Daily ArchivesSeptember 8, 2021

Many new site owners find themselves asking a common question: where is the .htaccess file in WordPress sites? Before we get there, let’s zoom out to give some context. 

WordPress relies on several open-source applications, including the PHP interpreter, the MySQL database, and the Apache web server. Apache’s role is to pass requests to WordPress so that HTML pages can be generated. Apache then sends those pages to the browser that requested them. Without Apache, WordPress wouldn’t be on the web.

Apache can be configured to handle requests according to the needs of the application and its users. Most of that configuration lives in the httpd.conf file which acts as a centralized configuration file for all sites on the server. However, it is often necessary to customize the configuration for individual sites. This is where the WordPress .htaccess file comes in.

Htaccess basics

The .htaccess file is among WordPress’s core files, and tells the server how to address certain aspects of your website such as redirecting users and protecting certain directories. It’s a server configuration file that allows and disallows certain functionality. Unlike the httpd.conf file, the .htaccess file is a per-directory configuration file that only affects the site in the same directory as the file. 

Most WordPress configurations can be done from within the WordPress admin dashboard, but in some cases, it can be useful to make changes to .htaccess. 

Before we look at how to find and edit the .htaccess file, it’s important to understand that mistakes in .htaccess can take a WordPress site offline, make pages inaccessible, or hurt its SEO. Be careful when editing .htaccess, and always have your site backed up.

Where is the Htaccess file in WordPress?

So, how do you locate the .htaccess file? If you look in your WordPress site’s root directory, you may find that it already has an .htaccess file. If it isn’t in your root directory, your .htaccess file may just be hidden from view by your File Transfer Protocol (FTP) client, as it’s a sensitive file that isn’t intended to be edited often. Another possibility, if you can’t find your .htaccess file, is that it just may not exist yet, but let’s back up and take a step-by-step look at how to find the .htaccess file. Generally, you can use the steps below, but keep in mind that there may be some differences with each hosting provider and FTP client.

1. Download an FTP client if you haven’t done so already. Many free versions, such as FileZilla, are sufficient. If you’re hosting with Hostdedi, simply log in to the SiteWorx account shared in your Welcome Email.
2. Connect to your website’s server using the FTP client.
3. Once you have connected to the server, access your site directory (this can be found in your cPanel), and select the “root” folder.
4. Below files such as wp-admin and wp-content, the .htaccess file should appear.
5. Right click on the .htaccess file and select ‘Edit.’
6. You should now be able to make changes to the .htaccess file.

If your .htaccess file is not appearing in the root folder, check with your FTP client on how to access hidden files as every FTP client has its own process.

How the Htaccess file works with WordPress

Whether or not you choose to manually edit the .htaccess file, it’s still being worked on by WordPress. WordPress adds rules to .htaccess, as do some WordPress plug-ins. When you change the permalink structure of a WordPress site, rules are written to the .htaccess file so that Apache knows about the changes. Security plug-ins often use .htaccess to block IP addresses or limit access to the site.

If you aren’t familiar with .htaccess or editing configuration files on the command line, you may prefer to find a plug-in that does what you need before attempting to manually edit .htaccess. These plug-ins are written by developers and extensively tested. 

But if you feel confident enough and have backed up your site, you can still gain quite a few benefits from changing your .htaccess file. From redirects to basic .htaccess security adjustments, let’s take a look at a few short and useful rules you can add on your own.

Create 301 redirects

A 301 redirect is used when a page is permanently moved to a new location. It lets browsers and search engines know that the page is located at a different URL. To redirect a page in your .htaccess file, add the following rule:

• Redirect 301 /old-url/ http://www.example.com/newurl

Block access to sensitive files

Many files in the WordPress directory shouldn’t be readable by the whole internet – the wp-php.config file is a good example. With the following rules, you can block access to files that should not be accessible to all browsers.

• Order deny,allow
• Deny from all

Keeping your sensitive files private with this basic .htaccess adjustment is a smart move, even for new site owners.

Prevent specific IP addresses from loading the site

The .htaccess file can also be used to deny access to requests from particular IPs.
This can be useful for blocking a small number of IP addresses by adding the rules below. 

However, if you’re having problems with brute force attacks against your WordPress site, a plug-in like SiteGuard WP is a more efficient solution.

• order allow, deny
• deny from 203.0.113.0
• allow from all

Make sure to replace the IP address in the above with the address that you would like to block.

Stop directory browsing

Directory browsing, which is permitted by default, allows bad actors to see the files in your WordPress site’s directory – information that might be useful to them.

The above command will prevent directory browsing.

We’ve covered only a few of the many configuration options that can be used to control Apache. For a full explanation, take a look at .htaccess Guide.

Learn more about Htaccess files

We set out to answer a few important questions for WordPress site owners: Where is the .htaccess file in WordPress sites? What is it? And how do we make changes to .htaccess?

To summarize, .htaccess is a configuration file that’s specific to your site and can be found in the root folder of your site directory using an FTP client. By adding a few simple rules into .htaccess, you can create helpful redirects and establish heightened security measures for your site.

Don’t forget, we’re here to help, so don’t hesitate to chat with our experts to learn more about htaccess basics.

If your transaction process isn’t seamless, you’re losing customers.

It takes a very different strategy to sell golf clubs online than it does karaoke versions of pop songs. With golf clubs, the sale is pretty straightforward. Customers know what golf clubs do. With digital products like songs, software, ebooks, white papers, or digital art, you have to work harder to explain what customers are paying for.

To successfully sell digital products online, you have to make the entire transaction process as straightforward and simple as possible.

Shoppers who can’t find their preferred payment option will leave your site. Hastily scrolling customers who don’t see the “Buy Now” button will abandon their carts.

All of the small checkout steps and payment processing are part of your customers’ experience and determine whether you’ve got a sale or an ex-fan of your store. Your payment gateway is a critical part of that process, especially for digital products.

With digital products, the checkout experience doesn’t include things like sizing, shipping, or unboxing a product. It only involves checkout and receiving a downloadable link. Your payment gateway shoulders much of the weight of the customer’s experience.”

So, choose one with the features that grow your revenue, rather than shrinking your customer base.

Mobile-Friendly Payment Gateways

Mobile eCommerce sales in the U.S. are projected to top $330 billion by 2020. If you’re not working with a payment gateway that’s built for mobile, then you’re shooting down your digital product efforts before you get started. Many gateways support mobile payments, but a few, like PayPal and Square, also offer mobile apps to make it easier for customers to pay on their Android or iOS devices.

Mobile payment gateways are good for store owners selling digital products customers experience on mobile devices—mp3 songs, cross-stitch templates, and video tutorials. Customers can pay, download, and begin enjoying their purchases all on their phone or tablet.

These apps also make checkout easy because consumers can save their payment information within the gateway. Auto-filling payment information for small screen devices makes buying digital products easier.

Fees Are Inevitable, But You Have a Choice

To keep from paying too much for your merchant gateway, compare fixed costs to merchant rates. Some gateways have fixed monthly costs like monthly fees and returns charges. Others have higher merchant fees, which they charge for every credit card purchase.

Generally, you want to look for lower merchant fees when you’re selling big-ticket items and to minimize your fixed costs if you’re selling low-priced items.”

Do you plan to sell internationally? If so, look for a payment gateway with low international fees.

Actual merchant fees vary depending on many factors, like the type of card (credit vs. debit) and where the sale takes place (domestic vs international). For example, PayPal’s domestic fees are 2.9% + $0.30 per transaction, but they charge 4.4% + fixed fee based on currency received for international charges. Stripe charges a +1% conversion fee, which may work out cheaper in the long run if you’re selling low-priced items at higher volumes.

Most payment gateways bill you a chargeback fee when a customer asks for a refund. How many refunds you get will depend on your digital product and your return policy.”

For example, you may have fewer returns selling posters versus ebooks—with visual products, people can see exactly what they’re going to get. So, factor in chargeback fees if you expect high return rates.

Website Integration Gives You Control

The best payment gateways for digital products are fully integrated. Complete integration allows customers to make purchases without leaving your website. PayPal offers both integrated and hosted payment options with different pricing.

PayPal’s hosted payment option is less expensive, but your customers will have to go to PayPal’s website to checkout. You lose control of your customer’s experience at the most critical moment—checkout. With an eCommerce platform like WooCommerce, you can integrate multiple gateways into your WordPress site for a streamlined checkout process.

After checkout, it’s time to deliver your product to the customer. Delivery is usually followed by a “Thank You” email, which includes a link to download the product, followed by a confirmation email. You control this email process with your eCommerce platform or recurring payment service like Recurly if you offer subscriptions and memberships.

Make sure your payment gateway integrates with these platforms. The software and services that deliver your digital download links are essentially the UPS or FedEx of your store. If customers don’t get their products because of payment problems, you’re losing sales.

Choose a Gateway With a Merchant Account

Whether you’re selling digital or physical products, you need a merchant account. Merchant accounts are how you get paid from your credit card transactions. You get them from a merchant account provider, which will charge you a merchant fee.

Some payment gateways include a merchant account with their services, making it easy to get started. However, these gateways charge higher transaction fees for the service. For example, Authorize.Net charges 2.9% + $0.30 per transaction if you open a merchant account with them. But if you only need a payment gateway, they charge $0.10 per transaction.

Payment Gateways With Recurring Payments

Digital products are often sold on a subscription basis. Some artists, for example, sell memberships that permit access to exclusive content, like songs, videos, and books.

Even if you’re not selling subscription-based products now, you may want to keep that possibility open in case you decide to later. In the fast-paced world of eCommerce, the more options you have to pivot, the better.

Payment gateways like Payflow offer recurring billing features. Other gateways integrate with third-party plugins that give you this functionality. Stripe integrates with many different recurring payment extensions. With WooCommerce Subscriptions, you can set automatic or manual recurring payments for dozens of different payment gateways.

Gateway Security Protects You and Your Customers

If your customers don’t feel their information is safe on your site, they won’t buy from you.

Get a payment gateway that meets current security standards. To adhere to industry standards for processing payments, payment gateways need to be PCI compliant. This compliance indicates the software adheres to the current security standards for encrypting and transmitting customer data. Look on the gateway’s compliance page to find out their PCI Service Provider level.

Payment gateways like Stripe will require you to confirm your own PCI compliance every year, usually through a Self-Assessment Questionnaire (SAQ). The biggest requirement for your website will be to install an SSL certificate for your site—a technology called Secure Sockets Layer that helps you safely transfer data. There are six different types of SSL certificates to choose from.

Not Having Fraud Detection Is Costly

Credit card fraud continues to punish eCommerce stores—to the tune of $6.4 billion in losses 2018. Gateways can help prevent these losses. PayPal offers seller protection programs to guard against unauthorized transactions or “Item not received” schemes. Stripe Radar uses machine learning to stop fraudulent purchases before they happen, and you can purchase an add-on for more fraud fighting features.

Whether you choose a gateway with fraud insurance, machine-learning algorithms, or both, make sure the protection covers digital goods before signing up.”

Reporting Makes You More Money

Choose a payment gateway with reporting features that help you identify popular products, high-spending customers, and other relevant sales data.

By identifying popular products, you can put more resources into promoting them through social media ads. By grouping your customers (e.g., “one time buyers” versus “big spenders”), you can tailor your email marketing more effectively.

For example, you could send coupons and discounts to customers who buy the least or promote big-ticket items to the customers who spend the most. With WooCommerce, you can also look in depth at similar analytics.

Payment gateways like Mastercard have powerful reporting dashboards. You can view a single transaction or look at the yearly sales trend for a specific product. Braintree reporting lets you see disputed transactions so you’ll always know the status of your refunds and chargebacks.

Your Gateway Will Help—or Hinder—Your Growth

In October 2018, the founders of the project management program Basecamp were elated with the reception of their new book, It Doesn’t Have To Be Crazy At Work. They appeared on multiple major podcasts and got positive reviews in The Economist and The Wall Street Journal.

One big problem was driving them crazy, though—their publisher hadn’t printed enough books. People trying to buy on Amazon couldn’t, and some were shown they’d have to wait two months for delivery.

All of their launch publicity was wasted because the lost sales kept them off the bestseller lists.

You know your digital product is valuable. An influential expert might too—mentioning it on her podcast or social media account. If your product becomes popular and sales explode, you want your payment gateway to be ready. An outage at the wrong time could cause you to miss your big chance.

You’ve invested your time, creativity, and knowledge into your digital product. Invest in a payment gateway that sets you up for the success you’re dreaming of.

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Related Content

Chargebacks are a safeguard for shoppers, and from that perspective they are good for eCommerce. They reassure shoppers that when they give their credit card details to a merchant or payment processor, their money will be returned if they aren’t satisfied. But chargebacks put strain on eCommerce retailers, who have occasionally been driven out of business by excessive chargebacks. Read More »

The quick and easy way to start selling products on your WordPress website is to install the WooCommerce plugin.

However, there’s another option for the single eCommerce store model—it’s the WooCommerce multi-vendor marketplace. With a multi-vendor marketplace, you host a small or large group of suppliers on your site, skipping the hassle of ordering and storing inventory.

The vendors deal with inventory, you manage your site. Win-win.

To create a WooCommerce marketplace, you need a multi-vendor plugin with features that streamline your management duties and attract more vendors to your store. Choose a plugin that matches your budget and business goals. And think about the future. Find a multi-vendor plugin that will accommodate your store as it grows.

Popular Multi-Vendor Plugins

These multi-vendor plugins integrate with WooCommerce and WordPress:

This list isn’t comprehensive, but it is representative of a group of plugins with the marketplace features you’ll want to consider.

Multi-Vendor Plugin Features

Here are features to look for in a multi-vendor plugin.

Price

To take advantage of the full-featured version of a multi-vendor plugin, you’ll spend around $79 to $149 per year. Plugins like Dokan and WC Vendors have a free or “lite” option that will get you started but lack some of the more advanced features you’ll need later. While the core functionality of WC Marketplace is free, you’ll need to download some add-ons to get up to the pro feature level.

If your start-up budget is a big goose egg, starting with a free multi-vendor plugin and adding features later is a good plan. If you’re able to pay full price upfront, check to see which plugins have a money back guarantee. For example, WC Vendors doesn’t, but Dokan does.

Dashboard for Vendors

Your role as marketplace manager means you shift much of the mundane operational tasks to the vendors on your site. For example, one common task store owners delegate is ordering products. Letting vendors order their own stock means you don’t have to. Look for a plugin with a vendor-accessible dashboard that gives them user-level control over things like…

• Checking order status
• Adjusting shipping rates
• Editing their profiles
• Viewing reports on sales performance

User-friendly front-end vendor dashboards keep your sellers happy. If vendors lack enough access to their products or the dashboard interface is too confusing, they will get frustrated and leave.

Custom Commissions

As a marketplace owner, you make a commission for every sale. Some store owners charge a flat rate (e.g. 15%) for every sale, others vary their rates based on the product. For example, in a tiered markup strategy, higher ticket items tend to have lower markups (e.g. 10%) while lower priced ones have higher markups (e.g. 50%). If you want the flexibility to set your commissions differently—based on seller or product—look for a plugin with a custom commissions feature.

Custom commissions also work well if you want to charge a monthly fee for selling on your site. For example, with Dokan you can create a subscription package for vendors to list their products on your marketplace. Custom commissions also give you product pricing control, since your fees and markups will inevitably be rolled into what consumers pay.

Custom Tax Collection

Online sales tax collection took a big turn in July of 2018 when the Supreme Court ruled that states could begin collecting sales tax for online purchases. Previously merchants who didn’t have a physical brick-and-mortar were exempt. Now every state can force vendors to charge sales tax even if they’re completely online.

Although no state, at the time of writing, has begun collecting online sales tax, each will probably have a different rate. Giving each vendor the ability to charge their state’s sales tax rate will make everyone’s lives easier. State sales taxes are the future of eCommerce. Get your marketplace prepared now.

GDPR Compliant

The General Data Protection Regulation (GDPR) is a new global data protection law that took effect in May of 2018. The new regulation applies not just to European businesses that collect customer data (e.g. credit card numbers) but to any business that works with them. The GDPR outlines cybersecurity standards that eCommerce sites like multi-vendor marketplaces must adhere to when transacting consumer data. Marketplace plugins that aren’t GDPR compliant not only put you at risk of hefty fines, but they’re also less secure. Customers who don’t trust you with their data won’t trust you with their business.

Digital Product Support

If your marketplace will only deal with physical products, you won’t need a plugin that supports digital products. But if you’re planning on including things like songs, video tutorials, or eBooks, make sure it does.

It’s smart to plan for both digital and physical products. Digital products help increase your profits because they tend to have higher markups. They’re also excellent options for establishing dependable revenue streams through magazine subscriptions, club memberships or other recurring payments.

Installing a Multi-Vendor Plugin

Once you decide on the multi-vendor plugin that fits your business goals and budget, it’s time to integrate it into your WooCommerce or WordPress theme. Every plugin will require a different installation process. To give you a general idea of what’s required, here are the basic steps for installing Dokan.

Download and Install Dokan

1. Go to the Dokan website and download the plugin. If you are using Managed WooCommerce on Hostdedi, Dokan is included in your partner plugin selections using the selector tool.
2. Go to the Plugins menu in WordPress and click Add New, then Upload File.
3. Click Choose File and select dokan.zip file you downloaded. Click Install Now.
4. Next, click Activate Plugin.

Dokan Setup Wizard

1. Store Setup. Enter your store’s URL and choose who will be the “Extra Fee Recipient”: the seller or admin.
2. Selling Setup. Decide the vendor commission percentage and enter the amount.
3. Withdraw Setup. Enable the withdrawal methods for paying your vendors. Paypal, your bank, or Skrill.
4. Hit the “Setup your Dokan!” button.

WordPress Configuration

To get a multi-vendor plugin to function with WordPress, you need to enable registration to add vendors. By default, the registration form isn’t enabled. To enable registration, follow these steps:

1. Go to wp-admin → Settings → General
2. Check the box that says “Membership – Anyone can register”.
3. Press the save button.

To work with Dokan’s front-end templating system, you have to configure your permalink. Other multi-vendor plugins may also require a permalink configuration.

1. Go to Settings → Permalinks.
2. Select “Post Name” radio button. 
3. Select “Custom Base” radio button and write “/product” on the box.
4. Click the Save button.

Once you’ve got your plugin downloaded and playing nicely with WordPress, you can begin setting up your account. Whether you use Dokan or another plugin, you’ll need to configure specific settings like these:

• Gateway payments
• Shipping methods
• New vendor product uploads
• Admin commission percentage and type (flat or percentage)

Here’s the complete list of steps for getting started with Dokan.

Managed WooCommerce Plans With Marketplace Functionality

Another option for starting your multi-vendor marketplace is to skip choosing, downloading, and configuring a multi-vendor plugin altogether. Instead, go with a Managed WooCommerce Standard (or above) plan, which includes everything you need to get started and grow your marketplace:

Combining these essential parts of any marketplace saves you money. So a starter plan is a good investment even for small budget startups. And as your sales increase, you can easily upgrade to a more premium Dokan plan without having to switch multi-vendor plugins. Starter plans are an effective way to skip to the front of the line.

Multi-vendor plugins are how you and your vendors work together within your marketplace. So, they’re an integral part of your overall financial and managerial success. Ensure that the multi-vendor plugin you choose offers the basic practical features mentioned here along with some additional nice-to-haves that will support your store in the future.

Have you been thinking about starting a WordPress blog? Does the idea of blogging about something you enjoy and sharing your insights, ideas, and tips with the world get you excited? Are you ready to start a blog, but aren’t sure what to do?

No problem. We’ve got your back with a step-by-step list of exactly what you need to do to start a WordPress blog.

1. Purchase A Domain Name

First things first. You need to name your blog and purchase the domain name from a domain registrar like NameCheap or Domain.com. A domain name is also called your website address or URL.

If possible, your domain name should match the name of your business or blog. If your business, brand, or personal name isn’t available, consider using the big result you help clients achieve or brand keywords as your domain name.

Your domain name should also:

• Be easy to pronounce, say out loud, and spell
• Be free from hyphens and dashes
• Be easy to remember

2. Purchase Managed WordPress Hosting

Once you have your domain name secured, you also need to purchase managed WordPress hosting. Managed WordPress hosting is website hosting built specifically to support WordPress websites. WordPress comes already installed so you don’t have to do any of the setup.

Hostdedi’ Managed WordPress Hosting includes:

• Automatic WordPress updates and plugin updates with a Visual comparison tool
• Dashboard to manage multiple WordPress sites with ease
• Plugin-based migrations
• Easily create multiple websites at once using Stencils
• Automatic backups
• Staging for testing new themes and plugins without risk
• No limit to the number of installed plugins and SFTP/SSH access
• Free and installed SSL certificates on all sites
• iThemes Sync Pro

3. Connect Your Domain Name And Hosting

Now you need to connect your domain name and hosting account so your new WordPress website will show up at your web address so people can visit it. To do this you need to:

1. When you sign up for your managed WordPress hosting account, you’ll receive an IP address for your website either in your hosting dashboard or by email.
2. Within the hosting panel, you need to add your domain name to the configuration settings so the host knows the right domain to use for the website.
3. Log into your account with the domain registrar you used to buy your domain name and edit the DNS settings. Change the A-Record to the IP address provided to you. This change can take anywhere from an hour to 24 hours to propagate.
4. Back in the Hostdedi hosting panel, enter your domain name into the field labeled primary domain and click the update button to change all of the settings to use your URL.

4. Choose A WordPress Theme

Now that your domain name is connected to your hosting account and your new WordPress site shows up at your desired URL, it’s time to choose a WordPress theme. The theme you choose will dictate the design and look of your blog.

• In your WordPress dashboard, under the Appearance > Themes menu on the left-hand side, you’ll find the option to add a new theme.
• You can then browse themes available through the WordPress.org theme repository right in your dashboard, select the one you like, and be on your way.
• If you don’t see a theme you like, you can search for a premium WordPress theme online that best fits your needs, purchase that theme, download a zip file of the theme, and upload it right to your website in the themes dashboard.

Quick Tip: When selecting a WordPress theme, ignore the colors, images, and design elements as all of those items can be changed easily. Instead, focus on the structure and layout of the page templates and how the content is organized.

5. Customize The WordPress Theme

Once the theme you chose is installed, it’s time to make any customizations and modifications needed, like adding your logo, changing the colors to your CTA buttons, and even changing the fonts used. Many pre-built commercial themes provide several customization and template options for you to choose from.

The WordPress Customizer found under the Appearance > Customize menu allows you to make changes to the theme design and see the changes you’re making in action (in desktop, tablet, and mobile views) while they are being made.

Some of the options you can customize include:

• Identity: Add the site name, tagline, logo, and site icon (favicon)
• Menus: Quickly create or edit the navigation menu for your site
• Colors: Change the colors used in the WordPress theme
• Single Post: Configure specific settings for your blog posts like whether or not to include an author box
• Background Image: If your theme uses a background image, you can set it or change it here

6. Add Content And Images

The theme you selected will determine the layout of your homepage and whether your blog archive (main list of all your blog posts) is on the home page or a separate blog page. Now that you have customized the theme to be reflective of your brand, it’s time to add your core pages like the about page and contact page and to add your content and images to the homepage and any other page that you create.

7. Add A Contact Form and Social Icons

Along with the content and images for the site, it’s also a smart idea to add a contact form to your contact page to easily allow people to contact you without publishing your email address online and opening yourself up for a barrage of spam.

WP Forms comes with Hostdedi’ managed WordPress hosting, so it’s already installed and ready for you to use. And, because it’s built with beginners in mine, you’ll be able to create your new contact form in no time.

Also, take a moment to think through how you would like to connect your social media audiences to your website, whether through prominent positioning of the social icons in your nav menu or minimized icons in your footer or sidebar.

8. Setup Google Analytics

Google Analytics is a powerful analytics service that provides reports on website traffic, page views, bounce rate, referral sources, user behavior, website conversions and goals, and more. This information is critical to the growth and improvement of your website, your ongoing marketing strategy, and the expansion of your brand.

9. Start Publishing Blog Posts

At this point your new WordPress blog exists on your new URL, the theme is set up and customized to reflect your brand, and the homepage, about page, contact page, and any other needed pages have been created and the content has been added. This means there is only one last thing left to do…

Start creating blog content and publishing blog posts. Now it’s up to you to write or record new blog posts, publish them, and share them out across social media to bring traffic back to your site. It’s also up to you to market your new blog and get the word out about your blog so new readers can find you!

Need A WordPress Host?

Managed WordPress Hosting from Hostdedi automatically handles core WordPress and plugin updates, backups for you and your clients, image compression and more.

The idea of a single payment platform seems smart to many new business owners because it simplifies the process. But having multiple gateways actually offers a ton of advantages that help make your business more profitable.

What are multiple payment options? And are they right for your store? Here are a few pros and cons of multiple payment methods.

When it comes to checkout, you want to make the processes as convenient as possible. Multiple payment methods help. If customers can’t find their preferred payment method, they will abandon their shopping carts.

The Baymard Institute surveyed online shoppers about their reasons for abandoning items in their online cart. The survey found that 8% of people abandoned because there weren’t enough online payment methods available. That percentage represents a healthy chunk of missed sales.

Smart online store owners also create convenience for customers by supporting mobile payments. Retail studies estimate that U.S. sales via smartphone will grow at an annual rate of 18% over the next five years. Smartphones will influence customer buying decisions for more than a third of all U.S. retail sales, or $1 billion.

Millennials and Generation Z both have an affinity for mobile payments, especially payments made through mobile wallets (e.g., Venmo) and mobile payment apps (e.g., Starbucks) that offer loyalty rewards. Take advantage of this trend: Offer at least one payment gateway that offers the convenience of mobile shopping.

Shoppers Can Use Their Favorite Payment Method

Shoppers often prefer specific payment types. One customer may want to build their cash back points with their favorite credit card. Another may only trust an Automated Clearing House (ACH) payment made from their phone. Multiple gateways let you customize more payments for more customers.

Although most online stores accept major credit cards and ACH payments, what you add after this will depend on other factors. What’s right for one store may not be appropriate for another. Here are some questions to ask:

Answering questions like these help match your products and customer needs to your payment gateway. A good match will customize your shopping experience, lower purchase barriers, and increase sales.

Your Customers Feel Safer Giving You Their Data

Safety in a payment gateway is priority one. After all, that’s a gateway’s main job—encrypting customer data and transmitting it securely. So make sure a payment gateway is PCI compliant before signing on with them. Your customers’ data is your responsibility.

But aside from actual data security, having multiple payment gateways creates a sense of perceived security for your customers. The Baymard Institute survey showed 19% of customers have abandoned their carts because they didn’t trust a site with their credit card information. But having multiple payment gateways helps.

Another survey by YouGov found that 40% of online consumers felt more comfortable buying from a store with multiple payment methods than from stores that offered just one option. That’s a significant uptick in trust.

Having multiple payment gateways signals to customers that you’re trustworthy. The trust attributed to specific companies like PayPal is transferred to you through simple association. The more payment gateways you use, the higher the level of perceived professionalism, legitimacy, and trust.

Multiple Payment Methods Enable You to Make More Money Internationally

If you’re planning on selling internationally, you’ll want multiple payment gateways to support local payment methods. Payment gateways vary by nation, region, and accepted currencies.

For example, Alipay is a favorite payment solution in China. Having a payment gateway that doesn’t support it would cut you off from an enormous market.

If you want to expand into foreign markets, multiple payment gateways help you handle different currencies. Convenience and trust increase when customers can purchase products and services in their local currency. So, you’ll need a gateway that can convert your website’s currency into local ones. Auto-conversion makes the checkout process more convenient. That means lower abandoned cart rates.

Multiple Payment Methods Provide Backup for When (Not If) Your Gateway Crashes

Imagine it’s Cyber Monday and you’re in the middle of a record-breaking sales run. Suddenly, your payment gateway crashes. The gateway company posts an apology, but that won’t help the hundreds of dollars in missed sales you’re experiencing with every passing minute. Your customers take to Twitter and Facebook to complain, your inbox is flooded with customer questions. This scenario is not far-fetched. In fact, payment gateway crashes happen frequently.

Multiple gateways give you a fail safe. If one crashes, you’re able to funnel customers into another. It’s not ideal, but it would certainly beat having no gateway at all. Even if you’re using one payment gateway like PayPal—which gives you access to many others—you’re in the same situation if PayPal goes down.

An extra gateway also records a backup of your customers’ data. When your customers buy from you, your payment gateway records their information so they don’t need to input it for future purchases. Having two or more gateways divides that data among them. You won’t lose it all if data is deleted or destroyed.

Downsides to Multiple Payment Methods

There are some extra costs you’ll have with multiple payment gateways. So, check these to see if the strategy fits your business plan.

Higher Costs in Time and Money

When you have multiple gateways, you have multiple contracts, integrations, and setup. That means more paperwork and oversight for you. You’ll have to keep track of—and pay—multiple processing fees, monthly memberships, and transaction costs.

You’ll also need a merchant account for all of your payment gateways so you can receive customer payments. Some gateways like Authorize.NET offer merchant accounts with their services but charge you a higher monthly fee for the service.

All of this extra headache is why many new business owners choose a combined payment processor like Stripe or PayPal. Both let you accept many forms of payment and include an aggregated merchant account, which combines your funds with other merchants. These accounts are easy to start up and have fewer monthly fees. However, their cost per transaction rate is higher.

Getting Volume Pricing Is Harder

Payment gateways have volume pricing plans, lowering your rate if you sell more often. Breaking into a high sales bracket to lower your costs is easier when you have a single payment gateway. But when you split your sales among multiple payment gateways, it takes more to reach the same sales volume goal.

Volume pricing isn’t something most new business owners consider, but it is something to think about for the future of your store.

Features You Need in Multiple Payment Methods

Multiple payment gateways bring many benefits for your customers and store. But you still need to find payment gateways that fulfill your business needs. Here are a few payment gateway features that will benefit your business.

Mobile-Friendly

Since the future of ecommerce is mobile, find a payment gateway with mobile payment options. Square offers mobile checkout via an app. Plus, mobile-friendly gateways like Square also help you diversify your sales opportunities. With Square’s mobile point-of-sale feature, you can take payment at physical locations like fairs or pop-up shops.

Website Integration

With payment gateways like PayPal, you can choose between letting your customers check out on your website or on PayPal’s site. The difference seems small, but it has big implications for your customer’s checkout process.

For one, when customers checkout on PayPal’s platform, you lose control over the buying experience at the moment of purchase. The branding of your site is replaced with a PayPal popup window. You can’t upsell or recommend other items after a customer leaves your site to pay. This can cost you potential sales. But PayPal is convenient for new customers who already have their payment information saved in the payment gateway’s system.

Recurring Payments

For store owners who sell memberships, subscriptions, and access to exclusive content, recurring payments helps simplify their lives and increase their sales. Some payment gateways, like Payflow and Stripe, can be set up to automatically charge customers’ credit cards at predetermined intervals (e.g., daily, monthly, yearly). Recurring charges help retain customers who might otherwise forget to renew their memberships and subscriptions. That means more sales and less hassle for you.

Reporting

Look for a payment gateway that generates sales reports for you or integrates with your bookkeeping software. To increase sales, you need to identify popular products, big-spending customers, and seasonal sales trends. This data allows you to promote the right products to the right people at the right time. You can also use reporting features like those offered by Braintree to view and resolve your customers’ refunds, chargebacks, and disputed transactions.

Payment Gateways Don’t Just Process Payments

As a critical part of your customers’ purchase journey, payment gateways do more than just receive, store, and transmit your customers’ data. They say something about your website. When choosing one, name brands matter. If customers don’t recognize your gateway, they’re less likely to trust it … and you.

Therefore, payment gateways are really a part of your branding. They communicate something about your company, how you treat your customers, what you value. They’re as important to your store’s personality as your brand name, color scheme, logo design, product page, or other design element. So, choose wisely. Consider more than just convenience or getting started quickly. If your business model is a good one, you’ll have the future to consider, too.

WooCommerce is Compatible With Over 100 Payment Gateways

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Credit cards have been around since the 1920s when oil companies and hotel chains began issuing them to their customers to buy at other brick-and-mortar outlets. Today, a big chunk of credit card transactions have moved online. Now, a single credit card transaction requires an intricate web of payment processors and encryption software to authorize transactions made around the globe—all in less time than it took you to read this sentence.

Merchant service providers (MSPs) facilitate the steps in this transaction process. So, they’re an integral part of any business. But there are many different MSPs today, which makes it hard to sort through them all and their terms of service agreements. High processing fees eat away at your profits. Bad security puts your customers’ data at risk.

Here are some guidelines for identifying and choosing the best merchant service provider for you.

What’s a Merchant Service Provider?

A merchant service provider (MSP) is any business used by merchants to process payments in forms other than cash or check (e.g., credit cards, debit cards, ACH payments). MSPs are classified into three types:

• Merchant Account Providers (MAPs)
• Payment Services Providers (PSPs)
• Payment Gateway Providers (PGPs)

Merchant Account Providers

The main service that a merchant account provider (MAP) offers store owners is a merchant account. These accounts hold funds in limbo while authorizations are made, credit limits are checked, and payments are processed. After the transaction is complete, funds from your merchant account can then be moved to your business account. This usually takes a few days.

Many different merchant service providers are also MAPs, including banks, payment processors, or payment gateways. If you’re a brick-and-mortar store looking to start selling online, you may be able to use your current merchant account for your online transactions as well.

Some of the larger MAPs, like First Data or TSYS Merchant Solutions, also include credit card processing with their merchant account agreements.

Merchant account services offer different account types, fee structures, processing volumes, and transfer times. Examine these when choosing one for your business.

Aggregate vs. Dedicated

Aggregated merchant accounts hold funds from many different businesses, while dedicated accounts contain funds only from your business. Payment systems like PayPal use huge, aggregated funds to help offset risk from fraudulent or inept business owners. The more funds pooled, the more likely there’s enough available to cover any fraud, returns, or mistakes.

Since dedicated accounts lack this aggregated fund safety net, the underwriting process is more stringent. Dedicated accounts are harder to get if your credit score is on the lower end. Aggregated accounts mix high risk and low-risk merchants together. So, for merchants with lower credit scores, aggregated accounts are much easier to start.

Generally, the higher your sales volume, the less cost it takes for you to accept a credit card (i.e., your processing fee). The more you sell, the lower your transaction rate. Store owners with dedicated accounts can negotiate their merchant rates based on their sales volume, credit history, and market risk. Those with aggregated accounts are tied into contracts and can’t haggle.

And if an aggregated account contains too many fraudulent merchants, the account’s entire payment process can be canceled or restricted by a credit card company—that means yours too.

Fee Structures

Your MAP will charge you a processing fee that’s based on a flat rate, interchange, or tiered pricing model.

• Flat rate. MAPs charge a set price per transaction, fixed percentage, or a combination of these. Flat rates are good for small business because they make it easier to predict costs.
• Interchange pricing. MAP takes the current interchange rate and marks up the price to cover their service. (e.g., 2.9% + $0.30). Since the interchange rate fluctuates, so will your fees.
• Tiered pricing. Rates depend on many factors, like the type of card used (credit vs. debit vs. reward). Because of its complexity, I don’t recommend tiered pricing for small businesses.

MAPs offering “introductory rates” can raise their fee structure unexpectedly. Be wary of these low-entry offers. Ask what the new rate will be after it resets.

Processing Volume

Your MAP agreement may establish a monthly cap to the number of transactions you can make per month. Volume can be based on sales (e.g., $10,000/mo) or processing (e.g., 10,000 transactions/mo). If you go over your cap, your MAP may deny new customer orders, and you’ll lose sales.

You can ask your MAP for an increase in your processing volume, but approval will take time. Before settling on a MAP, determine what your monthly transaction cap will be and how it will affect your future growth. Decide on a volume cap that will guard against overages, yet expand with your business.

Some MAPs also have monthly minimum transaction fees. A typical fee is around $15. Even if you make no sales for the month, you will be charged the minimum fee.

Funds Transfer Times

For small businesses that depend on steady cash flow for buying stock, transfer times from merchant to business account can determine whether you have products available. Transfers usually take about 24 to 72 hours to process.

But several factors can affect transfer times. For example, when a customer requests a refund, your merchant account will receive a chargeback request, which will lengthen the processing time. Check to see if your MAPs’ transfer times match your cash flow needs.

Payment Services Providers

Payment services providers (PSPs) connect merchants to the electronic financial system so they can accept credit and debit card payments. Unlike MAPs, they tend to be larger companies that run massive aggregated accounts. PSPs like PayPal and Square offer accounts that are easy to acquire but are also easily frozen or terminated. PSPs have low barriers to entry, which puts them more at risk for fraud and abuse. Therefore, their termination terms of service agreements are much more stringent. Here are some pros and cons of using a PSP.

Easy Setup

One of the advantages of a PSP is that it handles many of the nuts and bolts of connecting to credit cards, bank accounts, and external networks. Merchants have less responsibility for connecting with these financial institutions, which is especially helpful to small businesses who want to sell overseas. But PSPs often take longer to respond to emails or technical issues compared to a dedicated, full-service MAP.

No Monthly Fees

PSPs don’t charge the monthly maintenance fees that some MAPs do, and there’s typically no monthly minimum processing fee.

Added Benefits

PSPs also offer other merchant benefits that MAPs don’t—like fraud protection or next-generation payment methods, such as digital wallets like Venmo.

Higher Transaction Fees

While you will save money by not paying monthly fees, you’ll definitely pay more in transaction fees with a PSP. For example, PayPal’s transaction fees are 2.9% + $0.30 per sale, while a typical merchant account fee structure is much lower (1.8% + $0.12 per transaction).

Less Secure

Large PSPs are popular targets of data cybercriminals who can steal millions of customer accounts. These companies have big targets on their backs, and using them puts you in the crosshairs as well. Although PSPs must be PCI compliant, they keep you and your customers’ data less secure than merchant account providers.

Frozen Accounts

When a PSP detects too many chargebacks or customer complaints on your account, they can limit the number of transactions you can make. If you unknowingly sold a dozen pairs of counterfeit sneakers, the overwhelming number of customer chargebacks could be a red flag for your PSP, and they can completely freeze your account.

Payment Gateway Providers

A payment gateway provider (PGP) links your website to your processing network and merchant account. An online payment gateway is like a virtual credit card machine. Instead of swiping or inserting their credit cards, customers enter their payment credentials.

A payment gateway’s main function is to securely transmit payment data throughout the transaction process. So, having a payment gateway that’s known for its security helps reassure your customers their data is safe. Here are some things to consider when picking a payment gateway.

Merchant Account

A payment gateway isn’t provided by every PSP. Some require you to open one, others don’t. If a PSP does offer a payment gateway, it could save you a step in setting up your payment process. Authorize.net and PayTrace are both examples of PSPs that have their own payment gateways. Your MAP may or may not offer one.

Encryption Methods

All payment gateways have encryption to keep customer information safe. But some encryption methods that are safer than others. For example, tokenization is an encryption method that removes the need for credit card data in the transaction process, making it safer than other methods.

One advanced encryption method to look for is Transport Layer Security (TLS). The PCI Standards for merchants have recently changed. Payment gateways must comply with these regulations. You can check a payment gateway’s website to see if it meets the current PCI Data Security Standards for encryption.

Integration

Find a payment gateway that integrates with the most critical parts of your business, like your eCommerce platform (e.g., WooCommerce) or your invoicing software (e.g., QuickBooks online). Seamless integration not only makes your website run more smoothly, but it also makes your payment gateway safer.

For instance, integration with your invoicing software will save you tons of time transferring payments while keeping your books more accurate. Integration saves you money.

Fees

Payment gateway fees typically include a flat monthly fee, credit card charges, and chargeback fees. Here are some examples of the various fees from some popular payment gateways at time of writing.

• Braintree
  • 2.9%+ $0.30 transaction fee
  • $15 chargeback fee
• Stripe
  • 2.9% + $0.30 transaction fee
  • $15 chargeback fee
• Authorize.Net
  • 2.9% + $0.30 transaction fee
  • $25 chargeback fee
  • $49 setup fee
  • $25 monthly fee
• Amazon Payments
  • 2.9% + $0.30 per transaction
  • $20 chargeback fee

Chargeback fees can cut into your profits quickly, especially if you sell hundreds or thousands of items per month. The more individual sales, the higher the chances of returns and chargeback fees.

What You Need Now Isn’t What You’ll Need Later

If you’re just starting out in eCommerce, you need something simple to use, with predictable costs and plenty of payment options. Predictability and flexibility help you reach the most consumers possible. But as your sales grow, you gain access to other perks, like volume pricing. You’ll have the ability to negotiate transaction rates. But if your merchant service providers don’t offer volume pricing, you can’t take advantage later. You’ll need to change hosting plans as higher sales volume draws put more strain on your website.

In short, the payment processing needs of a new business are vastly different from the one it will become. So, in your excitement to get started, keep an eye on the future when choosing your merchant service provider.

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