Shopify Payment Gateways: Your Best Bets When Stripe Isn't an Option
Hey everyone! As a Shopify migration expert and someone who spends a lot of time digging through our community discussions, I often see common challenges pop up. One that recently caught my eye and sparked a really helpful conversation was from MEZ_MUS, who was wrestling with a familiar dilemma: what to do when Stripe isn't an option for your Shopify store?
MEZ_MUS was in the process of launching a store primarily targeting the US market but, due to their business location, couldn't access Stripe. They already had PayPal set up (which is a great start!), but wisely wanted to add another robust payment gateway to boost checkout flexibility and, hopefully, conversion rates. They were looking for a reliable, widely accepted, long-term solution that would also support future international growth.
This is such a common scenario for many global merchants, so let's dive into the insights shared by the community and break down your best options.
Your Go-To Payment Provider Alternatives When Stripe Isn't Available
When Stripe isn't on the table, and you're already rocking PayPal, the community had some solid recommendations for additional payment gateways that offer broad support and a smooth experience, especially for US customers.
1. 2Checkout (now Verifone)
Mateo-Penida, a helpful voice in the thread, immediately suggested 2Checkout (now Verifone). This one is a fantastic option for many merchants in MEZ_MUS's shoes because:
- It's available in almost any country, making it incredibly versatile for businesses operating from various locations.
- It works great for US customers, which was MEZ_MUS's primary target.
- It boasts a straightforward Shopify integration, so you won't be pulling your hair out trying to set it up.
- It's a strong contender if you have ambitions to sell internationally down the line.
2. Authorize.net
Another solid contender brought up by Mateo-Penida was Authorize.net. This gateway is very trusted by US buyers, which is a huge plus for conversion rates if your main market is the States. However, it's worth noting that Authorize.net supports fewer merchant countries than 2Checkout, so you'll want to double-check if it's available for your specific business location.
The Catch: Shopify Transaction Fees with Third-Party Gateways
Here's a crucial piece of information that Mateo-Penida highlighted – and it's something every merchant needs to factor into their decision-making:
Any third-party payment gateway (like 2Checkout or Authorize.net) adds a Shopify transaction fee on top of the gateway's own processing fees.
These Shopify fees typically range from 0.5% to 2%, depending on your Shopify plan. While these gateways are excellent for flexibility and reach, those extra percentage points can add up, especially as your sales volume grows. It's a trade-off: broad availability and customer choice versus potentially higher overall processing costs.
The Advanced Strategy: Unlocking Shopify Payments with a US LLC (and the Important Caveat!)
For those looking to optimize long-term costs and avoid those extra Shopify transaction fees, Mateo-Penida brought up an advanced strategy: forming a US LLC. The idea here is that by establishing a US legal entity, you can gain direct access to Shopify Payments, which means you bypass those additional transaction fees.
Services like Firstbase or Doola can help you set up a US LLC remotely, often for a fee ranging from $100 to $500. This sounds like a fantastic workaround, right? Get the benefits of Shopify Payments without the geographical restrictions!
However, and this is where the community discussion got really interesting and important, ajaycodewiz jumped in with a critical warning. While forming a US LLC might seem like a straightforward path for non-US citizens, it often comes with its own set of hurdles:
"Payment Identity Verification for non-US citizens (you will be able to sell the product but during payout, you might face the hurdles)"
Ajaycodewiz specifically mentioned a potential "Payment Identity Verification loop" and "funds on hold" situation. This means that while you might successfully set up your LLC and even start selling, getting your actual payouts from Shopify Payments could become a significant headache due to complex identity verification processes for non-US residents operating a US entity. It's a classic case of solving one problem only to encounter another, potentially more frustrating one.
Making Your Decision: Weighing the Options
So, what's the takeaway here for MEZ_MUS and anyone else facing a similar challenge?
1. For immediate, reliable solutions: If your priority is getting up and running quickly with a trusted provider for US customers and potentially international expansion, 2Checkout (Verifone) is a strong recommendation. Authorize.net is also excellent if its merchant country support aligns with your needs. Just remember to factor in the Shopify transaction fees.
2. For long-term cost optimization (with caution): The US LLC route to access Shopify Payments directly can save you those transaction fees, but it's not a magic bullet, especially for non-US citizens. If you're considering this, do your homework on the identity verification requirements and potential payout issues. It might involve more administrative complexity than you anticipate.
Ultimately, choosing the right payment gateway (or combination of gateways) is a critical decision for any Shopify store. It's a balance between seamless customer experience, merchant eligibility, and cost efficiency. Start with what gets you selling smoothly, and then keep an eye on your growth and explore more advanced strategies as your business evolves. Thanks to MEZ_MUS for bringing up such a relevant topic, and to Mateo-Penida and ajaycodewiz for their invaluable insights!