The Best Payment Gateways for International Online Stores

Posted by Yusuf Mohammed Sheikh,

Introduction You’ve built a beautiful store, sourced the perfect products, and started getting traffic. But there is one final hurdle: How will your customers pay you? Choosing the right payment gateway is one of the most critical decisions for an online entrepreneur. If your checkout process is difficult or doesn't support your customer's preferred currency, they will abandon their cart in seconds.

What is a Payment Gateway? Think of a payment gateway as the digital equivalent of a physical credit card swiper in a grocery store. It’s the technology that captures the customer’s payment information and securely transfers it to your business bank account.

1. Stripe: The Gold Standard Stripe is widely considered the best option for e-commerce today, especially for Shopify and custom-built stores.

  • The Pros: Extremely easy to set up, supports over 135 currencies, and allows customers to stay on your website during checkout.

  • The Cons: It is not available in every country. If you are based in a region Stripe doesn't support, you may need a workaround like a US-registered LLC.

2. PayPal: The Most Trusted Almost everyone has a PayPal account. Adding PayPal to your store can instantly increase your conversion rate because of the trust factor.

  • The Pros: High consumer trust and available in over 200 countries.

  • The Cons: PayPal is notorious for freezing funds for new sellers and sometimes their transaction fees are higher than competitors.

3. Payoneer: The Freelancer’s Favorite While not a traditional "checkout" gateway like Stripe, Payoneer is essential for international sellers (especially on Amazon or eBay) to receive their earnings.

  • The Pros: Provides you with local bank account details in the US, EU, and UK.

  • The Cons: It’s more of a receiving account than a direct "Buy Now" button for your website.

4. 2Checkout (Verifone) If Stripe isn't available in your country, 2Checkout is often the best alternative.

  • The Pros: They support a massive range of countries and offer various payment methods, including credit cards and local options.

  • The Cons: Their approval process can be a bit strict for new businesses.

What to Look for When Choosing? Don't just pick the first one you see. Consider these three factors:

  1. Transaction Fees: Most gateways charge around 2.9% + $0.30 per sale. Check if there are extra fees for international cards.

  2. Payout Speed: How long does it take for the money to reach your bank? Some take 2 days, others take a week.

  3. Currency Conversion: If you sell in USD but your bank is in Euros, look for the gateway with the best exchange rates.

The Bottom Line For most beginners, starting with a combination of Stripe and PayPal is the winning formula. It gives your customers the most options and ensures you don't miss out on sales. As your business grows, you can explore more specialized gateways to reduce fees.

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