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    Magento Payment Gateway Integration – A Complete Guide

    Last Updated | May 15, 2023

    What is a Payment Gateway?

    Payment gateways are business applications for e-commerce store owners and clients. These online applications make use of secure internet connections that can prepare, coordinate and then execute payments for the customers and the storeowners securely over the internet. Some of the most famous payment gateways are PayPal and Authorize.net. These payment gateways provide secure data transfer from the client-side to the Magento e-commerce stores storefronts.

    The data is highly confidential as it includes credit card information, so it makes use of encryption to protect the transfer over the internet. The Magento Payment Gateway Integration will ensure that the customer can securely transfer their payment for the products over the internet and the store can receive them likewise in a hassle-free manner. The exponential growth of online stores after COVID-19 has prompted the online store business to provide the best services to keep up with the growing demand.

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    The new paradigm of online stores provides network-based transactions that are completely remote by making use of these payment gateways. Similarly, the payment processors introduced newer technologies such as data encryptions, SSL layers, handshake protocols, and one-time passcodes. These make a very safe environment and guarantee that the credentials circulate between the end-user devices, the gateway infrastructures, and the baking systems. These protocols are all followed in payment gateways that may be pre-built solutions or new third-party gateway integrations.

    The Magento Payment Gateway Integration services ensure that the selected payment gateway can be successfully integrated with Magento without any hassle or setbacks to ensure smooth transactions for your business. According to online payment firms, customers will start to pay for goods and services from banking cards and e-wallets by 2022.

    According to finances online, 52% of sales will be paid by debit/credit cards, 28% from e-wallets, and cash payments will decrease to a mere 17%. This reflects the immense importance of why payment gateways become extremely crucial features of Magento businesses in which there is a tremendous flow of funds.

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    How Payment Gateways Work?

    The payment gateways functionality is to ensure secure data exchange between digital platforms such as websites or smartphones, payment processors such as banking systems. The payment gateways can be decomposed into a step by step process as follows:

    1. The users click on buttons such as “Pay now” or “Make order” on the websites to generate a triggered request.
    2. A client-side script encrypts the data that needs to be transferred to the e-commerce store servers by making use of SSL encryption layers.
    3. The credential data is then transferred through the gateway’s channel. The data goes through the Magento store to the bank of the store owner that is responsible for the account maintenance. This exchange is made using secure socket layers.
    4. As the script receives the online payment trigger, it looks for the credit or debit card information entered, then this information is sent to the card-issuing banks and awaits confirmation requests about the data.
    5. The banks then respond to these generated requests by first confirming the customer credentials.
    6. The banks issue one-time codes that are used for customer verification and store what this transaction holds. At times, banks can decline this payment processing because of reasons such as insufficient funds.
    7. Once the correct code is entered, the payment processors, through their payment gateways, forward the codes that can deliver the banks’ response to the customers and the Magento stores.
    8. Once bank reactions are positive to both parties, the Magento storeowners can receive confirmations and these banks execute the transfer of funds from their servers.
    9. Confirmations are sent to the Magento store owners and the customers.

    This is how the payment processing methods work for Magento. The process takes 2 to 3 seconds at maximum thanks to high-speed internet data transfer. The banks hold the fund-flow details for the transactions for the e-commerce-store owners and the customers. You can implement the Magento Payment Gateway Integration by making use of the Magento Integration Services of an experienced Magento development company such as Folio3.

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    How Payment Gateways Help Your Business?

    Payment gateways offer immense value to Magento store owners. Regular banking cards and other payment processing wallets allow for a streamlined process for Magento store merchants when they use Magento payment gateway integration for their e-stores. The increased popularity of online stores meant that the payment gateways became an integral part of the business. Contrary to popular belief, customers don’t doubt the security of payment processing technologies as it has become well-known among the majority of online shoppers.

    Besides, these gateways require no maintenance as well. The smooth execution of transactions through the payment gateways for Magento stores makes the process streamlined and automated.

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    Also, increased financial fraud and the collection of illicit data have increased under the growth of online businesses. These gateways are able to solve this problem to a large extent. These applications are able to protect the data with encryption keeping the information meaningless even if it is leaked by chance. Additionally, the following factors can add value to the business by implementing the newest technologies:

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    Improved data checking.     

    The stores must provide protection to their customer’s confidential data from financial frauds, data leaks, and data corruption. However, some e-commerce platforms make their data-check requirements very overcomplicated and ineffective. These safety measures are a must but they need to be such that the customers are not left dissatisfied. The exaggerated authentication procedures destroy the principle of e-commerce that focuses on a streamlined flow of events.

    These compromise the positive effect that your Magento store built up as in the end, poor services meant that the deal couldn’t be closed. As a result, the store’s retention rate suffers. Magento Payment Gateway Integration ensures that the data check processes are balanced by providing security and a streamlined experience.

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    The gateways make use of purchase history to make the procedure authentic and subsequently reduce the refusals for Magento store carts.

    Ensuring PCI DSS standards are adhered to.

    The payment processors follow the Payment Card Industry Data Security Standards, or PCI DSS in short, that some Magento store owners find tough the maintain themselves. These requirement policies make the Magento store owners invest their time and resources into other means that can help their stores adhere to the PCI DSS policies. To simplify this process of reaching a consistently well-performing gateway, it is best to hire Magento Web development services from companies that excel in cyber security issues such as Folio3. You can hire Magento 2 developers to ensure a smooth workflow in the integration process.

    Manage the refunds of the store.

    The payment gateways can make records of all the transactions made. Since the banks keep records, data collection is easy to use and simple. This makes the management of refunds less complicated. This makes the troublesome refunding process very easy and makes sure that the customer is satisfied.

    Helps Global Sales.

    Once you envision the store going global, the customers from multiple countries need to place their orders by their local payment methods. This may result in delivering trouble if the payments cannot be transferred meaning deals cannot be closed successfully. To address this shortfall, Magento merchants can hire Magento 2 developers to integrate the payment gateways. These gateways can cater to international clients and payment standards. These gateways help ensure the worldwide expansion of the store. This allows the worldwide audience to purchase off the store from anywhere.

    Enhancing the security of Online Payments.

    The security of the payments at the Magento store is extremely critical if the trust of the customers needs to be gained. Payment gateways make sure that the security features are up to standards. They make use of technological advances to integrate features to make the transactions secure and safe.

    • The confidential data exchanges via payment gateways are all executed under the HTTPS protocol. These make sure that the technology encrypts the data and the messages that are circulated between the senders and the receivers.
    • The virtual payer authorization is also carried out on a routine basis to add an extra layer of security to protect all of the transactions.
    • The IP addresses of all of the requesting servers are verified. This regular verification of requests makes sure that any discrepancy in the data of the transactions is completely excluded.

    What are the best payment Gateways for Magento?

    There are multiple payment gateways for Magento. Multiple gateways can be integrated by Magento Web development services as they can take another third-party payment gateway such as Stripe, Afterpay, or Payoneer. However, Magento does offer three pre-implemented payment gateways. These gateways are Braintree, Authorize.net, and PayPal. There are multiple gateways to choose from for Magento.

    PayPal Payments Pro.

    PayPal is perhaps the world’s most popular payment gateway. Approximately 17 million e-commerce store merchants have PayPal Payments Pro processors integrated into their Magento store. Also PayPal Payments Pro has over 200 million customer accounts that confirm that it is perhaps the largest vendor for e-commerce stores. PayPal’s business version supports several major credit card systems such as Visa, MasterCard, and American express.

    It supports 26 national currencies at over 200+ markets as well. The PayPal payments pro generally represents an enterprise-level payment solution as these can be integrated in accordance with any sort of business requirements. PayPal pro offers debit and credit card, phone payments, bank transfers, and in-person payment as the multiple payment options of the processor. The PayPal team has no surcharges or hidden fees in their fee policy.

    The basic monthly plan charges a rate of $30 with an additional $2.9 per transaction fee. This makes PayPal Pro an extremely affordable payment gateway for your e-commerce projects of a level, beginner, medium-sized, or enterprise. The integration with PayPal Pro is simple and a very effective solution for going global. The Magento 2 pricing for PayPal is affordable as the integration will provide a high return on investment.

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    Braintree integration with Magento.

    Braintree is a PayPal payment solution powered by PayPal for e-commerce stores. Braintree covers over 44 countries and supports over 130+ currencies. This payment gateway is extremely simple for operation facilitation as it has a very user-friendly checkout procedure. This simplicity makes Braintree a preferable payment gateway for Magento or any other online business of all sorts of giants.

    Braintree is actively used by Airbnb as well and this says much about their performance. BrainTree also promises to the users to increase the store conversion rate with this seamlessly integrated platform that includes multiple payment options such as Venmo, PayPal, mobile wallets such as Google Pay, Apple Pay, and debit and credit cards. Additionally, extra features are also provided in the package such as anti-fraud tools, recurring bills, and advanced data encryption. These features rightly so attract Magento merchants towards BrainTree.

    The standard pricing is 2.9% + $0.30 per transaction and this is as the platform shares its roots with PayPal. The Magento Payment Gateway integration with Braintree can be easily carried out by the administrator panel of the Magento store, or you could hire Magento 2 developers to do the process perfectly for you.

    Magento integration with Authorize.net payment gateway.

    Autorize.net is another payment gateway that can be integrated with Magento. This integration solution is generally used by small-scale and medium-sized businesses. Almost half a million merchants all across the globe chose Autorize.net as this platform is easy to use and very simple to implement. This payment gateway offers a virtual point of sales terminal for Magento stores that also comes with multiple alternates for payments such as credit/debit cards (MasterCard, Visa, and American Express), PayPal, e-checks, and other mobile wallets such as Apple Pay and Google pay.

    Authorize.net has two main sections, merchant accounts, and customer accounts. Their merchant tariff is actually quite similar to other rivals especially those powered by PayPal, the rate is 2.9% + $0.3 per transaction fee alongside a $25 monthly fee. The other payment option with no merchants costs $0.1 per transaction and a $0.1 daily fee. The Magento 2 pricing for integration with this payment system also poses no particular problems in integration because this gateway belongs to multiple pre-implemented solutions.

    Magento integration with Stripe payment system.

    Stripe is called as the “backbone of the internet business” by their team. They claim this on the platform’s official website. This is another extremely popular and useful third-party payment processing gateway. Stripe covers over 135+ local currencies in over 35+ different countries. Stripe offers customizability and scalability, much like Magento, and these are Stripe’s strongest advantages that make them an ideal Magento payment processor.

    Stripe includes a completely and fully integrated suite of products as its features. It can support offline and online retailers, software marketplaces, subscription-based businesses, and e-commerce websites such as Magento that can accept payments and send the payouts with Stripe. Their pricing plan is similar to their competitors at 2.9% + $0.3 per transaction using the processor.

    However, setup ones and monthly fees are unavailable. The Magento Payment Gateway integration with Stripe makes use of the “world’s most easy to use and powerful APIs” according to their website. What this implies is that a basic level of programming knowledge is required to set this up. Since the majority of the store owners would rather invest their time elsewhere, it is preferable to hire Magento 2 integration services from Magento-certified companies. The compatibility of the extension with Magento will be checked by the service providers beforehand and then give you the go ahead.

    WorldPay payment system integration with Magento.

    WorldPay offers e-commerce merchants access to across 146 countries and access to over 126 currencies. This payment processor is based out of Florida, USA. The FIS Company has applied its 50-year-old experience in the finance sector to develop this global e-commerce payment solution. WorldPay supports multiple businesses and it is quite impressive as the domains they serve are multiple.

    They support retail, travel, software, healthcare, airlines, gaming, education, media, and restaurants. WorldPay is a cloud-based JSON API and this makes this gateway optimal for e-merchants who want to build Omnichannel payment solutions. It was also awarded the “Best Gateway Uptime” and the “Highest Authorization Rate”. WorldPay makes use of an intuitive and easy-to-integrate API that allows one 0ff payments, banking cards, checkouts, and recurring payments in the Magento store in a hassle-free manner.

    The Magento payment gateway integration with WorldPay is best performed by Magento web development services from companies such as Folio3.

    Magento integration with Viveum.

    Viveum is a very easy to install payment processor. Magento also lists Viveum as their first partner in their system. Viveum as a payment processor supports over 300 different payment methods. This can be integrated alongside pre-implemented in the Magento shopping system with additional plugins. The developers of Viveum provided various types of businesses by simple payment solutions even if it becomes difficult for the customers to do it themselves.

    So it is best to integrate this payment gateway with a Magento integration services. Viveum offers a “Pay Now” link that acts as an invoice alongside a simple payment page on the store’s storefront. Viveum can boost the business turnover on landing pages with secure payments. Viveum has over 1000 partnering financial institutions that enable the payment processor to offer a great portfolio of customers who use the payment options Viveum producers.

    These are multiple payment gateway options that are available to Magento stores. It is best to consult with a Magento web development company as they will weigh in their experience to choose the best payment gateway for you and also provide Magento integration services so that you manage the product line and product mix while the company sets up your store with a payment processor.

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

    E-commerce stores are based on comfort. They make the whole process automated and effortless. This is where payment gateways come into play to make sure that the transactions are securely managed. These are multiple reasons that highlight the importance of Magento payment gateways and why your store should have them.

    • Having payment processors help the store expand globally. These payment gateways ensure that orders can be paid for from any corner of the world. This lets the store cater to geographically separate clients. For example, PayPal is quite popular in the United States, Australia, and Europe. So a PayPal user can pay for goods or services to the seller in the USA. This increases brand exposure as well. This makes the store break the international boundaries as well and the availability of multiple and popular gateways can help you achieve this target.
    • The payment processors have multiple options such as cash on delivery, advance payments, or payments in installments allowing the Magento store to target multigenerational audiences. Online purchasers expect multiple payment options at their convenience. For example, PayPal is mostly used by the millennial generation, payments via credit cards are most preferred by Generations X, and Boomers would prefer cash on delivery after physically receiving the products.
    • It also helps build customer trust. When the Magento store receives online payments, it means that the store is now responsible for the client’s sensitive data such as their credit card number, address details, and client credentials. This means that the customers place their trust in you and also expect you to provide them with the best services. When the store has multiple payment processors that are extremely secure, the customer trusts the store and places orders without any worry.
    • Payment gateways make sure that the clients who pay by card are directly catered to as they prefer hassle-free checkouts. This segment is quite huge in terms of numbers and can account for almost 75% of the total sales of your store.
    • This provides an automated workflow that is hassle-free. The orders are placed within a few minutes and the customers then wait for the delivery.

    These are multiple factors why it is a must for your Magento store to have Magento payment gateway integration. It is also equally important to hire Magento integration services to perform the integration to make sure that no errors are present in the store that may not result in poor customer satisfaction. The professionals make sure that the process is up to standards to ensure the best services.

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    Final Thoughts.

    It is quite established now that having a payment gateway for Magento is not an option, but rather a need for e-commerce store merchants. Their Magento store needs payment processors to facilitate the transactions. This multi-million dollar turnover that payment gateways facilitate on a daily basis throughout the globe makes them an essential part of e-commerce stores. These implement a secure payment solution to the clients for all online businesses.

    Payment gateways provide benefits to stores such as improved data checking, managing the refunds of the store, helping in selling globally, enhancing the security of the store, and also making sure that the PCI DSS standards are met. There are multiple options for payment gateways such as PayPal, Authorize.net, BrainTree, Stripe, Viveum, and WorldPay. We also prefer making use of Magento Web development services to integrate the payment processors and also provide other services at a very optimal Magento 2 pricing package.


    What payment gateway does Magento use?

    Magento uses multiple payment gateways such as PayPal, Autorize.net, and BrainTree as well. Magento also provides other payment gateways such as Stripe, WorldPay, Viveum, and other payment processors as well. To implement the gateway, you will need to hire Magento 2 developer to weigh in with their experience as to which gateway will most suit your store, then perform the integration and run all the checks. Then after the re-opening of the store, the new integrated payment gateway will be up for use of your clients. However, companies offer a much better Magento 2 pricing package for clients as it includes other essential services such as maintenance as well.

    How do I integrate a payment gateway with Magento Store?

    Setting up a payment gateway varies from a gateway to another gateway. But you can follow these steps and get an idea of how payment gateways can be set up.

    1. Firstly, you will need to configure the modules. You will have to go to the payment method module configuration on Magento.
    2. Then, you need to implement your new payment method. It will allow the processing of payments between the payment processor and the Magento store itself. You can get additional information on the payment info in the Magento Admin checkout.
    3. The final step will be to configure and set up the payment actions. These actions include authorization, voiding of transactions, and others as well.

    However, we do not recommend that the procedure is carried out incorrectly as it can lead to outcomes that we do not want to comprehend such as data leaks, glitches and bugs, and unsatisfactory performance. It is best to hire Magento integration services from Folio3 to guarantee perfection and a very reasonable Magento 2 pricing package for integration.

    How much does it cost to integrate a payment gateway?

    The Magento 2 pricing for Magento payment gateway integration is quite variable as it depends on other factors such as time, location of the store and the company servicing you, their expertise, and other factors. However, it can cost around $300 and can be done within 3 working days. These exclude the bank application processes, the complexity of the customization needed, and the taxes applicable by the respective laws of the countries.

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    How do I integrate the Payumoney payment gateway in Magento? 

    To integrate Payumoney payment gateway in Magento, you can follow these steps.

    Log into your Magento admin panel and navigate to payment methods through the stores’ configuration sales payment method.

    1. Then under payment method select Payumoney and then enter yes.
    2. Under the enable button, payumoney will be present.
    3. Enter the account type, merchant key, and the other details that are required. You can find all details in the integration details of the Payumoney payment dashboard.
    4. You will have to click on save.
    5. Then you must go live and test the gateway. You will select the sandbox mode as the environment and make test transactions on the store with the Payumoney gateway. You will go to the storefront, choose a product, order it and pay by the Payumoney payment gateway in Magento.

    If the transaction is successful, it means everything seems to be working fine and you can go ahead. However, we advise you to hire Folio3 to provide Magento integration services with Payumoney. This is to ensure that no errors occur when dealing with customer credentials. It is not guaranteed that the gateway will work perfectly as errors may occur and it is best to have those to handle these exceptions who have expertise.


    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.