What Is a Payment Gateway? Website Payment Methods and Fees Explained

If you sell things or take deposits on a website, you'll definitely hear the term "payment gateway" 💳 It sounds technical, but it's really just the whole process of "letting customers pay on your website, then getting that money to you."

This article explains in plain language what a payment gateway is, how common payment methods work, and how fees are calculated. All the numbers come with sources.

What is a payment gateway?

When you take money online, you can't just accept cash from the customer, so you need someone in the middle to handle it for you:

• The customer picks what they want on your website and clicks checkout
• Your website sends the customer to the payment gateway's payment page, where they pay by card or get a transfer account number or convenience-store payment code
• Once the customer has paid, the payment gateway tells your website "this order is paid"
• The money first goes into your account with the payment gateway, and a few days later it's paid out to your bank account

This "collect, notify, pay out" service is what people call a payment gateway. Common providers in Taiwan include ECPay, NewebPay and PAYUNi. They're called "third-party payment" services because they stand between the buyer and the seller and handle the money.

How is third-party payment different from a bank card merchant account?

Many card machines you see at shop counters come from contracts signed directly with a bank, known as a "contracted merchant." Banks usually look at company registration, business size and how long you've been operating, so small shops or individuals just starting out may not get approved.

With third-party payment, the payment gateway has already signed contracts with the banks and then lets merchants apply for an account with it. ECPay, for example, says individuals, companies, sole proprietors and organizations can all apply (ECPay service info), so the bar is a bit lower than going to a bank directly 🏦

Common payment methods

Credit cards

The customer enters their card number on the payment page, and once the bank authorizes it, the payment is done. It's instant and customers are used to it. Installment payments are an extension of credit cards, though some providers require a higher-tier contract to enable them.

ATM virtual bank accounts

The system creates a unique transfer account number for each order. The customer transfers money through online banking or an ATM, and the system automatically matches it to the right order. No more asking customers for "the last five digits of your account," which makes reconciliation much easier.

Convenience-store payment codes and barcodes

The customer gets a code, enters it at a convenience-store kiosk, prints a payment slip, and pays cash at the counter. With a barcode, they just have it scanned at the counter. Customers can pay even without a credit card.

Mobile payments

Things like LINE Pay, JKOPay, Taiwan Pay and Apple Pay. To accept mobile payments on a website, the usual way is to enable them through your payment gateway, rather than connecting each one separately.

Installments and recurring payments

Installments let customers pay by credit card over several payments. You still receive the full amount up front, but the fee is higher than a one-time payment, and the more installments, the higher it gets. With ECPay, for example, installments are a service for contracted sellers, with published rates from 3% to 12% (ECPay fees page) .

Recurring payments mean the customer links a credit card and is charged automatically every month or every period. They're often used for subscriptions, monthly memberships or regular classes. Whether each provider offers this and how much it costs depends on the plan, so ask about it separately when you apply.

How fees are calculated

Each payment method is charged a bit differently, but there are roughly two types:

• Percentage-based: credit cards and mobile payments are usually a few % of the transaction amount
• Per transaction: convenience-store payment codes and barcodes are usually a fixed fee of a few dozen NT dollars each
• Some are a mix: for example, ATM virtual bank accounts charge a percentage but with a minimum amount

Here's an example using ECPay's published rates for regular sellers (ECPay fees page, checked 10/2026, before tax):

• Domestic credit card, one-time payment: 2.75%, minimum US$0.16 per transaction
• ATM virtual bank account: 1%, minimum US$0.48 per transaction
• Convenience-store payment code: US$1.00 per transaction; convenience-store barcode: US$0.52 per transaction

For example, if an US$35 order is paid by credit card, the fee is US$0.89 (before tax) plus an order processing fee of US$0.03 per transaction; if it's paid with a convenience-store payment code, it's a flat US$1.00.

So for the same US$10 order, the fee you pay depends on which payment method the customer chooses. For low-value orders, per-transaction fees like convenience-store codes take a bigger share; for high-value orders, percentage-based credit card fees add up to more 🧾

Each provider adjusts its numbers, and rates also vary by contract, so always go by each provider's official announcements.

Payouts: when the money reaches you

A successful customer payment doesn't mean the money hits your bank that same day. The usual process is:

• The money first goes into your account with the payment gateway
• After a set payout period, it becomes available to withdraw
• Then you withdraw it, or it's transferred automatically, to your bank account. Some providers charge a small fee per withdrawal

For ECPay regular sellers, for example, the official info says payouts happen within 10 days after payment, and interbank withdrawals cost US$0.48 each (ECPay fees page). Other providers have different payout periods; we've compared them in Which payment gateways are there in Taiwan?.

A website and a payment gateway are two different things

Many people mix up "building a website" and "applying for a payment gateway," but they're actually separate:

• Payment gateway account: you or your company apply with the payment gateway. The contract, account and fees are all between you and the payment gateway
• Payment gateway integration: the website is programmed so that at checkout it sends customers to the gateway's payment page, then automatically updates the order status after payment

For our services, E-commerce Website every plan includes payment gateway integration (your choice of ECPay or NewebPay); Small Shop Website booking deposits and event registration fees connect to your own ECPay account, so the money goes straight into your ECPay account. We don't handle it and don't take a cut 🙌

Quick recap

• Payment gateway = a service that collects payments, notifies your website and pays out to you
• Different payment methods have different fee calculations: credit cards are mostly percentage-based, convenience stores are mostly per transaction
• The money goes into your payment gateway account first, then reaches your bank a few days later
• Go by each provider's official announcements, and check their latest fees page before applying

If you'd like to know which payment gateways you can choose from in Taiwan, read Taiwan payment gateway comparison next. If you'd like to talk about how your website should take payments, feel free to Contact Us ask us 💬