online payment gateway, best payment gateway, international payments

We are living in a connected world. Internet speed is faster than ever and all our friends and family are using the internet. Technology has really made financial transactions very fast. Payment gateway is also one of the many mediums available. It allows accepting online payment from customers. You can receive payments via credit card, debit card and internet banking. This is also among one of the fastest modes of transaction today. You can also accept international payments from the website. Normally you need a payment gateway for an ecommerce website. However there is no such restriction for this. You can use it for Online Education Platforms or to accept payments via payment links.

Read the complete article to know more on this topic.

How  Payment Gateway Works

First of all a company makes connections with financial institutions There is a contract and legal documents in place to ensure safety. Security and privacy is important when making online payments. Therefore, the platform must be secure. Companies know this before they develop a software application to accept payments online. The software creates connections to the bank software to accept payments online. The transaction type in this case is business to business or B2B.

After doing this setup the next step starts. The gateway company contacts individual business owners with ecommerce websites. Therefore, these customers get already established software for accepting online payments. The software works as a bridge between customers’ websites and banks. Real payments happen on bank websites. Due to this gateway company ensures security of the transaction.

Payment transfer also depends on agreement between payment gateway companies and individual customers. Normally the final amount transfer to the customer’s bank takes 2-3 days.

What is a B2B Model?

Many companies buy payment gateway for B2B payments. The full form of B2B is Business to Business. In this B2B system a transaction happens between two businesses. Types of transactions do not matter much due to the definition of B2B. If you want to buy wholesale food or look for wholesale clothing the rules do not change. The transaction between two businesses is known as B2B.

What is the purpose of a payment gateway?

In simple words, payment gateway companies help you do online payments. For example you want to purchase online from an ecommerce website. The ecommerce companies ask you to make an online payment using a “Checkout” or “Payment” button. You click on the payment link or button but the transaction does not happen on the website. They redirect you to a secure payment link. This is the whole purpose of the payment gateway. You can make secure payments from your debit / credit card and internet banking. Payment gateway companies also rely on bank security for added protection. They work as a bridge between ecommerce websites and banks.

What is the role of payment gateway in online credit card processing?

The main role of an online payment gateway is to approve the transaction process between merchant and customer. As mentioned above, payment works as a bridge for making payment. Due to this it plays a vital role in the online transaction process. First of all It authorizes transactions between merchants and customers after customer authentication. Later it settles the funds to the merchant account. Once you make payment via credit card, the payment gateway holds it for at least 2-3 days. This is an added assurance to customers. In this case customers can expect a fraud transaction refund fast.

How to choose the best payment gateway for business?

Consider these points before getting into an agreement.

  1. First of all check for the company’s previous track record.
  2. Search for reviews and customer experiences.
  3. Cross check company details to ensure it is authentic.
  4. Read terms and conditions before you complete the sign up form.
  5. Check how many banks and financial institutions are linked. Go with the company with maximum options. This is also good for your customers.

What are Standard Payment Gateway Charges?

Payment gateway charges depend on the country you live in and the payment gateway company. Some countries have tax on online payments due to which companies pass on this tax to customers. Additionally, payment gateway company charges also apply depending on the business model. In most cases Payment gateway fee is on making a transaction online. This online payment fee is different for different companies. Additionally, this charge also applies to every financial transaction. Gateway company transfers money to your bank after deducting commissions. Above all. There are taxes or service charges as well. Therefore, clarify this before completing the signup form.

Generally, companies charge 1-3% of sales on every transaction. You can also negotiate if your website generates good revenue.

How to Accept International Payments?

If you want to sell products in the international market then you must install a payment gateway on the website. Once this is done, you can accept international payments directly to your bank account. You can also take payment gateway for international payments. The most easy way to accept international payment is PayPal. The charges are little more but it offers great convenience. You can also select other companies like Stripe and Razorpay.

List of Payment Gateway Companies

There are many companies working in this field. Everyone has their own associations. Additionally, all of them are connected with Visa and Mastercard along with internet banking. With most of them you can send payment links also. Payment links offer direct payments. You do not need to redirect customers to your website. Therefore, you can raise invoices directly from the portal. There are many gateways but the list mentioned here is based on personal experience.


Pay Pal needs no introduction. It is a well established brand that accepts international payment. Paypal also has a presence worldwide with almost all currencies covered. If you want an easy to use option this will be the first pick.


Stripe payment gateway is also among one of the best in the list. You can accept payments from anywhere. Documentation process is also online like PayPal. Due to this you get a hassle free service.

CC Avenue

CC Avenue is one of the most famous and old names in the payment gateway industry. This is an Indian company based in Mumbai. When you go with CCAvenue you can accept payments via Debit / Credit cards linked with VIAS, MasterCard and Internet banking. You can also provide EMI options on credit cards at 18% interest rate. The rate may be different depending on your agreement with them.


Razorpay is one more India brand with large payment options. This is not a very old company but well connected. Therefore, you get payments via internet banking, debit card, credit card, visa, Mastercard etc. Razorpay also allows you to accept international payments. Surely, Razorpay charges for international payments are higher than standard charges. The difference is due to the currency conversion cost and taxes. You can check the razorpay website for more information on this.

Payu is an India based company. If you compare with others from the list, this offers less options. But the available one works seamlessly.

Frequently asked Questions

These are some common questions about ecommerce websites.

How much time is needed for approval?

Normally, the approval comes in 2-3 days. However, the time may be different for every company. Therefore, we normally consider 1 week to complete the process.

How do I submit Documents for payment gateway?

Companies like Razorpay, Stripe and PayPal have online document submission procedures. Very limited companies ask you to courier the documents. Therefore, you need to check before you make a final decision.

Do payment gateway companies take renewal charges?

Some companies take and so do not. This depends on the company you select. Most of them offer payment gateway service free. Some companies charge a minimum amount as annual maintenance charges. The primary source of earning is transactions on your website. If a transaction happens they take the commission.

What documents are required for getting a payment gateway?

Getting a system for accepting payments online is easy. Most documentation processes also happen online. The documents required for payment gateway depends on your organization type. For example, you want a payment gateway for an NGO. Your document requirement list will be different from the document required for payment gateway for a private limited company.

What are standard payment gateway transaction charges?

Standard transaction charges vary company to company. They can charge anywhere between 1.25 to 3%.

What is the per transaction charge in the payment gateway?

Transaction charge is the primary income source of gateway companies. Whenever someone makes a purchase on your website they charge you a fixed percentage. This percentage or cut from the total amount is transaction charge. The Remaining account gets transferred to your bank account.

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