Fintech & Payment Trends

Choosing Payment Gateways for Magento – 8 Mistakes to Avoid

How to choose the Magento payment gateway plugin you need to drive sales everywhere you do business.

What Is a Payment Gateway?

Payment Gateways allow merchants to accept credit card payments and other payment types online by collecting customer and payment information and authorizing the transaction securely.  Magento offers a number of secure third-party payment gateways to choose from depending on the requirement of your business needs and your target audience. 

Magento offers retailers a platform to build and scale their ecommerce site with a wide range of features and functionality, enhanced by plugins for promotions, order processing, shipping, payments and more.  Choosing the right Magento payment plugin means carefully considering your needs as well as your customer’s preferences and aligning your checkout experience to payment preferences in every country where you do business.

What Payment Gateways Does Magento Include?

Magento 2 includes payment gateways from Authorize.net and PayPal by default.  While these options are adequate for some merchants, those looking to improve customer experience, offer additional payment methods and expand into new markets need to add one or more third-party payment extensions to Magento.

The Rapyd Payments Plugin for Magento Lets You Accept Preferred Payment Methods Worldwide, Including Cards, Bank Transfers, eWallets and cash

Why Add a Third-Party Payment Gateways?

Adding third-party payment gateways enable you to accept locally preferred payment methods, providing customers with a simple and frictionless experience that increases cart conversions. For many businesses there is a requirement to add payment gateways to accept payment methods that are preferred by customers or to support other strategic initiatives.

Adding Third-Party Payment Gateway Extensions to Magento Offers Many Benefits:

Offer Customers Local and Alternative Payment Methods

Merchants can use third-party payment gateways to ensure that customers, wherever they are located, are offered their preferred payment method in Magento during checkout. Depending on the market, this will tend to be a combination of options that can include credit and debit cards as well as cash for digital transactions.  

Trust plays a big part in the decision to purchase from an international website and overseas customers concerned about the security of the transaction and the protection of their information will look for payment options that they recognize and are comfortable with. 

Support Business Growth and International Expansion 

Merchants developing online stores for overseas customers will need to be able to support payments in those countries; accepting local currencies and adhering to local regulations. As merchants expand their business and customers across borders,  the ability to offer customers their preferred payment options is essential. 

  • As more B2B businesses look to buy and sell globally, they need to accept bank transfers for large orders that exceed credit card limits.
  • If risk is a concern for a business, additional payment methods reduce credit card chargeback fraud risk.  
  • Developing nations have become more accessible through mobile technologies, and many consumers prefer digital wallets on those mobile devices to cards.
  • Additionally, businesses selling in Eastern Europe,  Latin America, or developing nations may want to add cash-over-the-counter payment acceptance to reach customers who prefer cash or don’t have bank accounts.

Use Rapyd’s Magento Payments Extension to Expand into New Markets Globally

Making the right selection will support your business today and in the future with frictionless and secure payment processing. Making a mistake can undermine the confidence in consumers and increase the time and effort needed to successfully develop and grow. 

Avoid these Errors to Ensure the Payment Gateway(s) You Choose Drive Cross-Border Success

# 1 Not Considering the Payment Preferences In EVERY Country Where You Do Business

The right payment methods to offer customers depends on where they are located as well as their personal preferences. Although credit cards are often assumed to be the preferred payment method for online purchases, customers may be more familiar and comfortable paying with bank transfers, ewallets, or even cash. 

Understanding local customer behavior is critical for growing a global online business. International payment gateways or payment processing plugins need to support all of the payment methods used in the markets where you intend to sell and to automatically offer the right ones based on your customer’s and your business’s preferences.   

See what payment methods are preferred in your markets. Check out Rapyd’s Regional Payment Guides:

Asia Pacific

Latin America

Europe

# 2 Ignoring Fraud Monitoring and Prevention Software 

With fraud attempts increasing by 3.7% from 2019 to 2020 (ACI Worldwide), fraud management and identity verification are integral to the payment process. Although many of the best payment gateways for Magento include built-in fraud monitoring at no extra cost, merchants should certainly ensure that it is a feature when choosing their payment gateways.

It is essential that fraud solutions protect not only credit card and debit card transactions but also local and alternative payment methods like bank transfers and ewallets, while allowing merchants to enjoy the benefits of growth and country expansion. 

# 3 Not Using a Prebuilt Plugin or Magento / Magento 2 Payment Extension

A pre-built extension makes it easier for developers to integrate payment gateways into Magento. By choosing a payment gateway with a Magento extension time and effort can be minimized, while still allowing for the service to be tailored to the requirements of your business and the preferences of your customers. If you haven’t chosen a payment gateway or gateways look for ones with Magento extensions. If you have already chosen a gateway, check and see if it offers a Magento or Magento 2 payment extension

#4 Missing Out on Key Functionality

Looking beyond payment processing, the plugin chosen may also address some other unique business needs. Finding a single solution that includes the features and functionality needed can drive efficiency and reduce costs. 

  • If there is a need to offer a recurring service or subscription model, the gateway should support subscription payments. 
  • If the business is a marketplace, the plugin will need to support payments to sellers as well as split payments, and foreign exchange and single-currency settlement. 
  • For B2B organizations, digital invoicing may be a priority as well as accepting payments and making payouts to workers or suppliers. 
  • A third-party payment plugin that integrates with accounting or other business software can provide valuable insights and reporting. 

The choice made should focus on supporting goals including driving sales revenue and/or reducing transaction costs.  

#5 Ignoring Branding

Consistency is essential in branding.  creating and building brand experiences for customers through every touchpoint, across all channels. Your checkout page should tie into the look and feel of the online store. This creates a high level of trust and comfort for customers. A sudden break in this flow, to a payment page that looks noticeably different, can create friction and increases the risk of cart abandonment. The payment gateway must be customizable to deliver a shopping experience that is seamless for the customer.

#6 Not Thinking Globally

Merchants that take a truly global view can reach millions of new customers, and there’s never been a better time to support cross-border commerce in your ecommerce store. A truly global payment solution localizes payment experiences for every customer allowing you to reap the benefits of the global cross-border ecommerce opportunity. 

#7 Not Considering Security and PCI Compliance 

When selecting a payment processor for Magento, be mindful of its ability to meet global regulations and compliance standards such as PCI-DSS, and SCA. Rapyd’s Complete guide to Compliance, Security and Risk Management offers online merchants straightforward and practical advice on how to simplify compliance and risk management. 

#8 Not Paying Attention to Costs

Third-party Magento payment gateways charge transaction fees that merchants need to be aware of when making a selection. The services provided come at a cost, but these are not the same for every payment processor. Some charge hefty fees based on transaction volume, others offer low flat-rate pricing. With a range of fees and pricing structures available, merchants with Magento 2 stores need to select the solution that best allows them to manage their costs. 

Expand To New Markets Successfully With The Right Payment Plugin For Your Magento Store

A frictionless, smooth check-out experience is essential to ensuring that the online payment process is seamless for both your business and your customers. The right international Magento payment solution is an essential component of this experience and a driver of success for Magento stores, enhancing global payment capabilities and allowing businesses to reach new markets faster. The process of selection should focus on the business goals and consider the fundamental requirements for security, convenience and cost. 

 Try the Most Comprehensive Global Payments Plugin for Magento for Free 

Mark Stiltner

Mark Stiltner is a finance and fintech writer. From educating independent investment advisors on retirement plan management to helping families maximize their savings to educating businesses on global payment preferences, Mark has spent over a decade researching and educating audiences on complex financial topics. Mark has been a contributing author on blog articles and educational content for the Bank of Colorado, Pinnacle Bank, TD Ameritrade, First Data and Rapyd.

This website uses cookies.

Read More