Luckily, there are different Shopify integrations to make sure the checkout works fine: these are called payment gateways (PG).
So, what exactly are those PGs? How do they work? And how to set up one for your store? Here we’ll tell you everything you need to know about payment gateways to choose the right one for your business.
What is a Payment Gateway?
Well, a PG is like a tech middleman, and its job is to send the payment information from your Shopify website to the bank.
Basically, it’s a final checkout stage that makes sure the money gets from you to them. It makes sure everything runs smoothly, sending your payment info to the right places to get the transaction approved. After all, it makes your transactions safe, preventing you from losing money.
A payment gateway is a must for any store that takes credit or debit card payments. PG companies usually offer special software for online shops to link with the banking system. But in physical stores, the payment gateway is part of the checkout system. Remember that sound, when you swipe your card to pay? That’s the PG doing its thing.
To sum up, Shopify payment gateways:
- make it easy for customers to pay with cards;
- protect your and your customers’ payment data;
- are a must-have for any online store.
Now let’s look at different types of payment gateways.
Types of Shopify Payment Gateways
Generally, there are two different types of payment gateways. Each one works best for a different kind of business.
Hosted Payment Gateway
When you use a hosted payment gateway, your customers get redirected to a secure payment page hosted by another company. So, instead of handling the payment on your own website, your customers go to an external page to enter their payment details. When everything’s done, they’re sent back to your site for confirmation.
Non-hosted Payment Gateway
This type is also called a Direct Payment Gateway. It lets your customers finish their transactions right on your website. In this case, your website collects their payment information itself, and then passes it onto the PG’s server to be processed.
How to Choose the Right Payment Gateway for Your Shopify Store
You already know how important payment gateways are for e-commerce. So, here are some things to keep in mind to choose the right PG for your Shopify store.
Location
Start by checking if a payment gateway works where you’re based. It’s no secret that some gateways only work in certain countries. So, look on Shopify’s site to see what’s available in your region.
Price
Pricing matters, but don’t look just at the basics. Some gateways have higher transaction rates, but no monthly fee. Others may have extra fees, so be aware.
Here’re some factors to analyze:
- transaction rates;
- monthly fees;
- chargebacks or cancellation fees.
Following that, pick the option that gives your business the most value.
Reviews
Take a look at what other businesses are saying about the payment solution you’re interested in. Reviews, ratings, and testimonials can help you understand how good or bad their experience was. Pay close attention to things like using credit cards or online payment systems.
Customer Service
Think about how good the customer service could be. How quickly do they respond when you need help? Do they solve issues well? You can check reviews or ask for recommendations to find out. Different PGs offer free support for their users, which sometimes can really matter.
International Transactions
Even if you’re just starting in one country, always think about expanding later. Shopify is great for international sales, so your payment gateway should be too. Make sure it can work in other places your customers might be.
Bottom Line
Picking a Shopify payment gateway might seem hard at first, but we hope that the information above has helped you feel more confident.
Picky enough? Even though there are tons of PGs available, a perfect one for your Shopify store simply may not exist. And that’s okay! Shopify lets developers create custom payment gateways for their stores. These solutions are tailored just for your business, and can save your budget on fees.
Need help setting things up? DigitalSuits, an official Shopify and Shopify Plus partner, is a team of web developers, experienced in any kind of payment integration. We can help you find the perfect PG for your business, and even build a better one. Got any questions or ideas? Reach out, and we’ll be happy to help!