The success of a business majorly depends on increasing sales, making it crucial to pay attention to optimizing every aspect of the customer experience. One important factor in this endeavor is choosing the right payment gateways for eCommerce business.
If customers face any difficulty or friction during the checkout process, they are more likely to abandon their shopping carts. This will directly impact your sales. Not only do you miss out on sales opportunities but also experience decreased revenues.
Therefore, it is crucial that customers can pay easily. Choosing the right WooCommerce payment gateway providers plays a big role in this.
In this article, we look at the best payment gateways for eCommerce businesses. We cover how they work, what fees they charge, and their key features. This will help you decide which one is the best fit for your business needs and customers.
4 Best Payment Gateways for eCommerce Businesses
We have curated the list of the top 4 payment gateways to help you easily pick the best option for your WooCommerce store. Let’s have a look-
1. Stripe
Stripe operates on a pay-as-you-go pricing model. There is no setup as well as annual charges. Its comprehensive suite of features enables merchants to process one-time and recurring payments, streamline invoicing, automate tax calculations, and more.
Service Statistics
Stripe offers a transaction fee of 2.90% plus $0.30 per card or digital wallet transaction. It supports over 135 currencies and operates in 46 countries.
Key Features
- Payment Links for saved payment methods and easy one-click checkouts
- Stripe Elements for customizable and PCI-compliant payment collection
- Stripe Radar for fraud detection and prevention using machine learning
- Dynamic 3D Secure for minimizing fraud risk in high-risk transactions
- Complex functionality may require API knowledge and developer assistance
- Additional fees for custom checkout domain ($10/month)
- High setup fee for Point-of-Sale system ($249)
2. PayPal
With a rich history in the payment sector, PayPal provides a diverse range of services tailored for personal, business, and eCommerce needs. If you are running a business with many international transactions, it’s suggested to use an additional payment gateway alongside PayPal Standard.
Service Statstics
PayPal is available in dozens of countries and requires users to have a PayPal business account. Charges incurred are based on the type of account and the volume of sales conducted.
Key Features
- PayPal is a widely accepted and recognized payment method
- Seamless integration with WooCommerce
- Secure payment processing trusted by millions of users worldwide
- User-friendly interface for an easy checkout process
- Flexible payment options including credit/debit cards and PayPal balance
- Robust fraud protection and buyer/seller protection programs
- No on-site checkout experience (customers redirected to PayPal)
- Need to review charges carefully as they impact your business
- Limited payment options for international customers
3. WooCommerce Payments
This payment gateway utilizes a pay-as-you-go model with a transaction fee of 2.9% + $0.30 for U.S.-issued cards, added by an additional 1% fee for cards issued outside the United States.
Service Statistics
As of the current update, WooCommerce Payments is accessible for stores located in 38 countries. It can accept payments from over 100 countries. To confirm availability, users can check the expanding list on their website.
Key Features
- Transparent fee structure for clear understanding
- Easy and quick WooCommerce integration for an organized experience
- User-friendly setup process for simplicity and efficiency
- Global payment acceptance facilitates transactions worldwide
- Real-time transaction monitoring enhances security and oversight
- Higher transaction fees may affect profitability
- Limited customization options restrict tailored solutions
- Dependency on Stripe infrastructure introduces reliance
- Potential service interruptions may disrupt operations
- Restricted availability in some regions limits accessibility
4. Square
Square emerges as a top-tier choice for payment gateway for eCommerce stores. This is especially helpful for retailers with physical storefronts, delivery capabilities, and multiple sales avenues.
Square’s strength lies in its provision of terminals and credit card readers that allow businesses to process in-person payments. This complements their online transaction capabilities.
Service Statistics
Square is available in the US, Canada, Australia, Japan and the UK and has a fixed transaction rate (varies by country). The WooCommerce Square extension synchronises products between your website and your Square account. It also supports adding products directly to your Square account, which are then added to your WooCommerce store.
Key Features
- Seamless synchronization of products between WooCommerce and Square
- Integration with WooCommerce Subscriptions for recurring payments
- Detailed sales analytics and reporting functionalities
- Customizable checkout experience for enhanced branding
- Comprehensive inventory management capabilities
- Secure payment processing with advanced fraud detection measures
Drawbacks
- Limited support for international currencies
- Higher transaction fees as compared to some competitors
- Occasional delays in funds availability
- Complex setup process for beginners
- Limited geographic availability compared to some other gateways
- Transaction fees may vary across supported countries
