Payment Gateway Vs Payment Processor

Which do i need.

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. What s a payment processor. Visa mastercard discover etc and ensures that all of the money ends up in the proper place. The payment is sent securely to the payment processor via a payment gateway.

It may partner with other companies dealing with merchants or consumers. Which do i need. 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. Now you know the difference between payment processor vs.

When looking for a payment gateway make sure to find a processor that offers their own proprietary payment gateway. If a payment gateway acts as a virtual pos the payment processor acts as an intermediary between the pos and the merchant bank. A payment processor or acquirer is a financial institution providing the payment processing services used by online merchants. A payment processor enters into a reselling agreement with a payment gateway or a merchant account provider so to offer their.

In addition to ecommerce transactions a gateway can. However in today s payments landscape gateway technology has expanded to create a seamless buying experience across all sales channels and devices. A payment processor is a system that connects the cardholder s bank with the merchant s bank and the card brands e g. Unlike payment processors payment gateways are primarily used on ecommerce sites.

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. The gateway will either approve or deny the transaction. Think of it as an online point of sale terminal for your business. The most common use of a gateway is to accept payments for goods and services online.

The most common use of an ecommerce payment gateway is to accept payments for goods and services purchased online. When a purchase is made online the payment gateway transfers credit card information from the ecommerce platform directly to thecredit card processor. The payment gateway securely authorizes payments for payment accepting websites. In addition to basic transactions a gateway can be used to integrate payments with crm software or process transactions on a mobile device.

The important aspect to payment gateways and processors is secure.