Why Should You Use a Payment Gateway?

Every business start-up is now well equipped and the technological growth has enhanced the way business is done. Any kind of business that wishes to set up or manage its online business will have to pick the payment gateway for its online store. But, a lot of small business owners are not aware of payment gateway and they are not sure as to why they need it. There is also a lot of confusion going around with regard to how to use the payment gateway. There are many people who are skeptical about how secure this system is.


A payment gateway is basically an e-commerce service, which processes, checks as well as accepts or even declines the credit card transactions on behalf of the merchants via highly secure internet connections. Picking the right payment gateway system for your online business can most often determine if your online business is successful or not. In case the payments on the online store is not well set up, then you may lose a lot of orders if there are more unhappy customers or you will land up spending a lot of bucks on transaction costs as well as fees. Determining the payments end of the online store is the main thing for the long term success of the online business.

When you take such a decision as to which payment gateway you should be using, some of the questions will be guiding you through the decision making process and they are as follows:

  • What will be the cost of the service?
  • Is this system available in the place of your residence?
  • Will it require a merchant account?

Some of the payment gateways offer its services for free in case you have a couple of credit card transactions on a monthly basis on your store. You will then be able to upgrade to the paid account as your online business grows. Others usually charge certain percentage rate plus some fixed fee per transaction from its onset.

Some payment gateways such as PayPal offer their services for free if you only have a few credit card transactions per month on your online store. You can then upgrade to a paid account as your online sales grow. Some service providers charge a certain percentage on each transaction. There are some that offer payment gateway for tech support also. So, the options you have are numerous.

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