What Is an E-commerce Payment Gateway and How Does It Work?

$144 billion, that’s the total number of noncash payments in the US in 2015 the number doubled in 2017 to reach $370 billion. With the increased online payment methods in the world, it is essential to understand what e-commerce payment gateway entails.

E-commerce allows website owners to accept payments through credit card for their online goods and services either online or through mobile devices.

Therefore, payment gateway acts as a bridge between the gap of your product sales and your customers.

E-commerce Payment Gateway

An e-commerce payment gateway is a software that authorizes payments for all business conducted online. A payment gateway allows payment by credit cards for online shops, traditional stores, and e-commerce activities.

It connects to a financial institution which allows multicurrency acceptance and accepts payments from different banks. It is easy to create a method of payment whose aim is to give you easy access to your clients.

A payment gateway is a tool for online shoppers that protects their credit card information by ensuring that their details are passed securely between a client and a trader.

E-commerce Warrington is an online trading website that will guide you on how to make sales and help you build a website that will transform all sites visits to sales.

How It Works

For you to accept an online credit card, you need to have a payment gateway. It has to be compatible with the shopping cart and needs to be incorporated with the trader’s account.

Some websites, such as e-commerce Warrington, combine a payment gateway and a traders account.

When making a purchase online, you will require two components from the seller and the trader. A seller will offer a payment gateway, and the merchant will submit his/her account. The payment gateway works by hooking up with your shopping cart the same function as the point of sale machine works in the traditional store.

A request is then sent to a credit card processor and the payment for the products/services s approved. The payment information then moves from the payment gateway to the traders’ account then finally delivered to the trader’s bank.

A payment gateway can also handle all your online and mobile trades. Ask your bank to set up a merchant account if you already have an online trade store.

There is a discount rate listed on payment gateways that describe the commission from payments made. The commission is usually divided between the credit card provider, merchant account and the payment gateway.

Before deciding on any payment gateway, you need first to know what the fees are covering. Some payment gateways do not include the merchant fees only fees for their service, leaving you to pay the extra charges.


Payment gateways are useful when processing an online sale. A payment gateway is the virtual equivalent of a card machine, processing sales when authorizing transactions at online checkout.

E-commerce Warrington will provide you with useful information on online payment gateways and how they work for you to understand how to make the extra shilling on online stores.

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