Woocommerce Payment Gateway – How to Choose it Right

Straight to the point that you never want to lose your customer right on the checkout process, which is a final step to bring the money in.

Stated that 28% of customers will drop off their cart if the checkout process is too complex.

Cart Abandonment

Therefore, choosing the right payment gateway can help in increasing your sales numbers.

This article will show you how to choose the right payment gateway for your WooCommerce site.

Let’s go!

How WooCommerce Payment Gateway Works

First of all, you need to understand the process of Woocommerce Payment Gateway work.

There are 3 parties involving in activity: you, customers and the payment gateway.

  1. The merchant (you – payment processor ) needs to partner with a merchant bank (also referred to as an acquirer) that accepts payments and deposits them into a merchant account
  2. The customer sets up transactions online to settle their accounts using credit or debit cards. Specifically, according to Statista, 42% of online shoppers prefer to pay via credit card, 39% prefer to pay via electronic methods (Paypal included), and 28% prefer to pay using debit cards.
  3. The payment gateway is a payment system.

Payment Gateway is considered a mediator that authorizes payments between your customers, their credit card company, and your bank. Here is the process:

  1. A customer purchases items and provides their payment information.
  2. Payment information is received and sent to the payment gateway via your store.
  3. Payment gateway passes on request to the customer’s lender (bank, credit card, etc.)
  4. The lender decides the availability of funds and enables payment through the gateway.
  5. Payment gateway deposits funds into your merchant account.
WooCommerce Payment Gateway Work

There are mainly two types of payment gateways: Hosted vs. Integrated gateways

Payment gateways can be hosted off-site or integrated into your store. Now we’ll compare the pros and cons of the two methods

Hosted payment gateways

This relates to the redirection gateway when it redirects your customers to the payment processor’s platform to fill their payment information.

The biggest advantage of this setup is that the offsite provider is responsible for all PCI compliance and data security.

This is one less thing for you to worry about, and the major hosted processors will have information on their compliance and security methods available if you need it.


  • No Security Responsibility: The biggest benefit of such gateways is that the host network or the offsite service provider takes care of the PCI compliance and security issues.
  • No Set Up Hassles: Set up is the sole responsibility of the Payment Service Providers. So, there is no need to worry about the know-how to integrate.
  • However, in certain countries, these gateways are not preferred, while in others they are.


  • No Control Over UX: Such payment solutions often fail to impress customers with slow and complicated user interfaces. This, in turn, can have a major impact on the conversion rates of your business.

Our conclusion: Hosted gateways are easy to set up and are fantastic for new stores, but can potentially hurt conversion rates if customers aren’t familiar with the processor.

Integrated payment gateways

An integrated payment gateway connects to your eCommerce website via the gateway’s provided API.

The biggest advantage of this is that customers never have to leave your store to input payment information and submit orders.

Integration also makes you responsible for securely storing cardholder data and complying with your country’s rules and regulations, including the PCI Security Standards.

A lack of security could put your customers at risk, or subject your store to an audit.


  • Smooth & Seamless Payment Experience: Since prospective buyers are not redirected outside the store site, these gateways always win the battle of providing better user experience.
  • Mobile Friendly: They are fast in request and response handling, thus favoring the mobile frenzy buying population.

On the flipside, these payment gateways have their own set of disadvantages.


  • Security Responsibility: PCI DSS Compliance and SSL Certification is primarily in your hands. One security breach and your store must face the risk of an overall audit.
  • Custom Integration & Maintenance: Your store architecture may not be supporting certain features provided by the gateway provider. Some custom development and ongoing maintenance cannot be ruled out on integrating such gateway APIs.

Our conclusion: Gateways integration via API offer a seamless ordering process, but can be more difficult and time-consuming to set up. Furthermore, you will have one more responsibility to your plate.

Type of payment gateway

How to Choose WooCommerce Payment Gateway Correctly

To select the appropriate Woocommerce payment gateway, you need to answer 6 questions:

1. What is your business’s requirement?

What impact does a payment gateway have on your audience?

  • Country Operation
  • Currency Support
  • Recurring Payments

For the first two factors, it relates to the location where your target audience live

If you are selling to customers across the globe, then you need a payment gateway that caters for international transactions.

Generally, people like to make purchases in their home currency, so you need to select a service that not only works for the countries where your audience resides, but that also accepts the relevant currencies.

When taking payments from other countries, always check the fees charged by your payment gateway provider, as they often vary from country to country.

WooCommerce Payment Gateway

For the third factor, if you’re offering subscriptions, memberships, or similar types of payment models with multiple transactions, you’ll need a payment gateway that supports automatic recurring payments.

Recurring payment support is one of those indispensable features that create positive customer experiences.

Subscription Payment

Here are some of gateways that support subscription-based payments.

2. Is it financially feasible?

It is important to understand the overall fee structure charged by the service providers so that it is not impacting your business financially.

There are 6 things to consider:

  • Set Up Fee
  • Transaction Volume Stats
  • Fixed Fees Per Transaction
  • Variable Fee Charged
  • Transaction Charges
  • Chargebacks

Every payment gateway will have a percentage transaction fee and a fixed cost charge for every sale you make.

These charges and fees will determine how much money you get to keep from your sales.

It is sensible to start out with a free payment gateway at the beginning. You can always upgrade later.

3. Is it secure?

The payment gateway you choose needs to have:

  • SSL/PCI DSS Compliance
  • Fraud Protection
  • Tokenization
  • Discreet Privacy Policy

A gateway provider should have a complete privacy policy and offer level 1 compliance with Payment Card Industry Data Security Standard (PCI DSS).

Shop owners accepting payments have a responsibility to protect private customer information, such as email shipping address, phone number or billing information.

Most payment gateways require an SSL certificate to protect these privacy.

The SSL certification of the provider builds a trustworthy image of your store for the customers.

SSL Certificate

Data is encrypted when sent from browsers to servers, helping keep it safe and secure.

However, always check this out as some payment gateways do take care of SSL for you.

This method is also as direct payment.

On the other hand, a redirection gateway is one where a customer needs to leave your site in order to pay.

They get sent to an external page in order to process a payment.

In most cases, a customer is redirected to the company’s site that manages the gateway.

Redirection is the best payment gateways option if you don’t want to be responsible for your site’s security.

However, it’s not as professional as redirect gateways since customers need to leave your site in order to pay.

Also, the experience of customers can sometimes feel jarring, and can potentially harm your conversion rates if it’s not a gateway they know and trust.

This is why the best payment gateways for most businesses are direct.

It helps build the trust of your customers, but you do need to make sure your site’s security is up-to-date.

Besides making your site secure, having SSL can also contribute to SEO

Additionally, payment gateways should also handle fraud protection and support various tokenization techniques to prevent any security breach.

4. Does it affect to user interface?

Multiple screens and increased number of hops are a big no for user experience.

There should be minimal effect on the design and structure of your web store.

Moreover, calculate the design impact on mobile platforms so that it is easier to integrate when you plan to take your store to mobile.

payment UI

5. How well does it perform in real time?

If in real time, your payment gateway is declining more transactions and still making a sale, it is a cause of concern.

Measure the essential performance metrics such as speeds, decline rates, and success rates, for instance, to compare the suitability and the impact on your business.

6. How well do payment gateway providers support?

What if you have issues regarding a disputed transaction and want to file a complaint.

How well reachable is the support team?

Their response time, issue tracking management and their credibility in the market. So, make sure their support services are quick and smooth.

Once you have prepared a list of these questions, it’s time to know which gateways rule the market and is the best to answer your questions.

Best WooCommerce Payment Gateway for WordPress in 2019

Popular Woocommerce Payment Gateway

WooCommerce Paypal

WooCommerce Paypal

PayPal is by far the most popular online payment gateway for most types of stores. It boasts over 200 million customers, supports over 20 currencies, and its incredibly easy to use if you’re purchasing something.

PayPal setup is easy, and the gateway doesn’t require sellers to have a separate merchant account.

Customers on sites that use WooCommerce can complete a PayPal purchase without leaving the website. Customers don’t even need a PayPal account, they can use their credit or bank card to check out.

WooCommerce Stripe

WooCommerce Stripe

Stripe is one of PayPal’s main competitors when it comes to online payment processors, and it’s easy to see why.

As a customer, the process of transferring money works just the same. However, when it comes to the store side of things, Stripe offers a few advantages over PayPal.

Stripe offers an overall better customer service experience than PayPal. The only downside is Stripe is only available for businesses in a limited number of countries.

WooCommerce Amazon Pay

Woocommerce amazon pay

Amazon is a giant among online stores. Now they also offer payment processing services you can use on almost any kind of online store.

If you use Amazon Pay, your customers will be able to check out using their Amazon accounts and pay via their usual payment settings.

This approach saves your visitors from having to create new accounts, so they only have to remember one set of credentials.

It also has the distinct advantage of using the famous Amazon name and brand. When users see they can pay via Amazon, they often feel safer than using lesser known payment methods.

As far as fees go, Amazon Pay might not be the best option for low-margin stores. It’s simple enough to integrate Amazon Pay with WooCommerce, thanks to the official extension from the platform’s developers.

WooCommerce Authorize.Net


Authorize.Net is one of the oldest and best-known credit card processors around. It accepts all major credit cards, and it’s a popular option among stores that process large amounts of sales.

If you’re particularly worried about credit card fraud, Authorize.Net is an excellent option for your online store.

You need to pay a monthly fee to use the service, in addition to what it charges you per each transaction.

WooCommerce 2Checkout


2Checkout isn’t as well-known as PayPal or Stripe, but this payment processor shares a lot of similarities with its famous counterparts.

This gateway also deals with credit cards, and it offers free setup for all its users. As far as its fees, it charges 2.9% plus $0.30 per transaction.

Moreover, 2Checkout is available in over 200 countries, which gives it a reach rivaling PayPal and outshining Stripe. However, they do charge you an additional 1-1.5% for international transactions.

Thanks to codeinwp, we have a table to compare the fee of most popular WooCommerce Payment Gateway

Comparision Payment Gateways

Final Thought

When it comes to WooCommerce payment gateway, you shouldn’t just pick one or two at random.

Your wrong choice of gateways can limit your sales because some of them are only available for specific regions and markets. While other gateways might only accept some types of payments.

Your primary goal should be to maximize the number of people that can make purchases through your store.

Consider cost, location, and what your audience will want during checkout, to help you make a final decision.

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