How payment gateways work
If you want to be able to accept credit card payments from buyers through eBay checkout, you'll need to have both an Internet merchant account
and a payment gateway account.
A payment gateway is a service that sends credit card transactions to the credit card payment networks for processing. When you accept credit cards through eBay checkout, eBay checkout will submit your transaction to your selected payment gateway for routing to the credit card payment networks.
Here's a step-by-step example of how it works:
A buyer purchases an eBay item and enters a credit card number in eBay checkout.
Details about the purchase are sent by eBay checkout to the payment gateway for processing.
The payment gateway forwards transaction information to seller's bank.
The seller's bank forwards transaction information to the bank that issued the buyer's credit card to authorize the transaction.
The bank that issued the buyer's credit card either approves or denies the transaction and sends that information back to the seller's bank.
If the transaction is approved, the bank will deposit funds on a merchant's account at a scheduled time.
The payment gateway sends transaction details and response back to eBay.
eBay lets the buyer know if the transaction was approved or denied.