A payment gateway is a secure online service that processes payments between a customer, a merchant (your business), and the banks involved in the transaction. It acts like a digital “card machine” for online purchases.
How it works (simple explanation):
- Customer enters card details on your website/app.
- The payment gateway encrypts the information to keep it safe.
- It sends the transaction to the bank or card network (Visa, Mastercard, etc.).
- The bank approves or declines the payment.
- The gateway sends the response back to your website, confirming success or failure.
- If approved, the funds are settled into the merchant’s bank account.
Why a payment gateway is needed:
- Protects sensitive card information (PCI compliance).
- Ensures safe and fast payment processing.
- Prevents fraud using security tools (3D Secure, AVS, tokenization).
- Supports multiple payment methods: credit/debit cards, instant EFT, wallets, etc.
In short:
A payment gateway is the technology that securely moves payment information from the customer to the bank and back, ensuring you can accept payments online.
If you’d like, I can also explain:
- The difference between a payment gateway and a payment processor
- How to choose the right one for your business
- Typical fees and setup steps
PBS Payment Gateway Development:
PBS are flexible and will integrate with many payment gateways in upcoming years. We have initially partnered with Yoco to provide online payments.