Payment Gateway

Merchants operating offshore businesses based on the internet will need to utilize an online service that is automated and allow for the processing of online payment transactions 24 hours a day. Generally, once these businesses have contracted with a merchant services provider, they will have to integrate a high risk payment gateway into their website to start accepting transactions.

A payment gateway is the internet software application that connects the merchant's website to the acquiring bank (merchant's bank) through the high risk merchant account using a sequence of security protocols.  Once connected to the acquiring bank, the merchant is able to send customer credit card account information through for authorization and settlement requests.

As is with all forms of payment transactions, security is a one of the most important parts of the payment services industry.  The organization that provides both the criteria for payment security and administers the testing is the Payment Card Industry (PCI); providing security standards for both retail swipe transactions and online ecommerce transactions sent through payment gateways.  Regardless of where the merchant or the bank is located, these standards are applied to all merchants accepting payments from the major card brands, whether its a domestic or a high risk credit card processing merchant.

Once a high risk payment gateway is integrated into the shopping cart on the merchant's website, a transaction travels through a number of points before becoming an approved transaction.  Once cardholder information is entered into the merchant's shopping cart, the information is encrypted in the gateway and sent through the payment processor to the merchant's bank.  Prior to arrival at the merchant's bank, the cardholder information is deciphered by the payment gateway and provided to the bank for authorization and payment settlement from the customer's bank.

A high risk payment gateway can provide a variety of features for merchants running a variety of online businesses:

  • Online High Risk Credit Card Acceptance
  • High Risk Recurring Billing Services
  • Secure High Risk Online Transactions

Providing a means for merchants to accept online credit card account information for authorization is a necessity for online businesses.  Merchants need to be able to capture, transmit and retain card information for not only the immediate purchase, but many times for future transactions.

Once a customer has registered and become a customer of the merchant, it is vital for the merchant to be able to effortlessly rebill the customer until the customer decides to terminate the program.  Most high risk payment gateway services will have the ability to establish high risk payment processing rebills to eliminate the need of manual monthly billing from the merchant.

One of the most, if not the most important function of the payment gateway is to provide a secure environment for transactions.  Without a secure place to transfer transactions, the merchant opens themselves up to the possibility of fraud and data breaches that can end up costing the merchant with significant fines and fees from the banks and card associations.

Working with a high risk payment gateway that provides not only a reliable service, but provides functions and the security needed to run an offshore business is vital to the success of a business.  For any questions or concerns regarding the payment gateway provided through Island Payments, please contact one of our representatives.