Payments Processing And WooCommerce: Everything You Need To Know

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 to accept online payments. 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

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, WooCommerce 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. The PayPal payment gateway is a popular option for WooCommerce stores due to its user-friendly interface and global reach.

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. WooCommerce payments, a built-in payment gateway, allows users to accept various payment methods without setup fees. At Swipesum, we help our clients determine the best payment processing solutions so they can streamline their transactions.

What is a Payment Gateway?

A payment gateway is a crucial service that enables online businesses to accept payments from customers through various payment methods, such as credit cards, debit cards, digital wallets, and bank transfers. Acting as a bridge between the customer’s payment method and the merchant’s bank account, it facilitates secure and efficient transactions. In the context of WooCommerce, a payment gateway is a plugin that integrates with the e-commerce platform to enable online payments seamlessly.

When a customer makes a purchase on your WooCommerce store, the payment gateway securely captures the payment information, encrypts it, and sends it to the payment processor for authorization. Once the transaction is approved, the funds are transferred to your merchant account. This entire process happens within seconds, ensuring a smooth and secure checkout experience for your customers. By using a reliable payment gateway, you can offer multiple payment methods, enhancing customer satisfaction and potentially increasing your sales.

How Does WooCommerce Work?

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. It is crucial to secure customer data during the payment process to ensure compliance with PCI standards and protect sensitive information.

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.

Factors for Choosing a Payment Processing Tool: Transaction Fees

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. Additionally, always check the payment processor's website for detailed information on customer data management and compliance with regulations like GDPR.

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. However, be cautious of the potential drawbacks of a monthly fee for smaller businesses, as it can add to the overall costs. On the other hand, some services like WooCommerce Payments and Stripe have no monthly fees, making them an attractive option for e-commerce businesses.

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. Additionally, integrating local payment methods can significantly enhance customer satisfaction and increase conversion rates by providing regional payment options that align with local preferences.

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. Additionally, consider other payment gateways beyond the most popular ones like Stripe and PayPal, as various gateways might better suit specific business needs and customer preferences.

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.

10 Steps to Set Up a Payment Gateway in WooCommerce

Setting up a payment gateway in WooCommerce is a straightforward process that requires a few essential steps:

Steps to Set Up a Payment Gateway in WooCommerce:

1. Download or Purchase a WordPress Plugin:
   Choose a plugin that supports your preferred payment gateway (example: Authorize.net).
2. Log in as Admin:
   Access your WordPress site as an admin to make changes.
3. Navigate to Plugins > Add New:
   Go to the Plugins section in your WordPress dashboard to add a new plugin.
4. Upload the Plugin Zip File:
   If you've downloaded the plugin externally, upload the .zip file using the Upload Plugin button.
5. Click OK and Install Now:
   Once the file is uploaded, click Install Now to proceed.
6. Activate the Plugin:
   After installation, click Activate Plugin to enable its features.
7. Go to Settings > Payment Methods in WooCommerce:
   Head over to WooCommerce settings, then choose Payments to configure your payment gateway.
8. Configure the Gateway:
   Depending on your gateway, you may need to add credentials like API keys, client IDs, or merchant accounts. Follow the specific instructions of the gateway to ensure all settings are correctly configured.
9. Enable the Gateway:
   Toggle the Enable box next to the payment gateway to activate it for your customers.
10. Save Your Changes:
    Ensure that you click Save Changes to finalize the setup.

By following these steps, you can set up a payment gateway in WooCommerce, providing your customers with a secure and efficient payment process.

WooCommerce Payment Gateway FAQs

Here are some frequently asked questions about WooCommerce payment gateways:

1. What are WooCommerce payment gateways? WooCommerce payment gateways are plugins that integrate with the WooCommerce platform to enable online payments. They facilitate transactions by securely capturing and processing payment information from customers.

2. Which payment gateways are compatible with WooCommerce? WooCommerce supports a wide range of payment gateways, including PayPal, Stripe, Square, Authorize.net, and many others. You can choose a gateway based on your business needs and customer preferences.

3. Are there any setup fees for WooCommerce payment gateways? Setup fees vary depending on the payment gateway provider. Some gateways may charge a one-time setup fee, while others offer free setup but charge transaction fees. It’s essential to review the fee structure of each gateway before making a decision.

4. How do I ensure my WooCommerce payment gateway is secure? To ensure security, choose a PCI-compliant payment gateway and configure it correctly. Regularly update your plugins and monitor transactions for any suspicious activity. Using a reliable payment gateway with robust security measures will help protect customer payment data.

5. Can I offer multiple payment methods with WooCommerce? Yes, WooCommerce allows you to offer multiple payment methods by integrating various payment gateways. This flexibility enables you to cater to different customer preferences, potentially increasing your conversion rates.

By understanding these FAQs, you can make informed decisions about choosing and setting up WooCommerce payment gateways for your online store.

Consult with Swipesum for the Best WooCommerce Payment Option

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:

• We will help you evaluate and identify your business's unique needs.
• Swipesum understands the clients' requirements and chooses a payment platform using analytics
• Also, technical requirement or capabilities are essential for seamless integration. Whether you use Woocommerce or not, we make sure that your business meets all the requirements to integrate payment processing system.
• Professionals at Swipesum have a clear understanding of how each popular payment system works. We use our extensive experience, evaluate the options, and shortlist the best payment gateway to boost your sales and prevent cart abandonment
• Our services also include streamlining the payment process and maximizing profits.

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.