Gateway vs Payment Processor

Gateway vs payment processor

Payment Gateway vs. Payment Processor  

Like two peas in a pod, you need both a Payment Gateway and a Payment Processor to run a successful business and accept payments. Payment Gateway is essentially the online parallel of a physical credit and debit card reader, capturing and transmitting credit card data to the Payment Processor, a service that works directly with the banks and card issuers. If starting an E-Commerce business, deep dive into the following lines, and make sure your payments go safe, easy, and profitable given today’s age of cybercrime becoming a more challenging problem to solve. It’s worth understanding the basics of an online payment flow. 

Secure your payment and customer’s shopping experience  

For the payment ecosystem to go rolling smoothly and for customers to feel secure and satisfied, we stand at your service, providing the support of experts in choosing the right payment platform, reducing the time required to open a bank account, heightening the fight against chargebacks, gaining credibility and better status with banks, creating more favourable conditions for more flexible business, that way attracting new customers. We are there with Merchants from the very first steps to help place products or services on the market and make them available to the customer with just a click away. Since consumers appreciate the convenience of buying online, to continue so, they must feel safe paying and entering payment details on the payment page, or the payment form placed on a website. Thanks to Payment Gateway software that’s doing all the hard work in the background purchaser’s secureness and satisfaction are possible. After receiving the payment details, it encrypts them and sends the data to the next link in the chain, which is the Merchant’s Payment Processor, ensuring that information is passed securely.   

Why do I need both services? 

A Payment Gateway software serves as an interface between a Merchants’ website and a customer’s bank that processes and approves the credit or debit card transaction and transmits the cardholder’s bank response quickly. In other words, it works as the middleman between your customer and the Merchant, also passing the information if the payment was accepted or declined. While doing so, the software is looking out for potential fraud, checking if the mean of payment might be at potential risk, concerning expiration dates, and ensuring that the transaction does not exceed the customer’s limit. Its job description is to capture the data, ensure the funds are available, and get a Merchant paid. Payment Gateway acts as a POS terminal operating in the virtual world, processing transactions when the cardholder uses their card to make a payment. In this case, the customer’s card cannot be physically swiped on a POS terminal, so as a Merchant you must rely only on the card information that the customer is entering on the web. Fraud risk in e-Commerce is significantly higher, and this is where a Payment Gateway shows its powers of wizardry, being the gatekeeper of your customer’s payment data. 

Acting as the mediator between the Merchant and the financial institutions involved, The Payment Processor also ensures customers’ sensitive financial information is safeguarded against access by villainous third parties. This service is responsible for communicating between the Merchant, credit card company, and Acquiring Bank. 

ThePayPortal – All-In-One Solution

Now knowing that each service is playing a vital role in doing business, having both an online Payment Gateway and Payment Processor is essential for every E-commerce. Let us help you select a Payment Processing Solution tailored to meet your business needs, aiding you to increase your profit and set your business one step ahead of others. Lay a stable foundation for your business with the right choice of a Payment Processor that will transform your customer experience, and increase safety and data security, all leading to better customer satisfaction, greater loyalty, retention, and larger profits.