For any e-commerce business, it’s important to find an affordable, secure payment gateway that integrates with your site. However, there are so many options available. Fortunately, finding the right gateway is easier when you know what to look for.
In this post, we’ll take a closer look at payment gateways and discuss some key factors to consider. Then, we’ll explore five of the best payment gateways for e-commerce businesses. Let’s get started!
An Introduction to Payment Gateways
Payment gateways are required on any site that enables online transactions. Once it’s in place, a gateway lets your store process and authorize payments using a third-party processor.
On the customer side, the transaction goes ahead as normal. The shopper enters their card details, and the payment is either approved or declined. The customer doesn’t see that the payment gateway sends a request to their bank or credit card company where the details are verified.
If successful, the funds are moved into the merchant’s account. Depending on the payment gateway, however, this process can take anywhere from a couple of seconds to weeks. For example, some companies hold the payment in case of fraudulent claims or chargebacks.
What to Look For in Payment Gateways for E-Commerce Business
Here are some of the most important factors to consider when choosing a payment gateway for your e-commerce business:
- Fees. Gateways have different processing fees. Usually, the fee is a percentage of the transaction. They also vary depending on the country and the currency.
- Payout time. Make sure to check how long it takes for the gateway to process payments. This can vary from seconds to weeks.
- Ease of use. Typically, top payment gateways are accessible and convenient for you and your customers. This is especially important since a complicated checkout process is one of the most popular reasons for cart abandonment.
- Methods and currencies. If you have an international audience, make sure that your preferred payment gateway supports multiple currencies. Additionally, verify that the gateway accepts all popular payment methods.
- Security. GDPR compliance and PCI compliance are essential. These protocols show customers that your business thoroughly secures and protects credit card data. Otherwise, it’s unlikely that customers will trust your site with their payment details.
By considering these factors, you’ll be better positioned to choose a payment gateway that suits your business needs.
5 Best Payment Gateways for E-Commerce Business
Now that you know what to look for in a payment gateway, here are five of the best options for your e-commerce business!
PayPal is one of the most widely used and well-known payment gateways. Therefore, it helps you gain credibility with customers and build trust at the checkout page.
Moreover, there are many ways to implement PayPal in your business. For instance, you can accept payments in person, online, and by phone. Plus, the gateway accommodates more payment types, including installments, giving customers plenty of choices.
As you might expect, PayPal supports all major credit and debit cards, contactless, Apple Pay, QR codes, and app payments. Meanwhile, you can rest assured that payments are safe and secure thanks to PayPal’s advanced fraud detection and seller protection. These features minimize claims and chargebacks.
While PayPal is great for large enterprises, it’s also ideal for small companies since it supports the growth of your business. PayPal is kitted out to scale your business, enabling you to expand into more than 50 countries and access financing solutions like PayPal Working Capital.
PayPal’s pricing differs depending on the payment method used. You can read more about PayPal’s payment processing fees here. For a U.S. company trading in dollars, you can expect to pay 2.9% per transaction.
Stripe is a feature-rich platform that enables you to completely customize the payment process. Rather than an out-the-box solution, Stripe provides access to a suite of tools.
Better yet, Stripe integrates seamlessly with your site thanks to its powerful and easy-to-use APIs. You can also access pre-built integrations for e-commerce platforms like Shopify and WooCommerce.
One of the best things about Stripe is that it’s constantly evolving. Hundreds of new features, such as digital wallets, financial reporting, and a hosted payment page, are released each year. Meanwhile, it’s totally flexible, supporting mobile payments, subscription billing, and one-click checkout.
Stripe is an excellent option for European businesses since processing fees are only 1.4% + a small transaction fee. For non-EU card payments, fees rise to 2.9%.
With numerous plans, Authorize.net is a great option for businesses of all sizes. You can accept payments in-person or online. Plus, you can process payments from anywhere in the world. However, it’s important to note that your business must be registered in the UK, U.S., Canada, Europe, or Australia.
Authorize.net supports all credit and debit cards, eChecks, and digital payments like Apple Pay and PayPal. Better yet, it integrates seamlessly with many platforms, including WordPress. Plus, you can easily add a buy now button to your checkout page.
Security is a priority for Authorize.net. It guarantees secure customer data storage and carries out advanced fraud detection.
Moreover, it’s easy to find a solution that suits your needs, thanks to its flexible pricing structure. For example, you can get started with a merchant account and opt for the Payment Gateway Only option. Alternatively, you might prefer the All-in-One option, which sets you up with your own merchant account. There is also custom pricing for larger enterprises.
Authorize.net charges a monthly fee of $25 + a 2.9% transaction fee.
While 2Checkout is excellent for one-off purchases, it can also charge subscription fees. This feature makes it a great choice for companies that sell digital products and services on a recurring basis.
2Checkout is a modern solution that’s designed with scalability in mind. For instance, you can add or subtract features, including digital commerce, subscription billing, global payments, and resell partners. Meanwhile, you can take advantage of tons of add-ons, such as 2Partner (an affiliate platform and network with 50,000 affiliates).
Additionally, 2Checkout supports multi-currency payouts and multi-language support, making it suitable for international businesses.
What’s great about 2Checkout is that it prioritizes a seamless customer checkout experience. Plus, you’ll get a choice of 120+ online shopping carts to integrate with your store.
2Checkout’s most popular plan is 2Subscribe, which charges 4.5% + $0.45 per transaction.
Ayden is a trusted payment gateway used by eBay, Uber, and Spotify. It lets you accept every type of payment from one streamlined platform. It even connects your in-store and online payment data.
One of the stand-out features of Ayden is that it’s great for gaining data insights and controlling your finances. It enables you to optimize your payments and improve automation. This way, you can provide an efficient payment system for customers and your business.
With Ayden, you’re also covered when it comes to security. It provides tons of tools to help you manage risk and keep track of your results. Better yet, Ayden caters to all kinds of customers, supporting 250+ payment methods and 150 global currencies.
Ayden charges a fixed processing fee plus a fee determined by the payment method. For example, you might be charged a processing fee of $0.10 + 3.95% for an American Express card.
A payment gateway enables you to accept and authorize online transactions in your e-commerce store. Furthermore, the best payment gateways for e-commerce support multiple currencies, allow easy subscription billing, and offer advanced fraud protection.
Do you have any questions about choosing a payment gateway for your e-commerce business? Let us know in the comments section below!
Image credit: Unsplash.
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