October 4, 2022
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Every online store requires payment gateways to accept consumer payments. Find out what your Shopify store’s choices are in 2022.

What Is A Payment Gateway, And How Does It Work?

Every online store requires payment gateways, often known as online payment processors. They simply communicate transaction information between online businesses and their clients, and without them, you wouldn’t be able to accept payment from your customers.

What Is The Purpose Of A Payment Gateway?

By allowing secure debit and credit card payments, the payment gateway protects the Shopify business and the customer (online and in-person if using point-of-sale technology). The gateway ensures that payment information is sent safely.

What Should I Think About When Choosing A Payment Gateway?

Location

When selecting a payment gateway, the first consideration is your location. Check out Shopify for a comprehensive list of payment channels available in your area.

Structures of Pricing

The cost is the next most important consideration. This will determine your profit margins and product pricing. Don’t just look at transaction rates; consider the monthly fees that some payment processors demand. You’ll need to figure out whether a higher transaction rate with no monthly fees is less expensive or more expensive than a lower rate with a monthly transaction fee.

Shopify does not charge a fee to integrate with a payment gateway because each payment gateway sets its pricing.

There is no such thing as a “one-size-fits-all” solution; each gateway has its own set of features, perks, and concerns that may be better suited to a specific size or type of organization. Examine all of the providers and assess how they operate and how well each one corresponds with your company’s requirements.

Time to set up

The time it takes to set up your payment gateway varies depending on the provider. PayPal, for example, maybe set up in under a day, whereas Sage Pay can take up to 4-5 weeks. As a result, don’t wait until the end of the process to select or set up your payment method while creating your online store. So, what are your choices? There are many providers to choose from; in this post, we’ll examine the benefits and drawbacks of some of the most popular options for Shopify merchants of all sizes.

Payment Gateway Types

When it comes to gateways for your Shopify site, you have three options:

When customers make a purchase, they are transported off your site to the payment gateway page via a hosted gateway, also known as a redirect payment gateway. They are returned to your site once the payment has been completed.

Self-hosted: 

Payment information is collected on the Shopify site before being transferred to the back-end payment gateway. The transaction is completed off-site.

Non-hosted

The merchant receives and processes the payment on the site using this option. Because it’s a more technological solution that necessitates continuous maintenance and support, it’s more typical among larger commercial firms.

What Payment Gateways Does Shopify Support?

Payment Gateways for Shopify

1. Paying with Shopify

Shopify payment is a Shopify-owned service that comes pre-installed in your business when you sign up for an account. It may take up to three business days for payments to reach your bank account. In addition, you can get a free card reader to utilize in your physical store.

Website for Shopify retailers using the Shopify Payment app

There are various reasons to use Shopify as a payment method:

Shopify normally charges a 2.2 percent transaction fee, which does not apply to their gateway, reducing your operational costs.

If you upgrade your plan, you’ll pay a lower credit card transaction fee: 2.2 percent + 20p for the 

Basic plan, 1.9 percent + 20p for Shopify Standard, and 1.6 percent + 20p for Advanced. Shopify

With Shopify Payments’ built-in risk features, you can spot fraudulent orders quickly.

Orders, payments, and payouts are all managed simply within Shopify.

On the other hand, the Shopify payment is only available in a few countries, including the United States, Canada, the United Kingdom, Ireland, Singapore, Australia, and New Zealand. 

To put it another way, if you run a business in another country, you’ll have to use a local payment gateway and pay an additional transaction cost.

2. Use PayPal

PayPal is a prominent payment gateway with more than 220 million active users in 230 countries. You may integrate the app with your store in less than a day and choose between a free and premium account.

Merchants can handle payments without requiring customers to have a PayPal account with this payment mechanism. It’s also mobile-friendly, with features like simple cart integration, many customization options, online invoicing, and credit card payments through phone and email.

Shopify merchants may use PayPal as a payment option.

In terms of fees, PayPal has two tiers:

For stores with a monthly sales volume of up to £55,000, the rate is 1.9 percent plus 20p per transaction.

For stores with monthly sales of less than £1,500, 3.4 percent + 20p of all transactions

3. Stripe 

It is the most popular Shopify payment gateway in the United States, with over 35 nations and territories covered. It is aimed at larger businesses and includes several customizable features for customizing payment alternatives.

Stripe-enabled stores may accept payments in 135+ currencies using credit cards and wallets, online and in person. It also provides several APIs that merchants may use to build their support systems, like subscription management, online invoice, fraud and risk management, and company financing, to mention a few. Development languages such as Python, Ruby, PHP, and Java can be used to customize these APIs.

Shopify merchants can use the Stripe payment gateway.

There is no monthly fee with Stripe. You pay per transaction instead:

For European cards, the rate is 1.4 percent plus 20p.

For non-European cards, the rate is 2.9 percent plus 20 pence.

In Europe, you pay 1% of the transaction (maximum £5) plus 20p for direct debits.

4. 2Check-out

2CheckOut enables merchants to accept online credit card payments from domestic and international customers. This payment gateway accepts more than 130 currencies and is available in 168 countries worldwide.

The platform has a solid credit card gateway because it accepts all major credit cards, including Mastercard, Visa, Diners Club, and American Express. It can also be connected with other payment gateways to offer a pleasant purchasing experience in undeveloped nations.

Shopify merchants can use the 2checkout payment gateway.

There are three pricing options to think about:

2sell: 3.5 percent per transaction plus $0.35

4.5 percent + $0.45 per transaction for 2subscribers

2monetize charges a fee of 6.0 percent plus $0.60 for each transaction.

5. Opayo

Opayo, formerly known as SagePay, is one of the most popular payment gateways for Shopify in the UK, with over 55.000 businesses using it worldwide. It provides various payment options, including internet payments, card terminals, phone orders, and point-of-sale transactions. One unique feature is that it allows clients to pay using PayPal if they so desire.

Shopify merchants can use the Opayo payment gateway.

With 99.9% uptime and industry-leading fraud tools, Opayo is well-known as a secure and trustworthy solution. Verifying an account with its strong customer authentication could take up to 4-5 weeks. They search your websites for things like payment logos on your cart page and contact phone numbers. They may even contact your developer to do payment processing tests.

Opayo, unlike other payment gateways, charges a monthly fee rather than transaction fees. In-depth:

For 350 transactions, you’ll pay £19.90 every month.

£45 per month for 500 additional transactions

If you have more than 3,000 monthly transactions, you’ll need a custom corporate package.

6. Authorize.net

Authorize.net is a payment gateway that may be used by organizations of all kinds, from major corporations to small and medium businesses. It processes and manages payments for MasterCard, Visa, American Express, Diner’s Club, Discover, JCB credit cards, and e-payment platforms such as Apple Pay, PayPal, and Visa Checkout.

The platform also includes payment solutions that are simple to use and offer low costs for both online and in-person merchants.

Shopify merchants can use the Authorize.net payment gateway.

The regular Authorize.net plan contains the following features in addition to an all-in-one service:

There is no startup price.

Monthly gateway cost of $25, each transaction price of $10, and the daily batch fee of $10

7. WorldPay

WorldPay has been operating in the Asia Pacific for over 15 years, so it’s no surprise that it’s so popular. This payment channel can now be used in 146 countries and 120 currencies.

Shopify merchants can use the Worldpay website.

The platform is designed to provide top-of-the-line security and client service. As a result, even if installation takes 3-5 days, the quality is always satisfactory.

When it comes to payment, you have three alternatives to select from:

You can pay as you go: £10 per transaction, plus a £25 setup cost

Fixed monthly fees start at £49.99 per month and include transactions up to a certain amount.

Standard: £19.95 per month plus 10p each transaction. The rates for debit and credit transactions are different.

As you can see, when it comes to selecting payment gateways for your Shopify stores, you have many options to choose from. It’s even better to integrate your payment with other operations like segmentation and inventory management after you’ve got a working payment gateway.

Conclusion

As you can see, there are a lot of factors to consider when choosing a Shopify payment gateway, so conduct your homework and learn about the following crucial points:

  • Create a schedule for your account.
  • The many types of transaction fees and how they affect your profit margins
  • The time it takes for you to get your payments
  • Defend yourself against fraudulent payments
  • System of technical assistance.

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