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Payment Gateway Vs Payment Processor

Payment Gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar.
Payment Processor is a company appointed by a merchant to handle transactions from various channels such as credit cards and debit cards for merchant acquiring banks.

So, what is the difference between gateway and processor? in this article, we will explain this difference.

Payment Gateway Vs Payment Processor

Both the payment gateway and the payment processor play huge parts in the online payment process. They must be compliant to ensure secure transmissions of the financial information. They also need annual auditing and certification to the most recent security standards.

 Payment Gateway has many benefits such as

  • Security  This biggest plus point about a payment gateway is the security it offers your website, which in turns ensures that your customers can buy with confidence.
  • Integration  Payment gateways are easily integrated with e-commerce platforms.
  • Several Currencies  If you have plans to sell to customers overseas then it’s worthwhile considering a gateway that supports and accepts foreign currencies.
  • Reporting  Payment Gateways can offer you reporting in real time so you can gather insights into how your business is doing, right up to the minute.

there are 4 costs to consider when you are looking at choosing a payment gateway

  • Set up. 
  • Monthly cost. 
  • Transaction Fees. 
  • Transaction Rate.

Examples of Payment Gateways

Authorize.Net developed its business and client base in an impressive way over the years. Today, it is used by over 400,000 merchants across the world to accept online payments via electronic checks and credit cards.
PayPal it is a popular payment gateway that accepts both debit and credit card payments. Buyers can use this service for free.
SecurePay It accepts mobile payments and offers electronic check services as well as an online shopping cart. To process credit card transactions, online sellers need to first register on SecurePay.com.
Adyen facilitates mobile, omnichannel, and eCommerce transactions. It supports all debit and credit card payments.

 

Payment Processor can be indirectly involved with all of the following elements:

  • Customer.
  • Business Owner.
  • Payment Gateway.
  • Credit/Debit card company of customer purchasing.
  • Bank of your business.

The payment processor connects to both the merchant account and payment gateway, quickly passing information back and forth, keeping it secure and almost instantaneous for the end user.

Examples of Payment Processors

Card Networks facilitate transactions between buyers, merchants, banks, and processors. These companies provide electronic networks that enable all parties to process transactions and communicate with each other.
Card Issuers provide credit and debit cards to customers. institutions also pay the merchant bank on behalf of consumers who use their card for purchases.
Merchant Acquirers Merchants need to coordinate with financial companies to accept payments. These institutions are termed merchant acquirers and they can be either Independent Sales Organizations or payment processors.
Processors are technology platforms that coordinate with card networks and banks to enable merchants to process debit and credit card as well as prepaid payments.

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