Merchant Processing Fees

Third Party secure payment gateway

Secure Payment Processing

Third Party Secure Payment Gateway:
In this model, the Third Party Secure Payment Gateway's server-computers have to provide a connection between the merchant's web site and  the Visa/MC (or Check) Merchant Processor. This is done via telephone (or leased land line). The Merchant Processor will receive the transaction through it's non-internet modem bank, and then send the transaction through it's direct connection to the Card Network (like Visa) for approval., The Merchant Processor  returns a response via land line to the Secure Payment Gateway, which encrypts the message and transmits it over the web back to the originating secure web site host. The Third Party Secure Payment Gateway is a different company than the Merchant Processor, and has it's own fees that are separate from any Merchant Processing fees.  Examples of these are Cybercash and Authorize.net.

-Rather than try and create their own Secure Web System, many Banks and Bank/Processor alliances will use a Secure Payment Gateway Provider to perform this task for them.

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