sent back to the merchant by the payment gateway through the website Advantages The use of a payment gateway has numerous known advantages on both the client and the merchant. With their encryption tools, client's funds are safe from online hackers since payment gateway also uses a fraud detector to screen out unreliable orders. It can also do automatic tax calculation prior to request transfer. Availing the services of a payment gateway offers not only convenience, but also security for all transactions. Therefore, when choosing a service provider, check further how it exceeds other service providers in relation to the benefits it can offer.
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