All businesses require stable and secure payment gateways to collect their dues. This is especially important in the case of online e-commerce businesses since most of the customer pool is remote and makes purchases from distant locations. While platforms like Shopify have provided business owners the unique opportunity to set up their online marketplace, entrepreneurs must carefully evaluate the best Shopify payment options at their disposal.
A combination of customer comfort, minimal transaction fees, and ease of accounting are top priorities when zeroing in on the best gateway. The Shopify payment gateway allows businesses to accept payments through secure environments and ensures customers can make purchases with their preferred modes of payment.
That being said, Shopify’s payment method and gateway are suitable only for a few businesses and others might have to choose alternatives that are ideal for their marketplace. The availability of secure and trusted third-party payment applications has made this simpler, thanks to better encryption and collection technologies. Read on as we discuss the best payment gateways for Shopify, Shopify’s payment methods, and how to select the best option for your business.
What are Shopify Payments and How Do They Work?
Shopify Payments is the platform’s inbuilt payment gateway. It offers businesses a secure portal to accept customer payments and can be integrated seamlessly into your marketplace. If you opt for Shopify Payments, your business doesn’t have to seek out alternative payment methods from third-party firms. Customers often depend on a variety of payment modes and prefer to have their options open. Having a larger set of payment modes allows customers to pick and choose based on their preferences. Shopify Payments accepts a variety of payment options, which include:
- American Express
- Mastercard
- Visa
- Discover
- Apple Pay
- Google Pay
- JCB
- PayPal
- Diner’s Club
Shopify Payments come with 0 setup charges and do not involve third-party transaction fees or hidden charges. Rates are applied only when a transaction goes through, and the charge depends on your Shopify store’s subscription plan. Shopify also has intuitive measures that are put in place to prevent double billing in case your store uses both the Shopify payment gateway and a third-party service.
Moreover, transaction fees will only be paid for the payment gateway chosen by the customer at checkout. Shopify’s in-house payment gateway is available in 17 nations. The list includes Australia, Austria, Belgium, Canada, Denmark, Germany, Hong Kong SAR China, Ireland, Italy, Japan, The Netherlands, New Zealand, Singapore, Spain, Sweden, the UK, and the US. In case your country is not listed, you can opt to use a third-party payment gateway.
5 Alternatives to Shopify Payments
Shopify Payments can bring together all the necessary features of an ideal payment gateway for your online business. However, in case your business operates outside of the supported nations, or if you serve a diverse clientele spread across a vast array of countries, your business will require a trustworthy third-party payment gateway. Below are some of the options that integrate all the necessary factors to run a safe, secure, cost-efficient, and easy-to-use payment method.
PayPal
Though Shopify Payments supports PayPal, including PayPal gateway as a third-party provider will streamline collections for your international operations. PayPal is highly customizable, integrates seamlessly with shopping carts, and allows businesses to activate online invoicing features to make collections simpler. Businesses can select from both paid and free PayPal merchant accounts. As for payments made by customers without a PayPal account, you will have to activate PayPal Payments Pro. PayPal accepts major debit and credit cards along with prepaid payment options. Payment processing is based on a percentage model that is pegged between 1.9% and 3.5% per transaction. Secure payments are an added advantage and PayPal payments are available in over 200 countries.
Amazon Pay
Amazon Pay is among the easiest payment options for customers that are unable to pay with Shopify Payments. It ranks high on customer satisfaction as it can integrate across Shopify without the customer having to enter their personal information such as name, address, and card information. The checkout transition is secure and hassle-free, and Amazon supports most large credit and debit cards, e-wallets, mobile payments, and Alexa Voice Payment options. Amazon Pay offers rapid one-click checkouts secured by advanced fraud prevention methods. Pricing begins at 2.9% per transaction and an additional $0.3 for payments made through mobiles or desktop computers. Despite its benefits, business owners must bear in mind that Amazon Pay is currently available only in 18 countries.
Stripe
Stripe is a highly secure and popular payment option that is available in over 46 countries. It is especially popular among North American Shopify merchants. The services are customizable and provide options like one-click checkout, subscription payments, and immediate payment options. It accepts all major credit and debit cards and also covers well-known digital wallets. Stripe has a very supportive customer service team, making it easy for merchants and customers to resolve any issues with ease. Stripe’s charges are pegged at 2.9% plus $0.30 per transaction. International transactions include an additional 1% charge per transaction.
Authorize.net
This payment gateway is among the most well-known across all e-commerce platforms. Authorize.net offers seamless integration for businesses located in the US, UK, Canada, Europe, and Australia. One of the major advantages of this gateway is that it provides advanced fraud detection and even prevents suspicious transactions by flagging them. Authorize.net accepts all major credit and debit cards, digital wallets, Visa Checkout, and e-check payments. It can be customized to fit merchant needs and has a detailed reporting system to make accounting an easier task. Merchants must know, however, that Authorize.net has a rather steep transaction fee and charges a $25 flat subscription rate in addition to 2.9% plus $0.30 per transaction.
WorldPay
WorldPay is an extremely popular payment gateway that has had a long history of processing card machines and telephonic transactions. They also provide support for a wide range of online transactions. WorldPay is available in over 120 countries, making them the preferred payment gateway for several Shopify businesses. The gateway integrates with Shopify and third-party point-of-sale solutions, making it one of the most flexible and straightforward payment solutions for businesses. A significant caveat that businesses must be aware of is that WorldPay requires businesses to enter into a standard three-year contract. Merchants will be charged a fee if they terminate the contract early. Plans begin from a standard £19 subscription charge that includes 350 transactions.
The Benefits of Using Shopify’s Payment Gateway
Shopify’s payment gateway has a variety of benefits for businesses operating from supported regions. The below list covers the key advantages of using Shopify Payments.
Safety and Security
Safety is the top priority when selecting a payment gateway for your online business. The rise of digital payments has also led to a proportionate increase in fraud. Shopify Payments provides advanced fraud protection services and detects suspicious activity with ease. It also has inbuilt mechanisms to prevent potentially fraudulent orders and chargebacks. Shopify Payment has dedicated Fraud Protect services which are chargeable; with a small fee on all transactions that fall under the Fraud Protect purview. Fraud analysis capabilities prevent fraudulent transactions and flag high-risk activity to warn your business.
Easy To Set-up and Use
Shopify payments can be activated and set up the moment you register your store with the platform. All of its features are integrated with the seller dashboard and can be accessed instantly. Moreover, Shopify Payments has a range of payment options integrated within it, making other third-party payment gateways redundant. As a shop owner, you can also access a combined view of both inventory and sales. Shopify’s payment gateway takes around 48 hours to process payouts, which are deposited directly into your linked bank account. Shopify’s availability in 17 countries makes its payment gateway accessible to a vast user base.
Positive Customer Experience
Shopify’s multiple payment options allow customers to pick a method they’re most comfortable with. Shopify integrates with Shop Pay, a checkout portal that enables all of your customers to seamlessly pay for the products they buy from your business. The integrated payment gateway allows you to drive forth sales and profit while keeping your customers happy with a simple payment solution.
Widespread Availability
Shopify Payments’ large network helps small businesses accept orders and streamline payments from a vast number of countries. The hassle of third-party payments for international transactions is out of the question, so long as your customers belong to the list of 17 accepted countries where Shopify Payments operate.
5 Alternatives to Shopify Payments
Shopify Payments can bring together all the necessary features of an ideal payment gateway for your online business. However, in case your business operates outside of the supported nations, or if you serve a diverse clientele spread across a vast array of countries, your business will require a trustworthy third-party payment gateway. Below are some of the options that integrate all the necessary factors to run a safe, secure, cost-efficient, and easy-to-use payment method.
PayPal
Though Shopify Payments supports PayPal, including PayPal gateway as a third-party provider will streamline collections for your international operations. PayPal is highly customizable, integrates seamlessly with shopping carts, and allows businesses to activate online invoicing features to make collections simpler. Businesses can select from both paid and free PayPal merchant accounts. As for payments made by customers without a PayPal account, you will have to activate PayPal Payments Pro. PayPal accepts major debit and credit cards along with prepaid payment options. Payment processing is based on a percentage model that is pegged between 1.9% and 3.5% per transaction. Secure payments are an added advantage and PayPal payments are available in over 200 countries.
Amazon Pay
Amazon Pay is among the easiest payment options for customers that are unable to pay with Shopify Payments. It ranks high on customer satisfaction as it can integrate across Shopify without the customer having to enter their personal information such as name, address, and card information. The checkout transition is secure and hassle-free, and Amazon supports most large credit and debit cards, e-wallets, mobile payments, and Alexa Voice Payment options. Amazon Pay offers rapid one-click checkouts secured by advanced fraud prevention methods. Pricing begins at 2.9% per transaction and an additional $0.3 for payments made through mobiles or desktop computers. Despite its benefits, business owners must bear in mind that Amazon Pay is currently available only in 18 countries.
Stripe
Stripe is a highly secure and popular payment option that is available in over 46 countries. It is especially popular among North American Shopify merchants. The services are customizable and provide options like one-click checkout, subscription payments, and immediate payment options. It accepts all major credit and debit cards and also covers well-known digital wallets. Stripe has a very supportive customer service team, making it easy for merchants and customers to resolve any issues with ease. Stripe’s charges are pegged at 2.9% plus $0.30 per transaction. International transactions include an additional 1% charge per transaction.
Authorize.net
This payment gateway is among the most well-known across all e-commerce platforms. Authorize.net offers seamless integration for businesses located in the US, UK, Canada, Europe, and Australia. One of the major advantages of this gateway is that it provides advanced fraud detection and even prevents suspicious transactions by flagging them. Authorize.net accepts all major credit and debit cards, digital wallets, Visa Checkout, and e-check payments. It can be customized to fit merchant needs and has a detailed reporting system to make accounting an easier task. Merchants must know, however, that Authorize.net has a rather steep transaction fee and charges a $25 flat subscription rate in addition to 2.9% plus $0.30 per transaction.
WorldPay
WorldPay is an extremely popular payment gateway that has had a long history of processing card machines and telephonic transactions. They also provide support for a wide range of online transactions. WorldPay is available in over 120 countries, making them the preferred payment gateway for several Shopify businesses. The gateway integrates with Shopify and third-party point-of-sale solutions, making it one of the most flexible and straightforward payment solutions for businesses. A significant caveat that businesses must be aware of is that WorldPay requires businesses to enter into a standard three-year contract. Merchants will be charged a fee if they terminate the contract early. Plans begin from a standard £19 subscription charge that includes 350 transactions.
Choosing the Right Payment Option for Your Shopify Business
The best payment gateway for Shopify sellers must satisfy multiple factors. Some of these are discussed below.
Business Scope
Your business’ size and scope directly play into the decision of selecting payment options for your Shopify business. If you’re operating a fairly large marketplace serving customers in several countries, having an integrated payment system like Shopify Payments would be ideal. Its support runs across multiple nations and currencies. On the other hand, if you operate a small business serving a niche customer base, choosing a third-party payment gateway that redirects users back to your shop’s page following checkout will be the ideal option. If you currently operate a smaller business and are looking to expand its scope through Shopify or improve the cash flow management process, you need to consider Shopify seller funding options to handle operations while scaling them on the platform.
Payment Modes
For businesses that have plans to expand their operations or revamp existing payment infrastructure, being attentive to the available payment modes is essential. In case you have plans on serving an international clientele, don’t forget to take a look at the payment options available for the countries you intend on serving. Contrast third-party providers with Shopify Payments’ available payment modes in case the same payment medium is also available with the in-house option.
Transaction Fees
Transaction fees are collected by the payment gateway for maintaining a secure environment and for processing payments from your customers. The fee varies depending on the gateway provider. While some gateways have a fixed price per transaction, others rely on a percentage rate. Shopify Payments, on the other hand, offers multiple subscription plans. The pricier subscriptions come with lower per-transaction fees on both credit and debit cards. Similarly, third-party payment gateways have their own pricing models. Carefully evaluate these prices to determine what’s most cost-effective for your business.
User Friendliness & Security
These factors often go hand-in-hand as many secure payment options end up becoming too tedious to operate on the customer’s end. Balancing both security and user ease is key when selecting a payment method and gateway for Shopify. While Shopify offers an integrated, secure payment infrastructure, you will have to individually evaluate third-party payment gateways to test out their user experience and level of protection.
Sum Up
Shopify businesses can choose from a variety of payment gateways to support their online marketplace. Among the best-suited options is Shopify Payments due to its integrated nature of operations. However, not all businesses can utilize this facility and must evaluate their options when selecting a third-party gateway. Following the advice mentioned above will help you zero in on a suitable option for your Shopify business.
