Payment Processor & Payment Gateway

A payment processor completes the transaction by sending data between you, the merchant; the issuing bank (i.e. the bank issuing the customer’s credit card); and the receiving bank (i.e. the bank). Usually, the payment provider also supplies credit card machines and other facilities to accept credit card payments. To accept credit cards, you can set up a merchant account with a merchant service provider.

A payment gateway is a mechanism that safely transmits online payment data to processor to begin the transaction ‘s lifecycle. It also authorizes fees for non-present-card purchases, mainly for eCommerce websites. Think of it as the remote point-of – sale terminal.

The difference is that a payment processor facilitates the transaction, and a payment gateway is a tool that communicates approval or decline between you and your customers.

DISCLAIMER The information contained on this website is provided for informational purposes only and is not intended to substitute for professional financial, legal or tax advice. You should consult a professional before acting on any information you find here. This website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. Any references to third party products, rates, or websites are subject to change without notice. Please do the appropriate research before participating in any third party offers. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage © Copyright 2021 Cryptostec