A Secure Payment Gateway for all Retail, High-Risk, and High-Volume Merchants

What is a payment gateway?

A payment gateway is a financial technology that allows merchants to securely accept and process credit card and electronic payments. It is an intermediary between the merchant’s website, POS, or mobile device that securely authorizes the transaction and settles the payment to the merchant.

The main functions of a secure payment gateway are to:

• Secure payment processing: Encrypts and transmits transaction data securely.
• Prevent fraud: Uses tools to detect and prevent fraudulent transactions.
• Authorize & settle transactions: Verify cardholder data with the issuing bank to make sure funds are available.

A high-risk payment gateway is used by businesses operating in industries with higher incidences of chargebacks and fraud (so they need a high-risk merchant account). It does the same thing as a standard payment gateway but offers additional security measures and more flexible terms to manage the increased risk.

Types of payment gateways

Payment gateways can be implemented in three different ways we discuss below. Our payment gateway supports all of these implementations, and we will be more than happy to help you choose the best solution for your business.

Hosted payment gateways 

Hosted payment gateways redirect customers to the payment service provider’s (PSP) page to complete the transaction. After the customer enters their payment details on the PSP’s secure page, they are redirected back to the merchant’s site.

• Advantages: Easy to implement, highly secure, and there is no need for PCI DSS compliance (out of scope).
• Disadvantages: Limited customization and potential disruption in user experience due to redirection.

Integrated payment gateways 

Integrated payment gateways allow transactions to be processed directly on the merchant’s site using APIs. Customers enter their payment information without leaving the merchant’s site, providing a seamless shopping experience. The payment gateway securely transmits the payment data to the acquiring bank for authorization.

• Advantages: Seamless user experience, fully customizable checkout process.
• Disadvantages: Requires higher security measures and must comply with all PCI DSS standards.

Self-hosted payment gateways

Self-hosted payment gateways enable merchants to collect payment data on their own server and then send it to the gateway for processing. The merchant has full control over the checkout process and can customize it according to their needs.

• Advantages: Full control over the checkout experience, highly customizable.
• Disadvantages: Requires stringent security measures, must comply with PCI DSS standards, and higher risk potential if not implemented correctly.

Which businesses need a high-risk payment gateway?

As the name suggests, high-risk payment gateways are designed for high-risk businesses like:

• Online gambling and gaming: Includes online casinos, sports betting sites, and fantasy sports platforms, which face high chargeback rates and regulatory challenges.
• Adult entertainment: Websites offering adult content, services, or products are considered high-risk due to legal and reputational concerns.
• Travel and ticketing services: Travel agencies, airlines, and event ticketing companies handle large transactions and last-minute cancellations, which increases the risk of chargebacks.
• Firearms: These businesses face stringent state and country regulations.
• Telemarketing and subscription services: Companies that rely on telemarketing or offer subscription-based services can experience high chargeback rates and customer disputes.
• Nutraceuticals and supplements: Sellers of dietary supplements and health products often encounter regulatory scrutiny and a high rate of returns and chargebacks and returns due to recurring billing.
• Debt collection services: These services face legal complexities and a higher risk of disputes and chargebacks.
• Cryptocurrency exchanges: Businesses dealing with cryptocurrencies are considered high-risk due to the volatile nature of digital currencies and regulatory uncertainties.
• High-ticket Items: Businesses selling luxury goods, electronics, or other high-value items face a greater risk of chargebacks and fraud due to the significant amounts involved.

Note that this is by no means a complete list. Use the graphic below to estimate if your business might be considered high risk.

A high-risk payment gateway helps businesses mitigate risks associated with their operations. They get access to enhanced security features, fraud prevention tools, and more flexible contracts.