A payment gateway is an e-commerce application offered by a service provider that authorises credit/debit card payments
It is the equivalent of a physical point of sale terminal located in most retail outlets. After a online customer has entered credit card/bank details the payment gateway encrypts the data and passes it securely between the website and the merchant and also between merchant and the payment processor. Many retailers may already have a payment gateway and simply need to configure it to allow for online payment processing.
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