Payment Gateways are the mechanism for website owners to receive payments for their products and services.
Most people have heard of Paypal either when using it on Ebay or if they are a regular buyer of online products.
What most people don’t realise is that Paypal is different to most other online payment processors. They perform two functions.
The first function is to process payments on a secure system where all the credit card details are encrypted and are secure for the purchaser.
The second function is the collection of money into an account. In the case of Paypal, they have their own account system.
You can either keep the money in Paypal or you can request a transfer which takes 3-5 days depending on your bank.
The positives for Paypal are that you can set up an account fairly easily.
Simply log onto Paypal, fill in your details and then you need to verify your attached bank account.
They send you a small amount into your bank like 2 cents and 3 cents. You log back into the Paypal account say how much and when you received the amounts and your account is ready to go.
You don’t need credit applications or a lengthy application process. There are no monthly fees, you pay a percentage when the transaction occurs.
The negatives for Paypal are:-
The payment page has limited customising options. All you can do is change the header on the payment page.
It remains in the Paypal format. Customers sometimes don’t see the “use a credit or debit card” option and this can result in abandonment when checking out.
The percentage of 2.75 is quite high if you have $5,000 plus per month in payments.
Bank and Eway
Eway is a well known payment processor and let’s you link up with the bank of your choice in Australia.
The positives for Eway are that the developer can customise the page which fits in with the website and credit card acceptance is obvious.
You can negotiate with your bank for about a 1.1% per transaction. There will be a monthly fee as well of about $20. You will need to pay Eway a yearly fee and a very small transaction fee.
Eway and your bank work well for those with larger turnover and for those customers who have more focus on the way their payment gateway looks and the importance of customisation.
E-Path is a system that works well if you already have a merchant account.
You will need a dedicated IP and an SSL certificate on your website, and a small yearly fee for E-path.
The normal merchant fees of about 1.1% apply. The payment page is customisable and works with most shopping cart types.
For more information about payment gateways, see our payment gateways information page on our website.