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.

File Extensions and File Formats

SearchCompliance

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

  • PCI DSS (Payment Card Industry Data Security Standard)

    The Payment Card Industry Data Security Standard (PCI DSS) is a widely accepted set of policies and procedures intended to ...

  • risk management

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

SearchSecurity

SearchHealthIT

SearchDisasterRecovery

  • call tree

    A call tree is a layered hierarchical communication model that is used to notify specific individuals of an event and coordinate ...

  • Disaster Recovery as a Service (DRaaS)

    Disaster recovery as a service (DRaaS) is the replication and hosting of physical or virtual servers by a third party to provide ...

  • cloud disaster recovery (cloud DR)

    Cloud disaster recovery (cloud DR) is a combination of strategies and services intended to back up data, applications and other ...

SearchStorage

Close