Payment Gateway Vs Payment Processor

The payment processor receives all the payment information card details transmitted by the payment gateway and passes this information on to the merchant bank.

Payment gateway vs payment processor.

The payment gateway securely authorizes payments for payment accepting websites. The most common use of an ecommerce payment gateway is to accept payments for goods and services purchased online. The most common use of a gateway is to accept payments for goods and services online. The important aspect to payment gateways and processors is secure.

A payment processor or acquirer is a financial institution providing the payment processing services used by online merchants. Think of it as an online point of sale terminal for your business. Which do i need. What s a payment processor.

The gateway should be developed by in house software developers and store customer card information off site to ensure pci compliance for small business. In addition to basic transactions a gateway can be used to integrate payments with crm software or process transactions on a mobile device. When the card number is entered the payment gateway then connects with the payment processor to get the transaction done. Visa mastercard discover etc and ensures that all of the money ends up in the proper place.

If you are reading this article then probably you have already read multiple articles about the differences between payment gateway merchant account and payment processor. A payment processor enters into a reselling agreement with a payment gateway or a merchant account provider so to offer their. Choosing between payment gateway vs payment processor while the payment gateway offers a simple incorporation to merchant applications it comes as an extra expense to the merchant. The payment is sent securely to the payment processor via a payment gateway.

The gateway will either approve or deny the transaction. When looking for a payment gateway make sure to find a processor that offers their own proprietary payment gateway. A payment processor is a system that connects the cardholder s bank with the merchant s bank and the card brands e g. Now you know the difference between payment processor vs.

If a payment gateway acts as a virtual pos the payment processor acts as an intermediary between the pos and the merchant bank. In addition to ecommerce transactions a gateway can. There may be a possibility that you are still a bit confused about them. It may partner with other companies dealing with merchants or consumers.

However in today s payments landscape gateway technology has expanded to create a seamless buying experience across all sales channels and devices.