Payment Gateway

How a payment gateway works

1. A customer enters card details at checkout.
2. The gateway encrypts the details and sends them to the processor.
3. The processor sends the request through the card network to the customer's bank.
4. The bank approves or declines, and the answer travels back through the gateway to your checkout.

This happens in a few seconds.

Gateway vs. merchant account

The gateway moves the transaction data. The merchant account is where the money is settled before it's paid out to your bank account. Online businesses need both. Some providers bundle them together, and others let you choose a gateway that works with your shopping cart or software.

Features to look for

• Compatibility with your website platform or shopping cart
• Fraud tools such as address (AVS) and security code (CVV) checks
• Support for recurring billing, if you sell subscriptions
• Card storage that keeps raw card numbers off your servers