If you’re using WooCommerce, it’s common to have some questions in the payments realm. Which payment gateways work? How about processors? What about all those “buy now, pay later” facilitators? Oh, and what about PayPal — will that integrate?
Woocommerce may be an appropriate solution to your ecommerce woes, and in this article, we’ll answer all your questions on the above — including some you might not have asked yet! And if you want to know if WooCommerce is the right decision for your business, read on; we have that covered, too.
Today, online stores without the latest payment processing technology end up facing high cart abandonment rates. According to research by Baymard Institute, about 69.8% of shoppers abandon their carts. The study also revealed that 6 out of 10 times, the reason for cart abandonment is payment processing. Many customers abandon the cart due to complicated checkout methods. Others choose to leave their cart because they can’t find a suitable payment method. Meanwhile, some don’t trust the website and hesitate to share their credit card information.
Undoubtedly, payment processing is an all-important step for an eCommerce website. Consequently, they end up losing customers in the last step of their sales. If you are facing the same problems, you should consult with Swipesum. At Swipesum, we offer payment solutions and support to eCommerce businesses, so they can reduce cart abandonment and generate more revenue. Below, we will share some essential information that every online business should know while creating an eCommerce website.
WooCommerce payment gateways are plug-ins for WordPress that enable online websites with WooCommerce stores. This payment processing option includes various functionalities to support the payment system. This system is similar to the checkout stand in a physical store. Just as these stands allow customers to pay for their purchases, Wocommerce simplifies the payment process for an eCommerce store. Customers can easily add their payment information, such as banking details and credit and debit card numbers, to complete the transaction.
Payment gateways also redirect customers to different websites to complete the payment process. Meanwhile, others offer direct payment to the WooCommerce store. For a payment processing system, you should create a merchant account with WooCommerce. At Swipesum, we help our clients determine the best payment processing solutions so they can streamline their transactions.
Once you set up your payment gateway, buyers can easily complete the purchasing process. A WooCommerce payment gateway includes four parties to perform the complete process. First, you need to connect your website with the WooCommerce store. Next, it includes a customer who initiates the payment process. For a complete payment process, you will also need an issuer and a merchant’s bank. An issuer is the customer bank, while a merchant’s bank receives the payment from the issuer on your behalf.
When a customer proceeds to checkout, the gateway directs them to an interface, so they can enter their bank details and other information. After they fill in their details, the gateway scans their information to validate them. The system encrypts the customer’s details and delivers them to the issuer. The issuer instantly replies to the gateway if they find the information in their database. A reliable payment gateway will reject the purchase if the customer details are not accurate.
After the verification process, the issuer receives a purchase request from the payment gateway. Once the issuer approves the payment request, the merchant bank receives the payment. If the account doesn’t hold sufficient funds, the issuer reports to the gateway. As a result, the customer will receive a message about insufficient funds in the account.
If you want to secure your payment process and avoid hassles, choose the right payment gateway. Every online store wants a secure and easy customer checkout process. But, with numerous options available, eCommerce websites find this process difficult. For your assistance, we are sharing some factors you should consider before choosing a payment gateway:
1. Security and Fraud Protection
When it comes to payment, security cannot be compromised. Because merchants and customers share their sensitive financial information with the payment gateway, it is essential to evaluate them. Choosing a reliable payment gateway with strict security measures protects data. When a fraudulent gateway manages payments, there are risks of monetary discrepancy incidents, online payment frauds, and other types of frauds. Therefore, eCommerce stores should protect their integrity by collaborating with the best payment gateway service provider. Many gateways don’t provide features to identify and block fraudulent attempts, which is essential for online stores.
2. Hidden Additional Charges and Transaction Fees
Consider how much the payment gateway charges its clients for a secure payment process. Go through the options and features they offer. Service providers charge their clients using three main methods. Flat rates are a common and successful payment option. Many online stores prefer these options as there are no hidden charges. On the other hand, some gateways offer a percentage-based payment option wherein they charge a percentage on each amount. In the third method, the gateway only charges for successful and failed transactions. Selection depends on the business model. For instance, if the gateway is charging 2% on every transaction, the merchant has to pay according to the product price.
Hidden charges can be frustrating. It’s often that eCommerce businesses feel relieved when service providers claim they don’t charge transaction fees, only to find out later that their no-charge policy applies on transactions below $5. Therefore, you need to approach a service provider who offers free trials for their service. Swipesum offers clients a free account to consult with our experts and find the best solution for their payment processing needs.
3. Different Currencies and Regions
Many service providers offer currencies from limited countries. As a result, online websites cannot trade in countries with limitations. Therefore, you need to consider a gateway that offers currency transactions depending on your customers’ location. Some options limit you to a specific continent, while others only enable some countries in different continents. Therefore, choose a payment gateway that enables your customers to purchase products from different countries without the need to convert foreign currencies. If you only sell products to customers living in your country, you should check if the provider offers local currency.
4. Subscription and Recurring Payments
Choose a payment gateway that integrates with WooCommerce Subscriptions as it offers automatic recurring payments and subscription billing. WooCommerce store owners can use the extension to accept automatic and manual recurring payments.
According to a survey conducted by Statista regarding cart abandonment, about 30% of shoppers abandon their carts if they have to re-enter their credit card details while checking out. On the other hand, 25% will abandon if they have to re-enter their shipping details.
So if you don’t want to lose recurrent purchases, choose a provider that offers recurring payments and subscription-based payments. Even if you don’t offer subscriptions on your website as of yet, you might need this service in the future. So check for these features before signing up with a payment gateway service provider. If you want to know what features you should offer on your website, consult with Swipesum. We will connect you with our expert for a free consultation.
5. Payment Options
Wide-ranging payment options are available, including credit cards, direct bank transfer, Apple Pay, PayPal, Amazon Pay, and Google Pay. In other research on cart abandonment by Statista, around 20% of customers don’t close the transaction because they couldn’t find a preferred payment option on an online store. Choose a gateway service provider that offers payment methods that align with your customers’ needs.
This way, more customers can complete their orders without a hitch.
While searching for a payment gateway, you will come across some options that offer only card payment. However, others offer mobile payments only. With different payment options, your chances of boosting your revenue increase. Therefore, choose a gateway that provides an incredible user experience to your customers.
6. PCI Compliance
Make sure you choose a PCI-compliant payment gateway. Gateways compliant with PCI guidelines protect your customers by offering standard security. Payment Card Industry or PCI compliance ensures that the financial institution collecting financial information offers a secure environment to the client.
The PCI Security Standards Councils ensure that the account number, service code, expiration date, and cardholder name are protected whenever a customer makes a transaction. When a website is not PCI-compliant, the risk of scammers and cybercriminals using the sensitive information for fraudulent purposes looms large. When cyber criminals hack customer information from your website, it negatively affects your brand’s credibility.
Considering today’s global economy, businesses are expanding beyond their countries’ borders. Now, potential customers can visit your website from any country. Therefore, you need to open doors for them by offering real-time payments and security. When it comes to eCommerce websites, almost every business trusts the WooCommerce platform for successful and smooth checkouts. But, with so many options in the market, choosing the best payment gateway is an arduous task.
At Swipesum, we offer consultation to our clients to choose third-party payment processor. We will help you choose the best payment gateway according to your eCommerce website and requirements. Because many online store owners are unaware of factors they should consider while choosing a service provider, they regret afterward. Here is how Swipesum help their clients choose the best WooCommerce payment option:
Our professional team can help you save time and effort so you can choose the best payment solution for your business. We have a team of experts in the field who identify hazard procedures, assess risks, and suggest the best tool for payment processing. So book a free consultation now by visiting our website and understand why you are losing potential customers on your cart and payment page.
We will schedule a quick consultation call to go over how you're currently handling merchant services at your bank, show you our menu of options, and plan for a successful launch.