A payment gateway is a service that facilitates online transactions by securely transmitting payment information between a website or mobile application and the payment processor used by the merchant. The payment gateway acts as an intermediary between the merchant’s website and the financial institution that processes the transaction, ensuring that sensitive information, such as credit card details, is transmitted securely.
E-commerce businesses need a payment gateway because it allows them to accept online payments from customers. Without a payment gateway, customers would have to mail in a check or call in their credit card information, which is much less convenient and can lead to a lower rate of completed sales.
Payment gateways are essential for e-commerce businesses because they provide a secure and reliable way for customers to pay for goods or services online. Additionally, payment gateways can also provide fraud detection and prevention services to help keep both the merchant and the customer’s information secure.
