Payment Gateway

🚀 Two ways to accept payments – one payment gateway

At ePay, you can choose the integration method that best fits your business.

Choose Checkout – the most flexible payment window on the market. ePay Checkout is designed to adapt to your business and your needs, giving you a professional and user-friendly payment experience without hassle. It’s easy to set up, requires minimal technical knowledge, and is perfect if you want to get started quickly – without compromising on functionality or design.

Or go with Blocks – our fully integrated payment solution, where you can embed payment methods such as card payments and wallet options directly on your own website. With Blocks, you gain full control over the design, creating a seamless checkout experience that matches your brand identity from start to finish.

Your payment gateway is the engine behind all online payments

But what does the engine actually do – and what happens when the customer clicks “buy”?
In that moment, a series of technical processes begin: data is encrypted, authorized, and approved – all within seconds. For you as a webshop owner, it should just work – securely, smoothly, and without worries.

This guide gives you a complete overview of how a payment gateway works, how it differs from an acquirer, and how to choose the solution that best fits your business.

What is a payment gateway?

A payment gateway is the digital equivalent of the card terminal in a physical store. It’s the system that handles the actual payment when a customer enters their card details in your webshop.

The gateway ensures that the data is securely sent to the acquirer, who transfers the money from the customer’s account to your company’s account. Without a payment gateway, your webshop wouldn’t be able to accept card payments online.

In short:

• The customer enters their payment details.
• The payment gateway securely forwards them.
• The acquirer approves and transfers the money.

A payment gateway acts as the link between your website, the customer, and the bank – enabling secure payments in just a few seconds.

What should a good payment gateway be able to do?

When choosing a payment gateway, there are five things you should always look for. These separate a reliable solution from one that may cause problems later on.

1. Security and stable operation
   Your gateway should be PCI-certified and proven to be stable. Downtime or errors in the payment window cost you both revenue and trust.
2. Multiple payment methods
   Customers expect to pay the way they prefer – from Dankort and Visa to MobilePay and Apple Pay. The more options, the more completed purchases.
3. Fast and competent support
   When a payment fails, time is critical. A good gateway offers real human support that understands both the technology and your business.
4. Easy integration
   A user-friendly gateway provides ready-made modules for the most popular e-commerce systems. This saves you time, errors, and development costs.
5. Flexible agreements
   The option to use multiple acquirers, different currencies, and adjustable fees gives you freedom – and ultimately a cheaper solution.

A good payment gateway makes the payment process invisible to the customer – everything just works.

What’s the difference between a payment gateway and an acquirer?

A payment gateway and an acquirer are two completely different things – but the payment industry is often complex and confusing, especially for new business owners.

“Do I need Nets to accept payments?”
“Is an acquirer necessary?”
“Can’t I just use ePay?”
“What am I paying the acquirer for – and why do I also need ePay?”

We get these questions – and hundreds of variations of them – every day at the ePay office.
And while we love talking on the phone, we also see the need for a clear explanation of what a payment gateway and an acquirer actually do.

The quick overview

When you accept online payments, there are usually two parties involved (besides you and your customer): your acquirer and your payment gateway.

Each has its own role:

Your acquirer
Your acquirer is a bank that transfers the money from your customer’s account to your own. It’s also the acquirer who approves your business to accept card payments. That approval is called an acquiring agreement.

Your payment gateway
Your payment gateway provides the page where your customer enters their card details and handles the communication between your website and your acquirer. In short, the payment gateway works just like a card terminal in a store.

The payment process from the customer’s perspective

1. The customer visits your webshop.
2. The customer likes what they see and adds products to the cart.
3. The customer proceeds to checkout and enters their name, email, and address.
4. The customer clicks the pay button, and a page opens where they enter their card details – this is where the payment gateway comes in.
5. Once the payment is complete, a receipt page appears with an order number and a thank-you message.

👉 For the customer, the purchase is finished – but the payment process has just begun.

The technical process

When a customer completes a purchase, your payment gateway communicates with your acquirer. The acquirer checks that the card is valid and reserves the amount. The payment is now authorized.

When you’re ready to ship the product, you can capture the payment – either directly in your webshop system or by logging in to your payment gateway’s administration.

If you sell a product that the customer receives immediately, you can capture the payment at the same time it’s authorized – this is called instant capture.

When you capture a payment, the gateway notifies the acquirer to transfer the money. It can take several days before the funds reach your account – depending on your acquirer and the card type used.

If the authorization fails, the payment is declined. Common reasons include:

• Incorrect card number or CVC code.
• The card is blocked or has insufficient funds.
• The business isn’t approved for that card type or currency.
• The acquirer has suspended the account.

In ePay’s back office, you can see declined payments under Transactions, where a specific error code explains why the payment failed.

If necessary, you may need to contact your acquirer for more details, since they handle the actual card validation.

What exactly does a payment gateway do?

As mentioned, the payment gateway provides the payment page (where the customer enters card details) on your webshop. A payment gateway is also called a PSP – Payment Service Provider.

In short, it handles card data on your behalf and sends the transaction information to the acquirer, who validates the card and later transfers the money.

Because card data is highly sensitive, a payment gateway must comply with strict PCI security standards and be regularly approved by Visa and Mastercard.

A payment gateway does:

• Provide the payment form for card data on your website.
• Give access to an admin area to manage transactions.
• Advise you on payment methods and solutions.

A payment gateway does not:

• Transfer money from the customer to you.
• Approve your business to accept payments.
• Handle your acquiring agreement or bank account.

Everything that happens up to the point of capturing a payment is handled by your gateway. Everything after that is handled by your acquirer.

What is an acquirer?

An acquirer is a bank that approves your business to accept online card payments and transfers the money from your customers to you.

To accept payments, you need a valid acquiring agreement. This agreement determines which card types you can accept.

You must meet certain requirements before an acquirer approves your business. For example, according to Nets’ guidelines, your website must clearly display:

• Your business name, registration number, address, email, and phone number.
• Descriptions of the goods or services you sell (including prices and taxes).
• Delivery terms and return policy.
• The accepted payment card logos.
• The transaction currency (DKK must always be specified for Danish kroner).

Which acquirers can I choose?

There are several acquirers to choose from.
For example, Nets is the only one that can offer Dankort agreements, while there are multiple options for international cards.

Before choosing, you should consider two things:

1. Customer service
   How quickly does the acquirer respond? An acquirer is a key partner, so choose one that prioritizes your business.
2. Pricing
   A 2% transaction fee might not seem like much, but it adds up fast. Compare several acquirers and negotiate when possible.

What are the alternatives?

If you’re just starting out and want to keep costs low, you can choose a wallet solution (such as PayPal) instead of a traditional acquirer agreement.

Advantages:

• Quick and inexpensive to set up.
• No complex application process.

Disadvantages:

• Higher fees in the long run.
• Less familiar payment options may reduce trust among customers.
• You can’t accept pure Dankort payments via PayPal.

Wallet solutions can be great for new webshops testing the market – but if you want to appear professional and trustworthy, you should have agreements with acquirers so you can display the logos for Dankort, Visa, and Mastercard on your site.

When should I contact whom?

Contact your acquirer when it concerns:

• Money or your bank account.
• Your acquiring agreement.
• Refunded or declined payments.
• Transaction fees or settlement periods.

Contact your payment gateway when it concerns:

• Setting up your payment integration.
• Authorizing or capturing a payment.
• Integration with your webshop system.
• Available payment methods and technical support.

I’m starting a webshop – what should I do?

1. Decide which card types and markets you want to support.
   This will help you choose the right gateway and acquirer.
2. Choose a gateway and acquirer that offer good support.
   Accessibility and service matter – you’ll be grateful for quick help when something breaks.
3. Apply for an acquiring agreement in good time.
   Make sure your website meets the acquirer’s requirements – otherwise, approval may take several extra weeks.