Philippine Based Online Payment Gateways

How online payment works (Source: Bancnet On Line)

Many Filipino online sellers are maybe not aware that there are many local payment gateways. Most certainly are aware of PayPal, Volusion, Google Wallet and the likes of international payment gateways.



First, what is a payment gateway? It is a service that automates the payment transaction between the shopper and merchant. It is usually a third-party service that is actually a system of computer processes that process, verify, and accept or decline credit or debit card transactions on behalf of the merchant through secure Internet connections (Source: Webopedia).

Since it is a service provided by a third party other than the merchant or online seller and the buyer, a certain amount is charged for the use of the facility. The charges differ from one service provider to another but ordinarily will not exceed three to five percent of the total transaction amount. Who will shoulder that fee can be arranged between the direct parties involved (Buyer and seller).

There are quite a number of these payment gateways that are Philippine based:

Bancnet	AsiaPay
Megalink	PayGate
Weepay	PesoPay

Using these facilities is more secured for both seller and buyer. There are some business requirements and documents needed by merchants to avail of the services offered by these gateway providers. So buyers can be assured of the legitimacy of who they are transacting with.

Since they are Philippine based it will be less tenuous since all transactions can be in peso so there is little or no foreign exchange risk. However, it will be different if the transaction is between global parties. Using a local payment gateway is also advantageous to the Philippine economy.



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