payment gateway, Frequently used Payment gateways for E-commerce Websites, Hostripples Web Hosting

Frequently used Payment gateways for E-commerce Websites

Assume that you are thinking about starting an E-commerce website. Therefore the first thing which you will require is to look for a web developer and web designer. Then share your thoughts with them. They will create an E-commerce website for you as per your requirement. Now that your site is ready, you will need to make it online. Now consider that you have subscribed for a best web hosting provider, but this is not the only thing which you will require once you have created a nice looking E-commerce website, the actual aim of starting an E-commerce website is to earn money, right?

Now for making money, it is important that your clients should be able to make payments by purchasing products and services that you are offering and it is not possible to earn money unless your customers make payments and the amount arrives in your bank account. Thus the hard work which you have put in creating your website will be ruined.

One more important point to be considered here is that the bank transfers across many countries will be very expensive for your customers, therefore if you have created a very normal E-commerce website for local customers, then only those customers will be able to transfer the money to the local bank account and this can prohibit international transfers. Now think about credit card payments, if the international bank transfers are prohibited then how people are going to make the payment using a credit card because nowadays most of the people use credit cards, for making the payments on regular basis. Therefore you must think about this situation and try to find out the solution to it so that your customers will also be able to make payments through credit cards to your Ecommerce website.

The solution is to configure a payment system which will accept the credit card payments to your website, but for that, a code is required and unless you don’t know your code, it can become more critical. Also, there can be chances of hacking your website and the hacker may get to know the credit card information of your customers, and definitely it would not be a good thing for you and your business, correct?

Now, this is the time where Payment Gateways comes into the picture!

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Payment Gateway is a kind of service which securely manages or processes the payments made by using credit cards for an E-commerce website or for traditional businesses. As mentioned earlier, this service looks after all the measures which are concerned with securely processing the credit card payments and Payment Gateways gets a percentage of amounts of money being transferred for keeping themselves in profit. PayPal or 2checkout or Authorize.Net, Stripe, and PaySimple are some of the most popular Payment Gateways.

 There is one more term in use, which is Payment Processors. These terms are used quite interchangeably but don’t get confused, there are few points of differences between them:

The major difference between a payment processor and a payment gateway is that a payment processor evaluates and transfers the data which involves transferring appropriate information like credit or debit card information which is required for linking to a bank account, to an authorized bank. The payment gateway also allows funds transfer among buyer and seller.

The process of “swipe” the credit card and executing the information by an authorized bank is the payment processor.

From the above discussion, you must have understood the concept of Payment Gateways.

Therefore let’s look at frequently used payment gateways for e-commerce websites


Frequently used Payment gateways for E-commerce Websites, Hostripples Web Hosting

In the payment gateway platform, PayPal has become a worldwide standard since 1999. PayPal offers safe online money transfers and it has become the most popular solution for online money transfer, therefore, it is being accepted worldwide. PayPal makes it easy for the credit cards as well as debit cards. Also as an owner of an E-commerce website, there is an additional benefit which is, there are no membership fees i.e. PayPal is free to use. PayPal earns their money by applying 3.4% fees on every transaction along with a direct 30 cent charge.


Frequently used Payment gateways for E-commerce Websites, Hostripples Web Hosting

This payment gateway was designed and developed for the dealers. It was used for making online payments by the merchants and also used in the establishment of ‘bricks and mortar’. The most important feature offered by Authorize.Net is its capability to benefit small businesses by fighting against fraud. Authorize.Net was started at around 1996 and this payment gateway solution is leveraged by around 400,000 dealers around the globe.

Authorize.Net supports online credit card payments and also authorizes eCheck or electronic checks. It offers large learning materials or manuals at the same time offers the majority of tutorials which benefits you to extract the best out of Authorize.Net and also from your business website.

The fees charged are as follows:

Setup Fees – $49

Ongoing Fees – $29/month over the 2.9% and

Transaction Fees – 30cent, in addition to it, 1.5% extra for international transactions.


Frequently used Payment gateways for E-commerce Websites, Hostripples Web Hosting

2CheckOut has also been around for a long time, but it was officially launched in 2006. Avangate brought it in 2017, since then it is providing a worldwide payment gateway solution which can be useful to the number of businesses or markets. 2CheckOut claims 300 fraud anticipation rules and also has PCI compliance of Level 1. Same as PayPal, 2CheckOut also provides support to all credit cards as well as debit cards and you need to pay just 2.9% of the total transaction amount. Again similar to PayPal, 2CheckOut also has a regular 30 cent payment along with other transfer fees, but there are no proceeding fees.


Frequently used Payment gateways for E-commerce Websites, Hostripples Web Hosting

PaySimple is one more payment gateway option which supports all important credit cards as well as debit cards along with the extra benefit of handling the ‘eCheck’ payments. Since the last few years, PaySimple has become a very effective payment gateway solution for the E-commerce websites starting from small size to the medium size.

PaySimple can also be utilized for credit cards as well as ACH eCheck payments, but one more benefit of using PaySimple is that you can use it in the physical stores also because it permits the customer to make payments on the telephone.

It allows two types of pricing with a:

Pro Plan- the cost of this plan is $49.95/month including transaction fees and

An Enterprise Plan – the cost of this plan is $99.95/month including transaction fees.


Frequently used Payment gateways for E-commerce Websites, Hostripples Web Hosting

Stripe is another payment gateway solution which is available in 25 countries and it is normal WooCommerce incorporation. It is known for its ability to provide flexibility to the web developers so that the developers can swiftly integrate it inside a design. Stripe is also known for its simplicity with which it can be incorporated with various interaction tools like “React”. Other benefits of Stripe are:

  1. Stripe provides a user interface toolkit
  2. It can be swiftly customized and
  3. It permits users to configure payment forms instantly.

It charges 2.9% in addition to 30 cents per transaction if the owner of the business is earning less than $1 million/year in the business, but there are other extra fees for the amount which is above $1million/year.


From the above discussion, we can say that the costs of Payment Gateway’ are a very little price to be paid for making it sure that the E-commerce website which you are running has a authenticate e-commerce abilities. Also by using the above information about, each specific payment gateway is charging from you to make sure that these fees will help you to select a cost-effective solution and use it for your Ecommerce website.

You know that there are other payment gateway services available out there, but the ones which we have listed here may suit your requirements, or you can select any other payment gateway service which might suit your needs, therefore we would like to suggest you do a detailed search before selecting any payment gateway service.

We hope that you find this information helpful! Please do not forget to leave a comment in the comment section below. Thank you for reading the blog! See you soon with another interesting blog on another interesting topic!

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Frequently used Payment gateways for E-commerce Websites, Hostripples Web Hosting
Vishwajit Kale
Vishwajit Kale blazed onto the digital marketing scene back in 2015 and is the digital marketing strategist of Hostripples, a company that aims to provide affordable web hosting solutions. Vishwajit is experienced in digital and content marketing along with SEO. He's fond of writing technology blogs, traveling and reading.