What is a Payment Gateway?
A payment gateway is an e-commerce
application service provider service that authorizes payments for
e-businesses, online retailers, bricks and clicks, or traditional
brick and mortar. Payment gateways provide the tools to process
payments between customers, businesses, and banks.
Major Global Payments Gateway Service Providers
In today’s tech savvy global market, business establishments
have been constructed with an online foundation giving buyers an
opportunity to view and purchase goods and services. This is done
through the sellers’ websites but processing of the transactions is
carried out by independent companies contracted by the seller. An
online payment gateway is a web-based application that allows a
website to authorize credit card transactions. The shopping cart
does it in a real time environment that is secure. The online
payment gateway is thus responsible for connecting the shopping
cart to the payment processor.
Typically, the payment gateway, as the name suggests, will link
your online shop to your merchant account. E-commerce today could
never be achieved without these gateways. Intertwined together,
online shopping has become a very common method of buying and
selling goods globally. The world today boasts of various payments
gateway service providers. Among the many gateways, there are a
cloud of the most renowned payment gateway service providers.
Major payment gateway service providers
PayPal is an acquirer, performing payment processing for
online vendors, auction sites, and other commercial
users, for which it charges a fee. It may also charge a fee for
receiving money, proportional to the amount received. The fees
depend on the currency used, the payment option used, the country
of the sender, the country of the recipient, the amount sent and
the recipient's account type.
Among the major service providers, PayPal has established an
international mark in payments gateway work. This is due to their
unmatched safe and easy transactions which covers a wider
e-commerce market. It offers services to over 24 currencies
acclaiming over 153 million accounts worldwide.
Get to pay
PayPal has become most customers’ favorite. If you feel online
shopping is your best option, then having a PayPal account will be
imminent. Currently, some of the get-to-pay services offered
Money Sending: This is where a customer who purchases an item from
an online shop can send money through PayPal to the shop’s
Currency Transfer: Using PayPal, one can also make preferable
currency transfers. This is where a customer who has purchased
online can pay according to the prevailing exchange rates. Being
linked with over 24 world currencies, PayPal enables customers to
PayPal not only enables you to pay for the online purchased goods,
but also allows its users to get paid for remote services offered.
Take for instance telecommuting. Ecommerce today depends highly on
remote payments. If you work from your house, you need a PayPal
account, for example, to allow you get paid by your clients.
Various get-paid services are offered by PayPal. They
Multi-currency payments: From wherever your customers may be,
PayPal will enable them to pay to your account. It has most up to
date currency exchange rates which incorporate various currencies.
This eases the hustle of looking for various international exchange
Express checkout service: This is where an online shop may have a
PayPal link to enable its online customers to pay remotely to your
account. This consequently increases your sales per unit time and
thus more profits. The market widens to beyond boundaries since
people can buy and pay you remotely.
Through PayPal, email payments are possible. You can invoice
your debtors through email and thus hastens the payment
This is where a customer gets a detailed account report on how
he or she has been transacting with PayPal. It encourages budgeting
of funds on PayPal.
Click to view details of each major payment
gateway service provider:
Other common payment
gateway service providers
Apart from the above mentioned payment gateway service providers,
there are other companies worth noting. Among these are: Amazon, Money
Bookers, Clickbankbuy, Payza, Payoneer, HSBC, Paypoint.net and
PayXpert among others.