WooCommerce, A popular ecommerce platform from Automattic now has its very own payment processor, WooCommerce Payments.
If you run a WooCommerce powered store then you would know that the platforms support multiple popular payments providers such as Stripe and PayPal out of of the box via extensions.
This Newly launched Payment Provider for the US Market gives users of the platform a more centralized and frictionless way to accept credit & debit card payments. It is not only removes the need for multiple logins (PayPal/Stripe) and customer service department(disputes) but the need to learn multiple platforms.
Everything you need to accept and manage payments is available from within the WooCommerce Dashboard, unifying all aspects of your payments.
How does it Work?
WooCommerce Payments works similarly to Stripe as customers will pay for products and services with the credit/debit cards without leaving your website.
Receiving Funds? The funds are sent directly to your bank account two days after a purchase as opposed to being kept at a third party virtual wallet and/or custodian.
Payments are made within two days after daily bundleing. Bundleing? Yes, Payments organized on a schedule where the first deposit for a new account has a seven-business-day waiting period.
The daily payments are then bundled into a single deposit. It is this single deposit that then get ayutomattically transfered to the vendors bank account two business days later.
What are the Fees?
The installation doens’t have a fee nor are there any monthly fees, you simply pay 2.9% + $0.30 for each transactions made via a US issued credit or debit card, which is pretty reasonable.
Cards which are issued outside the US will however attract a additional 1% fee which means a overall 4.9% + $0.30 per transaction for foreign based card transactions.
How about a Dispute fee? Payment disputes will attract a fee of $15 for each dispute but will be refunded to the vendor if the vendor wins the dispute.
Limitations?
- Well this new product is currently limited to US based merchants which indicates there will be gradual release to various markets in the future.
- Merchants who have CBD-related transactions cannot use the product and are suggested to use the Square payment processor for such transactions.
- Does not support subscription based transactions but indicates that it will be supported in a future iteration/update/version.
This is’nt a massive change for the WordPress WooCommerce powered eCommerce Store landscape. This new product not only removes the friction of accepting payments within WooCommerce but also adds a new Revenue stream for Automattic which operates WordPress.com and WooCommerce respectives.
I look forward to the gradual general release to other markets such as the UK, Canada and other corners of the globe.
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