In order to build up an e-commerce website, you need both a shopping cart and a payment gateway that have the functionality you are looking for. A payment gateway is essential for online transactions and is a crucial part of e-business. Choosing the right payment gateway is one of the most critical factors in e-commerce success. PayPal, Stripe, Authorize.net… which payment gateway is your choice? I will discuss the pros and cons of the 5 most popular payment gateways in this blog.
1. PayPal
Image Credit: PayPal
PayPal – the most reputable and trustworthy payment gateway, is highly recognized among e-business professionals and non-professionals. Web payments, Mobile payments, Business on eBay, and Online invoicing are the main products powered by PayPal.
Pros:
Doesn’t require a PayPal account. You can log in directly using your email.
Accepts a variety of online payment methods: Credit Cards, PayPal, and Debit Cards
Doesn’t require a merchant account
No SSL Certificate required
Available in more than 190 countries.
Supports the operation of WordPress e-commerce websites with some WooCommerce plugins: PayPal Pro, PayPal Express, PayPal Digital Goods Gateway, PayPal Advanced
No monthly fee. Reasonable transaction rate: PayPal is 1.9% – 2.9% plus 30 cents per transaction, and 3.9% transaction fee plus a fixed fee for international sales. They also offer discounts as volume increases.
Registered non-profits and charities can get a special low rate of 1.4% + 20p
Cons
The payment doesn’t go into your back account directly, you have to go to Paypal to get it by paying service charges
Steeper individual transaction fees are a problem for large volume businesses
What do you think? Install it on your WordPress site, and don’t forget to give us your review.
2. Stripe
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Stripe is the hottest new payment processor in the e-commerce sector. Are you building a marketplace, mobile app, or subscription service? Stripe has all the features that you will ever need.
Pros
No monthly fees, no extra charges for different cards and different payment methods, or even for different currencies
Stripe also offers a great API
Doesn’t require PCI Compliance for recurring payment purposes
Doesn’t require a separate merchant account
Relatively low transaction rate: 2.9% plus 30 cents flat rate for transactions. Stripe also offers discounts as the volume goes up
Cons
Requires an SSL certificate
Doesn’t support Mobile Payment, which may lose a certain number of users in the mobile shopping market
Available for business owners in the US, Canada, UK, Belgium, France, Ireland and The Netherlands only
Stripe keeps expanding, and it is predicted that Stripe will keep breaking new records on their newly targeted markets. In general, Stripe is an excellent payment gateway that you can trust.
3. Authorize.net
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Authorize.net is among the most powerful and well-known payment gateways. Authorize offers custom payment forms that reside on their server, and this feature is well-supported by e-commerce WordPress plugins.
Pros
Supports on-form payments, recurring billing, and mobile payment
Allows you to take payment directly through the Authorize.net site.
Compliant with PCI security requirements. Therefore, it’s easy to obtain an SSL certificate
Preconfigured “buy” buttons and “donate” buttons
Solutions available for every type of online storefront.
Cons
Set up fees and Gateway fees are relatively high: $99 for setup and $20 for monthly gateway
Country limited access. To process international payments, your business must be domiciled in the US, Canada, Australia, UK, or Europe
Requires a merchant account
Doesn’t offer volume discounts
Overall, Authorize is a good solution to provide everything you need to automate, manage and process credit card payments.
4. 2CheckOut
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2CheckOut – with hosted checkout and API options, accepts online payments all over the world. 2CheckOut helps you expand your business by offering a global reach, local familiarity, superior fraud protection, and simple implementation.
Pros
Accept a variety of online payment methods: Credit Cards, PayPal, and Debit Cards
Provides a service for downloadable products and recurring billing
Supports Mobile Payment
Doesn’t require a separate merchant account
Present in over 200 countries
No monthly fees or hidden fees
Cons
Transaction fee is relatively high for any country outside of the US: at 5.5% per transaction, plus 45¢ per transaction fee
Doesn’t offer volume discounts
No hosted checkout page
2checkout is one of the most simple and affordable credit card gateways. Check out their global payments with a localized buying experience to understand how it helps you maximize online sales.
5. Intuit
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Intuit offers everything a merchant needs to set up a payment gateway and conduct business online. It is a reasonable solution for items with a moderate volume of sales.
Pros
Low set up fees and fair transaction fees
Easy integration with website
Integrates with QuickBooks through QuickBooks Payments. Intuit QuickBooks Payments accept payments anywhere with mobile credit card processing.
No monthly fee. Transaction fees: 2.40% + $0.25 per swiped transaction 3.40% + $0.25 per keyed transaction
Cons
Users without other Intuit software such as QuickBooks will miss out on some useful features
Slow International Expansion: Present in only few countries across the Americas, Asia Pacific and Europe; just 5% of its overall revenue comes from outside the U.S
With a reputation for client support, a reasonable fee structure and integration with QuickBooks accounting software, Intuit Merchant Services provides an excellent payment gateway for online businesses. For the small-to-medium business entering the e-commerce arena, Intuit has what you need to process credit cards online.
Conclusion
PayPal, Intuit, Stripe, 2CheckOut and Authorize all have their own pros and cons, and all are great options for online payment gateways. Depending on your business field, size, and location, select the most suitable one for your e-commerce website. Don’t forget to stay in touch with us for more blogs in the future, and share with us how you feel about using these gateways by leaving your thoughts below. Thank you!
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