What is a payment switch?

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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

  1. 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.
  2. Manages 3D SecureMPIs -
  3. 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.