Updated Guide to Types of Payment Gateways for WooCommerce: Pros, Cons & Tips

Jan 15, 2024 | eCommerce

Reading Time: 12 minutes
Kevin Fouche

Updated Guide to Types of Payment Gateways for WooCommerce: Pros, Cons & Tips

Posted by Kevin Fouche, Pixel Fish Director

Kevin handles the planning, design, launch and training of every website that Pixel Fish creates. He ensures that every website is highly engaging and aligned with our client’s goals. With over 20 years of design and web industry experience to draw upon, Kevin aims to pass on his knowledge to our clients and like-minded businesses wanting to grow their online presence.

Choosing the right types of payment gateways for WooCommerce directly influences how customers interact with your checkout process and your store’s success. In a no-fluff format, this article provides a practical overview of WooCommerce’s payment options, from gateway giants like PayPal to cutting-edge choices like digital wallets and crypto payments.

Find out which methods will satisfy your customers’ preferences and boost your bottom line, all without complicating your setup.

Key Takeaways

  • WooCommerce supports a variety of payment methods, providing convenience and enhancing customer experience, with popular gateways, including PayPal, Stripe, and Square.
  • Offering multiple payment options, including traditional methods like credit cards and alternative payments like cryptocurrencies and digital wallets, can attract a broader customer base and increase sales.
  • When selecting payment gateways for WooCommerce, it is important to consider factors like target audience preferences, transaction fees, security standards, and integration capabilities to ensure a smooth and secure shopping experience.

Understanding WooCommerce Payment Methods

Running an online store involves a critical component known as the payment process, which significantly impacts customer experience. The smoothness of transactions and security of financial information is essential for customers when making purchases, thus highlighting the importance of payment gateways.

Some commonly used payment gateways include PayPal, Stripe, Square and Authorize.net. These secure online platforms offered by reputable providers ensure efficient processing of payments and contribute to creating a positive shopping experience for your clients.

Selecting the right payment and gateway providers is crucial in achieving this goal and choosing an appropriate processor that integrates seamlessly into your overall system.

Essentially acting as virtual versions of physical point-of-sale terminals in retail stores worldwide, payment gateways serve as services authorizing credit or debit card transactions for e-commerce businesses. To guarantee optimal performance and safety measures during these processes within digital channels, it’s important to understand precisely how they operate before deciding on any one platform best suited to fulfil specific needs accordingly.

To maintain high-quality user experiences, it is important to use reliable methods such as secure electronic systems. This applies to modern-day businesses of all types, including those that accept credit or debit cards. It is necessary to provide all the required information about key components and features in a proficient form, while also allowing customers to choose their desired functionality at checkout.

This approach has proven useful globally and has led to successful growth in the industry. By using unique and trustworthy features, businesses can assure users that their information is protected and that they are being treated in a sensible and secure manner. This helps to build confidence and trust among individuals, which leads to increased revenue.

Users expect to feel appreciated and safeguarded, and they want to be protected from any risks. It is advisable to use trustworthy safeguards that have been executed with care and attention to detail. This approach involves handling procedures in a thorough, consistent, and mature manner. It is important to exceed the boundaries of what is required and to offer solutions that are familiar and easy to use. This will refine the eligibility of supporting resellers and wholesalers and will help to ensure that everyone involved in the process is satisfied with the outcome.

What is WooCommerce?

WooCommerce is a popular plugin for WordPress, the most widely used content management system. It was created by WooThemes and provides an easy-to-use platform for transforming WordPress sites into functional online stores. With over 3.5 million e-commerce websites worldwide now powered by WooCommerce, it caters to various businesses such as real estate agencies and artists.

Thanks to its wide range of payment options and integrations, WooCommerce holds a significant market share of 20.1% among eCommerce platforms.

Importance of Payment Methods

Effective payment methods are crucial for the success of any e-commerce platform. They serve as both a payment gateway and means to facilitate transactions, enabling customers to complete their purchases with ease and convenience. The option to choose from various payment methods adds value to the online shopping experience for consumers.

Many popular options exist when making payments through an online store, including credit or debit cards, PayPal, Apple Pay, Google Pay, bank transfers and cryptocurrencies. These diverse choices offer customers flexibility in selecting their preferred payment method, which can greatly enhance satisfaction levels while browsing products/services on a website.

Offering multiple payment options proves advantageous not only for attracting more business but also for generating increased revenue streams by catering effectively to different customer preferences. Besides widening the consumer base and helping boost sales figures, it works wonders for gaining trust & fostering brand loyalty among them over time.

Business owners who provide clients with multiple payment modes also tend to unlock higher chances of keeping them happy as this leads to easier transactions and other checkout procedures.A satisfied clientele would lead to repeat orders and higher ticket size thereon.

Including a variety of payment patterns ultimately paves the way for successful business strategies revolving around higher profitability standards overall.

Built-in WooCommerce Payment Options

WooCommerce offers a variety of payment options that make it convenient for businesses to set up their online store. These built-in choices include Direct Bank Transfer (BACS), Cash on Delivery (COD), and PayPal, each with its own benefits and disadvantages tailored to the specific needs and preferences of both the business and its customers.

Having a good understanding of these available payment methods can help you determine which ones are suitable for your online store.

Direct Bank Transfer (BACS)

BACS, also known as Direct Bank Transfer, is a payment option that enables customers to transfer money directly from their personal bank account to the merchant’s business bank account. It is considered a reliable and uncomplicated method since it involves no online transactions.

There may be instances where payments are delayed or unsuccessful due to mistakes or delays in the banking process.

Even though BACS has its limitations, it remains a secure payment method within WooCommerce because it eliminates the need for online payments by providing direct transfers between merchant accounts.

Cash on Delivery (COD)

COD is another payment option available in WooCommerce. It allows customers to place orders without making an online payment, and the order will be marked as ‘Processing’ until it is paid upon delivery. This can benefit those who cannot make payments through other methods or prefer paying cash directly.

Using this method carries risks for businesses such as the potential of non-delivery if a customer refuses to accept their package at delivery. While COD may provide convenience for some customers without access to alternative payment methods, businesses need to consider its potential drawbacks when offering this option.

PayPal Standard

PayPal Standard is a frequently used payment gateway that allows customers to make payments using their PayPal account or credit card. One of its key benefits is its user-friendly interface, making it easy for businesses to integrate and manage.

As a Redirect Gateway option, PayPal takes customers away from the checkout page to complete the transaction process. This may potentially disrupt the seamless customer experience during online purchases. Despite this drawback, many WooCommerce users still trust and rely on PayPal as their preferred payment gateway due to its wide usage and reliability.

Paypal Payments Pro

PayPal Pro is an enhanced version of PayPal Standard that offers additional capabilities like a hosted checkout payment gateway and fraud protection without any extra cost. Unlike the standard option, this allows for a smooth transaction process as customers can remain on the merchant’s website throughout.

This not only enhances user experience but also grants more control to merchants over their checkout procedure.

Popular WooCommerce Payment Gateway Extensions

To the existing payment options, WooCommerce also provides support for various extensions of payment gateways that can improve the online store’s ability to process payments. These helpful add-ons enable integration with well-known payment processors and gateways such as Stripe, Authorize.net, Square and Braintree.

Offering multiple choices for processing transactions through different payment gateway providers and services not only benefits customers from a more convenient experience but can also lead to an increase in conversions and overall sales on your e-commerce platform.


Stripe is a comprehensive payment solution that facilitates online payments for businesses. It can process various types of international payments now, such as credit cards, digital wallets and international currencies.

The A Closer Look at Stripe plugin provides several advantages when integrated with WooCommerce:

  • Business owners can directly receive payments using A Closer Look at Stripe’s API.
  • Customers experience a smooth transaction procedure.
  • Adhering strictly to PCI DSS requirements guarantees secure handling of credit card details.


Unpacking Authorize.net reveals it to be a widely-used payment gateway that seamlessly integrates with WooCommerce, allowing businesses to accept credit card payments and eCheck payments. Its advanced features include fraud protection and customer profiles.

Through Unpacking Authorize.net, companies can effectively manage their transactions via a secure merchant account for an easy and efficient payment process tailored to their customers’ convenience.


Square is a multipurpose payment solution that combines the functionalities of a payment processing system, inventory management and customer engagement tools. This comprehensive platform offers businesses a seamless process for accepting credit card payments both online and in person.

With the Understanding Square plugin for WooCommerce, integrating this secure payment gateway into your virtual store becomes effortless, ensuring a smooth shopping experience for customers looking to make purchases using their preferred payment method with credit cards.


Braintree is a payment gateway that offers great flexibility and support for various forms of payments, such as credit cards, PayPal, and digital wallets. It provides advanced features like automated retries and 3D Secure 2 authentication to enhance the payment experience.

With secure transactions at its core focus point, Braintree ensures seamless processing for your customers while offering customizable options through its integration with the WooCommerce plugin designed specifically keeping in mind the requirements of your business.

Alternative Payment Methods for WooCommerce

Even though traditional forms of payment like credit cards and bank transfers are still commonly utilized, online payments such as alternative methods are becoming increasingly favoured by those who shop online. These can include cryptocurrency transactions, Buy Now Pay Later solutions, and digital wallets.

Integrating alternative payment choices into your WooCommerce store not only accommodates a wider variety of customer preferences but also improves the overall shopping experience for all users. This includes utilizing different approaches to making online payments beyond just using credit cards or transferring money from their banks.

Cryptocurrency Payments

The use of digital currencies, such as Bitcoin and Ethereum, is on the rise for online transactions. By incorporating cryptocurrency payments into their systems, companies can expand their customer reach while providing a secure and streamlined payment process.

To attract more customers, accepting cryptocurrency payments also offers significant cost savings with lower transaction fees compared to traditional payment methods. This makes it an appealing option for businesses and consumers looking for a budget-friendly approach to purchasing or completing transactions online.

Buy Now, Pay Later solutions

Integrating Buy Now, Pay Later solutions into WooCommerce is effortless, making it possible for businesses to provide their clients with smooth payment experiences. This solution allows customers to purchase items and pay in installments, making them more affordable. As a result, businesses can increase their sales and customer loyalty.

This payment option is especially popular among younger generations who prefer flexibility and budget-friendly options when purchasing. By offering Buy Now, Pay Later solutions, businesses can appeal to this demographic while expanding their customer base.

In modern Wallets

Incorporating the digital age, data breaches and online fraud are becoming increasingly common, leading to concerns over the security of online transactions. However, with cryptocurrency payments on WooCommerce, businesses can offer customers a more secure payment option.

Currencies use blockchain technology, which provides a high level of encryption and digital wallets such as Apple Pay and Google Pay into your WooCommerce store, allowing for a quick and secure payment method through mobile devices. This option offers convenience to customers, making the overall shopping experience more efficient.

Aside from its ease of use, digital wallets also offer advanced security measures that make them a reliable choice for online transactions. Utilizing this form of payment can provide peace of mind for both you and your customers in terms of protecting sensitive information during purchases made on your website.

Tips for Choosing the Right Payment Gateways for Your WooCommerce Store

Selecting the appropriate payment methods for your WooCommerce website is vital in ensuring a smooth and convenient shopping process for your customers. It can be challenging to determine which best payment gateway options to provide. To assist you in making an informed decision, here are some points worth considering when choosing the suitable payment methods.

Assess Your Target Audience

Knowing your target audience is essential in selecting the most effective payment methods for your e-commerce platform. It’s crucial to consider factors like the demographics of your customers, their favored payment options, and the nature of your merchandise or services.

By customizing your available payment choices based on what appeals to your clientele, you can enhance their overall shopping experience and potentially drive up sales.

Consider Transaction Fees and Costs

When selecting a payment gateway, it is essential to consider the potential impact of transaction fees and costs on your profits. Each payment gateway has its own fee system, so carefully comparing these options before making a decision is crucial.

It’s important to note that while opting for the cheapest option best payment gateways may seem attractive, it could compromise aspects such as security or user experience in your payment process. Prioritize finding a balance between cost-effectiveness and ensuring a smooth and secure transaction process when choosing from various payment gateways available.

Ensure Security and Compliance

The safety and security of online transactions is a top priority. It is important to select a payment gateway that follows recognized industry standards such as PCI DSS. This not only safeguards your customers’ sensitive payment data, but also builds confidence with them, potentially resulting in higher sales and customer retention.

Evaluate Integration and Compatibility

When selecting a payment gateway, it is important to ensure that it can be easily integrated with your current WooCommerce setup. This will guarantee a hassle-free payment experience for your customers and minimize any potential technical complications.

Verify the compatibility of the chosen payment gateway with both your preferred e-commerce platform and other software utilized in your business operations. It is crucial to make sure all systems are able to work seamlessly together before finalizing a decision on which payment gateway to use.

Benefits of having multiple payment gateway options on your e-commerce site

Incorporating a variety of payment gateway choices in your online store can greatly improve overall satisfaction and ease for customers. This approach caters to diverse customer preferences, leading to a decrease in cart abandonment and an increase in successful transactions.

Studies suggest that by providing multiple payment options, businesses could see up to a 30% rise in conversions.

Online Payments Summary

Selecting suitable payment methods for your WooCommerce store is essential to provide shoppers a smooth and protected shopping experience. The choice of options, whether traditional such as credit card payments or alternative like cryptocurrencies, can significantly impact sales and customer satisfaction.

By understanding your target audience’s preferences, taking into account transaction fees and associated costs, ensuring security measures are in place while complying with regulations, as well as considering integration compatibility factors – you can make an informed decision when it comes to the right payment methods for your WooCommerce store that will ultimately increase sales.

Frequently Asked Questions

Which payment method is best for WooCommerce?

The top choice for payment on WooCommerce is Stripe, a widely recognized and preferred method by developers worldwide. It supports multiple cards and various payment options such as Google Pay, AliPay, and the popular Apple Pay.

How do you take payments with WooCommerce?

To accept payments using WooCommerce, access the plugin’s settings and navigate to Payments. Fill in all necessary details for direct bank transfer and activate WooCommerce Payments.

What payment processor do you need for WooCommerce payments?

To activate WooCommerce Payments, you must have a registered online business in a supported country. Your website should be equipped with WooCommerce 4.8+, WordPress 5.7+, PHP 7.0+ and an SSL Certificate for live mode to ensure secure transactions can take place through HTTPS connection.

Your company needs to be based in a country where this payment service provider is available and fulfill the requirements mentioned above regarding security measures and platform versions before utilising WooCommerce Payments effectively on your site.

What are the types of payment methods for e-commerce?

E-commerce offers a range of payment methods such as debit and credit cards, digital wallets, bank transfers, cash on delivery, mobile payments, and buy now, pay later options. These various types cater to customers’ needs for secure and convenient transactions.

Among the many available payment methods are prepaid cards and cryptocurrency, which provide alternative modes of making purchases online. With these choices, shoppers can select the most suitable option based on their preferences or circumstances when completing an ecommerce transaction.

What are the advantages of using a payment gateway like Stripe?

One of the benefits of utilizing a top payment gateway provider such as Stripe is its ability to accommodate multiple forms of payments and its compliance with PCI DSS regulations, guaranteeing secure handling of credit card information for clients. This makes it a reliable and adaptable option for processing payments.

Stripe’s support for various payment methods ensures that customers have convenient options when making transactions while also adhering to industry standards regarding credit card security. As a result, the results were disappointing.

What fees do most payment gateways charge?

Typically , payment gateways charge fees for processing payments and may also include additional charges for services such as fraud protection or currency conversion. However, Stripe is known for its transparent fee structure, with a flat rate of 2.9% + $0.30 per successful transaction. This eliminates any hidden fees or surprises for merchants and provides a clear understanding of their costs.

Another advantage of Stripe’s pricing model is the absence of setup fees or monthly subscription fees, making it an affordable option for businesses of all sizes. Additionally, merchants can easily track their transactions and view detailed breakdowns of their fees on the Stripe dashboard.

What forms of Identification are required to attain a payment gateway account?

Typically , payment gateway providers require merchants to provide some form of identification in order to create an account and start using their services. This is necessary for security purposes and to comply with anti-money laundering regulations.

Does Woo commerce work with Apple Pay?

Yes , Woo commerce is fully integrated with Apple Pay, making it a seamless experience for customers to make payments using their iOS devices. This integration also supports the use of Touch ID and Face ID for added security.

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Further Information
Why you should use Elementor for your new WordPress Website
The Best Social Media Feed Plugins for WordPress
How to Choose The Best Payment Gateway for WooCommerce
How to Create the Perfect WooCommerce Website
Stripe vs PayPal: Pros and Cons. Which One Should you Choose?
How to Build the Perfect E-Commerce Checkout Experience
How much website traffic should my business be Getting?
Top Video Hosting Solutions for WordPress Websites
10 Creative Ways to Use Video on Your Website
How To Write The Perfect About Us Page for your business website
10 Proven Strategies to Improve Your Landing Page Performance
Practical Design Website Tips for a Successful Online Presence
Creating a Business Competitor Analysis: A Comprehensive Guide
Unveiling the Best Website Heat Map Applications
Top Appointment Booking Platforms for WordPress Websites

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