A payment gateway is not a commodity. The best choice in Bangladesh is not the best choice in Germany, and a gateway that works for cards may be useless for the wallets your customers actually use. The wrong integration shows up as failed checkouts, delayed settlements and refunds that take a week.
This guide is a framework, not a recommendation of one provider. Confirm availability, fees and contract terms with each gateway in your market.
| Method | Customer appeal | Operational cost | Watch out for |
|---|---|---|---|
| Cards | Universal | 1.5–3.5% + fixed fee | Chargebacks, 3DS friction |
| Local wallets | High in mobile-first markets | Varies; often 1–3% | Provider outages, reconciliation |
| Bank transfer / UPI | Low cost, high trust | Low or zero | Manual matching, delayed confirmation |
| Cash on delivery | Essential for unbanked customers | Float, fraud, reconciliation | Rider cash handling |
| Buy now, pay later | Higher basket | Merchant fee | Credit risk, refund complexity |
Start with the customer, not the gateway
List the payment methods your customers actually use. In many markets, that means a local wallet or bank transfer, not a credit card. If the gateway does not support the top method, it is not a candidate, no matter how good the dashboard is.
Fees and settlement
Compare the all-in cost: percentage fee, fixed fee, currency conversion, refund fee, chargeback fee and settlement timing. A gateway with a lower headline rate but a seven-day settlement can strain cash flow more than a slightly higher rate with next-day settlement.
Ask when funds settle, whether weekends count, and how refunds are deducted. If the gateway holds a rolling reserve, budget for it.
Refunds and chargebacks
Food delivery has a high refund rate compared with many ecommerce categories: missing items, late orders, wrong address. The gateway should support partial refunds, reason codes and a clear dispute timeline. If refunds are manual, finance will spend hours on them.
Integration checklist
- Does the gateway support the methods customers use?
- Is there a hosted checkout or a native SDK for the apps?
- Can it handle partial refunds and repeated attempts?
- Does it support saved cards/wallets for repeat orders?
- What is the settlement cycle and reserve policy?
- Are webhooks reliable and documented?
- What happens during an outage? Is there a fallback?
Cash on delivery is a payment method too
COD has no gateway fee but carries float, reconciliation and fraud risk. If you offer it, you need a cash control process: rider float, per-order confirmation, shift handover, daily deposit and variance review. A gateway integration does not solve cash.
Test before launch
Run a live small-value transaction for every method. Test a refund, a failed payment, a duplicate attempt and a chargeback. Check the customer sees a clear error and the order is not created twice. Test on a slow connection and a mid-range Android phone.
Keep a fallback
If one gateway goes down, can customers pay another way? A second gateway or a COD option can keep orders flowing during an outage. The cost of a backup integration is usually less than a dinner peak with no checkout.
See the COD reconciliation guide, the food delivery software, or the $299 licence.
Gateway mistakes
- Choosing a gateway that does not support the local wallet customers use.
- Ignoring settlement timing and rolling reserves.
- Launching without a fallback for an outage.
Run a live small-value transaction and a refund on every method before launch. A gateway that works in the dashboard but fails on a slow phone is not integrated.