A Payment Gateway (sometimes referred to as an online credit card processor, internet merchant account, internet gateway, etc) is a tool that enables a merchant bank account to securely connect to a website in order to handle the behind-the-scenes credit card processing.

Therefore, Payment Gateway allows GiftTool to pass along a customer's credit card transaction request to your merchant bank account. The Payment Gateway is the actual processor that sends the request to the bank, and then returns the message (transaction approved, or declined) back to GiftTool. So the Merchant Gateway acts as the middle man between GiftTool and your bank, to coordinate the behind-the-scenes credit card processing.

You will need a Payment Gateway to process credit cards online with GiftTool.

Your Payment Gateway provider is the company handling the actual money collected from the card holder, which they deposit on a routine basis into your bank (minus their transaction fees). Your Payment Gateway will either setup an Internet Merchant Account on your behalf (providing all-in-one service), or will connect to your existing Internet Merchant Account provider.