A payment gateway is a channel that facilitates the process of making an online transaction. The payment gateway stands between the customer and the online retailer. To be more precise, payment gateways ensure a secure transfer of the customer’s money into the retailer’s bank account. The transactions are performed through debit or credit cards or other payment methods, depending on the possibilities the gateway provides. In practice, the customer makes a purchase and his payment is transferred into the dropshipper’s bank account by the payment gateway.

In the dropshipping world, a secure and reliable payment gateway is indispensable. The next step is how to choose the ideal payment gateway for your dropshipping store.

In today’s ever-changing digital world, there are numerous kinds of payment gateways you can choose from. How to know which one is the most suitable for your store? Some criteria can help you decide more easily about which payment gateway to acquire, for example:

• Type of payment gateway: analyze the two types of payment gateways to see which one is the most compatible with your business;
• Target country: conduct research about the popular payment gateways in the countries you target for dropshipping;
• Fees: check the different transaction fees offered by all payment gateways and the applicable fees for a monthly subscription;
• User experience: explore the payment gateways’ practices and services to discover which one promises an excellent user experience.

There are two options for payment gateways – integrated and hosted.

• Integrated payment gateway: These are those that use API integration and enable you to connect your online store with the payment gateway’s API.
  • Pros: This process allows you to keep your customers on your website without redirecting them to another one, thus allowing you to boost your conversion rates and be in charge of keeping your customer’s data safe and secure.
  • Cons: Integrated payment gateway solutions are usually customizable. This means you will have to do some development on your own, which can be costly for a beginner dropshipper.

• Hosted payment gateways: With this type of payment gateway, when your customer comes to the point of making a purchase, they’ll be redirected to the payment service providers page (PSP).
  • Pros: The advantage of this type is that the gateway is responsible for all PCI compliance and data security.
  • Cons: The drawback, on the contrary, is that the process of redirecting your customers to an unknown website can cause them to distrust your services.

You now know the differences as well as the pros and cons of the available payment gateways, so, it’s time to gather the best in one list. These are the 10 best payment gateways you can use for your dropshipping business.

PayPal is one of the most popular payment methods worldwide at the moment. With over 400 million active account holders, PayPal accepts payments through all major credit cards as well as debit cards. If you decide to set up PayPal for your store, you’ll use the PayPal Commerce platform for which you’ll need a business account which is free of charge. PayPal is usually used as a hosted payment gateway although it also offers an upgrade if you want to use it as an integrated gateway – PayPay Pro. This option is available for a monthly fee of $30 USD.

• +200 countries worldwide

• 1-3.49% plus a fixed fee which varies depending on the payment location

• Supports 25 currencies

Another popular payment gateway similar to PayPal is Skrill. Currently used by around 120,000 merchants and 40 million individuals, Skrill is considered a more economical choice in comparison to PayPay.

• +130 countries worldwide

• 0-5% based on the payment method used

• Supports 40 currencies

Next on the list of popular payment gateways is Stripe, an integrated payment gateway solution that uses flexible API integration. If you choose to go with Stripe, you can customize the platform according to your preferences.  Available in more than 40 countries, Stripe is the choice of millions of businesses worldwide. It supports integration with WooCommerce and Shopify, and it’s used mostly by dropshippers based in Canada, Australia, and the UK.

• +40 countries worldwide

• 2.9% plus $0.25 USD for international transactions
• 1.4% plus €0.25 Euro for transactions within the European Economic Area

• Supports +135 currencies

Amazon Pay follows the same pattern as PayPal and Stripe. It doesn’t charge for setting up an account and asks for different transactional fees for domestic U.S. transactions and international transactions. It can be integrated with an API and without a monthly fee. It’s designed for online merchants and offers an excellent experience for its customers.

• 18 countries worldwide

• 2.9% plus $0.30 USD for domestic U.S. transactions
• 3.9% plus $0.30 USD for international transactions

• Supports 12 currencies

Another popular solution for a flexible and secure integrated payment gateway is Authorize.net. They accept it in more than 30 countries but it is quite a popular gateway choice for retailers based in the USA. Authorize.net requires a monthly payment of $25 USD and also charges a transactional fee per sale. The payment gateway can be adopted by small or medium online stores based in the USA, UK, Canada, Europe, and Australia.

• 33 countries worldwide

• 2.9% plus $0.30 USD per transaction for those without a merchant account, while those who have one can opt for the Payment Gateway Only plan and be charged a transaction fee of $0.10 and a daily batch fee $0.10

• Supports 12 currencies

Available in more than 200 countries across the globe, 2Checkout is a payment gateway that also uses API integration. It’s a solid option for dropshipping stores as it offers the possibility to integrate with other payment gateways such as PayPal, Stripe, and Skrill, as well as localization for a better customer experience. It accepts payments with major credit cards and other payment methods. These characteristics make it a suitable payment gateway for more than 17,000 eCommerce and dropshipping businesses globally.

• +200 countries worldwide

• 2Sell Plan: 3.5% plus $0.30 USD per transaction
• 2Subscribe Plan: 4.5% plus $0.40 USD per transaction
• 2Monetize Plan: 6% plus $0.50 USD per transaction

• Supports +100 currencies

Adyen is an example of an integrated payment gateway solution that supports more than 250 payment methods. Online retailers from across Europe, North America, Latin America, Asia, and Pacific Africa can implement it. The payment gateway doesn’t have set-up fees or monthly fees but it does have a minimum invoice of $120 USD per month.

• +38 countries worldwide

• processing fee of $0.10 USD plus fee determined by the payment method per transaction

• Supports +30 currencies

The favorite choice of Apple users is Apple Pay. The payment gateway accepts payments using all major credit and debit cards, as well as other payment methods. Apple Pay is compatible with and supported by Authorize.net, Stripe, and Braintree. Furthermore, it’s considered a safe and secure alternative for most Apple users as it provides the possibility to make payments through Touch ID or Face ID, without saving any information about credit cards or transactions.

• +70 countries worldwide

• 1.5% plus $0.25 to $15 USD per transaction

• Supports +70 currencies

Powered by PayPal, Braintree is the ideal payment gateway for those dropshippers who want a highly customized online store. Braintree is designed to fit the specific need of all dropshippers, not just one. Along the way, as your online store grows, it provides the possibility for modifications of the solution. Braintree supports PayPal, all major credit and debit cards, as well as Apple Pay and Google Pay. As a dropshipper, you can contact Braintree’s customer service at any time in order to guarantee you a unique experience.

• +40 countries worldwide

• 0.75-3.49% plus $0.49 USD per transaction

• Supports +130 currencies

Last on the list of best payment gateways for dropshipping is WePay. Yet another choice for an integrated payment gateway, WePay is present only in the North American territory. Similar to Braintree, WePay is able to work with a flexible API to offer a seamless experience for both dropshippers and their customers. Some reviewers state that WePay’s solution is somewhat complex. WePay compensates for this with its complete support and payment risk coverage of 100%.

• US, UK, and Canada only

• 2.9% plus $0.30 USD per transaction

• Supports 2 currencies