PaymentGateways

Payment gateways are technology services that enable merchants to accept electronic payments online or in mobile apps. They securely transmit payment data from the customer to the payment processor and back with an authorization decision, allowing funds to be settled to the merchant's account. The gateway itself does not typically hold funds; its role is to authorize and route the payment data through the card networks to the issuing bank and to relay the response to the merchant.

In a typical transaction flow, the customer enters card or payment method details. The gateway encrypts the data and forwards it to the processor or acquiring bank via the card networks. The issuer authorizes or declines the transaction, and the gateway relays the result to the merchant. If authorized, settlement occurs between the processor/acquirer and the merchant.

Gateways can be integrated through hosted payment pages where the customer interacts on a gateway-hosted interface, or through API-based integrations where the merchant's site handles the collection and sends data directly to the gateway. Some gateways offer plugins for e-commerce platforms, mobile SDKs, or multi-merchant dashboards.

Security and compliance are central: gateways typically support tokenization and encryption, 3D Secure, and PCI DSS compliance considerations for merchants. Tokenization replaces card numbers with tokens, reducing exposure of sensitive data. Merchants remain responsible for PCI scope based on data handling.

Economic considerations include per-transaction fees, monthly fees, setup costs, and currency or payment-method coverage. Availability varies by region and provider. Common gateways include Stripe, PayPal/Braintree, Adyen, Square, and Authorize.Net.