1.

Initiation:

 The customer initiates a purchase on the merchant's website.

 The merchant's website sends a request to the payment gateway to start the transaction.

2. Request Transmission:

 The payment gateway receives the transaction request.

 The request typically includes the transaction amount, currency, and other relevant
details.

3. Encryption and Security:

 The payment gateway encrypts the sensitive information (e.g., credit card details) to
ensure secure transmission.
 Security protocols such as SSL/TLS are employed to protect the data during transmission.

4. Forwarding to Acquirer:

 The payment gateway forwards the encrypted transaction details to the acquiring bank
(acquirer).

5. Authorization Request:

 The acquiring bank sends an authorization request to the card network (e.g., Visa,
MasterCard).

6. Authorization Response:

 The card network validates the transaction details and checks the customer's account for
sufficient funds.
 An authorization response is sent back to the acquiring bank through the payment
gateway.

7. Authorization Status to Merchant:

 he payment gateway relays the authorization status (approved or declined) to the

merchant.

8. Transaction Approval:

 If approved, the merchant proceeds with fulfilling the order, and the payment gateway
communicates this information to the customer.

9. Capture and Settlement:

 The merchant, through the payment gateway, captures the authorized funds for
settlement.
 Settlement involves the actual transfer of funds from the customer's account to the
merchant's account.
10. Receipt and Confirmation:

 A payment confirmation or receipt is generated by the payment gateway and sent to

both the customer and the merchant.

11. Chargeback Handling:

 In case of disputes or chargebacks, the payment gateway may be involved in managing

the resolution process.

12. Reporting and Reconciliation:

 The payment gateway provides transaction reports to the merchant for reconciliation
and accounting purposes.