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Payment method

The way your customers can pay for their purchases

A payment method refers to how a buyer pays an amount of money to a seller. Typical payment methods used in business context include:

  • cash
  • checks
  • credit or debit cards
  • wire transfers
  • money orders
  • online payment services such as PayPal.

While setting up your online business, you can choose to offer several optional ways to pay. This solution is recommended because it likely leads to a higher conversion rate. In other words, if your customers can choose between a more extensive range of payment methods, they could be encouraged to finalize the process down to the checkout.

To configure a new payment method within Commerce Layer, you have to:

  • select a Payment source type (i.e., the type of payment associated with the payment method).
  • choose a Market (the one where this payment method is available)
  • select a Payment Gateway that processes this type of payments within the selected market.

If you want, you can charge the customers that select this payment method an extra cost. You can specify it by filling the Price amount field. The used currency is the one associated with the market through its Price List. Now, the payment source types available are credit card and PayPal. However, this list is continually evolving. If you need a different type of payment, feel free to contact us, so that we can add it as soon as possible.


If you want to be able to accept some online payment for your orders, you have to set up at least one payment method. Being each payment method associated with a specific payment gateway, it benefits from the related advantages (concerning risk management, data security, conversion rate).

You can check the Payment Gateway glossary item for detailed examples. Here below you can find a summary.

Risk Management

Payment risk is the risk of loss due to a default оn a contract, оr mоrе generally, thе risk оf loss due tо ѕоmе “payment event.” On the one hand, the bitter truth is that every payment method involves risks. If you run an online business and process payments on your website, the major ones are fraud and operational risk. On the other, the good news is that, when you choose the proper payment gateway, you don’t have to manage all the risk by yourself. Almost every payment gateway somehow takes care of this matter.

Payment Methods vs. Markets

The basic setup to start selling on Commerce Layer is: to create one market define some payment methods, selecting the related payment gateway.

Given that some payment gateways perform in some zones better than in some others, using a particular payment method (associated with one of these country-specific gateways) could be a good reason to add a new market to your organization. It then affects the way you design your business model.

Payment Methods Price

As mentioned above, you can choose to set a price for one (or more) of the payment methods you’re going to configure. This can happen for a variety of reasons. From an attempt to recover part of the payment gateway cost, to some preventive action in case of particularly risky ways of payment. For instance, a typical setup is the following:

  • Credit card - free of charge
  • Cash on delivery - set a specific price amount

The latter payment method requires you to ship the goods before they have been paid. Therefore, you may want to take precautions against non-payment risk or discourage the user from selecting it.