October 22, 2020

Definition of Payment Gateway

The most important benefit of payment gateways is the security they provide to your eCommerce store, allowing customers to shop with confidence. When it comes to cyber-attacks, e-commerce is an extremely vulnerable industry due to the sensitive information exchanged on websites. In fact, 32.4% of all cyber-attacks are carried out on e-commerce sites. A payment gateway takes care of all security-related aspects of the transaction and ensures that funds reach their destination securely, with no leaks along the way. The gateway encrypts all data and sends it over SSL. Then it works with the payment processor to determine if the payment is legitimate. Payment gateway for online gaming  easily integrate with the most popular e-commerce platforms, such as Shopify, WooCommerce, BigCommerce Magneto.

Shopify, for example, integrates with over 100 payment gateways, including Stripe, PayPal, Authorize.Net, and 2checkout among others. They also have their own out-of-the-box payment system which is powered by Stripe, eliminating the hassle of requiring you to sign up for a third-party gateway. Amazon Payments is also a fantastic addition to your online store, as it automatically pulls payment and shipping information stored on Amazon, speeding up the checkout process and increasing your conversion rates. The advantage of selling online is that you don’t have to be present at your computer when sales are taking place. It all basically works on autopilot – but you already know that. The story is similar with payment gateways. They work around the clock and can process a customer’s payment regardless of what time they make the purchase.

At the base level, your payment gateway should accept debit card and credit card transactions. However, you might want to look for something more sophisticated that can support PayPal payments, as well as gift certificates and maybe other methods. Also check if your payment gateway supports “point of sale”. You may have the option of receiving a free card reader to accept payments on the go at events or in your store.

If you plan to sell to overseas customers, consider a gateway that supports and accepts foreign currencies. However, it should be noted that these transactions may cost you more than payments in your own country. Payment gateways can provide you with real-time reports. You can thus obtain information on the situation of your business up to the minute. It’s great when you want to see how one of your promotions turned out or what you can do to increase seasonal sales. But that’s just the tip of the iceberg; good reports are valuable in themselves!

The cost of using payment gateways

Unfortunately, the cost is the most complicated aspect of using a payment gateway. Basically there is no one price. Instead, you usually have to deal with a number of lower fees associated with different parts of how the payment gateway works. Most gateways offer discounts based on the volume of sales you get. We go into the topic of payment gateways in more depth in another article where we also list the top 5 payment gateways in the market. Check it out . Here is the list in case you are curious:

You may have missed