What is a payment gateway?
Payment gateways, also known as online payment processors, are an integral part of every online store. Without them, you can't get paid from customers -- they're essentially transactions between online businesses and customers.
Why a payment gateway?
Protect your Shopify business and customers with debit and credit card payment gateways (online, in person if using point-of-sale technology). The gateway ensures secure transmission of payment data.
What should I consider when choosing a payment gateway?
Location
The first factor to consider when choosing a payment gateway is your location. Check out Shopify for available payment gateways in your area.
Pricing Structure
Cost is the second major factor. This will determine your profit margin and how you price your product. Not just the rate per transaction, but also some monthly payments charged by the payment processor. You have to calculate if the transaction rate and no monthly fee are cheaper or more expensive than the monthly fee.
Each payment gateway has its own pricing - Shopify does not charge for integration with shopify payment gateway.
There is no one-size-fits-all solution - each gateway may be better suited for a particular size or type of business, strengths and considerations. Check out all your suppliers, evaluate how they work, and see how well each one fits your business needs.
Set time
The time it takes to get a payment gateway up and running varies by provider. For example paypal can be set up in less than a day while Sage pay can take around 4-5 weeks. So, when setting up your online store, don't choose or set up your payment gateway after the website is complete. So what are the options? There are dozens of vendors available; in this post, we'll look at the pros and cons of some of the major players, as well as businesses of all sizes.
The payment gateway type.
There are three options for the Shopify store gateway:
Hosted Gateway: Also known as a redirect payment gateway, with this type, when a customer makes a purchase, their website is transferred to the payment gateway page. After payment, they will be brought back to your website.
Self-hosted: Payment data is collected on the Shopify website and sent to the backend payment gateway. Payments are processed on-site.
Unmanaged: With this option, the business collects and processes payments on the website. This is more common in larger enterprises as it is a technical solution that requires ongoing maintenance and support.
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Is there a payment gateway on Shopify?
Shopify Payments effortlessly connects with all of the features of your e-commerce site, offering incredibly competitive price and top-notch security. Our payment gateway helps you accept credit card payments and process orders efficiently by synchronizing crucial data between payments and orders.
How can I get paid without paying any fees?
As long as the payer enables the transaction, you can typically take money online without charge via ACH transfer. The majority of banks allow fee-free ACH transfer acceptance. Although credit card processing expenses are unavoidable, you can offset them by charging an extra to consumers who use credit cards.
What are transaction costs on Shopify?
A transaction costs 2.9% + $0.30 under the Basic Shopify plan, while a transaction costs 2.4% + $0.30 under the Advanced Shopify plan.
