Payment gateways are software solutions provided to e-commerce merchants by a payment service provider (PSP). The payment gateway enables customers to complete online payments for goods and services using bank cards. There are a lot of misconceptions surrounding this notion, but, simply put, the payment gateway links the buyer, the merchant and the acquiring bank.
Payment gateways play a crucial role in reassuring website visitors of the merchant’s trustworthiness. In essence, payment gateways are the first line of defense against fraudulent activities, both on the merchant’s and the visitor’s side.