Wix UX expert Kester Thompson shows you how to choose a payment method, connect to a payment provider and how to view your payments on your site.
Hi there. My name is Kester Thompson, and I'm from the Wix Payments team.
Now that you've set up your product pages, you'll need to actually connect a payment method to your site so that customers can pay you when they get to checkout. So in this lesson we're going to be talking about choosing a payment method, connecting to a payment provider and looking at how to view payments on your site.
Let's start by actually talking about the difference between payment method and payment provider. This is actually something that causes a lot of confusion. A payment method is how a customer is actually going to pay you when they get to checkout. So for example, credit card, debit card, cash, check, via a wallet or something like PayPal. Now a payment provider is also sometimes known as a payment gateway or even a payment processor. A payment provider is the company that is going to manage that transaction for you. So they will manage the payment, take the money and then transfer it to your bank account. And you'll need to connect to a payment provider for most of the payment methods that you want to use.
So for example, if you want to accept credit or debit card payments on your site, you're going to need a provider like Wix Payments, or maybe Stripe or Square. There's also digital wallets like Apple Pay, which is coming very soon, and there's also regular wallets such as PagSeguro. In Europe there's providers that work with bank transfer like iDEAL or SOFORT, and then there's companies like PayPal, which is both a payment method and a payment provider at the same time, which is really confusing. So how did you go about choosing the right payment provider for you?
First thing to remember, or at least to be aware of, is where your business is located. Not where your sales come from, but where your business is physically located. You need to be sure that the payment provider can work with your bank and also with your currency so that money can actually be transferred to your bank account.
The next thing for you to consider is what payment methods your payment provider lets you work with. So for example, Wix Payments will let you accept credit and debit cards, and then depending on what country you're in, it will also let you work with some third party payment providers.
Now you should check the transaction fees and rates that the payment provider is going to charge you. So most providers charge somewhere between 2.7-4.4%. And then there's also an additional fee that most of them will charge you, which is usually around 30¢. Wix Payments transaction fees start at 2.9% and 30¢, and there are no monthly fees.
You should also check if your provider has a minimum transaction fee. Wix Payments, for example, doesn't accept transactions under $1. You should also check your payout cycle, and this is how often the payment provider is going to transfer money to your bank account. And this can be daily, weekly or monthly.
It's important to remember, actually, here, the difference between payments and payouts. It's something that a lot of people get really confused about. So let's just clarify this, okay? Payments are also known as pay-ins, and this is when customers actually make a transaction on your site. It's a good thing. A payout is when the payment provider actually transfers the money to your bank account. So you will actually get paid, which is also a good thing. With Wix Payments you can actually choose whether to get paid daily, weekly or monthly.
And last but by no means least, check the terms and conditions of your payment provider and just be sure that your business and what you're offering and selling on your site is supported by the payment provider. Wix Payments actually supports a lot of goods and services that other payment providers don't work with. For example, hair extensions or selling events tickets, and many other things like that.
Okay, so let's actually look at connecting a payment method to your site. The first thing that you have to remember is that to accept online payments at Wix you need to have your site upgraded with a Business & eCommerce Premium Plan. So to connect a payment method to your site go to your Wix dashboard, click Settings, and then Accept Payments, and then from the dropdown on the top right, just double check where your business is located and that that's correct. Choose a provider and then just hit Connect Me. Now if you're an agency or a freelancer creating a site for a client, make sure that you choose the location where your client's business is located.
So when you've done that, check that your payment method is actually connected. You should see the active on your checkout toggle is green. If it's red or not active, just click on the toggle to activate it.
Now note that even though you connect to a payment provider, it doesn't necessarily mean that you'll be able to receive payouts to your bank account. So, with some payment providers, while you can actually start accepting payments on your site right away, like Wix Payments, oftentimes there are additional steps needed to verify and activate your account. Once your account is verified you'll be able to start receiving payouts. And we recommend that you wait on shipping or fulfilling items until your account is actually activated.
Additionally, once you pass a certain sales threshold, or GMV, it's very common for your payment provider to ask for additional documents such as ID, business details and bank statements. These documents vary by provider. So basically, even if you've connected a payment method to your site and you've started accepting payments, the most important thing to remember is to complete your account set up. Otherwise money will not be transferred to your account.
Now let's look at your payments overview, where you can actually view your transactions and payment details. Go to your Wix dashboard and hit Financial Tools. Here you can view all your revenue and number of successful payments. You can view transactions by date, by customer, by product sold, payment method, status and amount. And you can filter here by date or by payment method or payment status, including chargebacks or refunds. You can even download the transaction data for your financial and accounting records as a CSV file. All you have to do is just click on the line item for more payment details.
If you're connected to Wix Payments as your provider, you'll have a complete financial overview of your business in one dashboard, and you'll be able to view payment details as well as your payouts and settlement reports all in one place. So basically what's great about Wix is that you can manage your entire business all in one place.
Now check out our next video to see how your checkout works from your customer's perspective.