A Payment Switch can be thought of as a an independent entity that facilitates communication between different providers. The payment gateway talks directly with the switch to process payments.
The payment switch performs the following core functions
- Manages direct integrations into the payment providers - the payment switch understands the individual requirements of each payment provider (e.g APIs, file formats etc) that it supports and defines a common interface for communication with that provider. It also manages merchant's configurations with a particular provider.
- Manages 3D SecureMPIs -
- Facilitates processing of real payments between these providers - It accepts request for a payment, understands which providers it needs to process with, formats the message for that provider and sends it to them, gets response, changes the response to a generic format and send the response back to the caller.