Are you an eCommerce store owner in the process of growing your business but feeling stuck trying to figure out the best payment gateway? Don’t worry, we’ve got you covered.
Choosing a payment gateway is one of the most important decisions you’ll make as an eCommerce store owner. It’s what allows your customers to actually pay you for your products. Get it right and you’re well on your way to building a successful business. Get it wrong and you could face high fees, security issues, or a clunky checkout experience that drives customers away.
In this article, we will go through the top 8 payment gateways ideal for eCommerce businesses along with their features. By the end of this post, you will be well-equipped to choose the payment gateway that best suits your requirements. Let’s dive in!
What is a Payment Gateway?
A payment gateway is a service that processes credit card payments for an online store. It’s the digital equivalent of a physical card reader you’d use in a brick-and-mortar shop.
As an eCommerce business owner, choosing a payment gateway is one of the most important decisions you’ll make. The right gateway for your needs will make the checkout experience seamless for your customers and ensure you get paid quickly and securely.
Popular options like PayPal, Stripe, and Authorize.Net offer competitive rates and a choice of easy-to-integrate plans for businesses of all sizes. Most also provide fraud prevention tools, chargeback protection, and streamlined settlement of funds to your bank account.
For low-volume stores, a basic plan should suit your needs and typically charges a small percentage for each successful transaction plus a nominal monthly fee. High-volume stores can often negotiate better rates. And whichever provider you choose, make sure they use the latest security protocols like SSL encryption and fraud screening.
Your payment gateway is the conduit between your customer’s wallet and your bank account. Pick wisely, and your business, and your customers, will reap the benefits.
Benefits of Implementing a Payment Gateway in your eCommerce Store
A payment gateway allows your customers to pay you electronically using their preferred payment method. By integrating one into your online store, you open yourself up to more potential customers and sales.
You’ll have access to a wider range of payment options. Whether your customers prefer to pay with credit cards like Visa and Mastercard, eWallets such as PayPal or Apple Pay, or even cryptocurrency, a payment gateway can support them all in a secure fashion.
It also means faster, more convenient checkout. No one enjoys having to fill out lengthy forms or wait days for payments to process. With a payment gateway, transactions are approved in seconds.
Customers can pay directly on your site without being redirected elsewhere. This results in fewer abandoned carts and a better overall shopping experience for your customers.
Perhaps best of all, payment gateways take on the responsibility and liability of processing sensitive customer information and payments. They are compliant with strict industry regulations, so you can rest assured all transactions are handled properly and securely.
By implementing a trusted payment gateway, you gain access to a world of benefits that will boost your eCommerce business. Offer your customers an easy, secure way to pay and watch as your sales start to climb.
PayPal: The Most Popular Payment Gateway
PayPal is the most popular payment gateway, used by over 20 million merchants worldwide. As an eCommerce store owner, PayPal should definitely be one of your top considerations for processing payments. Here are a few of the main benefits of using PayPal:
- PayPal is a name shoppers know and trust. Offering PayPal as a payment method can increase conversion rates by up to 28% because customers feel more secure paying with a familiar brand. (A survey by PayPal)
- Integrating PayPal into your online store only takes a few minutes. You just need to sign up for a PayPal Business account and follow the prompts to connect it to your store.
- PayPal supports one-touch payments on mobile devices, so customers can checkout faster. This provides a better mobile experience for your customers.
- PayPal thoroughly vets new merchants and monitors transactions to detect fraud. This gives you more protection from chargebacks and fraudulent activity.
- PayPal offers a variety of pricing plans for businesses of all sizes. The fee per transaction is around 2.9% + $0.30 and can be lowered depending on your sales and revenue.
In summary, with its universal recognition, focus on security, and competitive pricing, PayPal deserves to be at the top of your list of payment gateways to consider for your eCommerce business.
Stripe: A Developer-Friendly Gateway
Stripe is a popular payment gateway for developers. It has APIs and tools that make it easy to build payment functionality into your website or app. Here are a few of the main benefits of using Stripe:
- Stripe supports over 135+ currencies and a variety of payment methods including cards, Apple Pay, and Google Pay.
- Their well-documented APIs are powerful yet simple to implement, with client libraries in several languages.
- Stripe, which offers an all-encompassing dashboard, is a great choice if you want complete control over the checkout experience and payment flow in your app. Their customizable UI components let you build a seamless experience for your customers.
- Credit and debit card transaction fees are a fixed 2.9% + $0.3 per transaction, which can be reduced to 2.2% + $0.3 for businesses processing more than $80,000 monthly sales.
- Stripe Radar fraud detection helps prevent fraudulent transactions and chargebacks.
All in all, Stripe is a very capable payment gateway for developers and tech-savvy merchants. For those less technically inclined, the learning curve may be a bit steep, but Stripe’s documentation is excellent.
Braintree: Owned by PayPal but More Customizable
Braintree, now owned by PayPal, is a popular payment gateway known for its customizable features. As an eCommerce business owner, you’ll appreciate Braintree’s ability to accept a number of payment modes along with traditional credit and debit cards. Here are a few of the main benefits of using Braintree:
- Beyond accepting multiple payment types, Braintree lets you control the entire checkout experience with branded checkout pages, etc.
- It is compatible with a wide range of well-liked shopping carts and online marketplaces, including Shopify and WooCommerce. You will also receive a variety of features, such as real-time fraud protection.
- In addition to using strong encryption to safeguard your customer’s data throughout the payment process, Braintree also assists in maintaining your PCI compliance.
- They even offer secure tokenization solutions to their merchants to shield the customer payment information from unauthorized access.
- Their feature-rich developer tools and API provide you with complete creative freedom to create subscription experiences that are unique to your company.
- 2.9% + $0.30 is the flat fee that Braintree charges for each transaction. Here, there are no tiers of pricing or high monthly costs.
- Braintree supports over 130+ currencies and provides a multitude of payment options such as Visa, MasterCard, Apple Pay, Google Pay, and much more.
While Braintree does charge credit card processing fees and transaction fees like other payment gateways, their rates are very competitive. Braintree is ideal if you want more customization and control over your eCommerce checkout without high fees. You really can’t go wrong with a PayPal-backed payment gateway.
Authorize.Net: For High-Risk Merchants
Authorize.Net is one of the oldest and most trusted payment gateways, making it a great option if your business is considered “high-risk.” Authorize.Net has been around since 1996 and processes over $200 billion in transactions annually. They have a proven track record of securely handling payments for businesses in industries like travel, gaming, and more. Here are a few of the main benefits of using Authorize.net:
- If chargebacks or fraud are concerns for your business, Authorize.Net offers advanced tools to help minimize risk. They provide Address Verification Services (AVS) to verify customers’ billing addresses, as well as card verification values (CVV) to authenticate debit and credit cards.
- Authorize.Net also has 24/7 customer support and fraud detection monitoring.
- Their all-in-one platform lets you accept credit cards, eChecks, Apple Pay, and PayPal. You can even use their eCheck.Net solution to convert paper checks into electronic payments.
- If you go ahead with the all-in-one service, they charge 2.9% + $0.3 along with a $25 monthly payment gateway fee. If you choose to only opt for the payment gateway, you pay $0.1 per transaction and a $0.1 daily batch fee along with the $25 monthly gateway fee.
With solid security, experience, and support, Authorize.Net is a premier choice for high-risk eCommerce businesses. Even though their rates might be a little heftier than other services, they provide that level of service to high-risk businesses.
2Checkout: Suitable for Selling Digital Goods
2Checkout is a popular payment gateway for businesses selling digital goods and services. It allows you to accept payments from customers around the world through credit cards, debit cards, and PayPal. Here are a few of the main benefits of using 2Checkout:
- Depending on your sales volume, 2Checkout’s fees range from 3.5% to 5.5% per transaction. They don’t levy any setup, monthly, or PCI compliance charges.
- All of the main e-commerce systems, including Shopify, WooCommerce, and Magento, are compatible with 2Checkout.
- 2Checkout provides good security and provides a PCI Level 1 certification.
- 2Checkout offers live chat, email, and phone help around-the-clock. They have skilled, welcoming, and receptive staff.
- As a global payment gateway, they offer services in a variety of languages.
- 2Checkout provides its services in 200 countries and over 100 different currencies.
For digital and software companies, 2Checkout can be an easy way to start selling your products online without a lot of hassle or expense. The flat-rate pricing and ability to accept global payments make it attractive for casual sellers and small businesses. However, for high-volume stores, the percentage-based fees may end up costing you more than other payment gateways with volume discounts.
Square: A Solution for Small Businesses
Square offers a simple payment processing solution for small businesses. As an eCommerce business owner, you’ll appreciate Square’s easy setup and flat transaction fees.
To get started, simply sign up for a free Square account on their website. You’ll receive a free credit card reader that plugs into the headphone jack of your phone or tablet. Alternatively, you can opt for the contactless and chip reader. Square’s software and hardware are compatible with both iOS and Android devices. Here are a few of the main benefits of using Square:
- All in-person transactions that are swiped, dipped, or tapped are subject to a flat fee of 2.6% + $0.10.
- The fee for transactions done on eCommerce websites is $2.9 + $0.30.
- The basic plan has no ongoing monthly fees, no binding commitments, and cash is sent into your account within the next 1-2 business days.
- An easy-to-use dashboard for keeping track of purchases. and other functionality.
- You can collect payments, keep track of sales and inventory, create customer profiles, provide discounts, and issue digital receipts with the free Square Point of Sale app.
For a simple, affordable option to accept credit card payments, Square is a great choice for small eCommerce businesses. The flat-rate pricing and ease of getting started can help you focus on growing your business rather than managing payment processing.
Skrill: Low-Cost Payment Gateway for International Merchants
Skrill is a popular service used by merchants and customers in over 131 countries. As an eCommerce merchant, Skrill can be an affordable payment gateway option if you have an international customer base. Here are a few of the main benefits of using Skrill:
- Skrill charges a flat fee of 2.99% for credit/debit card processing and bank wire transfers. They do not charge any monthly, setup or cancellation fees.
- For purchases that must be completed while on the go, you may submit payments directly from their website or mobile application.
- By setting up profiles for the businesses to which you frequently transfer money, you may save time by rapidly choosing the same recipient each time you do a transaction.
- Skrill is a fantastic option for sending money internationally because of its reasonable costs and excellent currency rates.
- It provides a quick and safe method to send money to anybody in more than 131 nations and 40 different currencies.
- All significant platforms, including WooCommerce, Shopify, Magneto, and others, are integrated with Skrill.
While Skrill does not have as extensive of a merchant service feature set as some other gateways, their low-cost structure and global reach make them an attractive option, especially if you’re just getting started selling internationally. For a simple, affordable payment gateway to tap into worldwide markets, Skrill deserves strong consideration.
Dwolla: A Low-Cost ACH Payment Gateway Alternative
Dwolla is a popular low-cost payment gateway alternative for eCommerce stores. It allows merchants to accept payments through the Automated Clearing House (ACH) network.
ACH payments are bank-to-bank transfers that take 2-3 business days to process. While slower than credit cards, ACH has lower processing fees – often under $1 per transaction. For small ticket items, the savings can add up quickly. Here are a few of the main benefits of using Dwolla:
- Dwolla is ideal if you sell lower-cost goods or services, have repeat customers, or want to pass on savings to your customers.
- The National Automated Clearing House (ACH) Network may be accessed through Dwolla, allowing money to be sent straight from the customer’s bank account to your own. Any transaction above $10 will cost you $0.25, with a transaction charge cap of $5.
- It’s easy for your business to accept payments from customers thanks to Dwolla’s compatibility with multiple coding languages. Dwolla can be integrated into practically any web store or application.
- If security is a primary concern for your business, you can rest easy knowing that Dwolla uses the most up-to-date security techniques and policies to safeguard critical information and thwart fraud.
If low processing fees and an alternative to credit cards sound appealing, Dwolla is worth considering for your eCommerce payment gateway needs. By passing on a portion of the savings to your customers in the form of lower prices, you can gain a competitive advantage.
Conclusion
Well, there you have it! With so many payment gateway options out there, you now have a great starting point to find what works best for your business and your customers. The most important things are ease of use, security, and affordability.
Focus on providing the best customer experience and seamless checkout. Keep an eye on trends so you can stay ahead of the curve. And feel free to try different gateways – you can always switch if one doesn’t meet your needs.
Running an online business is challenging enough without the worry of processing payments. Choose a gateway that can automate and handle most of the process for you, leaving you with enough time to boost your sales and grow your business.
We hope this post has given you an insight into the top payment gateways for eCommerce businesses!
