A payment gateway is a crucial tool for any website that sells products or services online. It acts like a digital middleman, securely transferring payment information from your customer to your bank or payment processor. Whether you're running an online store or accepting donations, a payment gateway helps you collect money safely and efficiently. Without it, your website can’t process payments—and that’s a big deal if you're trying to grow a business online.

How a payment gateway works

A payment gateway handles the behind-the-scenes process of authorizing and completing online transactions. When a customer enters their payment info on your checkout page, the gateway encrypts the data and sends it to the payment processor. Then, the customer’s bank either approves or declines the payment. The result is sent back through the gateway to your website, and if everything checks out, the transaction is complete.

This all happens in just a few seconds. The goal is to make the payment process smooth, fast, and secure so customers don’t abandon their carts. Gateways also help prevent fraud with tools like encryption, address verification, and tokenization.

Common examples of payment gateways

There are several popular payment gateways you’ve likely used or seen before. Some of the most well-known include:

• Stripe – Often used by startups and SaaS businesses.
• PayPal – A recognizable and widely trusted option for small businesses.
• Square – Great for both online and in-person payments.
• Authorize.net – One of the oldest gateways, known for its strong fraud protection.

Each of these services offers different features, pricing models, and levels of customization. Choosing the right one depends on your business type, how you accept payments, and what kind of checkout experience you want to offer.

Why your website needs a payment gateway

If you're selling anything online, a payment gateway isn’t optional—it’s essential. It ensures that payments are processed quickly and securely, and that your customers feel confident entering their credit card details. A good gateway improves the user experience, reduces abandoned carts, and builds trust with your audience.

From a business perspective, a reliable gateway helps you stay PCI compliant, which means your site meets industry standards for handling sensitive data. Plus, with modern platforms, setting up a payment gateway is easier than ever—even if you’re using a website builder like B12.

Payment gateways and SEO: What's the connection?

While a payment gateway doesn’t directly affect your SEO, it plays an indirect role in your site’s performance. For example, if your checkout experience is clunky or your gateway loads slowly, users may leave before finishing their purchase. That kind of behavior can increase your bounce rate, which search engines may interpret as a negative signal.

Also, having a smooth and secure checkout builds trust—which can lead to more positive reviews and repeat traffic. When people stay longer on your site and complete transactions, it sends a message to Google that your website offers value.

FAQs about payment gateway

What is a payment gateway and why do I need one?

A payment gateway is a tool that lets your website securely process credit card or digital payments. You need it to accept payments online, whether you're selling products, offering services, or collecting donations.

Are payment gateways safe to use?

Yes, reputable gateways use encryption and other security measures to protect customer information. Most are PCI-compliant, which means they meet strict standards for handling sensitive payment data.

Can I use more than one payment gateway on my website?

In some cases, yes. For example, you might offer PayPal alongside Stripe so customers can choose their preferred option. Just make sure your website setup supports multiple gateways without confusing the checkout process.

Do payment gateways charge fees?

Yes, most charge a small percentage per transaction, along with possible monthly or setup fees. The exact cost depends on the provider you choose and how much you sell.

How do I choose the right payment gateway for my business?

Consider factors like ease of integration, transaction fees, customer support, and whether it supports your country or currency. If you're using a platform like B12, they often offer built-in options to make setup easier.

Build trust and get paid faster

Ready to start accepting payments online the right way? With B12’s AI website builder, you can launch a secure, professional website that includes built-in payment tools. No coding, no stress—just a smoother checkout experience for your customers. Get started today and set up your site in minutes.