Choosing the right payment provider for your Shopify store is crucial for providing a seamless checkout experience for your customers and ensuring the security and reliability of your payment processing. Shopify offers a wide range of options through over 100 credit card payment providers, including both direct and external providers. Here’s what you need to know to make an informed decision:
Direct vs. External Providers
Direct Providers: Allow customers to complete their purchases directly on your store's website without being redirected to a third-party checkout page. This can lead to a smoother checkout experience and potentially higher conversion rates as it keeps the customer within your store's ecosystem throughout the entire purchasing process.
External Provider: Require customers to complete their purchase on a checkout page hosted outside of your online store. While this might introduce an additional step in the checkout process, external providers can offer specific advantages or features that are crucial for some businesses.
Third-Party Transaction Fees
- Using third-party payment gateways on Shopify incurs transaction fees. These fees are in addition to any charges levied by the payment provider itself.
- If Shopify Payments is activated, you're exempt from Shopify's third-party transaction fees for PayPal and manual payments. However, transactions through other third-party gateways will still incur fees.
- Shopify Plus merchants may have the option to have third-party transaction fees waived for all payment methods, including direct and external providers, if they activate Shopify Payments. Availability of this waiver can vary based on geographic location.
Choosing a Payment Provider
1. Consider Your Customer Base: Choose a payment provider that is popular and trusted in the regions where your customers are based. Consider local payment preferences and the availability of certain payment methods.
2. Evaluate Fees and Terms: Compare transaction fees, monthly fees, and any other charges associated with each provider. Also, review their payout schedules and any contractual obligations.
3. Security and Compliance: Ensure that the payment provider complies with PCI standards and offers robust security measures to protect your customers' payment information.
4. Integration and Support: Check how easily the payment gateway integrates with your Shopify store and whether the provider offers reliable customer support.
5. Features and Functionality: Look for additional features that could benefit your business, such as fraud detection tools, subscription payment capabilities, or multi-currency support.
Activating or Changing a Payment Provider
- You can activate or change your payment provider directly from the Payments page in your Shopify admin. Shopify offers guides and support documentation to assist with the setup process for each supported payment provider.
By carefully considering your options and selecting a payment provider that aligns with your business needs and customer preferences, you can optimize your store's checkout process, potentially increasing sales and enhancing customer satisfaction.