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What Makes a Good Ecommerce Payment Provider

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The GoCardless content team comprises a group of subject-matter experts in multiple fields from across GoCardless. The authors and reviewers work in the sales, marketing, legal, and finance departments. All have in-depth knowledge and experience in various aspects of payment scheme technology and the operating rules applicable to each. The team holds expertise in the well-established payment schemes such as UK Direct Debit, the European SEPA scheme, and the US ACH scheme, as well as in schemes operating in Scandinavia, Australia, and New Zealand. See full bio

Last editedFeb 20232 min read

With many retailers pivoting to online sales, there are more ecommerce payment providers than ever. The checkout page can make or break your ecommerce store, so you’ll want to choose the right gateway. Start the process of comparison by defining what to look for in an ecommerce payment provider. From value for money to fraud protection, here are some key features to consider.

What types of ecommerce payment providers are there?

As you get started, it helps to understand a little bit more about how an ecommerce payment provider works. There are two main components needed to accept payments online:

Amerchant account is the business’s supplementary bank account where funds are held while the transaction is cleared. Once cleared by the payment processor and/or banks, they’re transferred into your usual business bank account.
Apayment gateway serves as the customer-facing third-party service that stores and transmits payment details to the processor or bank. It serves the same function as a POS terminal in a brick-and-mortar shop.

Some businesses will shop around separately for a merchant account provider and payment gateway. This gives the highest level of flexibility and control over payment processing. Yet today, many of the best ecommerce payment providers offer an all-in-one service that handles both aspects of payment processing for you. Common examples include Stripe and PayPal, both of which blend a merchant account with a payment gateway.

Key features of an online payments ecommerce service provider

With no further ado, here’s a handy list of what makes a good ecommerce payment provider.

1. Compatibility: How well does the payment gateway integrate with your existing platform and systems? If you already use a platform like Magento or Shopify, be sure that the online payments ecommerce service provider is compatible.

2. Variety of payment methods: Some customers prefer to pay with a debit or credit card, while others prefer digital wallets like Apple Pay or services like PayPal. The best ecommerce payment providers accept a wide variety of different methods to give customers as much choice as possible at checkout.

3. Security and fraud protection: Don’t skimp when it comes to security. A data breach can sink your business if customers don’t feel safe handing over their payment details. Be sure that your payment provider is PCI DSS compliant and obtain an SSL certificate to protect credentials.

4. Reliability of service: Make sure that your ecommerce payment provider provides a reliable service. When your payment gateway is down, this causes shoppers to abandon carts. From website crashes to glitches with currency, small technical issues lead to lost revenue.

5. User friendliness: Ecommerce customers expect a seamless, secure checkout, without too many steps or redirections. Ensure the customer journey is fast and easy to avoid shopping cart abandonment. You should also look for a provider that’s optimized for mobile devices, without the need to jump through extra hoops.

6. Value for money: Fees can vary significantly between different service providers. Make sure you understand both the per-transaction processing fees as well as any flat monthly rates involved with the service.

How to choose the best ecommerce payment provider

Not all ecommerce payment providers are created alike. To find the right fit, you’ll need to think about the features mentioned above as well as the size and needs of your business. You should also think about your customer demographic, including their regional preferences. Read reviews from other ecommerce businesses and see which platforms your competitors are using. Finally, compare fees to find a payment provider that suits your budget.

Whether you take one-off or recurring payments, GoCardless offers a money-saving solution. We combine ACH bank debit, payments intelligence, and open banking to pull payments directly from customer bank accounts for maximum convenience. This ensures timely payments for reduced stress for both customer and business. Easy to set up, we include hosted checkout flows with high converting payment pages that you can integrate with your ecommerce store. We also integrate with over 300 partners including invoicing software like Xero and others to keep your finances close at hand.

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.