What is a Gateway?
A payment gateway (also called a virtual terminal) facilitates the transfer of information between a payment portal (such as a website or mobile phone) and the Front End Processor, or acquiring bank. In simple terms, a gateway is a software solution (usually web-based) that takes the card data, and passes it through the network, so the transaction can be approved, and the funds can clear. Gateways are most common in CNP (Card Not Present) environments, when a magnetic swipe or chip read cannot be conducted. Merchant environments where gateways are most prevalent include website sales, mobile app sales, mail order sales, and telephone order sales.