Find out more about Payment Gateway
What is Payment Gateway?
A payment gateway is a software application that functions as a channel between an e-commerce vendor’s website and the bank that processes a buyer’s credit card payment. A payment gateway can also process payments using methods such as debit cards and eCheck (ACH) payments. The main work of the payment gateway is to securely transmit the buyer’s sensitive credit/debit card and bank account data to the issuing bank and other entities involved in the transaction. Start by checking our leader PayPal Payments Pro, and other recommended solutions in this category.
Payment gateways send transaction data to acquiring banks and get replies from issuing banks about whether a transaction is accepted or declined. In short, payment gateways assist in effective communication between banks.
Top 11 Most Popular Payment Gateway
How To Choose The Best Payment Gateway
Payment gateway platforms make it easy to make payments for online transactions. As there are a number of good gateway programs on the internet, you may be confused about which one to choose. This buyer’s guide helps you out by providing a list of features and factors you should consider while doing educated comparisons to select a suitable payment gateway for your needs.
- E-commerce stores use a payment gateway to receive payments from customers who buy their goods online.
- Small and large businesses that have an online presence and perform sales on the internet use a gateway for secure payment services.
- Individuals use payment gateway tools for online purchases and transactions.
What are Examples of Payment Gateway Software?
- PayPal Payments: PayPal is a quick and secure way to send and receive money, make an online payment, and set up a merchant account. It also offers business solutions for users to get paid securely on their website, mobile apps, or directly through their email address.
- Amazon Payments: A fast, easy, and safe way to accept payments online. Companies can enable Amazon customers to simply login and pay using their Amazon credentials.
- Stripe Subscriptions: Stripe powers any subscription model with robust features to reduce churn. You can build and manage all aspects of your recurring billing with Stripe’s APIs.
- Braintree: A simple, robust way to accept payments and enable commerce from anywhere — in your mobile app or online. Braintree offers a security-driven, full-stack payments platform for small business and large companies that enables processing and gateway in one system, plus loads of other features.
- Authorize.Net: Enables e-commerce merchants to accept online payments via credit card and e-check. Its additional services do the job of a full-time employee and help you store data securely, avoid fraud and more.
Types of Payment Gateway Software
Hosted payment gateways
These take a customer off from your website’s checkout page. After a user clicks on the ‘pay now’ button on your website, they will be sent to the payment service provider page. Here the user needs to fill their payment details. After the payment, they will be redirected back to your website to complete the checkout process.
Pro / self hosted payment gateways
For this gateway, you need to ask the payment details from users at your own website. After getting the details, you need to send the gathered data to the payment gateway’s URL. Some gateways need the info in a specific format while others need a hash key or a specific security key.
API / non hosted payment gateways
This gateway allows customers to enter their information directly on the merchant’s checkout page and processes payments using their APIs or HTTPS queries.
Local bank integration
These are similar to hosted payment gateways. The user is redirected to the payment gateway’s website where they need to fill the payment and contact details. After making the payment they are redirected back to the e-commerce website and notification data is also sent with redirection.
Platform based payment gateway solutions
This type offers a platform to e-commerce merchants to sell goods directly from their server. Merchants need to create subscription or products in the provided platform and users are redirected via checkout button to this platform.
Key Features of Payment Gateway Software
Some payment gateways offer multi-currency and international payments as well as an interface supporting multiple languages. You need to check where there are added fees for international and multi-currency payments and whether you need to set up a merchant account in a particular country.
Data security is essential for safe online payments. Make sure the gateway is level 1 compliant with PCI DSS and offers security features such as tokenization. Most gateways also offer fraud protection tools to ensure safe transactions with new parties.
Good quality payment gateways offer reliable support through multiple channels. Do some research and ensure you are able to easily access the support agents anytime. Find out if you need to pay extra for support. Read online reviews about the quality of support offered by various gateways.
Payment gateways usually accept MasterCard, Visa, American Express, and PayPal for online payments. For international payments, check whether the gateway accepts local credit cards beyond MasterCard, Visa, and Amex. Always make sure you check what the exact fees are. For example, you can examine our comparison of Stripe fees vs Paypal fees vs Adyen fees to get a better understanting of what’s the standard in the industry.
Benefits of Payment Gateway Software
Our payment gateway reviews show that you can use one to do the following:
- Accept online payments for your e-commerce business.
- Accept multiple payment methods and currencies.
- Process payments safely by ensuring the security of payment details.
- Avoid unauthorized payments with fraud protection safeguards.
- Quickly handle customer refunds and returns.
Mobile apps are replacing countertop checkout
Consumers are using their mobile phones to access cloud apps to checkout inside the shop and to pay for things before they step inside the store. Savvy brands like Starbucks, Taco Bell, Domino’s Pizza, Target, and Kohl are utilizing this trend to offer mobile payment apps and have seen a boom in their sales.
Faster and safer payments
Many countries have implemented systems to facilitate faster payments. Beyond speed, payment gateways and apps are becoming more efficient and flexible. They are ensuring their systems meet security, compliance, and risk management regulations for safe online transactions.
Contextualized commerce is driving payments innovation
Payments are enabling the different digital experiences consumers engage in every day. Consumers spend many hours on the internet every day for different tasks. Companies are tracking their online behavior and habits to influence and trigger purchases. They are payment-enabling impulse purchases in innovative ways.
Chargebacks and fraud
Payment gateways need protection against data theft and fraudulent misuse to ensure secure transactions. They need to use fraud-monitoring tools like purchase tracking, validation services, and risk management to detect fraud before it happens. Chargebacks are expensive and can damage the reputation of a gateway. Therefore, they need to use effective customer service practices to reduce or eliminate chargebacks.
It can be difficult for some gateways to integrate with other platforms which can result in processing delays, expensive fees, and lost transactions. Payment gateways need to ensure smooth technical integration with other systems to offer easy and secure transactions.
International payments can be slow, expensive, and inefficient. Payment systems need to tackle this challenge and ensure fast and secure cross-border transactions and payments by managing the costs and risk more effectively.
There are a number of payment gateway providers on the internet. FinancesOnline.com provides reliable rankings for these gateways that enable you to do a comparison. Try a demo of your shortlisted gateways to select a suitable one for your needs.
List of Payment Gateway Software Companies
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Our Score Read More
FinancesOnline utilizes our innovative SmartScore™ approach to evaluate all the solutions in the Payment Gateway category to help you select the best possible software. It takes into consideration the following metrics: essential functionalities, collaboration features, customization, available integrations, ease of use, customer support, how secure a software is, support for mobile devices, ratings in media. Currently, PayPal Payments Pro is the leader in this category and is recommended by our experts. Following detailed research and analysis it received the best results among its competitors and we strongly suggest that you include it as one of the options for your company.
User Satisfaction Read More
A look at overall user satisfaction with the software in our Payment Gateway category based on our unique algorythm that analyzes customer reviews, comments and opinions across a broad range of social media sites in order to help you make an informed buying choice.
Pricing Read More
Each vendor in the Payment Gateway category will provide a different group of pricing packages for its app and every package will include a different set of elements. Below we list the general pricing for the cheapest package offered for each service. Please note that advanced features may cost extra.
Devices Supported Read More
An analysis of what kind of devices and operating systems are supported by the listed B2B solutions in the Payment Gateway category, including mobile platforms and web-based solutions.
Laguages Supported Read More
Check what languages and geographies are supported by the best B2B solutions in the Payment Gateway category, including apps aimed at international markets and prepared for multi-cultural teams of employees.
Pricing Model Read More
Examine what pricing models are supported by the vendors in the Payment Gateway category to check which one suits your business needs and expenses best. Keep in mind that specific software can support free or freemium accounts for you to try out first.
Customer Types Read More
A brief look at what kinds of clients a given B2B platform in the Payment Gateway category provides for, from small businesses and non-profits to big enterprises.
Deployment Read More
A summary of what kinds of product deployement are supported by each B2B vendor in the Payment Gateway category. Although most of modern SaaS services are cloud-hosted some services may offer an on-site deployment model as well.