The payment gateway transmits the information to the server of concerned bank.
Acquiring bank of the merchant passes the information to the bank of the customer.
The card issuing bank of the customer sends response to payment gateway detailing whether the transactions is approved or declined.
In case the transaction is declined, the reason for the same is conveyed by the issuing bank to the customer and merchant. Payment gateway forwards the response to the merchant’s server.
Merchant’s server encrypts the information and relays it to the customer to let him know the status of his order. The entire process takes just a few seconds.
Finally, the card issuing bank of the customer deposits the amount in the acquiring bank account of the merchant at the end of the day.