If you sell high risk goods or services on the internet you probably have had the need for a high risk payment gateway, but do you really know what a high risk payment gateway does?
A high risk payment gateway is simply the technology utilized to connect your e-commerce platform to your high risk payment processor in order to process credit and debit card along with e-checks. There are several steps involved with how a payment gateway processes payments, but even though there are a lot of steps, it only takes a few seconds (about 2-3) for the transaction to be sent back to your e-commerce platform as being approved or declined.
Here is how a high- risk payment gateway works:
1. A customer goes to a merchant’s online store and submits an order with their credit card
2. The customer’s credit card information is entered in the payment gateway.
3. The payment gateway contacts the customer’s credit card issuing back to ensure there are not holds on their credit card and they have enough available credit to support the requested payment.
4. The credit card issuing bank either approves or declines the credit card transaction
5. The response from your customers credit card issuing bank is sent back to the merchants website and is recorded so the merchant knows whether or not it is good to move forward with either shipping the products or providing the services your customer just purchased.
If the merchants payment gateway is not already set up to either settle or batch the transactions for the day automatically or settle in real time – all transactions at the end of the day need to be settled / batched out and sent to the merchant’s high risk credit card processor for payment. Please note if the transactions are not batched or settled to the merchant’s credit card processor a payout request will not be received and the transactions will remain in the gateway until they have been has batched out or settled to the merchants processor for payment.