What is a payment provider?
A payment provider is a system used to process customer transactions for your business.
When the customer uses a credit card to buy a product, then payment providers capture the payment, process it, and transfer the payout to your account.
Payout: Payout is the money you receive from an order after any applicable fees have been deducted.
What to consider when choosing a payment provider?
Before choosing a payment provider to consider, there are a few key factors that you should keep in mind. Here are the best key points one by one:
Location is the first key factor that you should consider. It depends on the location of your business. Suppose, if you are running a business in USA then you can choose among all payment providers mentioned on the Shopify website.
You can find out the payment providers that are available in your area by just clicking on the country option. A list will come up with all Payment providers available in a particular country.
The next key point is customer preferences. Research your target market to know the customers' preferences in your niche. Then collect and analyze, what payment provider is your target audience using the most to pay their bills. For example, they use a Credit card, debit card, PayPal, Google Pay, Apple Pay, or something else.
A well-researched target market customer preferences help you to choose the most suitable payment provider. It enhances the credibility of your store too.
The next point you should consider is Store eligibility. Store eligibility is your business supported by payment providers. Because every payment providers have different rules and regulations.
For example, some payment providers won't allow the selling of adult products, or may some payment providers will hold the payment until they have been delivered.
Payout schedules are how often payment providers send the money to your bank account. Payout schedules vary from one payment provider to another. You can check out the payout policies of different payment providers and then choose the best suitable.
For example, Shopify payments have their own terms and policies
Fees are another point that you should consider. Fees can be of two types Transaction fee and Credit card fee. The different payment providers charged differently.
Transaction fee: The transaction fee is what the payment provider charged whenever a transaction occurred.
Credit fee: The credit fee is when users do payment through a credit card then the payment provider charged an amount for the transaction.
So, you should always check what they will be charged, what are the rates, and how they often charge.
How to Set Up Third Party Payment Providers in Shopify?
You can easily set up a payment provider in just a few clicks. You only need to have some business knowledge and bank account details.
- To check the available payment provider “click on the setting” on your Shopify backend panel
- Head over to Third Party Providers
- Click and Choose third-party provider
- Select the provider that you want to use from the list
- Enter your payment gateway account credentials for the provider that you selected
- Click Activate
You can choose the payment provider after researching and keep the different factors in your mind as mentioned above. It's up to you what payment provider will be best for your customers, business, and locality.
If you still find some difficulties then you can hire a Shopify expert for help or buy a predefined payment gateway setup task from EcomHeroes.