Payment gateway vs merchant account vs payment facilitator, in plain English
By SendPay Business · · 2 min read
When a customer pays by card, several companies play a part in the second it takes. Knowing who does what helps you pick a provider, understand your fees and, if you run your own payments app, explain to your customers where their money goes.
The payment gateway
The gateway is the secure checkout: the page or terminal where the card details are entered, encrypted and passed on. On a card machine the terminal does this job; online it's the checkout page or payment link.
The merchant account
A merchant account is held with an acquirer, a bank or licensed firm that accepts card payments on the business's behalf and pays the money out. Traditionally each business applied for its own, which took time and paperwork.
The payment facilitator
A payment facilitator holds one master account and signs up many small businesses under it. That's why modern providers can let a business take payments the same day, without its own merchant account application.
Which you need
- A small business taking some card payments: a provider that bundles all three, so you only deal with one company.
- A large business with high card volume: its own merchant account can bring lower rates.
- Your own payments app for other businesses: a platform whose payments are powered by licensed partners, so your businesses are signed up under them.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
What do card payments cost?
The free card fee calculator shows what you keep from each sale after the fee.
Card fee calculator →Do I need a card machine?
Not always. The card machine alternatives guide covers payment links, invoices and tap to pay on a phone.
Card machine alternatives →Where can I look up payment terms?
The payments glossary explains the words providers use, in plain English.
Payments glossary →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.