Are you looking for the best payment gateways to integrate with your eStore?
Go no further.
In this article, I am going to tell you about payment gateways. All of your queries would be clear.
Here is the outline of the article
- What is a Payment Gateway?
- Types of Payment Gateway
- Why you need a Payment Gateway?
- Characteristics of Quality Payment Gateway
- Best Payment Gateways
Let’s begin without delay.
What is the Payment Gateway?
An online payment gateway creates a secure bridge from bank account to the platform where a person needs to transfer money.
In technical terms, it is a software that authorises online transactions to happen via various payment modes.
Various Payment Modes:
- Net banking
- Credit card
- Debit card
Payment gateways create a secure environment so money could travel from the bank account of the customer to the seller.
Types of Payment Gateway
Three common types of Payment Gateways are:
- Payment Off-Site
- Payment On-Site
As the name suggests, redirect payment gateway redirects the customers to its page. Then the gateway handles all the transaction.
In a way, when the customer gets to pay for the product, the site redirects to the payment page that the payment gateway manage.
Payments via PayPal happen on the PayPal’s page.
This method saves the retailer from various conflicts and complications of transactions. This simple transaction methods is very useful for small business owners.
But it also takes the controls from the sellers. The disadvantage is that the consumer has to complete one more step to pay.
Most of the eCommerce sites used On-Site Checkout and let the PG manage the off-page.
The front end payment will occur on the store while the PG will be managing the back-end. Stripe is one of the best software for this type of payment method.
Similar to PayPal, you don’t have any control over the transactions. What customer experience during the checkout depends on the payment gateway.
The advantage is it handles the process and save the site owners from the complicated process of payments.
What Payment Gateway Amazon Use?
When the business is big, and the volume of sales is large, eCommerce sites do not use any third party Payment Gateway. Instead, they develop their Payment Gateway.
All the checkout, transactions and payment processing happens on the merchant’s system.
This is opposite of the other two.
It takes away the simplicity factor and provides you with a lot of control over the checkout experience of the customer.
More controls mean more responsibility. That’s why only big business goes with this type of Payment Gateway.
Why you Need a Payment Gateway?
Be it drop shipping or any kind of eCommerce store, it needs a Payment Gateway to do the monetary transaction.
Payment Gateway provides the tools that allow the payments to happen on the eCommerce site.
Best Payment Gateways provides many methods to pay.
USA users generally use PayPal, while Payoneer is the most common payment gateway in Canada. Indians are enjoying UPI transactions.
It is smart to use more than one Payment Gateway. But you need at least one.
What to look in that one?
Features of Quality Payment Gateway
There are numbers of Payment Gateways in the market claiming to be the best Payment Gateway. All of them have their positive side.
Here are a few characteristics that you should be looking for when choosing a Payment Gateway for your eCommerce site.
It is better to avoid the PG that is difficult to integrate with the site. It is never a good idea to add complicated programs to the site.
Speed is a significant factor while deciding a payment gateway. You do not want to lose the customer due to the late processing of payment.
Also, look for how fast these payment processors are securing the payment in your account.
The best payment gateways works on every device. There is many devices out there: Mobile, Tablets, Pads, Mini-Laptops, etc. etc
Customer experience should not be changed when doing shopping from different devices.
Some Payment Gateways adds a secure layer for frauds detection.
When sales are in large number, it is important to notice any fraud happening on the site before the big loss.
You need to login into the payment gateway account many times.
A simple interface helps in studying the charge-backs, fees, and other financial statements. PG will become a problem if the interface is not user-friendly.
Reading the stats and data is vital to improve the business. You might need reports of all the transaction, charge backs, cart abandonment, and commissions.
Cost and Fee:
There are generally two types of fee of eCommerce payment gateways.
Base Fee is the monthly fee or the setup fee. The Transaction Fee is the one that is per order fee.
Few PG does not ask for a setup fee, but the charge back is high. Some ask for the high monthly fee, but keep the transaction fee low.
Choose according to your need.
Auto charge means charging the customers after a time. It is like an auto-renewal service on payment.
Not all the Payment gateways has this function.
Multiple Payment Methods
A quality payment gateway provides many methods of payment.
- Net banking
- Wallets etc
It is better to give many options to the customer, so he can choose whichever method he find more familiar.
Best Payment Gateways
I have made the list of few top payment gateways. All of them are popular and have quality features that a dropshipping or eCommerce store needs.
More than 200 countries accept the PayPal mode of method. It is the most popular way of receiving payment for eCommerce businesses.
PayPal offers two options: Payflow Link and Payflow Pro.
Payflow Link is free, but the checkout is hosted by the Paypal while PayPal pro offers total customisation of checkout page. It costs $25 a month.
PayPal supports all type of cards. With an additional fee, merchants can also buy other functions like Fraud Detection and buyer authentication.
Due to its simplicity to integrate with any site, and popularity, it is one of the best Payment gateways in the market.
Stripe is another major Payment gateway. It is mostly used in Canada, Australia and France.
While Stripe is available in only 26 countries, it supports more than 135 Currencies.
Stripe was founded in 2011, but it has become popular in very short time. It has WooCoommerce plugin that makes the integration a lot easier for small sellers.
Stripe offers a variety of helpful tools.
With the mission of increasing the GDP of the internet, Stripe is giving competition to PayPal.
CC Avenue provides a complete shopping solution for eCommerce sites. Its Payment Gateway is a secure tool with many functionalities.
CC Avenue offers many payment options. It supports 27 currencies and also has multilingual checkout page.
Customisable checkout page and card storage vault make the CC Avenue an attractive payment gateway. It provides plugins and addons for all the platforms and makes the integration easy.
On the other hand, pricing is high. With zero setup fee, the transaction price goes as high as 4%. And the payout is low. It sometimes takes weeks and months of time.
One of the best payment gateways for the dropshippers is 2checkout. After integration, your eCommerce store would be able to process 87 different currencies in 5 languages.
2Checkout is a global payment method serving in more than 200 countries. But it still has a local image that looks familiar to the buyers.
It offers fraud protection with no extra fee. Available extensions make the integration a lot easier.
The prices are high for all the plans, but they are as transparent as they could be. There are no hidden charges.
Authorize.net is available in the market since 1996, hence one of the oldest payment gateway.
There is no setup fee for small business owners, and the transaction fee is low too. Though Authorize.net asks for a merchant account, you can make one with Authorize.net.
It accepts all the cards, PayPal and Apple Pay. Authorize.net is a global payment gateway and does not support the native methods of online payment.
With the help of extensions and plugins, Authorize.net is easy to integrate with any store.
BlueSnap is a global payment gateway with hundreds of payment methods included. It provides payment for all type of sales, be it digital, subscription, membership or a physical one.
BlueSnap supports PayPal, Apple Pay, VISA, MasterCard, Discover, Masterpass, Visa Checkout, Google Pay, Alipay and many more, giving shoppers tons of choices to make a payment.
BlueSnap is one of the most secure payment gateways. If your business has large sales and you do not want to compromise with payment security, BlueSnap is an excellent Gateway.
Plugins are available to integrate for all popular platforms.
What is a payment gateway with example?
Payment Gateway is a software that enables the transaction on eCommerce sites. A payment gateway creates a secure environment for monetary transactions to happen.
PayPal, Amazon Pay, Skrill, Authorize.net, and BllueSnap are a few examples of Payment gateways.
Which online payment system is best?
No one is best. It is all about the needs of the seller.
There are a few characteristics that you can look for.
- Which Payment gateway is popular among the population you are targeting?
- How fast payment processing happen?
- How fast is the payout?
- Tight security of the Payment Gateway.
What are the most popular payment gateways?
PayPal, Stripe and Amazon Pay are most popular among the Payment Processing Programs.
Paypal has the largest market share in the Industry.
No eCommerce business is complete without a payment gateway. The store needs it so the customer can pay for the product he is buying.
Choosing one could be a problem. That’s why I suggest experimenting with two or more. Keep the one that works great with the store.
All the Payment Gateways on the list are the best of the industry. They all are easy to integrate with any platform and have a simple interface.
Do tell me which payment gateway you are using on your site. Do you want to add any other Gateway to the list?
Leave the suggestion in the comments.