Have you chosen the Right Payment Gateway?

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Choosing the right payment gateway is as important as doing the business itself. After all, this is what enables us to collect the revenue from selling our products. Basically a payment gateway is like the online version of a credit card processing station. It works on a software application that is as functional as a credit card company.


This allows merchants to accept payment online. Payment gateways have claimed their position in the field of website development because it is very convenient to buy and sell products and services online with the help of a processor enabling secure transaction.


In short, the payment gateway of your choice is specially designed with an inbuilt billing processor. This billing processor regulates and automates the payment procedures, by collecting and transmitting credit card information.

Advantages of using Payment Gateway

Using payment gateways for online transactions is a very useful option for both merchants and buyers. It is so because it offers the following benefits:

  • Security is its chief benefit. A payment gateway guarantees 100% safe and secured online transaction. It is a very satisfying experience for the buyer because it guarantees that if the buyer is not satisfied with the product or the service, the money will be returned. Now that is something people just love.

  • It is a treat for online shoppers. They love it. Customers can pay easily and on the go.

  • Physical distance is not a barrier. The merchant can sit halfway across the world and still be able to receive payments within seconds.
  • The best thing about a payment gateway is that it is real time. Buyers can know immediately whether the payment has gone through or the transaction has failed. This saves a lot of time and generates trust among the people.

  • Saves the cost of setting up and operating a storefront.
  • Shopping is no longer time bound.

Important points while choosing a payment gateway

There are many factors that make a payment gateway suitable or not so suitable for a particular Merchant. Following are two major things that you must bear in mind while taking the big decision:

  • Payment Gateway Compatibility- This is critical. Once you have decided upon the chopping cart that your site is going to run on, make sure that your payment gateway of choice is compatible with it.

  • AVS protection- AVS protection means Address Verification System. It is very important as it reduces the chances of a fraudulent transaction. This is done by a dual verification conducted by your processor. It verifies with the bank of the authenticity and validity of the buyer’s credit card.


Payment gateways function in two different types. Merchants can choose which one is more convenient for them based on the nature of products and services that they offer. Following are the two types:

  • Secure Order Form: This is the preferred style of Payment gateways. Merchants and buyers worldwide rely on it. This is basically such that when a person agrees to buy the service or product, and clicks on the Pay Now button, he is routed to a third party site for ecommerce credit card processing and payment is put into the merchant’s individual merchant account.
  • API: This is the second style of payment. In this, a code is integrated in to the server that is hosting the merchant’s
    ecommerce site. This code acts as a merchant side application program, enabling the payment procedure.

Popular Payment Gateway Providers

  • PayPal
  • CCAvenue
  • VeriSign
  • Authorize.net
  • 2CO

VeriSign and authorize.net offers both an API and a secure website for keeping consumer’s credit card records. Because of the API the required data are held on the merchant’s eCommerce site. The main benefit of these payment gateways is that the consumer does not have to leave the merchant’s site.

This means there is no redirection happening. Everything is managed from the merchant’s site itself. In case they are redirected for credit card processing, they redirected again back to the merchant’s site immediately thereafter.

In case of third party credit card processors like Pay pal and CC Avenue, the merchant needs to use the eCommerce credit card processor’s gateway. This helps to stay in agreement with Visa and Master Card. The third party processor’s page opens once the customer checks out. Now, the merchants can completely customize this page, but the logo of the third party card processor will tell them whom they are paying to.


A payment gateway is a boon in disguise for all the merchants who wish to offer their products and services worldwide. The constraint of physical proximity is reduced and authenticity is reinforced because of a good payment gateway. Be wise and choose your payment gateway carefully.

Speak to people who already are using some payment gateway and ask them for any difficulties that they are facing. Once you are fully satisfied with the reviews, it’s time to get going!


Vishal Gaikar

Article by Vishal

Meet Vishal Gaikar, the tech wizard hailing from Pune, India, who's on a mission to decode the digital universe one blog post at a time. When he's not tinkering with gadgets or diving deep into the digital realm, you can find him concocting the perfect cup of chai or plotting his next adventure. Follow his tech escapades on Twitter and buckle up for a wild ride through the world of innovation and geekery!

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