Question

Write short answers for the following questions:

What is a payment gateway?

Answer 1

A payment gateway is an e-commerce application that provides services which allows a direct connection between a website and a bank. In e-business, there is no exchange of cash or money over the counter; rather the payment is made through the web with the help of payment gateways. These gateways authorises the online payments made by the retailers, manufacturers, sellers or buyers and generally provide the option of making e-payments through credit card or debit card or through direct transfer from banks (through net banking). The payment gateways are also said to be the virtual equivalent of the physical Point of Sale as they allow transfer of payments through internet.