South African Payment Gateways

10 Jul 2015  |  eCommerce Web Web Development

Choosing your payment gateway is an important part of the process of setting up your ecommerce store. As the payment gateways have different pricing models, it is important to pick one that suits your business, and provides the features and security that will ensure that users can easily and securely transact with your store.

We’ve selected some of favourite payment gateways below, and have outlined the features of each in order to make your decision a little easier. Some of the payment gateways will require setting up a merchant account with your bank, and others do not.

Paygate

Requires a merchant account: Yes
Website: www.paygate.co.za
Contact number: 0861 102 172

Paygate has been in business since 1996, and provides various payment gateway options for Mastercard, Visa, American Express, and Diners Club. PayGate has a number of options including Payweb which easily adds payment functionality to your website via a transferal to their payment page, PayXML which allows more integration options so you can host the payment page on your own website, and Paybill which allows customers to offer the functionality to pay any bill online. Contact PayGate to get their latest pricing options.

MyGate

Requires a merchant account: Yes
Website: www.mygate.co.za
Contact number: 021 555 3260

MyGate is a well-respected online payment gateway provider, servicing many top merchants such as DSTV, Naspers, HomeChoice, Mr. Delivery and Web Tickets. MyGate offer 3 main pricing tiers which have varying monthly costs, and transaction fees which can be chosen based on the number of transactions through your store . (View the Mygate pricing options)

MyGate also includes recurring payment options, and mail order or call centre payments, which turns your PC into a point of sale system. MyGate’s Tokenisation system is a great feature which turns card-holder details into a dynamically generated “token” which can be re-used for subsequent purchases. MyGate also features a mobile friendly payment page which allows you to take advantage of the increase in “mobile commerce”.

Virtual Card Services

Requires a merchant account: Yes
Website: website.vcs.co.za
Contact number: 082 561 7525

Established in 1996, Virtual Card Services (VCS) was one of the first payment gateways in South Africa. At the time of this article VCS charges R 285.00 setup, R0.57 per transaction for authorisation, and R0.57 + 0.5% of the transaction for settlements. (Maximum charge of R 4.56) The monthly fee is R 165.30, and bulk discounts are available based on the number of transactions. (See the VCS pricing structure here)

VCS offers a number of related products such as virtual terminal for processing transactions in bulk, retrying declined transactions, and giving refunds to name a few. Their Virtual EFT service, allows merchants to create single or recurring credits/debits and presenting these to the Automated Clearing Bereau (ACB) for processing.

Setcom

Requires a merchant account: Yes
Website: www.setcom.co.za
Contact number: 011 555 1110

Setcom offers two simple pricing options, one for credit card processing only and another option including SID Instant EFT. A fraud screening options is also available at R220.00 per month, with a R1,499 setup fee. (Latest pricing for Setcom is available here) Setcom also pays credit card transactions directly into your bank account, so you do not have to wait for the money to clear.

PayPal

Requires a merchant account: No
Website: www.paypal.com/za

PayPal is one of the leading global payment services, and offered merchant services to South Africa from 2010 onwards. No setup fee is charged, and pricing ranges between 2.4% to 3.9% + US$0.30 per transaction. PayPal has partnered with FNB to easily allow withdrawing or payments using their bank accounts, and also for non-FNB customers via the FNB Withdraw service.

The options available for online payments via PayPal include the PayPal express checkout for PayPal customers, and the PayPal standard checkout which authorises payments and return the user their your website.

PayU

Requires a merchant account: Not for PayU Easy. (PayU Plus, and PayU Enterprise require one)
Website: www.payu.co.za
Contact number: 086 111 72 98

PayU is one of the largest payment providers worldwide, and offers a variety of options for business and the largest number of payment methods of any gateway in South Africa. PayU is also available in 16 countries, and has a robust enterprise ready system for transaction queues for businesses requiring a large number of transactions at a time. The PayU Wallet allows consumers to pay from their wallet and not need to type in credit card details on checkout.

SnapScan

Requires a merchant account: No
Website: www.snapscan.com

SnapScan currently empowers over 17,000 merchants via their handy payment app, and have now launched a method of paying via the app for online purchases. Merchants sign up for an account, and customers then use the app and scan a QR-code unique to the order to facilitate payment. With no need to enter credit card details the process is simplified and more secure.

SnapScan charges a simple fee of only 3% per transaction with no monthly fees. (See the SnapScan pricing here) View our article on the SnapScan online payment facility here.

SID (By Setcom)

Requires a merchant account: No
Website: www.setcom.co.za
Contact number: 011 555 1110

SID is a Setcom product that provides an instant EFT payment service, that allows a customer to make a payment directly to the merchant using a version of their online banking service, with deposits made in real time. With the amounts pre-populated on their bank’s payment screen, the customers merely has to confirm the order and it will be fulfilled immediately.

Subscription charges are between R250 to R500 per month, and a minimum of 1.5% per transaction, which falls away for higher transaction volumes. (Latest pricing for SID is available here)

PayFast

Requires a merchant account: No
Website: www.payfast.co.za
Contact number: 0861 729 327

PayFast have simplified the pricing by offering no setup fees or monthly fees, and only 2.0% per transaction + R2.00 for debit or credit cards. (See full pricing here) PayFast also offer a InstantEFT option using a code which they then “scrape” on their bank account, and almost immediately process the transaction. This offers a much easier InstantEFT facility at 2.0% (minimum R2.00) per transaction.

PayFast also offers bitcoin, payD, Ukask, and mobicred payments, and they power some of the leading online merchants in South Africa including Takealot, Sportsmand Warehouse, and Legendary Brands.

 

Please get in contact with us should you not see your favourite payment gateway above!

 

 

 

 

 

 

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