TradeMySite - Top 10 Payment Gateways for E-Commerce Stores | Blog

In computing (or, telecommunications), a gateways is a software or a hardware device that facilitates communication between web clients & web servers or between a website & its’ visitors or it can also be used to ensure interoperability between different network (s).

In networking, a gateway is a hardware device that is mainly used for protocol conversion, fault isolation, signal translation & for performing various others networking activities. Semi- analogous to this is a payment gateway, which is a software tool or an E-Commerce service mainly used to facilitate the transaction (s).For an e-commerce store to function to its full capabilities, it must have a secure, reliable, authentic, & most importantly, a cost-effective payment gateway so that visitor (s) or merchant (s) can securely  pay via your website using credit card (s), debit card (s), gift card (s) & other online payment mode (s).

How does payment gateway work?

Payment gateways are basically software (s) (or, servers) that process our transaction (s). Whenever a user tries to place an order on our website, the following steps are performed:-


The user is asked to fill up a form, which basically comprises fields such as, name, location, type of product, card type (Master/debit/Discover/American card, credit card), card number, CVV number & similarly related fields. The flow of information from a web browser to web server & back to the web browser is taken care of by SSL encryption. SSL, is abbreviated for, secure socket layer.

Security is an essential component during transaction processing because sensitive information such as debit/credit card numbers need to be protected from unauthorised access. The “card association” has specified a set of rules, regulations and security standard (s) which must be adhered to by the person having the access information including payment gateways. These set of rules & regulations are defined under the PCI-DSS or PCI compliance. PCI-DSS is abbreviated for, Payment Card Industry Data Security Standard.

Nowadays, all E-commerce website (s) are using AJAX (Asynchronous JavaScript) and XML. AJAX is a part of inter-related technologies such as, HTML, JavaScript, XML, CSS & many more. The key feature of this language is that we can send & receive data asynchronously without reloading the whole page. This feature is essential as it helps in reducing “Time and space complexity”, which again is a viable factor in ensuring the performance of the application (s). So message from XML encoding standard, ISO: 8859 is converted by payment gateway to ISO: 8583.


When the user has filled in the complete card information, the credit/debit card issuing bank receives the authorization request, verifies it and then sends a response with the response code (i.e., success or failure) to the user. If the success of the transaction is a failure, the cause and type of error are also communicated to the user.


Order submission is normally done with the help of ‘HTTPS’ protocol, which stands for secured Hypertext transfer protocol.

One important thing to be kept in mind here is that, if the payment orders are not retrieved in a logical fashion, this will result in anomalies in your website, which in turn might impact your sale to a relatively higher extent, with customer dissatisfaction ever-increasing. It is, therefore, very crucial to make an ideal choice between the different payment gateways available for guaranteeing the long-term success of your online marketing & business.  To cater and meet the demands of your ever-expanding online business it is very important that you choose your payment gateway wisely. Below is a list of ‘top 10 payment gateways’ among which you can choose one that best suits your business requirement.



Paypal has its inception since December 1998 but it was fully developed to execute its functionalities in 1999. It is one of the widely preferred payment gateways in that it accepts both credit/debit card payments.


  • With PayPal, you can receive payment (s) from 200+ countries even if you don’t have a PayPal account.
  • Paypal doesn’t require any setup/gateway/monthly fees. The best part is that you’ll be charged only after you’ve made a sale.


  • You’ll be charged ‘4.4+$0.30 USD’ as a transaction fee.
  • Paypal sets random transaction limits on user’s account (s).
  • Sending money with PayPal from India is a bit cumbersome/time-consuming as it doesn’t support every banker’s card.



Founded and launched in 1996, is one of the most preferred mobile payment gateway for small business.


  • It has around 4,00,000 users.
  • Business enterprises can make/receive payment (s) through smartphones.
  • It accepts online payments through electronic checks and credit cards.
  • Using, the cardholder data (i.e. the last transaction history) is not stored on the user’s device, so data is secured.


  • One needs to pay $49 and $29 as setup and monthly gateway fee respectively.
  • The UI (User Interface) of is difficult to navigate.
  • was mainly targeted for Apple iPhone users. Android users must have Android tablets, 7 to 10 inches with Android version 2.2 & later installed in them.



Founded in 1999, offers its services in more than 196 countries & mainly accepts credit card payments.


  • You need not pay any monthly & setup fee.
  • You can easily integrate this gateway with your website along with tonnes of other shopping carts.
  • With checkout payment gateway, you’ll be able to use 15 different languages and 26 currencies.
  • You can fully modify checkout to fit your business by changing & customising the size and appearance of themes.


  • 2.9%+30 cents for every transaction.



Founded in August 1997, it offers online shopping carts and electronic services.


  • It is also suited for mobile payments.


  • One needs to sign up as a user on in order to process his/her credit card payments.
  • You have to pay ‘25%+$0.25’ as per transaction fee.
  • You also have to pay $400 for terminating your services before the expiration of your service agreement with



Braintree, a subsidiary of PayPal, is based in Chicago and is specialised in providing mobile and web-based services to a multitude of e-commerce website (s)/store (s).


  • Braintree will process your first $50,000 payment without charging any fee. This makes it one of the most preferred payment tools over several others.
  • Braintree is known for its more reachable customer service.
  • It supports more than 42 countries.


  • Braintree supports a large number of currencies but you need to create a different Braintree account id for each currency.



It has its inception since 1969 but started providing its services to their full functionality since 1998.


  • More than 45% of US transactions (both, credit & debit) are being handled by it.
  • It has more than 6 million users.
  • It includes debit/credit/gift/prepaid cards.


  • Per transaction fee, monthly set up fee is quite high.



Stripe is an Irish-based company which is currently operating in more than 25 countries.


  • More suitable for small enterprises/companies which have recently started their business.
  • If some of your clients open a dispute against you, stripe will refund chargeback fee of $15 if the dispute goes in your favour.
  • Stripe has integrations with PayPal and Dowla and has a very easy-to-use SDK enabling you to deliver secure one-click payments.


  • The processing fee is 2.9% of transaction amount+ 30 cents per transaction, which is comparatively higher as compared to Braintree.



If you’ve just started a new firm and have a limited budget then is best suited to cater your needs.


  • Setup fee is free of cost. Also, the cost of monthly gateway fee is $10.
  • It is currently serving more than 5200 shopping carts & takes less than an hour to get installed.


  • It is only applicable for credit-card processing.



It is a Sweden based company which started in 2007. This is again another payment gateway which is best suited for small-size enterprises.


  • Smartphone enabled. It offers e-retailers with more than 21 payment options.


  • Users/retailers have to go through the sign-up process which may be time-consuming. This will end up with your user (s) having to fill up unnecessary fields.



Chronopay is headquartered in Amsterdam and is one of the eminent service provider desks in the European markets. It accepts payments via all bank cards (like VISA, America card & many others.)


  • Chronopay has met the highest security standards as is required by the major credit card organizations.
  • There is no setup and monthly installation fee i.e. you can connect to Chronopay for free.


  • You have to pay a regular commission to Chronopay based on your monthly turnover.