A technology service that processes online payment transactions by securely transmitting data between the merchant, customer's bank, and the acquiring bank.
A payment gateway acts as the intermediary between an online business and the payment processing network. When a customer pays online, the gateway encrypts card/UPI/wallet details, sends them to the acquiring bank, which routes to the issuing bank for authorization. Popular gateways in India include Razorpay, PayU, Cashfree, CCAvenue, and PhonePe Business. Key features include: multi-payment method support (cards, UPI, wallets, net banking), fraud detection, PCI DSS compliance, settlement reports, and refund management. Typical charges: 1.5-2.5% per transaction.
A customer pays ₹5,000 on an e-commerce site. The payment gateway (e.g., Razorpay) processes the payment: ₹5,000 × 2% = ₹100 gateway fee + GST. The merchant receives ₹4,900 (after fee) in their settlement, usually within 1-3 business days.
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The gateway is the front-end technology that captures and encrypts payment data (what the customer interacts with). The processor is the back-end system that handles the actual money movement between banks. In practice, companies like Razorpay and Stripe combine both roles.
If you accept online payments (website, app, or payment links), yes. For in-person payments, you need a POS terminal instead. Many modern invoicing tools like Laabam.One integrate payment gateways directly, allowing customers to pay invoices online with one click.
An instant real-time payment system developed by NPCI that enables peer-to-peer and merchant payments through a single mobile interface across all Indian banks.
An electronic fund transfer system in India that enables bank-to-bank transfers in batches, available 24/7 with near-instant settlement.
An instant interbank electronic fund transfer service in India available 24/7, enabling real-time money transfers up to ₹5 lakh through mobile, internet banking, or ATMs.
The process of comparing and matching a company's accounting records with its bank statement to identify and resolve any differences.
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