All of your marketing and sales efforts have one goal — to lead customers to the purchase. Once they are on that final checkout step, every detail matters, especially the Magento payment methods you offer.
Even the slightest thing, like limited shipping methods or poor payment method settings, can get in the way of a successful transaction. And the last thing you want is customers leaving right before placing an order, right?
So, in this article, you’ll learn what payment methods Magento offers and how to configure them to provide the best shopping experience for your customers.
Let's start right away!
Online VS Offline Payment Methods
Before we start exploring Magento payment methods, we have to establish what online and offline payment methods are.
Online payment methods require an internet connection and enable the immediate processing of the transaction. They rely on the payment providers and gateways, making them more accessible for users across different countries and locations.
Offline payment methods, however, do not rely on an internet connection. They involve checks, cash, payment upon delivery, etc., and can be processed at a later time. Thus, they do not require external payment integration.
Magento supports both online and offline payments, so you can configure those that fit into your store's system better.
Magento 2 Payment Methods
All of the Magento 2 payment methods are located in the Stores > Configuration > Sales > Payment Methods section. Here you will find them grouped under different categories.
Before we get to the payment methods, you need to set your Country in the Merchant Location section. Then, you are good to go and explore Magento payment methods and integrations.
By default, Magento 2 comes with a set of built-in payment methods while also leaving space for other payment systems integrations to give shoppers more flexibility at checkout. But let's start with the basic options first.
Check/Money Order
Magento allows you to receive payments by check or money order. It is the equivalent of a credit card payment in offline stores. Generally, it's advised to enable this payment method only for specific countries for security reasons.
To configure the Check/Money Order payment method in Magento 2:
1. Enable the payment method.
2. Enter the Title of the payment method that will be displayed at checkout.
3. Set the New Order Status for orders submitted via this method.
4. Configure the Payment from Applicable Countries field to enable this method either for All Allowed Countries or Specific Countries.
5. In the Make Check Payable to field, enter the party to whom the check will be paid.
6. Enter your PO box or street address in the Send Check to field to receive checks by mail.
7. Set the Minimum and Maximum Order Total so that the order qualifies for this payment method.
8. Define the position of the Check/Money Order payment in the list of payment methods by setting its Sort Order.
Don't forget to save the configuration, and here is your result on the storefront:
Bank Transfer Payment
Bank Transfer is one of the most commonly used payment methods in Magento 2. Here, the payment is transferred from the payer’s bank account and deposited in the merchant’s account.
Similarly to the Check/Money Order payment, you can restrict bank transfer to specific countries, so only authorized customers can use it.
To configure the Bank Transfer Payment in Magento:
1. Enable this payment method.
2. Set the Title for it to be displayed on the checkout page.
3. Select the New Order Status to be displayed in the admin order grid before you confirm the order.
4. In the Payment from Applicable Countries field, choose if this payment method will be available for All Allowed Countries.
5. If you choose to apply this payment method for Specific Countries, select them in the Payment from Specific Countries field.
6. In the Instructions field, you set the information your customers need to initiate the bank transfer.
The required information depends on your country, but it might include:
- Bank account number
- Bank routing code
- Bank name
- Bank address
7. Set the Minimum and Maximum Order Total amounts to opt for this payment method.
8. Fill out the Sort Order field to define the place of the Bank Transfer payment method in the list of payment methods on Magento checkout.
Once the method is configured and saved, your customers will be able to select it on the checkout page:
Zero Subtotal Checkout
Zero Subtotal Checkout payment speaks for itself. It is the payment method used in Magento 2 when the order total equals zero.
This is the case when a discount or coupon covers the product and shipping price, or if the price of an item is zero. Here is what you need to do to configure this payment option:
1. Enable the Zero Subtotal Checkout payment method. and enter its Title.
2. Select the New Order Status for orders placed via this payment method.
3. Choose which countries the payment will be available for in the Payment for Applicable Countries field.
4. Define Specific Countries in the next field, if you want to provide the Zero Subtotal Checkout for specific countries only.
Note: The Zero Subtotal payment method is not available for the Magento guest checkout. Customers have to log in to place orders via this method.
And that's about it! Here is what your customers will see at checkout if the Zero Checkout payment method is on:
Cash on Delivery Payment
Another Magento payment method you can configure for your store is the Cash on Delivery Payment. In this case, customers can pay for their order in cash upon delivery, and the paid amount will then be forwarded to you by the shipping carrier.
The configuration steps for this payment method are similar to those we reviewed above:
1. Enable the payment method and set its Title to be shown at checkout.
2. Select New Order Status for orders placed with this payment method.
3. In the Payment from Applicable Countries, choose if the Cash on Delivery Payment will be available for All or Specific Countries.
4. If you want to restrict this payment method to specific countries, choose them in the Payment from Specific Countries field.
5. Fill out the Instructions for the payment method to give insight into how it works.
6. Enter the Minimum and Maximum Order Total amounts to use this payment method.
7. Enter the Sort Order value to define the position of Cash on Delivery payment in the list of all payment methods you offer.
Now you can save your settings and check them on the frontend:
Purchase Order
Purchase Order is unlike other Magento 2 payment methods we’ve just discussed. It is usually applied to wholesale orders placed by commercial customers who use authorization numbers (PO numbers) to make a purchase.
Purchase Orders are authorized and issued by a company prior to placing an order. Then, when the order is placed, the company processes and pays for the order in their payment systems, upon the invoice they receive from the store.
To configure Purchase Order payment in Magento:
1. Enable the Purchase Order payment and set the Title to display on the storefront.
2. Select the Status of New Order if you want to confirm it before processing the order delivery.
3. Decide whether to make Purchase Order payment available for All or Specific Countries.
4. Set Minimum and Maximum Order Total for the Purchase Order payment.
5. Enter the Sort Order to set the position of the Purchase Order in the payment methods list.
Once enabled, all customers have to do on the payment step is set the PO Number and hit the Place Order button:
Magento Payment Gateways
Since Magento is a complex platform that provides you with all the necessary features to manage your store, default payment methods are not the only options it offers. You can also configure other Magento payment gateways to provide more flexibility to your shoppers.
To begin with, you can configure the Adobe Payment Services solution available for both Magento Open Source and Adobe Commerce users. It makes it possible to accept payments via PayPal, Apple Pay, Google Pay, and other providers.
What makes it really stand out is the payment dashboard integrated into your Magento. Thus, you can manage payments within a single admin panel without having to monitor them in multiple payment service accounts.
Additionally, you can configure PayPal and integrate the Braintree Payment in Magento. With these many options you can certainly create the most effective setup for your store's needs.
How to Manage Payment Methods in Magento 2?
We've looked through lots of Magento payment methods you can configure out of the box. Now, you may need some time to decide which to go with.
However, you should know that just enabling them is not enough. You have to manage them effectively to make the purchase journey as smooth as possible.
Here are a couple of ideas you can begin with.
Set default shipping method on checkout
As mentioned above, every single detail matters when it comes to the checkout step. Thus, you have to ensure it's straightforward and not too complex.
Setting up the default payment method
This way, you keep it ready for your customers and reduce the number of steps they have to take.
Change payment method for orders
It happens sometimes that customers accidentally choose the wrong payment method and would like to change it. Doing it the usual way by canceling an order and creating a new one is not the perfect solution.
In such cases, you use the and edit any order details without cancelling the original order. This tool works with the offline payment methods and allows you to change the payment details promptly.
Editing the payment method for an order
Magento payment methods are relatively simple to configure, however, you may need some time and effort to find the most effective options for your store. Once you figure out this aspect, you'll provide an unmatched experience for your customers and increase sales.
FAQs
