Why Building a Custom WooCommerce Payment Gateway Plugin

WooCommerce offers its own payment gateway and it comes with a lot of features. But for certain businesses who operate in different regions and have reached a certain scale, it might not be the best choice.

It impacts their profitability as well as the customer experience that they provide. Also, when it comes to processing payments, the default plugin limits the ability to deliver unique experiences.

In this article, we are going to discuss those limitations and how a custom plugin can help solve it. We will also discuss the feature and a guide to developing your own custom payment gateway plugin.

Lets, start with the current limitations in default WooCommerce payment gateway plugins.

Limitations of Default WooCommerce Payment Gateways

➝ Transaction Fees and Restrictions with Third-Party Gateways

Most eCommerce businesses rely on third-party payment gateways, but they charge high transaction fees(usually ranges between 1.5% to 3%). So, if you have a higher sales volume, it will take a hit on profits. Also, some of these payment gateways come with certain restrictions. It could be because of government regulations or PGs own policy. So, it sometimes restricts your customers from making a transaction.

➝ Limited Customization Options and Branding Flexibility

The majority of the payment gateways offer limited design and customization options. It restricts you from controlling the complete checkout experience and building your brand identity. So, a custom payment gateway gives you full control over branding and checkout experience.

➝ Possible incompatibility with local or niche payment providers

There are chances that the payment gateway won’t support the local payment methods. Because the majority of payment gateways process transactions from Visa, MasterCard, Discover, and other common payment methods. But in a few cases, where you are operating in regions with their own payment methods, you will face difficulties in acquiring customers, if the PG doesn’t support regional payment options.

➝ Possible security concerns and compliance issues

Though, most payment gateways comply with the industry standards when it comes to payments, but still you don’t know what is happening on the backend side. Some PGs may not be complying with these guidelines, even if they say they are. So, this dependance can get you into some serious trouble someday.

These are the limitations that come with existing payment gateways. But a custom payment gateway can solve it. There are many benefits that come with building a custom WooCommerce payment gateway.

How Custom WooCommerce Payment Gateway Plugin help improve eCommerce efficiency?

➝ Greater control over transactions

A custom payment gateway will provide you full control over how the transactions are processed. You can set your own fee structure, define refund policies and manage settlements without relying on third-party providers.

➝ Improved checkout experience

Checkout experience plays an important role and it can impact your cart abandonment rate on your WooCommerce store. So, with a custom payment gateway plugin, you can integrate payments directly on your store, so customers don’t have to leave your site to make payments.

It reduces the unnecessary redirects and processes the payments before the customer changes its mind(you know how impulsive purchases work, right!)

➝ Multi-currency support and alternative payment methods

With your own WooCommerce payment gateway plugins, you can add as many payment methods as you want. Also you can accept multiple currencies if you operate in multiple regions. So, there are no restrictions and you can reach new markets easily. Be it UPI, digital wallets, or digital currencies, you can collect payment using methods that your users prefer. This flexibility directly improves your conversion rates.

➝ Cost saving and improved profitability

As we discussed above, payment gateways charge high transaction fees to you and in some cases customers as well when they pay with credit cards. So, a custom payment gateway for high volume stores can help you get rid of these fees. You only have to pay what Visa, MasterCard and others charge and keep the rest to yourself. It saves cost, so that you can invest in other resources to increase profitability.

➝ Enhanced security and better compliance

With a custom WooCommerce payment gateway plugin, you can add advanced security measures like tokenization, fraud detection, and multi-layer authentication. Since you have full control over how the PG works, you can keep an eye on compliance and regional laws as well. This reduces the risk of fraud, fake orders, increases data privacy and builds customer trust.

At Jnext, we are experts in building custom WooCommerce payment gateway plugins. From designing to deployment and maintenance, we handle the end to end process of developing a payment gateway for WooCommerce B2B stores. So, you can focus on your business growth, while we handle the technicalities of building a plugin. Connect with our team and share your requirements today!

The benefits definitely overpower the limitations that you have with existing payment gateways, but does it mean that every WooCommerce store should get a custom payment gateway plugin?

Here are the few questions that will help you decide whether you need a custom payment gateway plugin or not.

10 questions to ask yourself before Building a Custom Payment Gateway Plugin

• Are third-party payment gateways too expensive for my business in terms of transaction fees?
• Do I need support for local or alternative payment methods that existing gateways don’t offer?
• Am I facing restrictions from third-party providers that limit my business operations?
• Do I require a more seamless, branded checkout experience without external redirections?
• Is security and compliance (PCI DSS, GDPR, etc.) a top priority for my business?
• Do I need advanced fraud prevention and risk management features tailored to my business?
• Am I experiencing delays in payment settlements or withdrawal limits that affect my cash flow?
• Does my business operate in a niche industry with unique transaction requirements?
• Do I need full control over pricing, refunds, and payment policies without third-party restrictions?
• Am I looking to reduce dependency on third-party providers to avoid disruptions and policy changes?

If you have answered these questions, and if you still want to build a custom payment gateway plugin, here are the features that you should consider adding.

Key Features to Include in a Custom WooCommerce Payment Gateway Plugin

➝ Secure API Integration

Connects seamlessly with banks, financial institutions, and third-party payment processors.

➝ Multiple Payment Methods

Supports credit/debit cards, UPI, digital wallets, BNPL (Buy Now, Pay Later), and cryptocurrency.

➝ Seamless Checkout Experience

Let customers pay directly on site without external redirections.

➝ Custom Refund and Chargeback Management

This feature lets you define your own refund policies and manage chargebacks more efficiently.

➝ Automated Invoicing and Reconciliation

This feature will help you reduce manual work and improve e-commerce efficiency.

➝ Subscription and Recurring Payment Support

Provide an option for automated billing for customers who buy your product regularly.

➝ Real-Time Transaction Tracking and Reporting

Build a dashboard for yourself to monitor transactions, refunds, and settlements.

➝ Custom Fraud Prevention Measures

Add AI-based fraud detection, tokenization, and multi-factor authentication to prevent fraud.

➝ Multi-Currency and Cross-Border Payments

Add options for multi-currency payment support to reach a wider audience in new markets.

➝ PCI DSS and GDPR Compliance

This is most important, always ensuring data security and compliance with industry regulations.

Steps to Develop a WooCommerce Payment Gateway Plugin

Understanding WooCommerce Payment API

WooCommerce provides a payment API that lets developers integrate custom payment gateways. So before you start developing it, invest some time in understanding it since it can make your work a lot easier.

Setting up a custom plugin

You can create a structured plugin using PHP, WordPress hooks, and REST APIs. While setting it up, make sure that it can seamlessly process transactions, handle payment authorizations and integrate seamlessly with WooCommerce checkout flows.

Testing and debugging

Once the plugin is ready, it is important to test it on important parameters. It includes testing it across multiple devices, browsers, security testing and performance optimization. It will help you make sure that the plugin is ready to be deployed.

Deployment and ongoing maintenance

Once the plugin is deployed, your work is done. You have to regularly monitor the plugin to check for any ongoing issues that can impact the payment processing. Also, it is important to keep the plugin updated to align with the latest WooCommerce updates and changes.

Maintaining and updating a plugin requires a lot of time, resources and effort. But, you can outsource it. With our maintenance and support packages, you don’t have to worry about keeping your plugin updated with the latest WooCommerce and WordPress changes.

Our experts regularly monitor your plugin for bugs and improvements. So your customers get a seamless checkout experience and you never lose a customer because payment didn’t go through.

Conclusion

Building a custom WooCommerce payment gateway plugin is a great choice for businesses that operate at scale or are growing at a rapid rate. Whether you are looking to integrate alternate payment methods, reduce transaction fees or increase security, a custom plugin can improve the overall efficiency of your business.

But it requires a lot of expertise and experience, since it involves regulations, technicality and regular maintenance. So, rather than using your own resources or hiring a new team to build a plugin, you should connect with experts who have experience building them for businesses around the globe.

Our expertise will help you avoid mistakes and integrate plugins seamlessly into your WooCommerce store.

Connect with our team today!