The payment gateway for a website, an online store in USA and Europe

The payment gateway for a website, an online store in USA and Europe

Accepting payments on a website is an essential need for online stores. But there is always a question of how to start it and which provider to select. This Maxpay article will explain how online payment gateways work, how to implement them on a website, and which provider to choose.

What is a payment gateway?

A payment gateway is a web-based tool that facilitates online payments on the eCommerce website. It is responsible for the first step of the payment procedure: data encryption and data redirection to the payment processor. It is important to note that a payment gateway does not have a visual interface visible for a customer. Only the check-out page gives a point of interaction via the purchase button, and all the other work happens in the website’s background.  Let’s see an example for a better understanding.

We have a customer who selects various online store products and puts them into the basket.  Then on the check-out page, this customer inserts the shipping information and the billing data. When the order is confirmed, and the button of purchase is pressed, the payment system takes over. At that moment, the whole transaction process begins. Its goal is to redirect funds from a personal eWallet of a customer to a merchant account in a secure way. 

Transaction flow in the online store

Stage 0Order placed by a customer and a purchase activated
Stage 1Payment gateway encrypts the billing data and redirects it to a payment processor
Stage 2The payment processor communicates the data to an acquiring bank of a merchant
Stage 3Acquiring bank contact the card brand such as Visa, MasterCard or Discovery of the given transaction
Stage 4Card brand contacts a customer’s bank issuer in order to confirm identity and funds availability
Stage 5Issuing bank provides the requested info and confirms or declines the funds’ flow
Stage 6The information redirects back via secure networks to a payment processor
Stage 7The payment processor sends a message to a payment gateway which displays it on the website as success or failure of payment

Why is a payment gateway essential for an online store?

Any online business that aims to accept electronic payments on a website should implement the payment system. And it happens to be so that a payment gateway is the first step of a transaction flow and an essential tool to connect to a payment processor. In simple words, a payment gateway creates a bridge between an online store and internal banking networks to facilitate a purchase.

How to implement a payment gateway on the website?

First of all, a business owner must obtain a merchant account to accept electronic payments. Then a merchant should have a partnership with a gateway provider, which can be the same as that issued a merchant account or a different one.

Basically, there are three institutions that can implement a gateway: an acquiring bank, a payment service provider, a payment gateway provider. Acquiring banks are the most traditional organizations, they do require heavy documentation and demand long-term partnerships, but they are the only ones that can provide payment systems for retail.

Payment service providers basically offer all the same financial products as acquiring banks, but they work only with eCommerce. PSPs require less documentation and also cost less in return. Payment gateway providers also partner just with online stores, but unlike PSPs, they provide just payment gateway solutions.

Provider recommendation

If you are looking for a reliable and secure provider, we recommend Maxpay. It provides businesses with merchant accounts and payment solutions for websites. Maxpay is compliant with global payment regulations, and it has its fraud prevention system, which makes it extra secure. Each provider’s client gets an assigned personal manager that will be there for any question. To find out more, please contact the sales team.


Which payment gateway is best for an online business?

We recommend checking out Maxpay.  A payment gateway service provider can implement the whole payment cycle on an eCommerce website. Maxpay works with merchants in the EU, UK, and USA. Maxpay is GDPR, ISO 27001 certified

How do I add an international payment gateway to my website?

To do so, a merchant should have a contract with an acquiring bank or a payment service provider. Then payment systems can be implemented in an online store. We recommend Maxpay as a reliable PSP with 7 years of experience.

Which payment gateway is best in Europe?

This really does depend on the business needs. Here we have an article that compares the top 5 payment gateways for online stores depending on the various eCommerce-important factors.

Which is the best international payment gateway?

There are a lot of payment gateways that are attractive. Here we have an article in which we compared the top 10 gateways based on the business needs. Check it out in order to select the most suitable for you.