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Payment gateways are becoming more and more important. This is due to the rise of eCommerce. The developments in eCommerce are slowly but surely becoming one the most significant developments in the world of business in the digital age.
In fact, the United States Department of Commerce highlights how 11.4% of total retail sales came from eCommerce retail platforms. This is a trend that's also present around the world, which is why optimizing transactions for customers is key to the success of any business.
One way to do this is by focusing on payment gateways. This is the best way to optimize payment solutions and checkout experiences. To help you out, we've put together a list of the best payment gateways that you can make use of along with their benefits and drawbacks.
Being around since 1999, PayPal is a pioneer in the industry, having laid the groundwork for many other companies. This is why PayPal is one of the world's most popular payment gateways.
PayPal offers debit and credit card processing and accepts multicurrency payments in different currencies. Like other service providers, PayPal accepts payments from major credit cards and debit cards, making it great for stores with international customers.
Another great feature that PayPal offers is the option to add a button to your online store or website that redirects customers to PayPal to complete a purchase. This streamlines the entire transactions, making it more convenient for people to purchase your products or services.
Unlike other payment processors, PayPal doesn't charge an installation or monthly fees. PayPal offers straightforward pricing and only deducts 2.9% plus an additional $0.30 for every completed transaction.
Now, one downside to using PayPal is that it requires your customers to have a PayPal account in order to may credit card or debit card payments. They also charge businesses a $20 non-refundable chargeback fee whenever a payment is disputed.
If you're looking for a flexible payment gateway provider then Authorize.Net might be what you're looking for. It's compatible with many eCommerce platforms and allows for both domestic and international transactions when using cards from major card issuers.
Authorize.Net is also flexible when it comes to payment types. It allows for most payment methods and is one of the few payment gateway providers that accept payments from popular digital payment services such as Apple Pay, PayPal, and Visa Checkout.
When it comes to pricing, Authorize.Net charges a monthly fee of $25 and also deducts $0.10 per transaction if you get their All-In-One option. This also sets your business up with a merchant account that allows you to accept online payments.
While it is convenient, it may prove to be too costly for small businesses as it could eat heavily into their profits. However, depending on your business' needs, Authorize.Net could be a great payment gateway as it works with a slew of different payment options.
Unlike other payment gateways that have brick-and-mortar counterparts, Amazon Payments (Amazon Pay) only exists as an online gateway. This makes it ideal for online stores that are looking for a minimalist option.
However, Amazon Pay accepts payments from major networks such as Visa, Mastercard, Discover, and American Express. It's quite limited outside of these options.
Fortunately, they only charge per transaction—with a fixed rate of 2.9% plus an additional $0.30. This is the minimum fee for credit card and debit payments in the payment gateway industry. There are no fees outside of the transaction fee.
Given that Amazon Pay is an online-only payment gateway, you'd assume that it can accept various digital payment options. Contrary to this, Amazon Pay can't even accept PayPal payments. This may be because of its bare-bones pricing.
Stripe is a great option if your website makes use of WooCommerce, Shopify, Wix, Squarespace, or BigCommerce. This is because Stripe was made specifically with eCommerce platforms in mind, giving it many comprehensive features that optimize it for eCommerce use.
Stripe can accept payments from a multitude of payment types as well as 135 different currencies. This makes it a good choice when it comes to making things as convenient as possible for your customers.
Even better—Stripe does not charge a monthly fee or setup fee. They only charge 2.9% of the cost plus a $0.30 fee per transaction made.
While other payment gateways also come with fraud protection, Stripe takes this to the next level by making use of machine learning fraud protection. This advanced fraud protection gives you an added level of safety, minimizing unnecessary costs from chargebacks.
Now, where Stripe really excels is its seamless integration between online and offline channels. If you have a physical store, you can make use of Stripe's virtual point of sale feature to process payments as well.
Due to the growing importance of eCommerce, it's in your best interest to make the entire online shopping experience as smooth and easy as possible.
This is why companies are now focusing on delivering the most convenient and frictionless transaction possible. For more information on this and do check out Processing Card.
There are three types of payment gateways. Now, they mainly differ when it comes to how transactions are processed.
This will depend on the specific features that you are looking for. If you're looking for a gateway that also sets up a merchant account for you, Authorize.Net is a great option. If you already have a site and are looking to add a checkout button, PayPal can be quite useful.
PayPal is a payment gateway. However, unlike other payment gateways, PayPal is also a service that you can use to send funds to other people.
We hope that this has been informative and can help ease your decision when it comes to choosing the right payment gateway. If we missed anything or if you have any more questions, don't hesitate to reach out and contact Processing Card today!
