The payment setup of a store is vital because it can help determine whether your customers will have a delightful shopping experience or a horrible one. Not only that but whatever setup you choose, it should make it easy and fast for customers to check out because it can impact your sales conversion. Understanding the various payment gateways available for you right now can help you reach a decision on what to use.
Check out some information below that can guide you on what you might need for your store:
Classic vs Modern Payment Gateway
Classic payment gateway requires you to have a merchant account. A merchant account is one type of bank account that will allow your business to accept various mode of payments like a debit or credit card.
Without having your own merchant account, you cannot accept any payments.
Pros: Per-transaction fees for classic gateways are often lower
Cons: More hassle as it takes weeks for your merchant account to be set up.
Ideal for businesses that process bigger transactions as they can save on transaction fees.
Modern payment gateway no longer requires you to have a merchant account. These payment gateways directly acquire the funds from your customer's credit card or bank account. It will only need to validate the transaction and the money will be deposited directly to your account.
Pros: Can be set up fast as no merchant account is needed and can easily integrate with your store.
Cons: Charge larger transaction fees.
Ideal for small stores or businesses.
Here are some payment gateways that we are currently using:
PayPal is a globally recognized gateway loaded with features. Because it's hosted, they handle the transaction, so you can get started faster, for free.
How to set up Paypal: https://www.paypal.com/us/webapps/mpp/account-setup
Stripe makes accepting online credit card payments easy - and directly on your store. It's a free extension with no additional costs. You're only charged when you start earning.
How to set up Stripe: https://stripe.com/docs