Hey there! Choosing the right payment gateway for your ecommerce store can be tricky. There are so many options out there - it's easy to feel overwhelmed!
But don't worry. In this post, I'll walk you through the 7 most important things to look for when picking a payment gateway. Follow this advice and you'll be able to confidently choose the perfect payment solution for your online business!
1. Know Your Options
There are a ton of payment gateways to choose from these days. Here are some of the most popular ones used by ecommerce stores:
Stripe: A popular payment processor that lets you accept credit cards and debit cards online.
PayPal: Enables payments through PayPal accounts. One of the most widely-used online payment systems.
2Checkout: Accepts payments from Visa, Mastercard, Discover, American Express, and PayPal. Charges a transaction fee.
Authorize: A payment gateway that integrates with Salesforce Billing and Quickbooks. Focuses on recurring billing.
Braintree: Owned by PayPal. Lets you accept PayPal, Venmo, credit cards, and Apple Pay.
Square: Allows mobile payments both online and offline. Integrates with WooCommerce and Shopify.
This is just a sampling - there are many more payment gateways to explore! The key is to understand the options so you can choose the right fit.
2. Consider Your Business Model
Here are some things to think about regarding your business when choosing a payment gateway:
Type of products - Do you sell physical or digital products? Certain gateways like Stripe work better for digital goods.
Customer location - If you sell globally, ensure your gateway accepts payments from worldwide customers.
Transaction volume - If you process a high volume of sales, look for a gateway with no limits.
Average order value - Gateways like PayPal are good for businesses with lower order values.
Recurring billing - For subscription businesses, choose a gateway that supports recurring payments like Authorize.net.
Pick a payment gateway that aligns with your core business and how you make money online.
3. Look at Your Technical Set-Up
It's important to consider the technical side of things too:
Platform - Make sure the gateway integrates with your ecommerce platform like Shopify or WooCommerce.
Coding required - Some gateways require developer skills to set up - while others are plug-and-play.
Hardware - Do you need card readers or other hardware to accept payments in-person?
Mobile compatibility - Ensure the gateway works seamlessly on mobile devices if you sell through mobile apps.
Understand the technical abilities and limitations of each gateway. Choose one that will integrate smoothly with your existing ecommerce infrastructure.
4. Check Out the Features
Here are some key features to look for in a payment gateway:
Payment methods - Does the gateway accept the payment types your customers will use? (Credit cards, debit cards, PayPal, Apple Pay, etc.)
Fraud protection - This prevents fraudulent transactions and chargebacks.
Recurring billing - For subscription businesses, this is a must-have.
Shopping cart integration - It should integrate with your shopping cart or checkout page.
POS capabilities - For in-person retail, you may want POS integration.
Built-in reporting - This lets you easily track sales data and metrics.
Make sure the gateway has the right features for your business needs.
5. Compare Pricing Plans
Cost is a big factor when selecting a payment gateway. Here are some things to compare:
Transaction fees - This is usually a percentage of each transaction. It ranges from 2-3% typically.
Monthly fees - Some gateways charge a monthly fee in addition to transaction fees.
Payment method costs - Gateways often charge different rates for PayPal, Amex, etc.
Bandwidth usage fees - Fees based on how much data you use when processing transactions.
Setup costs - Some have one-time setup fees while others don't.
Crunch the numbers and projections. Choose affordable pricing that fits your budget.
6. Check Customer Support & Documentation
You'll inevitably need customer support sometimes. So check reviews and see what users say about the gateway's support options.
Also browse through their documentation - is it beginner-friendly? Do they have helpful guides and resources?
Good customer service and docs make your life much easier!
7. Read Online Reviews
Finally, scour online reviews from actual users before choosing a payment gateway.
See what the pros and cons are. Look out for potential issues like lagging support, hidden fees, integration problems and more.
Reviews reveal if a gateway will truly meet your business needs!
And there you have it - the 7 key factors to choosing the right payment gateway for your online business!
Follow this advice and take your time researching. Don't rush this important decision.
The perfect payment solution is out there - you just have to find it!
Let me know if you have any other questions. I'm always happy to help fellow ecommerce sellers like you!