A service that securely processes online payments between a customer, a business, and financial networks. A seller should check fees, supported countries and currencies, payout timing, disputes, security, and compatibility.
How Payment Gateway Works
A payment gateway securely passes transaction information between the checkout, payment processor, card network or bank, and merchant systems. It helps authorize or decline the payment and returns the result to the checkout.
Simple Example
A checkout sends card information through a gateway, receives an approval, and marks the order paid.
Why It Matters for Beginners
This matters because payment failure, fraud controls, and checkout compatibility directly affect revenue. The gateway also handles sensitive information that should not be processed casually.
A Common Mistake
Assuming a successful gateway connection means taxes, refunds, fraud settings, and access rules are also configured correctly.
Related Terms
- Checkout
- Ecommerce
- Encryption