Payment Gateway
A service for accepting payments. Stripe, PayPal, Tranzila, Cardcom. Fee: 1.4-3.5% plus a fixed amount.
In practice
The right gateway means more conversions and lower fees. A gateway that adds friction to checkout causes abandonment.
Common misconception
'All gateways are the same.' Stripe is global. Tranzila/Cardcom serve Israel. PayPal offers trust. Shop Pay is Shopify's own.
How to fix it
High abandonment? (1) how many steps does the gateway add? (2) is 3DS mandatory? (3) does it support Apple Pay / Google Pay?
Example
A clothing store switched from an old gateway to Stripe plus Shop Pay. Checkout went from 4 steps to 2. Abandonment dropped from 72% to 54%. $7,800 more per month.
Priority
Re-evaluate your gateway once a year.
Related terms
Keep learning. Metrics that touch the same area:
- PCI DSSPaymentsSecurity requirements for any business handling credit card data. Non-compliance means fines and account termination.
- ChargebackPaymentsA customer disputing a charge through their bank. Costs the merchant: a $7-15 fee plus the lost amount. Above 1% puts the account at risk.
- BNPL – Buy Now Pay LaterPaymentsKlarna, PayPlus, Afterpay — interest-free installment payments. Raises AOV by 20-30% but carries a 2-6% fee.
- Refund PolicyPaymentsThe terms and process for refunding a customer. A generous policy raises conversions by 18% on average.
- TokenizationPaymentsReplacing a credit card number with a unique string (a token) for storage and reuse. Enables repeat charges without storing card details — reduces breach risk and supports PCI DSS compliance.
- 3D SecurePaymentsAn additional security layer for card transactions — the customer verifies identity via an SMS code or biometrics. Reduces fraud by 80%+ and shifts liability from the merchant to the issuing bank.
Jimmy tracks your Payment Gateway, automatically
WhatsApp alerts when something important changes. No dashboards, no hassle.