28 Feb Best Payment Gateways in Australia 2023
Payment gateways are essential for eCommerce businesses in Australia to process online payments safely and efficiently. With various payment processing solutions available, businesses of all sizes can choose from the many payment gateways in Australia. These gateways ensure reliable and secure payment processing, accepting various forms of payment, including credit and debit cards, bank transfers, mobile payments, and digital wallets. Australian-based payment gateways can adjust to the changing demands of eCommerce, allowing businesses to receive payments from customers at any time and from various locations. Regardless of the size of your business, payment gateways in Australia are equipped to meet your payment processing needs.
What is a Payment Gateway – An Introduction?
Payment gateways act as intermediaries in the eCommerce world, enabling secure online transactions between merchants and customers. Unlike secret agents who face danger, payment gateways prioritize safeguarding financial information. In Australia, payment gateways offer a variety of digital payment solutions, including online shopping, bill payments, and money transfers. As the number of payment gateways in Australia increases, consumers have many options to conduct online transactions securely.
The Role of Payment Gateways in Online Transactions
Envision being at a high-end restaurant, and after a satisfying meal, the waiter presents you with the bill. However, instead of taking out your wallet, you pay via phone, transferring the amount from your bank account to the restaurant. This process is made possible by payment gateways. When you buy something on a merchant’s website, you input your payment information, which the payment gateway then securely transmits. The payment gateway handles the transaction, forwarding it to the appropriate financial institution for approval. Once the transaction is approved, the payment gateway informs the merchant, finalizing the payment.
Best Payment Gateways in Australia – Banks
When credit and debit cards were first introduced, third-party payment gateways were not yet a concept. The responsibility of processing payments fell to the banks, who were already well-versed in transaction management. These banks established themselves as payment gateways by identifying sales points and employing IT infrastructure.
Now, let’s focus on the banks that offer online payment gateways in the country.
- Commonwealth Bank
Commonwealth Bank is one of Australia’s largest banks, offering its customers a wide range of financial services. Its payment gateway, CommWeb, is a popular choice for businesses in Australia that want to accept online payments securely and easily. CommWeb is designed to work with a wide range of e-commerce platforms, making it a flexible option for businesses of all sizes.CommBank also offers various merchant services to help businesses manage their payments, including EFTPOS terminals, mobile payments, and invoicing tools.
| Setup Fee | Recurring Fee per Month | Transaction Fee | Merchant Discount Rate | Settlement Period |
|---|---|---|---|---|
| $130 AUD | Varies | 1.75% | Varies | 2 Business Days |
| Pros | Cons |
| The bank has an extensive network of branches and ATMs across Australia, allowing customers to access their accounts and carry out transactions conveniently. | CommWeb primarily supports credit card payments, so businesses that want to accept other payment methods, such as PayPal or Apple Pay, may need to look for a different payment gateway. |
| CommWeb uses SSL encryption and other security measures to protect against fraud and unauthorized transactions, making it a secure option for businesses and customers. | CommWeb is only available to businesses that have an account with Commonwealth Bank, so businesses with another financial institution will need to look for a different payment gateway in Australia. |
| Its merchant services team provides 24/7 support to help businesses with any issues or questions they may have |
- National Australia Bank (NAB)
National Australia Bank (NAB) is one of the largest banks in Australia, with a long history dating back to 1858. NAB is known for its focus on innovation and digital banking solutions, with online and mobile banking services available to customers. Its merchant services team provides 24/7 support to help businesses with issues or questions. Its merchant services division offers payment gateway services in Australia to businesses seeking online payments. It also has a reputation for providing good customer service and has won several awards for its service quality.
| Setup Fee | Recurring Fee per Month | Transaction Fee | Merchant Discount Rate | Settlement Period |
|---|---|---|---|---|
| $110 AUD | $25 AUD | From 1.75% | Varies | 2 – 3 Business Days |
| Pros | Cons |
| NAB’s merchant services, such as its payment gateway solutions in Australia, can be easily integrated with other NAB products and services | While NAB has a strong presence in Australia, it has a relatively limited international presence compared to other major banks. |
| NAB has invested heavily in digital banking solutions and has a strong track record of introducing new products and services to market | Like all financial institutions, NAB is at risk of cyber-attacks and other security threats, which could put customers’ personal and financial information at risk. |
| It offers customizable payment pages, allowing businesses to add branding and other design elements to the payment process. |
- Westpac
Westpac is one of the largest banks in Australia and provides a range of financial products and services to individuals, businesses, and institutions. It offers one of the best payment gateways in Australia called PayWay, which supports credit card payments, BPAY payments, and direct debits. It can be integrated with popular eCommerce platforms such as Shopify and Magento.
It is a popular choice for many Australians due to its extensive range of financial products and services, its focus on innovation and digital banking solutions, and its commitment to providing excellent customer service.
| Setup Fee | Recurring Fee per Month | Transaction Fee | Merchant Discount Rate | Settlement Period |
|---|---|---|---|---|
| $99 AUD | None | 1.5% | Varies | 1 – 2 Business Days |
| Pros | Cons |
| Westpac’s payment gateway supports various payment types, including credit and debit cards, PayPal, and Afterpay. | Some customers have reported that Westpac’s payment gateway does not offer as much customization as other providers, which may be a drawback for businesses with specific needs. |
| It can be more complex to set up and use than other payment gateways in Australia, particularly for businesses with less technical expertise. | While Westpac is in several countries, its payment gateway may not be as widely accepted as other providers, particularly in non-Australian markets. |
| It has implemented various security measures to protect customers and merchants from fraud and cyber attacks. |
- ANZ
ANZ offers a payment gateway in Australia called “ANZ eGate” that supports credit card payments and can be integrated with popular eCommerce platforms such as Magento, WooCommerce, and Shopify. It supports various payment types, including credit and debit cards, PayPal, and Apple Pay. It offers a range of customizable options, including the ability to integrate with existing systems, customize payment pages, and configure payment options.
| Setup Fee | Recurring Fee per Month | Transaction Fee | Merchant Discount Rate | Settlement Period |
|---|---|---|---|---|
| $150 AUD | $24.50 AUD | Varies | From 2.2% | 1 – 2 Business Days |
| Pros | Cons |
| ANZ eGate includes a range of security features to protect both merchants and customers | ANZ eGate may not be as widely accepted in non-Australian markets, which could be a drawback for businesses with an international customer base |
| It provides access to reporting and analytics tools, allowing businesses to track and analyze transaction data. | It can be more complex to set up and use than other payment gateways in Australia, particularly for businesses with less technical expertise. |
| ANZ offers customer support services to businesses using ANZ eGate, including technical support and assistance with integration and configuration |
Best Payment Gateways in Australia – Fin-Tech Companies
Financial technology, or fin-tech, companies are key in utilizing technology to improve and automate financial services in Australia. They offer payment gateway solutions in Australia that are vital to the digital economy, making transactions more efficient and supporting businesses in the modern digital age. Below are some examples of innovative fin-tech companies that have emerged in Australia intending to simplify transactions.
- eWay
eWay was founded in 1998 and has provided online payment solutions to businesses in Australia and New Zealand. It is one of the best payment gateways in Australia that allows businesses to accept payments from various channels, including credit and debit cards, PayPal, and digital wallets like Apple Pay and Google Pay. It also provides features such as fraud protection and recurring payments. eWay charges a setup fee and transaction fee for each payment processed. It focuses on providing a simple and secure payment processing experience for businesses and customers, with a range of value-added services to help businesses manage and grow their online sales.
| Function | Focus Area | |
|---|---|---|
| To accept payments from customers through various channels, such as credit and debit cards, PayPal, and digital wallets |
|
| Pros | Cons |
| Offers a range of payment options that allow businesses to accept payments from various channels and devices, including mobile phones and tablets | Charges a setup fee and transaction fee for each payment processed through its platform, which can be higher than some other payment gateways in Australia |
| Provides features such as customizable payment pages, fraud protection, and recurring payments | Some users may find the platform less customizable or flexible than other payment gateways. |
| Offers a user-friendly and secure platform that is PCI DSS compliant | It may not be the best choice for businesses that primarily operate outside of Australia |
| Provides integration with various e-commerce platforms, such as Magento, WooCommerce, and Shopify |
- Pin Payments
PinPayments is a payment gateway based in Australia that allows businesses to accept credit and debit card payments online. It was founded in 2011 and provides features such as customizable payment pages, fraud protection, and the ability to accept payments in multiple currencies. Overall, eWay is a reliable and secure payment gateway that offers a range of features and integrations to support businesses in Australia and New Zealand.
| Function | Focus Area | ||
|---|---|---|---|
|
|
| Pros | Cons |
| PinPayments offers a simple and user-friendly platform with easy integration with popular e-commerce platforms. | PinPayments is only available in Australia and New Zealand, limiting its global reach. |
| The platform allows businesses to accept payments from all major credit and debit cards and digital wallets, such as Apple Pay and Google Pay. | While the platform offers various value-added services, these services come at an additional cost to businesses. |
| PinPayments provides various features, such as customizable payment pages, recurring payments, and fraud prevention tools to ensure the security of transactions. | Compared to some of its competitors, PinPayments may have slightly higher |
| PinPayments offers a range of value-added services, such as a customer portal, dispute management, and chargeback protection, to support businesses in managing their payment processing |
- PayPal
PayPal was founded in 1998 and is one of the world’s largest online payment platforms, available in over 200 markets and supporting over 100 currencies. It is a well-known payment gateway that allows businesses to accept payments through various channels, including credit and debit cards, PayPal, and Venmo. It provides features such as customizable payment pages, fraud protection, and accepting payments in multiple currencies.
| Function | Focus Area | |||
|---|---|---|---|---|
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| Pros | Cons |
| The platform allows individuals and businesses to send and receive money and make online purchases without sharing their financial information. | PayPal charges transaction fees for each payment processed through its platform, which can be higher than other payment gateways in Australia, particularly for cross-border transactions or large transaction volumes. |
| PayPal offers various payment options, including credit and debit cards, PayPal balances, and bank transfers. | PayPal has been known to freeze or restrict accounts for various reasons, including suspected fraud or violation of its terms of service, which can be frustrating for users. |
| PayPal provides various features such as buyer and seller protection, fraud prevention, and dispute resolution to ensure the security of transactions. | PayPal’s user agreement can be complex and lengthy, leading to confusion or misunderstanding among some users. |
| PayPal offers value-added services, such as invoicing, recurring payments, and PayPal Checkout, to support businesses in managing their payment processing. |
- Stripe
Stripe is one of the top payment gateways in Australia that allows businesses to accept payments from various channels, including credit and debit cards, digital wallets, and direct debit. It aims to provide users with a flexible and customizable payment experience, with various value-added services and integrations to support businesses in managing their payment processing.
| Function | Focus Area | |||
|---|---|---|---|---|
|
|
| Pros | Cons |
| Stripe is a flexible and customizable payment gateway that offers a range of payment options, including credit and debit cards, digital wallets, and bank transfers. | Stripe’s user agreement can be complex and lengthy, leading to confusion or misunderstanding among some users. |
| The platform provides various features such as fraud detection, chargeback protection, and dispute resolution to ensure the security of transactions. | Stripe’s dispute resolution process can be time-consuming and requires detailed documentation to support the claim, which can be burdensome for some users. |
| Stripe’s user-friendly interface provides comprehensive documentation, developer tools, and support to help users integrate and customize their payment processing. | Stripe has limited support for certain payment methods in some countries, which can restrict its usability in some regions. |
Here’s a little summary of some of the top payment gateways in Australia for 2023:
| Payment Gateway | Pros | Cons | Transaction Fee | Setup Cost |
|---|---|---|---|---|
| PayPal | Widely accepted globally, with a user-friendly interface | Higher transaction fees for international payments | 2.6% + $0.30 per transaction | Free |
| Stripe | Offers a customizable payment processing experience | May require some technical knowledge to set up | 1.75% + $0.30 per transaction for domestic cards, 2.9% + $0.30 for international cards | Free |
| Square | Provides a simple and easy-to-use payment platform | May not be ideal for larger businesses or high-volume transactions | 1.9% per tap, dip, or swipe | Free |
| eWAY | Offers a reliable and secure payment gateway | May not support some niche payment methods | 1.6% + $0.25 per transaction for domestic cards, 2.9% + $0.25 for international cards | $0 setup fee |
| Pin Payments | Provides a fast and simple payment processing experience | Limited acceptance outside of Australia | 1.75% + $0.30 per transaction for domestic cards, 2.9% + $0.30 for international cards | Free |
Also Read: Best Payment Gateways in the UAE 2023
Final Words
In summary, payment gateways are essential for ensuring secure and efficient online transactions for eCommerce businesses. With a wide range of choices available, selecting the right payment gateway can be daunting, but it is crucial since all business transactions will go through it. This guide provides an overview of the top payment gateways in Australia that cater to the needs of both experienced online shoppers and eCommerce businesses, as well as those new to the online realm. Please do not hesitate to contact us if you need assistance determining the best payment gateway in Australia for your business requirements.
Frequently Asked Questions
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What is a payment gateway?
A payment gateway is a technology that enables online merchants to securely and efficiently process electronic payments, such as credit card transactions, through their website or mobile app.
How does a payment gateway work?
When a customer submits their payment information on an online store, the payment gateway encrypts it and sends it to the payment processor for authorization. The processor then communicates with the customer’s bank to verify the transaction and send the funds to the merchant’s account.
How do I choose the right payment gateway for my business?
When choosing a payment gateway, consider transaction fees, security features, ease of use, integration options, and customer support. Selecting a payment gateway that supports your customers’ preferred payment methods is also essential.
Are there any transaction fees associated with payment gateways?
Yes, most payment gateways charge a per-transaction fee and a percentage of the transaction amount. Fees can vary depending on the payment gateway and the type of transaction.
What security measures do payment gateways have in place to protect sensitive data?
Payment gateways use various security measures, such as encryption, tokenization, and fraud detection tools, to protect sensitive data from unauthorized access or theft.
Can payment gateways be integrated with my existing website or eCommerce platform?
Most payment gateways offer integration options with popular eCommerce platforms and website builders. It’s essential to check the compatibility of the payment gateway with your existing setup before choosing a provider.
What happens if a customer disputes a charge?
If a customer disputes a charge, the payment gateway provider will work with the merchant and the customer’s bank to investigate and resolve the issue. The merchant may be required to provide evidence of the transaction to support their case.
Do I need a merchant account to use a payment gateway?
Yes, most payment gateway providers require you to have a merchant account to process transactions. However, some providers, such as PayPal, offer integrated merchant accounts as part of their service.