When creating an online store, choosing the right eCommerce payment gateway is one of the most crucial decisions. PayPal, a dominant leader in payment processing, is often the first choice for many businesses. However, innovative alternatives like Stripe and numerous regional payment gateways provide competitive options that can better fit specific business needs.
Regardless of your choice, you’ll need to integrate Magento payment gateway in your eCommerce website for seamless transactions. While this process can be handled in-house, it’s advisable to enlist the help of experts if you’re unfamiliar with programming and website setup. Attempting to connect a gateway without the proper knowledge could waste valuable time and result in errors, affecting your store’s performance.
What Is A Payment Gateway?
To begin with, an e-commerce payment gateway is a technical solution that authorizes and processes debit/credit card, e-wallet, and even cryptocurrency transactions for online stores and traditional offline retailers. A payment gateway facilitates the smooth flow of such transactions by encrypting sensitive data and transferring it between the payment portal (website or mobile device) and the bank/payment processor. To incorporate it, you definitely need to hire eCommerce development team members.
How Do Payment Gateways Work?
In general, Magento 2 payment extension integration is necessary to facilitate communication between your website, the payment processor, and the bank that issued the credit card used to make the purchase. When accepting Visa and MasterCard payments from a site, you must consider security an integral component because the eCommerce payment gateway handles sensitive information such as credit card numbers and personal information. Payment Card Industry Data Security Standard (PCI DSS) prohibits storing credit card numbers in a merchant terminal or its databases after a transaction.
Although the transaction process only takes a few seconds, there are various steps during this short period.
1. Filling data by the customer
On the site, a customer enters the payment details, card number, expiration date, and CVV or chooses to pay in another convenient way.
2. Receiving encrypted data by the gateway
The payment gateway receives information about the customer and information about the store and purchased product or service.
3. Sending data to acquiring bank
Through Visa, MasterCard, and other payment systems, the request for payment goes to the bank, which services the customer.
4. Checking the validity of the card and the availability of funds on it
Gateway, payment systems, and acquiring bank exchange information and decide whether a transaction is possible.
5. Withdrawing money from a bank card
The owner of the online store receives a payment to the merchant account. In the future, this customer can quickly make transactions by storing card details.
How to choose the Right Payment Gateway for Your Store
When choosing an e-commerce payment solution, consider the following parameters:
1. Security level
Customer data must always be safe. The selected Magento 2 payment gateway must be as secure as possible against hacking and fraud and comply with Official PCI Security Standards.
2. Countries where the service operates
For international online stores, the geography of the gateway payment service must coincide with the location of all potential clients.
3. Payment methods
Gateway payment service must work with all popular payment options, including different types of debit and credit cards and mobile wallets like Apple Pay and Google Pay. Over time, the list of customer-requested cloud methods may change, so don’t neglect new trending options.
4. Commission
It’s essential to understand the final percentage, including the bank commission, charged for Gateway payment services.
5. Conditions for withdrawal of funds
Withdrawal conditions vary from country to country, so make sure the payment service allows you to cash out your account before choosing one. It is also essential to pay attention to the withdrawal terms.
6. Requirements for documents
Most services are not designed for individuals. To integrate with the site, you will need the documentation of a sole proprietor or a legal entity.
7. Technical requirements
If the website is built on a CMS, payment gateway integration is usually accessible. For projects without a CMS, API, or independent integration with the service, using code is necessary. When it comes to Magento payment methods, you shouldn’t encounter any issues.
8. User-friendliness
It’s important that the Magento payment gateway interface is user-friendly and easy for customers to use. If the authorization process is too long and entering payment data is a hassle, it might turn customers away to another online store.
Top 4 payment gateways for Magento stores
Let’s list the best payment gateways and briefly highlight the advantages of each of them.
1. PayPal
Today, you can hardly find a someone who has not heard of PayPal. It is one of the best-known, most trusted, and preferred gateway payment services globally. The system still has room to grow as the company adds new features for user convenience.
- 400+ million active customers
- 200+ Markets worldwide
- 20+ years of experience
- Over 100 different currencies
- Accepte payments from American Express, Visa, Mastercard, Venmo, and PayPal Credit in 26 leading currencies.
2. Stripe
One of the best eCommerce payment gateways, Stripe solves all card payment problems, including card data storage, recurring payments, and withdrawals to the bank account. The Stripe system is characterized by the high speed of payment processing and security.
- Fast integration with any CMS
- Reliable anti-fraud protection. Reliable anti-fraud protection. Stripe Radar is the ability to customize payment terms for buyers flexibly. 3DS request, risk-score, as well as Stripe is one of the first to introduce Strong Customer Authentication (SCA)
- Instant cashback and refunds
- Stripe commission is 2.9% + 30 ¢ per transaction
- Convenient payment window directly on the site (without going to other pages and registering a personal account)
3. Braintree
Suppose you have a U.S. business model and need to manage payments online and offline. In that case, Braintree is a good e-commerce payment solution to consider. The processing fees and fixed prices are accessible to schedule, and the interface is excellent. You also get a wide range of integrations. However, it may not be suitable if you just require a gateway-only solution.
- You can accept all types of customer payments from American Express to PayPal and quickly transfer money to your bank account.
- There’s no monthly minimum to adhere to and no additional customer support fees. There are no PCI compliance fees, early termination fees, gateway fees, or statement fees.
- Braintree’s rate of about 2.9% plus $0.30 is competitive when you consider no additional fees.
4. Authorize.Net
The company accepts various types of business and provides services to merchants and individual users. Its universal card reader can be connected to a computer or mobile device to accept payments “on the go.” Authorize.Net also provides e-commerce website payment gateway integration for dozens of pre-integrated third-party sales systems.
Likewise, the company provides MO/TO payments. This feature is ideal for merchants who take orders from their customers by mail or phone.
Authorize.Net makes payments for the US, Canada, UK, and Australia.
Integrate Payment Gateway in Magento 2 for Your Online Store with IT Delight
The proficient ITDelight team has extensive experience creating and upgrading Magento sites and Magento payment gateway integrations. They are strong experts in integrating all modern Magento payment gateways and providing e-commerce implementation services. They are fully capable and confident in addressing any questions related to online store development.
