How to Create a Payment Gateway (2024)

FAQs

How can I make my own payment gateway? ›

Test that all payment options are valid and functional and that payments trigger corresponding steps in the process. Check successful transaction messages to both the merchant and the customer. Be familiar with all of the terms in the gateway system.

Compliance with industry standards

Secure payment gateways adhere to PCI DSS and other relevant industry standards, ensuring that they maintain a secure environment for processing, storing, and transmitting cardholder data.

Payment gateways are a merchant service that processes credit card payments for both ecommerce sites and traditional brick-and-mortar stores. They can be thought of as the metaphorical cash register in an electronic transaction. However, like any cash register, it needs to be secure and convenient.

Payment gateway charges are calculated as a percentage of an online payment amount and vary according to the type of online payment methods used by the customer.

Simply put, a payment gateway is a solution that securely reads and transfers a customer's payment information to a merchant's bank account—both for online and in-person transactions.

Acquirer processor — technologic partner of the acquiring bank, usually responsible for the payment gateway and POS processing.

How do I implement a payment gateway for my website? ›

Disadvantages. Payment gateways can be expensive. Transaction fees are usually charged on each transaction and additional monthly fees may apply. Payment gateways may require merchants to organise their own PCI compliance.

The most important thing you need to consider while choosing a payment gateway is the total cost that you'll incur. The costs involved in using payment gateway comes in three types: set-up fee, monthly fee, and transaction fee.

One of the primary limitations of payment gateways is transaction speed. While advancements in technology have significantly improved transaction times, delays can still occur due to various factors, including network issues and the need for multiple verification steps.

Payment gateways are typically bundled with payment processing services and usually involve a monthly subscription fee and a per-transaction fee. Subscription fees can cost anywhere from $0 to $99 or more each month. Per-transaction fees can be flat-rate or interchange-plus.

PayPal can be both a payment processor and payment gateway. If you want to use your own payment processor, you can just use PayPal's payment gateway Payflow. If you'd like both payment processing and payment gateway services, you can use the PayPal Commerce Platform. Learn more in our PayPal review.