When it comes to taking payments for your online store, there are quite a few options out there. You need to have a smooth payment process not only for you but for your shoppers. If it gets complicated, they might just abandon their purchase and shop elsewhere. So, let’s look at my favorite 3 processors and their pros vs cons.
Stripe
My personal favorite for most transactions is Stripe. With low fees and a clean dashboard, they make processing payments easy, and they integrate cleanly with WooCommerce through the Stripe for WooCommerce plugin.
Stripe adds the ability to take credit cards from most major providers right on your checkout screen. But it connects in such a way that the stress of securing the credit card information remains on their side. I have found that having the credit card form right on the site without having to leave windows increases sales.
Another bonus to Stripe is payments can be made with Google Pay & Apple Pay. This gives those who like to tap pay with their phone in physical stores a quick and easy way to check out on your site as well. Stripe supports subscriptions which are great for those who have monthly gift boxes, etc.
Fees & Withdrawals
Stripe costs 2.9% + 30 cents per transaction. Payments are deposited to your account within a few business days, or you can make instant withdrawals for a small fee.
Quick Rundown
- Accept all major credit cards + Google & Apple Pay.
- Payments right in checkout make for fewer abandoned carts.
- Easy integration to WooCommerce, with the supported plugin.
- Low transaction fees and no monthly fees.
- Highly secure and trusted by large and small companies worldwide.
PayPal
WooCommerce integrates with a basic PayPal account natively, with no extra plugins needed. This makes your setup quick and easy (not that the others are hard by any stretch). PayPal is my second favorite. It is also great when you want to offer quick and easy finance options through things like PayPal Credit.
The biggest drawback with PayPal is the checkout process. While your shoppers don’t have to have a PayPal account, many will be confused into thinking they have to have one to pay on your site. This can cause them to follow your checkout link, and then abandon the cart because they don’t want yet another account somewhere.
Another negative is to pay with PayPal, your customers are forwarded on to the PayPal site. This extra step in checkout adds friction. Any extra friction could be the difference between and sale and a lost cart. They might also not return to your shop, which can complicate analytics (though not unworkable).
Fees & Withdrawals
Paypal charges 2.9% + 30 cents per transaction. Funds are available instantly within your account (long as it is unrestricted). Transfers to a regular bank can be made instantly for a small fee or over a few days with no fees. You can also apply for their debit MasterCard, which allows you to use the funds instantly anywhere MasterCard is accepted.
Quick Rundown
- Accepts most major credit cards + their credit options, giving you the ability to offer financing at no direct risk.
- Can be more confusing for shoppers and may cause more abandoned carts.
- Supported natively in WooCommerce without needing any plugins.
- Low transaction fees and no monthly fees with a basic PayPal account.
- The easily recognized brand builds trust for shoppers while giving strong security.
- Works great if you already use PayPal for in-person transactions as well.
Amazon Pay
With more and more people shopping online, and a good majority of those having an Amazon account (or credit card) this is an easy payment method for shoppers. The name itself builds instant trust, and you don’t have to worry about dealing with the credit card details.
Again, like Stripe, your customers never have to leave your site. This saving step reduces friction and in turn, reduces the abandoned carts. Amazon Pay also supports multiple currencies easily. This means if you sell to a global market, it could make it easy for them to pay.
The biggest catch with Amazon Pay is that you must have a seller central account. This means you must meet some requirements and it may cost a monthly account fee depending on your volume. The set-up process can also take some time while they review it.
Fees & Withdrawals
Amazon Pay also charges 2.9% and 30 cents per transaction for in county. Global transactions have a different rate of 3.9% plus 30 cents. Withdrawals are sent to your bank account within a couple of business days in most cases.
Quick Rundown
- Uses the payment methods your customers have already set up in their Amazon account, including Amazon credit cards.
- Integrates right on the website reducing confusion and makes checkout easy.
- Requires a plugin for WooCommerce.
- Low transaction fees & international fees but may have a merchant account fee.
- Easily trusted for payment since it uses the Amazon brand with high security, and they don’t have to enter their card details.
Bonus: Square
If you are already accepting payments with Square in person, then using Square for your online store can save you from yet another account and set up. Using this integration, Square can also help you keep track of inventory both online and in-store, so you never have to worry about overselling your products.
Square accepts most major credit cards, as well as Google Pay and Apple Pay. This again makes it easy for people who prefer to pay using tap pay options to checkout on your store. Customers can also save their card to use it again in the future, while Square maintains the burden of security and keeping it safe.
Signing up for a Square account is generally quick and painless. They have no monthly fees and no long-term contracts. This makes them a good option for a growing online/offline store. Of course, it may take some time to enter all the product data, depending on your setup. The product sync can also be buggy at times.
Fees & Withdrawals
Square charges 2.9% plus 30 cents for online purchases. Withdrawals take an average of 1 to 2 business days.
Quick Rundown
- Square keeps inventory and pricing straight between brick and mortar and online stores and allows for checkout in either location. It can be very buggy, however.
- Keeps customers on your site and gives additional options like saving a card.
- Like most of the other options, Square also needs a separate plugin to connect with WooCommerce.
- Low transaction fees both online and off.
- Secure transactions and they handle compliance, saving you time.
How many options should I have?
I always recommend at least two options for payments. That way if one goes down you have still can have a way to accept payments with minimal scrambling on your side. But there is a limit to how many you should have as well.
I would say try to keep your options limited to no more than three. The reasoning is simple. More options can confuse and detract from checkout. Each new option is one more thing for customer brains to have to process rather than ‘I want my stuff, where do I put in my card numbers’. When in doubt, always keep it simple.
This count of three should include local payment options as well if you offer them. While no everyone will see the local options, you don’t want to cause any overwhelm.
Wrap Up
There are many more options than these for adding payments to your WooCommerce store. But these are the primary ones we recommend. Each is a trusted company, that has been around for a long time. While you may get a lower merchant rate through your bank, its connection to your store may not be as easy and could require many more steps for you to ensure full compliance with the law.
In the end, you need to find a processor that you trust and like doing business with. Think about the features you need both online and off and see who stacks up the best. How is their dispute process? Who do they side with in the event of a problem or chargeback? Let your experience guide your choice. And don’t be afraid to change should your needs change in the future. You don’t have to be locked in for life. WooCommerce is extremely versatile when it comes to accepting payments, so pick the one(s) you like the most and go from there.
