INTRODUCTION

What is Payment Gateway?

A payment gateway is an online service that allows businesses and individuals to accept payments from customers through their websites or mobile applications. It acts as an intermediary between a merchant and the financial institution processing the payment. A payment gateway not only includes a physical card reading device or a point-of-sale terminal used at a traditional brick and mortar store but also a payment processing terminal integrated into an online store. In simple terms, a payment gateway is a technology used by merchants to accept electronic payments such as credit or debit cards from online shoppers for their purchases of products or services.

Main Features of a Payment Gateway

For starters, a payment gateway ensures the secure transmission of any payment data. A payment gateway also provides encryption for data protection, integration with various payment methods, and the real-time processing of transactions. Essentially, a payment gateway works as a secure bridge between the merchant and the customer so that the financial transactions are completed seamlessly. It leads to the safe transfer of money from the customer’s bank account to the merchant’s account.