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Payment Methods in Magento 2

The payment method is a way for customers to pay for the purchase of a product or service in your Magento 2 store. Magento 2 offers various default payment methods to accept payment from the customers for their purchase. Therefore, the admin needs to configure payment methods in order to choose their preferable one and pay.

Magento 2 supports the following payment methods:

  1. Check/Money Order
  2. Bank Transfer Payment
  3. Cash on Delivery Payment
  4. Zero Subtotal Checkout
  5. Purchase Order

Out of the box, Magento 2 also supports third-party services PayPal and for payment. To activate these methods, we just need to enter our personal data received from the payment provider.

1. Check/Money Order

In this method, the store owner accepts the payment for an order from the customer through the check or money order. We can set up the Check/Money Order as a default payment method, which we can apply for our online store in Magneto 2. We have the right to set that the Check/Money Order accepts either from some countries that we have chosen or from all countries. We can also set the range of order value.

2. Bank Transfer Payment

With the bank transfer payment method, the store owner accepts the payment from a customer's bank account to the merchant bank account. The customer buys the products online and pays to the store owner through the bank transaction. They transfer the money from their account, which is deposited into the merchant (store owner) account.

3. Cash on Delivery Payment

Cash on delivery generally called COD. It is an oldest way of payment. By setting this method, the store owner accepts the money from the customer in cash for their purchase. The customer buys the product and pays to the delivery guy, and he brings the money back to the store owner.

Similar to the Check/Money Order option, we (store owner) can set our store to accept the COD payment from some countries which we have chosen as well as the maximum order value that will be accepted.

4. Zero Subtotal Checkout

Zero Subtotal Checkout is a payment method that is available only for orders created from the admin. It can be used for orders with a subtotal of zero that is taxed after a discount is applied. The Zero Subtotal checkout method is used when the subtotal of the order is zero means that the customer doesn't need to pay anything for purchase.

For Example - The Zero Subtotal might be used in the following situations:

  1. The discount covers the full price of the purchase, with no extra charges for shipping.
  2. The price of the simple product is zero, and the Free Shipping is available.
  3. The customer adds a virtual or downloadable product to the shopping cart, and the price equal to zero.
  4. The coupon code covers the full price of the products and shipping.

5. Purchase Order (PO)

A purchase order (PO) allows the commercial customers to pay for authorized purchases by referencing the PO number. The purchase order (PO) is authorized and issued in advance by the company, which is making the purchase.

The customer needs to select the Purchase Order as the method of payment during checkout. On receiving the invoice receipt, the company processes the payment in their payable system, and pay for the purchase.

Note: Before accepting the payment through Purchase Order (PO), the store owner always needs to establish the credit worthiness of the commercial customer.

6. PayPal

Paypal is divided into three categories in Magento. Each of them has sub-methods that should be configured individually. In general, you must be a PayPal user to equip your store with these payment methods.

As a store owner, you can apply PayPal Payment (Standard, Pro, or Advanced) and Express Checkout to accept credit card payment.

PayPal Payment Standard is an easiest way to accept the online payments, we just add a checkout button to our website. It's completely free of cost and allows us to accept credit card and PayPal. The only drawback of PayPal Payment Standard is - it does not allow your customers to complete the checkout process on your site. So, to complete their payment, customers will be redirected to PayPal.

PayPal Express Checkout is a bit complicated, as it needs either a premier or business account. The customer just taps the "Check with PayPal" button and complete the payment with 3 steps.


It is one of the most popular onsite payment gateways, which is included in Magento 2 by default. It allows the customer to complete the checkout process without leaving a website. All the information of a customer is transmitted through a security gateway.

This feature saves the time of the customer and makes the payment process easier.

8. Braintree

Braintree is a PayPal company which provides a wide range of payment methods in one service. By activating this, the store owners are able to receive payments via different credit and debit cards and PayPal.

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