e-Commerce Glossary · O-Ö

What Is Payment Gateway?

A tool used on e-commerce sites to carry out online payment transactions. The payment gateway receives the customer's credit card details and passes them to the payment service provider (a bank or payment institution). After verifying this information, the payment service provider processes the payment and sends the result of the transaction back to the e-commerce site. Throughout this process, the payment gateway ensures that customer information is transmitted securely.