What is Payment Gateway?

A payment gateway is a software platform that acts as a channel between an e-commerce merchant’s website and the bank that processes a consumer’s credit card payment. A payment gateway can also process payments using methods such as eCheck (ACH) payments and debit cards. The main purpose of the payment gateway is to safely transmit the consumer’s confidential credit/debit card and bank account data to the issuing bank and other entities involved in the payment.

Payment gateways send transaction information to acquiring banks and replies from issuing banks about whether a payment is accepted or declined. In short, payment gateways assist communication between banks.

Security is a main feature of all payment gateways as confidential data such as credit card numbers need to be protected from fraudulent parties. The card associations have determined security standards that must be adhered to by all parties with access to card details including gateways.

List of Payment Gateway Software Companies

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