What Is a Payment Gateway and How Does It Work? @square
What Is a Payment Gateway and How Does It Work?  @square
Uploaded August 2026 | Updated September 2026, 2 weeks ago
Most merchants think they need a separate payment gateway to accept credit cards, but that's not always the case. In this video, we explain what a payment gateway is and how it works.

Learn how transactions flow behind the scenes, from authorization and fraud detection to the final settlement of funds, plus how payment gateways enhance security through encryption and support PCI compliance.

Plus, we explain how an end-to-end payment processor like Square can provide payment processing without requiring you to set up a separate payment gateway or merchant account, simplifying how you manage payment processing and deposits. Whether you're building an online store or taking payments in person, this guide covers what you need to know about payment gateways.

Read more about payment gateways and business tools ➡️ squareup.com/us/en/the-bottom-line/managing-your-finances/payment-gateway

#paymentgateway #paymentprocessing #merchantaccount #pcicompliance #ecommerce #smallbusiness #businesstips #square

0:00 Intro
0:22 What is a Payment Gateway?
0:49 How a Payment Gateway Works
1:10 How a Card Payment Works
1:49 Two Types of Payment Gateways
1:52 Hosted Gateways
2:11 Self-Hosted Gateways
2:30 Merchant Accounts, Processors and Gateways
2:57 Security and Compliance

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What Is a Payment Gateway and How Does It Work?

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