"Eftpos" usually conjures up an image of a terminal on a counter. But if you sell anything online — through Shopify, WooCommerce, BigCommerce, Squarespace, or a custom site — the same job (taking a card payment, getting funds in your bank account) happens through a different bit of plumbing called a payment gateway.
If you're running an e-commerce store in Australia, the rates and features you choose on the gateway side affect your margin just as much as in-store eftpos rates do for a brick-and-mortar shop. Often more, because cards-not-present rates are usually higher. Here's a clear-headed guide to how online payment gateways actually work and how to pick one.
What Is a Payment Gateway, Plainly?
A payment gateway is the bit of software that sits between your e-commerce checkout and the card networks. When a customer hits "pay" on your site, the gateway:
- Captures the card details securely
- Sends them to the acquiring bank to authorise the transaction
- Returns "approved" or "declined" to your store
- Settles the funds into your business account a day or two later
It's the online equivalent of an eftpos terminal — minus the physical device. Some gateways are tightly bundled with a merchant account (Stripe and Square work this way). Others are pure gateways that need to be connected to a separate merchant facility (eWay, NAB Transact, Westpac PayWay).
The Two Models: Bundled vs Unbundled
Bundled (gateway + merchant account in one)
You sign up, paste a snippet of code into your store, and you're live in 24 hours. The provider handles everything — gateway, card processing, fraud checks, payouts.
Pros: fast setup, simple billing, modern dashboards, often the only option that works out-of-the-box with platforms like Shopify Payments.
Cons: rates are usually flat-rate (e.g. one per-transaction percentage for everything), which is convenient but rarely the cheapest at scale. International or premium card surcharges can be steep. Limited room to negotiate.
Unbundled (separate gateway + merchant facility)
You set up a merchant facility with a bank or specialist acquirer, and a separate gateway product (eWay, Pin Payments, NAB Transact, Adyen, etc.) connects your checkout to it.
Pros: rates are negotiable, especially as your volume grows. Often cheaper at scale. More control over which networks you accept and at what rate.
Cons: setup is more involved. Two suppliers, two contracts, more moving parts to monitor. Probably overkill if you're doing under $10k–$15k a month online.
Card-Not-Present Costs More Than In-Store
The first thing to understand: online card transactions are inherently more expensive than in-person ones. The card schemes charge higher interchange because the risk of fraud is higher, so your rate online will be higher than the rate you'd get on the same card tapped in a shop. Typical patterns we see:
- Domestic Visa/Mastercard online — meaningfully higher than in-store
- International cards — often a hefty premium on top, plus possible cross-border or currency conversion fees
- Premium and corporate cards — another tier of premium
- Buy-now-pay-later (Afterpay, Zip, Klarna) — typically the highest cost of acceptance, but often with conversion lift that justifies it for some retailers
If your store sells to international customers or attracts a corporate buyer base, your blended online rate will sit higher than a domestic-only retailer. Worth knowing before you compare quotes.
Fraud, Chargebacks and 3D Secure
The flip side of online payments is fraud risk. Unlike in-store, where the card is physically present, online merchants are usually liable for fraudulent transactions if a chargeback comes through. The gateway's job is partly to reduce that exposure.
Things to look for:
- 3D Secure 2 (3DS2) — modern authentication that often shifts liability for fraud back to the issuing bank. Worth turning on, even if it adds a small friction step.
- Address Verification (AVS) — basic but still useful for catching obvious fraud.
- Risk scoring — most modern gateways score each transaction and let you set rules (decline, review, accept).
- Chargeback management — a good gateway gives you the tools to dispute chargebacks. The cheaper ones don't.
A 1% chargeback rate sounds small until you realise you're paying for the goods you shipped, the refund, and a $25–$50 chargeback fee per case.
What About Your Existing In-Store Setup?
If you already have an in-store eftpos provider and you're adding online, ask them what their gateway product looks like. Most major Australian providers now offer an online product alongside in-store — sometimes at a unified rate, sometimes not. Often the most efficient setup is a single provider doing both, with a single statement and unified reporting.
Have a look at our retail eftpos guide for how to think about combined in-store and online setups.
Settlement and Cash Flow
Online payments traditionally settled T+2 or T+3. Most modern Australian gateways now offer next-day or even same-day settlement, sometimes for a small fee. For e-commerce stores running thin margins on inventory, faster settlement makes a real difference to working capital.
Our same-day settlement guide covers what to ask for.
Don't Miss the Rewards Angle
Online stores doing $30k+/month in card volume are exactly the businesses that benefit from rewards-based payment setups. Some providers offer Qantas Business Rewards points or cashback on online card volume just like in-store. Not every gateway does — but it's a question worth asking before you sign.
See our Qantas Points from eftpos guide for more.
Common Mistakes Australian E-commerce Stores Make
- Sticking with the platform default forever. Shopify Payments, Square, Stripe and the like are excellent for getting started. They are rarely the cheapest option once you're doing $20k+/month.
- Ignoring international card surcharges. If 20% of sales come from overseas customers and you're on a flat rate that doesn't differentiate, you're paying more than you need to.
- Not turning on 3DS2. Saving 30 seconds at checkout isn't worth eating chargebacks at scale.
- Bundling in-store and online with two different providers. You end up with two reports, two reconciliations, and probably worse rates on both.
- Never reviewing. Online card costs change. Volume tiers reset. New providers enter the market. A 12-month review cycle pays for itself many times over.
Our Honest Take for E-commerce Owners
The right gateway depends on your volume, your platform, your customer mix, and whether you also need in-store. If you're under $10k/month, the bundled options are fine and you've got more important things to optimise. Once you're past that threshold, it's worth looking at unbundled options or negotiating with your current provider on volume-based rates.
At Eftpos Brokers, we work with online and omnichannel providers across the Australian market. We'll look at your current setup, your volume, your platform and your customer mix, and tell you whether a switch saves you real money. Free, no obligation.
Want Us to Look at Your Online Rates?
If you've never had your e-commerce processing rates independently reviewed, you're almost certainly leaving money on the table. Twenty minutes of our time can show you how much.
Book your free consultation here or call us free on 1800 595 340.