What is the Difference Between a Payment Gateway and a Payment Processor?
The payment gateway and payment processor are two key links in the payment processing chain. While the terms are sometimes used interchangeably, they are often two independent entities and serve difference functions when processing credit cards and other forms of payment.
Payment Gateways
A payment gateway is a tool that securely transmits the online payment data to the processor to continue the lifecycle of the transaction. Think of it as an online point-of-sale terminal for your business. That being said, the payment gateway is the only component that WebAlliance will interact with in regards to credit card transactions. Examples of payment gateways that WebAlliance can integrate with are as follows:
- Authorize.net
- Element/Vantiv
- PayAssist/Transafe
- ServiceFirst/Accept.Blue
- CardSmart/CardPointe
- PayTrace
- Forte
- PayerExpress
- Elavon
- Moneris
- EPPS
If you have a payment gateway that is not one of these listed above, please contact Aldrich Web Solutions. There is a possibility of integrating with other payment gateways.
Payment Processors
A payment processor executes the transaction by transmitting data between you, the merchant; the issuing bank (i.e., the bank that issued your customer’s credit card); and the acquiring bank (i.e., your bank). To accept credit cards at your business, you’ll set up a merchant account with a merchant service provider. Keeping that in mind, what payment processor you use does not directly affect your site. However, some payment processors (e.g., Chase) have the ability to provide you with their own, proprietary payment gateway as well.