Common payment portals include Paypal and Google Wallet, which are hosted payment gateways, and non-hosted gateways such as Authorize.net. Some businesses use ACH processing software such as ACH Direct, which integrates with existing e-commerce websites and point-of-sale hardware. ACH systems process and verify credit card and e-check payment transactions.
Hosted payment gateways such as Paypal direct consumers to another website to complete a payment transaction. To use this type of payment portal, businesses must create a verified account with the payment processor, set up payment buttons and place the button code on website pages. When the customer clicks the payment button it activates the redirect code. Customers who have an account with the processor can log in and complete the transaction, and customers without an account can enter credit card details. Typically, hosted payment processors automatically send customers back to the merchant website once the transaction is complete.
Non-hosted payment processors integrate with the merchant's existing payment system and customers complete transactions at the point of sale. Authorize.net functions similarly to ACH payment software systems. Merchants can use its payment tools on websites for e-commerce products, set up a virtual terminal for phone or mail order customers or process transactions on mobile devices. ACH systems are ideal for processing e-checks that debit money directly from customer bank accounts. ACH systems offer additional security by authenticating a customer's identity.