What is a payment gateway?
A payment gateway is a service that allows a connection directly between a website and a bank, meaning that payments can be placed directly on a website and deposited straight into a bank account. It processes the transactions in real time. If you want to accept credit card payments on your website, the payment gateway is your solution.
The payment gateway application runs on a server that is dedicated to linking websites and banks so that online credit card transactions can be processed just in time. The application creates a secure, integral link between a website and the bank. After the client enters its credit card details in a website, the payment gateway receives these details and sends them to the bank for verification. The bank then replies with a response; usually either accepted or declined. The payment gateway then sends this response back to the website along with the appropriate message, displayed to the client – for example “The payment has been successfully processed”.