What is Payment Gateway - Definition, meaning and examples (2024)

FAQs

What is Payment Gateway - Definition, meaning and examples? ›

A payment gateway is a technology platform that acts as an intermediary in electronic financial transactions. It enables in-person and online businesses to accept, process, and manage various payment methods—such as credit cards, debit cards, and digital wallets—in a secure and efficient manner.

In physical stores, payment gateways consist of the point-of-sale (POS) terminals used to accept credit card information by card or by smartphone. In online stores, payment gateways are the “checkout” portals used to enter credit card information or credentials for services.

No, PayPal is not a traditional payment gateway, but it does offer a payment gateway solution (Payflow) as part of its overall payment processing solutions.

How payment gateways make money. In simple terms, a payment gateway earns income from each transaction by taking a percentage and/or fixed fee that is called Merchant Discount Rate (MDR). However, it is much more complex than that.

A payment gateway is a tool that securely validates your customer's credit card details, ensuring funds are available for you to get paid. Payment gateways are the services that authorise credit card payments for online and offline businesses.

Gateways can take several forms and perform a variety of tasks. Examples of this include: Web application firewalls- This type filters traffic to and from a web server and looks at application-layer data. Cloud storage gateways- This type translates storage requests with various cloud storage service API calls.

Regardless of its type, a digital wallet is a payment method. A payment gateway or payment processor, such as PagBrasil, on the other hand, works as a channel for the payment transaction between the buyer and the seller.

Merchants can quickly and easily integrate Amazon Pay as an additional express payment solution trusted by millions of Amazon customers. Amazon Pay is available on Adobe Commerce 2 (formerly Magento). Merchants on Adobe Commerce 2.4 can easily enable Pay right from their Adobe Commerce admin.

Can you create your own payment gateway? ›

Building a payment gateway requires considerable technical knowledge. You'll need a team of experienced developers who understand not only how to build software but also how to navigate the complexities of payment processing, such as dealing with multiple banking APIs and integration with various ecommerce platforms.

A payment gateway is a network that collects, verifies and performs fraud checks on customer's credit card information before sending it to the payment processor. A payment processor is a service that routes a customer's credit card information between the customer's bank and the merchant bank.

Acquirer processor — technologic partner of the acquiring bank, usually responsible for the payment gateway and POS processing.

After your customer clicks on the payment link, they are taken to your payment processor's page to enter their card details and make the payment, after which they are redirected to your website. An example of this type of payment gateway is PayPal.

Payment gateways not only enable online transactions but also improve overall business operations. By providing a more secure and efficient transaction process, enhancing customer experience, and facilitating global reach, payment gateways are an important component of digital commerce.

A payment gateway is an online service that allows businesses and individuals to accept payments from customers through their websites or mobile applications. It acts as an intermediary between a merchant and the financial institution processing the payment.

PayU is one of the top payment gateways in India, which supports 150+ modes of payment including UPI, net banking, debit and credit cards, and static and dynamic QR. The payment gateway allows businesses to accept payments in multiple currencies.

Google Pay enables effortless checkouts for your app and website. With the Google Pay API, your customers can use the cards saved to their Google Accounts for seamless checkout within your apps and sites.