# Ecommerce Payment Gateways Guide

**URL:** <https://onehack.st/t/ecommerce-payment-gateways-guide/120214>\
**Category:** Discussion & Solutions\
**Tags:** solved\
**Created:** [September 29, 2020, 10:42am UTC](https://onehack.st/t/ecommerce-payment-gateways-guide/120214 "2020-09-29T10:42:26Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Supporter](https://onehack.st/user_avatar/onehack.st/supporter/32/49885_2.png) [@Supporter](https://onehack.st/u/Supporter)\
**Post date:** [September 29, 2020, 10:42am UTC](https://onehack.st/t/ecommerce-payment-gateways-guide/120214/1 "2020-09-29T10:42:26Z")

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# E-commerce Payment Guide — How to Actually Get Paid Online

_Plain-English breakdown of payment gateways, checkout tricks, and what costs what._

* * *

## 🗺 The Money Collection Problem

> You built a store. People want to buy. But: which payment system won’t kill your margins, confuse customers, or require a CS degree to set up?

* * *

**Why this matters:**  
Wrong payment gateway = lost sales + high fees + support nightmares → right choice = customers trust you, checkout flows smoothly, you keep more money

**What’s covered:**  
✓ What payment gateways actually are (no jargon)  
✓ 6 main options compared (PayPal, Stripe, Amazon, Authorize, Intuit, Worldpay)  
✓ Real costs breakdown (fees that actually matter)  
✓ Checkout tricks that boost sales 20% (upselling, cross-selling)  
✓ Guest checkout vs forced signup (conversion killer exposed)

* * *

 ![image](https://onehack.st/uploads/default/original/3X/0/4/04c8eb426b4585886b123fdf1327bb943d836712.jpeg)

* * *

## Squeeze More Money at Checkout (Before You Even Pick a Gateway)

> **Upselling — The 'Go Large' Strategy**
>
> **What it is:** Offering upgraded versions at checkout.
> 
> “Want fries with that?” works because some customers will happily pay more if you just ask. Price-sensitive buyers stick with basic. Others don’t care and give you extra money.
> 
> ![image](https://onehack.st/uploads/default/original/3X/6/8/684d860dcf27a81d28b081a9eb3b7f13caff93e4.jpeg)
> 
> **Examples:**  
> → Larger size  
> → Premium version  
> → Extra features  
> → Different color/material
> 
> GoDaddy does this to the point of annoyance — because it works. Not asking = leaving money on table.

* * *

> **Cross-Selling — The 'Others Also Bought' Move**
>
> **What it is:** Suggesting related products during checkout.
> 
> Someone buys a camera? Show them memory cards, cases, lenses. Amazon built an empire on this.
> 
> ![image](https://onehack.st/uploads/default/original/3X/7/e/7e1ee108c3a296e77c725746cbb4d5b63abc5521.jpeg)
> 
> **Why it works:**  
> Customer already has wallet out → you’re shipping a package anyway → might as well sell them one more thing
> 
> Not using upselling + cross-selling = **missing 20% extra revenue**. In competitive online retail, that’s money you can’t afford to skip.

* * *

## What Payment Gateways Actually Are

**Simple version:** The thing that takes your customer’s card info, checks if they have money, and puts it in your account. Like a cash register, but online.

**Why it matters:** Wrong gateway = customers don’t trust you, checkout breaks, fees destroy margins.

* * *

> **How Payment Gateways Work (2-Second Process)**
>
> **The flow:**
> 
> 1. Customer clicks “buy” on your site
> 2. Card info encrypted and sent to payment gateway
> 3. Gateway forwards to your bank’s payment processor
> 4. Processor asks card company (Visa/Mastercard) if funds exist
> 5. Card’s bank says yes/no
> 6. Response travels back through chain
> 7. Your site shows “payment successful” or “declined”
> 
> All happens in under 2 seconds. Gateway handles encryption (keeps card numbers safe), fraud checks, and moving money around.

* * *

> **Gateway Fees Explained**
>
> **Two cost types:**
> 
> **Setup/monthly fees:**  
> Some gateways charge upfront + monthly flat rate to exist
> 
> **Transaction fees:**  
> Small percentage of each sale (usually 2-4%) + flat fee per transaction (usually 20p)
> 
> **Why this matters:**  
> Small savings multiply fast. 0.5% difference on 10,000 transactions = real money.

* * *

## The 6 Main Payment Gateways (Real Talk)

> **PayPal — Everyone Knows It (Expensive But Trusted)**
>
> **The deal:**  
> Most expensive option. Customers love it. You’ll use it anyway because buyers demand it.
> 
> **Costs:** 20p + 3.4% per transaction (ouch for small purchases)
> 
> **Pros:**  
> ✓ Customers already have accounts (familiar = more sales)  
> ✓ People trust the brand  
> ✓ No merchant account needed  
> ✓ No SSL certificate required  
> ✓ No monthly fees  
> ✓ Works globally (handles currency conversion)  
> ✓ WordPress/WooCommerce compatible
> 
> **Cons:**  
> ✗ Most expensive gateway (fees eat profits fast)  
> ✗ Takes customers off your site to PayPal’s checkout (kills conversions)  
> ✗ Website looks dated (could hurt premium brand perception)  
> ✗ Holds 30% of transactions for 90 days (cash flow nightmare)  
> ✗ Support is email-only (24-hour response, not instant)
> 
> **Verdict:** You’ll probably offer it anyway because customers expect it. Just don’t make it your only option.

* * *

> **Stripe — Developer Favorite (Cheaper, On-Site Checkout)**
>
> **The deal:**  
> Keeps customers on YOUR site during checkout. Cheaper than PayPal. Requires some tech skills to set up.
> 
> **Costs:** 2.9% + 20p for credit cards, 2.4% + 20p for debit (no monthly fees)
> 
> **Pros:**  
> ✓ Cheaper than PayPal for most transactions  
> ✓ Checkout stays on your site (your branding, better conversions)  
> ✓ Easy integration (if you’re technical)  
> ✓ Good for startups  
> ✓ Handles multiple payment types
> 
> **Cons:**  
> ✗ Debit card fees higher than some competitors  
> ✗ Requires technical integration (need dev help for most people)  
> ✗ Email-only support (no phone)  
> ✗ Built for developers (non-tech people feel lost)  
> ✗ Fees increase with volume  
> ✗ Requires SSL certificate  
> ✗ No mobile payments yet
> 
> **Verdict:** Best for tech-savvy sellers who want control and lower fees.

* * *

> **Amazon Payments — Trusted Name, High Fees**
>
> **The deal:**  
> Amazon’s brand trust. Customers log in with Amazon account. Good for items over £20. Expensive for small purchases.
> 
> **Costs:** Same as PayPal (20p + 3.4%)
> 
> **Pros:**  
> ✓ Strong seller fraud protection  
> ✓ Customers trust Amazon brand  
> ✓ No compliance headaches (Amazon handles it)  
> ✓ No merchant account needed
> 
> **Cons:**  
> ✗ Max 20 items per transaction (bizarre limit)  
> ✗ Same high costs as PayPal
> 
> **Verdict:** Use if you sell higher-priced items and want Amazon’s trust factor.

* * *

> **Authorize.net — Feature-Heavy, Upfront Costs**
>
> **The deal:**  
> Advanced fraud protection. Owned by Visa. Best for volume sellers. Costs $99 setup + $20/month + $0.10 per transaction.
> 
> **Costs:** $99 setup, $20/month, $0.10 per transaction
> 
> **Pros:**  
> ✓ Low per-transaction fees (saves money at volume)  
> ✓ Advanced fraud filters (block suspicious IPs, set rules)  
> ✓ Good support team  
> ✓ Integrates with most e-commerce platforms  
> ✓ PCI DSS compliant  
> ✓ QuickBooks integration  
> ✓ Recurring payments + customer info management
> 
> **Cons:**  
> ✗ Requires separate merchant account (extra setup hassle)  
> ✗ Additional compliance requirements  
> ✗ High setup fees ($99 upfront)  
> ✗ $20 monthly fee  
> ✗ Limited mobile app  
> ✗ No monthly reporting tools
> 
> **Verdict:** Worth it for volume sellers who need fraud protection. Setup costs pay for themselves if you’re doing serious sales.

* * *

> **Intuit — QuickBooks Users, This One's For You**
>
> **The deal:**  
> Great if you use QuickBooks for accounting. Not super common outside USA. Low fees, simple integration.
> 
> **Costs:** 4% + 20p per swiped transaction, no monthly/setup fees
> 
> **Pros:**  
> ✓ Low fees (no monthly or setup charges)  
> ✓ Easy integration with e-commerce platforms  
> ✓ Fast merchant account setup  
> ✓ Perfect QuickBooks integration
> 
> **Cons:**  
> ✗ 4% + 20p for keyed transactions (high)  
> ✗ Account reconciliation difficult without QuickBooks  
> ✗ Not very international (mostly US-focused)
> 
> **Verdict:** If you use QuickBooks, this makes life easy. Otherwise, skip.

* * *

> **Worldpay — Big Business Focus**
>
> **The deal:**  
> Global giant. Good for scaling. Not great for small businesses. Bespoke pricing (you get quoted custom rates).
> 
> **Pros:**  
> ✓ Fast merchant account setup  
> ✓ Multichannel support (expand to other sales channels)  
> ✓ eInvoicing service  
> ✓ PayPal integration  
> ✓ Fees reduce at high volume
> 
> **Cons:**  
> ✗ Not ideal for small businesses  
> ✗ Bespoke pricing (unclear costs until quoted)  
> ✗ Fraud support costs extra  
> ✗ Expensive setup fees  
> ✗ Weak sales approach  
> ✗ Often locks you into contracts  
> ✗ PCI DSS charges
> 
> **Verdict:** Built for enterprise. Small businesses look elsewhere.

* * *

## The Forced Signup Mistake (Conversion Killer)

> **Guest Checkout vs Required Login**
>
> **The temptation:** Force customers to create account before buying → you get their email for future marketing.
> 
> **The reality:** Every barrier = lost sales.
> 
> **What actually works:**  
> → Offer guest checkout (no signup required)  
> → Collect email AFTER purchase (not before)  
> → Make buying as friction-free as possible
> 
> **Why:**  
> People ready to buy don’t want to fill forms. They want to give you money and leave. Force signup = they abandon cart and buy elsewhere.
> 
> **Solution:**  
> Guest checkout is mandatory for optimized conversions. Collect data after the sale, not before.

* * *

**Pick gateway based on your situation. Keep checkout simple. Upsell at the right moment. Get paid.** 🔥

* * *

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**Author:** ![mohamadalshami](https://onehack.st/user_avatar/onehack.st/mohamadalshami/32/85006_2.png) [@mohamadalshami](https://onehack.st/u/mohamadalshami)\
**Post date:** [March 15, 2021, 10:34am UTC](https://onehack.st/t/ecommerce-payment-gateways-guide/120214/2 "2021-03-15T10:34:36Z")

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> [@Supporter](#):
>
> Intuit

thank you for this helpful information can you talk about payment for woocomerce ?

---

<div class="post-metadata">

**Author:** ![Supporter](https://onehack.st/user_avatar/onehack.st/supporter/32/49885_2.png) [@Supporter](https://onehack.st/u/Supporter)\
**Post date:** [May 12, 2021, 12:56pm UTC](https://onehack.st/t/ecommerce-payment-gateways-guide/120214/3 "2021-05-12T12:56:13Z")

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Yeah. I think you can contact me. We can exchange.