Payment Gateway for ecommerce store

As the online business and activities boomed in recent years, online payments have become a significant part of the e-commerce industry. We are not only using our credit and debit cards to make online payments, but there are also other online platforms as well which we are using payment gateways to have online transactions.

What Is A Payment Gateway?

what is payment gateway

A payment gateway is a process that connects your bank account to the platform where you want to make a transaction. It is a technology that accepts credit and debit card purchases from customers. It is like a third party between the merchant and the customers that take money from party A and transfer it securely to party B. It also generates messages once the payment is transferred. Some platforms take per-transaction percentage or monthly fees to process a payment. At times customers do not do Online Payment but make a transfer directly to Bank or on Phone or Cash/Cheque these are Manual Payment Gateways.

How Does a Payment Gateway Work?

Payment gateways are the software that transfers sensitive information from acquiring banks to the issuing banks. It shows if the transaction is approved or declined. Now let’s see how it works once we add items to the cart and hit the checkout button on an e-commerce online store:

How does payment gateway works

Step 1: The buyer securely makes a payment through a credit card on the merchant’s eCommerce site.

Step 2: The payment gateway pushes the transaction information to buyer’s credit card network and routes information to it’s issuing bank

Step 3: The issuing bank applies fraud detection procedures to determine the authenticity of the transaction and confirms the buyer has sufficient credit in their account to make a purchase.

Step 4: Issuing bank After the authentication is done, sends information of approval(reject) back to payment gateway.

Step 5: the payment gateway then sends the approved or declined message to the merchant’s bank and make the payout accordingly (Major payment gateway takes couple of business days to make a payout)

Manual Payment Gateway

When customer does not want to pay Online, he has other methods like Direct Bank Transfer, Cash, Cheque or on Phone

How to Pick a Payment Gateway?

With the right payment gateway, it becomes very easy to make online payments. Choosing the right payment gateway takes a little time but pays in the longer run. Please keep the following points in mind while choosing the right payment gateway:

Cost– it is the main factor you should keep in mind. The cost involves setup fee, monthly fee and transaction fees, etc.

Types of cards allowed to make payments-most common cards are Visa and MasterCard, but still, it is recommended to look out first.

Holding time– it varies from bank to bank, the normal holding period is -1-7 days.

Supported currency– if you are making international transactions, checkout if the payment gateway supports multiple currencies or not.

Best International Payment Gateways Compared

There are many Payment Gateways but here is the list of top 5 Payment Gateways of 2020

  • Payline
  • Stripe
  • Authorize.Net
  • PayPal
  • 2Checkout

Let’s now dive in the two of the best payment gateways and compare their characteristics:

Features PayPal Stripe
Payment processing speed Processes transactions immediately Processes transactions immediately
Merchant account Not required Not required
Security Compliance PCI DSS certificate, fraud, and chargeback prevention PCI DSS certificate, fraud, and chargeback prevention
Payment methods 7 23
Chargeback fee $20 $15
Recurring billing $10/Month A free or paid plugin for $39.95
Additional fees None None
The number of currencies 25 100+

Best Indian Payment Gateways Compared

Below is the list of best payment gateways currently available in India for online transactions. Let’s take a look.

  • CC Avenue
  • PayU Money
  • Razorpay
  • Instamojo
  • EBS
  • Cashfree

Top 3 Mobile Wallets in India

  • Paytm
  • Mobikwik
  • Fone paisa

Let’s now dive in the two of the best payment gateways and compare their characteristics:

Features RazorPay Instamojo
Yearly and setUp Fees 0 0
Transaction Fees 2%-3% per successful transaction 2%+INR3 per transaction / 5%+INR3 for digital goods
Security Compliance PCI compliant, fraud detection, 2 Factor Authentication PCI compliant, fraud detection, 2 Factor Authentication
Payment methods T+3 business days 3 business days
Credit Card, Debit Card, Netbanking yes yes
Cards Processing Charges 2% 2%+INR3 per transaction / 5%+INR3 for digital goods
International Transaction 3% 3%
Recurring Payments Yes No

A payment gateway is an essential part of any e-commerce business. However, finding the right platform can be a problem. It is recommended to check out a few best options and select the one that suits best to your requirements.

How MorecustomersApp Offers All the Major Gateways

MoreCustomersApp Payment Solutions

MoreCustomersApp is a complete eCommerce solution that offers all major gateways for its customers. Now you don’t have to worry about making an online payment, MoreCustomersApp offers state of the art and hassle-free online payment options for its valued customers.


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