Payment Gateway
A payment gateway is an e-commerce application service provider service that authorizes credit card payments for e-businesses, online retailers, etc.
It is
the equivalent of a physical point
of sale terminal located in most retail outlets.
Payment gateways protect credit card details by
encrypting sensitive information, such as credit
card numbers, to ensure that information is passed securely between the
customer and the merchant and also between merchant and the payment processor.
A
payment gateway facilitates the transfer of information between a payment
portal (such as a website, mobile phone or interactive
voice response service) and the
Front End Processor or acquiring bank.
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