Choosing the right payment gateway isn’t just a nice-to-have; it’s essential for any e-commerce business. In 2023, with a whopping 2.64 billion people shopping online, having a top-notch payment system could turn your site into a sales powerhouse. But what exactly is a payment gateway, and which one is the best for e-commerce sites this year?
Stay tuned as we simplify everything you need to know to pick the best payment gateway for ecommerce business.
What Is a Payment Gateway?
A payment gateway is a technology that checks and safely sends payment information between the different groups involved in a payment.
A payment gateway also includes security features like encryption, tokenization, and tools to manage fraud. Additionally, gateways must stick to strict rules under the PCI DSS compliance standard. This involves yearly checks and updates to make sure they continue to meet these rules.
Examples of Payment Gateways
There are various payment gateways available for merchants. Take a look below at the examples of popular payment gateway providers that you might recognize:
What Is a Payment Gateway in Ecommerce?
An e-commerce payment gateway is a crucial tool that allows online businesses to accept and handle payments. When processing these transactions, merchants generally require two main components: a payment gateway and a merchant account. Some companies, like PayPal and Stripe, simplify this by offering both-in-one services, known as payment service providers or payment processors.
While popular e-commerce platforms like Amazon, Walmart, eBay, Shopify, and Etsy come with their own built-in payment systems, integrating an additional payment gateway can still provide significant benefits. This is especially true if you sell internationally, as a dedicated payment gateway can help manage payments from different countries and in various currencies, ensuring smoother transactions beyond what is typically required with just a business bank account.
Quick Glance into the Top 10 Payment Gateways for Ecommerce
Before we go into the details of each payment gateway, first get yourself introduced to some of the best payment gateways for ecommerce businesses that are currently offering the best deal for merchants, at the same time keeping the buyers’ spirits high.
Paypal
PayPal is a well-known and trusted choice for online transactions. It’s very easy to set up, which makes it ideal for small businesses and start-ups. Because many people recognize and trust PayPal, it can make your customers feel more confident when buying from you. Additionally, PayPal works in over 200 countries and regions and supports 25 currencies, making it a great global option for businesses that need an international payment gateway.
Braintree
Even though PayPal owns Braintree, they work differently. Braintree gives you personal merchant accounts that let you handle transactions. Covering more than 45 countries and regions, it’s a great choice for businesses looking for an international payment gateway.
Adyen
Adyen offers a global payment processing solution that supports over 30 different currencies worldwide, making it ideal for businesses that want to grow into new areas. This international online payment gateway lets you accept many payment methods, providing your customers with the shopping experience they expect online.
Stripe
Unlike many other international payment gateway providers, Stripe offers a variety of APIs for its payment gateways. This gives you complete control and makes it easy to add the payment gateway to your online store. Also, Stripe lets you accept payments in over 135 currencies and provides strong support for local payment methods.
2Checkout
2Checkout lets you take payments from over 200 different markets, making it a good option for European businesses that want an international payment gateway. Also, 2Checkout doesn’t charge monthly fees, so it might be a cheaper choice compared to some of the bigger companies.
Worldpay
Worldpay is a payment processor that allows you to accept credit card payments directly from your app or website. It’s a popular payment gateway in the US and works with over 120 currencies, making it simple to accept payments from customers worldwide. However, Worldpay often requires long-term contracts and might charge fees if you end your contract early.
Sage Pay
Sage Pay offers two levels of service: one for small-to-medium size firms called ‘Business’ and another for larger firms called ‘Corporate.’ It’s known as one of the top international payment gateways and can handle transactions in more than 25 different currencies. Sage Pay also lets you accept payments from all the major credit and debit card companies.
Amazon Pay
Even though Amazon Pay is quite new to the payment scene, it’s an excellent option for anyone who needs an international payment gateway that’s easy to use and doesn’t charge a lot of fees. It also supports many different currencies, making it a great choice for businesses wanting to grow internationally.
Google Pay
Taking speed and ease of access into account, this may be the payment gateway you want to incorporate into your eCommerce platform. Customers are given the option to make their purchase with just one click, thus, reducing cart abandonment to a significant level.
Square
There is no monthly fee for integrating the Square payment gateway into your website. They charge you 2.9% + $0.30 per transaction, just like Stripe and PayPal. If you want to run a business in-store besides your online e-commerce site, then there’s something to look for in the Square payment gateway.
Best Payment Gateway for High-Risk Business
A business—whether physical or online— can be categorized as high-risk at any time. High-risk businesses need powerfully built solutions for their high-risk merchant accounts to handle payments securely and efficiently. Here’s a look at the best payment gateways for such businesses:
Authorize.net
Founded in 1996, and known for its strong support for high-risk merchant accounts, Authorize.net provides reliable and secure payment processing services. It offers advanced fraud protection services that help secure sensitive information, making it a reliable choice for businesses involved in high-value transactions or operating in industries considered risky. However, it’s important to note that Authorize.net only supports businesses in the US, Canada, UK, Australia, and Europe to accept payments from other countries, which may limit its suitability compared to other gateways on the list.
NMI (Network Merchants Inc.)
NMI offers great flexibility and control for high-risk merchant accounts, supporting a wide variety of payment methods. It features a customizable gateway that can adapt to the specific needs of high-risk businesses, ensuring that they can manage their transactions smoothly and securely.
At Business Globalizer, we specialize in providing high-risk merchant account solutions tailored to your business needs, ensuring secure and efficient payment processing. Partner with us to navigate the complexities of high-risk transactions with ease and confidence.
How to Choose a Payment Gateway for Your Ecommerce Business
There are many benefits to using different payment gateways and their APIs. So, how do you pick the right one? You should consider several things when choosing an e-commerce payment gateway. Consider your budget, the number of countries and currencies you need to cover, setup/service/monthly fees, and fraud protection.
When selecting the best option, consider several key factors:
- How much are you prepared to spend?
- How soon do you need to begin accepting payments?
- How soon you should start receiving funds?
- How much customer support are you likely to need?
Another important consideration is whether the payment gateways will work well with your existing accounting systems. This will play a big role in your decision.
The best choice will be the one that meets your specific business needs. However, keep in mind that you don’t have to limit yourself to just one payment method. Offering several payment options can be advantageous as it meets the diverse preferences of your customers.
A Short Tip to Best Payment Gateway for Ecommerce Website
There are a lot of e-commerce payment providers available, and it can be hard to decide which one is the best for your business. Here’s a short tip on selecting the best payment gateway for your e-commerce website:
- PayPal: Widely recognized and trusted, PayPal facilitates easy, secure payments and is preferred by customers globally, enhancing the customer experience with its simplicity and reliability.
- Stripe: Ideal for seamless integration, Stripe offers robust features that are perfect for e-commerce websites, making it easy to handle transactions smoothly and securely.
- Authorize.Net: A reliable option for high-risk merchant accounts, Authorize.Net provides specialized solutions that cater to businesses facing higher security and transaction risks.
- NMI: Also great for high-risk accounts, NMI offers flexible solutions that support diverse payment methods and complex billing needs.
Choosing the right gateway depends on your specific needs, such as integration capabilities, risk management, and customer preferences.
How Can Business Globalizer Help?
Business Globalizer, as a leading authorized agent in company formation—whether in the US, UK, or UAE—and a provider of payment gateways and high-risk merchant account solutions, is dedicated to supporting e-commerce growth.
We specialize in securing popular marketplace (Amazon, Walmart, Shopify, eBay, Etsy, etc.) account approvals and ensuring compliance with necessary regulations. If you’re facing challenges in these areas, consider booking a premium consulting with us. Together, we’ll tackle your issues and develop a comprehensive solution to meet your business needs effectively. Whether you’re starting new or looking to expand, Business Globalizer has the expertise to help you succeed.
Let us add a note here: we provide comprehensive services for e-commerce businesses in the US, ensuring you have all the support needed to thrive in this competitive market.
FAQ
Q1: What Is a Payment Gateway?
Answer: A payment gateway is a technology that securely transmits payment information between customers, merchants, and banks. It includes security measures like encryption and fraud management tools and complies with PCI DSS standards to ensure safe transactions.
Q2: When Would a Payment Gateway Be Needed to Accept Payments?
Answer: Payment gateways are essential whenever you need to securely process online or in-store transactions. They handle collecting customer payment information and safely transmitting it for verification and authorization.
Q3: Why Is Choosing the Right Payment Gateway Important for My E-Commerce Business?
Answer: Selecting the right payment gateway is important because it ensures secure, efficient payment processing, which can improve customer trust and satisfaction. It also supports your business’s ability to scale internationally by handling multiple currencies and payment methods.
Q4: Can I Use Multiple Payment Gateways for My E-Commerce Store?
Answer: Yes, using multiple payment gateways can be beneficial as it allows you to cater to different customer preferences and backup systems in case you encounter issues. It also helps in handling international transactions more smoothly.
Q5: What Should I Consider When Choosing a Payment Gateway?
Answer: Consider factors such as transaction fees, setup costs, payment methods supported, integration ease, security features, and whether the gateway supports the currencies and regions where your customers are located.
Q6: How Do Payment Gateways Integrate with E-Commerce Platforms?
Answer: Payment gateways can integrate with e-commerce platforms through APIs that allow seamless data transfer and functionality within the platform, ensuring that customers can make secure payments without leaving the website.
Q7: What Are the Benefits of Using PayPal as a Payment Gateway?
Answer: PayPal is widely recognized and trusted, easy to set up, and supports transactions in over 200 countries and 25 currencies. It enhances customer confidence due to its reputation and provides a straightforward payment process.
Q8: How Does Stripe Differ from Other Payment Gateways?
Answer: Stripe stands out due to its extensive API offerings, which allow for full customization and control over the payment process. It supports over 135 currencies and numerous local payment methods, making it ideal for global e-commerce operations.
Q9: What Are High-Risk Merchant Accounts, And Why Might I Need One?
Answer: High-risk merchant accounts are specialized solutions for businesses that operate in industries considered prone to higher levels of financial risk and chargebacks. You might need one if your industry has higher transaction values, legal complexities, or a historical prevalence of chargebacks.
Q10: How Can Business Globalizer Assist With My Payment Gateway Needs?
Answer: Business Globalizer can help with securing merchant accounts, ensuring compliance with regulations, and setting up payment gateways tailored to your business needs. We offer premium consulting to tackle any challenges you might face in setting up or managing your e-commerce payments.
Final Words
In conclusion, choosing the right payment gateway is quite important for the success of your e-commerce business. With so many options available, it’s important to pick one that aligns with your specific needs, from transaction security to international sales capabilities and other advantages. Don’t hesitate to explore different gateways to find the best fit for your store.
And remember, if you’re ever in doubt or need guidance on navigating e-commerce challenges, Business Globalizer is here to help. Reach out for a consultation, and let’s pave the way for your business to flourish in the digital marketplace.
