If you own a small business and want to reach more people using an e-commerce platform, then Shopify is your best bet. It’s a globally acknowledged online marketplace that basically allows you to create a virtual store to sell your products. Currently, this famous setup for entrepreneurs is powering more than 500000 businesses. It promises customization, security, and comparatively faster growth than any other e-commerce website.
On top of that, a flock of 220 million users in over 175 countries around the globe earns acceptance for it. Since the active users of Shopify are growing rapidly, the demand for a suitable payment gateway to offer more flexibility to the customer is intensifying as we speak.
Don’t get me wrong, Shopify has a payment gateway of its own. Yet, people like you feel the urge to set up a different gateway for the shoppers. Having a payment method that includes multiple payment gateways could give you an advantage over others. Smart and successful Shopify store owners follow this creed to a tee. It enables merchants to offer purchases more efficiently, resulting in fortune by boosting sales.
However, these gateways differ from each other in terms of pricing policies and accessibility in certain countries. Having said that, a close examination is required before setting up any payment gateway to your Shopify site. The purpose of this write-up is to guide you in picking the best payment gateways that should suit your Shopify-grounded business. Grab a hot mug of coffee and let’s dive into the details with me to find out some of the best alternatives for your Shopify marketplace.
What’s on Offer with Shopify Payment Gateway?
As I said, Shopify has a built-in payment gateway that’s been operated by them. For most Shopify merchants, this payment gateway does the trick of accepting payments from their customers. Yet, you may consider yourself unlucky if you wish to accept payments to the US using Shopify.
Unfortunately, Shopify’s gateway isn’t available in the US territory, except for Puerto Rico. This is why people living in the US often look for alternatives. Shopify has more than 100 other payment gateway alternatives in its hold so that you can still get the best out of this marketplace in case your country doesn’t permit you the default one.
Don’t worry. We’ll talk about the best alternatives as the article proceeds.
For now, let’s come back to the basics of this payment gateway, as it still has something to offer because you can work with it in most European countries. You’d be glad to know that it has accessibility within more than 15 European countries as well as the United Kingdom. This dedicated Shopify payment gateway doesn’t require any additional integration. With just a few steps, you can make your online store ready to accept payments from your clients. Since it’s Shopify’s own initiative, you also don’t need any merchant account. It promises to provide a fair service with its customer and merchant-friendly features.
You can manage your payments, orders, and checkouts online with this. It also has an advanced built-in risk tool which makes the payment gateway unique from others. This kit examines potential high-risk orders and makes the merchant aware of the risk. People get the option to review potentially fraudulent orders to avoid additional chargebacks. This feature works with the kinds of credit card orders where Shopify can verify the payments.
However, it doesn’t stop or abandon the payments. Instead, it leaves you with a recommendation not to proceed further with the order. If you still go for the order and get caught in the act, the best Shopify can do is provide the necessary documents to get your funds back from the card company.
Technically, the Shopify payment gateway is free of cost. Shopify charges 2.2% for each transaction you make using their platform. This is why they don’t add any additional fees after their payment gateway. Yet, this transaction price varies depending on the Shopify plan you are on. There are three plans to be taken for the Shopify merchant users. The Basic plan costs 2.2% + 20p for any card transition. You can cut your transaction fees by subscribing to the other two plans. The Standard Plan offers 1.9% + 20p for each transaction, whereas the Advanced Shopify costs 1.6% + 20p. Setting up this payment gateway is not a tough job.
You can simply choose this from the page set’s Payment Providers option. However, you need to assist with some online copies of your documents. They include Employer Identification Number (EIN) and banking information. The last thing you should know and feel happy about this payment gateway is that it allows card readers to accept payments from brick-and-mortar outlets of your business. It’s a privilege to have a payment solution that covers both online and offline.
What Are Top Shopify Payment Gateway Alternatives?
I understand if Shopify throws people into a pickle. Even if it has its own payment gateway, this might not be everyone’s cuppa. That’s why we’re here. At this point of the article, we’ll be exploring some alternative payment gateway systems people need to consider.
PayPal – The Obvious Choice!
Whenever you talk about a third-party payment solution, PayPal beats its competitors with a clean sheet. The pioneer of the online payment system started its operation back in 1998. PayPal started its journey with a promise to ensure the fastest and safest payment gateway for e-commerce sectors. After more than 20 years, PayPal has now expanded its network to more than 200 countries. PayPal is believed to be the most popular payment gateway in the USA. Of its long service in the country, it has developed a great bond with several generations that have faith in it.
There are more than 365 million active PayPal users and 20 million merchant accounts knotted to PayPal. This reputed financial service provider is known for its easy customization feature. It allows you to set up the payment gateway according to your Shopify store themes and tone. The easy API system makes anyone eligible to modify the appearance of the gateway into their website. PayPal performs billion-dollar transactions each month. Hence, the counterfeiters always look for an opportunity to slide through the accounts to grab some money.
That’s why, to protect the customer as well as the merchants, PayPal has cutting-edge fraud protection installed in the payment gateway. All the information that routes within the involved parties of a transaction is encrypted with utmost security. No fraudulence attempt triumphs over them, trust me. PayPal is sensitive to top-class security as well as other fundamental services. Their payment gateway includes 24/7 customer care with live chat or call extensive cart compatibility, and online invoicing. Besides, as a merchant, you’ll get a mobile app to go through your payment history and reports, assisting your Shopify business. PayPal comes in two different pricing structures.
You’ll be charged 3.4% + 20p per transaction if your total transaction volume doesn’t reach £1,500 per month. On the other hand, it’ll cost about 1.9% + 20p per transaction for your Shopify store if you can keep the sale volume above £1,500. There are no setup or monthly fees for PayPal. The setup and activation process is faster than any other payment gateways around. To start accepting payments, you need to add your merchant account number to the gateway. PayPal is a handy pick if you aim to do business overseas. If your Shopify stores sell internationally, then they need a payment gateway that can accept currencies other than USD. PayPal offers more than 100 currencies in acceptance and the conversion rate is also affordable.
Stripe – The Second-Best Option
Stripe has acquired acknowledgment so rapidly in the West. The trusted users of Stripe mainly reside in the US and European countries. The main reason for its growing popularity is Stripe Authority has modified and adjusted its service over time as per customers’ demand. Stripe provides a payment gateway to accept debit or credit cards from more than 135 countries that include 35 currencies. This payment gateway supports Instacart, Amazon, Slack, Google, Shopify, and many other popular e-commerce sites. It has everything in an offer to support a business to start accepting payments globally.
Stripe not only provides a payment gateway but also has everything that is required to build an online business. It offers virtual and physical cards, loans, and plans to manage and grow your business. This alone makes this thing one of the best payment gateways for Shopify. However, I wouldn’t advocate for the system based on its scope and just one feature… would I? No, there’s more! It claims the world’s most powerful, easy-to-use APIs. You’d be glad to know that they have a pre-built integration designed for Shopify. That’ll simplify your gateway arrangements on the Shopify site. The customization feature allows you to modify the gateway’s look on the site as well.
Furthermore, they have 250M+ API requests per day, peaking at 13,000 requests a second. However, it offers an on-demand customization package. This is to make sure the customers get what they exactly want in the store’s front end. Stripe offers two payment gateway packages. One is the standard Integrated Pay as You Go package. You can set up your Shopify site with a few easy steps. The other one comes as a Customized pack, which needs additional contact to their sales department to start with. There are no setup fees for Stripe Integrated gateway as well. Yup! People don’t need to pay any monthly charge for using the service.
They can access Stripe at about just 2.9% + 30¢ per transaction. This is absolutely textbook ‘pay-as-you-go service and there’s no hidden charge involved. If your Shopify shop is based in the USA and the business deals with cross-borders too, then you might need to accept different currencies. In such cases, you’ll be charged 1% of the transaction if any currency conversion is required. Also, if the paying card is international, then you have to pay another 1%.
Stripe comes with a unified dashboard so that you can manage your business operations effortlessly. You’d be able to view your payment reports, create billing plans, and respond to disputes that need to be solved. Besides, iOS and Android apps are there so that you don’t miss a thing even on the go. Now, let’s end with the safety measures of the Stripe payment gateway. Well, it is equipped with the most advanced security procedures. They have a Radar machine that learns through the data and prevents fraud. This feature is free if your account is subscribed to the standard package.
2CheckOut – Google’s Answer to Payment Processing via Payment Gateways
If you have ever gone through Shopify’s payment gateway provider’s top list, then you must have come across the name of 2Checkout. Starting its journey in 2006, it is now one of the best all-in-one monetization companies that assist businesses to expand internationally. There are more than 20000 businesses in collaboration with 2CheckOut’s platform to accept payments. You can accept online payments for the Shopify store almost immediately by setting up this on your site. There’s no “Sign-up free” or “Credit Card Required” to start with. 2checkout offers three types of payment gateways that are tailored for dedicated types of business.
The 2Sell is the basic payment gateway that’ll allow you to sell any kind of item from your Shopify store. It’ll cost 3.5% + $0.35 per successful sale. There are no hidden charges or monthly fees applicable for the 2Sell Package. The pricing policy is similar to the other ‘pay as you go packs. So, there is no question of carrying charges if you stop or pause your sale for a few days. 2CheckOut has been popular in and outside the US since it came about. They have more than 200 countries covered under their service. However, the transaction fee for each plan remains the same for both local and international payments.
Having a payment gateway that offers multicurrency transactions is always a strong side for any business. Study shows It increases authorization rates by up to 25%. Once your international customers find their preferred currencies in the slot, the cart abandon rate also drops significantly. This is not the end of the line. 2Checkout also has more than 45 different payment methods including credit cards, debit cards, online wallets, PayPal, and others. It also allows pay-outs through wire transfer, ACH, and Payoneer in currencies like USD, GBP, or EUR. All the 2Checkout packages come with PCI level-one certification that confirms protection for you and your customers from fraud.
In addition to that, they provide refund and chargeback management tools so that you don’t get in trouble for mishandling. Besides the regular payment gateway features, 2checkout has a bunch of add-ons that come with their own specialized benefits. 2Convert, 2Bill, or 2Recover are to name a few. People can integrate to package for enhancing the strength of their accounts and boost businesses. However, things are not all peaches here. There is a subtle drawback with this gateway. It doesn’t let you sell everything in the market. They have certain guidelines that list the products prohibited or restricted from the sale. As a Shopify business owner, it’s unlikely that you’ll encounter any kind of issues on the way.
Authorize.Net – One of the Oldest Payment Gateways Out There!
The next payment gateway on this list is Authorize.Net. It’s one of the oldest and most tested financial platforms in the USA which provides services in the local and international markets. Authorize.Net can accept all the major credit cards around the world under a reasonable price scheme. To add this to your Shopify store, you must need a merchant bank account.
However, they have another pack called ‘all-in-one solution’ which allows anyone a payment gateway without a merchant account. But we won’t talk about it since that’s costly and not required to run a Shopify business either. There is no setup cost to add authorize.net to your Shopify account. But, unlike many other gateways, it charges every month. No matter how many transactions you make, you have to pay $25 at the end of each month. Yet, it is considered one of the cheapest payment gateways worldwide. The reason? It costs just 10¢ per transaction, whereas the average transaction cost for many other reputed payment getaways exceeds 3% of the total amount.
The pricing policy is totally different for this provider. Perhaps, it is modified to assist the small business owner so that they don’t need to carry the extra burden. However, besides the 10¢ for each transaction, you also need to pay an additional 10¢ as a daily batch fee. Well, some of you might ask what the batch fee is. Here is a brief idea of the process. What happens at the backend of Authorize.Net’s payment gateway is that they take all the transactions of your account from the last 24 hours.
There is no transaction limit. After that, they combine them together and send them to the processing network for further action. Their pricing method is slightly different from others. But it’s really a very good deal compared to many other payment solution providers. So, it’ll be wise to add this to your Shopify if your business gets a handsome number of sales daily. Only then you can capitalize the best out of it. Besides that, it has a better integration that offers features like a customer information manager, card tokenization, and e-check processing. You can customize the look of your payment gateway according to your business theme.
The customer manager saves all the payment details of a customer so that he/she doesn’t need to fill in the information again. This makes the checkout much easier and faster, resulting in a good shopping experience for the customer. The last thing that should be mentioned is the fraud protection measurement of Authorize.Net’s payment gateway. The Advanced Fraud Detection Suite or AFDS is a tool that ensures the customer and merchant are safe from suspicious and potentially fraudulent transactions.
Worldpay – The Best If You’re from the UK
Originating in the UK, this global payment solution is synonymous with the best payment provider in the European territory. A few years back, it ranked the UK’s No.1 payments provider, chosen by over 250,000 UK SME businesses. Currently, it provides payment gateways in collaboration with Pay360. People can start accepting debit and credit card payments from more than 40 countries around the world within 24 hours of adding the service to their Shopify payment option. This particular payment gateway has an additional connotation to Shopify users because of its integration with the site. Shopify’s pre-built integration system for the Worldpay payment gateway saves you stressful and time-consuming labor.
Besides, with Worldpay by your side, the customers won’t need to be redirected to any other third-party websites to complete the checkout procedure. Worldpay accepts major card brands like Visa, Mastercard, Amex, and JCB instantly. On top of that, it allows you to receive payments internationally without any extra charges. It gives your customers the flexibility of making payments in different currencies. Thus, encouraging customers to come back again. There are three different business-friendly payment gateway packages for World Pay. The Gateway Standard pack offers service on a monthly subscription basis that starts from £19.
You can make up to 350 transactions for free using the pack. Once you cross the 350 marks, you’ll be charged an additional 10p for each transaction. However, the two other packages offer more free transactions, but they cost comparatively more than other payment gateways. The Gateway Standard should do the job for your Shopify store. The good thing is they’ve recently left out the set-up fees that used to be a cause of headaches for many small business owners. So, currently, there is no sign-up cost, and as a bonus, merchants are offered a free online merchant account for those who need that to accept payments instantly a merchant, you’d want to offer the customer the easiest and quickest checkout possible. Similarly, WorldPay has several features to give your customer a good buying experience.
Recurring Payment is a feature that saves customers time and energy by automatically filling up their card information. Worldpay Online Payments has a dashboard feature for the merchant. You can go through the real-time data to see the arrival of your orders. The dashboard shows the total value of the order and also provides the current conversion rate of the transaction. As far as safety is concerned, Worldpay has been offering peace of mind to its customers for the last 25 years of operation. The risk management tool monitors each transaction that takes place using the gateway and provides unparalleled fraud prevention measures.
Opayo – Best in the UK (No Kidding!)
Opayo Is one of the best payment solution providers in the UK. Formerly known as Sagepay. The company is now powered by Elavon to help businesses grow and accept payments online through different methods. It provides secure service in several European countries too. Some of you might know that Elavon is associated with the U.S. Bank. Yup, Opayo has a strong backbone when it comes to finances. Opayo accepts major popular cards like Visa, Maestro, American Express, Mastercard, and JCB. Shopify has been working with Opayo since 2010. After a successful journey of four years, they became Platinum Partners. If you want to set up this payment option on your Shopify site, simply select Opayo from the dropdown menu of payment providers from your account.
Well, before that, you’d like to know about the pricing method of the company. So, here we go. You’ll have three online payment solution packages offered by Opayo. The Flex pack starts from £25 p/m which seems to be the best option for your small Shopify store. It’ll allow you to make 350 transactions per month. But a low transaction limit could be the reason for suffocation for some shops. If you think you need more transactions, then you should go for the Opayo Plus plan. It has an option of making 500 transactions, costing about £45 per month. But its transactions aren’t completely free of cost. People need to pay an additional 10p for each transaction after exceeding the first 350 marks.
With all these complications in hand, still it is one of the cheapest payment gateway providers in the UK as well as Europe, especially for small business owners. Its transparent pricing policy and easy setup configurations offer merchants a hassle-free experience. However, they also provide completely modified packages to support more than 3000 transactions a month. So, you can call them over the phone and discuss your business’s strategy to tailor out the best payment option. They provide technical support 24/7 over the phone. Opayo is considered to be a secure payment gateway.
Over the years, it has been able to provide customers with almost a deception-free transaction experience. All the packages of Opayo offer effective fraud prevention tools at no extra cost. It has a record of 99% uptime, which portrays sincerity. Moreover, it meets the PCI DSS to help protect businesses and shoppers from getting into trouble with fraudulent activity. Having a payment gateway that has level 1 PCI DSS opens the door for the business owner to a wider market. So, it should increase the acceptance of your Shopify store.
Skrill – The Household Name for Payment Gateways
Our last payment gateway on this list is Skrill. The franchise has more than 20 years of experience transferring currency. It has been able to grow admiration from thousands of business owners from the UK and all over the world. Why?
Well, top-class performance in online payments and money transfer services is your answer. You can set up this secure and optimized payment option in your Shopify store. It supports more than 100 local and international payment methods that include credit and debit cards, digital wallets, and other alternatives. Cross-border transaction is a key factor for any business. When it comes to Shopify, you should always be prepared for international customers at your doorstep. Hence, the question is, what does Skrill have to offer for your customers abroad?
Well, the best way to attract overseas customers is to let them pay in their own currency. Skill can accept payments from numerous countries that including European territories. You can access and manage up to 40 different currencies without any conversion charge. From small to mid-sized businesses, the cost of the payment options can draw the line between success and failure. Skrill offers just 0.9% fees on every debit/credit card transaction. Global cards like Visa, Mastercard, or Maestro are acceptable through this payment gateway.
Setting up the Skrill for your Shopify store is no big deal. Since it comes with prebuilt integration for Shopify and many other popular eCommerce sites, it’s a matter of a few minutes to add the service to your store and start accepting payments. Now, let’s see what Skrill’s risk management system promises. Here’s a fun little detail for you. Skrill operated as Moneybookers for a long time. So, we can take it for granted that they have carried the experience of handling fraudulent attempts. They had been a major payment service provided in the online gambling industry too.
This has made them take extra measures since the industry is a potential risk zone full of forfeiters. So, now, with all the knowledge and technology in hand, they have made online payments safer than ever before. They are fully equipped with PCI standard certification in possession. You, as well as your customers, can fully rely on a company that comes with a Payment Card Security Standard. You’d be glad to hear that only one-third of the global payment solution providers have PCI certification. So, Skrill definitely deserves kudos!
Chargeback is one of the reasons for annoyance for many eCommerce business holders. They are left speechless with a chargeback. The study shows that on average each year, the industry faces a loss of $20 from chargebacks. Fortunately, Skrill has a high-security measurement from which it can offer chargeback protection for its customers. In addition to that, an easy and shopper-friendly checkout process with clean and clear visuals upfront makes the buyers leave the payment window with a face of satisfaction.
Factors to Consider While Choosing Your Shopify Payment Gateway
The payment Gateway is one of the vital aspects of any business. And when it comes to eCommerce sites, be it Shopify or any other, you should always emphasize while choosing the payment solution. Effective and user-friendly integration can ensure the growth of your business. Let’s see what are the fundamental things that you should look for in your Shopify store’s payment gateway.
Is the Payment Gateway Reputed Enough?
Sometimes, people focus on just the effectiveness of a thing, and there are times when they need to see both the effectiveness and the prestige of that thing as a whole. A payment gateway is such an entity where people want to see what’s the brand value or how reputed it is. You may find a few anonymous payment gateways on the market. These offer the solution pack at a cheap rate. But it won’t be wise to add those to your store. Chances are there that you might face a series of cart abandonment due to an off-key payment gateway. So, go for the reputed and established payment gateways. You may go through the gateway’s homepage to find some positive notes about it. Prestigious companies don’t feel shy to address their achieved awards and recognitions.
Is the Franchise Globally Accepted?
Shopify performs on a global scale. Even if you operate a business that centers around the local market, it would be a wise decision to stick to a payment option that welcomes shoppers from different parts of the world. The more countries and currencies your payment gateway offers, the more chances you get to attract new markets. However, not all payment gateways have the ability to penetrate through a wide range of countries. Some countries often come up with sanctions on foreign payment gateways due to political tactics. Sometimes, financial institutes find it difficult to meet the tough agreements of the government. Thus, ending up not being able to get access to certain states. It would be wise to make sure your Shopify payment integration doesn’t face any ban in your targeted business territory. An ideal payment gateway should have the ability to run its operations in important parts of the world.
How Good (or Bad) is the Pricing Structure?
You must have understood the diverse pricing strategies of payment gateway providers. Some charge per transaction and some prefer to put a fee every month. So, you must determine which approach suits your business most. A payment gateway, that charges per month, tends to offer a cheap service. But the problem is most of them don’t give options to make a huge number of transactions.
Yet, you can capitalize on the circumstance. If your Shopify transactions are low in number but large in volume, you can go for a monthly plan. Because the transaction amount shouldn’t affect the pricing policy. On the other hand, if your business is to make small transactions, then you should go for the per-transaction plan. Lastly, there are some payment gateways that require fees on set up, chargebacks, and currency conversions too. So, make sure you’ve gone through the pricing details attentively to avoid any unexpected charges.
How Many Cards Does the Gateway Accept?
The Best Payment Gateway for Shopify should have the ability to accept all kinds of major international debit or credit cards like Visa, Mastercard, or American Express. After all, Shopify is an international marketplace. Thus, to win the battle in the international market, your site needs to be well-equipped.
Fraud Prevention Measurements
Fraudulent activity in the online payment industry is the reason for loss and grief for many merchants and shoppers. Counterfeiters always look for a chance to get into the information of bank accounts to make the most out of it. This is why top-class payment solution providers install the most effective and upgraded fraud prevention tools into their service to analyze any potential deceptive transaction.
Normally. most companies offer fraud management tools at no extra cost. Some payment gateway providers often come up with added features to make checkouts more secure. If you can afford to add those features to your site, your customers will certainly feel more comfortable making purchases from your Shopify store. So, to ensure the safety of your customers as well as your site, make sure your payment gateway comes with PCI Standards to fight off any kind of scams.
Shopping Experience
In the end, you need to have a payment gateway that offers easy customer interference. Try to avoid a payment gateway that takes too much time to perform the actions. You should also keep in mind that buyers don’t like to be redirected to third-party websites to complete their transaction process. Customers feel insecure about this redirection thing. So, a payment gateway that can process the payment within the same window is believed to be the ideal one. If your customers don’t face any trouble completing the purchase, your Shopify store will likely get recurring purchases.
Let’s Put a Pen in This, Shall We?
Unless you’re living under a rock, you know online payment gateways are growing faster than ever before. The world is shifting to a cashless transaction arena. From grocery to paying your medical bills, everywhere online payments are mastery over traditional transaction methods. And when it comes to e-Commerce, you need to be precise when choosing the payment service. The more payment options you have by your side, the higher the conversion rate will be.
An accurate payment gateway can help you grow your business faster. Hence, try to determine your business goal the nature of your customers, and the market you are trying to function. You need to make sure that your clients are getting the most convenient and risk-free payment service. The ideal gateway can make the payment process seamless for customers and effective for the business. In the end, it can increase the operation ability of your business at the same time give you a peaceful business environment by providing a secure payment solution.
