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    Why Magento Payment Gateway Integration is a Must for Your eCommerce Store?

    Last Updated | June 16, 2023

    What is a Payment Gateway?

    Payment gateways are online applications that make use of the internet connections to prepare and execute payment transactions of the customers and the store owners for secure transfer of funds over the internet using multiple options such as credit and debit cards, e-wallets, and coupons. These are perhaps some of the most important business applications for e-commerce store owners.

    Some of the most famous payment processing applications are PayPal, Authorize.net, and BrainTree for Magento. Gateways could be listed as infrastructure as a service under cloud services. These ensure safe data transfer from the client-side to the Magento storefronts. The payment gateways carry highly sensitive customer data such as credit card credentials, so payment gateways make use of multiple technologies to protect this data.

    They make use of encryption to protect the data transfer over the internet. So, Magento Payment Gateway Integration will make sure that the transfer of customer payments over the internet is securely transferred. This makes the payment for the services or products over the internet easy for stores and customers as it follows a very hassle-free manner. In the post-COVID-19 environment, the exponential growth of stores has increased the online store concept and prompted these businesses to provide their customers with the best services to keep on growing.

    Magento integration

    Online stores allow transactions that can be completely remote, this is possible only when these payment gateways are used. These applications make use of new technologies such as SSL layers, data encryption, one-time passcodes, and following handshake protocols. These provide a safe and secure environment that allows the user credentials to circulate between the user devices, banking systems, and the gateway infrastructure.

    Magento store owners can perform Magento Payment Gateway Integration with pre-built solutions or new third-party gateways. It is best to consult companies as to which payment gateway should be integrated and then use that same company to provide Magento integration services to the selected payment processor with Magento without any setbacks or hassle to ensure a smooth transaction process for Magento.

    According to research carried out by multiple payment firms, they forecasted that by 2022, customers will use credit and debit cards, and e-wallets in 2022. Another research conducted by finances online stated that 52% of the sales are paid by banking cards, 28% are made from e-wallets and cash payments are a mere 17%.  

    This research reflects how crucial payment gateways are for online businesses. They also show the untapped potential of securing payments over the internet using payment processing applications.

    How Payment Gateways Work?

    When the Magento Payment gateway integration is performed successfully, the gateways ensure the secure transfer of data between platforms such as smartphones, websites, and banking payment processors. The method of how payment gateways work can be broken down into simple steps:

    1. The user initiates the process by clicking on buttons such as “Pay now” or “Make order” on the Magento websites. These generate a triggered request.
    2. Client-side scripting receives the request and encrypts the credentials that need to be transferred to the Magento store servers by using technologies such as SSL encryption layers.
    3. The customer’s data is then redirected through to the gateway’s channel. The data goes through the Magento store and to the banking system of the store owner that is responsible for the account maintenance. This exchange of information is made on secure socket layers ensuring no external interference.
    4. Once the Magento processor receives the online payment trigger, it locates and decrypts the debit or credit card information entered, then this sensitive data is sent to the bank of the customer and awaits confirmation requests.
    5. If everything is in order, the banks then respond to these generated requests by first cross-checking the customer credentials.
    6. Then, the banks issue OTPs, one-time passcodes that are used for verification purposes, and also record these transaction details. Sometimes banks can decline this payment processing because of other reasons such as insufficient funds or incorrect data.
    7. Once the correct passcode is entered by the customer, the payment getaways, forward the passcodes that deliver the banks’ response to the Magento stores and the customers.
    8. Once bank reactions are positive to the customers and the Magento stores, the Magento store owners receive the go-ahead and these banks execute the transfer of funds from their customers to the Magento store owner.
    9. A confirmation is sent to the Magento store owners and the customers about the transaction via messages, or emails.

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    In a nutshell, this is how payment processing methods work for Magento. The whole process takes 2 to 3 seconds at maximum, where all credit is due to the high-speed internet that makes this data transfer securely and quickly. The banks are responsible for recording the transaction details for the customers and e-commerce-store owners.

    Magento store owners can implement the Magento Payment Gateway Integration by making use of the best Magento Integration Services of Magento development companies such as Folio3.

    Read More: How to Add Afterpay To Shopify

    Is Magento Payment Gateway necessary for your website?

    The Magento payment gateway integration is not an option anymore, rather it is a need. There are multiple reasons why a Magento store owner needs to have payment processors integrated.

    • It helps the store deal with the emerging trends in the market. Such as the online stores that had no payment gateways suffered during the Coronavirus pandemic. It also encourages on the go purchasing which is a new trend nowadays.
    • These also require a minimal setup cost and offer a very high return on investment. The store owners can set these using Magento integration services from expert companies for a minimal cost and then provide their customers with the best experience.
    • Saving the time of the customers and the storeowners is another benefit. The customers are not pinned to receive these products while physically being present at the delivery address. Similarly, the delivery person does not need to collect cash and deliver the products and move on.
    • Providing multiple payment methods such as online payment, cash on delivery, delivery via credits provides the customers with multiple options. These ensure that the customer experience is the best.
    • Payment Gateways encourage businesses to deal with international clients. These help the customers place orders from anywhere in the world and get delivery to their doorsteps.
    • High security is also a reason. Gateways significantly reduce decline transactions and make sure that all legitimate requests are catered to. These increase sales and conversion rates.
    • Cash flow is also enhanced. The enhancements in cash flow are a result of advance payments, these mean that the store owner always has a cash flow of payments.
    • The gateways streamline the payment procedures. The payment automation makes sure that the store can effectively deal with the customers with any problem.

    These are multiple reasons that make sure that the payment gateways must be present in the Magento stores.

    What are the best Magento Payment Gateways?

    There are multiple gateways present for Magento. These payment gateways can range from pre-built for Magento and the third-party payment gateways as well. It is best to hire Magento web development services for consulting which gateway will be best suited to your business model.

    Magento payment gateway integration with Paypal.

    Paypal is perhaps one of the most popular and secure payment processing gateways for Magento stores. It is a top-pick solution as it is great for customers and storeowners. PayPal is a very reputable name in the payment processing applications and has the trust of over 218 million customers across the globe and over 17 million online merchants. PayPal is quite appealing to its clients for multiple reasons.

    It offers free registration for the PayPal accounts and free downloads for the PayPal applications. These accounts can directly link to your banking systems, this enables the customers to pay for their online transactions from any electronic device without even needing credit cards.

    PayPal strives for financial security and prioritizes the customers in the checkout processes as the sellers will only be able to receive the PayPal account number, not their credit card number, or bank account numbers. PayPal allows its buyers to make purchases from multiple currencies as well without having to worry about conversions. The fee with PayPal are 2.9% + $0.3 per transaction.

    Read More: PayPal Shopify Integration

    Magento payment gateway integration with Stripe.

    Stripe is another emerging name in payment gateway applications and is a direct competitor of PayPal. Stripe was launched back in 2011 and is based in Australia. Since their launch, they have been delivering optimal payment services that can support multiple currencies from over 100 different companies without needing to set up any separate merchant facilities.

    This gateway also offers multiple useful features that put Stripe in the top positions in this field. Stripe provides benefits such as the availability to stay on-site without any redirection to other sites during payment procedures. This is significant because almost 39% of customers abandon payments as soon as they are re-directed during payment. Surprisingly, Stripe also charges no extra fee for integration be it its monthly fees, the minimum storage fee, and the setup fee, Stripe offers easy and prior use for clients.

    The Magento business stores only pay the 2.9% + $0.3 fees for each transaction for the Strip extensions. This gateway brings a new level of payment convenience for the users, from providing easy recurring payments and subscription payments setup, making checkout process streamlined declining abandoned cart rates, to easy re-billing for the customers without the storage of their credit card information.

    Magento development

    These make Magento payment gateway integration with Stripe a great option for Magento store owners.

    Magento payment gateway integration with CartaSi.

    This payment gateway is also a great payment service for financial, institutional companies, and e-commerce stores as well. This caters to the Italian market. CartaSi has been in a leading position for electronic money. It has over 2 billion transactions and over 13 million credit cards in circulation.

    They actively have over 17 million Italian customers who make use of CartaSi to make regular online purchases and services. Performing Magento integration services with CartaSi ensures to provide store owners with unlimited benefits to the customers and themselves. The biggest advantage of CartaSi alongside their chargebacks, refunds, security features makes this extension focus on the setting of the order and amount conditions.

    It allows store admins to set up the maximum and minimum quantity of orders restricted to their customers, once these limits are reached, a new payment method is suggested.

    Magento payment gateway integration with WorldPay.

    WorldPay is also a very well-known service provider for merchants. As of yet, it supports over 400,000 merchants currently in over 146 global countries and also estimates that it makes about 26 million transactions every day. These astounding figures are all due to the outstanding features that WorldPay provides to its users.

    For the customers, WorldPay introduces multiple ways to pay through virtual terminals and the pay-per-link features. The customers do not leave the payment storefront to make successful payments, they can easily add their card credentials on the WorldPay payment page or any integrated pages. These details on the back-end are transferred to the payment gateway where WorldPay performs the authorization of the payment process.

    This application can serve all sizes of businesses sizes and even keep a track of all the transactions and the details. It also helps provide insights and key reports that can help Magento store owner develop their own smart decisions. The security features of WorldPay are also top class. It has fraud protection systems and enhanced cross-checking to prevent incorrect operations.

    Magento integration with WorldPay is a step in the right direction. It provides e-Wallet payments of WorldPay, WorldPay local card schemes, and the WorldPay vault for the card details.

    Magento payment gateway integration with Braintree.

    Braintree is another payment processor. It is a PayPal-powered solution for e-commerce websites. Braintree actively provides services in over 44 countries and can support transactions in over 130+ currencies. This payment gateway is also quite simple for the facilitation of online payments as it has a very user-friendly procedure for checkout.

    The application’s simplicity makes Braintree a very preferable payment gateway for Magento stores of all scales. Braintree is used by giants such as Airbnb and this makes strong statements about their performance in the market. BrainTree has the potential to increase the Magento store conversion rates by providing a seamlessly integrated platform that includes various payment options such as PayPal, Venmo, and mobile wallets such as Google Pay, Apple Pay, and credit and debit cards.

    Furthermore, BrainTree provides extra features as well such as recurring bills, advanced data encryption, and anti-fraud tools. These features attract Magento merchants towards BrainTree as their Magento payment gateway integration solution. Their standard Magento 2 pricing plan for clients is 2.9% + $0.30 per transaction, this similarity is due to BrainTree sharing its roots with PayPal.

    The Magento Payment Gateway integration with Braintree is quite easy. It can be effortlessly be carried out by the Magento panel, but it is always preferable to hire Magento 2 developers to do the integration perfectly ensuring no setbacks or shortfalls.

    Magento payment gateway integration with Authorize.net.

    Autorize.net is also an alternate payment gateway that can be integrated with Magento. This processor is mostly used by small-scale and medium-sized businesses. It has almost half a million merchants all of who chose Autorize.net. This payment processor is simple to implement and very easy to use.

    This payment processor offers a virtual POS (point of sales terminal) for e-commerce stores. It also comes with multiple options for payments such as PayPal, credit/debit cards (MasterCard, Visa, and American Express), mobile wallets such as Apple Pay and Google Pay, and e-checks. Authorize.net has two major sections. The customer accounts, and merchant accounts. Their merchant pricing is actually similar to other competitors, especially those powered by PayPal.

    The rate for Authorize.net is 2.9% + $0.3 per transaction fee alongside a $25 monthly fee. The other payment option which has no merchants costs $0.1 per transaction and a $0.1 daily fee. The Magento 2 pricing for integration with Authorize.net is simple as this gateway has multiple pre-implemented solutions.

    What are some types of payment gateways?

    There are multiple types of payment gateways. In general, there are four different types of payment gateways.

    Hosted payment gateways.

    The hosted payment gateways can direct your customers away from the Magento store page. This means that when they click, they are redirected to a gateway link and then they land upon the Payment service Providers page. Here, the customer will fill in their credentials for the payment, and once they correctly enter and pay for the goods or services, they will be redirected back to the Magento page to complete their checkout process.

    Perhaps the best-hosted payment gateway is PayPal. The pros of these gateways are that they are secure as the transactions are compliant with PCI standards and offer the customers’ fraud protection. These are simple to navigate as well as most of the users are already familiar with this payment gateway.

    These are easy to set up and are highly customizable as well. The cons of this type are that some first-time users abandon the orders as soon as they are redirected. This is because of unfamiliarity. Also since the gateway is external, the Magento merchants cannot completely control the user experience.

    Self-hosted gateways.

    This type of payment gateway collects the details from the customers from within the Magento storefront. Once all of the needed details are entered, the data is forwarded to the payment gateway’s URL link. Some of the gateways need the payment data to be provided in a pre-defined format, and some require has keys or other keys.

    Examples of self-hosted gateways would be Shopify payments which are powered by Stripe. The pros of this type are that provides a good customer experience as the complete transaction is completed in one place. It also provides a customized flow as the merchant has complete control over the journey of payments and the flow.

    The Cons of this type is that they lack a support system. These self-hosted gateways have no technical support available that you could reach out to if the system fails. You will be on your own to resolve the problem you face.

    API hosted payment gateways

    These API-hosted payment gateways are those where the customers enter their credentials for debit and credit cards directly onto the Magento checkout page. Then this data is processed using an application programming interface and runs HTTPS queries to check for authenticity. The pros of these types are that they are customizable and offer complete control to the store owner.

    They can also use the custom User Interface on the page to give a great customer experience. These are also capable of integration and can be directly used with mobile devices, personal computers, or tablets. The cons of this type are that security is the responsibility of the store owner. The merchants are directly responsible for the PCI DSS compliance and purchasing their very own SSL certifications.

    Integration with local banks.

    The local bank gateway integration redirects the customers to the website of the bank, here the customers must enter their payment details and their contact details. Once the customers make the payment, the customers are redirected back to the merchant’s storefront with a notification sent of payment confirmation. The pros are that these are easy to set up and quick as we. These are ideal for small-scale and local businesses that need a one-time payment structure for their business model. The cons are that they have only basic features and are unable to return or recur the payments. So this type is not ideal for wholesalers.

    It is quite crucial for the success of the store that the payment gateway you choose should be dependent on the business model you follow, the types of features required, and the amount of control required over the complete payment exercise. For the wholesales and online businesses, having a self-hosted payment gateway is ideal as it gives the best-streamlined experiences. This is because these allow the customers to complete the transactions from a single page and can offer the merchant complete control over the payment process.

    How to get Professional Magento payment gateway integration services?

    It is quite challenging to hire Magento web development services as a store owner as there are multiple things that must be contemplated. The criteria of all of the merchants vary to integrate the Magento payment gateway integrations. First of all, the store owner must have a clear idea of what they require from the services. Clients should first draw a rough draft so that they are well informed themselves.

    Once the draft is ready, the clients should do some research on their end on the internet to find Magento integration services. The customers take a look at the work, check company reviews and other information that will allow them to get a professional Magento payment gateway integration solution.

    Here are certain suggestions that you can follow to get the best Magento integration services.

    Be informed about what you require.

    As a store owner looking for services, you must have fixed goals. You should be completely aware of what you want to achieve with this new business model.  You need to draft objectives that can help you reach the goal of hiring a good company. Focus on the defined goal and not sway off. Do some research, and this will make you confident to express what you require for the Magento store. You will be able to communicate better as well with the service providers.

    Set objectives that dictate how you plan to reach the goals. You should be able to deliver what you need effectively to everyone who is related to the project. The elaboration should be such that others are able to visualize your needs. This makes the communication process with the company you hire and allows for better understanding.

    Discuss project timings.

    You should have an expectation to map out the time you have to make sure the integration is completed, tested adequately, and implemented on the store to deal with live data. Once you hire a company, their project manager can brief you correctly about the progress, etc. So having a good manager is important.

    You can enquire about completion times and stay updated. If your timing requirements cannot coincide with the time frame that the company provides, you can choose another company. Once the time constraints match, you can advance the proposition.

    Negotiate the details of payment.

    Magento 2 pricing for payment varies from company to company. All companies have different working models. So as a result, the payment schedules and details are very different. Before finalizing a deal with any company, you should have transparent communication with the company to ensure that the payment schedule is discussed. As in advance payments and payments after services.

    Also, make sure that you get a quotation from the company. Ensure explicit communication so that there are no misunderstandings that later on hinder progress and result in unsatisfactory experiences.

    Ensure a fair hiring model.

    When you look to hire a company to provide you with Magento integration services. Be aware of what you require from the company. If you have some experience in hiring companies, you can interview the potential companies masterfully and get a clear picture of what they can provide to you. These companies can then deliver the Magento services you need. Be sure to ask them relevant questions that can give a preview of their skills and ability in their domain of providing Magento integration services.

    Look for their after-project services.

    The after-project services can help you maintain the store. A responsible company will always provide a Magento 2 pricing package that includes services for maintenance after the project. These companies will make sure that the store is well maintained and the integration solution they provided keeps on working perfectly. If they provide after-project services, it can be deduced that the company is professional and does not abandon their clients after providing them with the Magento integration services.

    If you are aware of these aspects and keep them in mind when you are hiring the best Magento integration services, it can be guaranteed that the services that you hire at the end are the best and the most suited for your requirements.

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    Why is Folio3, the best Magento payment gateway integration service provider?

    Folio3 is perhaps the best Magento payment gateway integration service provider you can choose. We are a software solution company based out of California. There are several others but Folio3 is one of the best you can find. We have catered to clients from Fortune500 companies and even small-sized businesses. This represents our dedication to providing quality services to all of our clients.

    • We have over 50+ certified Magento developers that have worked on over 500+ Magento integration services projects. These skilled developers also constructed over 30+ plugins and extensions that are available on Magento. These plugins are exclusively verified by Magento as well. Our developers make use of increased code reusability, efficient coding practices, and decreased code redundancy. This helps the solution have a decrease in operational costs and quick delivery. These collectively decrease the Magento 2 pricing plan for the solutions, subsequently making it more affordable.
    • Our company has extensive experience in software development. We have been developing Magento integration solutions for over 15+ years. We catered to clients from small-scale enterprises and up to Fortune500 companies. We have thousands of clients all over the globe who still use our solutions.
    • Our company also includes post-project services for clients and we stick by our clients, instead of abandoning them like other companies. Our working procedures are very customer-oriented as we welcome agile principles. Unlike other companies that focus on contract negotiation, Folio3 employees make sure to develop the best solution for the customer. We also help businesses manage their growth by providing the best payment integration solutions so that the payments are handled well enough. Our post-project services include consistently removing bugs, this makes our Magento payment gateway integration solutions safe and secure as they should be.
    • We also focus on working processes to best. Our company follows international standards such as ISO14001. These ensure that the process we follow is streamlined which ensures that the final solution is extremely high-quality. The company has the experience and employees that ensure to follow the most effective practices. These put our company working standards on top of the capability maturity model.
    • Our company has the capacity to deliver working solutions well before the deadlines. In our records, we have never faced setbacks in delivering solutions to our clients on time. Late deliveries are dreadful for Magento store owners. This is because these solutions can go over the budget, and also result in increased store downtime. This subsequently makes the Magento store owner lose money on the table. This is why Folio3 ensures on-time delivery. This is thanks to our certified developers, experienced domain experts, skillful requirement engineers, effective project managers, and design engineers. All of our team works together to ensure that the best integration solution is developed.
    • Folio3 also has an extremely effective operation research cell. This cell can minimize the costs by ensuring that the integration solution is developed at a minimal cost. Simultaneously, the team is tasked with developing solutions whilst following effective practices that can decrease cost and time. Our certified Magento developers make the code quickly and in an error-free manner as there is too much at stake in payment gateway errors. Our software quality engineers also focus on security attributes for the integration, instead of debugging. The requirement engineers make sure to elicit the requirements effectively and save the customers time.

    These are some of the reasons why you should choose Folio3 to provide Magento Payment Gateway integration solutions. You can always visit our nearest office to you and get a consultancy with our company. You can satisfy all your requirements and queries so that you are also satisfied with our transparent dealing and be comfortable working with us. You can contact us via email or phone at your convenience as well.


    It is of utmost importance to have Magento payment gateways integration services for your store. Some of the best gateways are PayPal, BrainTree, Authorize.net, Stripe, and WorldPay. It is best to hire a company for Magento web development services. It is equally important to make a well-researched decision.

    Hire services of a company to make sure that the integration is done perfectly and so that no problems arise in the payment processing as there is a lot at stake. You can hire Folio3 to provide you with Magento integration services with the most optimal Magento payment gateway for your store.


    How can I add PayPal payment gateway in Magento?

    It is best to use Magento payment gateway integration services to carry out this procedure to ensure perfection.

    1. Log in to the Magento Admin Panel of your account.
    2. Go to System on the menu and then click on the Configuration button.
    3. Now a list of options will be visible on the left side of the page. You will scroll down and go to the section of Sales and then click on the button of Payment Methods.
    4. Under this section, expand the menu and select the PayPal Payment Gateways option. It will provide you with two types of payment gateway methods. One will be the Payflow Pro (Includes Express Checkout) and the other will be Payflow Link (Includes Express Checkout). 
    5. Then click on the Configure button. Now enter all the details for Payflow Link and Payflow Pro options respectively.

    How to does one evaluate a payment gateway?

    It is critical to choose the right payment gateway for your Magento store. This will be a prime factor in the contribution to the overall success of your Magento store. This is because it will offer optimal checkout to your clients and secure the deals. Once you select payment gateways you need to hire Magento 2 developers who are qualified to implement the gateway properly.

    The integration will make sure that the security features, capabilities, convenience, and cost fulfill all of the fundamental requirements. But to be very specific, all the Magento store owners must take into account these four major features when choosing an adequate payment gateway for their Magento store:

    • Security. This refers to how well the gateway can secure payments and record the transaction details or customers’ data and keep them protected from external interference. It must also prevent payment fraud as this scam is on the rise.
    • Convenience. This refers to using the payment processor is and how easy it is to integrate this into the platform for working functionalities.
    • Capabilities. These are responsible for solving queries. Such as what types of payments are accepted and what other offered options are present for the customer.

    Cost. This is perhaps the most important one. You must consider what fees are charged in processing the payments. Also, consider the types such as monthly payments or transaction-based payments.


    Folio3, a Software Powerhouse established in 2005, is one of the leading eCommerce solution providers for SMBs and Fortune 500. The Company has expertise in diverse industries such as Animal Care, Retail, Automotive, Food and Agriculture, and Health care. From ecommerce store design and development to full-scale ERP deployment and integration, Folio3 has done it all.