What is Payment Gateway?

A payment gateway is a software application that acts as a conduit between an e-commerce merchant’s website and the bank that processes a customer’s credit card transaction. 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 sensitive credit/debit card and bank account information to the issuing bank and other parties involved in the transaction.

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

Security is a main feature of all payment gateways as confidential data such as credit card details need to be sheltered from fraudulent parties. The card associations have fixed security regulations 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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