Payment Gateway vs. Payment Processor: What’s The Difference?

What is the difference between a payment gateway and a payment processor? Well, in a nutshell, the processor moves the money while the gateway approves the transactions. They are two services and not two different companies. Now there are a few companies, Stripe for example, that offer both of these services and it almost seems like one thing. There are also exceptions to this rule. There are companies that only offer payment gateway services. Most companies that sell you one service will also sell you the other. what is the payment gateway for? You will receive an approved or rejected message very quickly. Also, the gateway usually investigates and try to determine if the transaction is fraudulent. It should be noted that payment gateway services are relatively new. The first e-commerce transaction took place in 1992, so these services barely started after that date. Payment processing, on the other hand, is as old as the idea of getting a payment processor that primarily transfers money from the recipient’s account to the merchant who accepts the money. They also ensure that the card issuers of the card networks receive their commissions from the merchant. A quick answer is that the gateway tends to play traffic cops in the processor, they move the money.