# Payment Gateway vs Payment Processor: What's the Actual Difference?

DevFeed: [Payment Gateway vs Payment Processor: What's the Actual Difference?](<https://devfeed.tech/articles/payment-gateway-vs-payment-processor-what-s-the-actual-difference-10243.md>)

Original publisher: [Read original article](<https://dodopayments.com/blogs/payment-gateway-vs-payment-processor/>)

Author: Aarthi Poonia

Published: 2026-06-06T00:00:00Z

Content type: article

Language: en

Sources: [Dodo Payments Blog](<https://devfeed.tech/sources/dodo-payments-blog.md>)

Topics: [Software as a service](<https://devfeed.tech/topics/saas.md>), [stripe](<https://devfeed.tech/topics/stripe.md>), [API](<https://devfeed.tech/topics/api.md>), [tokenization](<https://devfeed.tech/topics/tokenization.md>), [dashboards](<https://devfeed.tech/topics/dashboards.md>)

Tags: [api](<https://devfeed.tech/tags/api.md>), [authorization](<https://devfeed.tech/tags/authorization.md>), [chargebacks](<https://devfeed.tech/tags/chargebacks.md>), [checkout](<https://devfeed.tech/tags/checkout.md>), [gateway](<https://devfeed.tech/tags/gateway.md>), [glossary](<https://devfeed.tech/tags/glossary.md>), [payments](<https://devfeed.tech/tags/payments.md>), [processor](<https://devfeed.tech/tags/processor.md>), [saas](<https://devfeed.tech/tags/saas.md>), [stripe](<https://devfeed.tech/tags/stripe.md>), [tokenization](<https://devfeed.tech/tags/tokenization.md>)

## AI overview

This guide explains the historical distinction between payment gateways and payment processors. Gateways handle checkout, encryption, tokenization, and routing, while processors handle authorization, settlement, funding, chargebacks, and refunds. Modern providers such as Stripe, PayPal, Square, and Adyen commonly combine both roles into one platform.

## Source excerpt

Payment gateway vs payment processor explained. Where the line is drawn, why most modern providers do both, and what SaaS founders should actually care about.