Payment Gateway

By Zaheer Shaikh
A Payment gateway is a technology allow merchant to accept cards payment from customer for their purchase. 
Any business accepting electronic payment using cards need payment gateway to process the transactions. In simpler word a payment gateway is a network through customer can transfer funds from their account to merchant account. 

How Payments Gateway works

Let assume customer having A bank credit card,

  1. When customer swipe or insert card on POS machine, the transaction reach to bank B
  2. Using IIN it decided which payment scheme provided the card (like if card start with 4 it provided by visa) and transaction rout to the corresponding payment system
  3. Using Issuer BIN payment system decided which bank issued the card
What is BIN?
  • The abbreviation of BIN is bank identification number
  • A bank identification number(bin) is the first six numbers that appear on credit card

Example
                                    
                                                            Here 536612 is Bin


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