Payment Gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar. It acts as the intermediary between a merchant’s website and its processor, ensuring that sensitive information like credit card numbers are passed securely between the customer and the merchant. Think of it as a digital cashier who takes money from the customer and registers the sale on behalf of the store.
