If you’re new to the world of online payments, it’s easy to get confused by all the jargon. Payment gateway, merchant account, payment processor — they all sound kind of similar, right? But each one plays a different role in helping businesses accept credit and debit card payments.
Let’s break it all down in a way that actually makes sense.
Payment processing is a team effort. The gateway handles the front end, the processor makes sure the transaction is legitimate, and the merchant account holds the funds until they’re all settled.
All of this happens in just a few seconds to give customers a quick and safe checkout experience.
Here is a quick comparison between these three terms:
A payment gateway acts as a middleman between your website (or point-of-sale system) and the bank. When customers enter their card information, the gateway encrypts and securely sends it to the payment processor or bank.
In other words, it’s the tech that makes sure payments can happen safely — whether they happen online or in-store.
Popular examples include Authorize.net, Braintree, Stripe, and SecureGlobalPay.
A merchant account is a special kind of bank account where your customers’ card payments go before the money hits your actual business bank account.
When someone buys something from your store, the money doesn’t go directly to you — it goes into this holding account first.
Roughly speaking, there are three major merchant account types you can choose from:
A payment processor (also known as PSP — payment service provider) is a company that handles the behind-the-scenes part of card transactions. It’s not just an app or a piece of software — it’s a full service that uses technology to move money from your customer’s bank to yours.
When someone pays with a card, the payment processor jumps into action. It checks if the card is valid, confirms there’s enough money or credit, talks to the customer’s bank, and makes sure the transaction is approved. Then, it helps move the funds to your merchant or bank accounts.
Most payment processors also offer helpful services like:
Sometimes, the same company handles all three roles — gateway, processor, and merchant account (like Stripe or SecureGlobalPay). But it’s still helpful to know what each piece does separately.
Let’s walk through what actually happens when a customer makes an online purchase. These different parts — the payment gateway, processor, and merchant account — work together behind the scenes to make sure everything runs smoothly.
Here’s a step-by-step look at how it all goes down:
Looking for an all-in-one payment solution that includes a merchant account, a payment gateway, and a payment processor? SecureGlobalPay has you covered.
Whether you’re running a brick-and-mortar shop, selling online, or operating in a high-risk industry, we have everything you need to start accepting payments quickly and securely.
Here’s what you get with SecureGlobalPay:
No confusing setups. No unnecessary fees. Just a reliable, flexible way to accept payments and grow your business.
Yes — if you’re accepting online card payments the traditional way, you typically need both.
That said, many modern providers (like Square or SecureGlobalPay) bundle both into one service, so you don’t always have to set them up separately.
Yes, but only if you use a payment aggregator. Companies like PayPal or Stripe allow you to accept payments using their merchant account. It’s convenient for small businesses or those just starting out. However, bigger businesses prefer a dedicated merchant account for more control and better rates.
Yes! Some payment gateways are flexible enough to work with multiple merchant accounts. This can be really helpful if you run several businesses or process high transaction volumes. You’ll just need to make sure your gateway provider supports this setup — SecureGlobalPay does, but many others do not.