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IVR in Payment Gateways

What is Payment gateway ?

Payment Gateway is an application service provider which can authorise payments for any purchase made by a person using either credit card, internet banking in a website. It is just like POS ( Point of Sale) for either website or any other monetary transaction in a secured way. Main function of a payment gateway is to collect credit/debit card information and process the transaction and provide back the result to the website.

Payment gateway has contributed a lot in growth of e-commerce by facilitating secured mode of credit card transaction online using various secured methods as Software As A Service model. Its working principle is quite straight forward. A payment gateway service provider is an authorised centre for making transaction for credit card companies like VISA, Mastercard, Online Bank transaction etc. When some one purchases any goods on internet in any website, payment gateway acquires credit card or banking details secured way, authorise the payment and return control to the website as per transaction result.

How IVR is being used in payment gateway ?
Recently, IVR ( Interactive Voice Response) System is also being used for making payments using phone as providing credit/debit card information using DTMF is easy and can be done on the move without any computer and internet connection.

In most of the IVR payment gateway systems, the banking or credit card details are stored by payment gateway company in a secured way and the transaction is completed with a simple 5-digit or 6 digit numeric password commonly known as PIN( Personal Identification Number). Keeping credit/debit card stored in the payment gateway makes the payment process much quicker as the user does not need to enter card details again and again for each transaction.

When credit/debit card details are not stored, then the details has to be entered using DTMF while processing the transaction. Entering 16 digit card number along with expiry date and CVV may be tedious for frequent users, but many people feel secured that way.

In most IVR payment gateways use outbound dialer to process the transaction. As soon as a person makes a purchase, IVR will make an outbound call to the registered phone number ( first level of security), announces the purchase details and asks him to confirm the purchase by pressing a key. When a purchase is confirmed, the user is asked to enter the numeric password ( PIN ) and on correct PIN, the transaction is completed by charging the credit/debit card.

Advantages of using IVR
There are few advantages of using IVR payment gateways. It is supposed to be more secure as ‘phone tapping’ is not as prevalent as online frauds!

Using IVR payment gateway, one does not need a PC and internet connection to make any purchase or making payment. One just needs a mobile phone or telephone number. Since mobile phone or telephone number already is considered proven identity, it may serve the first level of security.

In developing countries like India, where internet and PC penetration is low, IVR payment gateway can help grow e-commerce as owning phone is cheaper than owning a PC and internet connection. Also, internet connection may not be available all places all the time. So, people can use their mobile or land line phones to make payments using IVR payment gateways.

Drawbacks of IVR for payment gateways
Providing credit card details may be a tedious process for first time users. Also, apart from numeric PIN, it does not provide any other security. PINs are transmitted using DTMF which can be easily decoded.

With explosives growth of mobile phones, IVR payment gateway is logical extension for making phones more useful.

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{ 37 comments… add one }
  • Rich Anderson May 3, 2010, 11:53 pm

    IVR’s one of the best solutions is Payment gateways. Including that there are a lot of features are available. Lets have a look at our product INVOX (http://www.invox.com) which was built based on IVR was is as follows.

    Now a days its not simple to handle Business needs. Lot of Advanced features came into market or by research by companies to made new phone systems which are fully AUTOMATED. like INVOX (http://www.invox.com) which an US-Pacific Award winning simple DRAG & DROP GUI based phone system designer without need of a single line of code, which takes hardly 5-10 mins to build any kind of phone system.
    With the help of Skype/local number/mobile number you can test your built-in system freely with the help of FREE SIGN-UP available now. I assure you that you can reduce your costs on phone bills at the same time can have lot of automated features like CRM, VIRTUAL CALL CENTER, OUTBOUND, GEOGRAPHICAL ROUTING and many more at a single platform with low cost.

    Look at once at our 60 man year product. Hope you really appreciate it. Thank you.

  • Uttam Pegu May 7, 2010, 2:57 pm

    Hi Rich,
    Yes, Invox is really a one of the most suitable product for developing and deploying IVR payment gateway.

  • Murthy May 9, 2010, 10:06 am

    Ozonetel Systems has launched PCi-DSS based Hosted IVRS and processing transactions for travel agents, service stations, telecom firms and financial firms.

    Lets us know how we can help your clients.
    You can reach me at 988 088 5108.


  • Daisy Morant August 2, 2010, 5:45 am

    What are the payment gateways and how many types of payment gateways are available?

  • ACH August 27, 2010, 11:09 am


    A payment processing gateway is ecommerce software which enables merchants to accept payments online. My blog “National ACH” is a payment processing blog provide several payment processing gateways :
    # ACH Processing
    # Electronic Checks
    # International Processing
    # International Direct Deposit and more
    for details you can visit


    thanks 🙂

  • Secure payment gateway August 27, 2010, 11:14 am

    Payment gateways securely connect websites to financial networks through which credit card and other types of electronic payment transactions are sent, received, authorized, and settled. My blog “Paynet secure.net” provide different payment gateways:
    # International Payments
    # Mobile Payment Processing
    # Electronic Checks and more.
    for details visit


  • ovais alam March 10, 2016, 8:33 pm

    we need an ivr payment gateway for our usa office, please provide best quotation and your requirement check list from us. waiting for your earlier response.

  • BISWAJIT PAUL December 10, 2016, 9:53 am

    We require your service
    Kindly connect us here
    info@quickoboook.com or 08876724549

  • Duyane March 2, 2017, 7:53 pm

    i need an ivr gateway to my NGO. Can someone get in touch with me.

    • Duyane March 2, 2017, 7:54 pm

      i need a gateway having the facilities of an IVR.

  • mohit June 15, 2017, 7:08 am

    required ivr payment getaway

  • Epay Global July 16, 2021, 6:52 am

    IVR in payment gateway is not beneficial as exposes to the utmost security threat.
    Due to the network issues there can be leak the OTP .

  • Epay Global July 31, 2021, 5:01 am

    Amazingly covered the new innovative tech feature of a payment gateway. It is astounding to note how mobiles can complete payments today. What used to be a long-end procedure is now a single tap away from completion.
    Encryption can indeed be easily decoded but it is also true that the near future holds a gigantic space for such tech. That means frauds and scams will soon be redundant with the new innovative discoveries.

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