Introduction
There are many different types of payment gateways available today, and choosing the right one can be a daunting task. This guide will help you understand the different features and benefits of the leading payment gateway providers so that you can make an informed decision when selecting a provider for your business.
What is a Payment Gateway?
A payment gateway is a service that allows businesses to accept credit card and electronic check payments online. Payment gateway providers typically offer merchant accounts, which are required in order to process credit card payments, as well as the ability to connect to a shopping cart or other e-commerce software.
Benefits of Using a Payment Gateway
There are many benefits of using a payment gateway, including:
- Convenience – A payment gateway allows customers to pay for goods and services online using their credit card or bank account. This is a convenient way to make purchases, and it also allows businesses to sell to customers who may not be able to visit their store in person.
- Security – A payment gateway provides a secure way for businesses to accept payments online. When customers enter their credit card information on your website, the payment gateway encrypts the data and transmits it to the merchant account provider. This protects the customer’s information from being intercepted by third-party fraudsters.
- Increased Sales – A payment gateway can help increase sales by making it easy for customers to pay for your products or services online. Customers are more likely to complete a purchase if they can use their preferred payment method, and a payment gateway makes this possible.
- Reduced Fraud – Payment gateway providers offer fraud protection tools that can help reduce the risk of fraud for your business. These tools can help you verify the customer’s identity, track their purchase history, and flag suspicious activity.
Types of Payment Gateways
There are two main types of payment gateways: hosted and self-hosted.
Hosted Payment Gateways
A hosted payment gateway is a cloud-based solution that allows businesses to accept payments without having to install or maintain any software. The payment gateway provider hosts the payment page on their servers and handles all of the security and compliance issues.
Self-Hosted Payment Gateways
A self-hosted payment gateway is a software application that you install on your own server. This type of gateway gives you more control over the payment process, but it also requires you to handle all of the security and compliance issues.
Features to Look for in a Payment Gateway
When choosing a payment gateway provider, there are a few key features to look for:
- Security – The payment gateway should offer data encryption and tokenization to protect customer information.
- Compliance – The payment gateway should be compliant with the Payment Card Industry Data Security Standard (PCI DSS).
- Support – The payment gateway provider should offer 24/7 customer support in case you have any questions or problems.
- Pricing – The payment gateway provider should offer competitive pricing, with no hidden fees.
Leading Payment Gateway Providers
There are many payment gateway providers to choose from, but the following are some of the leading providers:
- Authorize.Net – Authorize.Net is one of the largest and most popular payment gateway providers. They offer a wide range of features, including fraud protection tools, recurring billing, and support for over 130 currencies.
- Braintree – Braintree is a PayPal company that offers a wide range of features, including the ability to accept Apple Pay and Google Wallet payments. They also offer a mobile SDK that allows you to accept payments on mobile devices.
- Stripe – Stripe is a popular payment gateway that offers a simple, straightforward pricing structure with no hidden fees. They also offer a range of features, including support for over 135 currencies and the ability to set up recurring payments.
- PayPal – PayPal is one of the most popular payment gateway providers, and they offer a wide range of features, including buyer protection and fraud protection tools. They also offer a mobile SDK that allows you to accept payments on mobile devices.
- 2Checkout – 2Checkout is a popular payment gateway that offers a wide range of features, including support for over 87 currencies and the ability to set up recurring payments. They also offer a mobile SDK that allows you to accept payments on mobile devices.
Conclusion
A payment gateway is a must-have for any business that wants to accept payments online. A payment gateway can help increase sales, reduce fraud, and protect customer information. When choosing a payment gateway provider, look for a provider that offers security, compliance, support, and competitive pricing. Some of the leading payment gateway providers include Authorize.Net, Braintree, Stripe, PayPal, and 2Checkout.