How to create payment gateway for an online transaction?

Question

In my web application there is an online transaction system for online reservation. I have no idea about how to implement this, i.e when an end user wants to do reservation, a form has to open showing different banks, by selecting bank, user will be allowed to enter his/her card credentials and I have to send this to third party payment gateway vendor and has to receive information from that party regarding the transaction status.

How can we send and receive data from third party or is their is any way that we could eliminate the third party from transaction ?

Please help ! Thanks in advance.

Solution 1

Developing your own payment gateway is slightly complicated and comes with lots of compliance issues. So, assume for the time being this is not an option. Now, there are various payment gateways available in market you can choose the one which fits your requirements. The parameter of appropriate selection could be transaction currency, country, transaction fee, withdraw charges, fraud detection and mitigation system, charge back transaction charges, ease of integration etc. About integrating a gateway, there are two types of integration possible

• Form based
• API based

The need you mentioned fall under the category of API based gateway.

Form based gateway is the one which, in which user is redirected to the gateway provider site and there user enters credit card and other details, once payment confirmed gateway provider notifies back through various means like HTTP call back etc.

API based is the one in which you display your own form at your website. Gateway provider provides an integration API kit to make a call to the gateway. Capture all the details like cc details etc at your end and pass all the details to the gateway provider by calling the API integrated.

As far as efforts are concern, form based gateways are easier to integrate. I would suggest you to go ahead with form based gateways. This way you dont need to put much effort of programming.

If you are using Ruby, probably check http://www.activemerchant.org/

List of pre-integrated gateways available in active merchant: http://activemerchant.rubyforge.org/

Hope this would help!!!

Solution 2

The best solution is to select a payment gateway that supports your programming language / framework. The selection of your gateway will also depend greatly on your location and currency support requirements (as well as service fees). Typically data will be sent to the gateways in XML or JSON over SSL connections. Some sample gateways include BrainTree, PayPal or BeanStream. If you live in the United States I would recommend BrainTree because they offer a Java API (found here). Otherwise, just read through the documentation and the rest should be easy.