While you may now immediately know the answer to the question “what is a payment gateway?” chances are that you have actually used one before, especially if you have purchase from an online store or paid for an auction online.

Since the advent of the Internet, we have heard a lot more about payment gateway. In a nutshell, a payment gateway is a means for an online merchant to receive funds transfers that use either a credit card or a bank account as the source of the funds used for making a payment. Among the most popular of the ecommerce payment gateway solutions is PayPal. While there are several other reputable payment gateway solutions, PayPal consistently is one of the top ranked payment gateways in use today.

Essentially, an online payment gateway handles the transaction. When you submit a payment at an online store, you begin a process whereby the bank that is supposed to receive the payment communicates with your bank or source of funding via the connection made by the gateway. The validity of your payment is confirmed and the ecommerce gateway payment is deducted from your source of funding and added to the account of the seller. Typically, this transaction takes place in just a few seconds. Gateway computer payments are perfectly secure and allow sellers to receive payment instantly, rather than having to wait until the end of the business day or the following day, as is the case with some electronic payments types.

A gateway payment merchant is often ideal for persons who like to sell items at auctions. With the use of a payment gateway, winning bids can pay for the item instantly, which means the seller can release the item for shipment much more quickly. While many payment gateways will charge a small percentage fee per transaction, there is not usually a monthly fee assessed. Setting payment gateway perimeters is something you can do when you first establish your account with the gateway of your choice. You have around the clock payment gateway access control, so you can check balances, transfer funds to your bank account, or add funds to your gateway balance from your bank account. Several come with the ability to obtain a business card that will work in the same manner as a debit card. When setting your own payment gateway account, you can ask for the card. This can be a good idea, as some of the payment gateway providers offer a cash back bonus when you use your card for purchases at local stores.