Difference of manual payment method and payment gateway
Types of payment methods you can set up in your store:
- Manual payment method
- Payment gateway
- Cash on delivery
In this article we'll be focusing on the difference of manual payment method and payment gateway.
Overview
Item | Manual payment method | Payment gateway |
|---|---|---|
Customer need to manual transfer | Yes | No need, customer only need to authorize payment ⭐ |
Customer need send / upload payment proof for merchant to verify payment | Yes | No need, payment gateway will auto verify ⭐ |
Merchant need manually update order to Paid | Yes | No need, system will auto update ⭐ |
Merchant need to bear transaction charge | No ⭐ | Yes, charged by payment gateway |
Merchant receive payment immediately | Yes, direct transfer to your account ⭐ | No, follow payment gateway settlement period |
How manual payment method works?
Examples:
- Bank transfer ( IBG / instant transfer )
- Wallet transfer ( scan QR code )
- Cash deposit ( ATM ) and etc.
By choosing these methods, customers won't be auto redirected to payment page upon checkout. Outside of order page, they'll need to self navigate to the chosen payment platform ( e.g. go to ATM or log in to their internet banking or wallet app account ), manually insert your account details and order amount to complete payment. They shall notify you with payment proof once the payment is done.
Transaction of manual payment method will not auto linked with orders, therefore you'll then need to self verify receipt and once confirmed, manually mark the order as paid. The amount paid using these methods is normally paid directly to you.
How payment gateway works?
Examples:
- Credit / debit card
- FPX online banking
- eWallet and etc.
A payment gateway is a service provider that facilitates transaction for payment made on your e-commerce website to your bank account. It allows you to accept credit / debit card or internet banking payments.
By choosing these payment methods, customers will be auto redirected to payment page upon checkout. The order amount will be auto applied too, customers just need to key in their account credentials ( e.g. card details or username and password of internet banking account ) and authorize charging.
Then, payment gateway will do their job to verify the payment with issuing bank. Once confirmed, orders will be auto marked as paid ( yes payment is linked with orders ). The amount paid will go to payment gateway first and settled with you on the settlement date decided by gateways.
Updated on: 12/07/2025
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