A payment gateway and a payment processor are separate components of the payment processing system. A payment gateway is an internet service that allows payments for e-commerce transactions, whereas a payment processor is a corporation that handles credit card payments on merchants’ behalf. The payment gateway provides a secure connection between the merchant’s website and the customer’s bank account or credit card. It verifies the customer’s details and confirms the transaction’s validity before it is processed. The payment gateway additionally encrypts important data to prevent unauthorized access.