Types of Payment Gateways

Different Payment Gateways

Recently, online business has been a common issue to most people in the market. Therefore, having a good understanding of the method payment that you want to operate with is very essential. This will lead to smooth running of the business. There is a number of payment gateways that operate online and can make the better option as per your regards. These respective gateways are explained below;

Categories of Payment Gateways

Hosted Type of Payment Gateways

This category of payment gateway carries its transactions outside the customer checkout page. Each time the respective customer the button indicated as pay now on his/her website, he/she is directed to a service provider on the payment section (page). Here, the customer is supposed to do filling up of his/her details of the payment made and then directed back to his/her website to finish this checkout steps.

The second option for this category of payment gateway is the process where the customer uses an inline frame that is created by the service payment provider that is inserted to the customer’s website by a merchant store. This merchant is capable of accepting debit card and credit card by not necessarily having to store card details or capture the card to your respective website. This payment detail is recorded down by this inline frame and then hosted by the payment service provider for purpose of receiving the data each time when a customer fills up this form.

For the case where the payments are recurring, a user profile containing details of the number of occurrence of the amount, count and much more. This payment gateway has an ability to make deductions for this recurrence in assistance with the profile that is created which it transmits to the customer’s website.

Examples of this category payment gateways are 2Checkout and PayPal standard.

Self-Hosted category Payment Gateways

Here, you are required to request for the payment information from the respective users using your individual website after which you send the information that receives to the perspective URL of the payment gateway. However, this date can be required in a certain type of format by some gateways, but others only need only the secret key or a hash key.

For this type of payment gateway, recurring issues are deducted by the payment gateway on your following payments and send you the notification of the deduction.

An example of this type of payment gateways is PayPal Website Payment Pro.

Non-Hosted Payment Gateways

In this type of payment gateways, customers are guaranteed freedom of entering the debits cards or credit cards details directly to their respective checkout page and request the payments by the accepted HTTPS queries or their individual API’s. It also allows fixed payments and recurring.

An example of this type of payment is Stripe.

Local Bank Integration

This type of payment gateways is taken to be hosted payment gateways that the one that does its services in a clear manner. Here, a customer is directed to the website of payment gateway where he/she fills his contact information and payment details. After she/he has made payment, the next step is to go to his/her website where notification information is sent for further guidelines. However, it does not allow cancellation, refund and also recurring payments.

An example of this type of payment is Bank Audi.

Direct Payment Gateway

This one is known for not allowing immediate notifications for any payments.  Their response is whether your credit card is valid or not. However, they do ask details on the customer’s website and do accept recurring payments and fixed payments.

A good example of this type of payment is Pay Flow Pro.