Payment Gateway

A payment gateway is an e-commerce service provider that authorizes payments for e-businesses, online retailers. Whenever a purchaser or a consumer buys a product from payment gateway enabled merchant, the payment gateway comes into action and performs certain tasks to process the transaction. 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. It is the equivalent of a physical point of sale terminal located in most retail outlets.

This gateway automates the deal between the customer and merchant and is usually a third-party service that is actually a system processes, verifies, and accepts or decline credit card transactions on behalf of the merchant through secured Internet connections. This payment gateway is a network that allows a merchant to accept credit card and other forms of electronic payments. These gateways are really secured to take care of whole transaction being done online. When referring to these gateways used for Internet transactions, it may also be called an IP payment gateway. Interactive Voice Response Service customer enters the credit card details on phone using automated phone answering service. In case of order via website, browser encrypts the information which passes between the browser and web server using SSL encryption. Cyber source, Verisign, Pay pal and Authorize are some of the popular payment gateway service provider allowing merchants to accept credit card and through their website over an Internet Protocol connection.

There are several payment gateways and one might find it really tiring to search through Google for getting the best one in hand

Pay Pal

PayPal is a number one choice of mine for various reasons, its simplicity and its ease of use must be the most preferred ones, and you do not need to register as a business owner to avail this service. However, one must remember that PayPal does have its drawbacks as well. The fees of processing the payment gateway could go as high as 5.5% per transaction and they do have a transaction limit places on each registration which can be increased by credit card verification, address verification and then bank account verification. PayPal also provides with API services for those who want to go deeper into developer services and it does integrate well with most shopping carts.


2CO is the most preferred payment gateways by the giants with all its packed features it does have a few drawbacks. One needs to be a registered business and has to pay a 49$ setup few per account. There are strict rules of what can be sold and what not. Do checkout their website for details. Withdrawing an amount from 2co is a bit tedious and has to be done through a check or bank deposit though its done every week it must meet the release level and pass verifications.

Money bookers

This is a European payment gateway service which can be used by those who are dealing in Euros. You can create product listing using their own shipping cart system and use its buttons on your site. The transactions fees are very high again and there is a cap on the transactions that can be done every month. The limit can be raised through their verification process.


This is a Canadian service provider and has basically the same system as PayPal though not as much popular. You just been acquainted with their services and the shopping cart addition part has been simple and the transaction fees do not differ much with that of PayPal payment gateway services. Few people opt for Alert Pay as an alternative to PayPal as well. A personal account with Alert Pay has limitations which can be raised to an extent through some verification process while the Pro account is packed with features like: Mass Pay, Integration tools and website payment methods. To verify the pro account one might need to submit a few documents as well.