A payment gateway is a service presented to us by an e-commerce application service provider that approves our credit cards or direct payment processing for internet businesses, online retailers, and traditional brick. In other words, a payment gateway is a network through which customers can transfer funds to a business. While using this network, it is important that both customers and businesses function together to make a transaction. One of the most famous online payment gateways is Paypal.
In physical stores, we find payment gateways consisting of point-of-sale (POS) terminals, where they accept our credit card details either through cards or smartphones. In online stores, the same is written as the ‘checkout’ portals on the website page, Learning Management System, clicking on which, a page appears that asks us to enter our card information or credentials.
Payment gateway technologies are continuously developing themselves with every passing day, just to fit better with customer tastes and technical capacities. Initially, our credit cards would get accepted at the terminals, using magnetic strips and required paper signatures of the customers. However, nowadays, only a Personal Identification Number (PIN) is required to enter directly into the payment gateway network.
In conclusion, payment gateways have marked an important position in the digital economy and have made the process of sharing our credit card information very safe and secure. These systems have also reduced some barriers to e-commerce.