Merchant Service Provider Vs Payment Gateway. A payment gateway is very similar to a payment processor in that it is a tool that transmits payments between the customer’s bank and yours. S quare (read our review)
As a rule, payment processors prefer not to market their. The terms “payment processors,” “merchant service provider” “merchant acquirer” and “payment services provider” all refer to companies that perform similar functions in the payment ecosystem. However, not all organizations recognize their role as a service provider, and this lack of awareness puts their business—and their customers’ businesses—at risk.
A payment aggregator can offer a payment gateway, but a payment gateway cannot offer a payment aggregator.
Finding the right service provider. A payment processor enters into a reselling agreement with a payment gateway or a merchant account provider so to offer their services directly to an online merchant. Our suggestion is to use a payment gateway that offers an aggregate merchant account as part of their service like stripe. The payment gateway then sends the authentication request to deduct the payment from the issuing bank and receives the authorization for it from the bank.