How Payment Gateway Works Along With Examples, Let's Check It Out!

How Payment Gateway Works Along With Examples, Let's Check It Out!
How Payment Gateway Works Along With Examples, Let's Check It Out!

Payment Gateway is the English equivalent of the words payment, which means payment, and gateway, which means gate. When taken together, it means that the payment gateway is a technology that enables all businesses to accept money transfers from several locations and at any time through the use of the internet.

The idea of a payment gateway is therefore a method of payment for a transaction in an online commerce application service with the purpose of permitting various payment processes both directly from consumers and through banking, credit cards, and bank transfers. Then, how does the payment gateway operate? Take a look at the review now.

Let's Check Out How Payment Gateways Work With Examples First!

The way payment gateways operate is as follows:

Consumers Make Transactions

The first way a payment gateway operates is when online shoppers do some window shopping before deciding to purchase a product, which causes payment options to emerge, one of which is a payment gateway. Payment via a payment gateway may be one of the options or installed automatically based on when the customer will make payment.

Payment Gateway Information Forwarding to Payment Processor

Second, the way a payment gateway operates is by sending information to the payment process actor that the consumer has chosen at the very first step, which is known as the payment gateway source connection. For instance, when consumers choose payment methods through banks, the payment gateway will transmit information to the bank.

Publishers Received Information Further, the payment processor relays information about the payment gateway to the card issuing association, such as Visa or Mastercard. In addition to Visa or MasterCard, payment gateways can connect to banks that work with the specific payment gateway in question.

Specific Code Generation

Following that, the publisher's association will give the payment processor a response in the form of a unique code. This specific code is similar to OTP in nature, but it is only known to card issuers and payment gateway processors.

Financial Success

The payment gateway will change the status of the customer's payment to be paid off after the payment code has been received and confirmed. The information is then forwarded to the installer merchant by the payment gateway, and the buying and selling transaction is successfully carried out.

Payment Gateway Supporting System Address Verification System is an automatic billing verification system on the collector based on the data entered. It can be to a phone number, email, credit card, or other billing address.

Security Code, the system that facilitates transactions, may only be carried out through a registered billing address. A layered security system called 3D Secure Password is used to ensure that only the owner of the billing address can conduct transactions.

What Examples of Payment Gateways Are There?

If you're interested in offering a safe and convenient digital transaction experience, here are some examples of common payment gateways that business owners frequently use:


Doku is the earliest illustration of a payment gateway. Doku is an online payment service provider. Doku, an online payment service provider, offers a variety of different products in addition to payment gateway systems, including the following:

A service that helps business owners move money on a wide scale to several recipient accounts is known as a transfer service.

A digital wallet service is an e-wallet.

Qr Doku: A QR code at the store cashier that electronic money users can scan to make payments.


The following illustration of a payment method is MidTran. Similar to other payment gateway instances, Midtrans also provides a number of payment choices, including electronic money, credit or debit cards, electronic banking, and cash payments at stores or outposts.

By offering its services, Midtran ensures that any payment transactions that take place can do so safely. Mdtrаn uses top-notch anomaly detection technology to protect your transactions.

One of the most widely used payment methods, Midtrans is compatible with many different platforms, from Shopify to iOS. Up to this point, hundreds of retailers and other major corporations have used middle roads.


You need to be aware that Fasapay, which has only recently begun offering its services, is one of the most well-known providers of online payment services. Fappay has additionally worked as a system integrator for mobile banking systems. Up to this point, Faspay has assisted with online payment transactions for thousands of merchants across a variety of business types.

When offering its payment gateway service, Fasppay provides more than dozens of payment options, including online banking, mobile banking, e-money, credit or debit cards, and others.

To ensure the security of transactions, Fasppay guarantees transactions using credit cards that are renewed annually. Additionally, Faspay announced that they have an all-in-one solution for payment gateways. Some of the solutions Mera provides include:

  • can easily accept payment transfers.
  • creation of invoices online.
  • Transfer of money in real time.
  • Business loans that can total Rp 2 billion.


The following widely used payment gateway example is Finpay. Finpay began operating some years ago and is engaged in offering fintech services that can offer numerous solutions for numerous types of businesses, including banking, e-commerce, government, and others.

Like other payment gateways, Finpay also offers a variety of payment options, including credit cards, online debt, e-money, Virtual Account Bank, Finpay payment codes, and other methods. They offer this solution to improve the security and convenience of online transactions.

Finpay offers a Finpay dashboard so that consumers may monitor and track transactions that are taking place in real time. In addition, the Finpay mobile app also enables its users to make bill payments for things like electricity, BPJS credit, and other things.

Epay Espay offers a safe and practical online payment option. E-mail is also used in other nations. Therefore, you may want to think about employing this payment gateway solution from Epay if your company wants to reach a wider target market.

In the last few years, EPay has officially registered as a payment gateway organizing company and received approval from the official bank. Epay has also received certification as an electronic system organizer. Due of several important features it offers, Epay is used extensively. 

Some of them include:

Easy and quick integration process

If you use an electronic commerce platform, you won't need to worry about the convoluted integration procedure. You can activate your payment gateway using the EPay plug-in. The procedure is quick and safe.

Integration of B2C2B

EPay offers B2C2B payment solutions for businesses who need assistance receiving payments from customers and making payments to their business partners, such as suppliers or delivery services.

Settlement online and real-time systems from PayPal can automatically send hot-to-hot notifications to your e-commerce system.

Provide Automatic Reports You can get transaction reports to check the status of the relationship between PayPal and your e-commerce platform.

What are the advantages of payment gateway?

Payment methods have a significant impact on life. Every payment transaction is efficient. Not only that, but using a payment gateway also has a number of additional benefits, like the ones listed below:

Make Online Transactions Simpler First, one of the advantages of using a payment gateway is that it makes online transactions easier. With payment gateway technology, you don't need to see the seller in person or make payments off-line through the bank. Because the transaction process was carried out automatically online.

More Options for Payment

Another benefit of using a payment gateway is having more payment options. Because transactions are carried out online, the availability of payment facilities has grown and expanded. You can select the mode of transportation based on the payment options available to you without having to make a decision from scratch.

Faster completion of transactions

A key advantage of payment gateways is the speed at which transactions are executed. Because of the drawn-out delivery procedures, you don't need to wait a few days to purchase a goods. Your transaction process is completed immediately with the payment gateway since it is directly integrated into the site of good transactions and the suing association/bank.

Enhanced security

The main advantage of payment gateways is that security is more secure. The security of the payment gateway system is multifaceted, both in terms of the relationship with the recipient of funds and the location of the exchange of goods. Therefore, you won't need to worry about your money being taken through data leaks, skimming, or other means.

Unrestricted Transactions

Many people experience the benefit of having no transfer limits as a result of the existence of a payment gateway. Consumers are not constrained by transaction limits and are free to make as many payments transactions as they like at once.

Providing Exchange Rates Easily

For those of you who plan to travel abroad, the ability to easily switch service rates is a payment gateway benefit. You can use the exchange rate without standing in line. Only through online payment gateways can changing rates be satisfied. So, I hope you will find the article I may write on payment gateway useful. Thank you.

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