Gateway and Payment Processing

What is the Difference Between a Payment Gateway and a Payment Processor?

If you are a business owner, the terms payment gateway and payment processor are likely not foreign to you. In fact, they are likely something you have spent a lot of time thinking about. However, understanding the difference between the two may at times seem difficult. Yet it does not have to be so complicated. The reality is, these similar tools for payment processing are not hard concepts to understand with just a little explanation. So what exactly is the difference between a payment gateway and a payment processor? Let’s find out the answer to that question below. The Four Entities of a Credit Card Transaction Before we look at the difference between payment gateways and payment processors, it is helpful to first look at the different entities involved in a credit card transaction. There is the customer, the merchant, the acquiring bank and the issuing bank. The acquiring bank is…

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