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What is the difference between payment processors and payment gateways?

Posted: Sun Apr 06, 2025 8:39 am
by zihadhasan012
Payment processors and payment gateways work together to handle online transactions, but they are not the same thing.

A payment processor is a service that moves money between a customer’s bank and your business’s account. It handles things like verifying funds, approving transactions, and making sure the money gets to you securely.

On the other hand, a payment gateway gambling database mexico is a tool that collects and transfers payment details from your website to the payment processor. It acts as a bridge between your online store and the processor, ensuring that sensitive data is protected.

Some services, like Stripe and PayPal , act as both a gateway and a processor, which makes setup easier.

In short, the payment gateway handles the front-end process, such as collecting payment information from customers, while the payment processor does the back-end work of moving the money.