Payment Gateway
AdvancedA payment gateway is a technology service that securely captures and transmits a customer's payment details from a website, app or terminal to the payment processor, so that an online or card payment can be authorised.
When a customer pays online, the payment gateway acts as the link between the merchant's checkout page and the financial institutions that approve the payment. It encrypts the card or account details, sends them for authorisation and returns the result to the merchant, usually within seconds.
For example, when a customer enters their card details on an online shop's checkout page, the payment gateway encrypts the information, passes it to the processor and card network, and tells the shop whether the payment was approved or declined.
Many payment companies combine the gateway with processing and merchant accounts in a single service, making it simple for small businesses to accept payments online.
Payment gateways must meet strict security standards, such as the Payment Card Industry Data Security Standard. Many include fraud prevention tools, support multiple payment methods and currencies, and use tokenization to avoid storing actual card numbers. Fees are usually charged per transaction.
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