So you have set up your dropshipping store? That’s great! You have all your products ready and you know you will make a great profit from your selected dropshipping niche. But have you set up the easy payment methods for your customers?
How are you going to receive money in your WooCommerce AliExpress dropshipping store? Is it easy enough for your buyers? Is it secure enough for them to share their credit card and financial information on your store?
These are just a few of the concerns you should address in your store to increase your sales and put the customers’ queries to rest.
Before I begin with how to add payment methods in WooCommerce, let’ first learn a bit about WooCommerce.
WooCommerce is the best free WordPress plugin meant for e-commerce. This highly customizable e-commerce platform can help you build your online AliExpress dropshipping business into a great success.
With WooCommerce, you get many features which can be further extended using extensions and additional plugins as well. Once you have your WooCommerce setup and activated in your WordPress Admin dashboard, you’ll see that few pages like shop, cart, and checkout will be automatically created for you.
That’s how WooCommerce makes things so easy for you.
All the customizations are just a click away and you can always fix any issues you may have with the help of a wide community of open-source developers there for you.
Now, without much time let me share the default payment methods in WooCommerce with you.
Let’s talk about the most common default payment methods in WooCommerce and how you can add payment methods in WooCommerce.
Now, let’s discuss each of these in brief.
Known as Bank Account Clearing System or more commonly as direct bank transfer or wire transfer, it is a gateway that doesn’t need payments to be made online.
All orders using BACS payment method are set ON HOLD until the payment gets cleared outside of WooCommerce. As the store owner, you’ll have to check your bank account if the payment has cleared before processing the order further.
BACS is not an ideal choice for e-commerce business model as it needs the store owner to check their bank account and may take more time than the other payment gateways.
Nonetheless, I would be sharing how to set up BACS as well as other payment methods in the later section of this post.
Just like bank transfer option, Cheque option doesn’t require payments to be made online. However, as a store owner, you must check and ensure that the cheque has cleared before processing the order further.
COD is a very common payment option offered by many e-commerce store owners who cater to local customers. Still, if you are a small store owner having clients abroad or if you’re running a dropshipping business, COD is an option that won’t work for you.
So, you may as well disable this option for your store. For people who would like to offer COD, they must confirm that the payment was collected upon order delivery.
PayPal is a worldwide famous payment gateway which comes integrated with WooCommerce plugin. WooCommerce uses PayPal Standard which will take the customer to PayPal’s secure website to complete their order payment.
In WooCommerce, PayPal Standard uses IPIN for which you’ll require https for additional security. You’ll also need a PayPal account to enable PayPal standard payment gateway for your WooCommerce store.
Now, let me show you how you can add Payment methods in WooCommerce.
Let’s start with BACS
Follow the below-mentioned steps to add Bank Transfer in your WooCommerce Store.
Configure the settings like described below :
You can also leave the title, description, and Instructions as they are to let the default option work.
Remember to click Save Changes button before you leave the page. That’s all. Your BACS payment option is now enabled on your store and customers can pay you via bank transfer.
For setting up Cheque in your store, follow the below-mentioned steps.
You can add COD as a payment method in your WooCommerce store using the following steps.
Configure the settings as below:
Before you begin setting up this payment method, you must have a PayPal account. It’s free to sign up with PayPal and will take less than 5 minutes of your time. You can opt for a personal account or business account.
I would suggest setting up with a business account to send secure invoices to your customers and other additional features.
If you already have an account set up, please skip this part and move to the next part.
And that’s it. You have successfully created your PayPal account. Now, let’s proceed to the next part.
Follow the below steps carefully to enable PayPal payment method in WooCommerce:
Now, move to Advanced Options. Fill in the required fields as below.
Now under API Credentials, you have 3 fields to fill information into:
1. Live API username
2. Live API password
3. Live API signature
You can easily learn how to get the Live API information from PayPal by logging into your account at PayPal.com. Select the option for NVP/SOAP API integration (Classic).
Although WooCommerce configures most of the things, there are still a few things you need to set up at PayPal.
How To Set PayPal IPN URL
How to Auto-Return To Your Store
You can set up the auto-return which will take the customers to a receipt page. To do this, just use the following URL.
example.com/checkout/order-received/ [Replace example.com with your own URL]
For more detailed information, you can visit the WooCommerce documentation page and get answers to all your PayPal related queries and FAQs.
Now, this was all about the default payment methods in WooCommerce. But as you saw above, if you’re a dropshipper the only viable option you can use out of the four available is PayPal. However, PayPal Standard takes the customer away from your website to the secure PayPal site.
This is a problem and an area of concern.
Most people get scared about the sudden user interface change and may leave at the last step causing an increase in cart abandonment issues. So, what should you do here?
Well, a great option is to use Payment Gateway API. There are many free plugins and payment gateways you can use with your WooCommerce shop. Let’s look a little more into it.
A payment gateway is a software that processes and authorizes the banking and credit card information for the online retailers. It ensures that the customer has enough funds to pay for the product or service. PayPal and Stripe are the two most common and popular payment gateways used in e-commerce.
Payment gateways are able to host and store the financial information on a secure platform enabling the store owners to be free of any tensions or worry about their data being lost or hacked. Moreover, WooCommerce has many options for you to choose from including paid and free options.
In order to be able to receive the payment from your customers, you should set up payment gateway before you go live. You may have to sign up first to use the payment gateway. Like, in PayPal you can sign up for free and then use the account almost instantly.
There are immense benefits of setting up a payment gateway in your WooCommerce store. I’ll be sharing some of them below:
Additional Sense Of Security: Payment gateway facilitates a secure exchange and storage of financial transactions between your online store and your customers. Having a trusted third-party take care of this very important aspect of e-commerce business operation provides an additional sense of security for any business owner.
You can select the payment gateway that works in your country but it is highly advised to select the one which is trusted and used by million others like PayPal and Stripe for your business.
Sell Faster: You can sell faster with a payment gateway. It’s super easy to set up a payment gateway in WooCommerce that you don’t even need a developer for the purpose. The sooner you set up a payment gateway for your store, the faster you can take your store live and start selling to real customers.
Build Customer Trust: As a lesser known or new brand, you should take every possible step to build a strong base of trust with your customers. Having a renowned payment gateway like PayPal will help your customers trust your store with their financial and/or credit card information. In other words, they’ll purchase from you readily.
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In terms of WooCommerce, a payment gateway is a WordPress plugin that allows the customers to pay for goods and services they are purchasing online. While there are many factors to consider when selecting the best payment gateway for your WooCommerce store, there are three of them which you should keep on top priority.
The startup and ongoing cost for each payment gateway vary and you must take it into keen consideration before selecting the best payment gateway in WooCommerce. The cost you will consider must include purchasing of payment gateway (if you don’t want the free options), transaction fees and/or monthly (or yearly) subscription charges.
Location is another factor which is very important while picking the best payment gateway for your store. If a payment gateway only accepts US dollars as currency and serves only US retailers and shop owners, people owning shops in other countries like Canada won’t be able to use it.
However, don’t worry.
There are many payment gateways that you can select from given your location like PayPal, Stripe, Amazon Pay, Zapier and more.
As a dropshipping store owner, it is your moral and ethical duty to ensure all the steps are taken to protect the confidential data like email address, personal information and financial information of your customers.
You must select the payment gateway which is in compliance with all the security terms and all other steps to secure your site as covered by Payment Card Industry Data Security Standard (PCI-DSS).
A direct answer: You need to have at least one payment gateway on your store. However, having just one can be a risk as it can encounter downtime or other unforeseen issues.
So, it is advised to have a minimum of two payment gateways in your store. This will give the customers more payment options to choose from and increase the chances of checkout and payment completion.
There are many payment gateways for you to choose from. However, I am going to mention a few of them that you can use for your store.
You can find more at WooCommerce extensions. For selecting the country-specific plugins, just select your country from the drop-down menu and you’ll have a list of payment gateway options (free and paid) that you can set up in your e-commerce store.
As discussed for PayPal Standard above, once you have the extension installed from WooCommerce, just visit the backend of your website as admin. Under Settings> Payments you can select the new Payment gateway and log in with your credentials (like you did for PayPal).
That’s as easy as it gets with WooCommerce. Just search for the plugin or extension you’re looking for and install it for your store. Once you have the set up done, your customers will see the new options on the Checkout page and they can select whatever suits them to pay for the product or services you are offering them.
A payment gateway is a very important thing you need to know everything about so that you can select the best payment gateway for your online store. I hope I have covered all the things there are to help you take the best decision for your store.
If you need any help or have more questions about payment gateways, e-commerce or dropshipping, just drop a quick comment below and I’ll get in touch with you.
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