What is a payment gateway? How online checkouts take cards
By SendPay Business · · 2 min read
A payment gateway is the technology that takes a customer's card details at an online checkout, secures them, and passes them on so the payment can be approved or declined. It's the online equivalent of a card machine.
What happens when a customer pays
- The customer enters their card details at checkout.
- The gateway encrypts them and sends them to the payment processor.
- The processor asks the card scheme and the customer's bank to approve it.
- The answer comes back through the gateway, and the checkout shows paid or declined.
Gateway, processor and acquirer
The gateway collects and protects the card details. The processor moves the payment messages. The acquiring bank receives the money for the business. Many providers bundle all three into one service.
What to look for
Compare the fee per transaction, how fast money reaches you, which currencies and card types are supported, fraud checks such as 3D Secure, and how easy it is to add to your site.
Where SendPay fits
SendPay platforms include payment links, invoicing and subscriptions under your own brand, powered by licensed partners, so customers can pay without you building a checkout. You can preview your platform before you pay.
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 is a payment processor?
The company that moves card payment messages.
What is a payment processor? →What is an acquiring bank?
The bank that receives card payments for a business.
What is an acquiring bank? →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.