Setting Up and Managing Payment Methods
Accepting payments online requires connecting your store to one or more payment gateways. A payment gateway securely processes credit card details, communicates with banks, and deposits money into your account. This guide covers how to choose and configure the right payment methods for your business.
1. Choosing a Payment Gateway
The right gateway depends on your location, sales volume, and the currencies you accept. Here is a comparison of the most common options:
| Gateway | Best For | Transaction Fee | Notes |
|---|---|---|---|
| Stripe | Most businesses, developers | 2.9% + 30c | Excellent API, supports 135+ currencies, no monthly fee |
| PayPal | Customers who prefer PayPal checkout | 3.49% + 49c | Widely trusted; buyer protection builds customer confidence |
| Square | Businesses with physical locations | 2.6% + 10c (in-person) | Integrates online and in-person sales in one dashboard |
| Moneris | Canadian businesses | Varies by plan | Strong Canadian bank support, Interac integration |
Offer Multiple Payment Options
Studies show that offering at least two payment methods reduces cart abandonment. A common combination is Stripe (for credit/debit cards) plus PayPal (for customers who prefer not to enter card details on your site).
2. Connecting Stripe
Stripe is the most popular gateway for e-commerce websites. To connect it:
-
Create a Stripe account
Visit stripe.com and complete the sign-up process. You will need business information and bank account details for payouts.
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Find your API keys
In your Stripe dashboard, go to Developers > API Keys. You will see a Publishable Key and a Secret Key.
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Enter keys in your website settings
In your website admin, go to Payments > Stripe and paste both keys. Start with test keys first.
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Enable the payment method
Toggle Stripe to "Enabled" and save settings.
3. Testing Payments Before Going Live
Always test your payment setup thoroughly before accepting real money. Every major payment gateway provides a test (sandbox) mode with simulated card numbers.
To test Stripe payments, use these test card numbers:
| Scenario | Card Number | Other Fields |
|---|---|---|
| Successful payment | 4242 4242 4242 4242 | Any future date, any CVC |
| Card declined | 4000 0000 0000 0002 | Any future date, any CVC |
| Requires 3D Secure | 4000 0025 0000 3155 | Any future date, any CVC |
Pre-Launch Payment Checklist
Before switching to live mode, confirm: a successful test order completes and appears in your gateway dashboard; the customer receives an order confirmation email; refund and cancellation flows work correctly; failed payment messages display helpfully to the customer.
4. Currencies and Tax Settings
Configure your store's currency and tax rules in Settings > General or Settings > Tax:
- Base Currency: The currency your prices are listed in. Changing this after launch requires updating all product prices.
- Currency Symbol Position: Whether the symbol appears before or after the amount (e.g., $25.00 vs 25.00 CAD)
- Automatic Tax Calculation: Enable if your platform supports it. For Canadian businesses, configure HST/GST rates by province.
- Tax-inclusive pricing: Decide whether displayed prices include tax (common in Europe) or show tax at checkout (common in North America)
5. Payment Security
Protecting customer payment data is both a legal requirement and a trust signal. Key security requirements:
- SSL Certificate: Your site must use HTTPS. Most hosting providers include free SSL via Let's Encrypt. Never process payments over HTTP.
- PCI Compliance: Using a hosted payment gateway (Stripe, PayPal) rather than building your own form keeps you out of scope for most PCI requirements, as card data never touches your server.
- Do not store card numbers: Never save raw card numbers in your database. Use tokens provided by your gateway to represent saved cards.
- 3D Secure (3DS): Enable 3DS authentication to add an extra verification step for high-risk transactions. Stripe handles this automatically.
Keep API Keys Secret
Your Secret Key gives full access to your payment gateway account. Never include it in client-side code (HTML, JavaScript), share it in emails, or commit it to a public code repository. If a secret key is exposed, revoke it immediately from your gateway dashboard and generate a new one.
6. Processing Refunds
Refunds can be issued directly from your website's order management system or from the gateway dashboard:
- Navigate to Orders and find the relevant order
- Click Refund and enter the amount (full or partial)
- Select a reason (optional, for your records)
- Confirm the refund. The customer typically receives the money within 5-10 business days depending on their bank.
Note that transaction fees are generally not returned when you issue a refund. Check your gateway's policy for details.
7. Summary
A reliable payment setup is the foundation of any successful online store. Key takeaways:
- Offer at least two payment methods to reduce cart abandonment
- Always test thoroughly in sandbox mode before going live
- Ensure your site has HTTPS before processing any payments
- Never store raw card numbers or expose secret API keys
- Configure correct currency and tax settings before your first sale