payment gateway
Online transactions is the fast and convenient ways for users to settle payment. Due to the internet that can be reached globally, everyone can easily sell or buy all around the world.
Online transaction can be difficult to verify and mostly anonymous. Due to that, e-commerce payment security is important in order to avoid problems such as fraud to happen within the operation.
Merchants need to take a proactive approach to reduce the fraud within online store and prevent security breach of cards or personal data. One of the ways to prevent it is by using payment gateway.
The Payment Gateway
Payment gateway is an e-commerce software that authorizes payments for online merchants, e-businesses or electronic business, bricks and clicks or traditional brick and mortar businesses.
It seamlessly connects to e-commerce or in-house payment processor for examples, credit cards processing networks or online banking.
Payment gateway is a third-party between merchants and customers that securely take the money from customers and send it to merchant’s’ bank account. Payment gateway is a virtual equivalent of a physical point-of-sale terminal that located in most of retail outlets.
How it works?
Payment gateway performs the important role in processing and authorizing the payment or transactions between customer and merchants.
Payment gateways encrypt sensitive information and details of payment such as credit cards number. It is to guarantee that the information is passed securely between customer and merchant.
Here are the basic steps on how it works:
- A customer will place an order on the website that they visit by submitting the order, checkout from the cart or any equivalent button.
- Merchant securely transfers order information to the payment gateway. The transaction is then routed to the issuing bank or the 3D secure page to request transaction authentication.
- After the authentication process is successful, the transaction is then authorized or declined (depending on funds available in the customer’s account) by the issuing bank or card (VISA, MASTER, MAESTRO, American Express).
- Payment gateway sends a message to the merchant accordingly.
- The bank settles the money with the payment gateway and then the payment gateways settle the money to the merchant.
When using a payment gateway, there are three important things that they do when customer wants to make purchase from the merchants’ website. It is either by using credit card, debit card, online banking, cash etc. The three important things are including authorization, settlement and reporting.
Payment gateway providers also provide merchants with other benefits such as virtual terminal that can help receiving payment in the physical outlets through the same methods of payment.
By using a payment gateway, it puts the control of business payment acceptance into your hands hence raising the power to grow business right through your fingertips.
Payment Gateway Comparison
PayPal
Originating from US, PayPal has nearing 20 years of experience in handling online payment systems that support online money transfers and serves as an electronic alternative to traditional payment methods such as money order and cheque.
| Fees | Description |
|---|---|
| Setup Fee | None |
| Processing Fee | None |
| Transaction Fee | Malaysia – 3.9% + 2.00 MYR Overseas – 4.4% + 2.00 MYR |
| Annual Fee | None |
Visit : PayPal
Ipay88
Known also as Malaysia’s biggest payment gateway, ipay88 have assisted thousands of successful entrepreneurs in e-commerce and m-commerce space via our award-winning online payment ecosystem.
| Fees | Description |
|---|---|
| Setup Fee | RM488 (Start-Up Plan) RM488 (SME Plan) |
| Processing Fee | RM900 fee for credit card gateway, enforced by banks. Can be waived on case-per-case basis, depending on nature of business. |
| Transaction Fee | Start-Up Plan 3.2% per transaction for credit card (Paypal) Domestic Only Additional Charges for Multi-Currency 3.0% per transaction or minimum RM 0.60 whichever is higher for online banking (e-debit) SME Plan 2.7% per transaction for credit card, 3.2% per transaction for credit card (Paypal) Domestic Only Additional Charges for Multi-Currency 2.7% per transaction or minimum RM 0.60 whichever is higher for online banking (e-debit) |
| Annual Fee | Please check with iPay88 |
Visit : iPay88
E-GHL
Founded in March 2013, eGHL offers secure Internet payment solution which encompasses both cards and non-cards payments channels across South East Asia to online businesses throughout the region.
| Fees | Description |
|---|---|
| Setup Fee | RM399 (e-GHL Starter Package) RM599 (e-GHL Small Business Package) |
| Processing Fee | RM900 for credit card gateway, enforced by banks. Can be waived on a case-per-case basis, depending on nature of the business. |
| Transaction Fee | e-GHL Starter Package 2.8% for Visa, MasterCard transaction. Direct Debit charge: FPX, Maybank2u, RHB Click and Affin Online 2.8% or RM0.70 (Whichever Higher) CIMB Clicks 2.8% or RM0.95 (Whichever higher) e-GHL Small Business Package 2.5% for Visa, MasterCard transaction Direct Debit charge: FPX, Maybank2u, RHB Click and Affin Online 2.5% or RM0.70 (Whichever Higher) CIMB Clicks 2.5% or RM0.95 (Whichever higher) |
| Annual Fee | e-GHL Starter Package – First year is free, subsequent year is RM399. e-GHL Small Business Package – First year is free, subsequent year is RM599. |
Visit : eGHL
BillPlz
Created as a software for merchants to collect payments fast at the lowest cost possible, some of BillPlz clientele include Axiata, Telekom Malaysia (TM), Digi as well as Majlis Agama Islam Selangor (MAIS). The software focuses on providing 4 services to merchants, i.e. API, Billing, Payment Form and Mass Payments.
| Fees | Description |
|---|---|
| Setup Fee | None |
| Processing Fee | None |
| Transaction Fee | RM1.50 per transaction FPX – Free, PayPal – 3.9% + RM22, 2C2P – 2.5% |
| Annual Fee | None |
Visit : Billplz
SenangPay
Fairly new to the market, SenangPay is a payment gateway that is targetted specifically at the Malay-speaking e-commerce business owners.
| Fees | Description |
|---|---|
| Setup Fee | None |
| Processing Fee | None |
| Transaction Fee | For credit/debit card, 2.5% per transaction. For internet banking, 1.5% per transaction. |
| Annual Fee | Basic - RM300 Advanced - RM450 Special - RM1500 |
Visit : SenangPay
MOLPay
Claiming to be leading payment gateway in Malaysia, MOLPay provide complete coverage of payment methods, including credit/debit card, domestic internet banking with more than 100 banks in Southeast Asia, and Online to Offline (O2O).
| Fees | Description |
|---|---|
| Setup Fee | RM499 (MOL Start-ups), RM899 (MOL Premium Plan) |
| Processing Fee | RM945 fee for credit card gateway, enforced by banks. Can be waived on case-per-case basis, depending on nature of business. |
| Transaction Fee | MOL Startup 3.8% per transaction or minimum RM 0.60 whichever is higher for online banking (e-debit) and MOLPay's 7-11 cash channel MOLPay Premium 2.8% per transaction for credit card, per transaction or minimum RM 0.60 whichever is higher for online banking (e-debit), for MEPS Cash and Webcash and MOLPay's 7-11 cash channel. |
| Annual Fee | Please check with MOLPay |
Visit : MOLPay
While some of these payment gateway systems may come with multiple fees that add up to your expenses, it offers your customers a peace of mind as well as convenience when it comes to purchasing something from you online.
All the best as you take your business to the next level!
Disclaimer: This Payment Gateway Comparison and information is for reference only. Any information given does not constitute any warranty for a particular use. The copyrights and trademarks of the companies and products mentioned belong to their respective owners.