Payment gateway
What is a payment gateway?
A payment gateway is a piece of technology that securely connects businesses and customers, enabling online and mobile transactions to be processed quickly and safely. Payment gateways are essential for any business that accepts online payments, whether you’re an ecommerce store or a retailer with a click-and-collect service. When a customer enters their card details at checkout, the payment gateway encrypts this information and securely passes it to the relevant card networks or banks for processing. Once the transaction is authorised, the gateway returns confirmation to your site, allowing the order to complete.
Payment gateways vs. payment processors
Both payment gateways and payment processors play key roles in moving money between customers’ banks and businesses. However, they do different jobs:
- Payment processors manage the entire transaction behind the scenes, they liaise with the issuing bank and acquiring bank to settle funds.
- Payment gateways act as a secure middleman that encrypts and validates transaction data before passing it along to a processor.
Together, they help UK businesses accept online payments securely and efficiently.
