When it comes to payments, there are two key players: payment gateways and payment processors. So, what’s the difference between a payment gateway and a payment processor?
A payment gateway is a service that allows businesses to accept online payments. Payment gateways encrypt sensitive information, such as credit card numbers, to ensure that information passes securely between the customer and the merchant. They also handle fraud prevention and management for merchants. Some payment gateway in Malaysia includes Razer Merchant Services, Billplz, and iPay88
A payment processor is a company that processes credit card transactions on behalf of merchants. Payment processors authorize credit card payments and deposit funds into merchants’ bank accounts. They also provide chargeback protection for merchants in case of fraudulent or disputed transactions.
Payment Gateway vs Payment Processor
A payment gateway is a service that allows businesses to accept online payments. A payment processor is a company that processes credit and debit card transactions on behalf of businesses.
Payment gateways and processors are usually provided by the same company, but there are some exceptions. For example, PayPal is a popular payment processor, but it doesn’t have its own gateway. That means businesses that use PayPal have to use a third-party gateway to accept online payments.
Payment gateways allow businesses to accept online payments by connecting to the customer’s bank or credit card issuer.
Payment processors connect businesses with the customer’s bank or credit card issuer in order to process the transaction. The payment gateway then verifies that the information is correct and approves the transaction. After the transaction is approved, the funds are transferred from the customer’s account to the merchant’s account.
Businesses that are best suited for a payment gateway are those that need to accept online payments but do not process large volumes of transactions. Payment gateways provide businesses with an easy way to accept online payments, without having to set up their own payment processing system. This is ideal for small businesses that want to take advantage of online sales but don’t have the volume of transactions to justify setting up their own payment processing system.
Businesses that are best suited for a payment processor are those that process large volumes of transactions but do not need to accept online payments. Payment processors provide businesses with a way to process large volumes of transactions quickly and efficiently. This is ideal for businesses that have a high volume of sales but don’t need to accept online payments.
When choosing a payment gateway or payment processor, businesses should consider their needs and budget. If a business needs to accept online payments, then a payment gateway would be the better choice. If a business processes large volumes of transactions, then a payment processor would be the better choice. For businesses that need to do both, there are companies that offer both services. The important thing is to shop around and find the best fit for the business.
Conclusion
A payment gateway is a service that allows businesses to accept online payments such as Razer Merchant Services. A payment processor is a company that handles the transaction between the customer and the merchant. Payment gateways and processors work together to process credit card transactions. Businesses that are best suited for a payment gateway are those that need to accept online payments on their website or mobile app. Businesses that are best suited for a payment processor are those that have physical locations where they can accept credit cards, such as retail stores or restaurants. To choose the right payment gateway or processor for your business, you need to consider your business’s needs and which type of service will best meet those needs. If you’re not sure which one is right for you, contact a few different providers and ask about their services and fees.
Razer Merchant Services
Razer Merchant Services is the leading merchant service provider in Southeast Asia that connects international brands to consumers across the region since 2005. Starting back in 1998 as a computer gaming hardware maker of the famous gaming keyboard and mouse, Razer expanded its business into the financial service market to service its gaming clients first before it open its door to the main market. Today, Razer establish itself in Southeast Asia’s market through its full range of alternative payment methods such as online banking, cash at 7-Eleven (Razer Cash), e-wallet, and more. Razer’s single API serves as a connector for clients to reach all consumers across Southeast Asia.
All Razer Merchant Services have complied with the highest global data security standard – Payment Card Industry: Data Security Standard (PCI DSS) Service Provider Level 1, and also, the Malaysian Financial Services Act 2013. Razer has also achieved one of the lowest dispute transaction ratios in the online payment industry.
View List of Services by Razer Merchant Services on ONJOB
