What is an online payment gateway?

A payment gateway lets you accept payments online safely and quickly – like a digital version of a point-of-sale terminal.

It encrypts customer details and sends them to the bank for authorisation in seconds. Once approved, the payment is processed.

How does a payment gateway work?

Although it feels instant, several steps happen behind the scenes:

1. Customer initiates payment: they enter card details or choose a payment option at checkout
2. Encryption: the gateway secures sensitive data to prevent fraud
3. Authorisation request: details are sent to the issuing bank and card network for approval
4. Bank response: the bank checks funds and approves or declines the transaction
5. Confirmation: the gateway updates your site or app so you and your customer know immediately if the payment has gone through.

Benefits of a payment gateway

A payment gateway does more than process transactions. It helps your business run smoothly and builds trust with your customers.

Here’s why it matters:

  • Enhanced security: payment gateways use encryption, tokenisation, and fraud detection tools to keep sensitive information safe and reduce the risk of customer disputes
  • Greater convenience: customers can pay the way they prefer which improves the checkout experience and reduces cart abandonment
  • Faster payments: transactions are processed in real time, so you know instantly if a payment is approved. Many gateways also offer same-day settlement, helping you maintain healthy cash flow
  • Scalability for growth: payment gateways can support recurring billing, subscription models, and international transactions, making it easier to expand into new markets
  • Improved customer trust: a smooth, secure checkout experience builds confidence in your brand
  • Advanced features: many gateways include extras like detailed reporting, integration with accounting systems, and customisable checkout pages.
     

Choosing the right payment gateway for your business

Selecting the right payment gateway isn’t just about cost – it’s about finding a solution that fits your business model, customer expectations and growth plan

Here are some factors to consider:

  • Transaction fees and pricing: look beyond the individual transaction fee. Some gateways charge setup fees, monthly subscription costs, or additional fees for features like fraud protection or international payments
  • Integration and compatibility: does the gateway integrate easily with your e-commerce platform, shopping cart, or invoicing system?
  • Supported payment methods: ensure the gateway supports credit/debit cards, digital wallets, and alternative payment options. If you sell internationally, check for local payment options in your target markets
  • Security and compliance: look for PCI DSS compliance, tokenisation, and advanced fraud detection tools
  • Customer experience: customers want a smooth, mobile-friendly checkout. Test the checkout flow yourself – fewer steps and clear payment options make a big difference
  • Settlement speed: some gateways offer same-day settlement, while others take 2–3 business days. Faster settlement can improve cash flow, especially for small businesses
  • Support and reliability: does the provider offer 24/7 support, and are they committed to keeping their systems available and operational with minimal downtime? Look for a provider with a proven track record and responsive customer service.
     

CommBank payment gateway options

CommBank offers a range of tailored payment gateway solutions so you can accept payments in the way that best suits your customers and operations.

  • PowerBoard: accept online payments in one easy platform. Supports cards, digital wallets, PayPal and more with strong security
  • BPOINT: a secure way to take card and bank payments. Great for recurring, phone or online transactions
  • CommWeb: customisable gateway for online payments. Ideal for businesses needing flexibility and fraud protection
  • QKR for schools: an app for parents to pay school costs quickly. Makes lunches, fees and uniforms cashless and simple.
     

How to setup an online payment gateway

Getting started is simple:

  • Create a business account with your chosen provider
  • Verify your business with your ID and bank details
  • Integrate the gateway with your e-commerce platform or invoicing system
  • Test transactions in the testing environment provided by the payment gateway provider. This allows you to simulate real payment transactions without processing actual money
  • Go live and start accepting secure online payments