Tuesday, 10 December 2013

Difference between a Processor and a Payment Gateway



People often confuse a payment processor with a payment gateway and vice versa when they have to set up payment modules. The confusion is obvious for various units are involved in the process. When understood carefully, however, the two terms exist independently with either having its significance! 



Difference between Payment processor and Gateway

A Payment Processor

A payment processing company or processor represents various payment processing payments. It functions as a middleman, connecting website holders with gateways and banks. The website owner needs to send the processor an application with their credit history and all required product details. 

A Payment Gateway

A payment gateway is a body that connects a website with a customer’s bank and a processing bank. It verifies that the information provided by a customer for payment matches customer details with the bank. The gateway company informs the customer’s bank every time an order is placed by a customer on your site.

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