How do I Create a Payment Gateway API?

payment gateway API

We live in an omnichannel customer experience era, and developers play a critical role. They ensure that all data is processed correctly, from when a customer looks at a product to entering their credit card number on a checkout page.

In addition, to make it all work, developers require an essential piece of the puzzle: a payment gateway API that allows them to expand the capabilities of their software and tools. If there’s a bonus, payment API flexibility opens up a treasure chest of possibilities for integrating applications. In this blog, we’ll define API, payment API, and payment API flexibility, as well as things developers should look for when creating an API.

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    What is API and Payment API?


    API, which stands for Application Programming Interface, is a set of programmatic instructions that allows one program to communicate with another. In other words, an API authorizes and integrates two applications so that they can communicate with one another to provide a unified digital experience.

    A payment API is an API (application programming interface) that allows eCommerce businesses to manage payments in real time. Payment APIs can improve the payment process for companies and consumers by making transactions faster and more secure.

    What is payment API flexibility?

    The payment API flexibility concept revolves around security, convenience, and flexibility offered to the merchant provider and customer. 

    Still, about a holistic approach to payment APIs — if you can look at and find all possible features in a payment gateway API while keeping in mind the importance of a flexible payment system, you’ll pick the one that caters to all your requirements.

    Also Read :- Difference Between the 2D and 3D Payment Gateway

    Features to Look for a Flexible and Convenient Payment Gateway API

    • Clear documentation and procedure for secured payments
    • Enhanced navigational user experience and an updated design
    • Robust security 
    • Integration with multiple payment gateways

    We will elaborate on and define the functionalities mentioned above and features in the following sections of the blog. Let us dive into the topic to garner valuable insights on developing a flexible API payment gateway.

    Things a Developer should Look at While Creating a Payment Gateway API

    We will list the steps to develop a flexible payment gateway API:

    1. Set up infrastructure: It is one of the first initial steps to set up and develop a flexible payment gateway API. Infrastructure and design play a major role in determining effective results. 

    2. Clear and appropriate documentation: Effective documentation and authorization help to play safe and ensure the delivery of satisfactory results to the users. 

    3. Updated design and enhanced user experience: API has been around for many years; however, API interface is evolving, and new standards are emerging. A well-designed API interface must address the developer’s professional vision and the customer’s needs. With that said, it should provide basic technical functionality while employing modern design practices such as usability and accessibility, which all contribute to the user experience.

    4. Robust security: Security should be a significant concern in transactions involving credit cards or other financial account information. Determine what PCI scope you will fall under if you use a specific API. 

    5. The richness of functionality and seamless security: Any API payment gateway must include features such as error handling, data validation, and various authentication processes. Developers of payment APIs should consider tokenization in the transaction process and advanced payment features such as system options to recharge or refund customers or automate recurring payments.

    6. Integration with multiple payment methods: There are several scenarios in which you may require a payment gateway API that can connect to more than one gateway; in fact, this is becoming more common nowadays, so as a developer, you should keep this option in mind. The payment gateway API should be able to process each transaction independently and directly with the specific provider.

    7. Safety and monitoring: Security necessitates your undivided attention and time. Begin by becoming familiar with AML and KYC requirements and local laws. Make sure you adhere to global guidelines, such as the well-known standard PCI DSS. This stage is responsible for monitoring the health and condition of the infrastructure and ensuring that all system elements are operational at all times. It is critical to ensure that the system can handle the load when the number of actions exceeds expectations.

    Benefits of a Payment Gateway API

    • Customer data remains safe and secure: The system protects the customer’s data and avoids security breaches.
    • Your business will offer various options: The payment gateway API will enable you to integrate with several flexible payment methods, including all credit cards, alternative payment options, and international currencies.
    • Your business will have real-time purchasing information:  Beyond simple payment information, a well-developed payment gateway API provides a wealth of data. Real-time data feeds can be used immediately to help you understand and act on buyer behaviors. In a nutshell, it will help you gain a competitive edge over others.
    • Enhanced customer interaction: A robust payment gateway API will ensure continuous customer interaction for a seamless payment and user experience.

    Tips for Building a Payment Gateway

    • Make your payment gateway flexible and adaptive: A sophisticated payment gateway can quickly adapt to the merchant’s needs. As a result, make sure to include options for easy customization.
    • Provide customer support: Ensure to hire of professionals who can offer good navigational and user experience. Implement a dispute resolution interface with enhanced security. 

    Top Payment Gateway API Every Developer must know NTT DATA Payment Services

    With its extensive payment services, NTT DATA Payments offers end-to-end payment acceptance services via both online and offline channels. Integrate our smooth and seamless payment gateway to grow your business. We accept payments anytime and from any location using UPI, payment links, debit and credit cards, and various other payment methods!

    Bottom Line

    We hope the above-listed points gave you significant insights into payment gateway API. You can follow them, ensuring a seamless payment experience for users. 

    NTT DATA Payment Services is the one-stop solution for all your requirements. You can contact our experts and integrate with the safest payment gateways for state-of-the-art payment solutions.

    Also, you can get frequent updates on nttdatapayments Instagram page.


    1. How does API work in a payment gateway? 

    An application typically sends a message/request to the API, which relays it to the payment processing network, processes the request, responds to the API, and then forwards the response to the application.

    2. What is required for payment integration? 

    Several steps are involved in developing a custom payment gateway: 

    • Registration of payment gateway providers. 
    • Setting up infrastructure
    • Register with a credit card company (or several) through your acquiring bank as a payment gateway provider.

    3. How do I protect API gateways?

    There are several ways to protect the API gateways. It includes getting the required certifications: SSL certificate, with proper authentication and authorization of the security systems.

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