What Is A WooCommerce Payment Gateway?
Basically, WooCommerce's payment gateways are plugins or other software solutions that are responsible for securing money transactions from a client's bank account or credit card (Visa, Mastercard, and Amex) to the vendor's bank account. It makes online payments on e-commerce WordPress-based websites effortless and secure. Thus, you can sell your services or products on online platforms, enabling quick transactions for customers.
How WooСommerce Payment Gateways Work
Paying online seems straightforward for the customer, yet behind each transaction stands a relatively complicated process involving near-instant authorization and approval processes. But how exactly do WooCommerce payment gateways operate behind the scenes to process transactions? Grasping this fundamental process will establish a foundation before delving into how to choose, integrate, and leverage the optimal payment gateway for your WooCommerce site. So, let’s highlight the main stages of WooCommerce gateways payment process step-by-step:
- Placement of the order. The first stage is when a customer has selected the goods they wish to purchase within the online store. They place an order and click on the Pay button.
- Checkout stage. Next, the customer will enter the payment info in the pop-up window of the gateway. Alternatively, if the website uses a redirected payment gateway for WooCommerce, the process is performed within a new page.
- Authorization. Since this stage, all the subsequent actions happen within a few seconds, so the customer will not wait too long. After all the payment information is entered, it is sent to the payment processor. The processor contacts the bank or the card issuer to confirm that the payment is possible.
- Approval. In case the bank verifies the payment, the payment processor notifies the gateway, which sends the information to the online store.
- Confirmation. After authorization and approval of the transaction, the merchant sends a "Payment received" message to the customer through payment gateways for WooCommerce.
- Settlement. Afterward, the payment processor requests a debiting of the declared sum from the customer’s card. Receiving money takes a few days for the merchant, while for the customer, the payment will settle within a few seconds.
The final stage is reconciliation. Here, the seller will reconcile the payment with the order to make sure it matches 100%.
How To Choose The Best Payment Gateway For WooCommerce
When it comes to the selection of WooCommerce payment plugins, you need to consider several essential facets. In particular, pay attention to fees, available methods for transactions, security measures, and more. Let's discuss all aspects below.
WooCommerce Compatibility
Before selecting the digital payment solution, you need to check out plugin compatibility. If the chosen gateway is ill-fitting, it could result in payment issues, loss of sales, or poor user experience.
Free Vs. Paid Extensions
As a rule, WooCommerce's free payment gateways can offer a certain list of services. For example, a trial period may help you to understand the principle of operation, the possible volume of transaction processing, etc. However, some plugin features are paid. Therefore, look at the functions that you get for free and inspect the services you will have to pay a monthly fee for.
Payment Gateway Type
Before choosing the best payment gateway for WooCommerce, you should stick with the suitable type. In particular, you can select on-site, off-site, and redirected payments. With on-site payments, the checkout and transactions happen within the merchant’s website.
Off-site payments still offer the customer the ability to pay on the same website where the purchase was made. Yet, the actual payment happens on the gateway provider's website. The last gateway type for customers means to be redirected to the solution provider's website. It is the cheapest option, but redirections might be confusing for some customers, so the checkout abandoned rate can be higher.
Customer Location
Of course, you need to ensure the chosen transaction gateway is available in your region and the countries where your clients live. Namely, if most of your customers are located in Europe, you should provide transaction methods that are prominent in that territory. Therefore, we advise checking the information about supported countries on each payment gateway platform.
Supported Payment Methods
If you want your WooCommerce store to be convenient for numerous customers, ensure the plugin supports countless top-rated payment methods. In particular, the WordPress website should accept debit and credit cards, as well as virtual wallets like Apple Pay and PayPal.
Furthermore, a plethora of customers want to pay in cryptocurrency, so don't miss out on providing this option. In case of the absence of popular payment options, customers may abandon the purchase.
Ease Of Use
Keep in mind that the best WooCommerce payment gateway must be convenient for customers and your use. Initially, check that the virtual store's dashboard is understandable. You need to manage an overview of payments and refunds without technical difficulties. Finally, you may go through the payment process on your WordPress-based website as a client to ensure the transaction process is effortless and does not take a long time.
Transaction Fees
Even the best payment gateways for WooCommerce include different charges. For instance, some software services may include monthly fees, transaction commissions, and setup and chargeback fees.
Some gateway providers may offer rates for each transaction, while other companies furnish monthly prices. We recommend checking potential losses as they can decrease your earnings. The payment gateway of your choice must provide flexible pricing plans according to your online business size and needs.
Security, Fraud Prevention And Encryption
It goes without saying that payment gateways for WooCommerce online stores should be secure and reliably protected by modern encryption methods. You should check the list of safety measures that are offered by the chosen provider, like SSL protocols, KYC/KYB checks, etc.
Failing to prioritize security and encryption leads to vulnerabilities that put customer payment information at risk and expose businesses to data breaches, which can destroy consumer trust and cause major financial and reputational damage. Investing in a payment gateway with state-of-the-art encryption, proactive fraud monitoring, and airtight security protocols should be a top priority to keep customer data locked down.
Customer Service And Reputation
Lastly, you should check the customer service work. You, as a client, may have additional questions about WooCommerce payment gateways operation or integration, and you require contacts for communication with technical consultants. The finest payment provider must offer round-the-clock support via live chat.
Moreover, do not overlook reading clients' true reviews of the selected company. Thus, you may realize the pros and cons of each financial solution for WordPress-powered platforms.
Best Payment Gateways For WooCommerce To Pay Attention To
Now that we have settled down all the technical details of the WooCommerce payment gateways, we can go to a comprehensive market analysis. Here, you can familiarize yourself with the top-rated companies and their proposals.
WooCommerce Payments
Monthly and annual fees:
- 2.9% + $0.30 per transaction for U.S.-issued cards
- an additional 1% fee for cards issued outside the United States
WooCommerce Payments is also an excellent solution for online businesses based on WordPress platforms. This WooCommerce payment gateway plugin is available in over 38 countries, but you can accept payments from over 100 regions. WooCommerce Payments offers a great customer experience and an intuitive checkout process. However, please pay attention to the fees because commissions for cardholders outside the US are slightly increased.
Stripe
Monthly and annual fees: No fees
Payment processing fee: 2.9% + $0.30 per successful transaction
Having started its history in the US market, Stripe now covers over 25 countries. The name Stripe is commonly referred to as the most suitable WooCommerce payment gateway for small businesses, given it does not charge monthly or set-up fees and cooperates with companies without a minimum monthly revenue.
One of the most prominent features of Stripe's payment processor remains Radar. It is a machine-learning fraud system that is capable of adapting to one's business needs. However, in terms of merchants' dashboard navigation and interface convenience, Stripe is far behind its competitors.
Apple Pay
Monthly and annual fees: No fees
Payment processing fee: 1.5% + $0.25 to $15 per transaction
Apple Pay is among the most widespread WooCommerce payment gateways worldwide. Apple Pay covers nearly 170 countries and is available in most US merchants. Probably the biggest advantage of Apple Pay is the security protocol.
Given that Apple doesn't store and has no access to the details of credit, debit, or prepaid cards, many customers consider it a safe way to pay. Finally, the checkout stage is one of the simplest so far, as the customer does not need to enter any payment information.
Square
Monthly or annual fees: 2.9% + 30¢ per transaction
This company offers WooCommerce payment gateways for online stores with delivery, physical locations, and numerous selling options. Square operates in the UK, the US, Canada, Japan, and Australia. Commonly, Square solutions are popular among over 200 worldwide companies.
The WooCommerce Square Extension easily integrates with the website and supports top-rated digital wallets such as Apple Pay and Google Pay. Besides, the gateway supports over 6 currencies, including American dollar, euro, yen, etc. This plugin may save various cards and label them to select them quickly for future purchases.
PayPal
Monthly or annual fees:
- 2.9% per online transaction, with an extra 1.5% for international transactions
- $30 per month for the PayPal Pro program
PayPal is an international company with over 430 million accounts. For WordPress-powered websites, the payment provider offers a plugin within WooCommerce named PayPal Pro. Customers can easily make a purchase from your store now and pay for the purchase later. However, the funds will be credited to your account immediately. This possibility is available thanks to the extension of the plugin called PayPal Pay Later.
You can set up your PayPal as a WooCommerce payment gateway easily in just 10 minutes and enable your customers to pay with credit/debit cards, bank transfers, and mobile payments. Still, international transactions may include additional charges.
Amazon Pay
Monthly or annual fees:
- No monthly costs
- Transaction fees are 2.9% plus an authorization fee of $0.30
One of the forward-looking WooCommerce payment gateways is Amazon Pay. If your business runs on Amazon, you can be sure of this plugin's convenience for your customers. Buyers do not need to create new accounts or re-enter shipping and payment information.
The Amazon Pay plugin offers a transparent pricing model for business owners and has automatic updates for increased performance and security. However, this solution is suitable for stores serving a large Amazon customer base.
Authorize.Net
Monthly fees: $25
Payment processing fee: 2.9% + 30¢ per transaction
Authorize.net started operation in 1996, offering effective payment solutions for online stores, including WooCommerce ones. Nowadays, the company has over 430,000 merchants and 1 billion transactions annually.
Being one of the oldest WooCommerce payment gateways, it accepts bank cards, eChecks, and online wallets. This solution offers reliable security methods, including PCI compliance and an advanced level of fraud protection. You can set up this gateway according to your business scale and needs.
Final Thoughts
WooCommerce payment gateways are an integral part of any online business based on WordPress platforms. An optimal payment solution will allow your customers to pay for goods or services quickly and easily directly on the website. Thus, you will decrease the abandoned carts' percentage on your WordPress-based site and can substantially develop your activity globally.
Focus on providers that align with your business' target audience, required features, and growth goals. Test options thoroughly before launch to ensure a smooth customer checkout experience. With an optimized gateway that fits your ecommerce objectives, your WooCommerce store can offer the flexibility and convenience buyers demand while you reap the rewards of greater sales and expanded revenue streams.
