Businesses rely on online payments to offer convenience and accessibility. Deciding on the right payment gateways for agencies investing in web development services ensures secure transactions, regulatory compliance, and a seamless user experience.
Whether you run an ecommerce store, a subscription-based service, or a retail enterprise, integrating a reliable payment gateway is important. This guide explores what payment gateways are, how they work, and how they can help you implement the best solution.
What Are Payment Gateways?
A payment gateway is technology businesses use to accept purchases from customers’ debit/credit cards, Apple Pay, Google Pay, Klarna, and more. The term includes not only physical card-reading devices but also the payment-processing portals found in online stores.
Payment gateways are a bridge between the customer’s bank and the business account. They encrypt sensitive financial data to secure payments. Businesses working with professional web development experts can integrate payment gateways efficiently, improving the checkout experience and enhancing security.
What Is The Difference Between Payment Gateways & Payment Methods
A payment gateway is technology that securely processes customers’ payments and connects your website to the payment provider. An example of a payment gateway is Stripe, PayPal and Worldpay. A payment method is how the customer chooses to pay for the product. They might not always see the payment gateway, but they will choose the payment method (debit/credit card, Apple Pay or Google Pay) that uses the gateway to make the purchase.
An example of this could be someone buying a £250 product from your Shopify website. They reach checkout and choose Google Pay, and behind the scenes, Stripe could be the payment gateway processing that payment.
Functioning Of Payment Gateways
The payment gateway is a key component of the electronic payment processing system, as it is a front-end technology responsible for sending customer information to the acquiring bank, where the transaction is then processed. Below is the payment gateway multi-step process to facilitate transactions securely.
1. Customer Initiates A Payment
A customer selects a product or a service on a website and proceeds to checkout, entering payment details.
2. Encryption & Authentication
The payment gateway encrypts the customer’s card details and sends them to the payment processor for authentication.
3. Approval Or Decline
The payment processor communicates with the customer’s bank, which either approves or declines the transaction based on available funds and fraud detection measures.
4. Transaction Completion
If approved, the funds are transferred to the business’s account. A confirmation is sent to the customer who is completing the transaction.
Remember, expert web development services ensure businesses integrate this process seamlessly into their websites for smooth transactions.
What Is The Best Payment Gateway To Integrate
A payment gateway is a critical decision. The digital market will reach unexpected levels in the coming years. Electronic commerce is becoming a primary way to discover and buy products.
Integrating a payment gateway in your website lets you enable online transactions for your customers smoothly and securely. Your customers may use a tool that directly impacts your business operations.
How Do You Integrate A Payment Gateway With A Website?
Payment gateway integration depends on how your website was built. WordPress, Shopify and custom-built websites offer different options for each payment gateway.
WordPress & WooCommerce Websites
Integrate payment gateways with the official WordPress and WooCommerce plugin. This connects the payment gateway to the checkout, allowing customers to pay online and update the website CMS directly.
Popular gateways such as Stripe, PayPal and Worldpay offer WooCommerce integrations, making them suitable for businesses that want to add online payments without a payment system.
Shopify Websites
Shopify payment gateway integration is straightforward. Businesses use Shopify Payments or choose from supported third-party payment providers that can install apps within Shopify.
This provides a more integrated checkout experience, while third-party gateways can give businesses access to additional payment options or features.
Custom-Built Websites
Custom websites can integrate payment gateways using APIs, SDKs or hosted checkout solutions. Custom-built websites give you greater flexibility over how payments work and how the checkout fits into your website.
A custom integration can also connect payment processing with other systems, such as stock management, customer accounts, subscriptions or internal business systems.
Types Of Payment Gateways
Different payment gateways serve different business needs. Here are the most common types that you should know about:
1. Hosted Payment Gateways
These gateways redirect customers to a third-party payment page to complete transactions. They are easy to integrate, making them ideal for businesses new to web development.
2. Self-Hosted Payment Gateways
With self-hosted gateways, businesses collect customer payment details on their website and send them to a third-party payment processor. This provides better control over branding but requires robust security measures that expert web development specialists can implement.
3. API-Based Payment Gateways
API-based gateways allow businesses to customise payment processing on their website. While they offer a seamless user experience, they require advanced security protocols that experienced web development services can ensure.
4. Local Bank Integration
Some businesses integrate payment solutions directly with local banks for trust and ease of transactions. Firms investing in web development can benefit from localised solutions tailored to customer preferences.
Popular Payment Gateways Compared
Stripe
- Best For: Ecommerce, Flexible ecommerce, bespoke websites and businesses wanting more control
- Payment Methods: Cards, Apple Pay, Google Pay, PayPal, Klarna, Link.
- Typical UK Fees: 1.5% + 20p for standard UK cards
- Integrations: Hosted, embedded & API
- Recurring Payments: Yes, with Stripe Billing supporting subscriptions and recurring payments.
- Shopify & WooCommerce: Yes. Stripe is integrated with both platforms.
PayPal
- Best For: Businesses wanting a familiar payment brand and easy online checkout
- Payment Methods: PayPal, cards, Apple Pay, Google Pay, Pay Later
- Typical UK Fees: 2.9% + fixed fee
- Integrations: Hosted, embedded & API.
- Recurring Payments: Yes, including subscription and recurring payment options.
- Shopify & WooCommerce: Yes. Can be added to both Shopify and WooCommerce stores.
Worldpay
- Best for: Established and higher-volume businesses
- Payment Methods: Cards, Apple Pay, Google Pay and other digital wallets
- Typical UK Fees: From 1.3% + 20p
- Integrations: Hosted, embedded & API
- Recurring Payments: Yes, including recurring and subscription payment capabilities.
- Shopify & WooCommerce: Yes. Worldpay offers integrations for both Shopify and WooCommerce.
Adyen
- Best For: Growing or international businesses needing multiple payment methods
- Payment Methods: Cards, Apple Pay, Google Pay, PayPal, Klarna and more
- Typical UK Fees: £0.13 + payment method fee
- Integrations: Hosted, embedded & API
- Recurring Payments: Yes, including recurring and subscription payments.
- Shopify & WooCommerce: Shopify integration is available, while WooCommerce can be integrated using Adyen’s payment solutions
SumUp
- Best For: Small businesses wanting straightforward online payments.
- Payment Methods: Cards, Apple Pay, Google Pay.
- Typical UK Fees: 2.50%.
- Integrations: Hosted & API.
- Recurring Payments: Payment links and billing tools are available.
- Shopify & WooCommerce: Integration options are available, but the exact setup depends on the SumUp product.
GoCardless
- Best For: Recurring payments, subscriptions and regular invoices.
- Payment Methods: Direct Debit, PayTo and bank payments
- Typical UK Fees: From 1% + 20p
- Integrations: Hosted & API
- Recurring Payments: Yes. Recurring payments are one of GoCardless’s main use cases.
- Shopify & WooCommerce: Integration options are available.
Square
- Best For: Small businesses wanting online and in-person payments
- Payment Methods: Cards, Apple Pay, Google Pay, Cash App Pay
- Typical UK Fees: 1.4% + 25p
- Integrations: Hosted, payment links & API
- Recurring Payments: Yes, including recurring payments through supported Square products.
- Shopify & WooCommerce: WooCommerce integration is available, while Shopify compatibility depends on the payment setup.
Primary Features To Look For In A Payment Gateway
Choosing the right payment gateway depends on different factors. Below are the key features to consider:
1. Review The Provider’s Settlement Time
Timely settlement can improve your company’s cash flow. Always consider a payment gateway provider with quick settlement times. This will make sure funds are deposited in your account quickly and let you manage your finances more efficiently.
2. Look Into Fraud Detection Capabilities
Advanced fraud detection features protect businesses from fraudulent transactions. Working with a web development agency ensures strong security measures.
3. Inspect The Provider’s Reporting & Analytics
Comprehensive reporting and analytics are critical for understanding your company’s financial performance. To make informed decisions and optimise your business strategies, always look for a payment gateway provider with detailed transaction reports, revenue tracking, and customisable analytics dashboards.
4. Evaluate The Provider’s Downtime History
Technical issues or frequent downtime can disrupt business operations, leaving customers dissatisfied. So, investigate the payment gateway provider’s uptime and reliability track record. Then look for a provider with minimal downtime and prompt issue resolution to ensure your customers’ payments are processed without interruption.
What Happens When A Customer Makes An Online Payment?
When a customer makes an online payment, the payment gateway securely sends the payment details filled in by the payment method to the relevant bank for processing. The transaction is checked and either approved or declined.
If the payment is approved, the payment gateway updates the order. A payment gateway will use webhooks to send information back to a website when the status of a payment changes.
For example, once a payment is successfully processed, the gateway sends a notification to the website. The website can then update the order as paid, trigger an order confirmation email and allow the business to continue with fulfilment.
Why Work With A Web Development Agency For Payment Gateway Integration?
Integrating a payment gateway requires technical expertise to ensure security, efficiency, and compliance. Below are the reasons why hiring professionals for web development is beneficial:
1. Secure & Customised Solutions
An experienced web development team ensures payment gateways are always tailored to your business needs while maintaining security standards.
2. Seamless User Experience
Remember, a poorly integrated payment gateway can frustrate users. Skilled web development services optimise processors for a smooth checkout experience.
3. Ongoing Support & Maintenance
Payment gateways require updates and security patches. Yes, hiring experts in web development ensures continuous maintenance.
4. Compliance With Regulations
Different regions have specific regulations for online payments. A professional web development agency ensures compliance with legal requirements.
What Is The Difference Between Payment Authorisation, Capture & Settlement?
The customer’s bank confirms that the payment can be made. The funds may be reserved but haven’t been transferred to the business.
The business requests the funds, moving the transaction towards completion. Some payment gateways capture payments automatically.
The payment provider transfers the funds to the business’s bank account.
What Is The Best Payment Gateway For My Business
The best payment gateway depends on your website platform, the payment methods you want to accept and how much control you want. A plugin may be suitable for a standard ecommerce website, while a custom API integration may be better for a business with more complex payment requirements.
At Cefar, we can help businesses integrate payment gateways into e-commerce platforms, creating secure payment solutions that work with websites and businesses.
How To Strengthen Your Website With Secure Payment Options
A reliable payment gateway is crucial for business success. Investing in an expert web development agency will help with secure, fast, and user-friendly transactions. Partner with Cefar, a leading web development solutions provider, and create a smooth payment experience for your customers.
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Payment Gateway FAQs
What’s The Cheapest Payment Gateway In The UK?
Square and Stripe are the cheapest options, but there isn’t a payment gateway that is cheaper for every business. Fees vary by provider, payment method, transaction value and monthly payment volume.
A gateway with a lower percentage fee may have a higher fixed transaction fee, while international payments and additional services can also affect the overall cost. So look at all the payment methods you need first and compare which will be cheaper overall.
Is Stripe A Payment Gateway Or A Payment Processor?
Stripe is both a payment gateway and a payment processor. Stripe has functionality to do both. Its gateway securely passes payment information between your website and the payment infrastructure, while its processing services handle the transaction.
Stripe also has tools for subscriptions, fraud and payment management. Businesses can manage multiple payment processes through Stripe.
How Long Do Payment Gateway Payouts Take?
Different payment gateways will pay out at different times depending on the provider. Most providers complete the transfer within a few business days, between 3-5 days. But each provider will clearly state this before you sign up.
Payment processing and pay-out are different. A payment can be completed by the customer before the funds reach the business’s bank account
How Much Does Payment Gateway Integration Cost?
The cost of integrating a payment gateway depends on the platform your website is on and how complicated your requirements are. Installing payment gateways in Shopify or WooCommerce websites is often an app or plugin, making it more affordable.
Additional payment methods, subscriptions, currencies and integrations can also increase development time and the cost of integrating a payment gateway.
Can I Accept Apple Pay And Google Pay On My Website?
Yes, many payment gateways support Apple Pay and Google Pay. These are payment methods rather than payment gateways and let customers complete payments using payment details stored on their device.
They are useful for mobile ecommerce stores because customers can complete checkouts without manually entering their card details.
