Antom | Knowledge Source

Choosing a payment gateway in Australia: Essential questions to ask

Written by Antom | Oct 28, 2025 12:45:00 AM

Australia’s e-commerce market is growing steadily, projected to reach USD 39.36 billion in 2025 and USD 46.51 billion by 2030. At the same time, digital payments now account for 53% of all e-commerce transactions, driven by mobile wallets, bank transfers, and buy-now-pay-later (BNPL) options. For any business operating online, the choice of payment gateway in Australia is a financial and operational strategy that affects customer trust, conversion rates, and global expansion.

Australian payments for global merchants

Australia’s payment environment is regulated and sophisticated. Merchants processing online payments must comply with PCI DSS standards for data security, APRA oversight for financial institutions, and AFSL licensing if handling funds. The ATO also requires proper GST reporting on cross-border transactions. For global merchants, these add layers of responsibility—but also opportunity.

A reliable payment gateway in Australia should handle local compliance requirements while meeting international standards. That means built-in PCI DSS Level 1 compliance, encryption, and fraud prevention tools. It should also support local payment preferences such as EFTPOS, Afterpay, PayID, and NPP transfers, alongside global payment methods like Visa, Mastercard, and Alipay. This combination ensures both domestic coverage and global reach.

Top factors to consider when selecting a payment gateway in Australia

Security and compliance

Security is non-negotiable. Choose a provider that meets PCI DSS Level 1 certification, uses tokenisation to protect card data, and applies real-time fraud monitoring. Australian gateways must also support cross-border fraud screening, as international transactions are typically riskier. Ask whether the provider offers liability protection and dispute management for chargebacks.

Supported payment methods and currencies

Australian shoppers expect choice. Your payment gateway should support credit and debit cards, BNPL options, and digital wallets such as Apple Pay and Google Pay. Multi-currency acceptance is another must—look for gateways that process in AUD and other currencies, with dynamic currency conversion to simplify international sales and minimise FX costs.

Fees and pricing structure

Typical domestic transaction fees are around 1.75% + AUD 0.30, with an extra 1–2% for international payments. Some providers charge setup or monthly fees, while others add costs for chargebacks or refunds. The key is to understand the total cost of acceptance, including FX markups and reserves. For high-volume merchants, volume-based discounts can make a meaningful difference.

Integration and ease of use

Your payment gateway should integrate smoothly with your existing systems. Check for compatibility with Shopify, WooCommerce, and Magento, or flexibility via APIs and SDKs for custom platforms. Hosted checkout pages are typically faster to deploy and reduce PCI scope, while self-hosted options allow greater control over the user experience. The integration process should be supported by detailed developer documentation and sandbox testing environments.

International capabilities and scalability

For global merchants, a payment gateway in Australia should support cross-border settlements, multi-language interfaces, and next-day payouts to maintain cash flow. Features like recurring billing for subscription models and automatic retries on failed payments can enhance revenue reliability. Scalable architecture and proven uptime are crucial for periods of peak demand.

Customer support and reporting tools

Round-the-clock support matters when payments underpin your revenue. Seek providers offering 24/7 assistance via chat, phone, or email, ideally with teams operating in Australian time zones. Reporting should be comprehensive, enabling you to track settlements, reconcile payments, and generate GST-compliant statements. Detailed dashboards help identify payment trends and improve operational control.

The key questions to ask before you choose

  1. What is the true total cost of acceptance? Understand every layer: interchange, scheme fees, gateway markups, FX conversion, chargebacks, and reserves. For smaller merchants, flat-rate pricing may be simpler, while enterprises benefit from interchange++ transparency.

  2. What about pricing? Ask about setup fees, monthly minimums, or refund charges, to support accurate forecasting.

  3. How quickly do settlements occur, and in what currency? Settlement times vary between T+1 to weekly. Faster settlement means healthier cash flow. If your business serves international markets, check if funds can be settled in AUD or held in local currencies.

  4. What payment methods are supported? Ensure both local and global coverage—credit/debit cards, BNPL, e-wallets, and bank transfers. For Australia, methods like PayID and NPP are growing rapidly.

  5. Is your gateway PCI DSS compliant and secure? Confirm the provider’s security certifications and fraud prevention features. Ask how they manage liability for unauthorised transactions.

  6. How well does the gateway integrate with your systems? Verify API documentation, SDK availability, and whether test environments are available. The easier the integration, the lower your operational risk.

  7. What’s the provider’s uptime, support, and reliability record? Look for 99.9%+ uptime and local data hosting. Reliable technical support can prevent downtime from turning into lost revenue.

  8. What are your compliance and regulatory safeguards in Australia? Check adherence to Australian Consumer Law, GST reporting, and data localisation standards. Providers familiar with APRA expectations will simplify compliance for you.

Comparing gateway providers wisely

When comparing gateway providers, look beyond brand recognition. Focus on capabilities, reliability, and transparency. A structured decision matrix helps prioritise what matters most for your business size:

Merchant type

Priority

Example focus

Small business

Cost-efficiency

Low transaction fees, quick setup

Mid-sized merchant

Balance of price and features

API flexibility, local methods

Enterprise

Scalability and control

Multi-currency, reporting, uptime

 

For instance, a local retailer may value BNPL and EFTPOS integration, while a global e-commerce platform may prioritise multi-currency settlement and API reliability.

Conclusion

Selecting the right payment gateway in Australia requires more than comparing transaction rates. It demands a close look at compliance, flexibility, and customer experience. As digital payments grow and the market nears USD 1.4 billion by 2033, the best gateways will be those that combine transparency, speed, and security across borders.

By asking the right questions and comparing gateway providers carefully, your business can process payments more securely, operate efficiently, and build trust with every transaction.