# Payment Gateway

> A payment gateway is a technology service that authorizes and processes credit card and digital payment transactions between a merchant and the acquiring bank.

- **URL**: https://dodopayments.com/glossary/payment-gateway

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## What is a Payment Gateway?

A payment gateway is a technology that provides secure transfer of payment information between a customer, a business, and the financial institution processing the transaction.

It acts as a digital bridge, making sure that payments made online or through a point-of-sale system are authorized and completed safely.

### How It Works:

- A customer selects a product or service and proceeds to checkout.

- The payment gateway encrypts the customer's payment details and securely sends them to the acquiring bank.

- The acquiring bank communicates with the issuing bank to verify and approve the transaction.

- Once approved, the payment is transferred to the merchant's account, and the customer receives a confirmation.

## Learn More

- [Payment gateway comparison for modern SaaS](https://dodopayments.com/blogs/payment-gateway-comparison)
- [Best payment methods for SaaS businesses](https://dodopayments.com/blogs/best-payment-methods-for-saas)
- [How to accept online payments globally](https://dodopayments.com/blogs/how-to-accept-online-payments)