In today’s digital world, eCommerce has become an essential part of our lives. With the increasing number of online shoppers, it is crucial for eCommerce websites to offer a seamless and secure payment experience to their customers. This is where payment gateways come in, as they enable customers to make online payments securely and website owners to accept payments easily.

In this post, we will explore eCommerce payment gateways and how consumers use them to pay for things, as well as how website owners use them to accept money.

What are eCommerce Payment Gateways?

An eCommerce payment gateway is a technology that allows merchants to accept payments from customers through their website or mobile application. It acts as an intermediary between the merchant’s website and the customer’s bank, facilitating the transfer of funds securely.

Payment gateways enable merchants to accept payments from customers using various payment methods, including credit and debit cards, online banking, mobile wallets, and digital currencies. Some of the popular payment gateway providers include PayPal, Stripe, Authorize.Net, Braintree, and Square.

How Do eCommerce Payment Gateways Work?

When a customer makes a purchase on an eCommerce website, the payment gateway comes into action. Here’s how it works:

  1. Customer selects the product: The customer adds the desired product to the cart and proceeds to checkout.
  2. Payment gateway selection: The customer is directed to the payment page where they can select the payment gateway of their choice.
  3. Payment information: The customer enters their payment information, such as credit or debit card details, and clicks on the submit button.
  4. Payment authorization: The payment gateway verifies the payment information and authorizes the transaction.
  5. Funds transfer: The payment gateway transfers the funds from the customer’s account to the merchant’s account.
  6. Payment confirmation: The payment gateway sends a confirmation message to the customer and the merchant.
  7. Merchant fulfillment: The merchant processes the order and fulfills it.

Types of eCommerce Payment Gateways

There are two types of payment gateways: hosted and integrated.

Hosted Payment Gateways

Hosted payment gateways redirect customers to a third-party payment page to complete the transaction. This means that the payment information is not collected on the merchant’s website but on the payment gateway’s secure server.

Hosted payment gateways are easy to set up, and merchants do not need to worry about security issues as the payment gateway provider handles all the security aspects. However, it can lead to a poor user experience as customers are redirected away from the merchant’s website.

Integrated Payment Gateways

Integrated payment gateways allow customers to enter their payment information directly on the merchant’s website. This provides a seamless checkout experience for customers and helps increase conversions.

Integrated payment gateways require more technical expertise to set up, and merchants are responsible for handling the security aspects. However, it provides a better user experience, and customers are less likely to abandon their cart during checkout.

Popular eCommerce Payment Gateways

There are numerous payment gateway providers available in the market, each with its unique features and pricing plans. Here are some of the popular payment gateways used by eCommerce websites:


FCF Pay is a payment gateway service that provides payment processing solutions for online businesses. The fees structure for using FCF Pay payment gateway is less than 1.5% per transaction. If you think you’re going to be processing more than $20K in crypto per month, contact the support team to work out a better deal.


PayPal is one of the most popular payment gateways used by eCommerce websites. It allows customers to pay using their PayPal account or credit/debit cards. PayPal charges a transaction fee of 2.9% + $0.30 per transaction.


Stripe is a popular payment gateway that allows merchants to accept payments from customers in over 135 currencies. It also supports various payment methods, including credit/debit cards, Apple Pay, Google Pay, and digital wallets. Stripe charges a transaction fee of 2.9% + $0.30 per transaction.