Payment Gateway Providers
Deciding on which Payment Gateway Provider to choose for your WordPress eCommerce Website is an important part of your Project. There are many Providers to choose from but we will outline some key differences between three of the well known Providers.
Stripe is an Irish Company. There are no monthly fees as there is a fee for each transaction. Stripe charge 1.4% of transaction + €0.25 (+ 23% VAT). Stripe works out cheaper than PayPal, even with the VAT charge (PayPal does not have a VAT charge on transaction fees).
There is no requirement for a Merchant Account with Stripe. Payments are transferred from your Stripe Account on a 7-day rolling basis.
PayPal have several services, some specific to particular countries. Two services that can be availed of in all countries and compatible with your Woo Commerce Website are PayPal Standard & PayPal Express Checkout.
PayPal transaction fees are 1.9% – 3.4% of transaction (depends on sales volume) + €0.35 (no VAT charged). The higher the sales volume, the lower the transaction fee percentage. You would need to sell between €50,000 – €100,000 per month for lower percentage transaction fee. Even with no VAT charge and lower percentage on large sales volumes PayPal are more expensive than Stripe.
With PayPal Standard, your customers are diverted to PayPal’s Secure Payment Page to complete their purchase. PayPal Standard uses an Instant Payment Notification (IPN) to notify you of transactions made from your website through PayPal. This has been known to be occasionally unreliable and IPN messages can get lost or delayed. The service will resend message for up to 4 days in this event. This could result in delayed or undelivered goods/services to your paying customers.
PayPal Express Checkout
With Express Checkout you have two options. One option is for purchases to be completed on PayPal’s Secure Payment Page similar to PayPal Standard. The other is to complete the purchase on your website, eliminating the IPN issue. With the latter option you would be required to have an SSL Certificate installed on your website to encrypt your customers’ sensitive information.
With Realex, rather than paying a transaction fee each time a customer purchases on your website, you will pay a monthly fee of €29 (+ 23% VAT) which includes 350 transactions. Each additional transaction is €0.12 (+ 23% VAT). There is an additional cost of a Merchant Account which is required to use Realex.
If you don’t make any sales in a month you will still be charged the monthly fee of €29. Therefore, only if you are guaranteed to have a very high volume of sales each month would Realex be the most cost effective choice.
Realex completes transactions on their secure hosted payments page so you don’t necessarily need an SSL Certificate.
To summarize, for small eCommerce Stores we would recommend Stripe. You wait a little longer for payments to transfer to your bank however, the transaction fees are lower and Stripe is reliable.
For large eCommerce Stores with a guaranteed high volume of transactions, Realex may be the best choice.
The decision you make does depend on how you will conduct your eCommerce Business, in terms of whether you check your account before you ship goods purchased or whether you will solely rely on your website to be aware of purchased made and of course, your budget and volume of sales.
IMPORTANT: While an SSL Certificate is not required for some Payment Gateway Providers as payments are processed through their secure hosted payments page, it is always recommended to have an SSL Certificate installed on your website. Read our blog https://www.kmmedia.ie/ssl-better-safe-than-sorry/
Information is correct at the time of writing 3rd January 2018.
If you have any questions you can contact us on 085 819 4082.