Question 1

What is the difference between a payment gateway and a payment processor?

Accepted Answer

A payment gateway is the technology layer that transmits card data between your checkout and the payment network. A processor handles the actual movement of funds between the issuing bank and your account. Many modern platforms combine both in a single product, so the distinction matters less for most operators than it did a decade ago.

Question 2

How do I choose between flat-rate pricing and interchange-plus pricing?

Accepted Answer

Flat-rate pricing is simpler and predictable — one rate for all card types. Interchange-plus passes through the actual card network cost plus a fixed margin, which is usually cheaper at volume but requires understanding the underlying interchange rates. Most early-stage businesses start with flat rate and negotiate interchange-plus once monthly volume justifies it.

Question 3

What is dunning and why does it matter for SaaS?

Accepted Answer

Dunning is the process of automatically retrying failed recurring payments and communicating with customers about payment failures. A well-configured dunning sequence typically recovers 20–40% of failed charges that would otherwise become involuntary churn. The quality of retry logic and email sequences varies significantly between providers.

Question 4

Do I need a separate merchant account or does the platform handle it?

Accepted Answer

Aggregated platforms bundle merchant accounts across many businesses, which enables fast sign-up but can result in account holds or reserves for higher-risk businesses. A dedicated merchant account via a traditional acquirer takes longer to set up but provides more stability for established businesses with strong processing history.

Question 5

How should I think about fraud tools when choosing a payments provider?

Accepted Answer

Look at the rules engine — can you write custom fraud rules based on your customer patterns? Check 3D Secure implementation quality. And understand who absorbs liability for disputed transactions. If you are in a higher-risk category, these details matter more than the processing rate.

Question 6

What does accepting local payment methods actually involve?

Accepted Answer

Each local method — bank transfers, digital wallets, specific regional schemes — has its own settlement timeline, dispute process, and integration requirements. Adding a method is not just a configuration toggle; it affects your reconciliation, treasury, and support workflows. Evaluate the operational overhead, not just the technical availability.

Payments marketplace

Flatpay

Stripe

Chargebee for Startups

Square

bunq

Stax

Payrix

Coinbase

Skydo

Infinity

Aspire

Bolt for Business