What is a Gateway?

A payment gateway (also called a virtual terminal) facilitates the transfer of information between a payment portal (such as a website or mobile phone) and the Front End Processor, or acquiring bank. In simple terms, a gateway is a software solution (usually web-based) that takes the card data, and passes it through the network, so the transaction can be approved, and the funds can clear. Gateways are most common in CNP (Card Not Present) environments, when a magnetic swipe or chip read cannot be conducted. Merchant environments where gateways are most prevalent include website sales, mobile app sales, mail order sales, and telephone order sales.

Benefits of a Gateway

Level III Rates

One of the top benefits of using a web gateway is the ability to obtain Level III interchange rates. Visa and Mastercard created the Level III program years back, and it offers the merchant more competitive interchange rates (lower fees) on all qualifying business card transactions. Merchants who regularly accept business cards, corporate cards, and government purchasing cards, can benefit greatly from this program. At B2B we specialize in Level III processing, and will gladly assist in setting you up with a Level III compatible gateway that can potentially save your company thousands of dollars in interchange fees alone.

Recurring Billing

Another main benefit of using a payment gateway is the built in recurring billing tool. This tool allows the merchant to set up payments that will automatically be processed on a future date. Recurring billing is a great tool for merchants who are charging for a daily or monthly service. Just “set it and forget it,” and the program will automatically run the transactions on the specified date for the specified dollar amount. This tool also works great for recouping back-owed balances from your clients. Do you have a customer that still owes money for goods or services rendered? As long as you have consent from the cardholder you can simply set up an automated monthly payment plan with them and let the gateway do the rest.

QuickBooks Compatible

Our preferred PayTrace gateway allows for complete integration with most versions of QuickBooks accounting software. Why bother with double entries, when the gateway can automate the process for you? The specialized plugin works in conjunction with the gateway software and as soon as the transaction is approved all the pertinent information is reflected in your QuickBooks software in real time.

Preferred Gateways