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Choosing the right online payment service is important for running a successful Shopify store. A smooth, secure checkout builds customer trust and increases sales.
This article describes the 7 top online payment services for Shopify to help improve your processes and earn more from online transactions.
First, what is an online payment service and why do Shopify stores need one? Let’s get started.
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What Are Shopify Payment Gateways?
A payment gateway is like a digital cash register for your online store. It is a secure system that handles payments safely.
When a customer buys something from your Shopify store, the payment gateway takes their payment information and processes the transaction. It collects the money from the customer’s credit card, PayPal, or other payment method. Then it securely delivers that money to your Shopify account.
With this understanding, let’s explore the best payment gateways for Shopify.
7 Best Payment Gateways For Shopify
1. FacilePay
FacilePay is a top choice for Shopify stores because it’s easy to set up, secure, and affordable. FacilePay integrates smoothly with Shopify, prioritizes security for peace of mind, enables multi-currency transactions, and is a budget-friendly option. Learn why FacilePay is worth considering:
- Easy to Connect to Shopify: Simple to link FacilePay to your store. Hassle-free setup.
- Strong Security Features: Uses encryption and fraud monitoring to keep payments safe. Protects customer data.
- Accepts Multiple Currencies: Supports international payments in different currencies. Good for global stores.
- Cost-Effective Pricing: Offers competitive transaction fees so you keep more profit. It helps maximize earnings.
FacilePay’s commitment to simplifying subscription payment processes aligns perfectly with the needs of eCommerce entrepreneurs seeking efficient and secure payment solutions for their subscription-based businesses.
2. PayPal
PayPal is a trusted choice because customers recognize it, it’s widely used, simple to set up, and very secure.
- Customers Trust the Brand: PayPal’s popularity makes shoppers comfortable paying with it.
- Accepted by Many Retailers: Convenient payment option since it’s taken by so many online stores.
- Easy to Connect to Shopify: Straightforward integration even for beginners. Quick setup.
- Robust Security Protections: Uses strong measures to keep payments and data safe.
3. Stripe
Stripe is another top-notch payment gateway that seamlessly integrates with Shopify. Here are the reasons that make Stripe a compelling choice:
- Developer-friendly: Stripe is known for its developer-friendly API, allowing for customization and flexibility in payment processing.
- Global Reach: Stripe supports a wide range of countries and currencies, making it ideal for international eCommerce.
- Subscription Payments: If you offer subscription-based services or products, Stripe’s subscription management tools are invaluable.
- Real-time Reporting: Access detailed transaction data and reports in real-time for better insights into your business.
4. Authorize.Net
Shopify merchants still prefer Authorize.Net, a well-acknowledged player in the payment gateway field. Check the following reasons to choose Authorize.Net
- Proven Track Record: Authorize.Net has a solid reputation for consistent performance and reliability.
- Security Features: This platform offers advanced fraud detection and prevention tools to safeguard your transactions.
- Recurring Billing: For subscription-based businesses, Authorize.Net provides robust recurring billing options.
- Customer Support: Access to excellent customer support can be a lifesaver when you encounter issues.
5. 2Checkout (Now Verifone)
Formerly known as 2Checkout, Verifone offers a comprehensive payment gateway solution for Shopify. Let’s learn why Verifone is a good choice.
- Global Payments: With Verifone supporting more than 100 currencies, you can reach out to global markets.
- Multi-Language Support: Cater to a diverse audience with Verifone’s multi-language checkout options.
- Mobile Optimization: As mobile shopping continues to grow, Verifone ensures a smooth mobile checkout experience.
- Multiple Payment Methods: Accept various payment methods, including credit cards, PayPal, and more.
6. Braintree
Braintree, which is one of PayPal’s subsidiaries, provides an extremely strong and mobile-oriented payment gateway solution. These reasons let you know why Braintree is the most used gateway.
- Mobile-first Approach: Braintree is tailored for mobile commerce and provides ease to its smartphone users.
- Developer-friendly: Like Stripe, Braintree offers developer tools for customization and integration.
- International Reach: Expand your eCommerce business globally with Braintree’s international support.
- Tokenization: Enhanced security through tokenization ensures customer data remains protected.
7. Square
Square is both a payment gateway and a complete POS system. It enables easier payment of stores to users who want both the online and traditional forms. Let’s learn the reason why to choose Square.
- Integrated Ecosystem: Square offers a seamless integration between your online store and physical retail locations.
- In-person Payments: If you have a physical store or attend events, Square’s POS system is a valuable addition.
- Inventory Management: Manage your inventory efficiently with Square’s built-in tools.
- Transparent Pricing: Square’s pricing is transparent, with no hidden fees, making it easy to understand your costs.
Tip: Learn about the necessary reasons for implementing a payment gateway in an eCommerce business. This will help you to identify the right gateways, their importance, and how they will help you to reduce tasks related to managing revenue and payment from clients.
Factors to Consider When Choosing A Payment Gateway For Shopify
When running an eCommerce business, you can’t afford a mistake that will cost you hundreds and even thousands of dollars. However, some of the important points of consideration in selecting a payment gateway should be as follows.
1. Transaction Fees And Pricing Structure
The cost of using a payment gateway can significantly affect your profitability. Understand the pricing model and transaction fees associated with each gateway. Key considerations include:
- Per-transaction Fees: Evaluate the flat fees and the percentage of each transaction that the gateway charges. These fees can vary widely between providers.
- Monthly Costs: Some gateways may require a monthly subscription or maintenance fee. Consider how this fits into your budget.
- Hidden Fees: Be vigilant for hidden fees, such as chargeback fees, currency conversion fees, and fees for premium features.
2. Accepted Payment Methods
Your customers may have preferred payment methods so make sure that the payment supports multiple payment options. For example:
- Credit and Debit Cards: Ensure that major card brands such as Visa, Mastercard, and American Express are accepted.
- Digital Wallets: Check if the most recognized digital wallets such as PayPal, Apple Pay, and Google Pay have the support.
- Bank Transfers: Some customers prefer bank transfers or direct debits, so check for these options as well.
3. Security And Fraud Prevention
Security is paramount when handling financial transactions online. Assess the payment gateway’s security features:
- PCI DSS Compliance: Ensure that the gateway is compliant with the Payment Card Industry Data Security Standard (PCI DSS). This standard sets guidelines for handling cardholder data securely.
- Encryption: Look for strong encryption protocols like SSL/TLS to protect sensitive data during transmission.
- Fraud Detection: Evaluate the gateway’s fraud detection and prevention tools, including real-time monitoring and machine learning algorithms.
4. Ease Of Integration
The ease of integrating the payment gateway with your eCommerce platform is essential. Consider the following:
- Supported Platforms: Confirm that your gateway is integrated with your e-commerce platforms such as Shopify, WooCommerce, or Magento.
- API and Documentation: Assess the availability of developer-friendly APIs and comprehensive documentation to facilitate integration.
- Developer Support: Consider whether the gateway provides developer support and resources for customization and troubleshooting.
5. Geographic Reach And Multi-Currency Support
- If your business serves a global customer base, ensure that the payment gateway supports international transactions:
- Geographic Coverage: Verify that the gateway operates in the regions where you intend to do business.
- Multi-Currency Support: Look for gateways that can process transactions in multiple currencies, simplifying global sales.
These are core factors to consider when choosing a payment gateway. Together, these factors determine the payment experience that your customers feel and the efficiency of your operation. Taking into account these issues will guide you in the selection of a payment gateway that is compatible with your company’s objectives and customers’ expectations.
Bonus: Do you want to scale your eCommerce business? Are you a rising eCommerce startup facing challenges to establish yourself in the market? Read this article which describes how a startup can plan and scale an eCommerce business with proper planning.
Conclusion
| Payment Gateway | Key Features |
|---|---|
| FacilePay |
Easy to Connect to Shopify: Simple to link FacilePay to your store. Hassle-free setup. Strong Security Features: Uses encryption and fraud monitoring to keep payments safe. Protects customer data. Accepts Multiple Currencies: Supports international payments in different currencies. Good for global stores. Cost-Effective Pricing: Offers competitive transaction fees so you keep more profit. It helps maximize earnings. |
| PayPal |
Customers Trust the Brand: PayPal’s popularity makes shoppers comfortable paying with it. Accepted by Many Retailers: Convenient payment option since it’s taken by so many online stores. Easy to Connect to Shopify: Straightforward integration even for beginners. Quick setup. Robust Security Protections: Uses strong measures to keep payments and data safe. |
| Stripe |
Developer-friendly: Stripe is known for its developer-friendly API, allowing for customization and flexibility in payment processing. Global Reach: Stripe supports a wide range of countries and currencies, making it ideal for international eCommerce. Subscription Payments: If you offer subscription-based services or products, Stripe’s subscription management tools are invaluable. Real-time Reporting: Access detailed transaction data and reports in real-time for better insights into your business. |
| Authorize.Net |
Proven Track Record: Authorize.Net has a solid reputation for consistent performance and reliability. Security Features: This platform offers advanced fraud detection and prevention tools to safeguard your transactions. Recurring Billing: For subscription-based businesses, Authorize.Net provides robust recurring billing options. Customer Support: Access to excellent customer support can be a lifesaver when you encounter issues. |
| 2Checkout (Now Verifone) |
Global Payments: With Verifone supporting more than 100 currencies, you can reach out to global markets. Multi-Language Support: Cater to a diverse audience with Verifone’s multi-language checkout options. Mobile Optimization: As mobile shopping continues to grow, Verifone ensures a smooth mobile checkout experience. Multiple Payment Methods: Accept various payment methods, including credit cards, PayPal, and more. |
| Braintree |
Mobile-first Approach: Braintree is tailored for mobile commerce and provides ease to its smartphone users. Developer-friendly: Like Stripe, Braintree offers developer tools for customization and integration. International Reach: Expand your eCommerce business globally with Braintree’s international support. Tokenization: Enhanced security through tokenization ensures customer data remains protected. |
| Square |
Integrated Ecosystem: Square offers a seamless integration between your online store and physical retail locations. In-person Payments: If you have a physical store or attend events, Square’s POS system is a valuable addition. Inventory Management: Manage your inventory efficiently with Square’s built-in tools. Transparent Pricing: Square’s pricing is transparent, with no hidden fees, making it easy to understand your costs. |
Tip: Learn about the necessary reasons for implementing a payment gateway in an eCommerce business. This will help you to identify the right gateways, their importance, and how they will help you to reduce tasks related to managing revenue and payment from clients.
Choosing the right payment gateway for your Shopify store may affect the success of your business. All the above-mentioned payment gateways have their own set of features, advantages, and cost structures. Therefore, it is essential to assess your particular business requirements, target market, and growth ambitions when making the decision.
Remember that providing your customers with a secure and convenient payment experience is key to building trust and increasing conversions.
Whether you opt for the user-friendly FacilePay, the trusted PayPal, the developer-friendly Stripe, or any other options, your choice should align with your eCommerce goals and customer preferences.
Make an informed decision, integrate your chosen payment gateway seamlessly, and watch your Shopify store thrive in the world of eCommerce.
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Finding The Best Payment Gateway For Shopify: FAQ
Q: Is the Shopify payment gateway free?
A: Shopify Payments is available as a built-in payment gateway for Shopify stores. While there are no additional transaction fees for using Shopify Payments, standard credit card fees apply.
Q: Is PayPal enough for Shopify?
A: PayPal is a widely accepted and trusted payment method for Shopify. Many customers prefer using PayPal, and it can be seamlessly integrated into your Shopify store.
Q: Does Shopify charge a fee for PayPal transactions?
A: Yes, Shopify charges transaction fees for using external payment gateways like PayPal. The fees vary based on your Shopify plan, ranging from 0.5% to 2% per transaction.
Q: Why is Stripe no longer on Shopify?
A: Stripe is still available on Shopify. If you are experiencing issues, ensure your store is set up correctly or check for any updates in the Shopify app store.
Q: Do I need Stripe if I have Shopify payments?
A: No, you don’t need Stripe if you use Shopify Payments. However, offering multiple payment options, including Stripe, can cater to a broader range of customer preferences.
Q: Is Stripe or Square better?
A: Choosing between Stripe and Square depends on your specific business needs. Both are reputable payment gateways, but Stripe may be preferable for online transactions, while Square is known for in-person and online versatility.
Q: How do I accept all payments on Shopify?
A: To accept all payments on Shopify, ensure you have multiple payment gateways activated, including Shopify Payments, PayPal, Stripe, and others, to accommodate diverse customer preferences.
Q: How do I set up a payment gateway on Shopify?
A: Setting up a payment gateway on Shopify involves navigating to your Shopify admin, selecting “Settings,” choosing “Payments,” and adding the preferred payment providers. Follow the prompts to complete the setup.
Q: What is the most used payment gateway?
A: Shopify Payments, PayPal, and Stripe are among the most widely used payment gateways, providing reliability and trust for both merchants and customers.
Q: What is the best payment system for small businesses?
A: The best payment system for small businesses depends on your specific needs. Shopify Payments, Square, and Stripe are popular choices, offering flexibility and ease of use.
Q: Which payment gateway has the lowest charges?
A: Determining the lowest charges depends on your business volume and transaction types. Shopify Payments may have lower fees for some transactions, but it’s essential to compare rates based on your specific business requirements.
