A payment gateway: what is it?
Payment gateways are tools that enable retailers to accept payments from customers. These can be used for transactions on physical storefronts and online marketplaces and are typically third-party payment processors. A few well-known payment processors are 2Checkout, PayPal, Skrill, Amazon Pay, and Stripe.
Making the purchase only requires entering your credit card information on the payment gateway page. After subtracting some fees, the payment gateway will take the specified amount from your credit card and transfer it to the dropshipper’s bank account. This can then be transferred to the dropshipper’s bank account. Processing e-commerce payments is made simple and practical by the gateway.
What Functions a Payment Gateway?
1. The buyer completes the order and provides payment information.
When a customer has finished adding products to their cart and is prepared to check out, payment gateways are put into use. They proceed to the payment stage when they’re ready to complete the order. They must enter their card information as well as other important data there.
2. Payment gateway contacts the bank or payment card firm with a request.
The gateway receives the information and sends it into the processing stage after the customer completes that and presses the pay button.
3. The transaction is approved by the bank or credit card company.
Here, two steps take place: the information is checked, and it is confirmed that there are sufficient funds on hand to complete the transaction. The information is then forwarded to the customer’s issuing bank in order to start the transaction.
4. Cash is transferred to the merchant’s account.
The money then transfers into the business’s bank account, and the credit and debit transactions are then reported to the business and the client, respectively.
The time it takes for money to be sent into the merchant’s account can range from a few seconds to a few weeks. The payment may be delayed by the payment gateways for a certain amount of time to allow for chargebacks and fraud claims. Other times, unanticipated mistakes slow down the transactions and create delays.
What Elements Should You Take Into Account When Selecting a Payment Gateway?
There are various payment gateways, and they all have distinct functions. Your duty is to decide which one best meets your e-commerce needs. Here are a few things to think about when selecting a payment gateway for your business.
1. Payment simplicity
You and the consumers benefit from the convenience a good payment gateway offers. Integrating a gateway that makes it challenging for your customers to complete checkout payments is pointless. You’ll see a decline in sales and a rise in cart abandonment.
2. Payment cycles
When a transaction is completed, it takes some time for the payment gateways to transfer funds to the merchant’s account. Various time frames apply to each. Before integrating a payment gateway, be sure to examine the payout periods.
3. Fee
The pricing structures of different payment gateways vary. To connect payment gateways at your online platforms, you must pay this fee.
Choose the payment gateway that best suits your company by comparing the pricing schedules of the various options.
4. Exchanges between different currencies
This is a critical element to take into account if you are trying to attract clients from all over the world. A platform that enables customers to pay in their home currency should be included, so make sure it is. or at least provides choices that are popular across nations.
Prime Dropshipping Payment Gateways
I’ve compiled a list of the top payment processors used by dropshippers. You may learn which nations are supported and how much of a transaction fee they levied from the list.
1. PayPal
The most popular payment processor for e-commerce stores is PayPal. There are over 203 nations where it is recognized as a payment gateway. All well-known credit cards are supported, including Visa, Mastercard, American Express, Citibank, and more. You will need a business PayPal account to begin dropshipping.
PS: Not every nation supports it. If it is available in your country or not, it is indicated on this list of qualifying nations.
Key features include PCI compliance, simple payment methods, and the ability to track inventories.
2. Stripe
Processing Fee for Successful Transactions: 2.9% plus $0.30
The US-based payment gateway Stripe is accessible in more than 25 nations. All of the main credit cards are accepted. However, Canada, Australia, and the United Kingdom utilize it most frequently. Additionally, WooCommerce connectivity is available. It’s perfect if you also market your products on Facebook Marketplace.
Key features: Multicurrency payouts, dynamic 3D security, and round-the-clock customer service.
3. 2Payment
Payment Processing Fee: 2Checkout offers three different payment processing options. Below are their names and the cost of payment processing:
Sell: 3.5% + $0.35
Subscription: 5% plus $0.45
Earn: 6.0% plus $0.6
Another payment gateway that is accessible in more than 87 countries is 2Checkout. All popular credit cards, including Visa, Mastercard, Diners Club, American Express, and others, are supported. Many third-world nations have access to it, and it is utilized in conjunction with another payment gateway there. The ideal payment gateway combinations are shown below.
PCI compliance, multi-currency payouts, and multi-language support are important features.
Source: ecommerce payment solution , ecommerce payment gateway
