Payment Gateway
A payment gateway is a technical interface that encrypts and transmits payment information between the online shop and the payment processor, and authorises the transaction.
Payment Gateway
A payment gateway is a central component in e-commerce payment transactions. It acts as a technical bridge between the online shop and the payment network that performs 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 service 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 like Apple Pay and Google Pay. They also handle functions such as 3-D Secure, tokenisation, and fraud prevention.
Payment Gateway Examples
A WooCommerce shop connects 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 between 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 transferring payment data. A PSP (Payment Service Provider) additionally offers contract handling, payouts and often acquiring services as well. 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.
