Glossary · ecommerce
What is Payment gateway?
A payment gateway is the service that sits between a website's checkout and the banks, securely taking a customer's card or wallet details, getting the payment approved and sending the money to the merchant's account after deducting a fee. It handles the sensitive card data so the website itself does not have to store it. Setting one up usually means applying for a merchant account with business documents, integrating the gateway with the shop platform, and testing refunds and failed payments as well as successful ones. Fees, settlement times and supported payment methods vary by provider.
What does Payment gateway mean for a business in Pakistan?
International gateways such as Stripe and PayPal do not offer merchant accounts to businesses based in Pakistan, so local stores use bank gateways, JazzCash and Easypaisa merchant accounts, or local aggregators. Approval usually needs an NTN, a business bank account and a working website with clear refund and contact pages, which is worth preparing before launch.
A worked example
An Islamabad skincare brand launches its store with cash on delivery only. After three months it adds a local gateway supporting cards, JazzCash and Easypaisa. Hypothetically, if 30 of its 200 monthly orders move to prepaid, those 30 no longer risk being refused at the door, and the courier no longer has cash to remit for them.
Terms that go with this one
These come up in the same conversations and are worth reading together.
- Checkoutorder place karne ka pageCheckout is the final part of an online purchase, from the moment someone views their cart to the order confirmation: entering contact details and a…
- Cash on delivery (COD)CODCash on delivery is a payment method where the customer pays the courier in cash when the order arrives, and the courier later sends that money to…
- SSL certificateSSL / httpsAn SSL certificate, more precisely a TLS certificate, is a small file installed on a web server that lets browsers connect over an encrypted https…
- Cart abandonmentcart chhor denaCart abandonment is when a shopper adds products to their cart, sometimes starts the checkout, and then leaves without placing the order. The cart…
- Conversion rateconversion rateConversion rate is the share of people who completed the action, out of the people who had a real chance to complete it, written as a percentage. The…
Payment gateway — quick answers
What does Payment gateway mean?
A payment gateway is the service that sits between a website's checkout and the banks, securely taking a customer's card or wallet details, getting the payment approved and sending the money to the merchant's account after deducting a fee. It handles the sensitive card data so the website itself does not have to store it.
Payment gateway ko Urdu mein kya kehte hain?
پیمنٹ گیٹ وے — though in practice almost everyone in Pakistan says "online payment system". International gateways such as Stripe and PayPal do not offer merchant accounts to businesses based in Pakistan, so local stores use bank gateways, JazzCash and Easypaisa merchant accounts, or local aggregators.
Why does Payment gateway matter for a business in Pakistan?
International gateways such as Stripe and PayPal do not offer merchant accounts to businesses based in Pakistan, so local stores use bank gateways, JazzCash and Easypaisa merchant accounts, or local aggregators. Approval usually needs an NTN, a business bank account and a working website with clear refund and contact pages, which is worth preparing before launch.
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