What Is A Payment Gateway?

Payment gateways are sometimes known as online payment processors. They are quintessential for all online stores. In the dearth of payment gateways, accepting payments from your buyers won’t be possible. The key purpose of payment gateways is to communicate the transactions between online businesses and their buyers.

Why Do I Need A Payment Gateway?

Payment gateways are in place for safeguarding the businesses that use Shopify and their customers. The security measures stay robust because the payment gateways facilitate transactions using credit and debit cards. While these transactions could be online, they could also be in-person, in case point-of-sale technology is used. With the payment gateways in place, secure transmission of payment data is ensured.

What Do I Need To Consider When Choosing A Payment Gateway?

Location

When choosing a payment gateway, the first factor to be accounted for is the location. The online store owner needs to check whether or not a selected payment gateway supports the transactions made in any particular country. This should be checked individually for all payment gateways, because they all support different sets of countries.

When you take a look at Shopify, you should get a nice breakup of payment gateways that are available in your region. Shopify payment gateways will meet the requirements of merchants and buyers in nearly all cases.

Pricing Structures

Pricing is the second most important factor in line when choosing payment gateways. The pricing structure of a payment gateway will affect your profit margins. It is not only rates per transaction that a merchant should look into when choosing a payment gateway. He should also lay a consideration over the monthly payments charged by the payment processors.

A merchant is likely to have to consider if higher transaction rates with no monthly costs are a more favorable alternative for him, over a monthly transaction fee with a lower rate.

Pricing structures are variable for payment gateways. Integrating with any Shopify gateway for payment comes with no additional fees. A merchant has to see what works for his business.

Set up time

A merchant has to consider how soon a payment gateway can be set up. Just as an instance, PayPal can be set up in less than a day but Sage Pay may take up to 4-5 months to get set up. One of the best practices to go by in this regard is to decide upon the payment gateway that you intend to go for at the time of setting up your store. There are going to be a range of attractive options available at a merchant’s disposal for setting up a payment gateway. We can take a look at a few of the top options available for Shopify payment providers in this article.

Types of Payment Gateways

Shopify payment processing can be broadly subdivided into three subcategories:

  • Hosted gateway
    Hosted gateways are alternately known as redirect payment gateways. In the case of a hosted gateway, upon making a purchase, an end consumer is directed to the payment gateway page from your site. But, upon completing the payment, the end consumer is redirected back to your website.
  • Self-hosted
    In the case of a Hosted gateways” target=”_blank”>self-hosted payment gateway, the payment data is first collected over the Shopify site. The data is then sent to the payment gateway in the backend. The processing of the payment takes place off-site.
  • Non-hosted
    In the case of a non-hosted payment gateway, a merchant will first collect and then process the payment on the website. The solution calls for additional technicalities, which makes it more popular for larger, enterprise-grade organizations. But the solution demands ongoing shopify support and maintenance.

What All Payment Gateways Are Available For Shopify?

Shopify Payments

In case it is over Shopify that you run your web mall, then, the dedicated payment gateway for Shopify surely calls for your consideration. This way, the need to set up third-party Shopify payment methods is done away with. Setting up Shopify Payments is not required. It is automatically set up for accepting major payment methods.

PayPal

PayPal, undoubtedly, is the greatest payment gateway in the world, and a great alternative in the Shopify payments list for payment gateways. it is once used to be a part of eBay, its parent company. But, now, PayPal is an entity by itself.

Setting up PayPal is going to take less than a day. it has furthermore options available for both, paid or free merchant accounts. In case a merchant happens to encounter a problem, the support system made available by PayPal is remarkable as well.

PayPal is among the best third-party payment providers Shopify. Upon opening a store, a merchant is granted a PayPal Express Checkout account. This comes with the email that the merchant had used for signing up for his Shopify store.

Upon setting up his PayPal account, a merchant can collect Shopify payments for the orders made with it.

Worldpay

Worldpay was set up in 1989. It has vastly been cited to be the second-largest payment gateway platform in the world, after PayPal. In nearly 120 countries, Worldpay is accessible. Furthermore, the support and sales teams of Worldpay are remarkable. This makes Worldpay Shopify payment processing a preferable option to go ahead with.

Stripe

Shopify payment integration with Stripe brings simplicity to setting up Shopify payment system for an online store. While the integration is remarkably easy, the pricing structure is also clear. Shopify payments Stripe further yields the ability for setting up direct debits and recurring bills.

Klarna

Klarna is among the payment providers Shopify with a unique business model that allows customers to buy now and pay later. To derive the maximum value from the best payment method for Shopify, Klarna, a merchant gives the end customer the ability to split the cost into 3 interest-free installments. The end customer can then make payments across the 36 months that follow.

Amazon Pay

There is no end to the number of people who nowadays hold an Amazon account. When an end customer shares their Amazon details, they can easily make a payment over your store. Amazon payments Shopify is easy to accomplish.

While a merchant has an Amazon Professional Seller account, he can set up Amazon Pay over his active Shopify store. While being among the top third-party payment providers Shopify, Amazon’s fees also have to be taken into consideration before setting up the payment gateway. It may not always be the best choice to go ahead with for low volume merchants. Similarly, reaching his account may take some time for a merchant if his customers purchase from him over the Amazon payment gateway.

Opayo

Opayo is one of the most preferred Shopify payment options and was earlier used to be known as Sage Pay. It is among the most preferred Shopify payment gateways US and for the UK.

In the case of Opayo, a merchant is not charged a fee per transaction. He instead pays a flat monthly fee based on the number of transactions made. This starts at £19.90 per 350 transactions made monthly.

Shop Pay Installments

Shop Pay Installments is not one of the Shopify third-party payment providers. It is instead one of the internal Shopify payment methods. As a variation of Klarna, Shop Pay Installments also works over the buy now pay later model.

Square

Square is the best payment gateway for Shopify. It has come to prominence only over the prior few years, and works for online and offline payments alike, using POS hardware.

Square is your preferred Shopify custom payment gateway and connects your web mall with your retail, real-world store. By using the dashboard, you can manage the inventory from a single dedicated location.

Conclusion

Shopify payment API lets you connect to a host of payment gateways. Shopify payment gateway integration is simple when building your Shopify website. But, a merchant has to keep in mind certain factors, such as time for setting up the account, options for transaction fees, time taken to receive your payments, provisions for secure transactions, and the technical support system.

Cyblance is your best avenue for hiring a Shopify expert. We consult over the best-suited payment gateways for Shopify based on your requirements and create Shopify store for you that is an all-around winner.

 

 

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