A payment gateway is the pipe between a checkout page and the payment networks. It encrypts card or wallet data, routes the authorisation request, and returns an approve or decline so the merchant can complete the sale.

Key takeaways

  • The gateway does not usually hold your money; banks and schemes settle the funds later.
  • Merchants pick gateways for security features, fees, and which cards or wallets they accept.
  • Failed payments often show up first as a gateway error, even when the real cause is a declined card.
  • Strong customer authentication and fraud checks often run through the same path.