If you’ve made up your mind to sell your products online, you’ll have to think about the payments and how you and your customers are going to deal with it when paying for the goods and services. If you haven’t decided how you’ll handle the payment processing for your business yet, it is better to start thinking before you put on more effort to your business establishment. Remember, without a good payment processor, your business will run into many hurdles and they will, for sure, impact the profit margin. That’s why choosing the right payment gateway is very important for your business. But before I talk about the WooCommerce payment processing options for WordPress sites, you need to understand what a payment gateway is.
What is a Payment Gateway?
A Payment Gateway is a website based payment platform that processes and accepts the money through credit or debit cards or other mediums of payments. There are tons of other payment methods available for businesses like cryptocurrency (Bitcoin, Etherium, etc.), bank transfer or wire transfer, etc. besides the traditional credit and debit cards.
But no matter what form of payment you use, you’ll have to know that most of the stores, especially online stores, don’t process the payments by themselves. These stores receive payments through different payment gateways. Payment gateways offer services to both customers and owners. It is a safe way of transaction.
By using payment gateways, both parties are protected. As a businessman, you will have to worry less in terms of security. Also, it is the easiest way to pay for products and receive that money.
To choose a payment gateway for your WooCommerce website, you’ll have to consider the costs among many factors. A payment gateway charges you for their services. So, before choosing a payment gateway, you’ll have to choose the one that meets your budget. Also, many payment gateway services don’t accept certain bank-issued or types of cards and sometimes the restriction is on some specific regions only. To avoid further complications, you’ll have to know who your target audiences are and if they use those restricted cards or not. Finally, consider which payment gateway is easier to connect with the WooCommerce website. To make things simpler for you, let me tell you about the top 5 WooCommerce payment gateways for WordPress websites.
PayPal is the most popular payment gateways among users. It has over 200 million active users and available in 25 currencies. Besides, PayPal is always on the radar because of its founder Elon Musk. However, for business purposes, PayPal Pro allows the users to use the payment process service even without creating an account on the platform. With PayPal Pro, you can make credit card payments and buy products with that. It offers the users to use their balance for purchases from different stores around the globe, send money to one another, and request payment from others. It also offers you to create a customized option for your store checkout on your e-commerce website.
When the payment is made, the money is directly sent to your account, and you can withdraw the money or save it in your account. However, PayPal cannot process recurring payments, for example, subscription. So, if your business has a subscription model, you will have to think once again before using PayPal for your transactions.
Also, PayPal will charge you $35 per month. But PayPal is still a very much user-friendly payment gateway service to use in WooCommerce, and they have other plugins to integrate such as PayPal Express Checkout.
Square is another big name after PayPal in the online credit card processing and payment. Square accepts all known credit cards. It also has a quick deposit option like PayPal. If you have a physical store beside the online store, Square has a solution for it as well. Square offers Physical Points of Sales (POS) which lets you have the same service for your both online and offline store.
Square offers key features like transaction fees, POS systems, and checkout options unlike most other payment gateways for WordPress site. When you use Square, you don’t have to pay any monthly fee.
You will only need to pay $0.30 per transaction. Also, you will have to pay 2.9% per sale you made.
You can buy a square register or an iPad friendly terminal. Prices start from $199 to $799, and you have the option to purchase monthly plans.
WooSquare plugin is free to download, and you can buy the premium version for $69. The difference between the free and premium versions is in the synchronization option. The free version has a manual synchronization option, whereas the paid version has the automated synchronization option.
3. Amazon Pay
Amazon is the biggest online retail store in the market. Amazon is like a monopoly in the online retail industry. It also has a payment gateway feature named Amazon Pay. When you use Amazon Pay, your customers will be able to use their existing Amazon account and pay with their payment settings. This option lets the users use only one account while paying for your product because the customers will not have to open an account to buy the product. The customers feel safer when they don’t have to use multiple accounts to purchase products.
Amazon charges the same as the Square does, which is 2.9% per sale and $0.30 per transaction. But unfortunately, Amazon Pay doesn’t have a POS system yet.
However, Amazon Pay is not a good option for low-profit e-commerce websites or online stores.
Stripe is a great payment gateway service if you have international customers. It allows you to receive payments from 26 different countries. It supports Visa, American Express, MasterCard, JCB, Sofort, Discover, Diners Club, SEPA, Alipay, iDeal, Giropay, etc. If we ask me what is the closest competition for PayPal, then Stripe will be my answer.
Stripe offers a subscription and metered billing option, which PayPal doesn’t. If you provide digital services to your customer, Stripe is the perfect plugin for you. It also has the feature of storing your customer’s data. With this option, you can analyze the data and build a solid marketing strategy to grow your business.