What’s the difference between a payment gateway and a payment processor?
If you’re in the market for credit card processing solutions, you might have come across the terms “payment gateway” and “payment processor.” While these are two key, related elements of credit card processing, they are not the same. If you’re unsure of the distinction, you’re not alone. However, to make an educated purchasing decision about your small business’s ability to accept credit card payments, it’s important to understand the nuances.
This guide will introduce you to payment gateways and payment processors, also explaining how the two work together. If you plan on accepting credit card payments online, you’ll likely need both a payment gateway and a payment processor, so understanding each is critical to making the right choice for your small business.