Payment Gateway Vs Payment Processor

In addition to basic transactions a gateway can be used to integrate payments with crm software or process transactions on a mobile device.

Payment gateway vs payment processor.

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. There may be a possibility that you are still a bit confused about them. What s a payment processor. If a payment gateway acts as a virtual pos the payment processor acts as an intermediary between the pos and the merchant bank.

It may partner with other companies dealing with merchants or consumers. A payment processor enters into a reselling agreement with a payment gateway or a merchant account provider so to offer their. The payment is sent securely to the payment processor via a payment gateway. 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.

When a purchase is made online the payment gateway transfers credit card information from the ecommerce platform directly to thecredit card processor. A payment processor or acquirer is a financial institution providing the payment processing services used by online merchants. When the card number is entered the payment gateway then connects with the payment processor to get the transaction done. Which do i need.

When looking for a payment gateway make sure to find a processor that offers their own proprietary payment gateway. The most common use of a gateway is to accept payments for goods and services online. The payment gateway securely authorizes payments for payment accepting websites. The important aspect to payment gateways and processors is secure.

The most common use of an ecommerce payment gateway is to accept payments for goods and services purchased online. Visa mastercard discover etc and ensures that all of the money ends up in the proper place. The gateway should be developed by in house software developers and store customer card information off site to ensure pci compliance for small business. The payment processor receives all the payment information card details transmitted by the payment gateway and passes this information on to the merchant bank.

Which do i need. A payment processor is a system that connects the cardholder s bank with the merchant s bank and the card brands e g. However in today s payments landscape gateway technology has expanded to create a seamless buying experience across all sales channels and devices. The gateway will either approve or deny the transaction.

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