Best Online Payment Systems: Payment Processors and Payment Gateways

Best Online Payment Systems: Payment Processors, Payment Gateways

In this article, we’ll be reviewing the best online payment systems, payment processors and payment gateways for accepting e-commerce payments on the Internet.

Online Payment Systems Primer

Before getting started, here are just a few things to know about online payment systems.

Automated Clearing House (ACH)

ACH is an electronic network for financial transactions in the United States. ACH processes electronic credit and debit transactions, allowing customers to make payments from their bank accounts for utilities, mortgage loans, and other kinds of bills. Most payment processors offer ACH payment options to their customers, especially for monthly and subscription-based transactions.

Merchant Account

A merchant account is a type of bank account that allows businesses to accept payments by payment cards, typically debit or credit cards. Merchants are contractually bound to obey the operating regulations established by the card associations. Many processors such as Sage Pay and PayPal act as both the merchant account and payment gateway.

Payment Gateway

A payment gateway is an e-commerce application service provider service that authorizes credit card payments for e-businesses and online retailers. It is the equivalent of a physical point of sale terminal located in most retail outlets. The payment gateway allows secure credit card transactions between the customer and the merchant and between the merchant and the payment processor.

Payment Processor

A payment processor is the company designated by a merchant to handle credit card transactions. Payment processors implement anti-fraud measures via card associations and issuing banks to ensure the customer and merchant are protected.

Payment Card Industry (PCI) Compliance

PCI compliance is adherence to a set of specific security standards that were developed to protect card information during and after a financial transaction. PCI compliance is required by all card brands. For PCI compliance the vendor must:

• Build and maintain a secure network.
• Protect cardholder data.
• Maintain a vulnerability management program.
• Implement strong access control measures.
• Regularly monitor and test networks.
• Maintain an information security policy.

Some payment processors such as Sage Pay offer simplified PCI compliance requirements depending on the integration method you’ve chosen. This makes it cheaper and quicker for you to become compliant.

Best Online Payment Systems

What follows are what I consider to be the best online payment systems, payment processors and payment gateways for accepting e-commerce payments on the Internet.

 

Authorize.net   Authorize.Net is the Internet’s most widely used payment gateway. With a user base of 400,000+ merchant customers and an annual transaction volume of $100+ Billion, Authorize.Net has been the go-to method for e-commerce sites that need a payment gateway since 1996. Widely used e-commerce platforms such as Magento.com (an ebay inc company), Volusion.co.uk, X-Cart.com and many others are designed to accept payments using Authorize.Net easier. Authorize.net Pricing

PayPal   PayPal allows any business or individual with an email address to securely, conveniently and cost-effectively send and receive payments online. PayPal’s network builds on the existing financial infrastructure of bank accounts and credit cards to create a global, real-time payment solution. PayPal delivers a product ideally suited for small businesses, online merchants, individuals and others currently underserved by traditional payment mechanisms. The size of PayPal’s network and widening acceptance of their product have helped them become one of the leading payment networks for online auction websites, including eBay. PayPal is also being increasingly used on other ecommerce sites for the sale of goods such as electronics and household items, the sale of services such as web design and travel, and the sale of digital content. Offline businesses, including lawyers, contractors and doctors, have increasingly begun to receive payments online through PayPal. PayPal’s service, which lets users send payments for free, can be used from computers or web-enabled mobile phones. PayPal UK Pricing

Sage Payment Solutions   Sage Payment Solutions offers your business or organization more ways to accept and process payments. Accept all major credit and debit cards including Visa(R), MasterCard(R), American Express(R), Discover(R), Diners Club(R), JCB, Debit/ATM, and private label cards as well as PIN Debit and Signature Debit transactions. With Sage you get everything under one roof: underwriting, customer support and loss prevention. That translates into better value, security, reliability and customer service. Debit and Credit Card Processing Accept all major credit cards for your business or organization, at your location or your customer’s. Find out about all of our different payment acceptance methods and get a custom rate quote for the services we offer. Sage Mobile Payments Go mobile and accept payments anytime, anywhere. Accept payments on your mobile device with no limit on monthly credit card transaction volume. Electronic Check and Ach Processing Accept and process checks and authorized ACH deposits electronically in all environments, safely and securely. Add check payment processing today and give your small business customers more options on how to pay. Sage Exchange Consolidate all of your payment activity onto one platform, accessed and administered from our full-featured, accessible from anywhere, online portal. Monitor and manage payments online, by phone, mobile devices or through your storefront.

There are many other payment systems, payment processors, payment gateways and payment providers you might like to consider, some of the more well known (in alphabetical order) are:

• 2Checkout.com, Amazon Payments, American Express Payment Gateway, ANZ eGate, Beanstream, Braintree, BluePay, Caledon, Chase Paymentech Orbital, clearXchange (by Bank of America, Chase and Wells Fargo), CyberSource, DIBS, DirectOne, Dwolla, ECHOnline, Elavon, ePDQ, eProcessing Network, eSec, eSelect, eWay, FirstData, Global Iris, GoEmerchant, Google Checkout, Google Wallet, HSBC, Intuit’s GoPayment, iTransact, Netbilling, Netregistry, Ogone, Payflow, PayGate Korea, PSiGate XML, Qiwi, Quantum Gateway, Realex, Samurai by FeeFighters, Sage Pay, SecurePay, Serve (by American Express), SkipJack TSYS, Skrill, Stripe, USA ePay, V.me (by Visa), Virtual Merchant, Webmoney, WebXpress, WePay and Worldpay.

Finally, if you have any thoughts or suggestions relating to online payment systems: payment processors or payment gateways don’t forget to let me have them in the comment box below. Thanks for dropping by.