6 Best Payment Gateways For eCommerce Businesses (2023)
Do you know that 7 out of 10 shoppers leave the shopping cart before purchase completion?
Now there can be many different reasons for that. Some top reasons include lengthy delivery time, slow loading of website or app, coupons not working, etc.
But sometimes customers leave because their preferred payment option isn’t available.
Due to this, eCommerce businesses must use a reliable payment gateway.
Today, we have a list of the top 6 best eCommerce payment gateways required to reduce your abandoned cart rate.
But before that, let’s understand the meaning and requirements for payment gateways.
- 1 #1 PayPal
- 2 #2 Stripe
- 3 #3 SecurePay
- 4 #4 AmazonPay
- 5 #5 RazorPay
- 6 #6 Authorize.net
What is An eCommerce Payment Gateway?
An eCommerce payment gateway is an online payment processing software tool helping eCommerce businesses tackle the ever-rising online payments. They can easily accept credit cards and e-checks without much hassle. Choosing the best payment gateway for websites like Shopify India and even small business is important in the current day. Here are some things you must consider before choosing your eCommerce payment gateway:
- Total cost: Consider the total cost incurred (set-up fee, monthly fee, and transaction fee).
- The number of currencies and payment methods: If your customers prefer certain cards, does the payment gateway support them?
- Holding time: The time taken in payment processing and reflecting the amount in the bank account.
- Recurring billing option: Availability of recurring billing for businesses following a subscription-based model.
- Hosted vs. non-hosted platforms: Many business owners prefer a non-hosted platform to ensure quicker payments and enhanced customer experience.
- Advanced fraud detection: The level of fraud detection and risk management provided by the platform.
- Mobile payment support: Must provide mobile payment support as most customers shop through their mobile devices.
- Integration options: Seamless integration with third-party tools.
Let’s now move to the best eCommerce payment gateways you must try in 2022.
Feature Highlight: Access PayPal Credit at zero additional cost and receive up-front payment even when customers go with the credit option.
Pricing: A straightforward pricing system with no hidden or additional costs incurred at any stage.
Known for Its Customization And Configuration
Most eCommerce websites rely on PayPal Payment Pro to access the required flexibility and security in payments. With its full customization and configuration, it works across multiple devices. An increased number of payment options provide customers the flexibility they require during checkout, thereby increasing conversions.
Caters To The Changing Demands Of ECommerce Businesses
The increased preference for PayPal Payments Pro is due to the way you configure it based on your ever-changing eCommerce business demands. Furthermore, the platform supports major cart integrations without any hurdles.
Purchase Now And Pay Later Feature Drives Customers
The platform also tackles the need of customers looking for credit. PayPal Credit provides the option of purchasing now and paying later. But it caters to the needs of eCommerce businesses as you suffer no additional cost and receive an up-front payment even with credit. Therefore, no extra months are spent awaiting customer payments.
Cons of Using PayPal
- Automatically freezes account on suspicious activity without warnings.
- Costs drastically increase based on an increase in conversions.
- Many eBay sellers complained about the extreme delay in payment processing (as long as 21 days).
Feature Highlight: The payment platform remains highly efficient for securing safe international transactions. Stripe Radar reduces fraud by 32% with its machine learning models monitoring every transaction for possible risks.
Pricing Model: Pay-as-you-go pricing model ensures you pay based on how much you consume.
Stripe is an excellent payment platform consisting of all the tools required to accept worldwide payments (in-person or offline). Its machine-learning technique prevents financial fraud and helps brands increase sales.
Bundled With Excellent Features
Some of the eCommerce payment gateway’s best features include optimized checkout flows, fraud prevention, and seamless one-click checkouts. It remains suitable for businesses looking for international transactions as it adapts to the customers’ languages.
Provides A Wide Variety Of Integration Options
The wide variety of integration options helps provide a fully customized experience helping increase sales. Some payment integrations that the platform supports are as follows.
Trusted By Renowned Companies
Many renowned companies like Wayfair and ASOS trust Stripe for scaling their revenue.
Prevents Revenue Loss Due To Payment Failure
Let’s say your eCommerce business has suffered drastically from payment failures. Customers hate retrying payment once an error occurs. Stripe guarantees payment authorization across global issuers to ensure efficient acceptance. In case the payment fails, it tries to send the most enticing retry message and routing combinations to prevent losing sales.
Cons of Using Stripe
- Less suitable for users with limited tech knowledge
- Comparatively expensive than other alternatives
- It comes with many geographical restrictions.
Feature Highlight: Provides easy Next Day Funding Settlements with variable batch time and timely responses by integration specialists.
Pricing Model: Per transaction-based pricing.
SecurePay is another trusted eCommerce payment service provider following a per-transaction pricing model. It has been serving small to medium-sized eCommerce businesses for more than 25 years. Some notable features include direct debit processing, seamless recurring payments, and custom transaction reports.
Its super easy-to-use interface makes it suitable for new business owners.
Straightforward Integration With Various Platforms
SecurePay also allows easy integration with multiple platforms. Experienced integration specialists timely answer all integration-related queries. Users often prefer the platform as it supports advanced technologies like point-to-point encryption.
Provides The Option Of Setting Batch Timings
It provides eCommerce merchants complete control over their businesses through batch timings. Batch settlement time makes it easier to settle next-day transactions without hindrance.
Help Prevent Purchase Fraud
SecureGuard helps prevent purchase fraud and other malicious activities hindering the processes.
Feature Highlight: Takes direct information from customers’ Amazon accounts and assists in quicker payment processing.
Pricing Model: Domestic processing fee + authorization fee.
AmazonPay is a payment provider helping customers make quicker payments using the information stored in their Amazon accounts. It’s one of the quickest payment systems guaranteeing payment clearance within 1 to 2 business days. The fraud detection system and risk management at no additional cost further ensure payment security.
A-to-Z Guarantee To Customers Increases Conversions
Customers are always doubtful while purchasing from a newly established eCommerce store. AmazonPay’s A-to-Z guarantee instills the confidence required to purchase. It guarantees timely delivery of products and refund policies from third-party merchants. Furthermore, the quick and easy process reduces the abandoned cart rate.
Ensures The Safety And Security Of Customers
AmazonPay never shares the full credit card, debit card, or bank details with third-party merchants. The platform only shares the information required to complete the order and initiate the shipping process. It includes name, email address, shipping details, etc.
Cons of Using AmazonPay
- Mandatory Amazon account to carry out transactions.
- Strict policies regarding account cancellation for not following the mentioned rules.
- Provides zero support for PayPal payments and store owners often give mixed reviews regarding functionality.
Feature Highlight: A solid dashboard helping eCommerce businesses handle all crucial tasks without hassle.
Pricing Model: Transaction-based.
RazorPay helps eCommerce businesses manage payments, refunds, subscriptions, invoices, etc. in one consolidated dashboard. Users can access all relevant data, and insights, and generate customizable settlements with ease. Furthermore, you can also run promotional offers specified to certain banks via the dashboard.
Provides A Wide Variety Of Payment Options
The payment platform supports the majority of national and international debit/credit cards, net banking from 50+ banks, and different mobile wallets. The extensive set of payment methods provides customers with a seamless checkout.
Dashboard Assists In Core Decision-Making
Razorpay’s dashboard depicts information related to payment statistics, refunds, pending settlements, etc. to take enhanced business decisions. Furthermore, you can handle all your operations from one dashboard instead of navigating through multiple ones.
Ensures Extensive Safety And Security
RazorPay is PCI DSS Level 1 compliant and conducts frequent internal audits to ensure data safety.
Cons Of Using RazorPay
- It does not provide any free trial.
- No access to customer-friendly resources like gift cards or coupons.
- Does not rely on SSL support which makes it less secure.
Feature Highlight: Assures safe and secured international transactions.
Pricing Model: Monthly plans (starting at $25/month)
Authorize.net is a secured eCommerce payment gateway trusted by businesses for more than 20 years. The platform is highly preferred as it provides a customized user experience and a wide variety of payment options. It’s suitable for online transactions as the options range from different credit/debit cards to ApplePay and PayPal. Furthermore, it provides super easy integration with Magento and WooCommerce stores.
Quicker Payment Processing
Authorize.net help you process quicker payments through websites, apps, and even manual transactions. Many customers find difficulty paying through credit cards. However, the platform ensures no such problems affect the flow of sales.
Minimizes Business Risk
Advanced fraud detection help eCommerce businesses and customers minimize risk.
Supports International Transactions
The platform also accepts international transactions from customers situated in different parts of the world. It provides access to transactions in varied currencies. However, there are certain location-specific restrictions associated with the same.
Cons Of Using Authorize.net
- It charges a fixed monthly fee along with the transaction fee which makes it highly expensive for merchants.
- The all-in-one payment provider sometimes confuses customers.
Consider all crucial factors like cost, flexibility, customization, transaction fee, etc. before selecting a reliable eCommerce payment gateway. Most of these options come with a free trial helping you evaluate the suitability of the platform. Choose your option wisely to ensure payment trouble remains the last reason for customers to abandon their purchase.