Payment Gateway
Quick Definition
A payment gateway is the service that securely processes credit card and digital wallet payments on your WordPress store. Popular options for WooCommerce include Stripe (2.9% + 30 cents per transaction), PayPal, and WooPayments.
What Is a Payment Gateway?
A payment gateway is a service that acts as the middleman between your online store and the customer's bank. When a customer enters their credit card details on your WooCommerce checkout page, the payment gateway encrypts the data, sends it to the payment processor, verifies the transaction with the bank, and returns an approval or decline — all in seconds.
How It Works
- Customer enters payment info
- Gateway encrypts the data via SSL/TLS
- Processor contacts the bank
- Approval or decline within seconds
- Settlement — funds transfer in 2-3 business days
Popular WooCommerce Payment Gateways
| Gateway | Fee | Key Advantage |
|---|---|---|
| Stripe | 2.9% + $0.30 | No redirect, Apple Pay, Google Pay, SEPA |
| PayPal | 2.99% + $0.49 | 200+ markets, trusted brand |
| WooPayments | 2.9% + $0.30 | Manage from WP dashboard |
| Square | 2.9% + $0.30 | Online + physical POS |
Hosted vs Integrated
- Integrated (on-site) — Payment form on your checkout page (Stripe). Higher conversion.
- Hosted (redirect) — Customer sent to gateway site. Lower conversion.
Choosing a Gateway
- Stripe — Best default for most stores
- PayPal — Add as second option for buyer protection
- WooPayments — Stripe under the hood, managed from WP
Why It Matters
Gateway choice affects conversion, fees, and trust. Integrated checkout converts 20-30% better than redirect. Fees are ~2.9% + $0.30 across providers — choose on features and payment method support.
Sources: Stripe, WooCommerce