Guides
Payment gateway vs processor vs PSP vs acquirer: who does what in a payment
A payment gateway captures payment data at checkout and sends it on securely. A payment processor runs the technical messaging between the merchant side, the card schemes and the issuing bank. An acquirer is the licensed institution that holds the merchant contract and settles the money. A PSP bundles some or all of these roles into one contract and one integration.
What is the difference between a payment gateway and a payment processor?
The gateway is the front door: it collects card or wallet details from your website or app, encrypts or tokenises them and forwards an authorisation request. The processor is the engine room: it formats that request for the card scheme, routes it to the issuer, returns the answer and later prepares clearing files.
Many providers sell both together, which is why the two terms are often used as synonyms. The distinction matters when you compare offers: a gateway-only contract still needs a processor and an acquirer behind it.
| Role | Main job | Holds a licence to settle funds? | Who usually contracts it |
|---|---|---|---|
| Payment gateway | Captures and transmits payment data, tokenisation, checkout integration | No, a technical service | Merchant |
| Payment processor | Routes authorisation, clearing and settlement messages between parties | Not by itself | Acquirer, issuer or PSP |
| Acquirer (acquiring bank) | Signs the merchant, carries merchant risk, settles card funds | Yes, a bank or licensed payment or e-money institution | Merchant, directly or through a PSP |
| Payment service provider (PSP) | Bundles gateway, methods and often acquiring in one contract | Often yes, when it also acquires | Merchant |
| Payment orchestration platform | Connects several PSPs and acquirers through one API, routes and retries | No, it does not hold funds | Merchant |
What is acquiring and what does an acquirer do?
Acquiring is the service of accepting card payments on behalf of a merchant. The acquirer underwrites the business, opens a merchant account, sends authorisation requests to the card scheme, receives the funds from the issuer through the scheme and pays them out to the merchant net of fees.
Because the acquirer is liable to Visa and Mastercard for its merchants, it monitors chargeback and fraud ratios, can hold reserves and can close accounts. In the EU, acquiring of payment transactions is a regulated payment service under PSD2, so only banks and authorised payment or e-money institutions may provide it.
How do the gateway, processor and acquirer work together?
Authorisation takes a few seconds; clearing and settlement follow over the next business days.
- Checkout The customer enters card details or uses a wallet; the gateway captures and tokenises them.
- Authorisation request The gateway sends the request to the acquirer's processor, which forwards it to the card scheme.
- Issuer decision The scheme routes the request to the issuing bank, which checks funds, fraud signals and 3D Secure, then approves or declines.
- Response The answer travels back through the scheme, processor and gateway to the checkout.
- Capture and clearing The merchant captures the authorised amount and the processor submits it for clearing.
- Settlement The issuer pays the scheme, the scheme pays the acquirer, and the acquirer pays the merchant minus fees.
Payment service provider vs payment gateway: which do you need?
A PSP gives you one contract that usually covers the gateway, local payment methods and acquiring, often under its own merchant account. It is the fastest way to start, but you depend on one provider's approval rates, pricing and risk appetite.
A separate gateway plus a direct acquirer gives more control over pricing and data, but takes more contracts, more integration work and usually a larger volume to qualify. Larger merchants often combine both: a PSP for local methods and one or more direct acquirers for cards.
- Start with a PSP if you need many payment methods quickly and volume is still small.
- Add a direct acquirer when card volume in one market is large enough to negotiate interchange++ pricing.
- Use more than one provider when one decline or outage would stop your sales.
Payment gateway vs merchant account: what is the difference?
A merchant account is the account at the acquirer where card proceeds are recorded before payout to your bank account. A gateway is the technology that sends payments into it. You can have a gateway without your own merchant account when a PSP aggregates you under its account, which is the payment facilitator model.
Where does payment orchestration fit?
Once a business uses several PSPs or acquirers, each one has its own API, dashboard and reports. A payment orchestration layer sits above them: one integration, routing rules that send each payment to the provider that fits it, retries on another provider after a soft decline, and one view of results.
OrsunPay is a payment orchestration platform that connects you to licensed payment providers; it is not a payment institution, acquirer or merchant of record and does not hold or transmit funds. You keep your own contracts with licensed providers (for example Stripe, Adyen or Worldpay), and OrsunPay adds smart routing, retries, hosted checkout and payment links on top. For pricing see the pricing page.
This guide is general information, not legal or financial advice. Licensing requirements depend on your business model and jurisdiction.
Frequently asked questions
Is a payment gateway the same as a payment processor?
No. The gateway captures and transmits payment data from the checkout; the processor handles the messaging with card schemes and issuers. Many providers sell both in one product, so the terms are often mixed up.
Is a PSP an acquirer?
Sometimes. Many PSPs hold their own acquiring licence or partner with acquirers and aggregate merchants under one account. Others only provide the gateway and payment methods and connect you to a separate acquirer.
Do I need a merchant account to accept card payments?
You need an acquirer relationship, either your own merchant account or a PSP that aggregates you as a sub-merchant. Your own account usually means more control and negotiated pricing, but stricter onboarding.
Who decides whether a card payment is approved?
The issuing bank makes the decision. The gateway, processor and acquirer pass the request and the answer along, although an acquirer or a provider's fraud rules can also block a payment.
Does a payment orchestration platform replace a PSP?
No. Orchestration connects the PSPs and acquirers you already contract; the licensed providers still process and settle the money. It adds routing, retries and one integration across them.