How to Choose the Best Payment Gateway for Your eCommerce Store

• Understand what payment gateways are and how they function
• Learn about the different types of payment gateways
• Identify the key factors to evaluate when choosing a gateway
• Compare the pros and cons of leading gateway providers
• Determine the best payment gateway for your ecommerce store
• Successfully integrate and implement the new payment gateway
• Monitor and optimize the gateway for peak performance

• Securely transferring sensitive customer payment data between the customer, merchant, and payment networks. This data is encrypted throughout the transaction process.
• Authenticating the customer’s payment details by verifying information like account numbers, expiry dates, CVV codes etc.
• Authorizing the payment by checking with issuing banks, payment processors, and credit card companies.
• Settling funds into the merchant’s account after completing the transaction.
• Sending payment confirmation notifications to both the customer and the merchant.

• Customer initiates checkout on the online store and enters payment details like credit card number, expiry date and CVV code.
• The ecommerce platform captures the payment information and passes it securely to the payment gateway.
• The payment gateway receives the data and sends it to the payment processor.
• The processor forwards the data to card networks like Visa, Mastercard, AmEx, etc.
• The card network routes the payment information to the issuing bank.
• The issuing bank verifies the availability of funds in the customer’s account and sends an authorization code back to the processor.
• The processor relays the authorization to the payment gateway.
• The gateway completes the payment by transferring funds into the merchant’s account minus any transaction fees.
• Confirmation emails are sent to the customer and the merchant about the successful transaction.

• PCI compliance for secure transactions: Gateways adhere to stringent data security standards, such as PCI DSS, to protect sensitive cardholder information.
• Support for multiple payment modes: Top payment gateways allow customers to pay using credit cards, debit cards, net banking, mobile wallets, gift cards, and more.
• Multi-currency transactions: Gateways enable international ecommerce stores to accept payments in different global currencies.
• Recurring billing and subscriptions: Merchants can bill customers automatically on a recurring schedule via the gateway, which is useful for subscription models.
• Mobile payments: Customers can checkout quickly and securely using mobile wallets like Apple Pay and Google Pay.
• Fraud prevention tools: Gateways use technologies like AVS, CVV verification, and 3D Secure to screen orders and minimize fraud.
• Payment analytics and reporting: Detailed reports on transactions, payments, fees, chargebacks, etc., help the business better understand itself.
• POI/POS capabilities: Integrate point-of-sale and point-of-invoice systems with the payment gateway for in-person retail.
• Developer APIs and integrations: Gateways provide APIs, SDKs, plugins, and tools to integrate with the ecommerce platform.
• Tokenization: Customer payment details are substituted with tokenized values or digital tokens for enhanced security.
• Easy refunds and chargebacks: Gateways allow merchants to seamlessly refund payments or manage disputed charges directly in the portal.

Step 1 – Customer proceeds to payment page on merchant’s site.

Step 2. – Customer enters payment details like card numbers, etc., on the checkout form.

Step 3 – Details are securely forwarded to the gateway, which verifies and processes the transaction.

Step 4 – Customer is displayed a payment confirmation/receipt on the merchant site itself.

• Customer selects purchase option on merchant site.
• They enter payment data on the merchant’s checkout page.
• The details are verified, and the customer is redirected to the gateway site for authentication.
• The customer logs into their payment account on the gateway site to approve the transaction if required.
• They are redirected back to the merchant site after approval.
• The merchant site displays a payment confirmation message.

• Customer clicks purchase or checkout button on merchant site.
• They are redirected straight to the gateway site.
• Customer completes the checkout and payment on the gateway site.
• Gateway site confirms the successful transaction.
• Customer is redirected back to a receipt or thank you page on the merchant website.

• Credit cards – Visa, Mastercard, American Express, Discover
• Debit cards and prepaid cards
• Net banking – Direct bank transfers
• Mobile wallets – Apple Pay, Google Pay, Samsung Pay
• Cryptocurrencies like Bitcoin, Ethereum, etc.
• Installment payments – Split, Affirm, Afterpay etc.
• EMI options for high-ticket purchases
• UPI payments for India, specifically

• Interchange-plus pricing – Charges a flat rate plus interchange fees per transaction—more transparency in pricing.

• Tiered pricing – Fixed rate slabs based on monthly or annual transaction volumes. It can be costlier for higher volumes.
• Flat rate—A fixed fee per transaction, irrespective of volume. It is simpler to calculate but potentially more expensive.
• Payment based on payment volume – Fees based on your total payment volume processed via the gateway.
• Per-transaction pricing – Fees charged per transaction.
• Setup fees – One-time fee for initial integration and setup.
• Monthly fees – Fixed recurring gateway subscription charges.
• Chargeback fees – Assess fees for disputed transactions or chargebacks.
• Payment method fees – Additional charges for accepting certain types of payments.

• PCI DSS compliant – Complies with stringent Payment Card Industry Data Security Standards.
• End-to-end encryption – Sensitive customer data is encrypted as soon as it is captured.
• Tokenization – Credit card numbers are replaced with unique tokens or aliases.
• Fraud prevention tools – These include technologies like AVS, CVV, 3D Secure, machine learning, etc.
• GDPR compliant – Complies with EU’s General Data Protection Regulation for data privacy.
• Data centers – Uses trusted hosting providers like AWS with high security.

• Ready-to-use plugins, extensions, or integrations for popular ecommerce platforms.
• Developed APIs, SDKs, and documentation to build customized integrations.
• Availability of libraries and code samples for easier integrations.
• Options for guest checkouts without leaving your website.
• Support for integrating with ERP, accounting, shipping, and CRM systems.
• Ability to work across different platforms and architectures.

• Mobile responsive payment forms.
• Support for one-click payments.
• Flexibility to customize checkout flows and design payment pages.
• Alternative payment options when cards fail.
• Remembering logged payment details for repeat purchases.
• Payment retry logic in case of failures.
• Accept payments in multiple currencies and languages.

• Accepting payments from customers across the world.
• Supporting transactions in all major currencies.
• Providing localized payment experiences.
• Offering dynamic currency conversion at checkout.
• Managing complex taxation, compliance, and accounting needs across borders.
• Enabling cross-border shipping, tracking, and returns management.

• Phone, email, and chat support.
• Online knowledge bases, documentation, and FAQs.
• Ticketed support and case management.
• Onboarding assistance and dedicated account management.

• Globally distributed and redundant infrastructure without a single point of failure.
• Proven uptime track record.
• Transparent communication during any outages.
• Quick failover and disaster recovery capabilities.

• Ability to auto-scale with cloud infrastructure.
• Capacity to handle seasonal spikes in traffic.
• Options to upgrade to higher processing tiers easily.
• Global reach and availability of new features.
• Roadmap for supporting expanded payment options.

• Sophisticated algorithms to screen orders.
• Blocking known fraudster data.
• Device fingerprinting to flag suspicious devices.
• Geolocation tracking to identify location fraud.
• Rules engines to customize fraud checks.
• Options to securely hold and review flagged orders.
• 3D Secure support as an additional verification layer.

• Years of experience in the payments industry.
• Strong merchant customer base across business sizes.
• Positive reputation based on merchant reviews and testimonials.
• Active development and support of the product.
• Responsiveness to customer concerns and feedback.

• What payment methods do my customers prefer? Credit cards? Debit cards? Digital wallets?
• What pricing model makes the most sense based on order values and volumes?
• Is global payment acceptance required for my cross-border customer base?
• How critical is uptime, reliability, and customer support?
• What capabilities are needed to reduce fraud and chargebacks?
• Should the gateway integrate seamlessly with my ecommerce platform and accounting software?
• Will a mobile-optimized payment experience be important for conversions?

• Getting recommendations from other merchants in your industry
• Checking reviews on G2, Capterra, and other software review sites
• Seeing which payment gateways your ecommerce platform officially integrates with or recommends
• Evaluating offerings from major payment processors like Stripe, PayPal, Square, etc.
• Searching merchant marketplace app stores for top payment gateway apps

• Visit the gateway provider’s website and documentation to understand features, options, and pricing.
• Review online content, merchant community forums, and trusted review sites to gauge satisfaction.
• Compare supported integrations, APIs, security measures, and development resources.
• Analyze pricing models and all associated fees carefully based on your order value and volume estimates.
• Check for compatibility with your ecommerce platform, accounting tools, and other systems.
• Assess fraud protection, global sales capabilities, uptime track record, and customer support.
• Sign up for a trial account to test the gateway hands-on if available. Evaluate the overall experience.

• Revisit which gateways scored highest on your must-have requirements. This should carry the most weight.
• Assess ease of integration and available developer resources for implementation.
• Consider long-term costs based on projected sales growth and additional fees.
• Check for positive merchant feedback and reviews specifically related to your industry.
• Select the gateway offering the best overall value, not necessarily the cheapest.

• Downloading the required SDKs or APIs and adding dependencies.
• Configuring API keys and authentication credentials.
• Installing any ecommerce platform extensions or plug-ins.
• Implementing payment forms, order flows, and callback handling on the site.
• Passing order details like amount, currency, and customer data from the store to the gateway.
• Handling the authorized payment response back from the gateway after approval.
• Displaying appropriate payment confirmation or error messages to customers.

• Successful and failed test payments with different amounts using the gateway sandbox.
• Retry logic and error handling for failed payments.
• Confirming payment confirmation and order tracking emails are sent.
• Testing refunds and cancellations.
• Checking payment reporting and reconciliation works.
• Assessing performance under load with simulated traffic.
• Ensuring compliance with security policies like SSL.
• Confirming the mobile checkout experience is seamless.

• Getting support contacts for ongoing assistance.
• Reviewing the features you plan to use initially.
• Understanding the reporting dashboard and key metrics.
• Setting up fraud rules and defenses appropriately.
• Confirming terms of services and SLA commitments.
• Identifying opportunities for further optimization.

• Review detailed transaction data, fees, and payment reporting regularly.
• Keep an eye on transaction times, payment success rates, and fraud rejections.
• Monitor for any downtime, performance lags, or error spikes.
• Check gateway status pages and subscriber alerts.
• Proactively reach out to the provider for any concerns identified.
• Gather customer feedback about the checkout experience.
• Identify opportunities to optimize conversion funnels over time further.