To complete an online transaction, a customer's credit card information
is required. The information is then processed, verified, and funds are safely transferred to the merchant account.
A merchant account is issued to a business owner by a payment processing
company or a bank. This merchant account allows their businesses to accept online payments.
The money your customer transfers is received by the issuing company or
A payment processor then manages the transaction between the issuing bank
and the customer's account. A payment processor is a financial institution that monitors security, available funds, credit card validity, and other factors.
It is also in charge of verifying that the credit card information is
correct. Some of the best payment processors also have security protocols in place to prevent fraudulent activities.
The payment gateway, which is an online point of sale, is the next critical
component of an online payment platform. Customers make online purchases from your ecommerce store using debit or credit cards.
When customers make a purchase and click "check out," the
payment gateway collects their credit card information and redirects them to a payment
This payment page sends the customer's information to the payment gateway
As direct bank transfers are not permitted, a payment gateway is required
for internet payments. A payment gateway ensures that a merchant receives funds from a customer in a secure manner.
What Is the Importance of Online Payment Processing in Ecommerce?
Because of your company's exponential growth, you will be selling your
products in international markets. The next critical step is to set up your ecommerce store to sell your services or goods to customers all over the world.
The days of manually processing payments are long gone. Rather, whether
you own a small or large company, you must integrate an online payment gateway into your ecommerce store for online payment processing.
Online payment processors handle all types of transactions. A payment
processor, for example, ensures that your company receives funds on time. A payment processor will assist your business in managing all types of payment
collection, from international or cross-border payments to handling local transactions.
When you have a payment processor, you can easily process credit card
payments and other online transactions. Payments are processed and transferred from the consumer's account to the merchant's account by an online
Some of the best online payment gateway
processors not only assist your customers with transactions, but also offer them a variety of alternative payment methods and customized payment solutions.
Hundreds of payment processors are offering their services in response to
the rapid growth of ecommerce stores and the digital payment industry.
Shopify Payments Philippines Payments Costs & Pricing
The cost of handling payments is an important component of the payment
processing equation. Every participant in the transaction charges a fee for managing payments and supporting the process. The card-issuing bank, the
credit card association, the payment processor, and your bank are all key players in the process.
You must deal with the following costs in the form of fees in every single
Interchange Fee -
A percentage of the transaction amount charged to the issuer to benefit
from each processed transaction. This fee, known as interchange, is determined by the industry niche, the purchase amount, and the type of credit card
used in the transaction.
Assessment Fee -
The assessment fee is the fee charged by the credit card association to
manage payments and facilitate payment transfers across the network. This fee is typically a fixed percentage of the total transaction volume.
Merchant Bank Fee -
Typically, your bank will charge a percentage of the total amount to
facilitate the transaction.
Fixed Authorization Fee -
The core payment processor charges a fixed dollar amount to process the
transaction. Whether the transaction is accepted, declined, or returned, this fixed fee is an important part of the payment management equation. Depending
on your payment provider, this fee may also be associated with monthly usage, general setup, and payment cancellation.
The percentage-based fee is bundled together to charge you a single fixed
rate for the transaction in a traditional pricing structure, whereas the transaction fee is mentioned separately based on the nature of your products
Before selecting a payment solution for your company, make sure it accepts
a diverse range of alternative payment methods. Because customer conversion is critical to the growth of small businesses, you must provide them with
very convenient alternatives.
Furthermore, the online payment solution for small businesses and
large-scale e-commerce stores supports a variety of interfaces such as mobile, desktop, television, and so on, allowing customers to pay through any
However, due to the prevalence of theft and data breaches, many customers
do not trust online payment platforms.
PayCly serves thousands of merchants in many countries and facilitates
global transactions worth billions of dollars. The company works with both small and large businesses, assisting merchants in expanding their reach and
revenue. PayCly has worked with thousands of businesses with high risk merchant account
and provided them with maximum transparency.
Suppose you want to grow your company over time. In that case, you can
eventually offer more convenient payment methods to international customers without having to change your payment acceptance methods.
This is why, if you want to grow your business, you must be aware of a
suitable payment gateway for small businesses. So, what exactly is a payment gateway, and how does an online payment platform function is an essential
aspect to collect online payments for your business.
Which payment gateway is best for Philippines?
Here are some of the best payment gateways in Philippines.
Xendit is a Jakarta-based digital payment infrastructure that was launched
in 2015. Since its inception, Xendit has expanded rapidly and begun to establish itself as one of the country's leading payment gateways. They strive
to make payment transactions as simple, easy, and secure as possible for all buyers and sellers.
- Designed for small and medium-sized businesses.
- Even if you don't have a website, you can get started by integrating with popular plugins or API integration.
- API integration is completely free of charge.
Dragonpay was a market pioneer at the beginning of the popularity of
online shopping in the Philippines. As this trend continues to grow in the country, Dragonpay continues to expand its payment methods, which include
over-the-counter for banking and non-banking, online banking, cash on delivery, and e-wallets.
Unlike other payment platform alternatives, Dragonpay's Recurring Payment
provides you with benefits such as a wider market reach, no chargeback/fraud, and low and fixed transaction fees.
PayMongo offers credit cards, debit cards, and e-wallets, it can benefit
both individuals and businesses. Because there are no set-up, one-time, or monthly fees, this payment gateway is essential for online sellers or big
- Non-monthly subscriptions - you can only pay when the transaction is completed.
- With their advanced detection engines, they protect you from fraud.
- Integrate seamlessly with your website or app.
Which is the best gateway for payment?
PayCly is the best online payment solution for small businesses because
it will assist in resolving initial payment issues that many startups must resolve on their own. As a result, it functions as an all-in-one online
payment solution for business needs.
A small business must accept alternative payment methods in order to grow.
If your customers do not accept MasterCard or Visa and you do not provide alternative payment options, you may lose potential customers. PayCly is one
such online payment platform that has made card payments easier by providing alternative payment methods.
Which payment gateway is cheapest?
Some gateways are expensive while others are less expensive. It is not
like expensive gateway will always be the best fit for your business. It is the requirement of your business that will tell you which payment gateway is
best fit for your business in a cost-efficient way.
What is international payment gateway?
An international payment gateway allows your customers to make cross-border
payments using their preferred payment method securely and safely. When you expand your business globally it is essential that your customer can conveniently
shop from your store. A global payment gateway allows you to accept different types of payments irrespective of the issuing bank.