Online payment processing is what lets a website or app accept a card without anyone standing at a counter. It relies on two pieces working together, a payment gateway and a payment processor, and the two get confused with each other constantly.
Payment gateway versus payment processor
A payment gateway for a website is the software that securely captures a customer card details on a checkout page and encrypts them for transmission. The payment processor is what actually moves the transaction through the card networks and gets it approved. Most modern providers bundle both into one product, but they are technically two different jobs. For a fuller breakdown of how a payment gateway works on its own, including the different types available, see the dedicated guide.
What a business needs for online payment processing
- A secure checkout page or hosted payment page that never stores raw card numbers on the business own server.
- A payment gateway connected to the website or shopping cart platform.
- PCI compliance, a set of security standards every business accepting cards online is required to follow, usually handled through a short annual questionnaire.
- Recurring billing tools, if the business sells subscriptions or memberships rather than one time purchases.
Common ways to add a payment gateway to a website
Most websites add a payment gateway through a plugin or built in integration with their existing platform, a hosted checkout page that redirects the customer at the moment of payment, or a fully embedded checkout that keeps the customer on the business own site throughout.
If you are adding online payments to a website for the first time or replacing a gateway that charges too much, get in touch and we will help you find the right setup.