When setting an online store, you need to choose a way for customers to check out and pay orders. You may be used to using credit cards, debit cards, and even bank bills to pay products and services online. When you enter your payment information when you checkout on the website, your information will be passed to the payment processor by the payment gateway, which executes the transaction between you and the website.
From the perspective of consumers, the process of paying through credit cards, debit cards or bank bills may seem simple. But as the owner, your experience will be very different.
There are many payment solutions with various functions and cost structures to choose from. You can choose to use different payment gateways and separate payment processors or use the payment polymer. You may hear these terms that can be used for use -especially payment gateways and payment processors -but they actually have different functions.
Before you start studying various providers, let’s first understand the differences between the gateway, processor and polymer.
What is the payment gateway?
The payment gateway is imagined as a credit card reader in a physical store, but it is designed for online transactions. They send transaction data safely from the online store to the payment processor, and then the payment processor transmits information to the customer’s card issuing bank for verification.
Then send the authorization status (approval or rejection) to the payment gateway, and the payment gateway conveys the results to the website. This can be completed in a second.
What is a payment processor?
The payment processor receives data from the payment gateway and the information is the second between customer banks and merchant banks. The processor also promotes the resolution, refund of disputes between the buyers and sellers, and the negotiation rate of major credit card companies such as VISA and MasterCard. Please note that you need to use a payment processor, and the store also needs to create a merchant account.
If your sales are high, this allows you to negotiate directly with the bank to get as low as possible. In addition, funds are usually deposited in your bank account immediately, and you are unlikely to encounter freezing.
Because the settings related to the payment processor may be complicated, the owner usually chooses a simpler one Solution, such as polymer.
WhatIs it a payment polymer?
Some companies provide a complete payment solution, which acts as a gateway and a processor. These providers are called payment polymers. They do not need a merchant account, because the polymer itself
acts as
Merchant account, on behalf of the owner and payment method. Some of the most popular payment polymers include PayPal and Stripe, both of which integrate Woocommerce for free. Advantages of Payment Polymer
Simple settings and implementation
to set up a business account requires a lot of documents It takes a week or longer to get approval. Payment polymers can usually be set and implemented within a few minutes.
Not too complicated management and accounting
No need to use the payment gateway and processor to manage separate accounts, you only need to manage one. Your accounting and bookkeeping will be simpler.
saving cost savings at a lower sales
If The payment gateway you use is separated from your payment processor, and you may need to pay the fee to the two. Independent gateways like Authorize.net usually charge monthly fees on the basis of each sales transaction fee. The payment processor not only charges each transaction, but also charges the contract and PCI compliance in advance. If your store’s sales are relatively low, this may affect your profits.
Payment polymers usually charge simple each transaction fee, including gateway and processing costs, which is usually more affordable for small stores.
Flexibility
Merchant accounts usually need contracts, while paying aggregates do not need. If you terminate the contract in advance, you may be charged a huge amount. Payment polymer does not require a contract, you can switch the payment solution at any time.
The beauty of the two: WooCommerce payment
There are many great payment solutions available, but only one is designed and constructed for WoOocommerce.
WooCommerce Payments is an integrated payment gateway that allows the owner View transaction and deposits detailed information, management disputes, and tracking regular collectionenter. No need to log in to a third -party website or create a merchant account.
Moreover, although typical payment providers will keep the funds at least two days before depositing funds into your bank account, but WooCommerce Payments provide instant deposits, only need Pay 1.5% of the extra costs. All you have to do is to require deposits -you can do it all over 24/7, including evening, weekends and holidays -you can use your funds within 30 minutes. This means that you can get cash when needed.
Selecting a solution for your store
If you are looking for something different from WooCommerce Payments, the WooCommerce market provides an official expansion with top partners. When selecting the right clothes for your customers and stores, please consider the following:
123] Compatibility with WOOCOMMERCE Some payment solutions may not be supported, or developers may require custom integration. You can check the Woocommerce Extensions library and WordPress.org repository at any time to see if there is an integrated.
Support the country/region that develops your business
Ensure that your selected payment solution supports the country you intend to sell and your store operating country/where your store is located/ Regional payment. If you can’t find a single provider, consider using multiple solutions to accept payment.
Host and Integration
The hosting solution allows you to complete the transaction outside the field, and the integrated solution allows customers to stay on your website throughout the checkout process throughout the checkout process. Essence If you choose a custody solution, the provider will bear the responsibility of data transmission. However, if your client is not familiar with the custody solution or is frustrating to the additional steps during the checkout process, you may lose some sales.
If you choose an integrated solution, your customer will pay directly on your website- This more seamless experience has proven to increase the conversion rate.
Regular payment support If you intend to provide subscribing services on your website, make sure your selected payment solution supports automatic billing. Otherwise, customers will have to renew their subscriptions manually, which may affect the customer’s reservation rate and complicate your business management.
burden
Not all payment gateways use the same cost structure. Although most of the payment aggregates have similar standard transaction costs (usually about 2.9% + $ 0.30 per transaction), some payment aggregates provide discounts for non -profit organizations, set up the upper limit of transaction volume, or for currency exchange or controversy Organize additional fees.
If you decide to combine the gateway with the merchant account, you need to view a more complicated cost structure. With the help of independent processing party relationships, you can explore quantitative price discounts, negotiate trading costs with a number of financial institutions, and review additional service costs.
This is another reason why many new stores choose to use Woocommerce Payments. The only cost that most American merchants need to consider are the standard expenses of 2.9% + 0.30 US dollars per transaction.
Comparison payment solution The table below compared the costs and functions of some of the most popular payment solutions for Woocommerce. All rates are based on merchant accounts in the United States.
the full table
Simplified payment
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