Malaysian payment gateway is today’s norm in the world of digital transactions. Assuming you have a credit card in your possession, the payment gateway in Malaysia might be your usual way of purchasing without having to use hard cash unless you are in an emergency. If you are looking for a place to start, these six payment gateways in Malaysia will be good starting points to tee yourself off to.
Whether they are perfect for you or otherwise is up to your own decision. In the end, they still have one common respect of providing the payment gateway service that you want.
iPay88 may be one of the names that you have heard before when purchasing online with your phone. An online payment gateway that is registered with Bank Negara Malaysia and compliant with PCI DDS, financial security and fraud protection are its main objectives.
This is one of the best payment gateway in Malaysia to start with because it is easy to integrate it online due to the variety of platforms that can accept payment through iPay88 including mobile apps and POS systems.
If your business sells its services or subscriptions, iPay88 would still be a recommendation for you too as it allows options for recurring payments, and as a customer yourself, you could easily manage donations and bill payments with that in line.
iPay88 can be paid with up to 37 channels including PayPal, e-wallets, credit cards and all major Malaysian banks like CIMB and AmBank. “Buy now, pay later” options are also possible with PayLater. If there is a downside to consider in iPay88, it is that you are out of luck if you are not living in Southeast Asia because it is one of the online payment gateways that is limited to that region only.
Plus, your customers will not have an easy time requesting refunds if they make a mistake during their transaction through iPay88.
For more information about iPay88:
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eGHL is another Malaysian payment gateway company that caters to Southeast Asian businesses and accepts payments from both card and non-card channels. Their user-friendly plugins, API and SDK, makes integration easy for your business, especially when you are using e-commerce sites like EasyStore or SiteGiant.
The catch of eGHL is that it boasts an easy-flowing payment system where redirections will not be so frequent that it wastes your time by loading and loading. “BUY NOW” buttons are also unlimited at your disposal to share your purchase links with.
Like iPay88, eGHL also complies with PCI DSS to process transactions while ensuring that the transactional data is stored and transferred out of reach of online attackers. Besides, it also shares the same cons as the other as it is also only limited to Southeast Asia and any easy refund options do not really exist.
For more information about eGHL:
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What is a list of payment gateway comparison in Malaysia without Paypal? Of course, you can create a Paypal account for both your own and your business’s uses. This is also useful if you are working as a freelancer, which you can use your own Paypal.me link for clients to pay you through.
Since you just have to share that link with your clients or customers to receive their payments in your Paypal account, you don’t have to worry about exposing your bank details since it won’t happen. Paypal also has a “Buy Now, Pay Later” option that offers flexible purchasing options for your customers to choose.
Furthermore, if you want your online sales protected, Paypal’s Seller Protection does the job for you. If your purchaser files a fraudulent claim, chargeback or payment reversal, Paypal will temporarily suspend the funds and look into the legitimacy of the claim through proof of shipment or delivery.
Once it is proved that the order was genuinely fulfilled, the funds will be made available to you. Seller Protections covers tangible items like toys, apparel and electronics, online and consulting services, and fraud claims on any eligible product delivery.
The con that you have to face, especially as a business owner or freelancer, is that for every payment you receive, fees will be charged so you do not get exactly 100% of the money.
For more information about Paypal:
Razer Merchant Service
Remember paying for your Steam codes with MOLPay in a 7-Eleven? If you do not know yet, MOLpay is now what is known as Razer Merchant Service, or more accurately, you now have to purchase Razer Gold to buy a Steam wallet code through Razer.
Razer Merchant offers both online and offline payment options. Online, there are features ranging from Secure 1-Click to get rid of the inconvenience of keying credit card numbers to recurring payment so customers can keep up with their important payments without missing out.
Payment channels range from e-wallets and online banking to DirectDebit. Offline, Razer Merchant also supports bill payments, reloading and gift cards. If your business is going to offer the services of topping up phone credits or so, Razer Merchant is also a good payment gateway to integrate.
This way, you offer more options for your customers to top up other than mobile credits when they are buying offline.
Razer Merchant is Southeast Asia’s leading online payment gateway as they serve other blue chip brands such as Grab, Starbucks, Lazada, Shopee, and so on. If you are wondering whether Razer Merchant is related to the Razer gaming brand that you heard of, you thought correct, as it became part of Razer Inc in 2018.
For more information about Razer Merchant Service:
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Stripe Payment is another payment gateway that you can use to fit your business with, although the software isn’t easy to integrate with due to its powerful API plugin. Still, it is easy to use and is great when you have an international business to manage too.
With Stripe Payments, you get to use business management tools that it offers, ranging from financial management and fraud prevention to sending out invoices and issuing cards.
The downsides of Stripe Payments are the difficulty of implementing itself into your business, thus you may need an experienced technician to do that. Aside from lacking refund options, it has no installment plans.
For more information about them:
senangPay is another Malaysian payment gateway that you can integrate to your first business. Like iPay88, it is also registered with Bank Negara Malaysia and, of course, compliant with PCI DSS. Additionally, they are officially a payment facilitator for Mastercard, partners with PayNet and certified by GeoTrust for security.
Payment methods vary from e-wallets to cards. It has many features typical of payment gateways including auto-settlements, recurring payments, “buy now, pay later” and a lot more.
senangPay has four packages that you can use to set it up. If you are only selling on social media, for example, the lowest package is the option for you at a price of RM300 and the limited acceptance of e-wallets only. The third and most expensive package offers a lower transaction rate of 1.8% and also accepts payments from Mastercard, FPX and pay2phone mobile tap terminals.
If you want a faster approval of your transaction, the fourth package makes it possible, though it only accepts Mastercard and FPX. Choose this if your products are also advertised in foreign currencies and running on a website.
For more information:
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What Is Payment Gateway
If you are wondering what exactly this is about, the gist is that they are a technology that merchants use to accept your credit or debit card as a payment method. A payment gateway automates transactions between customers and merchants, this information is then safety transferred to banks.
The prominence of online payments doesn’t really shrink down the frequency of using hard cash, but because of the benefits that provides for the main sake of convenience, it becomes a transaction method that at least half of your customers would likely choose unless something limits their options to physical cash instead.
This technology is constantly updated to suit your needs as a customer. In the old days, you had to sign a paper while a terminal accepted your credit card with magnetic strips. When chip development technologies existed, PIN numbers became the mainstay of accepting credit card payments.
Alternatively, you can also use your phone to pay for your stuff rather than with your credit card, and this is common in online shops.
Malaysia is not an exception in accepting payments with credit cards too. There are a few payment gateway companies in Malaysia that you can get to know with this payment gateway Malaysia list. If you happen to own a business and you want to integrate this system, this is for you. To do this, you must ensure that your business accepts online payment from multiple channels and your payment processor be connected to an e-commerce website.
Furthermore, your business must support consumer (B2C) and B2B payments and be integrated with retail points of sale (POS) systems as well as financial systems.
Who Uses Payment Gateways
Customers will use payment gateways due to the convenience of paying online in one swoop from multiple channels and finish transactions quickly. Besides credit or debit cards, it is fair game to anybody with online bank accounts, e-wallets, or other payment gateway applications. Meanwhile, e-commerce managers utilize payment gateway software to accept payment from different channels.
Financial professionals also use payment gateways as a method to track payment and financial performances of companies that use the system for transactional processes.
How Payment Gateway Works
The payment gateway works by validating your card’s details and ensures that there are enough funds inside your card to make the transaction towards merchants. It is the tunnel between the seller and you, or at least your card. The details are encrypted as a security measure through the transaction process.
The same is pretty much applied to online transactions, but rather than using a card, you might use other payments such as online banking.
Advantages of Using Payment Gateway
The obvious advantage of a payment gateway lies in its convenience. A swipe with a card onto a payment gateway technology is already enough to complete the transaction as long as your card has sufficient funds or the device is working well as intended.
Furthermore, when your business is offering other payment methods besides cash and cards, not only will the customers have various access to their money, but it also saves the hassle of adding funds digitally or withdrawing from a nearby ATM terminal while a queue of leaving customers is building up.
Payment gateways also save labor costs as you no longer have to rely on a human employee to manually transactions, instead the system does most of the work. You can, however, reassign them to more urgent or important tasks to lower the chance of running into mishaps in the middle of your working day. Plus, you also have a higher chance of avoiding human errors in transactions. Some of these payment gateway services provides the ability to connect to your accounting software as well so you save all that manual data entry labor.
Besides, payments are also secured as the data is encrypted, protecting both yourself and customers from fraud and theft.
Disadvantages of Using Payment Gateway
It is expensive to set up a payment gateway for your business, as the price can cost around the hundreds, the examples which you can find out later in the FAQ section. Some payment gateways, however, do not charge you for setting them up.
Also, a lot of payment gateways tend to be limited in options and availability. If it isn’t available in your country or that payment gateway does not offer your preferred payment option, you are out of luck.
Like any other software, payment gateways are vulnerable to cyber attacks if their digital security isn’t reinforced enough. Months and years of work can be lost or stolen, and if they also involve company and customer information, this compromises the security of both your business and your customer’s personal life.
Besides, payment gateways usually rely on Internet connections to actually work, so if your business has a poor connection, the system will either be laggy or not function at all until the network is stabilized again. It can be both a nuisance and a security threat as results of today’s performances are delayed as a result, and you may be exposed to anyone snooping or planning to digitally breach through your payment gateway system.
Features of Payment Gateway
Different payment gateways have different features that may suit your business model. In a general perspective, encryption is what they use to protect sensitive details of your payment channel, such as cards or bank accounts. Payment gateways are also compatible with many devices, and you don’t even need a web developer to add their digital payment solution to your own website.
There are also merchant tools that you may commonly see when browsing payment gateways. Recurring payments, “buy now, pay later”, 24/7 customer support, and various payment options are some of the examples that you will see yourself integrate with your business.
Frequently Asked Questions (FAQs)
The answer to that is none of them can truly be considered the best payment gateway Malaysia, as each has their own pros and cons. It depends on the nature of your business and your budget. For instance, if you are an e-commerce business, iPay88 will be the most suitable for such a case. Alternatively, GHL is the best option if your business is retail in nature. PayPal is good for you if you are not only work on your own in careers such as an artist, but you also accept foreign currencies online.
While some like Paypal do not charge you to integrate their payment gateway services into your business, a lot of payment gateways charge setup fees that can range in the hundreds. eGHL, for instance, costs close to RM500 to setup. Payment gateways like iPay88 and Razer Merchant also offer setup plans at different or similar prices but with different transaction fees too, as in the case of iPay88.
The setup fees that you paid to your Malaysia online payment gateway will be used to cover operating expenses, software maintenance and keeping technology up to date so no errors can occur in the system. Some online gateway payment also offers fraud and risk prevention, as well as management assistance, all which you have to pay extra if you want to include them.
POS involves face-to-face transactions while the transactions of a payment gateway service can be conducted both offline and online, depending on what you integrate with your business. Furthermore, in online payment gateways, you don’t always need a credit card as you can just use your phone to pay through other means too, such as online banking.
As long as you can afford them, it is possible. With more than one or two payment gateways, your business can support various other payment channels for customers to pay if they lack certain alternatives, such as insufficient physical change. This measure is also suitable when you are expanding your business.
A payment gateway’s job is to communicate the process of approval or denial of transactions between your business and your customers, while the payment processor works out the transaction behind the scenes by setting rails to different parties. In this payment gateway Malaysia list, all of the listed companies here are essentially the middleman of active transactions that can either fulfill a customer’s needs or push back the money because something is amiss in the transaction.
Convenience is the main benefit of payment gateways as there are a lot of channels and payment methods to choose from, making purchases easier and faster to proceed. This is especially useful when you are keeping physical money for certain situations or emergencies.
A high risk payment gateway refers to one with an onboard merchant that is considered risky due to the questionable nature of its business. A crypto or adult entertainment company is an example because they can be exposed to third parties more often. When you are talking about high risk merchants, you are referring to the potential loss of funds, money laundering, data theft and other negative connotations of online businesses. Because of this, these companies have to pay a higher processing fee.
If that merchant has little to no frequent cancellations, chargeback ratio, possesses a strong credit score and deals with low risk businesses, it is thus a low risk merchant. The former faces the exact opposite and must also deal with a lot more fraudulent customers.
If there is one payment method to be careful of, it would be your debit card. Although, like your credit card, you do not have to pay with physical cash, your debit card is directly tied to your respective bank account. If your card is stolen or its numbers or your account’s information are ever leaked, chances are that you may receive messages of unauthorized transactions draining your savings in the bank. Be careful if you are paying with your debit card, and tighten the security of your bank and other online accounts. Never reveal your debit card and bank account information to anyone and anywhere online.
A white label payment gateway is the type that can be customized based on the client’s preferences. As they use their own name and brand, your business can receive payments from third-party services with said customizations.
You could try to do it if you want too, but it can be expensive to develop your own payment gateway. Besides having to set up the processes for debit and credit card transactions, you also have to deal with international currencies and transactions, as well as complying with regulations. If these exhaust you, best if you leave the plan be.
You might sometimes confuse Paypal with one or the other as it operates similarly with both. Paypal’s merchant accounts, like yours, will behave like a processor as it can safely accept and redeem payments to your bank account. Meanwhile, Paypal has its own gateway service called PayFlow.
Say you are going to set one up in your business but you are skeptical of it, perhaps because you never heard of it before and you had no choice but to implement it anyway. When you are checking it out, ensure that the system has PCI DDS Level 1, data encryption, 3D Secure, sensitive data protection, fraud prevention measures and quick support if fraud happens. If the payment gateway is missing one of these, be careful. If two, then this is already a red flag to steer away from.
Payment gateways became common because it simply makes life easier for your business and customers. Everything is automated and takes only a few steps to process and complete the transaction. Even at the risk of fraud and security, payment gateways ensure that they have measures to combat against them. We won’t likely see them disappear anytime for now, as it is growing and thanks to the pandemic and the necessity of maintaining safe distances, it is likely that the importance of digital transactions are more realized. Businesses also see the potential of smoothing out their transactional flows to save time and manage their finances better.