Who does what in a single transaction
A card-not-present sale passes through several hands in about two seconds. Each participant has one job.
Gateway
Captures the payment details, tokenizes them, screens for fraud and forwards the authorization request.
Processor
Routes the request through the card networks to the customer's issuing bank and returns the response.
Issuing bank
The customer's bank, which approves or declines based on funds, limits and its own risk rules.
Acquiring bank
Holds your merchant account, underwrites your business and settles funds into your bank account.
Why the distinction matters in a proposal
A proposal can look competitive on the processing side while the gateway does not support your cart, or offer a gateway you like attached to a processor that is a poor match for your risk profile or ticket size.
Asking which company provides the gateway, which provides the processing, and which bank holds the merchant account tells you who to call when something breaks — and where the cost actually sits.
What to compare side by side
Compare structures and capabilities rather than a single advertised number.
Pricing structure
Interchange plus, flat rate or tiered — and how your card mix behaves under each.
Integration fit
Your specific website platform, booking tool, invoicing and accounting software.
Card-not-present features
Card-on-file, recurring billing, partial captures and refund handling.
Risk and underwriting
Whether your industry, chargeback history and average ticket fit that acquirer's appetite.
Reconciliation
How online and in-person activity report together and tie to your deposits.
Ongoing support
Who owns the relationship after installation, and whether accounts are reviewed periodically.
A simple way to evaluate
Ask each company to name the gateway, the processor and the acquiring bank in writing, then compare the same six points above across proposals. Differences become obvious quickly.
If you would like an outside read, BSV Solution reviews your current statement and tender mix and explains what each layer is doing in your setup. Placement depends on your business profile and remains subject to underwriting approval.
Frequently asked questions
Can a company be both the gateway and the processor?
Yes. Some providers own both layers and sell them as one product. Others bundle a third-party gateway with their processing, which is worth clarifying up front.
Do I need a gateway if I only sell in person?
Often no, because the terminal or POS handles capture. You need one as soon as you invoice, sell online, store cards on file or key in phone orders.
Which layer causes most declines?
Declines are issued by the customer's issuing bank. The gateway and processor report the reason, and reviewing those reason codes usually points to the fix.
Who handles chargebacks?
Disputes originate with the issuing bank and reach you through the processor or acquirer. The gateway typically holds the transaction records and evidence you need to respond.
Want a second opinion on your setup?
Tell us how you take payments today and a BSV Solution specialist will walk through the options with you. Eligibility and processor selection are reviewed individually, subject to underwriting approval.