Payment Gateways in Australia: A Complete Guide
Payment gateways are the technology that securely captures your customer's card details online, encrypts them, sends them to the bank for approval, and returns a yes or no in seconds.
Paying online has become second nature in Australia. People enter card details in checkout forms, use Apple Pay on their phones, or pay deposits via email links. For businesses, this is all powered by the payment gateway.
If you sell online, take bookings, run subscriptions, or send invoices with a "Pay Now" button, the gateway handles the money transfer from the customer to you. Choosing the right one affects your fees, cash flow, and customer experience.
This guide explains what a payment gateway is, how it works in Australia, and how to select the best option for your business.
What is a payment gateway?
A payment gateway is the bit of tech that securely moves payment details from your customer to the banking system and back again with an approval or decline.
When someone pays on your website or through an online form, the gateway:
- Collects their card or wallet details securely
- Encrypts and sends that information to the banking networks
- Waits for the customer’s bank to say “yes” or “no”
- Passes the result back so your site can show “payment successful” and trigger emails or order fulfilment
It’s basically the digital equivalent of the EFTPOS payment on your counter, but for online and in-app payments instead of card-present taps.
Gateway vs merchant account vs all‑in‑one provider
There are a few terms that often get mixed up, so it helps to separate them:
- Payment gateway – The technology that handles the secure passing of payment data and the authorisation step.
- Merchant account – A special type of account where card payments land before they’re settled into your normal business bank account.
- All‑in‑one payment provider – A platform that bundles gateway, merchant account, fraud tools and reporting into one package.
In the past, you might have had to organise a merchant account with your bank, then bolt on a separate gateway. These days, many Aussie businesses just sign up with an all‑in‑one provider that handles the lot and charges a simple per‑transaction fee.
Popular Payment Gateways in Australia
Here’s a rundown of some of the main Australian payment gateway providers businesses use every day. Each has its strengths depending on your business size, tech setup, and customer base.
Stripe
Stripe is a favourite with online stores, tech startups, and subscription businesses. It’s dead simple to integrate into websites and apps, with strong tools for recurring payments, international sales, and custom checkout flows. Great if you’ve got a developer on hand or use platforms that plug straight in.
PayPal
Everyone knows PayPal – it’s the one customers trust because they already have accounts. Good for one-off payments, invoices, “pay by link” options, and basic online checkouts. Works well for service businesses and smaller eCommerce sites that want instant consumer recognition.
Square
Square started with POS and EFTPOS but now does a solid online gateway too. Perfect for businesses that sell both in-store and online – everything syncs together nicely. Simple pricing and extras like invoicing make it handy for cafés, retail shops, and market traders going digital.
Shopify Payments
If you’re on Shopify, this is your no-brainer choice. It’s built right into the platform, so orders, payments, and refunds all flow automatically. No extra transaction fees beyond the standard card rates, which keeps costs down for pure eCommerce stores.
eWAY
A long-time Australian player that’s local-focused and plays nicely with heaps of website platforms. Strong on security, local payment methods, and support for Aussie businesses. Good middle-ground option for mid-sized retailers who want reliability without too much complexity.
Braintree
PayPal-owned but more developer-friendly, Braintree handles complex stuff like marketplaces, drop-shipping, and multi-currency payments. Suits growing online brands that need flexibility and scale.
Adyen
The big-league choice for larger retailers and international brands. Handles massive volumes, omnichannel payments (online + in-store), and tricky global setups. Not usually the first pick for small businesses, but excellent if you’re expanding fast.
Each of these has free sign-up (just transaction fees), Australian support teams, and compliance with local rules. Most offer test accounts so you can try before committing.
How an online payment actually flows
Even though an online payment feels instant, there’s a fair bit going on under the hood. A typical card payment online looks like this:
- The customer enters their details or selects a digital wallet and hits “Pay”.
- The gateway encrypts the data and sends a request through to the processor and card network.
- The customer’s bank checks whether the card is valid, whether there’s enough money, and whether anything looks suspicious.
- The bank sends back an “approve” or “decline” response.
- Your website or app shows the result, creates the order, and kicks off any emails.
- The money moves into your merchant balance, then on to your business bank account on whatever settlement timing your provider uses.
From the shopper’s point of view, it took a couple of seconds. From your point of view, your payout timing and fees depend entirely on which gateway or provider you chose.
What payment methods can a gateway handle?
Most modern Australian gateways like Stripe, Square, or eWAY can handle more than just basic card payments. Depending on the provider, you might be able to offer:
- Credit and debit cards
- Digital wallets like Apple Pay and Google Pay
- Local debit via card schemes or “EFTPOS online” style options
- Account‑to‑account payments or PayID
- Direct debit from bank accounts
- Buy now, pay later or instalment options
- One‑off payments, saved cards, subscriptions and recurring billing
The trick is to match what you offer with how your customers prefer to pay. A younger online audience might lean towards wallets and BNPL, while B2B clients might prefer cards and direct debit.
Fees and costs to watch
Payment gateways in Australia aren’t free, but the merchant fee structures are fairly straightforward. Common charges include:
- Per‑transaction fee – Usually a percentage + small fixed amount (Stripe around 1.75% + 30c, PayPal 2.6% + 30c, Square similar).
- Monthly or annual fee – Some charge for premium features or higher support.
- Chargeback fees – Typically $15–25 when disputes happen.
- Currency conversion fees – Extra if taking international cards.
When comparing options, check the total cost at your average order size and volume, not just the headline percentage. Square and Shopify Payments often win for simplicity, while Stripe or Adyen can get cheaper at scale.
Security, fraud and compliance
Any time card details are involved, security is a big deal. A decent gateway will:
- Use encryption to keep payment data secure in transit
- Be compliant with card industry data standards
- Offer options like 3‑D Secure or extra verification for risky transactions
- Provide tools or reports to help you manage chargebacks and suspicious activity
Providers like eWAY and Stripe make this easy so you don’t have to worry about the tech side. For most small to medium businesses, using a reputable gateway is the simplest way to stay on top of security.
Australian rules on surcharging and transparency
In Australia, businesses are allowed to add a surcharge on card payments, but there are some ground rules:
- You can only pass on what it actually costs you to accept that payment type.
- You can’t turn it into a profit centre by over‑surcharging.
- Customers should be able to see clearly if a surcharge applies before they pay.
Australian payment gateways like Square, PayPal, and Stripe have built-in tools to calculate and apply surcharges automatically by card type, or let you switch it on or off.
How payment gateways in Australia fit with POS and EFTPOS
If you have a physical store as well as an online presence, your payment gateway is just one part of a bigger payments stack that also includes your POS system and EFTPOS terminals.
Square shines here – one login for online gateway, POS, and terminals, so online and in-store sales all feed into the same reporting. Other gateways like Stripe integrate with POS systems via apps or APIs. The ideal setup means refunds, discounts, and vouchers work both online and offline, and your accounting gets tidy data.
How to choose a payment gateway in Australia for your business
There’s no single “best” gateway for every Australian business, but here are a few questions that help narrow it down.
1. How do you sell?
- Purely online store? Shopify Payments or Stripe.
- Service business sending invoices? PayPal or Square Invoices.
- Mix of in‑store and online? Square.
- Subscription model? Stripe or Braintree.
2. What do your customers expect?
- Local or international? Wallets, BNPL, or bank transfers?
3. Fees vs features
- Thin margins? Prioritise low fees. Higher margins? Go for better tools.
4. Integration
- Ready-made plug‑ins? Custom development needed?
Test a few with sandbox accounts, check your numbers, and pick what fits your workflow.
Trends shaping payment gateways in Australia
The online payments space moves quickly:
- More wallets, PayID, and instant bank payments.
- Smarter fraud detection without blocking good customers.
- Simpler sign-up for small businesses.
- Unified stacks across online, in-store, and invoicing.
Pick a provider that keeps up without overcomplicating things.
Wrapping it up: Get the right gateway and forget about it
Payment gateways in Australia are the foundation of every online sale your business makes. Get this piece right, and you’ll have reliable cash flow, happy customers who trust the checkout, and less time spent fiddling with disputes or reconciliation.
For most Aussie businesses, start simple. If you’re on Shopify, use Shopify Payments. Selling in-store and online? Square’s got you covered. Need flexibility or subscriptions? Stripe. Want local support? eWAY.
The key is matching the gateway to how you actually operate – not chasing the shiniest new feature. Sign up for a test account, run some dummy transactions, crunch your real numbers, and go live. Once it’s humming along, you can focus on growing the business instead of worrying about payments.
In a world where customers expect instant, secure checkouts across every channel, a solid payment gateway isn’t just nice to have – it’s table stakes for staying competitive down under.
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