Browse Definitions :
Definition

payment gateway

Contributor(s): Matthew Haughn

A payment gateway is a service that authorizes a user’s transfer of funds between financial institutions to sellers without direct delivery of either bank or credit card account information. Payment gateways include PayPalGoogle Wallet, Apple Pay, Ali Pay and Amazon Pay.

Payment gateways allow the indirect use of bank accounts and credit card accounts online at stores that offer both online and in-person retail purchasing, also known as clicks and mortar, or traditional retail with only brick and mortar stores. When using a payment gateway, the user’s financial data is never submitted directly but transferred between a payment portal and the user’s bank or credit card. The information is transferred covertly and protected by encryption.

In the past, payment gateways were a necessity to make payment through bank accounts when shopping online. Early consumer confidence in shopping online was low with as consumers were concerned with customer data security and possible theft of their financial information. Payment gateways provided a means to make a payment to these sites without involving the direct information of each account to which the payment is tied. More recently, near field communication (NFC) in mobile devices has been used in conjunction with payment gateways for purchases at retail locations by way of tapping a phone on any NFC point-of-sale terminal upon checkout.

This was last updated in June 2018

Continue Reading About payment gateway

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance as a service (CaaS)

    Compliance as a Service (CaaS) is a cloud service service level agreement (SLA) that specified how a managed service provider (...

  • data protection impact assessment (DPIA)

    A data protection impact assessment (DPIA) is a process designed to help organizations determine how data processing systems, ...

SearchSecurity

  • cybersecurity insurance (cybersecurity liability insurance)

    Cybersecurity insurance, also called cyber liability insurance or cyber insurance, is a contract that an entity can purchase to ...

  • phishing

    Phishing is a form of fraud in which an attacker masquerades as a reputable entity or person in email or other communication ...

  • cybercrime

    Cybercrime is any criminal activity that involves a computer, networked device or a network.

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

SearchStorage

  • NVMe over Fabrics (NVMe-oF)

    NVMe over Fabrics, also known as NVMe-oF and non-volatile memory express over fabrics, is a protocol specification designed to ...

  • logical unit number (LUN)

    A logical unit number (LUN) is a unique identifier for designating an individual or collection of physical or virtual storage ...

  • CIFS (Common Internet File System)

    CIFS (Common Internet File System) is a protocol that gained popularity around the year 2000, as vendors worked to establish an ...

Close