CNP Authorization

Lowest priced payment gateways

Gateway providers and Payment Service Providers may be synonymous, but there are some which specialize in online payments. For example, Authorize.net and First Data Global Gateway are dedicated to the gateway side although they may have other processing solutions. Third party providers like 2Checkout.com are often used for one-off payments and transactions where the merchant does not want to apply for a full account.

Monthly Fees

For many companies, fees associated with payment gateways can range from affordable to high. The difference between high risk and low risk merchant account fees can equal several percentage points. There are also monthly fees for keeping the gateway, so your business should be using it regularly in order to get value out of it. Otherwise, consumer-grade credit card accepance solutions like Square may be more affordable if you only take a few hundred dollars worth of cards a month.

Security for Payment Gateways

Because Card Not Present transactions have a greater chance of fraud, chargebacks, and card theft, the fees for processing these cards are higher than swiped transactions. Typically, the use of extra identifying information like zip codes and street addresses, through the Address Verification Service (AVS) will help determine whether the card is stolen, and generally the transaction is cheaper when this data is collected. CVV numbers are also used to determine legitimate transactions. There are also functions that validate the card number (a hash function) which can determine if there are any typographical errors in the card number before information is even sent. PCI-DSS requirements for cardholder data security are followed at all levels, especially the authorizing companies and software vendors which may only reveal parts of the card number to the merchant, who does not need that information to complete the transaction once it has been authorized.