Setting Up Payment Gateways in WooCommerce
Understanding Your Options
WooCommerce does not process payments itself. It connects to external payment processors through gateway plugins. When a customer enters their card information at checkout, the gateway plugin securely transmits that data to the processor (Stripe, PayPal, Authorize.net, etc.), which charges the card and sends a success or failure response back to WooCommerce. Your store never sees or stores raw card numbers, which keeps you out of the most burdensome PCI compliance requirements.
The three most widely used gateways for WooCommerce are WooCommerce Payments (managed by Automattic, powered by Stripe), the standalone Stripe for WooCommerce plugin, and PayPal. Between these three, you can accept credit cards, debit cards, Apple Pay, Google Pay, and PayPal balances, which covers how the vast majority of online shoppers prefer to pay. For a broader comparison of payment processors, see our payment processing guide.
Step-by-Step Setup
WooCommerce Payments is the simplest option because it is built into WooCommerce and managed in your WordPress dashboard. Go to WooCommerce, then Settings, then Payments, and click Set Up on WooCommerce Payments. You will be redirected to create a Stripe Express account (or connect an existing Stripe account). Enter your business details, bank account for payouts, and identity verification. Once approved (usually instant for US businesses), WooCommerce Payments is active. Fees are 2.9% + $0.30 per domestic card transaction, 1.5% additional for international cards, and $15 per chargeback (refunded if you win the dispute). Payouts arrive in your bank account within 2 business days.
If you want direct access to your full Stripe dashboard, webhook configuration, and Stripe's complete feature set (subscription billing through Stripe Billing, invoicing, Stripe Radar fraud rules), install the free "Stripe for WooCommerce" plugin by WooCommerce. Go to Plugins, then Add New, search for "WooCommerce Stripe Payment Gateway," install and activate. Go to WooCommerce, then Settings, then Payments, then Stripe. Click "Connect with Stripe" and authorize the connection. The plugin automatically configures webhooks and API keys. Fees are identical to WooCommerce Payments (both use Stripe's standard pricing). The standalone plugin gives you more configuration options, including the ability to enable individual payment methods (credit card, Apple Pay, Google Pay, Alipay, WeChat Pay, SEPA Direct Debit, iDEAL, Bancontact, and more).
PayPal increases checkout conversion because many shoppers have PayPal accounts with saved payment methods and addresses, making checkout faster. Install the "WooCommerce PayPal Payments" plugin (the official PayPal integration). Go to WooCommerce, then Settings, then Payments, then PayPal. Click "Connect to PayPal" and log into your PayPal business account to authorize the connection. PayPal Payments supports PayPal balance payments, credit and debit cards processed through PayPal, Pay Later (buy now, pay later financing), and Venmo (in the US). Fees are 3.49% + $0.49 per PayPal transaction and 2.99% + $0.49 per card transaction processed through PayPal. These fees are slightly higher than Stripe's, which is why Stripe should be your primary gateway and PayPal secondary.
In your payment gateway settings, configure these important options. Payment capture: set to "Capture automatically" unless you are selling pre-order or made-to-order products that ship later (in which case, use "Authorize only" and capture manually when you ship). Accepted card types: enable Visa, Mastercard, American Express, and Discover at minimum. Apple Pay and Google Pay: enable these in your Stripe settings (they appear automatically at checkout for customers with compatible devices and significantly speed up mobile checkout). Statement descriptor: set this to your store name (max 22 characters) so customers recognize the charge on their bank statement and do not file chargebacks out of confusion.
Enable test mode in your payment gateway settings. Stripe test mode uses test card numbers: 4242 4242 4242 4242 (successful payment), 4000 0000 0000 0002 (card declined), 4000 0025 0000 3155 (requires 3D Secure authentication). Place several test orders using different scenarios: successful payment, declined card, and 3D Secure card. Verify that the order appears correctly in WooCommerce, then Orders, that the order confirmation email arrives with correct details, that refund processing works (refund a test order and confirm the status updates), and that the customer's My Account page shows the order correctly.
Switch your payment gateway from test mode to live mode. Place one real order with your own card for a low-value product (or temporarily create a $1 test product). Verify the charge appears in your Stripe dashboard, the order appears in WooCommerce, and the confirmation email arrives. Then refund the order through WooCommerce (the refund should process automatically through Stripe). Delete the test product and your store is ready to accept real customer payments.
Other Payment Gateways Worth Considering
Authorize.net
Authorize.net is a traditional payment gateway popular with established businesses and stores that process high volumes. It requires a separate merchant account and charges $25/month plus 2.9% + $0.30 per transaction on the standard plan. The advantage is that Authorize.net supports advanced fraud detection, recurring billing, customer payment profiles (stored cards for returning customers), and integrations with accounting and ERP systems that have been built over its 25+ year history. See our Authorize.net review for details.
Square
Square is ideal for stores that sell both online and in person because Square's POS system and WooCommerce integration share inventory, customer data, and order management. The WooCommerce Square plugin syncs products and inventory between Square and WooCommerce in real time. Online processing fees are 2.9% + $0.30 per transaction, identical to Stripe. Choose Square if you have a physical retail location alongside your online store.
Amazon Pay
Amazon Pay lets customers check out using their Amazon account's saved payment methods and shipping addresses. For stores targeting Amazon shoppers, adding Amazon Pay removes the friction of entering payment and address information, which can improve conversion rates by 10% to 20% for that customer segment. The WooCommerce Amazon Pay plugin is maintained by WooCommerce and supports one-click checkout.
Reducing Payment Processing Costs
For stores processing over $20,000 per month, negotiate with your payment processor for lower rates. Stripe offers custom pricing for businesses processing over $100,000 per year. PayPal's rate drops to 3.09% + $0.49 for businesses processing over $10,000 per month. Authorize.net's standard pricing becomes more competitive at higher volumes because the $25/month fixed fee is amortized over more transactions.
For a deeper look at processing fees across all major providers, see our credit card processing fees guide and our guide on how to reduce processing costs.