Payment Gateway
Payment gateways are the first step in the online payment process, and they have been critical in assisting e-commerce businesses and online payment providers in accepting online transactions more easily.
The best payment gateways act as an online payment terminal as well as a front-end processor for online and mobile sellers. They frequently offer bundled services such as payment acceptance, data reporting, and fraud management.
According to Insider Intelligence, as global retail e-commerce volume grows, the revenue that companies processing these payments can collect as fees will rise from $82 billion in 2018 to $138 billion in 2024.
Furthermore, as payment companies, merchant accounts, and consumers all shift to digital, gateways gain more clout. In the United States, e-commerce sales totaled $146.2 billion in the second quarter of 2019, accounting for nearly 11% of total retail sales.
Given this, it's natural for more gateways to want a piece of the action. However, as more companies enter this space, merchants will face difficult decisions. Which payment processor should you use? What are the inherent benefits and drawbacks of each?
To assist you in making your decision, we've compiled a list of the industry's leading payment companies below. Keep in mind that no single company or gateway has a monopoly on the market, and competition among these companies is fierce.
Frequently Asked Question
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How does a payment gateway work?
When a customer makes a purchase on a merchant's website, the payment gateway securely captures and encrypts the customer's payment information and sends it to the payment processor. The payment processor then verifies the payment details with the customer's bank or credit card issuer, and if approved, the payment is processed and the funds are transferred to the merchant's bank account.
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What types of payment methods can a payment gateway process?
A payment gateway can process a variety of payment methods, including credit cards, debit cards, bank transfers, e-wallets, and mobile payments.
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Is it safe to use a payment gateway?
Yes, payment gateways are designed to be secure and protect customer payment information. They use encryption and other security measures to ensure that payment data is not intercepted or compromised during the transaction process.
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How much does it cost to use a payment gateway?
The cost of using a payment gateway varies depending on the provider and the specific services and features required. Many payment gateway providers charge a per-transaction fee, which can range from a few cents to a few dollars per transaction. Other fees may apply, such as monthly subscription fees or setup fees.
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Can a payment gateway be integrated with my existing website or e-commerce platform?
Yes, most payment gateway providers offer integration options with popular e-commerce platforms and website builders. This allows merchants to seamlessly integrate the payment gateway into their existing website or online store, making it easy to process payments from customers.
