A payment gateway is a service that authorizes credit card and other electronic payments for online and in-person businesses. It acts as an intermediary, securely transmitting transaction data from the customer to the acquiring bank and ultimately to the payment processor.
Payment Gateway
Definition
A payment gateway is a service that authorizes credit card and other electronic payments for online and in-person businesses. It acts as an intermediary, securely transmitting transaction data from the customer to the acquiring bank and ultimately to the payment processor.
Example
When you buy something online and enter your credit card details, a payment gateway like Stripe or PayPal securely sends that information to your bank for approval.
Key Points
- 1Facilitates secure online and in-person electronic payments.
- 2Encrypts sensitive payment information.
- 3Connects merchants with payment processors and banks.
- 4Essential for e-commerce transactions.
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