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Most likely you are mistaken when thinking that payment gateways just encourage e-commerce shoppers to pay online. It’s not that simple. Magento payment gateway integration aimed at achieving much wider business goals. Various Magento-friendly payment systems work in quite similar ways. Peculiarities matter not too much. What really matters is the idea standing behind the process of payment gateway integration.
To enhance the profitability of your Magento project it is worth diving deeper into what payment gateway integration is in its essence. Besides, some good insights about the best practices available in this domain would never hurt. Let’s explore some fundamentals of Magento payment gateway integration to clarify which solutions may fit your online business best.
What is a Payment Gateway?
A payment gateway such as, for instance, PayPal or Authorize.net is an online business application that uses secure web connections to prepare, coordinate, and execute online payments between customers and e-merchants. To provide secure data transfers from e-shoppers to Magento e-stores the payment gateways make confidential data (credit card info and the like) encrypted.
Since the very paradigm of online stores implies remote network-based operations the payment gateway providers have to use advanced innovations in data encryption. Otherwise, they can hardly guarantee the authenticity of information that circulates between payment gateways, end-user devices, and banking systems. This equally concerns both the pre-implemented solutions and Magento third-party payment gateway integrations.
According to online payment stats, the lion share of online buyers will pay for goods with banking cards and e-wallets by 2022. Cash is getting obsolete inexorably.
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That’s why payment gateways become indispensable elements of every Magento project in which a flow of funds takes place as such.
Read our review of the best B2B payment systems.
How Payment Gateways Work
Payment gateways provide data exchange between a digital object (a website or a smartphone) and a payment processor of a banking system. The process usually runs as follows:
Users send requests for a website via clicking respective action buttons such as “Pay now” or “Make order”;
A client-side program encrypts the data that should be sent to an e-store server with SSL encryption;
The data goes through the payment gateway while traveling from the e-store to a bank that maintains accounts of the e-store owner. The data exchange is protected with SSL encryption as well;
Once the general online payment algorithm implies using cards of such systems as MasterCard and Visa, the card-issuing banks receive confirmation requests;
Banks respond to the requests with special codes that determine what is to happen with each particular transaction. Moreover, the codes reveal the reasons for failures if any (insufficient funds, etc);
Payment processors forward the codes through payment gateways that deliver the bank reaction to both e-stores and their customers;
The e-store owners provide their banks with received confirmations to execute the transfers with their servers.
The entire procedure typically takes 2-3 seconds. Banks hold the majority of the fund-flow details in the records of the e-store owners.
How Payment Gateways Facilitate Your Business
Financial frauds along with illicit data collection became a part of our everyday routine, unfortunately. Payment gateways address the problem to a large extent. They enable online customers to believe that their personal information is protected with encryption.
Both regular banking card processing and random online payments go smooth for those e-merchants who use Magento payment gateway integration in their stores. Customers usually don’t hesitate to visit websites having payment gateways since the technology is well-known among the majority of online shoppers. Besides, payment gateways require almost no maintenance.
It is crucial to execute transactions through payment gateways for those Magento projects that seek sustainable trouble-free development. The following encouraging factors can add some extra motivation to implement the technology.
Improving Data Check
In order to protect their business from financial frauds, some e-store owners make their data-check requirements overcomplicated. Such a practice works well in terms of security. But customers start feeling angry while passing through exaggerated authentication procedures online. It can neutralize a positive effect of even the best offer while the e-store reputation is compromised. The website retention rate suffers.
Payment gateways can harmonize data check procedures with the purchase history to reduce the number of refusals in the e-store carts.
Simplifying PCI DSS
Following the Payment Card Industry Data Security Standard (PCI DSS) appears tough for many owners of Magento e-stores. Requirements of this set of policies make e-merchants invest extra time and money into what can help their projects correspond to PCI DSS.
Mechanisms of payment gateways can simplify the process of reaching consistency in cybersecurity issues.
Payment gateways make forms of data collection simple and easy to use. Refunds management becomes less complicated, therefore. The trouble-free refunding process contributes to the success of any online business.
Customers from different countries depend on local payment methods. This fact can deliver troubles to many online businesses. To address the issue e-merchants can use those payment processors that cover various international payment standards. Such payment gateways can accelerate your worldwide expansion. In other words, the payment gateway features can meet your expectations regarding the global customer audience capable of making purchases at your Magento e-store.
Enhancing Security of Online Payments
Security of payments at your Magento website is crucial for gaining trust with your customers. The following technical features make your payment gateways especially safe and secure.
- All confidential data exchanges via payment gateways are executed under the HTTPS protocol. The technology encrypts information in all messages that circulate between senders and recipients.
- An IP address of each requesting server is verified on a regular basis to exclude any sort of discrepancy in the data of payers.
- The so-called virtual payer authorization (VPA) is also carried out routinely as an extra security layer protecting every transaction.
Read further: How to Integrate a Payment Gateway into an Ecommerce Website
Best Payment Gateways For Magento
Magento offers three pre-implemented payment gateways: PayPal, Authorize.net, and Braintree. It does not mean, however, that customers are prevented from using third-party payment gateway providers. It is possible since Magento easily integrates with many decent payment solutions. Below you can find brief but consistent reviews of the best solutions for Magento payment gateway integration.
Magento platform integration with Payment System PayPal Payments Pro
Magento is one of a few preferable partners of the world-leading payment processor PayPal. About 17 million e-merchants over the world have implemented the PayPal Payments Pro processor into their stores. More than 200 million customer accounts confirm that PayPal is the largest vendor on the market.
The business version of PayPal supports all major credit card systems (MasterCard, Visa, and American Express) as well as 26 national currencies at 200+ markets. PayPal Pro is represented as an enterprise-class payment solution that can be configured in accordance with any sort of business demands. Credit and debit cards, bank transfers, phone payments, and in-person payments all are among the payment options of the processor.
The PayPal team emphasizes that no hidden fees or surcharges are available in their fee policy. The basic monthly rate of $30 along with a $2.9 per-transaction fee makes PayPal Pro an affordable payment gateway for e-commerce projects of almost any scale.
Magento platform integration with Payment System PayPal Pro is really a simple thing to do since the solution works out-of-the-box.
Magento platform integration with Payment System Braintree
Another PayPal-powered payment solution for e-commerce projects is Braintree. The platform covers 44 countries and 130+ currencies. The simplicity of operation along with the user-friendly checkout procedure makes Braintree a preferable payment gateway provider for online businesses of any size including such giants as Airbnb.
Braintree promises to leverage your website conversion rate with a seamlessly integrated platform that includes such payment options as PayPal, Venmo, credit/debit cards, and mobile wallets (Apple Pay, Google Pay). Besides, such extra features as recurring bills, anti-fraud tools, and advanced data encryption rightfully attract e-merchants toward this payment gateway provider.
Since the platform has common roots with PayPal, the standard pricing is similar to PayPal Payments Pro: 2.9% + $0.30 per transaction. Magento platform integration with Payment System Braintree can be easily carried out through the admin panel of any Magento e-store.
Magento platform integration with Payment System Authorize.Net
The third out-of-the-box integrable payment gateway for Magento is Authorize.net. This solution is dedicated to small and medium-sized businesses. About half a million merchants all over the world have chosen Authorze.net because of the ease of use of this platform.
The system offers a virtual POS (point-of-sale) terminal along with such widely accepted options as credit/debit cards (Visa, MasterCard, American Express), PayPal, contactless mobile wallets, and e-checks.
Quite a unique feature of Authorize.net implies payments without websites. This option is crucial for merchants in the days of recurrent lockdowns due to the COVID-19 pandemic. The pricing is also divided into two main sections: merchant accounts and customer ones. The merchant tariff is similar to the ones from other PayPal-powered rivals: 2.9% + $0.3 per transaction plus a $25 monthly fee. The payment gateway with no merchant account costs only $0.1 per transaction + $0.1 daily fee. Magento platform integration with Payment System Authorize.net poses no particular difficulties since the gateway belongs to pre-implemented solutions.
Magento platform integration with Payment System Stripe
No more, no less but “the backbone for internet business” is what Stripe’s team claims regarding the platform on their official website. This is the third-party payment gateway provider for Magento. The system covers 35+ countries and 135+ local currencies.
Both scalability and customizability are the strongest advantages of this global payment platform. Besides, Stripe is represented as a fully integrated suite of payment products of all possible sorts. Online/offline retailers, subscription-based businesses, software marketplaces, e-commerce websites & apps all can accept payments and send payouts with Stripe.
Stripe’s pricing is average on the market: 2.9% + $0.3 per transaction. But neither monthly fees nor setup ones are available.
Magento platform integration with Payment System Stripe implies using “the world’s powerful and easy-to-use APIs”. It means that certain programming skills are required. Another approach implies a ready-to-use extension from a marketplace. However, the extension’s compatibility with your Magento e-store is suggested to check beforehand.
Magento platform integration with Payment System WorldPay
Accessing 126 currencies across 146 countries is what Worldpay offers to e-merchants. Headquartered in Florida, USA, FIS Company has applied its 50-year-old experience in finance to the global e-commerce payment solution Worldpay.
The list of businesses supported by Worldpay is impressive: retail, education, media, gaming, airlines, healthcare, restaurants, travel, software, etc.
The cloud-based JSON APIs for simple integration enable e-merchants to build their omnichannel payment solutions with Worldpay. Awarded for “Best Gateway Uptime” and “Highest Authorization Rate” the easy-to-integrate intuitive APIs allow implementing checkouts, one-off payments, banking cards, and recurring payments into your e-store. Magento platform integration with Payment System WorldPay should be entrusted to specialists, nonetheless.
Magento platform integration with Payment System Viveum
The easy-to-install payment module Viveum represents Magento as the first partnering shop system in the list of Viveum-friendly e-commerce platforms. The solution supports over 300 different payment methods. It can be either pre-implemented in a shop system or implemented with an additional plugin.
The creators of Viveum provide various types of businesses with simple payment solutions even if it seems impossible to integrate a payment gateway in some particular project. A “Pay now” link in an invoice as well as a simple payment page on a website homepage can boost your business turnover with secure payments. More than 1K partnering financial institutions enable Viveum to offer a large portfolio of payment opportunities to the customers.
It is safe to say that payment gateways are no longer optional for e-merchants. This is a must-have feature for any sort of Magento project. The multi-billion turnover provided by payment gateways every day throughout the world highlights once again the pressing need to implement a secure payment solution into each and every online business.
The brief reviews given above cannot cover the issue completely, of course. But that’s not a big deal when true e-commerce professionals are here to help. Our DevOps expertise allows us to carry out Magento custom payment gateway integrations of any complexity. Configurations of payment modules and methods, implementations of payment facades, setting up admin panels, adding gateway commands, and all other necessary accomplishments deliver no trouble to our experts.
Contact us today to select and install the most appropriate payment gateway just for your Magento project.