Payment gateway
Also called: Online gateway, Card-not-present gateway
Quick definition: Software that securely captures card data from a customer (online or in-person) and forwards it to your processor for authorization.
✓Editorially reviewedReviewed by Sam Patel, Merchant services editorUpdated April 1, 2026How we make moneyMethodologyAdvertiser disclosure
In plain English
The gateway is the messenger: it tokenizes card data, runs fraud checks, and hands the request off to the processor. The processor is the plumbing: it routes the request to the card network and the issuing bank for approval, then settles funds into your merchant account.
Standalone gateways like Authorize.Net and NMI let you keep one gateway while shopping processors. Stacks like Stripe and Square bundle gateway + processor + merchant account so you only deal with one vendor.
Example
A customer enters card data on your Shopify checkout. Shopify Payments (a gateway) tokenizes it, sends it to Stripe (the processor), Stripe routes to Visa and the issuing bank, the bank approves, and funds settle to your merchant account 1-2 days later.
Why it matters for your bill
If you ever want to switch processors without rebuilding your checkout, use a standalone gateway. If simplicity matters more than flexibility, a bundled stack (Stripe/Square) is faster.
FAQ
Yes — but they can come from the same vendor. Stripe, Square, and Helcim include both.
Standalone gateways typically charge $10-25/mo plus $0.05-0.10 per transaction.
How we research & score
- •Definitions reviewed against current card-network and PCI SSC documentation.
- •Updated when card-network rules or fee structures change.
Want to know what you're actually paying?
Get 3 honest quotes that decode every line item — no junk fees.