Paypal

A widely recognized and trusted service with a huge global reach, making it a go-to for international transactions.

A PayPal payment gateway is a digital service that facilitates online transactions between consumers and merchants by securely processing payments. It acts as an intermediary, authorizing credit card or bank account payments and transferring funds from the customer to the merchant without direct contact.

How it works

• Secure processing: When a customer makes a purchase, the payment gateway encrypts the credit card or bank information and sends it to the payment processing network.
• Authorization: The network verifies the transaction with the customer’s bank. If approved, the gateway confirms the payment to the merchant.
• Merchant options: Merchants can choose a simple, hosted checkout where customers are redirected to a secure PayPal site, or a more customizable solution like Payflow Pro that is integrated into the merchant’s own website.
• Consumer benefits: Consumers can use their linked bank accounts, credit cards, or PayPal balance to make purchases online while keeping their financial details private from the merchant.

Key features

• Security: Transactions are encrypted, and PayPal works to protect user data and payments.
• Flexibility: PayPal provides various payment options and gateway solutions to suit different business needs.
• Integration: Businesses can integrate PayPal as a payment option online through simple payment buttons or more complex, customized solutions.
• Global reach: It enables sending and receiving money globally.
• Dispute resolution: PayPal handles disputes, though merchants need solid evidence to win cases where buyers claim non-delivery or other issues.

Stripe

Stripe accepts credit cards, debit cards, and a variety of other payment methods from around the world. Stipe is transaction based and has no monthly subscription fees.

How it works

• Integration: Businesses integrate Stripe’s tools and APIs into their website or app to create a checkout experience.
• Customer payment: A customer enters their payment information, which is then securely sent to Stripe.
• Processing: Stripe encrypts the payment details and sends them to banks and payment networks for authorization.
• Approval: Upon approval, Stripe transfers the funds to the business’s bank account, minus transaction fees.
• Payout: Stripe handles the payout process, with transfer schedules varying by country.

Key features

• Flexible payment options: Accepts credit and debit cards, as well as other payment methods, with support for more than 135 currencies and 195 countries.
• Customizable checkout: Use powerful API to create a custom checkout experience that matches your brand.
• In-person payments: Stripe Terminal allows businesses to accept payments in person with a card reader.