A Payment Gateway it is the first step in the payment process the Cardholder will come to and is a facility that allows a Merchant to take a payment where the Cardholder is not present. The Gateway will either authorise or decline the transaction based on the data entered and/or the settings of the Gateway, it will pass the approved transaction to the Merchant Account for settlement.
A Merchant Account is a facility used for moving funds also known as settling funds from the Cardholders Bank Account to the Merchant’s Bank Account. The Gateway communicates directly with the Merchant Account and the Merchant Account communicates directly with the Cardholder’s bank. The Gateway and Merchant are directly linked to a Merchant ID issued by the Acquirer; without this facility, no funds can be moved.