A payment gateway is a mercantile service providing by an e – commerce application service provider that authorizes credit card or payments processing for e – businesses online retailers, bricks and clicks or outdated brick and grout, the payment gateway may be provided by a bank to its customer, but it can be provided by a specialized financial service provider as a separate service, such as a payment service provider. A payment gateway facilities a payment transaction by the transfer or information between a payment portal (such as a website mobile phone or an interactive voice response service) and the front end processor or acquiring bank. A customer places an order on the website by pressing the “submit order” equivalent button or perhaps enters their cards details using an automatic phone answering service. The merchant then forwards the transaction details to their payment gateway. This is another encrypted connection to the payment server hosted by the payment gateway.

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