Payment gateway

What is a payment gateway?

When a customer pays in your online shop, the payment gateway handles the technical part of the transaction. It receives card details, verifies them via 3D Secure, checks coverage with the card issuer and completes the payment. All this happens in seconds, encrypted and secure.

The payment gateway is the link between your online shop and the financial infrastructure. Without it, you can't accept online card payments.

Three things you need for online payment

1. A shop system - to manage orders, products and customer information (e.g. Shoporama)
2. A payment gateway - the software that connects your shop to the payment infrastructure
3. An acquirer agreement - an agreement with an acquirer (bank) that allows you to accept card payments and get paid

Some newer solutions like Stripe and OnPay combine gateway and acquiring in one package, so you don't need separate agreements.

How a payment works

When the customer clicks "Pay" in your shop, the following happens:

1. The webshop sends order details (order number, amount, currency) to the payment gateway
2. The gateway displays a payment form where the customer enters card details
3. The card details are sent encrypted to the card network (Visa, Mastercard, etc.)
4. 3D Secure verification is completed (the customer's bank approves the payment)
5. The gateway receives a response and sends confirmation or rejection back to the webshop
6. The webshop creates the order and sends order confirmation to the customer

What does a payment gateway cost?

The pricing model varies between providers, but typically consists of:

• Monthly subscription: Typically 0-250 DKK/month depending on provider and package. Some offer free plans with limited functionality.
• Transaction fee: Typically €0.25-1.00 per transaction. Some charge a percentage instead of a fixed amount.
• Redemption fee: Typically 1-2% of the transaction amount, paid to the acquirer.
• Additional fees: Possibly extra for fraud-protection, 3D Secure or special payment methods.

Payment gateways in Shoporama

Shoporama integrates with a wide range of payment gateways, so you can choose the solution that best suits your business:

• Stripe - Modern platform with gateway and acquiring in one package. Easy setup via OAuth, supports cards, Apple Pay and Google Pay.
• OnPay - Danish solution with gateway and acquiring combined. Simple pricing and good Danish customer support.
• QuickPay - One of the most popular gateways in Denmark. Flexible with many acquiring partners.
• DIBS (Nets Easy) - Major Scandinavian player with Easy Checkout solution.
• ePay (Bambora) - Danish gateway with broad support for payment methods.
• Mollie - European gateway with simple pricing and many local payment methods.
• PayPal - Global solution with broad consumer recognition.
• Payson - Swedish gateway, popular in Scandinavia.

Payment methods besides cards

Modern consumers expect more payment options than just Visa and Mastercard. The most popular in Denmark are:

• MobilePay Online - By far the most used mobile payment in Denmark. Available through most gateways.
• Apple Pay and Google Pay - Fast payment via your phone, especially via Stripe.
• Klarna - Buy now, pay later (BNPL) with partial payment or invoice.
• ViaBill - Danish BNPL solution with partial payment.

How to choose your payment gateway

When choosing a gateway, you should consider:

• Payment methods: Does the gateway support the methods your customers prefer? MobilePay is almost a requirement in Denmark.
• Price: Compare monthly fees, transaction fees and acquiring fees in total. A cheap gateway with expensive acquiring may end up costing more.
• Setup: How easy is it to get started? Solutions like Stripe and OnPay require minimal setup.
• Support: Danish support can be crucial if there are any issues with payments.
• Security: All reputable gateways support 3D Secure and PCI DSS compliance, but check that SCA (Strong Customer Authentication) is implemented correctly.