Payments•3 min read
Payment Gateway
Definition
Service that processes online payment transactions between merchant and customer.
Detailed Explanation
A payment gateway is a technology that captures and transfers payment data from the customer to the merchant bank. It authorizes payments for e-commerce businesses, encrypting sensitive information to ensure secure transactions. Popular gateways include Stripe, PayPal, Square, and Amazon Pay.
Key Points to Remember
- 1Encrypts sensitive payment data
- 2Connects to merchant account
- 3Supports multiple payment methods
- 4PCI compliance required
- 5Transaction fees apply