What is Payment Gateway?
A payment gateway is a service that lets a website or app accept card, wallet or bank payments online and passes the money to the seller's account.
Updated
Meaning
English
A payment gateway is a service that lets a website or app accept card, wallet or bank payments online and passes the money to the seller's account.
Roman Urdu
Payment gateway woh service hai jis se website ya app online card, wallet ya bank payment le sakti hai aur paise bechne wale ke account me pohanchte hain.
Also called online payment gateway, PSP, payment service provider, checkout.
Example
An online pharmacy adds a payment gateway to its checkout. Customers can now pay by card or wallet; the gateway takes a fee per transaction and settles the rest to the pharmacy's bank account every few days.
How it works
In Pakistan, gateways are offered by banks, wallet companies and payment service providers licensed by the State Bank. Setting one up usually needs a registered business, a business bank account and documents, and the gateway charges a percentage or fixed fee per payment.
Before choosing, compare fees, settlement time, which methods are supported (cards, wallets, Raast), the checkout experience on mobile, and how refunds and disputes work. Offering online payment alongside COD reduces refused parcels, because customers who pay up front rarely refuse delivery.
In Nafaa
For online orders, Nafaa can create a payment link for the full amount or an advance through a payment account the shop connects. Links expire after three days and can be shared on WhatsApp.
Related terms
- COD (Cash on Delivery)
Cash on delivery means the customer pays when the order is delivered, not when it is placed.
- Chargeback
A chargeback is when a card payment is reversed by the customer's bank after the customer disputes it, and the money is taken back from the merchant.
- Raast
Raast is the State Bank of Pakistan's instant payment system for real-time transfers between bank and wallet accounts, using a Raast ID such as a mobile number.