Best Shopify Payment Gateway

The Best Shopify Payment Gateways

One of the most important aspects of online retail stores is payment gateways. They make it possible for business transactions and are the primary way through which your customer’s funds will get to you. What are the best Shopify payment gateways you will ask?

There are literally hundreds of payment gateways for you to choose from each coming with its own set of pros and cons. But no worries, after reading this article it will give you a good idea what your options are.

What will be covered on this article?
  • What to consider when choosing the best payment gateway
  • Difference between the payment gateway and merchant account
  • The best Shopify payment gateways

So, how do you select the best Shopify payment gateway?

Well, that’s what we are here to discuss!

What to consider when choosing the best payment gateway

There are a couple of features to look out for when choosing a payment gateway:

  • Security features
    • Prevention of fraud is important as you want a smooth and transparent flow of cash from the customer and sometimes vice versa. One of the best is 3D secure natively. Shopify may not support this, however, but there are still other ways to benefit from it like having a hosted solution.
  • Type of Cards
    • It’s important to always be aware of the type of cards that are compatible with your chosen payment gateway. Most will definitely accept American Express and almost all will accept VISA and MasterCard.
  • Checkout
    • By this we mean which server the payment will be processed on. Some Shopify payment gateways will process the payments on their own servers. An example is Worldpay.

Other important considerations include…

Costs

This is certainly something that cannot be overlooked and is the first thing that you should consider. The cost of running the Shopify payment gateway has a significant impact on your income.

You can choose between one that charges a monthly fee with no charges on the transactions or one that charges a small fee for every transaction and yet has no monthly fee.

My advice to you!

Go for one that takes the least amount of your profits especially if you are only just starting up.

How long does it take to set up?

 

Shopify payment gateways take varying amounts of time to set up. Consider PayPal for example, you can get it set up in just a few minutes. Sage Pay, on the other hand, will take a few weeks.

Obviously, the best Shopify payment gateways will be simple to set up and take only a short time.

Is there a difference between a payment gateway and a merchant account? 

 

The short and simple answer is yes, there is a difference. It’s important to note that you will need both the payment gateway and a merchant account to be able to receive funds online.

In order to make transactions using a credit card, whether it is in-store or via an online platform such as Shopify, there has to be communication with the card company of the customer. When it is an in-store situation, the main point of transaction is through a card reader machine.

However, when it’s an online transaction, that is where the payment gateway comes in.

But what about the merchant account?

Well, once the customer pays you for a product, the money is held in your merchant account. This is like an online bank account that holds the money for a few days before it is sent to your actual bank account. This means that the payment gateway and the merchant account work together.

Some payment gateways such as a PayPal, however, come with their own merchant accounts. This explains why they charge higher fees. The upside is that they are that much simpler to sign up for.

So, which are the best Shopify payment gateways to look out for?

Like we mentioned above, you have hundreds of options to at your disposal.

Here is a list of the most popular and why they are among the best.

A list of the Best Shopify Payment Gateways for your e-commerce store.Click To Tweet

Shopify Payments powered Stripe

Its seems befitting to look at the Shopify’s own payment gateway the Shopify payments powered stripe. And it definitely pays to make use of it.

While using the Shopify website, each transaction carries a 2.2% fee. By using the Shopify payments powered stripe, this fee is removed.

Another great benefit is that it is quick and easy to set up only requiring you to fill out a form.

The cash will get to you after 3 business days and when you need to take physical money, Shopify has you covered with a free card reader.

So this is what we are saying…

With the Shopify Payments powered Stripe you are getting;

  • Easy setup process
  • No more transaction fees
  • Ability to manage transactions within the Shopify website
  • Fees involved in operating a payment gateway

Off to the next best!

PayPal

Okay…let’s just be real here. There is no talking about the best Shopify payment gateways without mentioning PayPal.

After all, it did just grow bigger and faster than its parent company and is now its own individual entity.

The great thing about PayPal is that it is quick to set up. You also enjoy good customer support in case you hit a snag.

On the downside, the fees are 3.4% on all the transactions so this means that PayPal will take a bigger chunk of your profits. However, you are getting:

  • Easy and quick set up
  • A great support system in case of any problems

Sage Pay

Yet another one of the best Shopify payment gateways that cannot be ignored. Here you have the added benefit of allowing your customers to use PayPal.

The main drawback of using Sage Pay is the length of time it takes to set up. However, you do get a variety of packages some of which are tailored to your specific requirements.

The main point includes:

  • Different packages suited to your specific situation

Worldpay

What makes Worldpay among the best Shopify payment gateways is the reach. In fact, it comes second to PayPal as far as global reach is concerned.

And that is not all. You have the option of choosing between paying a small monthly fee and paying a fee for every transaction. Needless to say, you will pick one that is the most convenient for your Shopify store.

In a nutshell:

  • A large customer reach
  • The option of either a monthly fee or a transaction fee

Amazon Pay

When you use Amazon pay, the transaction process is simplified since the customer details are already available on the Amazon accounts. Currencies supported include the EUR, USD, GBP, and JPY.

You’ll get:

  • Simple processing of transactions
  • Supports some of the main currencies
Fees

We seem to always be coming back to this point. But that is simply because it is wide and diverse and understanding this point in detail is crucial.

When you use 3rd party payment gateways on your Shopify store, you can expect 3 main ways through which you will be billed.

The first is through the transaction fees which we pointed out earlier. When a customer sends you money the payment gateway will take a small percentage of it. This is different from one payment gateway to the next so you will have to carefully go through the terms of your choice best Shopify payment gateway.

There is also the monthly fee. Some payment gateways that will charge you a specific rate each month. This may change and may be based on the number or the number of transactions.

And then there are the set-up costs. This comprises of the charges you will incur when setting up the payment gateway. The good news is, these are a one time fee.

Wrapping it up

The best Shopify payment gateways will need to take into account your individual situation.

However, those that we have listed above are an excellent choice for your store. They are also a few of the many options available to you. Time and ease of setup together with the transaction fee are highly important considerations.

Which one are you using? Share with me in the comments below.

The Best Shopify Payment Gateways
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