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While the subtle functions of a Magento payment gateway go unnoticed in the background of your exciting sales activities, it can be easy to forget that this software is the glue that holds your revenue collection operations together. In other words, if it goes down, the whole system comes to a halt.
There’s no room for such unpredictable downtime due to faulty payment authorization software, integration issues, or setup or maintenance errors. So, it pays to understand this critical component of your business technology and replace it with the best available option when necessary.
What is a Payment Gateway?
Payment gateways are e-commerce payment authorization software programs for the approval of online transactions. The gateway is connected to the shopping cart page of the seller’s website to enable payment processing for customers’ purchases and communicate with the merchant’s acquiring bank. It transmits the required information regarding customer payments to the payment processing service to prompt the completion of transactions.
How Do Payment Gateways Work?
The payment gateway transmits a confirmation to the merchant’s website confirming that an ordered payment transaction has been approved. Completing that critical task enables the Magento payment processor to complete the transaction and render confirmation of a fully processed payment. High-level steps involve:
- The customer enters the identifier for the item(s) he/she wants to buy and the payment method information on the online store’s checkout (shopping cart) page.
- The transaction information is then encrypted and communicated to the payment gateway for authorization and acceptance by the merchant’s acquiring bank.
- The issuing bank of the credit card company, like MasterCard, Visa, etc., accepts payments or declines charges based on available funds in the customer’s account.
- The issuing bank then transfers funds to the payment gateway, which routes the payment to the seller’s account.
Selection Priorities for Magento Payment Gateways
Be sure to weigh the basic considerations below when evaluating payment gateways for your Magento website, to help ensure that your new software aligns with your expectations and enhances the customer experience for your site visitors:
Integration | Seamless integration of your payment gateway software with Magento and your web hosting service is essential for proper functioning. |
Payment Methods | The payment gateway you choose should accept as many common payment types as possible, to give customers abundant options. |
Security | The software should comply with payment card industry standards, including security upgrades for data breach prevention and fraud protection. |
Customer Support | Integrated payment gateways for Magento 2 must provide customer support to ensure prompt resolution of software issues. |
Fees | Costs should be transparent for periodic fees, per-charge percentages, setup charges, and any additional charges. |
User Experience | The User Interface of the payment gateway should be designed for optimally intuitive functionality to deliver a simple, convenient customer experience. |
Scalability | The payment gateway you choose must be scalable along with your Magento Enterprise software as your business grows, so it will serve your needs and you can add more powerful features. |
Top 5 Magento Payment Gateways
These are the most popular Magento payment gateways:
1. PayPal
PayPal offers one of the world’s most widely used payment gateway products. Nearly a half billion merchants and consumers rely on the global service provider. The PayPal brand is famous for its reliable functionality, customer service, data protection, and overall relative systemic simplicity. PayPal serves 200 nations with streamlined easy payment processing and currency conversions.
Important Features:
- Compatibility with numerous payment methods:
- Most major credit and debit cards
- Digital wallets including Apple, Samsung, and Google Pay
- ACH payments, buy-now-pay-later
- Phone payments, in-store, and in-person payment
- Prepaid gift and debit cards
- PayPal accounts connect with bank accounts for payment from any device
- Free software registration for PayPal account holders
- Merchants access only customers’ PayPal account numbers, not bank or credit card account numbers
PROS | CONS |
Globally trusted Credit access options Strong protection for consumers’ Strong fraud prevention systems Reliable customer support system | Undisclosed fees for some types of transfers Refund delays during charge disputes |
Fees:
- Rates for PayPal’s service as a Magento 2 payment gateway vary between domestic and international usage
- See detailed pricing information at PayPal
2. Stripe
Stripe is a global payment service provider with coverage in 25 countries, and it is overall among the best payment gateways for Magento 2 integration. Stripe offers the versatility to offer a Magento 2 custom payment gateway process to meet your company’s particular needs and the scalability to suit any size of operation. Stripe’s fully integrated payment gateway supports virtually all popular payment processors and 135 currencies.
Important Features:
- Accepts all major debit and credit card payments, digital wallets, ACHs
- Accepts wire transfers, and BNPL transactions
- Compatible with online and in-store payment systems
- Provides invoicing, smooths the interactive process
- Issues credit cards (MasterCard and Visa partnering)
- Supports processing prorated charges
- Supports recurring payments, rebills without storing credit card data
PROS | CONS |
Simple payment processing Fully customizable checkout process Powerful data safety system No minimum charges No fees for setup, monthly usage, | Some programming knowledge needed to set up the APIs and user tools |
Fees:
- Merchants using Magento pay transaction costs of just 2.9% + $0.30 per transaction.
- Free setup and zero monthly fees for merchants using Magento 2.
3. Braintree
The Braintree payment gateway is a service of PayPal. The software is suitable for businesses of all sizes. It suits small stores and is scalable for large enterprises. PayPal Braintree serves 44 countries with a total of over 130 currencies. The company is highly reputed for the easy and trouble-free checkout process it consistently delivers and its efficiency in processing repeat transactions.
Important Features:
- Accepts all major credit card payments, digital wallets
- Accepts many local payment methods
- Pre-integrated with PayPal
- Highly secure data security and fraud prevention systems
- Offers large product class handling through the Braintree Marketplace solution
- Facilitates recurring transactions
PROS | CONS |
Merchant account handling for optimum operational efficiency and security Customizable checkout process Minimal fees with no contract commitment Transparent and competitive pricing | Not adaptable to physical store checkout Some customer service issues |
Fees:
- 2.59% + $0.49 for cards and digital wallet transactions
- 3.49% + $0.49 for Venmo transactions
- 0.75% for direct debit by ACH
5. Amazon Pay
Amazon Pay offers a highly versatile payment gateway with secure payment processing. It functions in several languages and accepts 12 currencies. Customers can conveniently pay on other e-commerce sites through their Amazon accounts. This reduces checkout time and presents a significant benefit for merchants focused on enhancing the customer experience.
Important Features:
- Accepts payments by Visa, Mastercard, American Express, and many other credit card brands
- Integrated directly into the checkout page as a shopping cart payment option. Customers can select it to activate it without leaving the shopping site.
- Maintains Amazon’s industry-leading fraud protection systems and protocols.
- Ideally integrates with Magento 2, as well as Shopify, and many other popular national e-commerce platforms
- Accepts Alexa interactions for customer transactions
PROS | CONS |
Fast and easy checkout process Zero setup cost and no monthly fees Multiple currencies accepted for payments Ideal performance on all devices Alexa voice integration | Undisclosed fees for international transfers Refund delays during charge disputes |
Fees:
- Amazon transaction fees vary based on merchant location.
- There is no installation cost or other charge to launch the Amazon payment gateway.
- See Amazon Pay for details about payment gateway fees.
Magento 2 Payment Gateway Integration Process
Integrating any of the above or another common payment gateway for Magento involves this series of general steps:
- Select a payment gateway software package – Evaluate features, support, countries served, features, etc., and choose your gateway.
- Obtain the necessary API credentials – Use your API keys to connect your Magento store with your payment gateway.
- Back up your store’s data system – Before making changes to your site, back up your online store to protect against data losses.
- Turn on Maintenance mode – To avoid the risk of disruptions, perform the Magento payment gateway integration integration in Maintenance mode.
- Install and configure your new payment gateway – Log in to Magento 2 and go to Navigate to System. Go to the Web Setup Wizard and from there to the Extension Manager.
- Find and install the software extension provided by your choice of payment gateways – Use the instructions displayed and apply your API credentials to configure the extension.
- Install an SSL certificate – Install an SSL certificate on your website to ensure secure transmission of payment information.
- Test your payment gateway environment – Before you launch your payment gateway, use test tools to try transaction scenarios (refunds, failed transactions, etc.).
- Launch your payment gateway – Turn off Maintenance mode and introduce your integrated payment gateway to your shoppers.
- Monitor and maintain your software – Monitor for issues with Magento or your payment gateway software. Keep current with updates.
The process will generally be the same across all the payment gateway service providers but expect some individual integration steps to vary a little from one payment software type to another.
FAQ About Magento 2 Payment Gateway Integrations
These are just a few of the most frequently asked questions about Magento payment gateway integrations:
1. What Is Magento and how does it function with a payment gateway?
Magento is one of today’s most advanced open-source e-commerce software platforms for creating and operating online retail businesses. The platform features the structure and customization tools necessary to fully develop state-of-the-art online stores, including order processing, inventory and customer account management, analytics, and much more.
2. How much do Magento 2 payment gateway systems cost to implement and use?
Costs for the use of a payment gateway for Magento 2 vary between retailers, but the general range of transaction fees ranges from around 2.6% to 4%. Some payment gateway providers charge no monthly subscription fee and some base their fees on individual business sizes and extent of needs.
3. What are Magento’s payment restrictions?
Magento 2 Payment Restrictions are exceptional tools designed to restrict payment methods in cases involving certain cart or product attributes, shipping addresses, customer groups, or other conditions. Your administrator can set conditions for you to activate payment restrictions that you need for your business.
Choosing Your Payment Gateway for Magento 2
There’s a lot to consider before you integrate a payment gateway. All of the 4 on the Magento payment gateway list of brands above offer a vast track record of reliability in the efficiency, security strength, and responsiveness expected of major industry providers.
Your chosen Magento e-commerce payment gateway should, above all, support the best customer experience for your shoppers. It should also be affordable for your business’s budget long-term. You’re well-advised to read reviews, visit providers’ websites, check BBB files, consult peers, etc. Educate yourself as much as possible on your options for this critically important piece of your retail operations.
Alex excels in creating and approving customization architecture, ensuring robust and efficient solutions for e-commerce platforms. His expertise in Magento allows him to effectively manage tech resources and drive technical projects to successful completion.
Alex excels in creating and approving customization architecture, ensuring robust and efficient solutions for e-commerce platforms. His expertise in Magento allows him to effectively manage tech resources and drive technical projects to successful completion.
