Payment Gateway

A payment gateway is the software that collects a customer's payment details at checkout and sends them on for authorization. It sits between your website or app and the banks.

What the gateway does

• It collects the card number, expiry date, and CVC, and encrypts them right away. Gateways often use tokenization so raw card data never reaches your servers.
• It sends the authorization request toward the acquirer and the card network.
• It returns the approval or decline to your checkout.

Because the gateway handles the card data, much of the PCI DSS work falls on the gateway instead of you.

Gateway vs processor

People often use the two terms for the same thing, and Stripe does both jobs. They are different roles:

• The gateway collects the payment data and sends it securely.
• The payment processor works with the banks to move the money.

Why it matters

When one provider does both, you won't notice the split. The gateway still decides your checkout experience, which cards and wallets you accept, and how much PCI work you have. If card data goes straight to the gateway and never touches your server, your PCI requirements are much smaller.