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I was asking a local bank about the possibility of transferring money to my account there upon publishing a paid app on play store. The reply was that they have their own payment gateway that deducts a percentage of the profits besides monthly and yearly charges.

My first question is what exactly is a payment gateway? (The information written on google about this is very confusing and very broad that after hours of research I still do not know what exactly is the benefit of a gateway.)

My second question is do all banks around the world impose this "gateway"deduction?

I always thought that money is transferred directly from google to the concerned developer's bank account without the concept of gateway. Please correct me if am wrong.

Thank you!

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Usually when you take payments online you forward the user to a page on another site to handle the payment.

That site is the payment gateway. They expect compensation for handling the actual transaction usually in terms of a percentage of the amount or a recurring fee.

Using a gateway like that involves setting up tokens during transactions and letting that site verify the transaction to your server directly,etc. It's fiddly but less likely to go horribly wrong (as in leaking users' account information getting sued and losing your business over it) than trying to handle those things yourself.

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