Payment Gateway Apps Solutions

Payment Gateway Apps Solutions

A payment gateway works as a middleman between your application (e-commerce website, mobile app) and the payment processor or bank. It securely processes payment information and ensures money is transferred from the customer to your business. Here’s how it works:

Step-by-Step Workflow of a Payment Gateway
1. Customer Initiates Payment
  • Enters card details or selects a payment method (e-wallet, bank transfer, QR code).
  • This happens via a web checkout form, mobile SDK, or point-of-sale system.
2. Data is Encrypted
  • The payment data (e.g. card number, CVV, expiration) is securely encrypted using TLS/SSL.
  • The gateway ensures PCI-DSS compliance for security.
3. Payment Gateway Sends to Processor
  • The encrypted data is forwarded to the payment processor (e.g. Visa, Mastercard, or a bank).
  • For e-wallets or local payments, it routes via API to GoPay, OVO, Dana, etc
4. Authorization Request
  • The processor or card network requests authorization from the issuing bank (customers bank).
  • The bank checks:
    • Is the card valid?
    • Is there enough balance or credit limit?
    • Is the transaction suspicious?
5. Authorization Response
  • The issuing bank replies with:
    • Approved
    • Declined
  • The response goes back to the gateway and then your system (frontend/backend).
6. Transaction Completed or Failed
  • If approved, the system confirms the payment to the user
  • The transaction is recorded, and the money is reserved.
7. Settlement
  • The gateway batches the approved transactions and sends them for settlement (usually once per day).
  • Funds are transferred to your merchant account or business bank account, usually in 1–3 business days.
 What Developers Actually Implement
When you use a payment gateway like Stripe, Midtrans, or Xendit, you typically:
  1. Integrate their API or SDK:
    • For frontend checkout: JavaScript, iOS, Android SDKs.
    • For backend: RESTful APIs (Node.js, PHP, Go, etc.)
  2. Handle Webhooks:
    - Payment status updates (e.g., payment_success, payment_failed) are sent to your server.
  3. Store only tokens (never raw card data):
    • Use tokenization to stay PCI compliant.
    • Example: Stripe returns a payment_intent_id you can reuse

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