What is a Payment Gateway?

Definition: A payment gateway is the technology that securely transfers payment data from the checkout page to the payment processor and returns the result: approved or declined.

What a gateway does:

Encrypts and tokenizes card or account details.
Routes the authorization request to the acquirer or payment network.
Runs security steps such as 3-D Secure authentication.
Returns the payment status to the platform in real time.

Gateway vs PSP: a gateway is the technical channel for a transaction. A PSP bundles a gateway with acquiring, fraud tools, reporting and several payment methods.

In iGaming: the platform connects to gateways and PSPs through APIs, so deposits and payouts update the player wallet automatically.

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Related Terms

Source of Funds / Source of Wealth

Source of funds (SoF) is the origin of the money a player uses for deposits. Source of wealth (SoW) is how the player built up their overall wealth.

Customer Due Diligence (CDD / EDD)

Customer due diligence (CDD) is the set of checks an operator carries out to know who the player is and assess their risk level. Enhanced due diligence (EDD) is a deeper level of checks for higher-risk cases.

Transaction Monitoring

Transaction monitoring is the automated review of player payments and betting activity against rules and thresholds to detect activity that needs a closer look, such as possible money laundering or fraud.

Open Banking

Open banking is a way of sharing bank data and starting payments through secure bank APIs, with the account holder’s consent. In iGaming it is used for account-to-account (A2A) deposits and payouts.

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