If you're running a membership site, you likely want it to generate income. To achieve this, you'll need a straightforward and secure method for collecting payment details from users.
The good news is that people nowadays are aware of what is a payment processor & more accustomed to making online payments, reducing the distrust that was common in the early days of online transactions. However, it's still crucial to reassure users about the security of your payment system.
Unlike a decade ago, you now have a variety of options for processing payments. It's not limited to just PayPal or complex merchant accounts. But with more choices comes the need for careful consideration.
Questions may arise, such as whether you need a payment gateway, a merchant account, a third-party system, or a full-blown e-commerce setup. Additionally, if you plan to accept different payment types (like one-off and recurring) or sell various products, you might wonder if a single payment system can handle everything.
The abundance of choices can make it challenging to decide on the best payment processor for your membership site.
Check Out various options and factors to help you choose the right payment processor for your membership site.
Let's look at the main payment options:
PayPal Standard:
A user-friendly option trusted by many.
Simple to set up, but it redirects users away from your site during payment.
PayPal Pro:
The premium version allows on-site credit card payments.
Offers a polished look and enhanced protection but requires security measures and PCI compliance.
Stripe:
A great PayPal alternative, nearly as easy to start with.
Users seem to stay on your site, but SSL certificate is necessary, and availability varies by country.
Other Payment Gateways:
Explore options like Mollie, Pagseguro, PayUmoney, Online Worldpay, Razorpay, PayFast, PayStack, Square, Skrill, Braintree, Klarna, Paddle.
Each comes with distinct features and services, catering to different needs.
Authorize.net Payments:
Requires more effort to set up and PCI compliance.
Offers advanced features and robust payment protection.
Shopping Cart or E-commerce System (e.g., Zaxaa, WooCommerce, SamCart):
Integration with a payment processor like PayPal, Stripe, Mollie, etc., is necessary.
Provides advanced features such as one-click upsells, and streamlining the purchasing process.
Alternative Currency (e.g., Bitcoin): Uncommon but gaining popularity in certain markets.
Offline Methods (e.g., cheque, cash, bank transfer): Not typical for online membership sites but might be used in specific situations.
For beginners, PayPal or Stripe is often recommended. Most membership plugins integrate with third-party payment processors, making the setup quick and easy. Stripe's checkout process is preferred for its smoother experience and card details storage.
Consider offering both Stripe and PayPal options to accommodate users' preferences. Despite occasional disputes or chargebacks, using your account responsibly and notifying PayPal of any unusual activity minimizes issues.
It's essential to be aware of your payment processor's policies regarding disputes and chargebacks in advance
Can you update your payment preference? You'll have the flexibility to modify or switch payment methods in the future if needed, but it's advisable to initiate with a clear plan in mind.
When dealing with a membership site, a key consideration arises if you have ongoing recurring payments through platforms like PayPal or Stripe. Transitioning to a different payment method may pose a challenge as existing payments cannot be transferred.
In such cases, you may choose to run your current payment method alongside the new one or request members to establish a new account with the updated payment option.
However, it is generally recommended to avoid this approach as asking members to essentially resubscribe can result in significant membership loss. While changing the payment method is feasible as circumstances evolve, such a transition may not be seamless for existing members.
Now, how should you determine your payment option? Consider the following factors:
Security:
If you collect payment details on your membership site directly, ensure your website is highly secure. For Stripe, obtaining an SSL certificate might suffice, but for PayPal Pro or most merchant systems, you may need to attain PCI compliance. Research the security requirements for your chosen Payment Service Provider to handle payments securely.
Integrations:
Opt for a Payment Service Provider that integrates well with the membership plugin you plan to use when building your membership site. Common options include PayPal (standard and Pro) and Stripe, while Clickbank and Authorize.net are also widely integrated. Verify the available membership integrations for other payment options. If uncertain, consider Wishlist Member, known for having the most payment integrations among membership plugins.
Earnings
What is the anticipated monthly income for your endeavour? If your goal is to achieve a monthly income in the five or more figures, utilizing standard PayPal may not be the most suitable choice.
In such cases, opting for a more robust solution such as PayPal Pro, Authorize.net, or another merchant account with dedicated account management or support services would be advisable.
Transaction Fees
Different payment systems come with varying fee structures, including either a percentage of your income, a flat monthly fee, or a combination of both.
It is crucial to be well-informed about the precise fees you will incur and any potential additional costs or increases. For instance, PayPal Pro requires an extra monthly fee for processing recurring payments.
Recurring Payment Capability
If you intend to facilitate recurring payments, which is common for a membership site, ensure that your selected payment method supports this feature.
For instance, with WooCommerce, acquiring an additional add-on (Woo Subscriptions) is necessary for this purpose. Similarly, with PayPal Pro, an additional fee is required, and you need to activate an extra feature on your account.
As mentioned earlier, if you are not already using an alternative payment option, PayPal Standard and/or Stripe are generally considered the optimal choices when initiating your membership site.
These options can efficiently support you until your earnings reach six figures, at which point it might be prudent to reassess your payment processing options.
If you anticipate early success with your membership, reaching the six-figure mark quickly, it could be advantageous to consider a more robust option like PayPal Pro or Authorize.net from the outset, eliminating the need for future transitions.
Bottom Lines:
For a successful membership site, ensuring secure and efficient payment processing is crucial.
The blog explores various options like PayPal Standard, PayPal Pro, Stripe, and others, highlighting factors such as security, integrations, earnings, transaction fees, and recurring payment capability.
It recommends PayPal or Stripe for beginners but suggests transitioning to more robust options like PayPal Pro or Authorize.net as your site grows and income increases, ensuring a seamless payment experience for both you and your members which can be the best payment processor for small business.
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