settlement to funding typically takes 3 days. Many payment gateways also provide tools to automatically screen orders for fraud and calculate tax in real time prior to the authorization request being sent to the processor. Tools to detect fraud include geolocation, velocity pattern analysis, OFAC list lookups, 'deny-list' lookups, delivery address verification, computer finger printing technology, identity morphing detection, and basic AVS checks. In easy words, a transaction processes with the following steps; 1: When the customer enters their card detail in the payment gateway, the payment gateway transfers it securely to the Merchant’s account. 2: Then a request is sent through your merchant account to the payment processor. 3: The payment processor then sends the request to the issuing(customer’s) bank. 4: If the transaction is approved the customer’s account is debited and the funds are transferred to Merchant’s(Acquiring) bank. This is how a transaction works in simple words. White label payment gateway Some payment gateways offer white label services, which allow payment service providers, e-commerce platforms, ISOs, resellers, or acquiring banks to fully brand the payment gateway’s technology as their own. This means PSPs or other third parties can own the end-to-end user experience without bringing payments operations—and additional risk management and compliance responsibility—in house, although the party offering the white labelled solution to its customers might still be responsible for some regulatory requirements such as Know your customer. Types There are five main types of payment gateways. Local bank integration gateways - this gateway will take the customer to the merchant's website, where they can enter and exchange all their payment and contact details. After the payment has been processed, the customer will be taken back to the merchant's site with a notification of the successful transaction. This is a basic solution with limited functionalities, and it does not usually enable reimbursements or recurring payments. Thus, while it can be quickly established and implemented, it is not appropriate for businesses that plan to expand and certainly not suitable for bulk purchasers. Hosted payment gateways - a hosted payment gateway operates by redirecting the customer from your checkout page. When the customer is ready to complete their purchase, they can click on a 'buy now' link which will take them to the host or payment service provider's page. Then the customer enters their payment information before being sent back to your business website to finish the transaction. This type