Is a Payment Gateway Required To Process Credit Card Transactions With Recurly?

Yes - Recurly is a versatile subscription management platform but in order to process credit card transactions you need to connect a payment gateway to your Recurly site.

When a customer subscribes to your service, the transaction request is sent from Recurly through your payment gateway to your merchant bank account. Once the transaction has been approved, the merchant bank account ultimately settles the transaction and transfers funds to your business bank account. If declined, a detailed error message is sent back through the system to Recurly.

Credit card payments must be submitted through a payment gateway. Payment gateways typically serve specific geographies and currency types. While most merchants require only one payment gateway, companies operating in multiple geographies may require multiple gateways. Recurly gives you the option to connect multiple payment gateways if needed. The purpose of your merchant bank account is to serve as a ‘buffer’ in the event that transactions are contested via chargebacks. The merchant bank underwrites this risk by assessing fees to each merchant based on the characteristics of their business. They also handle the depositing of your funds to your bank account along with controlling your business DBA, which would be what appears on the client's bank statement when they make a purchase from you.

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