What is Payment Gateway?
A payment gateway is a software platform that acts as a conduit between an e-commerce seller’s website and the bank that processes a buyer’s credit card payment. A payment gateway can also process transactions using methods such as eCheck (ACH) payments and debit cards. The main task of the payment gateway is to securely transmit the buyer’s private credit/debit card and bank account details to the issuing bank and other parties involved in the payment.
Payment gateways send transaction data to acquiring banks and answers from issuing banks about whether a payment is approved or declined. In short, payment gateways assist communication between banks.
Security is a main feature of all payment gateways as private data such as credit card details need to be sheltered from fraudulent parties. The card associations have stipulated security standards that must be adhered to by all entities with access to card data including gateways.
List of Payment Gateway Software Companies
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