Stripe

Running an online business requires a seamless and secure way to accept payments — which is where payment gateways come in. But what is a payment gateway, and how does it work with WordPress sites? This comprehensive guide will break down everything you need to know, from the basics to choosing the right gateway for your EDD store. In this article, I’ll cover: What Is a Payment Gateway? Benefits of Using a Payment Gateway How Payment Gateways Work Types of Payment Gateways With Examples Choosing a WordPress Payment Gateway My Payment Gateway Recommendation FAQs Related to What Is a Payment Gateway? What Is a Payment Gateway? In eCommerce, there are several fundamentally important aspects of the online store. One of the most important is accepting payment from customers for the goods or services you offer. The system through which the payment is processed is often called a payment gateway. But what is a payment gateway? This label describes the system that handles the transfer of money from the customer to the store owner. In other words, a payment gateway acts as the crucial bridge between your online store and your customer’s bank or credit card. Think of it as the online equivalent of a point-of-sale terminal in a physical store. Its primary function is to securely transmit transaction information between the customer, your store, and the payment processor. Without a payment gateway, you simply can’t accept credit card payments or other types of online payments, making it a fundamental component of any successful EDD setup. Benefits of Using a Payment Gateway Aside from handling the transaction processing, a payment gateway has several other important functions. Streamlined Payment Processing Payment gateways automate payment collection and reconciliation. They make the handling of payments simpler and easier to set up. Before services like Stripe, PayPal, and Authorize.net were available, setting up a merchant account to process credit and debit card payments was a difficult, long, and labor-intensive process. Now it’s as simple as registering an account and connecting it to your eCommerce website with a few simple settings. Increased Sales Offering multiple payment options increases conversion rates. Payment gateways like Stripe make it easier to offer various popular payment methods on your eCommerce site. You can reach a wider audience and drive more conversions than you’d otherwise be able to. Payment gateways improve the customer experience. A smooth and secure checkout process enhances customer satisfaction. Enhanced Security Payment gateways protect your business and your customers from fraud. They are designed to keep customers’ information confidential and secure. In the best payment gateways, the customer’s payment information (credit card number and details, for example) never touches the website’s server nor is the information made available to the eCommerce store’s owner. The information is kept safe, secure, and confidential. How Payment Gateways Work Understanding the mechanics of a payment gateway can seem daunting, but it’s a straightforward process. In simple terms, a payment gateway system works behind the scenes to accept the payment from a customer and then facilitate the transfer of funds to the store owner’s bank account. The typical process looks like the following. Customer Checkout: The customer adds a digital product to their cart on your online store and proceeds to checkout. Payment Information: They enter their payment details (credit card number, expiration date, etc.) on your checkout page. Secure Transmission: Your eCommerce plugin securely transmits this sensitive information to the payment gateway. This is where the gateway’s security features (like encryption) become vital. Authorization Request: The payment gateway sends an authorization request to the customer’s bank or card issuer through the payment processor. Approval/Decline: The bank verifies the customer’s funds and approves or declines the transaction. Transaction Response: The payment gateway relays the response back to your store. Order Confirmation: If approved, your store processes the order, delivers the digital product to the customer, and notifies you of the successful sale. Funds Settlement: The payment processor transfers the funds from the customer’s bank account to your merchant account. Types of Payment Gateways With Examples While the core function remains the same, payment gateways come in different flavors. Below are the most common types of payment gateways you might encounter when setting up your online store. Hosted payment gateways redirect customers away from your site to the payment gateway’s secure server to complete the transaction. This simplifies PCI DSS compliance for you, as the sensitive data is handled entirely by the gateway. PayPal Standard is a classic example. Integrated payment gateways allow customers to complete the entire checkout process on your eCommerce site without being redirected. This provides a more seamless and branded experience. Stripe and Authorize.net are popular examples. Redirect payment gateways, similar to hosted gateways, redirect customers to a third-party page. But they’re often for specific payment methods like Alipay or Sofort. Choosing a WordPress Payment Gateway Nearly every online store requires a payment gateway to process payments. But not every business has the same requirements or factors to consider. Choosing an online payment gateway can be one of the most important decisions you make when setting up your store, so it is important to consider the payment gateway options carefully. Below are some key aspects to consider when researching, comparing, and choosing a WordPress payment gateway. Your eCommerce Solution If you’re using WordPress to create an online store, the two most popular eCommerce plugins to use are WooCommerce (physical products) and Easy Digital Downloads (digital products). Most WordPress eCommerce plugins offer built-in support for Stripe and/or PayPal. However, additional payment gateways and options available may depend on your plan or license. For instance, EDD Pro users have access to a wide range of payment gateway integrations via Stripe. Supported Payment Methods Ensure the gateway supports the payment types your customers prefer. Some popular options include: Debit and credit cards Digital wallets like Apple Pay and Google Pay Buy now, pay later (Klarna, Afterpay) ACH/Bank transfers Does it support all necessary billing features needed for your business model? For instance, consider whether you need to support

One of the best ways to reduce eCommerce abandonment is by letting customers choose a payment method at checkout. Offering multiple payment options enhances the shopping experience and boosts conversion rates. But what’s the best way to go about it? If you’re a WordPress user, you can do it in a few simple steps! Easy Digital Downloads makes it easy to set up multiple payment methods to streamline your checkout process. In this article, I’ll cover: Why Offer Multiple Payment Methods? Deciding Which Payment Methods to Offer Add Multiple Payment Methods With EDD 1. Install Easy Digital Downloads 2. Connect Stripe Payment Gateway 3. Configure Preferred Payment Methods 4. Customize Your Payment Form and Checkout Page 5. Test Your Payment Methods and Setup FAQs on WordPress Payment Methods Why Offer Multiple Payment Methods? Imagine walking into a store and being told you can only pay with one specific type of credit card. Frustrating, right? The same principle applies to online shopping. Customers have diverse preferences when it comes to remote transactions and contactless payments. Limiting their choices can lead to shopping cart abandonment and lost sales. Let’s look at some of the top reasons to incorporate multiple popular payment methods. Increase Conversion Rates Catering to diverse customer payment preferences removes potential barriers to purchase. This translates to higher conversion rates, as customers are more likely to complete a purchase when they can use their top payment choice. Enhance the Customer Experience Providing a smooth and convenient checkout process boosts customer satisfaction and loyalty. It creates a positive impression and encourages repeat business. Expand Global Reach Accepting global payments unlocks the potential of your online store to tap into an international market. Supporting multiple currencies and payment preferences can attract customers from around the world. Build Trust and Credibility Offering secure and recognized payment options instills trust in your online store. Customers are more likely to feel confident making purchases when they see familiar and reputable processors available. Meet Evolving Customer Expectations As technology advances and customer preferences shift, payment trends are constantly evolving. Letting customers choose a payment method demonstrates adaptability and a commitment to meeting their ever-changing needs. Deciding Which Payment Methods to Offer To provide a seamless customer experience, offer a variety of options to help customers choose a payment method with ease. This includes supporting popular methods like credit and debit cards, as well as alternative payment methods such as bank transfers and ACH payments, digital wallets and mobile payments, and buy now, pay later options. A Survey by Aquired.com found that nearly 70% of online shoppers name Apple Pay or Google Pay as the preferred method. Payments via debit card and credit card payments came in second. Mobile and digital wallets are increasingly popular. Statista research found that mobile wallets accounted for approximately half of global eCommerce payment transactions in 2023 alone. This makes it the most popular online payment method worldwide. It also highlights the importance of providing customers with frictionless checkout experiences. When determining which methods to provide your eCommerce customers, consider several key factors. First, ensure that your online payment gateways are reliable and secure. Customers’ personal and financial information must be protected. Any payment processor you choose must have a strong reputation for security. Additionally, consider the payment processing fees associated with each gateway. Select options that are cost-effective for both you and your customers. Add Multiple Payment Methods With EDD If you sell digital products, the best way to add multiple payment options in WordPress is with the Easy Digital Downloads plugin and Stripe payment gateway. With Stripe and EDD, you can: Save payment details for faster checkout Monitor early fraud warnings to prevent chargebacks Approve or decline refunds within WordPress Much more Below, I’ll walk you through the step-by-step process and show you how to easily let customers choose a payment method on your WordPress site. If you’re already an Easy Digital Downloads and Stripe user, feel free to skip ahead to Step 3. Don’t have a WordPress website yet? Get one set up in no time through SiteGround Managed EDD hosting. Feel free to use our step-by-step guide on creating an online store in WordPress. 1. Install Easy Digital Downloads Easy Digital Downloads (EDD) is a powerful and user-friendly WordPress plugin designed to sell digital products. While the free version includes the standard Stripe payment gateway, I highly recommend upgrading to an EDD Pro plan. This eliminates Stripe transaction fees and gives you access to more payment options.  Once you choose your plan and download the EDD plugin, install it on your WordPress site. Go to Plugins » Add New Plugin » Upload Plugin » Choose File. Then click on Install Now followed by Activate Plugin. This enables the plugin on your WordPress site and adds a new Downloads menu item to your admin area. Click Get Started to run the EDD Setup Wizard. This wizard guides you through some basic configuration steps.  For instance, you’ll be asked to provide your store’s name, base country, and currency. You can also choose the appropriate settings for your business. The wizard prompts you to connect with and set up the Stripe payment gateway. You can do this now or configure it later in the EDD settings. I’ll cover this in more detail in the next step. 2. Connect Stripe Payment Gateway EDD has Stripe built in as a payment gateway. You can set it as your Default and Active Gateways under Downloads » Settings » Payments. When you’re done, click on Save Changes. If you didn’t connect Stripe to your site with the setup wizard, go to the Stripe tab within the Settings » Payments menu. Next, select Connect with Stripe. If you already have a Stripe account, you’ll be prompted to log in. If you don’t have an account, you’ll be guided through the free signup process. After logging in or signing up, Stripe will ask you to authorize the connection between your Stripe account and your WordPress website. Review