The Differences Between Payment Gateways & Payment Processors

If you’re looking for a payment gateway, there’s a good chance you’ll also need to use one. But what is the difference between a payment gateway and a payment processor? And why do these services come in handy? Let’s get into it.

What is a Payment Gateway?

Payment gateways are online payment companies that handle ecommerce credit or debit card transactions between a merchant and their customers. The payment gateway is integrated to the merchant website in order to process their customer’s credit/debit card payment.

What is a Payment Processor?

A payment processor is a system that facilitates communication between the bank that issues a customer’s credit or debit card and the seller (merchant’s) bank. It handles the technical aspects of payment processing on behalf of the acquiring bank.  The processor’s job is to verify and authorize the payment. They communicate with the payment gateway and the merchant’s bank.

What’s The Difference?

Payment processors execute the transaction by transmitting the card details between customer, issuing bank, and merchant bank.

A payment gateway is the service that securely transmits the online payment data to the processor. It is the equivalent to the point of sale terminal that you see in card present environments or brick and mortar stores.

Payment Gateway

The technology that encrypts and transmits payment details from the merchant’s customer to the payment processor. It also communicates the approval or decline back to the merchant or customer.

Payment Processor

They relay transaction data to and from the customer’s card issuing bank and the merchant’s acquiring bank.

Where does First Atlantic Commerce Fit In?

First Atlantic Commerce is a payment gateway that enables merchants to accept and process credit and debit card payments online. All of our merchants are integrated to our platform so we can process their online transactions.

Our platform is highly scalable to ensure smooth operation during peak hours, and we pride ourselves on our gateway service uptime.

Our powerful and secure payment platforms enable businesses across many industries and geographies to accept online credit and debit card payments. We can facilitate merchant account solutions via direct relationships between our clients and established acquiring banks across the Caribbean and Central America.

The security features offered with (or independently of) our international online payment solutions and merchant services ensure successful transactions for both companies and their customers, with minimal losses due to fraud. These security features of our international payment solutions include pre-authentication services, 3-D Secure 2 payer authentication, and other risk management solutions.  Kount is also available via our platform and helps you prevent fraud before it occurs.


In conclusion, payment gateways and processors are both important pieces of your business. They help you accept payments from customers and manage those transactions effectively. Want to learn more about our international credit card processing services? Our exceptional customer service representatives are waiting to help you. Contact us today to learn more about our online credit card processing services!

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