Understanding Magento Payment Gateways: A Guide

Magento Payment Gateways

Are you trying to know how to utilize the multiple magento payment gateways options out there? Find out in this guide.

How does Magento Payment Gateways work?

We already know the instant payment processing. After pressing the submit button, we can achieve the result in seconds. It might seem that a payment page is connecting directly to the bank but in fact, the payment method is more complicated. The payment gateways work like this:

  1. Once a customer begins a payment process, the Magento payment gateway will capture the transaction request, equip your payment information, and then transfer it to a payment processor.
  2. The payment processor gives out transaction data to the bank (Or via PayPal with this method) and analyzes the request from your fund’s availability and fraud perspectives. It will decide whether one should authorize the transaction or not.
  3. The payment process finishes when the payment gateway transfers the answer to the customer. The choice isnít always consistent with what the customers could choose. Having several payment gateways available increases the chances of meeting customer needs.

How to Select a Magento Payment Gateway

  1. Payment is a lengthy and sensitive process where the customers give access to their bank accounts. Experts would agree that having a Magento payment gateway can help and be a disadvantage at the same time. The reason to have more than one payment gateway boils down to the following reasons:

    Backup: Customers don’t want to experience malfunction when looking through an online store. Having several payment gateways is a great way to backup the online store. The cost of extra gateways is justified when the primary one is not performing efficiently or it’s at peak times.

  2. Business expansion: Getting in the international market implies working with more currencies and banks. As the e-commerce company grows, there are more target markets that have to be covered.


  • Is the gateway accessible? Payment gateways that allow multiple currencies and locations are necessary for online stores and need to have an international delivery for a useful and steadily growing business.
  • Is the payment gateway protected from false decline? About 20% of cross-border transactions are declined because they are more likely to be vulnerable to fraud. International partnerships use payments to help smoothly connect large banks.
  • Does Magento have a payment gateway that meets your business needs? There are some payment gateways that Magento does offer. Still, it might be a better choice to go past the out-of-box functionality. Popular payment gateways are Dwolla, iPay, Amazon Payment, Ayden, Stripe.etc. Since magento lacks a few payment methods such as pre-paid cards and e-wallets, some custom integration might be required.

One Payment Gateway is Not a Threshold

The emerging e-store market reaches the needs of ever-changing businesses. This means that users aren’t limited to one payment gateway and can use multiple payment gateway platforms or make custom modules so the can meet business needs. The reason to have two or more payment gateways boils down to the following pain.


To conclude, your magento site should have multiple payment gateways. This ensures that your financial information isn’t in danger of an accidental or intentional data breach. So make sure that you have them to ensure that you can reach the widest audience range and receive more profits in the long run.