Which payment gateway is best suitable for your Shopify Store? Here is ultimate guide

Introduction

If you are reading this article, chances are you are planning to build your own eCommerce store on Shopify. In this article, we will provide you with all the information about the most important aspects of running an eCommerce store i.e. payment gateways.

When it comes to building an eCommerce platform for any business, it is important to select the right payment gateway and to that, you will first need to understand what Shopify payment gateway means.

What are Shopify payment gateways?

As the name suggests, Shopify payment gateways are a type of payment gateway that allows customers to buy products and make purchases on the Shopify eCommerce platform. Therefore ensuring that you receive the transaction amount in a convenient and secure way.

The process takes place when a customer buys a product from your Shopify store. When the product is purchased, it is redirected to the payment gateway page, which sends classified information of the buyer to their bank server, which is used to make the purchase.

Then the bank servers revert to the gateway with a response of a successful or a failed payment.

How do these payment gateways work?

Now that you know what Shopify payment gateways, it’s time to understand how it works. Payment processing on Shopify from the backend generally depends on the country of origin you are going to serve. For instance, in the USA, they use the “PayPal processing system.”

In this processing system, the payments are processed in real-time and are displayed on Shopify’s dashboard without logging into any external platform.

Once the payment is initiated, it is checked for fraud and if everything is clear, then the Shopify payment provider deposits the payment into the seller’s account.

What to look for when choosing a Shopify payment method

Here are some factors to consider when choosing a Shopify payment solution.

9 best Shopify payment gateways

1. Shopify payments

First on the list is Shopify payments which are owned by Shopify. This payment gateway comes with a ton of features and solutions that will help you efficiently manage and process payments on your website without the need for any third-party solution.

Along with that, Shopify payments also offers a free card reader for physical payments. However, when customers make payments using that card reader, it might take around 3 days to reflect payment in your bank account.

Although, with Shopify payments, you won’t be charged any transaction fee that Shopify charges with other third-party apps, thus lowering your running costs. Furthermore, Shopify payments offer lower credit card transaction fees whenever you choose to upgrade your Shopify subscription plan.

This payment method is easy to use and the interface is also simple and effortless that customers and store owners use it without any help.

When it comes to pricing, Shopify doesn’t require any additional payments to set up Shopify payments. Although, Shopify will only charge you a regular store subscription fee, fees to manage cards, and other related fees.

2. Verifone

Next on the list is Verifone which was previously known as 2Checkout. What differentiates this payment method from others is that this Shopify payment allows you to choose and pay for the features that your business needs.

Apart from that Verifone comes with its own risk management and compliance section that will help you track any potential fraud and privacy issues. Another added benefit of this Shopify payment is that it comes with a tax calculation feature, therefore helping you to calculate taxes on the go.

About the pricing, Verifone is free for now but will charge a nominal fee for each transaction.

3. PayPal

Everyone knows that PayPal is the most popular payment method around the globe. PayPal is user-friendly and just takes a day to set up. Shopify owners have the option of a paid or free plan when they opt for PayPal.

Along with these plans, PayPal offers access to their support team and also helps Shopify owners in setting up subscriptions and recurring payments.

PayPal comes with a range of pricing plans to select from. The base plan for PayPal starts at 2.9% + $0.30. While the PayPal pro plan starts at $30/month which is best suited for large-scale businesses.

4. Stripe

After PayPal comes another popular payment gateway; Stripe, which allows you to receive money from local and international consumers. Alike PayPal, this Shopify payment method also comes equipped with a ton of features that is ideal for big eCommerce agencies.

Stripe comes with a feature where it lets you send invoices to customers and set up recurring subscriptions. Moreover, Stripe lets you easily track sales while keeping your operational costs at a minimum. And the best thing about Stripe is that they offer a mobile app as well where you can access all these features.

Stripe generally charges 2.9% + $0.30 per transaction and large-scale enterprises can request a customized quote for the same.

For instant payouts to the bank account, Stripe charges 1% for that and 1% extra when the payment is coming from overseas.

5. Authorize.net

Another Shopify payment gateway on the list is Authorize.net which is loaded with easy-to-use features.

Features of Authorize.net includes:

• Online payment processing
• E-check processing
• Mobile processing, and more.

Apart from that, it even supports multiple payment options including Visa, Discover, JCB, MasterCard, American Express, and more. When it comes to security, this Shopify payment gateway offers automated fraud detection, card tokenization, and a firm customer management system.

Authorize.net is the perfect option for you as it also supports digital payment options like Apple Pay.

When it comes to prices, this Shopify payment charges a $49 setup fee and an additional 2.9% + $0.30 fee for every transaction.

6. Opayo

Opayo, which was known as SagePay, is a popular Shopify payment gateway in the United States. The pricing structure of Opayo is what makes it different from other payment gateways in this list.

Interestingly, you can use Opayo’s payment method online as well as offline! This payment method is not just secure but provides access to different card terminals, online payments, phone orders, etc.

What’s great about Opayo is that it prioritizes secure transactions, where customers have the option to choose from different types of payments.

The only drawback with Opayo is its account verification process which takes around 5 weeks and during that period you are not allowed to make any transactions.

This Shopify payment gateway is a bit different from others as it doesn’t charge you any transaction fees, instead, you need to pay monthly fees starting at $23.44 for 350 transactions.

7. Worldpay

Next on the list is WorldPay which is equipped with a variety of secure transaction channels for all types of Shopify stores. WorldPay won’t just allow you to sell your products online, but also accept payment orders online from the phone through credit/debit cards.

This Shopify payment gateway is available in two plans: standard and advanced which costs $23.44 and $55.52 per month respectively.

However, the best feature of this Shopify payment is that it can support over 120 different currencies and it doesn’t charge you for refunds! Amazing, right?

8. Klarna

Klarna is one of the simplest Shopify payment gateways you can get. This is the only Shopify payment provider that comes with a buy now, pay later structure which allows you to offer your customers an installment payment option.

Klarna’s pricing is very simple, the Shopify owners just need to pay 2.9% + $0.20 per transaction. Although the pricing may differ when receiving payments from anywhere.

9. Square

Last but not least on the list is Square, a highly secure and reliable Shopify payment solution that lets you process online and offline payments. This is the perfect payment gateway if you are running an online store or a brick-and-mortar store.

Furthermore, this Shopify payment has various extensions that can be integrated into your Shopify store. And the best part is that you can monitor your transactions, cash flow, etc. all from the dashboard.

While Square also offers different payment structures such as donations, membership fees, appointment scheduling fees, and more for Shopify store owners.

Additionally, Square’s payment method is compliant with PCI and uses end-to-end encryption for every transaction. And with that, your payment will get reflected in your bank account within two days.

The Square charges a nominal fee of 2.9% + $0.30 per transaction and you can even select its different plans starting with just $12 per month.

Conclusion

So, here is the list of Shopify payment gateways that you can choose for your Shopify store. Although, one thing to keep in mind is whether these Shopify payment gateways work best for you or not depends on many factors like the type of business, and more.

If you are interested in building a Shopify store and integrating these payment gateways, you can contact the best Shopify development company like Bytes Technolab Inc. Contact us today to hire Shopify developers who will help you with Shopify app development to increase your Shopify store sales and generate more revenue.