Payment Gateway
A payment gateway is a technical interface that securely encrypts and transmits payment information between the online shop and the payment processor, authorising the transaction.
Payment Gateway
A payment gateway is a central component in e-commerce payment processing. It acts as a technical bridge between the online shop and the payment network that carries out the actual transaction processing.
When a customer initiates a payment in an online shop, the payment gateway transmits the encrypted payment data to the acquirer or the payment provider. The latter forwards the data to the card network (e.g. Visa or Mastercard) and the issuer, who authorises or declines the transaction.
Modern payment gateways support numerous payment methods — from credit cards and TWINT to purchase on account and wallets such as Apple Pay and Google Pay. They also handle functions such as 3-D Secure, tokenisation and fraud prevention.
Payment Gateway Examples
A WooCommerce shop integrates a payment gateway via a plugin to accept Visa, Mastercard and TWINT in the checkout.
A developer integrates a payment gateway via a REST API to implement customised payment flows in a mobile app.
A marketplace uses a payment gateway with a split-payment function to automatically split payments among multiple Comerciantes.
Payment Gateway FAQ
What is a payment gateway?
A payment gateway is a technical interface that securely transmits payment information between an online shop and the payment processor. It encrypts the data and forwards the authorisation request to the card network.
Do I need a payment gateway for my online shop?
Yes, if you want to accept electronic payments, you need a payment gateway — either directly or via a payment service provider (PSP) that offers the gateway as part of its service.
What is the difference between a PSP and a payment gateway?
A payment gateway is the technical interface for transmitting payment data. A PSP (Payment Service Provider) additionally offers contract processing, payouts and often also acquiring. Many PSPs operate their own payment gateway.
Is a payment gateway secure?
Yes, reputable payment gateways are PCI DSS certified and encrypt all payment data using TLS/SSL. Sensitive card data is tokenised and never stored in plain text.
Which payment methods does a payment gateway support?
Modern payment gateways support credit cards (Visa, Mastercard, AMEX), debit cards, mobile wallets (Apple Pay, Google Pay), local methods (TWINT, PostFinance), BNPL (Klarna), and bank transfers.
