However, not all payment gateways are the same. What you may require depends on your business\u2019s size and needs. Here\u2019s an essential guide to receiving payments and choosing the best payment gateway for your business that will answer numerous questions starting from What is a payment gateway?<\/em> and How does a payment gateway work?<\/em> to How to choose a secure payment gateway?<\/em> <\/p>\n\n\n\n Ready? Let\u2019s get started!<\/p>\n\n\n\n <\/p>\n\n\n\n 1. What is a payment gateway?<\/a><\/p>\n\t 2. What are the types of payment gateways?<\/a><\/p>\n 3. How to choose payment gateways wisely<\/a><\/p>\n\t 4. Choosing a secure payment gateway<\/a><\/p>\n\t 5. How many payment gateways do you need?<\/a><\/p>\n\t 6. Best payment gateway: Review of solutions for a small business<\/a><\/p>\n <\/p>\n\n\n\n As the name suggests, a payment gateway is a technology that allows your website to process payments. You may also meet such related terms as payment processors<\/em>, payment providers<\/em>, or payment platforms<\/em>. Although not all of these terms are technically synonymous, yet in common life, they\u2019re broadly used to describe similar solutions.<\/p>\n\n\n\n Basically, payment gateway providers read and transfer payment information from your customers to your bank account, ensuring that the money is available and received, along with necessary data.<\/p>\n\n\n\n Payment gateways come in many shapes and sizes. But they are all the same in one regard \u2013 they allow you to get paid online.<\/p>\n\n\n\n Here are some of the payment gateways types and their benefits for business:<\/p>\n\n\n\n Self-hosted payment gateways handle the entire transaction on their servers. Amazon, for example, uses the Amazon Pay processing system. The checkout and payment processing go completely on their site. The biggest advantage is the extra level of security. But only very large businesses can afford to create their own custom processing system. <\/p>\n\n\n\n Off-site payment gateways are called so because your customer checks out on your site, but the payment processing happens on the provider\u2019s backend. Like in the case of the Stripe payment gateway, they collect payment for your product from your customers and pay you back within a particular time. What\u2019s great about it for merchants is that the provider commits not only to processing payments but also to handling other related issues, like disputes or refunds.<\/p>\n\n\n\n When the gateway takes a customer to a different payment page to handle the complete transaction (i.e. processing and paying), it becomes a \u201credirect\u201d. An example of redirection is PayPal. On the one hand, using this platform adds an extra step for a customer and means that a merchant has less control. On the other hand, small businesses can use a redirect-gateway to incorporate the convenience and security of a major platform. <\/p>\n\n\n\n If you\u2019re selling online, you don\u2019t have to be an online payment gateway expert. However, understanding the basic flow of major payment gateway providers is a must to feel confident in what you do.<\/p>\n\n\n\n <\/p>\n\n\n <\/p>\n\n\n\n How does a <\/strong>payment gateway<\/strong> work?<\/strong><\/p>\n\n\n\n As it was previously mentioned, a payment gateway enables payments online and ensures the interchange of data and funds between customers and businesses. This interchange requires customers and businesses to work together in order to complete transactions online.<\/p>\n\n\n\n Typically, the flow of a payment gateway includes the following steps:<\/p>\n\n\n\n Step 1.<\/strong> An order is placed and confirmed on a merchant\u2019s website.<\/p>\n\n\n\n Step 2.<\/strong> A customer enters card details and the payment gateway checks if the funds are available. At this point, this ecommerce transaction has to be authorized by the customer\u2019s bank. <\/p>\n\n\n\n Step 3.<\/strong> If the payment is authorized, the merchant gets paid and the money is deposited either into the merchant account or the aggregated merchant account that belongs to the payment gateway.<\/p>\n\n\n\n Step 4.<\/strong> Once the money is deposited into the merchant account, the payment can now be made to the business\u2019s bank account.<\/p>\n\n\n\n Assuming that there are no refunds or chargebacks, credit card payments follow this simple flow and usually take no more than a few minutes. The exchange of information is secure as the data is encrypted and protected.<\/p>\n\n\n\n Now that you have a basic understanding of how payment gateways authorize credit card payments and finalize transactions, you may be wondering how to choose from all the payment gateway options available on the market. The answer is simple \u2013 choose wisely.<\/p>\n\n\n\n For your ecommerce business to thrive, it needs a payment gateway that will serve your business and your customers in the best way. What you need may depend on your business\u2019s size and requirements.<\/p>\n\n\n\n Let\u2019s think about what these requirements may be and what questions a merchant needs to answer before choosing the best payment gateway:<\/p>\n\n\n\n Let\u2019s face it. Answering these questions is tough and somewhere along the way you might arrive at the conclusion that you need to use several secure payment gateway providers to receive payments. And security must always come first.<\/p>\n\n\n\n As the number of ecommerce transactions grows, so does the possibility of fraud. Fraudsters nowadays come up with much more than just phishing emails, that\u2019s why spotting fraudulent transactions and choosing a secure payment gateway is as important as ever.<\/p>\n\n\n\n Security features should be a top priority when considering payment gateway options. There are a number of security measures you\u2019d want to consider:<\/p>\n\n\n\n 1. Payment Card Industry Data Security Standard (PCI DSS).<\/strong> Check if your provider is compliant with this set of rules and security regulations that are implemented by the major card schemes and ensure that payments are fulfilled in a secure manner.<\/p>\n\n\n\n 2. Encryption.<\/strong> Payment gateways must encrypt customers\u2019 data to guarantee its secure transmission.<\/p>\n\n\n\n 3. Tokenization.<\/strong> Sensitive cardholder data might also be converted into a security token that is used for future payments.<\/p>\n\n\n\n 4. 3D Secure Authentication.<\/strong> When customers enter their card details, they have to go through an additional step to verify their payment.<\/p>\n\n\n\n 5. Employee training.<\/strong> Make sure that people working with processing payments know and adhere to the latest security regulations. Each payment must be in safe hands.<\/p>\n\n\n\n As long as your payment gateway options pass the security requirements, you\u2019re free to choose the top payment gateway satisfying the needs of your business. Or maybe a few.<\/p>\n\n\n\n Not all of your customers will have cards and accounts with the same payment processor. In most cases, you\u2019ll need to sign up with more than one payment provider. <\/p>\n\n\n\n Therefore, there\u2019s a possibility that you might need to have integrated platforms that support more than one payment method. You should understand the cost of each of the platforms that you want to use, which may include different processing fees, platform fees, and costs related to security.<\/p>\n\n\n\n The more payment gateways you connect, the more options and flexibility you offer your clients. At the same time, the complexity of your bookkeeping increases proportionally.<\/p>\n\n\n\n If your Shopify store has several payment gateways<\/a> simultaneously, for example, the native Shopify Payments, PayPal, and Stripe \u2014 besides more complex fee calculations, your business may face certain difficulties in accurately recording all sales without duplicating the data from every connected sales channel. <\/p>\n\n\n\n There\u2019s smart software, though, that automates the flow of your sales information from payment processors into your accounting system avoiding errors in data.<\/p>\n\n\n\n Synder Sync<\/a> is one of the top solutions on the market that can help sort this problem out. This powerful product gives you detailed and unlimited data synchronization with customizable settings to meet all of your accounting and reporting needs. <\/p>\n\n\n\n The solution allows you to connect both your sales channels and payment platforms and transfer detailed information from them to your accounting software with no duplicates or losses. <\/p>\n\n\n\n With Synder, you\u2019ll get access to fast and hassle-free reconciliation, accurate and flawless reporting, simple categorization with the help of Smart Rules, and much more. More importantly, handling international payments will become an automated process requiring your attention only at the initial setup.<\/p>\n\n\n\n Check out what Synder Sync has to offer by signing up<\/a> or booking a seat at our webinar<\/a> where you can join Synder specialists and explore the tool\u2019s functionality in more detail. Organizing your multichannel and multicurrency sales has never been easier and more secure! <\/p>\n\n\n\n Choosing the right payment gateway is crucial for the smooth operation and financial success of any small business. A well-suited payment gateway not only ensures seamless transactions but also bolsters the trust of customers in the business’s digital dealings. <\/p>\n\n\n\n We\u2019ll explore and compare the best payment gateway solutions available for small businesses. This solution review will delve into their key features, ease of integration, security measures, and pricing, providing you with comprehensive insights to help you make an informed decision that can significantly benefit your business’s transactional needs.<\/p>\n\n\n\n Founded in 2010 and launched in 2011, Stripe is one of the best payment gateway providers in the world focusing on ecommerce transactions. Stripe allows businesses to accept credit card payments, mobile wallet payments, in-person payments, bank debits and transfers, Buy Now Pay Later payment options, and a lot more, and manages them further. Stripe\u2019s customers can process payments in more than 135 currencies and get access to one-click checkout and transaction dashboards to visualize payments.<\/p>\n\n\n\n Stripe offers custom payment solutions for ecommerce businesses allowing them to tailor payment processes to their needs. The payment gateway has a number of APIs that let users either build their own on-demand marketplaces, crowdfunding platforms, and create subscription services, or take advantage of native integrations with some of the biggest ecommerce platforms such as Shopify, BigCommerce, WooCommerce, etc.<\/p>\n\n\n\n Fee:<\/strong><\/p>\n\n\n\n The US fee: 2.9% plus $0.30 per transaction.<\/p>\n\n\n\n The EU fee: 1.5% plus 0.25\u20ac (standard European Economic Area cards); 2.5% plus 0.25\u20ac (UK cards). <\/p>\n\n\n\n Customized plans with volume discounts are available for larger volume needs.<\/p>\n\n\n\n There\u2019s no monthly fee.<\/p>\n\n\n\n Points to consider: <\/strong><\/p>\n\n\n\n Stripe is surely one of the best payment gateway providers with multiple features, which makes receiving payments online easy and smooth.<\/p>\n\n\n\n Established in 1998 and bought by eBay in 2002, PayPal has become one of the best and most well-known online payment gateways globally. The company opens opportunities for facilitating payments between both personal consumers and businesses online.<\/p>\n\n\n\n With PayPal, personal consumers can shop, make payments, and transfer money safely and securely, while businesses get access to a set of solutions to simplify their day-to-day operations \u2013 in-person payments, phone-based credit card payments, online invoicing, cart integration, etc. PayPal integrates with Shopify, BigCommerce, Squarespace, and other big ecommerce platforms, as well as offers a variety of customization options.<\/p>\n\n\n\n Fee:<\/strong><\/p>\n\n\n\n Depending on your PayPal Business plan, you\u2019ll pay a monthly fee:<\/p>\n\n\n\n On top of that, you\u2019ll have to pay transaction fees that may vary from 2.29% to 3.49% plus $0.09 to $0.49 per transaction.<\/p>\n\n\n\n Points to consider: <\/strong><\/p>\n\n\n\n With PayPal, you can do almost anything. With a high score of 4.7 on Capterra, no wonder this online payment gateway is so popular. Its popularity and range of available features may be worth the fees.<\/p>\n\n\n\n The history of Square started in 2009 when it was founded by Jack Dorsey (co-founder of Twitter). Since then, Square has become one of the best online payment gateways accepting both online and in-person payments that comes with a free mobile card reader and doesn\u2019t incur any setup expenses.<\/p>\n\n\n\n Square works with Apple Pay, Google Pay, and all major credit cards, and allows its users to accept payments not only by website, but also by invoice, or over the phone. <\/p>\n\n\n\n Square is the best choice for merchants who don\u2019t want to put much effort into setup. You can download the software on any device and accept credit card payments using a plugin mobile card reader Square gives for free. No special skills are required.<\/p>\n\n\n\n Fee:<\/strong><\/p>\n\n\n\n There\u2019s no monthly fee for the payment gateway\u2019s basic services. Applying for Square\u2019s premium products incurs additional fees.<\/p>\n\n\n\n Depending on the transaction type, the following processing fees apply:<\/p>\n\n\n\n Points to consider: <\/strong><\/p>\n\n\n\n Square offers affordable pricing for small businesses whose turnover may vary from month to month. The tool is convenient as it divides its software by industry and merchants can choose what they need by category.<\/p>\n\n\n\nContents:<\/b><\/h2><\/p>\n\t
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What is a <\/strong>payment gateway<\/strong>?<\/strong><\/span><\/h2>\n\n\n\n
What are the types of <\/strong>payment gateways<\/strong>?<\/strong><\/span><\/h2>\n\n\n\n
On-site (self-hosted) <\/strong>payment gateways<\/strong><\/span><\/h3>\n\n\n\n
Off-site (hosted) <\/strong>payment gateways<\/strong><\/span><\/h3>\n\n\n\n
Redirecting gateways<\/strong><\/span><\/h3>\n\n\n\n
![\"best](\"https:\/\/synder.com\/blog\/wp-content\/uploads\/sites\/5\/2023\/08\/types-of-payment-gateways.png\")
<\/figure><\/div>\n\n\nHow a <\/strong>credit card<\/strong> <\/strong>payment<\/strong> and other <\/strong>payments<\/strong> are processed by <\/strong>payment gateways<\/strong><\/span><\/h3>\n\n\n\n
How to choose <\/strong>payment gateways<\/strong> wisely<\/strong><\/span><\/h2>\n\n\n\n
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Choosing a secure <\/strong>payment gateway<\/strong><\/span><\/h2>\n\n\n\n
How many payment gateways do you need?<\/strong><\/span><\/h2>\n\n\n\n
How to bring data from all your payment processing systems into your accounting<\/strong><\/h3>\n\n\n\n
Best payment gateway<\/strong>: Review of solutions for a <\/strong>small business<\/strong><\/span><\/h2>\n\n\n\n
Stripe<\/strong><\/span><\/h3>\n\n\n\n
Key features of <\/strong>Stripe<\/strong>:<\/strong><\/h4>\n\n\n\n
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PayPal<\/strong><\/span><\/h3>\n\n\n\n
Key features of <\/strong>PayPal<\/strong>:<\/strong><\/h4>\n\n\n\n
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Square<\/strong><\/span><\/h3>\n\n\n\n
Key features of Square:<\/strong><\/h4>\n\n\n\n
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Braintree<\/strong><\/span><\/h3>\n\n\n\n