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How to Choose The Right Payment Gateway and What Are The Best?

When you start a dropshipping business and open a store on ShopifyWooCommerce, or other ecommerce platforms, you need to know about the payment gateway and choose your store’s payment gateways to make transactions. The payment gateway integrated into your store is how people securely transfer money from their account to yours. Without a payment gateway integration, the customers won’t be able to pay for the services or products they are buying online. There are many different payment gateway options available. And with the right payment gateway, you can make it easy for customers to pay for your products. The article will introduce how to choose the right payment gateway and what are the best payment gateways for dropshipping store.

How To Choose The Right Payment Gateway

You should consider the following to choose the right payment gateway:

1. Supported by your e-commerce platform

There are different payment gateways available based on the different encommerce platforms where you open a store. If you use Shopify, then you’ll need a gateway that integrates with that specific platform.

You can check which payment gateways your e-commerce platform works with. Just enter to the platform’s official extension catalog or documentation and look into the “payments” section.

There are the lists of payment gateways available on some top ecommerce platforms:

2. Check security

The security of the network can avoid your customers worrying that their financial information and ensure your customers that financial will information remains secure when purchasing from your store. To make sure that your payment gateway is secure, always check that they are PCI compliant. It is critical when accepting credit cards online.

There is the short list of payment gateway security layers:

①Every payment gateway has high-level encryption (SSL encryption 128 Bit encrypted) to avoid all types of breaches.

②The second layer of security is the digital signature. Even if a hacker got your ID your account is still safe with digital signatures.

③After digital signature comes the Dynamic IPs, if your account is used from another IP address then it will be denied.

3. Attention to the fees

Make sure to carefully check the fee structure with your gateway before you commit to it long term.

Most commonly, there are three components of the final price tag:

Set-up cost: varies from $0 – $250.

Monthly cost: $10 – $50.

Transaction fees: Usually, it’s $0.00 – $0.25 + 1% – 5% per each transaction. You have to pay both the fixed fee and the percentage of the transaction.

In addition, there may be other fees, such as chargeback fees, payment processing fees, termination fees, etc.

The following are the fees that you can make yourself aware of:

  • Start-up/annual fee
  • Monthly statement fee
  • Refund fee
  • Transaction fee
  • Minimum monthly fee
  • Settlement fee

How much you pay to transfer the money from the merchant account to your regular bank account.

  • Anticipation fee

If you want to receive the money before the standard credit card deadline.

  • Rolling reserve

If you have a high-risk business, processors may ask for an initial warranty.

  • Termination fees
  • Chargeback fee

4. Good customer experience

It is necessary to provide a good and convenient shopping experience for customers. Avoid too many steps, too much time, or too much personal information in case your customer abandon the purchase. Try to look for a payment gateway that allows you to accept all major credit and debit cards, as well as being integrated with all major shopping carts. What’s more, the payment gateway should be optimized for mobile users as well.

5. Use more than one payment gateway

You should use more than one payment gateway to make it easier for customers and give everyone other options. More options will translate to more convenience for the customer and less friction at checkout. Paypal is a necessary payment gateway for it is available in most countries around the world which allows you to sell internationally. And you should know your target audiences’ preference about the payment methods and see if the payment gateway support them. Each payment gateway supports a different set of payment methods.

6. Choose providers with good reputations

Payment processing is critical to your business. It is a good idea to work with a provider who has an overall good reputation in the industry. In general, as long as you pick a large payment gateway and processor that has been in the market for a while, it will be okay. Be careful that some payment providers have had problems with outages. And some have a reputation in some circles for blocking merchants’ money without due cause.

7. Available support

Check if the provider offers live technical support, at least within standard working hours. Thus you can quickly resolve any technical problems. Most payment gateways will not support processing transactions related to high-risk business. Gambling, adult content, travel, tobacco, debt collection, electronic cigarettes, credit repair, MLM are high-risk business. In such cases, you’ll need to choose a provider that specializes in so-called “high-risk” payment processing.

Best Payment Gateways For Dropshipping Stores

1. PayPal

PayPal is one of the most commonly used payment gateway for dropshipping stores. It has worldwide acceptance in more than 200 countries. There is no doubt that it can be a profitable addition to the main payment gateway. It will bring more customers to the site. What’s more, if the main payment gateway goes down due to some technical issues, PayPal can act as a backup. It supports all prominent credit cards, such as Visa, Mastercard, American Express, Citibank, and more.

2. Stripe

Stripe is available in 34 countries. And it gives you complete control over the checkout experience and this makes it popular. It is quite popular among the American and Canadian dropshippers.  And it also not charging you the monthly fee. What’s more, it has many useful and powerful features, from in-store payments to comprehensive security and an in-depth dashboard. In addition, it accepts quite a few different payment options, including multiple eWallets. However, it doesn’t accept PayPal and you can use multiple different payment gateways to solve the problem. And it is made specifically for developers that it is difficult to handle.

3. Authorize.net

Authorize.net is currently available in more than 33 countries. It is one of the oldest and most trusted payment gateways available for credit card users. Actually, it supports all major credit cards – including MasterCard, Visa, American Express, Diner’s Club, Discover, and JCB. It also supports digital payment services like Apple Pay, PayPal and Visa Checkout. What’s more, it features multiple extensions for easy integration with WooCommerce stores. And it also has the lowest transaction fee or 2.90 + $0.30 for ecommerce and dropshipping stores.

4. 2Checkout

2Checkout is a great option for dropshippers with a multinational presence. It operates in more than 87 countries worldwide across 15 languages. It is one of the best credit card gateways and supports all major credit cards such as Mastercard, Visa, Diners Club, American Express and others. And it is available in many third world countries, where it is used in combination with another payment gateway.

5. Shopify Payments

Shopify has partnered with Stripe to offer their own in-built payment gateway for Shopify users. It is hands down the best payment gateway for Shopify and available in 11 countries. Shopify Payments is already integrated with your store and it is extremely easy to set up and use. If you use Shopify payments on Shopify, Shopify will not charge you a small fee for each transaction and only charge the regular transaction fee of payment gateways. However, there is a long list of exclusions for types of stores they don’t accept. And if you don’t use Shopify, then you can’t use Shopify Payments.

Facebook Group Discussion

2 days ago

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19 hours ago

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3 days ago

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