Payment gateway
A payment gateway is a software and hardware complex that acts as an intermediary between an online store, an acquiring bank and payment systems when accepting online payments. It securely transmits encrypted transaction data from the site to the bank and returns an answer about the payment result.
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What is a payment gateway in simple words
A payment gateway is a technological intermediary between your online store, a bank and a payment system. It accepts payment data, encrypts it, transmits it to the bank for processing and returns the result — whether the operation is approved or not.
Imagine that you pay for a purchase on a website. You enter your card data, click “Pay” — and within a few seconds you see the receipt. During these seconds a complex process takes place: the payment gateway receives the data, checks it, encrypts it, sends it to the bank, waits for the answer and returns it to you. All of this without your participation and in real time.
Read about working with online payments in the article Cashless payments.
How a payment gateway works
- The client makes a purchase on the online store website and fills in the payment form (card number, expiry date, CVC).
- The data is transferred to the payment gateway in encrypted form through a secure protocol (HTTPS).
- The gateway checks the data for correctness and signs of fraud.
- The gateway sends a request to the acquiring bank or payment system.
- The bank processes the transaction: checks the availability of funds, conducts anti-fraud checks.
- The bank returns the answer to the gateway: successful or an error with a code (insufficient funds, card blocked, etc.).
- The gateway returns the result to the online store.
- The store displays the result to the client.
Types of payment gateways
- Hosted: The client is redirected to the provider's page for payment (PayPal, Yandex.Kassa). Simple integration, security on the provider's side, but branding is limited.
- API gateways: Payment happens directly on the site, and card data does not leave the store page. Full control over the interface, more complex integration.
- Direct integration with a bank: The store integrates directly with the acquiring bank. The most complex method, but with minimal commissions.
- Payment aggregators: Connect several payment methods at once through one provider (YooKassa, Robokassa, PayU).
Read about integrations in the article API gateway.
Popular payment gateways in Russia
- YooKassa (formerly Yandex.Kassa): A popular aggregator that supports all popular payment methods.
- Robokassa: One of the oldest Russian aggregators.
- PayU: An international aggregator with a presence in Russia.
- CloudPayments: A modern solution with an emphasis on API and security.
- Sberbank acquiring: Direct integration with Sberbank.
Payment gateway security
- Data encryption: All data is transmitted over the HTTPS protocol using TLS.
- Tokenization: The card number is replaced with a token that has no value for hackers.
- PCI DSS: Gateways must comply with the payment data security standard.
- 3D Secure: Additional authentication (an SMS code or application code).
Read about security standards in the article PCI DSS.
Advantages and disadvantages
Advantages:
- Fast payment acceptance
- Support for many payment methods
- High level of security
- Ready-made infrastructure
Disadvantages:
- Transaction commissions (usually 1.5-4%)
- Dependence on the provider (if it goes down, payments are unavailable)
- Possible delays in payouts
Read about choosing payment solutions in the article Electronic document management (EDM).
Frequently asked questions
What is a payment gateway in simple words?
A payment gateway is an intermediary between an online store and a bank. It accepts card data, encrypts it, transmits it to the bank for processing and returns the answer. Without it, online payment would be impossible. Read about payments in the article Cashless payments.
How does a payment gateway work?
The client enters card data → the gateway encrypts the data and sends it to the bank → the bank checks the availability of funds and conducts an anti-fraud check → returns the answer → the gateway passes the answer to the store → the client sees the result. The whole process takes a few seconds. Read about security in the article PCI DSS.
Which payment gateways are popular in Russia?
YooKassa (Yandex.Kassa), Robokassa, CloudPayments, PayU, Sberbank acquiring. The choice depends on the volume of payments, payment methods, the commission and the required level of integration. Read about choosing in the article Fintech.
How does a payment gateway differ from an API gateway?
A payment gateway is a specialized service for processing payments. An API gateway is a common “gatekeeper” for all requests to microservices. A payment gateway can be considered as one of the services that hides behind an API gateway. Read about API gateways in the article API gateway.
What commissions do payment gateways have?
Usually 1.5-4% of the transaction amount plus a fixed fee (for example, 5-10 rubles). Aggregators have higher commissions, but easier connection. With direct integration with a bank the commissions are lower, but integration is more complex. Read about commissions in the article Cashless payments.
Other terms in «Fintech and Public Finance»
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