What is a payment gateway?

A payment gateway is a technology company. Its relationships with banking institutions are structured to ensure that an online store's technological connection to financial processors works properly. In this case, the merchant is free to contract only the card networks most commonly used by their customers and, above all, negotiate fees directly with the processors, securing considerable discounts based on sales volume. In short, a payment gateway works much like a credit card terminal in a physical store. The terminal is in your store, the customer swipes their card, and the information is sent to the credit card processor. If everything is in order, the processor approves the purchase, you are notified instantly, and the product or service is made available to the customer. On the other hand, a payment gateway does not offer the same kind of guarantee as a payment facilitator, which is why it also does not charge a commission on each sale. It charges only a flat fee per transaction, averaging around R$ 0.65, though this amount can drop considerably depending on transaction volume. Another disadvantage is that the merchant must set up and manage a contract with each financial institution they want to offer as a payment method in their store. They are also required to contract an anti-fraud system to protect their business. A gateway is recommended for large companies with a high volume of transactions that justifies having a specialized information security and anti-fraud team.