Payment Gateway Vs Payment Processor

Now you know the difference between payment processor vs.

Payment gateway vs payment processor.

When the card number is entered the payment gateway then connects with the payment processor to get the transaction done. However in today s payments landscape gateway technology has expanded to create a seamless buying experience across all sales channels and devices. When looking for a payment gateway make sure to find a processor that offers their own proprietary payment gateway. The payment is sent securely to the payment processor via a payment gateway.

Visa mastercard discover etc and ensures that all of the money ends up in the proper place. Which do i need. Which do i need. When a purchase is made online the payment gateway transfers credit card information from the ecommerce platform directly to thecredit card processor.

The most common use of an ecommerce payment gateway is to accept payments for goods and services purchased online. The important aspect to payment gateways and processors is secure. In addition to ecommerce transactions a gateway can. It may partner with other companies dealing with merchants or consumers.

In addition to basic transactions a gateway can be used to integrate payments with crm software or process transactions on a mobile device. 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 or acquirer is a financial institution providing the payment processing services used by online merchants. A payment processor is a system that connects the cardholder s bank with the merchant s bank and the card brands e g.

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. If a payment gateway acts as a virtual pos the payment processor acts as an intermediary between the pos and the merchant bank. The most common use of a gateway is to accept payments for goods and services online. What s a payment processor.

There may be a possibility that you are still a bit confused about them. Unlike payment processors payment gateways are primarily used on ecommerce sites. A payment processor enters into a reselling agreement with a payment gateway or a merchant account provider so to offer their. The gateway will either approve or deny the transaction.

Think of it as an online point of sale terminal for your business.