How to pick the best payment system for your e-commerce small business

Choosing a payment system for your e-commerce site can be daunting. In fact, it’s likely to be one of the toughest decision you’re faced with after choosing a platform or developer. With literally dozens to choose from in Australia alone, from Stripe to PayPal, how do you know which is best for your small business?

10-best-free

Identify your business needs

There are a few things you need to consider from a business perspective. Firstly, find out which payment systems are compatible with your platform. For example, WooCommerce  integrates with a number of providers including Stripe, PayPal and Square via plug-ins. For custom-built sites, most payment systems supply API code.

Secondly, you need to think about suitability for your ongoing business needs. As an SMB, a hosted all-in-one payment system is probably your best option and will give you all the functionality you need. However, if you’re likely to grow, you must look at whether it’s scalable and offers a gateway plan so you can upgrade to a merchant account.

Another advantage of all-in-one systems is that the provider shoulders a lot of the responsibility for ensuring payments are secure as most offer PCI compliance. This, in turn, makes the SSL certificate process much simpler for you.

You also need to think about whether you need mobile and in-store functionality, as not all e-commerce payment system providers offer these.

Consider the customer experience

Of course, deciding which payment system to choose for your e-commerce site isn’t just a question of what works for you. You also need to think about what will work best for your customers. That’s because the payment system you select for your checkout page can have a huge impact on your conversions.

For example, if you a choose payment system that is too slow, too complicated (too many details to fill), takes them away from your website (redirects them) or simply one that is not very well-known, people can be easily put off, lose their buying momentum and abandon cart.

Comparing the all-in-ones

In order to simplify the decision process for you, here’s a run-down of the fees and key features of some of Australia’s top all-in-one e-commerce payment systems:

icon_paypal Stripe

Transaction fees: 1.75% + 30c for AUD transactions, 2.9% + 30c for international

Disputed payments or chargebacks: $25 or $0

Payment methods: Visa, Mastercard, Amex, AliPay, WeChat Pay

Customer redirect: no

Stripe supports over 100+ currencies and is one of the most popular payment systems in Australia. Offering immediate set up, flexible features, plus email and live chat support, it’s pay-as-you-go plan is a great option especially for smaller businesses and start-ups. Payments are made to your bank account on a 2-day rolling basis.

icon_paypal PayPal

Transaction fees: 2.6% + 30c for AUD transactions, 3.6% + fixed fee for international

(for sales up to $2,500 monthly)

Disputed payments or chargebacks: $15

Payment methods: Visa, Mastercard, Amex

Customer redirect: yes

PayPal’s biggest advantage is that it’s already a household name. Customers know it and trust it plus many people already have an existing PayPal account. It’s all-in-one plan ($25 a month), offers multiple tools and features and set up is immediate, however it redirects customers away from your site for payment.

icon_paypal PinPayments

Transaction fees: 1.75% + 30c for AUD transactions, 2.6% + 30c for international

Payment methods: Visa, Mastercard, Apple Pay, Visa Checkout MasterPass

Disputed payments or chargebacks: $25

Customer redirect: no

PinPayments is Australian-owned and is an all-in-one system with merchant account included. It also offers simple integration, flexible free trails, volume-based discounts, a local help desk and supports over 50+ currencies. Proceeds are paid to your bank account in 3 days  for which you have to pay a 3c transfer fee.

icon_paypal securePay

Transaction fees: 2.4% on AUD Transactions, No extra charge AUD Amex

Payment methods: Visa, Mastercard, AMEX, Diners Club, PayPal

Disputed payments or chargebacks: $25

Customer redirect: no

Another Australian-based provider, securePay is free to set up and has no monthly or annual fees. It’s system is scalable with different plans for small, medium and large businesses. It’s all-in-one system can be set up in under 5 days, is easy to use and offers customised payment pages for consistency.

icon_paypal eWay

Transaction fees: 1.9% + 20c for AUD transactions, 2.6% for AMEX/Diners

Payment methods: Visa, Mastercard, AMEX, Diners, JCB, Discover, Apple Pay, Visa Checkout MasterPass

Disputed payments or chargebacks: Not listed

Customer redirect: no

eWay’s all-in-one plan, like all the others, comes with a merchant account included. It offers fast settlement, a range of tools plus volume-based discounts. As its Australian-based, you get a reliable real-time 24/7 phone and helpdesk. It works with a range of platforms plus offers customer support and API code.

icon_paypal AfterPay

Transaction fees: 4-6% + 30c for AUD transactions

Payment methods: AUD Mastercard and Visa only

Disputed payments or chargebacks: No disputes or refunds

Customer redirect: no

This option works like lay-by. Using AfterPay, customers can buy now and pay later in instalments while you get paid immediately (usually within 48 hours) eliminating the risk to you. Because it enables customers to spread the cost,  AfterPay has also been shown to increase conversations as well as spend per transaction.

Why stick to just one?

Each system has its own pluses and minuses, so to pick the best one for your e-commerce site you’ll need to decide which plan and setup works for you. You also need to consider which your customers are going to be more comfortable using – this might require a bit of research.

When it comes to keeping customers happy these days, it’s all about choice. So, why stick to just one payment system? Companies big and small are increasingly opting to offer a range of payment methods to optimise sales. For example, organic beauty company, Bondi Scrubs, let customers choose between Stripe, AfterPay or PayPal at checkout.

Need some help setting up your e-commerce payment system? Contact Total Web Design today.


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