Ecommerce is a billion-dollar industry that keeps growing, and ecommerce payment gateways are the key to getting money from customers. Ecommerce Payment Gateways are what allow ecommerce merchants, like dropshipping stores, to accept different kinds of payments, like credit cards, debit cards, PayPal, digital wallets, etc. As more advanced technology is made, dropshipping payment gateways are becoming more complex. It’s important to keep up with the latest trends to make sure your ecommerce store can meet the needs of your buyers and accept payments without any problems.
More and more customers are looking for easier, faster, and more convenient ways to pay for their online purchases. These options include digital payment systems like PayPal and a number of digital wallets. This is especially true for younger generations like Millenials and Gen Z, who are used to using digital wallets and contactless payment options. In fact, 65% of young Millenials used digital wallets in 2022, up from 59% in 2021. Also, the number of Gen Z people who used digital wallets went from 50% in 2022 to 57% in 2023. This number will just keep getting bigger. If you don’t have an up-to-date ecommerce payment gateway that offers these more convenient payment options on your ecommerce store, you may be missing out on a big part of the market, which could hurt your sales.
When it comes to ecommerce, the way your customer pays for the product or service they’re buying is just as important as the product or service itself. Payment gateways for dropshipping are always trying to give customers the best experience possible while making sure online businesses and their customers are safe. Nothing is worse than getting to a checkout page and finding that paying is hard or inconvenient. For customers to have a good experience and want to come back to your ecommerce store, you need to give them a variety of fast, safe, and easy payment options.
But with so many options and features, it can be hard to figure out which dropshipping payment gateways you want to use for your own store. This is especially true if you are new to ecommerce payment gateways and all they have to offer. We’ve put together a list of the best ecommerce payment gateways for dropshipping businesses to help you decide. But before we get to that, it’s important to talk about how to choose the best payment gateway for your dropshipping store.
How to Choose the Best Payment Gateway for Your Online Store
For customers to be able to pay, all dropshipping stores need to have an ecommerce payment gateway. Even though there are a lot of payment gateway providers to choose from, not all of them will work well for your ecommerce store.
When picking the best payment gateway for your business,
ecommerce store, there are many things you need to think about. Even though it may be tempting to choose the one with the lowest fees or the one you’ve heard of, you should take some time to think about all of your options and what they have to offer so you can make the best choice for your dropshipping store.
Here are a few things to think about when picking the best ecommerce payment gateway for your business:
- Low transaction fees: It can be expensive to run a business, so when it comes to getting paid, the lower the fee, the better. Even a small difference in transaction fees, like a fraction of a percent, can be worth thousands of dollars, so it’s smart to compare all of your options’ transaction fees.
- Popularity with your audience: You should think about which ecommerce payment gateways your customers already use in their daily lives. For example, if you offer digital payment options, make sure to do your research and try to offer options that are well known among your target customers.
- Compatibility with dropshipping stores: Some ecommerce payment gateways won’t work with dropshipping companies because they might have a higher rate of refunds. Before you sign up, make sure that the payment gateway you want to use doesn’t have any rules about dropshipping stores.
- If you want to sell more around the world, you’ll need to make sure that your ecommerce payment gateway has options for customers from other countries. Some ecommerce payment gateways only work in certain countries, so if that’s important for your dropshipping store, make sure to check before you sign up.
- Integration with ecommerce platforms: Most dropshipping businesses use something like Shopify, Magento, or WooCommerce to run their online stores. Make sure that the payment gateway you choose works well with the ecommerce platform you’re using so that it’s easy to use and you don’t have any problems down the road.
- Different ways to pay: As we’ve already talked about, customers want to pay for their online purchases in a quick and easy way. Customers will be able to choose the method that works best for them if you offer more than one way to pay.
- Positive customer experience: Any ecommerce business needs to use a payment gateway that gives customers a good experience, but dropshipping businesses need it even more. Make sure your payment gateway makes it easy for customers to pay for their purchases and finish the payment process.
Top Most Common Payment Gateways in Ecommerce
Now that you know what to look for in a payment gateway for dropshipping, it’s time to think about your options. Here are the main features of the eight ecommerce payment gateways that we recommend.
Paypal is one of the most popular ways to pay online, and most people have heard of it. It’s a popular payment gateway for ecommerce stores because it’s used in over 200 countries and works with all major credit cards, like Visa, Mastercard, American Express, Citibank, and more. Most people who shop online already have a Paypal account, so they can just sign in and use their card or bank account to pay for something without having to type in their payment information. This makes Paypal a convenient option for many customers.
Stripe is a popular ecommerce payment gateway in the US that is used by many small and large businesses. Stripe is one of the most popular payment gateways for dropshipping, and it lets you use all major credit cards. One of the best things about Stripe is that it lets you get paid right away. This can help businesses that need to get their money quickly. Also, Stripe has fraud detection built in, which can help reduce chargebacks, and it works with most of the most popular ecommerce platforms, making it easy to use.
2Checkout is a well-known ecommerce payment gateway that gives ecommerce businesses a lot of options. They are available in more than 87 countries and can be paid for with all major credit cards, PayPal, and even Apple Pay. 2Checkout offers a lot of ways to pay, as well as protection against fraud and easy integration with most ecommerce platforms.
Authorize.net was one of the very first payment gateways. This business has been around for a long time and is one of the most trusted payment gateway providers. They have many features, such as support for all major credit cards, fraud detection, and easy integration with many ecommerce platforms like WooCommerce.
Skrill is a payment gateway for e-commerce that is used in more than 40 countries. This makes it easier to send, accept, and store payments from many different countries. Skrill has a checkout transfer fee of 1.9% that you should know about if you want to use them. Skrill is a good choice for dropshipping stores built on the WooCommerce platform because an official extension makes it work with that platform.
WePay is a good choice for dropshippers who want to add a quick and easy way to pay to their stores. WePay is a customizable dropshipping payment gateway, but it’s important to know that it only has a few payment options, so it might not work if you want to give your customers more choices.
Google Pay is a payment gateway for dropshipping that you should think about. Everyone knows and trusts Google, so it is a good choice. Because people know and trust the brand, this ecommerce payment gateway can help boost sales and conversion rates. Because many shoppers in the US and Europe use Google Wallet to store money and payment information, it can be a simple and easy solution for your customers.
Since there are more than 118 million iPhone users in the US alone, Apple Pay is a good choice for an ecommerce payment gateway. It’s one of the most popular ways to pay without a card, so many of your customers probably already use it and know how it works. In fact, because customers can often pay with the click of a button, it can help you increase conversions because your customers don’t have to get up and find a credit card to pay with.
What is the easiest way for someone new to e-commerce to get paid?
Depending on the needs of your store, the best dropshipping payment gateway may be different. For beginners, Paypal is the most common and easiest to set up. Paypal is one of the easiest ecommerce payment gateways to use because it is so popular, available in so many countries, and easy to connect to so many different ecommerce platforms.
When you use Paypal as your dropshipping payment gateway, your customers can pay with any major credit card or sign into their own Paypal account and use one of the payment methods they’ve already saved. This makes it easier for your customers and makes them more likely to finish the transaction if they don’t have their credit card with them.
Paypal is easy for your customers to use, and it’s also easy for you to sign up for and start using in your ecommerce store. Also, using Paypal makes your transactions more trustworthy because your customers can use their buyer protection, which can help cut down on chargebacks and fraud.
How much do Ecommerce Payment Gateways cost?
Even though we’ve talked about the basics of ecommerce payment gateways and some of the best ones, you might be wondering how much they’ll cost your business. The truth is that there is no one answer to this question. The cost of ecommerce payment gateways can vary based on the gateway itself, your business needs, and even the country you or your customers are in.
But we will try to give you some information about the dropshipping payment fees you can expect to pay with some of the most popular dropshipping payment gateways.
You will pay 2.9% plus $0.30 per transaction for sales within the US. Sales outside of the US can be a little more expensive, costing 4.4% of the transaction plus a fixed fee that varies by country.
Stripe’s payment fees for dropshipping are 2.9% plus $0.30 per credit card transaction. An extra 1% is added to cards from other countries. If your customer pays by ACH, there is a transaction fee of up to $5, which is 0.8% of the amount.
One thing to keep in mind is that Stripe does offer customized pricing and discounts for unique businesses and high volume payments. You can contact Stripe to find out if this is an option for you.
For each transaction, 2Checkout will charge you a fee of 3.5% plus $0.35. This is the fee for the 2Sell plan, which is the lowest level. There are a few other plans that cost more and have more features.
Authorize.net’s all-in-one option costs $25 per month plus 2.9% plus $0.30 per transaction. If your business does more than $500,000 in sales per year, you can contact Authorize.net to get prices that work for your business.
When you accept Google Pay, your transaction fees depend on how much money you make each month. The more money you make each month, the lower your transaction fees will be. The fee is 2.9% plus $0.30 per transaction for businesses that make less than $3,000 in sales each month. When a dropshipping business sells more than $100,000 a month, the transaction fees go as low as 1.9% plus $0.30 per transaction.
We hope this article helped you learn more about ecommerce payment gateways and which ones might be best for your dropshipping business. If you want more tips and advice for ecommerce store owners, sign up for our newsletter. Each week, we send ecommerce tips right to your inbox.