Payment gateway
Payment gateway
Checkout
The technology that securely captures payment details at checkout and sends them to the payment processor.
What is Payment gateway?
The gateway is the secure doorway between your checkout and the payment system. It encrypts card details as the customer enters them, passes them to the processor for approval and returns the result (approved or declined) to your store in seconds.
Tokenization is a key gateway job for subscriptions. Instead of storing the card number, the gateway returns a token that stands for the card. The store or subscription app saves the token and uses it for future charges, so real card numbers never sit on the merchant's systems.
Example
For example, a shopper enters a card on a checkout page. The gateway encrypts it, gets an approval in about two seconds and returns a token. Next month, the subscription app charges that token for the renewal without asking for the card again.
Why Payment gateway Matters
A reliable gateway protects card data and keeps checkout fast, which helps both security and conversion.
Explore More Terms
Browse our complete glossary of e-commerce and subscription terms.
