Which term describes software and hardware used to connect merchants with payment networks?

The term that accurately describes software and hardware used to connect merchants with payment networks is the Electronic Payment Gateway. This solution acts as an intermediary between the merchant's website or point-of-sale system and the payment processing networks. The gateway facilitates the transaction process by securely transmitting customer payment information to the processor and then returning transaction responses back to the merchant.

In essence, the Electronic Payment Gateway is responsible for authorizing payments and ensuring that all data transferred is secure, which is crucial for maintaining consumer trust and complying with regulations regarding payment data security. It serves as the bridge that allows merchants to accept various forms of payment, including credit cards, debit cards, and digital wallets, effectively integrating with the broader payment processing ecosystem.

The other terms provided do not encapsulate the complete functionality of the gateway. An Electronic Payment Platform may refer more generally to a collection of tools for managing electronic payments but does not emphasize the connection aspect specifically. A Payment Processing Network refers to the actual network that processes transactions but lacks the hardware and software components that the gateway entails. Lastly, a Merchant Funds Transfer System typically focuses on the transfer of funds to the merchant after a transaction but does not cover the initial transaction authorization and communication process that a gateway handles.