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Blockchain payment API, how to handle the callback

I am trying to understand the Blockchain.info Payment API . I am a very beginner to PHP.

I want to know how to handle the callback.

The Documentation tells me to provide a $callback_url: "The callback URL to be notified when a payment is received."

But i just do not understand how this callback_url have to look like. And what should the PHP code behind it do, to actually receive the information about the incoming payment.

My guess so far:

Blockchain.info checks the generated address for incoming payments. As soon as a new payment appears, the callback_url is notified. That means that a "GET" Request is forwarded to the URL? Now if i want to handle that data, i have to set up a database. The data (like confirmations, Payment ammount, and so on) will then be written right into my database? All i have to do then, is to check my database for a new entry?

Please correct me and help me to understand how to handle this callback. Thank You

It can be any http:// or https:// link that accepts get requests. So just create a callback.php file, and set the callback url to something like http://domain.com/callback.php and accept and validate all of the params sent.

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