What is a digital commerce payment provider

Digital commerce payment providers should be considered a necessary and strategic part of your complete business solution. According to Gartner:

Digital commerce transactions are typically supported through real-time authorization, and digital commerce payments are electronic payments. Digital commerce payment providers offer a combination of payment gateways, payment processing, receipt services, payment security and fraud detection.

Multiple payment providers are often used based on their customer preferences, geographic location, and ease of integration. There are a wide variety of digital commerce payment providers, each with different strengths and weaknesses that may be suitable for a particular type of brand.

What is an online payment gateway?

Online payment gateways are often part of a digital commerce payment provider's complete offering. According to Gartner:

The payment gateway initiates payments at the merchant's request and returns a response to those merchants. They offer pre-contact and certified integrations with major payment payees and processors, many of which integrate with other vendors in the larger digital commerce ecosystem.

There are various types of online payment gateways, each associated with a different brand based on its technology stack and customer needs. A key difference between online payment gateways is the unknown, the special and the .

Unknown gateway.

These are connected to different payment processors, and brands are associated with these processors. This means the brand can create experiences for customers on the front end. On the back end, however, they have the flexibility to swap out processors as needs change. Whether it's regional expansion or new payment methods (brands can exchange without compromising the front-end experience. Examples of agnostic online best payment gateway for ecommerce include Cybersource and ACI Worldwide.

Private Gateway

These are the opposite of agnostic online payment gateways. Payment service providers for connection processors only. Examples of dedicated online payment gateways include Adyen, paypal Braintree, and Stripe.

Directed Gateway

These are like agnostics because they are connected to multiple processors. But the brand has nothing to do with the processor. Instead, gateway providers direct traffic to the relevant processors as needed for each transaction. Examples of targeted online payment gateways are checkout.com and bluesnap.

Related Hot Topic

Does Shopify charge a fee for payments?

In the US, 1.5%. In all other nations and areas, Shopify Payments offers 2%.

What poses one of the biggest risks to online shopping?

E-commerce risks come in many different forms. Some of them are the result of human error, while others are unintentional. The most frequent security risks include fraud involving credit/debit cards, electronic payment systems, e-cash, and data misuse.

What surpasses Payoneer in quality?

Best Payoneer Alternatives Payment methods include PayPal, Square, Google Pay, Tipalti, Skrill, and Remitly.