With the rise and change of technology and modernization, the modes of payments have also changed. Furthermore, due to digitalization, people have shifted their mode of payment from cash to cashless. The online modes of payment have made transactions more effortless and rapid. Moreover, payment gateway have reduced third-party dependencies. Payment gateway enable both brick-and-mortar and online businesses to provide secure credit card and digital wallet payment options to their customers. In addition, payment gateways are vital in helping organizations thrive as technology opens up new payment methods and marketplaces.
Besides, there is a tremendous rise in payment gateways because customers are driving demand for safe, hassle-free purchases. Because of the popularity of digital payment methods like PayPal, users or buyers are using more payment gateway methods.
What Is a Payment Gateway?
A payment gateway is software which encrypts the user's credit card details. Furthermore, encrypting the card details sends the information to the issuing bank for its approval. Hence, the outcome of this transaction is the deciding factor of whether or not a customer's purchase is approved. On the other hand, a payment gateway is not the same as a merchant account. However, the main difference between them is that a merchant account is required for a business or merchant to accept credit cards or digital wallet payments. Although some payment gateway providers provide a merchant account with their services, the majority of payment gateways are autonomous products.
How Does It Work?
A payment gateway is software to handle credit card or digital wallet payments. Furthermore, it can be installed on a website or POS system. When a consumer swipes their card or enters their payment details online, then the payment gateway encrypts the data and delivers it to the card's issuing bank. Moreover, the merchant then fulfills the order if the transaction is approved. Hence, the procedure usually takes only a few seconds. However, payment channels must be secure for customers to make a payment.
Therefore, we have evaluated over a dozen payment gateways based on payment kinds, cost, simplicity of use, integrations, support, and other factors. Here are a few of our favorites.
- Accept credit and debit cards and multi-currency payments in six different currencies.
- It accepts PayPal payments in 26 different currencies from over 200 different countries.
- Accept credit card payments via PayPal (the U.S. only)
- The payment gateway for eCommerce
- PCI compliance can be made easier with these options.
- Accepting payments over the phone with a virtual terminal
- 2.9% + $0.30 per transaction
PayPal is a well-known payment gateway that was created as a digital wallet in 1999. Furthermore, in the meantime, it has become one of the most multifaceted and prominent online modes of payment processors. Moreover, the amazing part of PayPal is that it gives its customers an option to pay with PayPal as well as any other payment mode. In addition, PayPal declared that they are providing their service as a payment option to customers that can increase checkout conversions up to 44%. Also, making PayPal a payment option is an easy task.
Therefore, the users have to create an account and add the "Pay by PayPal" option on the website to add PayPal. Hence, customers who want to make use of advanced payments and checkout features by PayPal must sign up for PayPal Payments Pro. Besides, this feature or plan allows customers to accept payments from American Express, Visa, Mastercard, Discover. Moreover, Paypal integrates with various e-commerce giants like Shopify, Squarespace, WooCommerce, BigCommerce. It also offers phone-based credit card payments, in-person payments, and online invoicing.
- Anti-fraud measures
- Manager of customer information
- Payments made on a recurring basis
- Checkout is simple.
- $25 per month
- 2.9% plus $0.30 per transaction
Authorize.Net is one of the primary and oldest payment gateway providers worldwide, established in 1996. Furthermore, its setup and usage are extremely easy and work well with any merchant account. Moreover, it serves over 430,000 merchants and manages up to one billion transactions every year. In addition, it is accepting multiple payment types now in comparison to other payment gateways. An intriguing fact is that Authorize.Net is one of the few payment gateways that accept PayPal. Moreover, it provides an all-in-one package to its customers that entails both a merchant gateway and payment gateway. These options provide features such as recurring payments, invoicing, fraud prevention filters, customer information management, mobile payments, a virtual POS, etc., in addition.
It has collaboration with merchant account providers, accessing its users to accept payments from major credit cards, debit cards, digital payments, etc. For an additional fee, Authorize.Net allows you to add an account updater for recurring payments as well as the option to take electronic checks.
- Real-time Reporting
- QuickBooks and NetSuite support 450+ platforms and extensions for iOS and Android apps.
- Platforms and marketplaces remuneration
- Preventing fraud with machine learning
- ACH direct debit 0.8% ($5 cap)
- Embeddable checkout
- Recurring subscriptions and invoicing
- Local payment methods
Stripe was launched in 2011, which emphasizes more on technology and advancement. Furthermore, this payment gateway offers customizable payment methods at competitive rates. The Stripe patent gateway allows its products to evolve with companies of all sizes and hence accommodate their needs. Moreover, 90% of online shoppers in the U.S. have bought from businesses using Stripe's payment gateway. Stripe's native integrations with current eCommerce platforms, such as WooCommerce, Shopify, Wix, Squarespace, and BigCommerce, allow customers to construct their own platforms. In addition, it allows the customers to use Stripe's native integrations with existing eCommerce platforms.
Besides, Stripe offers global payments plus supports over 135 currencies and payment types, mobile payments, subscription billing, etc. it also offers a virtual POS, which makes it an effortless task to blend the users' online and offline channels. In addition, Stripe is also compatible with mobile phones and P.C.s and pre-certified card readers that accept chip cards and contactless payments.
- Used by large corporations
- Integrated data insights
Adyen is a payment gateway that allows users to accept every payment to the company from a single platform. Furthermore, it offers you tools to manage risks and track results. Adyen is in use by major companies like Spotify, Microsoft, Uber, and eBay to manage customers' business and transactions. The best feature of Adyen is that it accepts more than 250 payment options and 150 global currencies. However, it also allows you to examine transaction data in order to gain "data-rich insights into client behavior." Although the processing fees may differ by mode of payment, the company uses interchange pricing that comes with an additional fee.
In addition, the Adyen payments platform accepts all major payment methods from around the world. Many payment options can also be utilized outside of the country of the shopper. There is a per-transaction processing cost plus a payment method fee, no setup fee, 24/7 in-house support, and full access to the platform's capabilities.
- In-person or e - payment: 2.6 percent + $0.10
- Invoice transactions at 2.9 percent + $0.30
- 3.5 percent plus $0.15 for manual entry or card-on-file
- Integrate with any of the 120+ carts in a matter of minutes.
- Scale-up for global expansion
- Any product sells.
- Recurring billing access
Square was established in 2009 by Twitter co-founder Jack Dorsey. Furthermore, Square has created an effortless mode through which smart devices can make online payments rather than relying on expensive POS systems. Moreover, the significant feature of Square is that it enables users to accept both in-person and online payments with no setup and costs. In addition, it includes a free mobile card reader to function efficiently.
Besides, Square is a remarkable payment gateway to use because it accepts all prime credit cards as well as other payment types like Google Pay and Apple Pay. However, it doesn't support Paypal and allows its users to accept payments by website, invoice, or over the phone. Although, it is famous in the market because of its simple and hassle-free setup.