A Payment Gateway is a service that processes credit and debit payments for online merchants and traditional brick-and-mortar businesses. It encrypts the customer’s sensitive data and transfers it between a payment portal (a website or a mobile device) and the bank/front end processor. The most popular payment gateways are PayPal, Stripe, Square, and SecurePay.

In eCommerce, selecting the right payment gateway is crucial because it impacts sales and earnings. In making their selection, a merchant should consider: