{"id":11750,"date":"2022-01-11T07:45:07","date_gmt":"2022-01-11T07:45:07","guid":{"rendered":"https:\/\/www.appstudio.ca\/blog\/?p=11750"},"modified":"2023-04-13T09:01:13","modified_gmt":"2023-04-13T09:01:13","slug":"difference-between-payment-gateway-and-payment-processor","status":"publish","type":"post","link":"https:\/\/www.appstudio.ca\/blog\/difference-between-payment-gateway-and-payment-processor\/","title":{"rendered":"Difference Between Payment Gateway and Payment Processor \u2013 Know it All"},"content":{"rendered":"\n
The after-effects of the unprecedented pandemic have affected the economy in several ways but have also paved the way for a plethora of budding opportunities for businesses. According to the Salesforce Shopping Index, the E-commerce industry has significantly boomed while contributing a 71% increase in global digital revenue. While there are several aspects involved in a successful transaction in the ecommerce and other industries, payment gateways and payment processors are the linchpins facilitating smooth transactions.<\/p>\n\n\n\n
The demand for an integrated and multichannel payment source increases rapidly because of the spectacular convenience rendered. Online payment gateways and payment processors are setting a new baseline for growth by enabling organizations to render robust payment platforms to their highly functional, scalable, faster, and reliable customers.<\/p>\n\n\n\n
According to Statista<\/a><\/strong>, the payment gateway market is anticipated to contribute 22.6 million terminals by the fiscal year 2025. A massive upsurge was witnessed as it was 3.6 million terminals in 2015. Around 7 quadrillion rupees are projected to generate the entire digital payments industry by 2025.<\/p>\n\n\n\n A payment gateway is a secure software that aids the ecommerce businesses process transactions on the respective websites and apps via credit cards, debit cards, PayPal, net banking and e-wallets. Different payment gateways ensure smooth and secure transactions made by consumers. Simply stating, the payment gateway authenticates the cardholders\/buyers to make payment securely from their account to the seller\u2019s\/merchant\u2019s account. This is a highly secure protocol, as the data is always encrypted safely. Hiring a proper ecommerce web development agency<\/strong><\/a> <\/strong>is the best way to integrate ecommerce payment gateway protocol in businesses. While a payment gateway enables secure and smooth facilitation of transactions, a payment processor is the one that communicates and relays the information of the customer\u2019s debit card\/credit card to the bank account of the business owner\/merchant. In simpler words, payment processors act as a bridge between the bank of the customer and the merchant, transmitting the payment data across the two platforms. Moreover, the payment processor helps businesses create an in-house or third-party merchant account.<\/p>\n\n\n\n The payment processor also ensures the implementation of security measures in the payment transaction and eradicates potential fraudulent practices. Additionally, if any customer raises the problem of charging them incorrectly, the payment processor takes care of the accidental transaction. However, the fees will be incurred by the merchant.<\/p>\n\n\n\n Payment processors are supported by a software called POS. The POS system aids in easing out complex business operations. It is highly functional and easy to use, facilitating generating invoices of the products and services sold. Integrating POS application development<\/strong><\/a> and payment gateway, and payment processor would be a smart move.<\/p>\n\n\n\n There\u2019s a lot of discussion regarding the difference between payment gateways and payment processors. However, both encompass different qualities but are equally important for ensuring a secure and smooth transaction. However, some little differences can be understood from the following table:<\/p>\n\n\n\n<\/figure><\/div>\n\n\n\n
What is a Payment Gateway?<\/strong><\/h2>\n\n\n\n
<\/p>\n\n\n\nThe payment gateway has aided the entire ecommerce industry tremendously; here are some of the benefits of a payment gateway, have a look:<\/h4>\n\n\n\n
What is a Payment Processor?<\/strong><\/h2>\n\n\n\n
Payment Gateway vs Payment Processor<\/strong><\/h2>\n\n\n\n