Payment gateway and acquirer

A payment gateway is the software layer that takes card details safely and talks to the card networks. An acquirer is the bank or payment institution that holds your merchant account and pays the money out to you. Some providers are both, which is why the distinction gets blurred in sales conversations - and it matters most when something goes wrong, because the two have different jobs.

In practice

A gateway is the software layer that takes the card details safely and talks to the networks. An acquirer is the bank or payment institution that holds your merchant account and pays the money out. Some providers are both, which is why the distinction gets blurred in sales conversations.

It matters when something goes wrong, because the two have different jobs: a declined payment is usually a gateway or issuer question, while a missing payout is almost always an acquirer one. Knowing which to call saves a day.

It also matters when comparing quotes. A bundled rate from a provider that does both is not comparable to a gateway fee plus an acquiring rate quoted separately unless you add them up.

Also called: merchant account, acquirer.

Questions people ask about payment gateway and acquirer

Who do I call when a payment fails?

A declined payment is usually a gateway or card issuer question. A missing payout is almost always an acquirer one. Knowing which of the two you are dealing with saves a day of being passed between support desks, and it is worth writing both numbers down before you need them.

Is a bundled payment rate cheaper?

It is not comparable unless you do the arithmetic. A single rate from a provider that is both gateway and acquirer has to be compared against a gateway fee plus an acquiring rate added together, along with any monthly or terminal charges on either side.

Do I need a merchant account?

You need somewhere for the money to land, which is what a merchant account is. Many modern providers include it, which is simpler to set up and means the relationship, the settlement schedule and the reserve terms all sit with one company rather than two.