What’s the Best Payment Processor for Shopify in 2024?
So, you’ve got your awesome store up and running, and now it’s time to pick the best payment processor for Shopify – Don’t worry, we’ve got your back!
In this super simple guide, we’ll walk you through the top payment processors and give you all the knowledge you need to make a smart choice.
Here’s what’s in store:
Let’s get started on this payment-processing adventure!
Why the Right Payment Processor Matters
Selecting the right payment processor for your Shopify store is essential for a successful e-commerce venture – It’s as important as ice at a lemonade stand.
Let’s explore why this decision is crucial and how it can impact your business.
Here are some possible consequences of choosing the wrong payment processor:
- Missed Sales Meltdown – About 44% of online shoppers abandon their carts due to payment issues (Baymard Institute), leading to lost sales opportunities.
- Slow-Motion Checkout – If your payment processor is slow, it can frustrate customers, and 47% of online shoppers expect a page to load in 2 seconds or less (Forrester Research)… Slow processing can also decrease the likelihood of customers returning to your store.
- Security Slip-up – Inadequate security measures can lead to data breaches, potentially costing your business an average of $4.35 million+ (IBM).
- International Fiasco – Limiting payment options to local methods can deter international customers. Around 86% of global consumers prefer sites with local currency prices, while up to 70% are more likely to buy from sites with content in their language (PayPal).
And, here’s what happens when you find your payment processing soulmate:
- Smooth Transactions, Happy Customers – A reliable payment processor reduces cart abandonment and improves customer satisfaction, as 60% of customers won’t return after a bad checkout experience (BlueSnap).
- Speedy and Secure – A fast and secure payment processor is crucial, as a one-second delay in page response can lead to a 7% drop in conversions (Akmai).
- Global Reach and Multi-Currency Support – The global e-commerce market is projected to reach $7.39 trillion by 2025 (eMarketer), making cross-border shopping more popular. Having a payment processor with multi-currency support can help you tap into new markets.
- Easy Integration with Shopify – Choosing a payment processor that integrates seamlessly with Shopify saves time and effort, allowing you to focus on growing your business.
With the right payment processor, your Shopify store will flourish, customers will be satisfied, and your e-commerce journey will be a refreshing success!
Top Payment Processors for Shopify: The Fab Five
When it comes to choosing the perfect payment processor for your Shopify store, you want nothing short of excellence. Fear not, for we’ve handpicked the Fab Five payment processors for 2024, each with its unique flair and features. Let’s take a closer look at these top-notch dance partners!
1. Easy Pay Direct
- Setup Fee: $99
- Monthly Cost: $29.99
- Transactions Cost: $0.29 + 2.44% per transaction
- Features: Online Payments, Recurring Billing, Email Invoices, Credit Card & ACH Processing, Check Cashing
- Best for: Businesses seeking affordable payment processing with industry-low rates and a satisfaction guarantee.
Easy Pay Direct (EPD) offers a cost-effective solution with a $99 setup fee and a monthly cost of $29.99. Their transaction fees are competitive at $0.29 plus 2.44% per transaction.
You can enjoy various features, including accepting online payments, setting up recurring billing, sending email invoices, and processing both credit cards and ACH payments. Plus, you can cash checks directly from your computer.
The difference between EPD and more popular payment processors is that you can use their platform even if your niche or account is considered high-risk. Everyday processors like Stripe and PayPal shut down thousands of accounts, but this isn’t a complaint from EPD users.
And, their “Easy Guarantee” promises a refund of the setup fee and the first month’s charge if you’re not satisfied within 30 days.
If you’re looking for straightforward Shopify payment processing at competitive rates, EPD is a top choice for your store’s transactions.
→ Start processing Shopify payments with Easy Pay Direct today.
2. National Processing
- Monthly Cost: $9.95/mo
- Transactions Cost: 0.29% + $0.15
- Free Reprogram of Existing Equipment
- Free Gateway Setup
- Free Mobile Reader
- Best for: Small to medium-sized e-commerce businesses seeking cost-effective payment processing solutions.
National Processing‘s “eCommerce” plan is an excellent choice for small to medium-sized e-commerce businesses. With its affordable monthly cost of $9.95 and a competitive transaction fee of 0.29% plus $0.15 per transaction, this option can help businesses save on payment processing expenses.
Additionally, the free services, including reprogramming existing equipment, gateway setup, and a mobile reader, make it even more enticing for startups and growing online stores.
If you’re looking for a budget-friendly and reliable payment processing solution for your Shopify store, National Processing’s “eCommerce” plan could be your perfect match.
→ Sign up for an account with National Processing today.
3. PayPal
- Transaction Fees: Varies by location and transaction volume.
- Features: Global Payments, PayPal Checkout, PayPal Credit, Seller Protection, Fraud Protection.
- Best For: Businesses looking for a widely recognized and trusted payment processor with global reach.
PayPal is a household name when it comes to online payments. It offers a range of services, including PayPal Checkout for quick and secure transactions. PayPal Credit allows customers to make purchases and pay over time, encouraging sales. Additionally, PayPal offers seller protection and fraud protection, giving you peace of mind.
Transaction fees with PayPal vary based on your location and transaction volume. It’s widely accepted worldwide, making it an excellent choice for businesses with international customers, though the platform is known to hold funds.
Recommended: Add PayPal to Shopify in 10 Straightforward Steps (+Bonus Tips)
4. Stripe
- Transaction Fees: Varies by location and card type.
- Features: Developer-Friendly API, Payment Gateway, Subscription Billing, Fraud Protection.
- Best For: Businesses seeking flexible payment processing and seamless integration for custom solutions.
Stripe is renowned for its developer-friendly API, making it easy to integrate with your Shopify store and create custom payment solutions. It provides a robust payment gateway and supports subscription billing for recurring revenue models. Stripe also offers fraud protection to safeguard your transactions.
Transaction fees with Stripe depend on your location and the type of card used. It’s an excellent choice for businesses looking to customize their payment processing and offer a seamless checkout experience.
Recommended: Shopify Chargebacks: How to Avoid & Manage Payment Reversals
5. Shopify Payments
- Transaction Fees: Varies based on the Shopify plan (Basic: 2.9% + 30¢, Shopify: 2.6% + 30¢, Advanced Shopify: 2.4% + 30¢).
- Features: Native Integration, Instant Payouts, Fraud Analysis, No Transaction Fee on Top of Shopify’s Fee.
- Best For: Shopify store owners seeking a streamlined and integrated payment processing solution.
Shopify Payments is Shopify’s native payment processor, seamlessly integrated with your Shopify store. It offers instant payouts, so you get your funds faster. Shopify Payments includes built-in fraud analysis to protect your business from suspicious transactions.
Transaction fees with Shopify Payments vary based on your Shopify plan, but they are competitive and have no additional transaction fees on top of Shopify’s fee. It’s the ideal choice for simplifying your payment processing within your Shopify store.
Each of these payment processors brings unique advantages, so choose the one that aligns best with your business needs and goals for a smooth and successful e-commerce journey!
Recommended: Chargeflow for Shopify: Your Shield Against Lost Revenue
Factors to Consider When You Pick a Payment Processor
When choosing a payment processor for your Shopify store, keep these key factors in mind:
- Transaction Fees – Compare fees among processors. Consider additional features and services offered. Balance fees with the value each processor provides.
- Security Measures – Look for PCI DSS compliance and encryption. Ensure customer financial data is protected. Prioritize processors with robust security measures.
- Payment Options – Offer Credit/Debit Cards and popular digital wallets. Cater to diverse customer payment preferences. Improve checkout experience and conversion rates.
- Integration Options – Ensure seamless integration with Shopify. Look for established integrations. Provide a smooth and glitch-free checkout experience.
- Regional Compatibility – If you offer international shipping, choose a processor with multi-currency support. Handle international transactions seamlessly. Boost customer confidence and reduce cart abandonment.
By considering these features, you’ll find the ideal payment processor that dances in sync with your Shopify store, making your e-commerce journey a success!
Recommended: 9 Best Products to Sell on Shopify
Frequently Asked Questions
Does Shopify have a payment processor?
Absolutely! Shopify Payments is their in-house star, and it’s ready to rock your sales dance! Shopify makes it easy for merchants to get started with payment processing by offering their own payment solution. Shopify Payments is fully integrated into the Shopify platform, allowing you to manage your payments and orders seamlessly, which is fine for newbie sellers.
Is PayPal best for Shopify?
PayPal’s pretty popular, but remember, it’s all about finding the partner that fits your style and needs. It is a widely recognized and trusted payment method used by millions of customers worldwide, but they are known to hold merchant funds. While PayPal works for many merchants, consider less talked-about processors like Easy Pay Direct or National Processing, as they offer unique features that might better suit your specific requirements.
Does Shopify work with Stripe?
They sure do! Stripe is a popular payment gateway known for its ease of use, robust features, and developer-friendly API. Merchants using Shopify can seamlessly integrate Stripe as their payment gateway to accept credit/debit card payments. Some merchants shy away from Stripe because of excessive chargebacks, but there are ways to mitigate them.
Ready to Rock the Payment Dance Floor?
Now you’re all set to pick the perfect payment processor that’ll keep your Shopify store dancing smoothly.
So, go forth, make those transactions twirl, and make your customers feel like they’re on cloud nine.
Cheers to your online sales success!
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Ashley is a freelance copywriter and the founder of Aurajinn. She's been working in eCommerce and technology for over a decade. Here, she shares her best cyst-like gems of wisdom to help new and intermediate online sellers level up their operations.
