What is a Payment Gateway?

A Payment Gateway system processes credit card information and is essential to starting and complete an online transaction. Think of it like a virtual cash register that processes payments for e-commerce sites and brick-and-mortar stores. This will encode private data only between the seller and the buyer for the transaction and will get authorization from the credit card company to complete the transaction.

According to the findings, at the end of the first half of 2018 there is a total of 440 million contactless payment users worldwide, while by the end of 2020 it has been forecasted to reach to a new total of 760 million users. – Statista

Once both steps have been accomplished, you can move on to the next transaction stage. Everything was completed within seconds; seeing it in action was faster than explaining it. Now that more people are turning to buy their items online, e-commerce sites have had to step up to keep up with the demand.

Virtual Terminal

Think of this as a checkout but a digital web-based payment process that handles electronic payments by phone, fax, mail, or in person.

Merchant Account

A merchant account is a business bank account that allows the business to process and accept electronic card payments. This type of account is ideal for e-commerce businesses because it doesn’t require in-person sales.

TOP 5 Payment Gateway Options:

  • PayPal
  • Authorize.net
  • Square
  • Stripe
  • 2Checkout



The most popular Gateway, and often highly ranked, would be PayPal. It’s known to be easy to use, reliable, and secure. When customers see the Paypal logo on your site, they’re immediately put at ease because that’s a name and payment option they’re most familiar with. If you have an online business, seeing the PayPal logo on your site will increase checkout conversions by 44%.

A study by the transaction. The agency reports that websites with PayPal convert 88.7 percent – 82 percent higher than sites without.

It also helps that Paypal has many other options to make the customer experience much more accessible, like Payments Pro. This plan accepts major credit cards like American Express, Visa, Mastercard, Discover, Venmo, and PayPal Credit. The transaction fees for merchant accounts differ per country, but we will include the one for the U.S. If you’re not in the U.S., click here to find out.


4.40% + Fixed fee


Authorize is one of the easiest to use whether you’re a new or experienced business owner. They aim to make in-person, online, and over-the-phone transactions seamless for their merchants and customers. They’ve been around since 1996, meaning they can help your customers complete transactions quickly.

They have portals for credit cards, debit cards, digital payments, and e-checks. In short, they accept more payment types than any other payment gateway. They’re a subsidiary of Visa and are an award-winning gateway option.

They boast more than 430,000 merchants who use their services!

Authorize has two options for their payment gateways with the standard fees. This is an option that is great if you’re looking for fraud prevention and want to be able to cater to multiple customer payment options. They have more to learn on their page here.


$25 a month
All-In-One- Option – Per transaction 2.9% + 30¢
Payment Gateway Only – Per transaction 10¢, daily batch fee 10¢
International Transactions – 1.5%


The thing about Square is that it doesn’t have the sort of charges that Authorize does. Its main competitor is PayPal so you won’t see any payment options through that Gateway. They accept major credit cards like ApplePay and GooglePay. You can download this software for free on any iOS or Android device instead of a bulky POS system, and its main highlight is that it’s easy to set up.

Customers can pay quickly through their phone, computer, or Invoice, and you get paid faster within the day because of the 24/7 invoices. They take pride in not having hidden fees and only Charge per processing payment. If you’re still confused or want to know more about their payment fees, head to their FAQ Page.

Over 75% of Square Invoices are paid within the day.


Per Invoice – 2.9% + 30¢


Stripe prides itself on being a technology-first company. They’re the best if your business is based in e-commerce and is very popular, claiming over 90% of online shoppers from the U.S. have used businesses that work with Stripe. This company is known for being easy to use, and integration doesn’t come with additional hidden costs for the potential merchant. Unlike Authorize, this Gateway doesn’t support Paypal. They work with e-commerce platforms like WooCommerce, Shopify, Wix, Squarespace, and BigCommerce, to name a few.

Businesses increase their revenues by 6.7% with Stripe

Their unique machine-learning systems allow the user to experience a seamless purchase experience and less blocking by the software. Stripe’s Radar has a large enough processor that even if your customer’s card is new to your business, there is an 89% chance it’s been seen elsewhere on their network, which decreases the number of rejections to combat fraud.


Per Card Charge – 2.9% + $0.30 +1% for international cards
Per In-Person Card Processing – 2.7% + 5¢
ACH Direct Debit – 0.8% $5.00 cap


2Checkout takes care of the back-end issues for their merchants to create an all-in-one monetization platform. They became a digital commerce leader, allowing companies to sell online through any channel, model, and market. They accept all major credit cards like MasterCard, Visa, American Express, JCB, and PayPal. This Gateway also provides customers with targets and customized buying experiences based on location so that purchases are always relevant.

VWO Boosts Revenue by 8% with 2Checkout

They help you compare their plans to see which is best for you and your company. You can sell any product, from material to services, and they keep an account updater to keep track of customer information.


2Sell Plan – Per Successful Sale – 3.5% + $0.35
2Boost Plan – Per Successful Sale – 4.5% + $0.45
2Monetize Plan – Per Successful Sale – 6.0% + $0.60