Payment Gateways Vs Payment Processors (2024)

FAQs

What is the difference between payment gateway and payment processor? ›

A payment gateway is a network that collects, verifies and performs fraud checks on customer's credit card information before sending it to the payment processor. A payment processor is a service that routes a customer's credit card information between the customer's bank and the merchant bank.

Is PayPal a payment gateway? PayPal provides both payment gateway and payment processing services.

You'll need both a payment gateway and a payment processor if you run an e-commerce business that accepts online payments. It's also important if you want to accept point-of-sale or mobile device payments.

By offering an integrated service that includes payment processing, payment gateway, and merchant account functionality, Stripe simplifies the payment process for businesses, allowing them to focus on their core operations while maintaining a smooth and secure payment experience for their customers.

Amazon Pay is an online payments processing service owned by Amazon. Launched in 2007, Amazon Pay uses the consumer base of Amazon.com and focuses on giving users the option to pay with their Amazon accounts on external merchant websites.

Visa, a key player in the payment processing sector, is used by a wide array of businesses—from small retail businesses to large multinational corporations. Visa processed 242 billion transactions globally in 2022, according to data from Statista.

Mastercard is a payment network processor. Mastercard partners with financial institutions that issue Mastercard payment cards processed exclusively on the Mastercard network. Mastercard's primary source of revenue comes from the fees that it charges issuers based on each card's gross dollar volume.

As a leading payment gateway, Authorize.net is trusted by more than 430,000 merchants, handling more than 1 billion transactions and $149 billion in payments every year.

A payment processor is a company or service that facilitates electronic transactions—such as payments made with credit cards, debit cards, or digital wallets—between businesses and their customers.

Is Clover a processor or gateway? ›

Clover is a payment gateway that allows you to securely accept credit card payments from your customers in your Ecwid store. When it's enabled, customers can fill out the secure credit card form right in your store's checkout page to safely pay for their order.

Apple Pay handles the details of the transaction, and the payment is processed as a card-present transaction through your existing processor.

Square software is also PCI compliant. As an end-to-end payment processor, our systems are fully integrated, which means we make PCI compliance easy for you. When you process payments through Square, using Square hardware, your customers' card information never touches an independent device.

Can I create my own payment gateway? Yes, you can. However, it requires a combination of software development, security expertise, financial knowledge, and regulatory compliance, as well as investments in development and maintenance.

To conclude, a payment service provider (PSP) provides merchant accounts to a set of merchants and aids them with transaction processes but will not be involved in the financing process. A payment gateway is a process that transports data between a receiver and the payment initiator.

A payment processor is a company that facilitates communication between the bank that issued a customer's debit or credit card and the seller's bank. The processor's job is to verify and authorize payment.