You’ve gone ahead and set up your Shopify account and you are ready to start selling your products online. The only problem is, you realize that you have to connect payment gateways.
What exactly is a payment gateway? Don’t worry, setting up a Shopify payment gateway isn’t as complicated as it sounds.
We’ve included a step-by-step guide which will help you integrate the payment gateway that is best for your online dropshipping company.
While the name might sound complex, there’s a good chance that you are already familiar with payment gateways.
In order for customers to pay for the items at your store, they can either enter their credit card number directly onto your website. However, your shoppers might not trust the security of a website they are visiting for the first time.
That’s where payment gateways come in.
Payment gateways are essentially a bridge between you and the seller which lets you pay using an account with a third party. Take PayPal for instance.
PayPal is perhaps the most widely accepted and trusted third party payment gateway in use today. With PayPal, users create an account with PayPal which they can use to checkout at any store that accepts PayPal.
This method saves time and money for everyone involved. It removes the hassle of having to create unique payment accounts with the store you are shopping at.
For store owners, this means that you do not have to create a merchant account on Shopify in order to get paid.
Shopify can integrate with over 100 third payment processors which give you a lot of flexibility when choosing which one you want to use.
How to Integrate Payment Gateways
Do your research on payment gateways before integrating with Shopify. That way, you will have a better idea of the surcharges, versatility, security, and reputation of the processor before you get started.
Here are some step-by-step instructions that will help you connect your payment gateways on Shopify.
- On the bottom right-hand side of your screen, go to the “Settings” Tab
- Go to “Payments”
- Select “Add a Provider”
- Select which third party provider from the toggle list
- Make sure to set up your merchant account with the payment gateway you chose
- Buy something from your store using the payment gateway to ensure it works correctly
When in doubt, choose PayPal Express as your payment processor (gateway). PayPal is the most reputable payment processor in the industry and will likely increase the buying confidence of your customers.
While you can choose any payment processor, be sure to think about you Shopify store from the perspective of your customer.
Make it safe, make it fast, and promote the fact that you use credible payment gateways.
Costs to Use Third Party Gateways
When you are using a third party payment gateway, Shopify will charge you an extra 2% fee for every transaction that is made on your website. This is because they want you to use their own internal payment processor which does not have a surcharge.
While the standard Shopify payment processor also charges fees per transaction, it will cost you less than third party processors. You might not want to use the Shopify processor because as stated before, customers like to see the PayPal logo.
Find out what works best for your website. Maybe you have unique products where customers are willing to pay using whatever payment method necessary.
If customers feel safe checking out at your website, they will be more likely to do business with you now and in the future.