Gateway is a kind of networking device that interconnects two devices in different networks so that they can communicate with each other. It acts as a gate for another network. So here this article gives the advantages and disadvantages of payment gateway to better understand this topic.
Pros or Advantages of payment gateway:
- Credit card validation and processing in real-time
- Money is normally deposited into a bank account automatically
- Reports are auto-generated for users.
- Doesn’t need special user deployment.
Cons or Disadvantages of payment gateway:
- Fixed fee per month
- Percentage fee per amount spent
- Fixed fee per transaction
- The user bank or the gateway bank will charge a merchant fee for allowing credit purchases. This range from 1-5% or more
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