Last editedNov 20222 min read
An efficient payment processor helps build trust by offering a secure, user-friendly checkout experience for your customers. Yet with dozens of options on the Australian market, how can you choose the best payment processing software? Here’s what to look for as you compare your options.
What is payment processing software?
To make an informed decision, it helps to learn more about how payment processing software works. Payment processing involves three components:
Payment processor: transmits details of transactions between the merchant account and customer’s bank
Payment gateway: provides the front-facing interface for customers to input their payment details
Merchant account: serves as a holding pen for funds received from customers, giving time for settlement
You can purchase and manage these three components separately, but most of the best payment processing software will manage all three in a single, all-in-one package. Ultimately, payment processing software serves as an intermediary between the buyer’s and merchant’s banks, facilitating online payment.
What is the best payment processing software?
There’s no one-size-fits-all solution when it comes to payment processing software. Indeed, the best option will depend on your business size, budget, and payment needs. With that said, here are a few of the best options out there today.
GoCardless is a payments platform designed to help businesses take both recurring and one-off payments. Bank debit is ideal for recurring payments and subscription services, taking payments on their due date to help businesses avoid the stress of late payments. Highly rated for customer satisfaction, its processing fees are far lower than many other options. Businesses with an international presence can benefit from its global bank-to-bank network, which settles transactions in the currency of your choice.
You’re most likely familiar with PayPal, used by individuals and businesses of all sizes. It’s easy to set up a business account and start selling immediately, with no need to create a separate merchant account. Familiarity is one of the biggest pros of PayPal, which customers will likely be comfortable using. However, it’s better suited to one-off transactions rather than recurring payments. It also comes at a higher cost than some other options.
If you’re looking for payment processing software that can handle both in-person and online transactions, Stripe could be a good fit. This all-in-one payment processor facilitates credit and debit card payments as well as cross-border transactions and digital wallets. There are no setup or monthly fees, either. One thing to note is that Stripe is highly flexible with the potential to customise the product for your platform. However, to make the most of this feature you’ll need to have some development experience.
Many Australian ecommerce businesses choose eWay, which easily integrates with platforms including Magento and WooCommerce. This online payment system accepts bank transfers, electronic funds transfers (EFTs), credit and debit card payments, and others. It also comes with 24-hour technical support, along with built-in security features and PCI compliance. However, it’s only available to merchants with bank accounts in Australia, Singapore, Hong Kong, Macau, and New Zealand.
How to choose the best payment processing software
Australians are spoiled for choice when it comes to payment processing software, so how can you find the right one? Before signing any agreement, think carefully about your business’s needs and budget. If you’re new to business, PayPal offers an easy way to get started. If you already process a high volume of transactions, you’ll need a larger processor like Stripe. If you manage subscriptions and recurring payments, GoCardless will be the best fit. Compare features carefully to ensure your preferred payment types are supported.
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.