What is a Payment Gateway?

A payment gateway is the secure service that moves money from your customer to you during online checkout. It encrypts card details, verifies funds with the customer’s bank, and confirms whether the transaction is approved—all in a few seconds.

Why Payment Gateways Matter

• Provide PCI-compliant security so you don’t store sensitive data
• Support multiple payment methods: cards, wallets, bank transfers, even buy-now-pay-later options
• Enable global sales with currency conversion and localized payment flows
• Handle subscription billing, refunds, and reporting for membership sites or high-ticket offers
• Integrate with your cart, LMS, or community platform through APIs and webhooks

Popular Gateway Options

• Stripe: Developer-friendly, global reach, recurring billing baked in
• PayPal/Braintree: Familiar to consumers, supports PayPal balance and cards
• Square: Ideal for hybrid businesses mixing offline and online sales
• Authorize.net and legacy processors for enterprise or specialized needs

Key Features to Evaluate

• Security stack: encryption, tokenization, fraud detection, dispute management
• Fees: per-transaction percentage + fixed fee, plus extras for currency conversion or chargebacks—use the Stripe Fee Calculator to check net payouts before choosing a processor
• Payout schedule and cash-flow timing
• Native support for subscriptions, trials, and tripwire pricing
• Dashboard and export tools to sync with accounting and automation workflows

Implementation Tips

• Match gateway coverage to your audience—some services don’t support every country
• Keep billing descriptors consistent to reduce refund or chargeback risk
• Set up automated dunning emails and card-update flows to prevent involuntary churn
• Review transaction logs regularly for failed payments or suspicious activity
• Document your integration so future team members understand how revenue flows