How To Choose a Payment Gateway for Your Online Business

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If you intent to open an online store, to monetize your blog or to process transactions on your website, at some point you will have to choose a payment gateway.

What is a payment gateway?

payment gateway is an e-commerce application service provider that authorizes credit card payments for e-businesses. There are hundreds of payment gateways in the world, so choosing the right one for your business can be a daunting task. Most hosted e-commerce solutions and shopping cart WordPress plugins integrate a payment gateway like Paypal and Stripe. But if you want to choose the payment gateway yourself, this infographic will help you make a decision based on the features to consider. 

How does a payment gateway work?

Here is how a typical transaction process goes:

  • The customer places an order on your website and clicks ‘Order’
  • Your website forwards the transaction details to the payment gateway
  • The payment gateway forwards the transaction information to the payment processor used by your acquiring bank
  • The payment processor forwards the transaction information to the card association (Visa, Mastercard or other)
  • The credit card issuing bank receives the authorization request and does fraud and credit or debit checks and then sends a response back to the processor
  • The processor forwards the authorization response to the payment gateway
  • The payment gateway receives the response, and forwards it on to the website
  • Your website then fulfills the order

Factors to consider when choosing a payment gateway

  • Recurring billing
  • Mobile payments
  • Fees
  • Currencies
  • Infographic key
  • On-site payments
  • Payment types available
  • Country availability
  • Cutomer support
  • Fraud protection

For details about each feature, take a look at the infographic below, designed by CueCommerce.

payment gateway

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