Payment Gateway

Payment gateway is an e-commerce website application which allows the site to connect the customers payment account to that of the website. Payment gateways provide for the secure online sending of credit details of the customer’s account. The outstanding feature of these payment types is the speed and ease at which money is transferred. Shopping experience on online platforms has become an efficient process with these payment types.

Payment Gateways categories

There are two main classifications of payment gateways and these are: Shared and Hosted Gateways.

Shared Gateways:

The customer in this case is directed to the page for payment without leaving your e-commerce site. Once the customer clicks on the payment button or link, a post form appears. The payment page on your e-commerce site is securely maintained by the payment gateway. The customer enters all the credit card account details before getting back fully to the site. The main advantage is that your customer will not be navigated away from your website.

Hosted Gateways:

These gateways direct the user away from the ecommerce website. Your customers will be re-directed from your e-commerce site to the real payment page to enable them transact. Your customers will click on the link you provide to the gateway.  The customer leaves your site temporarily before returning back. The advantage of this type of gateway is that you will not need to have a merchant ID since confidential information is not a requirement.

Benefits of Payment Gateways

Transactions are secure

Gateway service offer secure transactions over the Internet. Fraudulent transactions and credit card scams are eliminated. Payments are encrypted to protect sensitive data from hackers.

Additional programs

This payment service comes with other software such as shopping cart. This allows online customers to select items by clicking on them and placing them inside the virtual cart. The cart calculates cost of goods at the virtual check-out. It also calculates the shipping and tax charges without the physical presence of the merchant being necessitated.

Wider client base

This payment service opens opportunity for customers to shop from across the globe hence increasing your customer base.

Fast and accurate transactions

Transactions done via gateways are faster when compared to manual transactions. In addition, the transactions are error free with the entire process completed in a few clicks.


Your customers are able to avoid the inconvenience of traffic jams, long queues at the cashier, crowded shops, and lack of parking space. The transactions are made with ease with just a computer and credit card.

Frequently Asked Questions

What is TMF or Terminated Merchant File? MF or terminated merchant file refers to a list of merchants whose accounts have been terminated for a reason. TMF does not exist but the term is still used commonly in reference to MATCH file.View More

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