If you’re running an online business, you know how important it is to have a reliable payment gateway or processor. Not only do they securely process transactions, but they also help you deliver your products or services on time with necessary notifications.
After extensive research and testing of nearly 100 payment gateways, we’ve narrowed it down to the top six. In this article, we’ll provide you with an in-depth analysis of each of these payment gateways, so you can make an informed decision on which one is right for your business.
The 6 Best Payment Gateway Services
Looking for a reliable payment gateway service? Consider these top options:
- PayPal – great for first-time users
- Stripe – offers accessible analytics
- Shopify Payments – ideal for eCommerce stores
- Square – perfect for selling both online and offline
- HubSpot Payments – excellent for B2B sales
- Helcim – provides interchange pricing and volume savings
What is a Payment Gateway?
A payment gateway is a service that authorizes online payments by securely transmitting payment data between the customer and the merchant. It acts as a bridge between the customer’s payment method and the merchant’s bank account. Payment gateways ensure that sensitive information, such as credit card numbers, are encrypted and protected from unauthorized access.
Payment gateways offer various features, including compliance with PCI-DSS standards, integration with sales channels, recurring billing and subscription support, advanced analytics, and seamless integration with eCommerce platforms. They are essential components of eCommerce shops, as they enable secure online payments and exempt merchants from investing in costly security and compliance software.
In summary, payment gateways are crucial for facilitating secure online transactions and ensuring the protection of sensitive payment information.
What Makes the Best eCommerce Payment Gateway Service?
When it comes to eCommerce payment gateway services, there are several factors that determine what makes the best option for your business. Here are the key criteria you should consider when evaluating payment processors:
Accepted Payment Methods
At a minimum, the best payment gateway services should accept all major credit card brands. This includes Visa, Mastercard, American Express, and Discover. However, the more payment methods a service accepts, the better. This includes popular digital wallets like PayPal, Apple Pay, and Google Pay, as well as alternative payment methods like bank transfers and cryptocurrency.
Ease of Integration
One of the most important factors to consider when choosing a payment gateway service is how easy it is to integrate with your eCommerce platform. The best services should offer a fully no-code setup, allowing you to implement the payment solution from start to finish without any coding knowledge. Alternatively, they should provide a detailed guide for those who need to tinker a bit.
Security
Security is a top priority when it comes to processing payments online. The best payment gateway services should be PCI-DSS-compliant, which means they meet the highest standards for security in the payment industry. This ensures that your customers’ sensitive payment information is protected at all times.
Checkout Experience
A smooth and seamless checkout experience is crucial for converting visitors into customers. The best payment gateway services should offer a user-friendly and intuitive checkout process that makes it easy for customers to buy products and services from your eCommerce shop.
Extra Features
Finally, the best payment gateway services should offer a range of extra features to help you manage your payments more efficiently. This includes subscription support, invoicing, payment links, and card readers. These additional tools can be incredibly useful for businesses looking to streamline their payment processes.
By evaluating payment gateway services based on these criteria, you can find the best option for your eCommerce business. Whether you’re just starting out or looking to switch to a new payment processor, it’s important to choose a service that meets your specific needs and requirements.
The Best Payment Gateways at a Glance
When it comes to accepting payments for your business, choosing the right payment gateway is crucial. Here’s a quick overview of some of the best payment gateways available:
- PayPal: Best for first-time users, with an extremely simple setup. Fees vary by transaction type and currency, with a rate of 3.5% + $0.49 per transaction for U.S. credit cards.
- Stripe: Standout feature is accessible analytics, with a wide range of tools and plugins available. Fees vary by transaction type, with a rate of 2.9% + $0.30 per online credit card transaction.
- Shopify Payments: Best for eCommerce stores, with an all-in-one eCommerce solution. Processing fees start at 2.9% + $0.30 per transaction, with an active Shopify plan required starting at $39 per month.
- Square: Ideal for selling both online and offline, with a basic website builder included. Fees vary by transaction type, with a rate of 2.9% + $0.30 for online credit card transactions.
- HubSpot Payments: Best for B2B sales, simplifying billing with payment links. Fees are 2.9% per transaction, with an active HubSpot CRM Starter subscription required starting at $20 per month.
- Helcim: Offers interchange pricing and volume savings, with lower fees for high-volume sellers. Interchange Plus averages at 2.49% + $0.25 per transaction, with discounts available for high-volume sellers.
Consider your business needs and priorities when selecting a payment gateway. Each of these options has its own standout features and pricing structures, so be sure to choose the one that best fits your business.
Best Online Credit Card Processing System for First-Time Users
PayPal (Web, Android, iOS)
If you are a first-time user looking for a trusted and straightforward payment processing system, PayPal might be the right choice for you. PayPal has been in the industry for a long time and has built an experience that is easy for first-time users, taking most of the complexity out of the equation.
Pros of PayPal
- Trusted, well-known name might make customers more likely to click buy
- Extremely simple (for you and your customers)
Once you add your products, you can customize the Smart Payment Button, as shown in the screenshot above. The only thing you can’t customize are the colors. You can change the shape, what logo appears on the PayPal button, and show/hide the Debit or Credit Card button. When you’re done, simply click Copy code and paste it on your product page.
Cons of PayPal
- Very confusing pricing structure
One thing you’ll hear from anyone using PayPal: the transaction fees are flat-out confusing. In general, PayPal charges a base fixed price for each transaction and then a percentage over the total amount. So the basic credit card fee is 3.49% + $0.49 for U.S. transactions, but this percentage/cents combo varies a lot depending on transaction type and currency, so be sure to read the fine print.
PayPal has some interesting extras to offer. You can create your PayPal.me profile page, which gives you a searchable profile, and generate individual payment links that you can share via email or in a text message. And if you’re running a subscription-based business, there’s also a lot of customization there, including setting up trial periods, one-time setup fees, and billing cycle length.
How it Works
When customers visit your website, they’ll see the button you’ve configured. They can then choose to pay with their PayPal balance or any saved payment method on their PayPal account. If they don’t have PayPal, they can check out by entering their credit card details (all data is handled securely by PayPal in both cases). Added security measures include fraud protection, which keeps your store safe from credit card fraud, and also customer protection, which lets shoppers file claims if there’s a mismatch between the products advertised and what they actually got.
Pricing
PayPal pricing varies by transaction type and currency. For U.S. credit cards, the fee is 3.5% + $0.49 per transaction. For full pricing information, check out PayPal’s website.
Integration with Other Tools
When you’re set up and ready to sell, connect PayPal to Zapier to automatically add new customers to your email marketing tool, a spreadsheet, or anywhere else you store your data. Learn more about how to automate PayPal, or get started with one of these pre-made workflows.
If your sales volume is growing, PayPal has another payment solution for you: Braintree. It has advanced analytics, better control in creating and implementing your checkout experience, and slightly lower payment processing fees. It also accepts a wider range of payment methods, including Venmo.
Best Online Payment Processing System for Accessible Analytics
Stripe (Web, Android, iOS)
If you’re looking for an online payment processing system that offers a wide range of features and integrations, Stripe is a great option. While it may be a bit more complicated to set up than some other options, the flexibility it provides is well worth it.
Pros
One of the biggest advantages of using Stripe is the sheer number of features it offers. Whether you’re looking for subscription management, tax automation, or native integrations with a variety of website builders and eCommerce platforms, Stripe has you covered. Plus, there are plenty of plugins and integrations available, so you can customize your setup to suit your needs.
Cons
While Stripe is an excellent choice for those with some technical knowledge, it may be a bit more challenging to set up than some other payment processing systems. However, Stripe does offer an implementation wizard to help guide you through the process, and once you’re up and running, the analytics tools are incredibly powerful.
Analytics
One of the standout features of Stripe is the depth of analytics it provides. From the home dashboard, you can view sales volume, fraud and dispute reports, spend-per-customer, and high-risk payments. If you want to take a deeper dive, head to the Reports section, where you can explore a wide range of options, including billing analytics that help you look into your MRR or revenue forecasts.
Pricing
Stripe’s fee structure is simple and transparent. For credit card transactions, the fee is 2.9% + $0.30 per transaction. While other payment methods may have different costs, the pricing page is clear about them, so you always know what you’re paying.
Implementation
There are three main ways to embed Stripe on your website: an embedded payment form, a pop-up hosted by Stripe, or a redirect to a checkout page. While each option requires some coding to implement, Stripe provides a full guide to help you copy and paste the code to the right place on your website.
Conclusion
Overall, Stripe is an excellent choice for those looking for a payment processing system that offers powerful analytics tools and a wide range of features and integrations. While it may be a bit more complicated to set up, the flexibility and transparency it provides make it well worth the effort.
Best eCommerce Payment Processing System for Online Stores
Shopify Payments
If you’re looking for an all-in-one eCommerce solution, Shopify Payments may be the perfect fit for your online store. It’s incredibly easy to set up and use, making it a great option for beginners.
One of the major pros of Shopify Payments is that it’s a native payment solution, meaning you don’t have to integrate a third-party platform. This saves you time and potential headaches, especially if your store’s inventory rotates frequently. Shopify handles the thorny parts for you, whereas other platforms would require manual work or some tech-savvy for coding a solution.
However, one of the cons of Shopify Payments is that you have limited freedom to use another payment provider. You can only use Shopify Payments if you have a store hosted on the platform. The plans start at $39 per month, offering the starter toolkit for everything you need to sell online: website, marketing tools, and payments, all in one place.
As you go up in the paid tiers, you unlock more features to increase the quality and reach of your shop, while also slightly reducing the payment processing fees, down to a minimum of 2.4% and $0.30 per transaction. Shopify is a beginner’s haven, offering plenty of high-quality help to get you started. You don’t have to be a technical expert, coding wizard, or eCommerce legend: just bring time and curiosity, and you’ll be able to build your store.
To activate the online payments, submit your business details, wait for confirmation, and that’s that. You can also integrate Shopify with Zapier to connect your eCommerce apps and automate the boring stuff. Automating your Shopify store can save you time and effort, and Zapier offers plenty of workflows for inspiration.
If you’re using WordPress with WooCommerce instead, WooCommerce also has a native payment system, WooCommerce Payments. Each transaction goes for 2.9% plus $0.30, with tools similar to those Shopify offers. However, if you’re already using Shopify for your eCommerce store, Shopify Payments may be the best option for you.
Best Payment Gateway for Selling Online and Offline
Square (Web, Android, iOS)
If you’re looking for a payment gateway that can handle both online and offline sales, Square is a great option. With its physical card reader machines, you can easily accept card payments at your brick-and-mortar shop. At the same time, Square lets you build an online store with seamless payment processing, giving you the ability to sell your products online.
Pros
- Square offers an easy combination of in-person and online sales, making it a great option for businesses that want to expand their sales channels.
- Square includes a basic website builder with beautiful themes, making it easy to set up and publish your own website.
Cons
- Square is not quite as feature-rich as Stripe, so if you’re looking for more advanced features, you may want to consider other payment gateways.
Square’s interface is sleek and user-friendly. The main dashboard provides a snapshot of your business at a glance, and the left-side menu gives you access to a wide range of features. These include accepting payments online for all major card brands, as well as Google Pay, Apple Pay, and Samsung Pay.
Once you’ve set up your account and added your products, you can embed customizable buy buttons on your sales channels. While the level of customization is great, it’s important to note that there are no payment method badges or a “processed securely by Square” note. To give your customers a sense that it’s safe to shop with you, be sure to add those to your website.
If you don’t have a website, Square offers a website builder with beautiful themes that are easy to set up and publish. It also offers basic email marketing features, so you can keep in touch with your customers, run campaigns to raise awareness about new products or services, or get feedback on customers’ experiences.
Most of Square’s features are free to use, but if you want to unlock more for your store and checkout experience, there are two subscription plans available. The highest one, Premium ($79/month), even lowers the transaction fee to 2.6% + $0.30 (from 2.9% + $0.30), so if you end up setting up shop with Square and start selling a lot, it may make sense to upgrade.
In addition to its core features, Square has quite a bit to offer in terms of extras. For example, you can open a checking account, which lets you receive payments faster and make payments directly from there too. You can also keep your invoices organized, send estimates and contracts, and see filterable reports on everything from sales to disputes.
Finally, you can connect Square to all the other apps you use with Square’s Zapier integrations. This makes it easy to automate many of your business processes and streamline your operations.
Square’s pricing varies by transaction type, with online credit card transactions costing 2.9% + $0.30. The company also offers subscription plans to unlock more features, starting at $29/month. For full pricing details, visit Square’s website.
Best Online Payment Processing System for B2B Sales
HubSpot Payments (Web, iOS, Android)
If you’re looking for a payment processing system that simplifies billing and makes it easy to spread payment buttons anywhere you need, HubSpot Payments might be the solution for you. This payment processing system allows you to turn proposals into payment links, making it easy for your customers to pay in a user-friendly payment form.
One of the major advantages of HubSpot Payments is its seamless integration with the HubSpot Commerce Hub feature set. This allows you to manage your business relationships, marketing, website, content, and operations from the same platform. The payment infrastructure is handled by Stripe, with HubSpot charging 2.9% for each transaction, with no extra fees. However, it’s important to note that if you connect your Stripe account to HubSpot for processing payments, you’ll have to pay both apps’ processing fees, bringing the total to 3.4% + $0.30 per transaction instead.
HubSpot Payments is easy to use, offering basic tools to send links and see the results. The connection with the CRM saves plenty of time since you don’t have to create the payment request elsewhere and send it over. You can put the link inside a button and then embed it anywhere, be it your weekly newsletter, your blog, or the front page of your website.
To get started with HubSpot Payments, you’ll need an active HubSpot CRM Starter subscription, which starts at $20 per month. If you’re curious about this possibility, check out HubSpot’s guide on how to get it done.
However, one potential downside of HubSpot Payments is that it may lack flexibility. If you’re looking for a payment processing system that offers more customization options, you may want to consider other options.
In summary, if you’re looking for a user-friendly payment processing system that can help you streamline your work and save time, HubSpot Payments is definitely worth considering.
Best Online Payment Processing Service for Interchange Pricing and Volume Savings
Helcim (Web, iOS, Android)
If you’re looking for an online payment processing service that offers interchange pricing and volume savings, then Helcim might be the right choice for you. Helcim is an online payment processing service that offers a wide range of features and a great user experience for both you and your customers.
Pros
One of the biggest advantages of using Helcim is its interchange plus pricing structure. Instead of charging a fixed fee like most of the competition, Helcim charges interchange plus fees. This means that you’re charged the actual cost of processing each transaction, plus a small markup that Helcim adds to cover their costs and make a profit. This can be a great way to save money on transaction fees, especially if you have a high volume of transactions.
Another advantage of using Helcim is its wide range of features. Whether you need to accept payments online, in-store, or on-the-go, Helcim has you covered. The platform supports a wide range of payment methods, including credit cards, debit cards, and e-checks, and it offers a range of tools to help you manage your payments and your business.
Cons
One potential downside of using Helcim is its potentially confusing fee structure. Because Helcim charges interchange plus fees, there are a lot of different fees to familiarize yourself with. At the end of the year, you can expect the average fee to stand at 2.49% + $0.25 per transaction. While this can be a great way to save money on transaction fees, it can also be confusing and overwhelming for smaller businesses.
Price
Helcim’s interchange plus pricing averages at 2.49% + $0.25 per transaction. However, discounts are available for high-volume sellers. If your monthly volume is below $50k, you’ll be charged 0.50% + $0.25 per transaction. If you have a monthly volume of more than $1M, that comes down to 0.15% + $0.15 per transaction.
Overall, Helcim is a great choice for businesses that want to save money on transaction fees and have access to data on customer payment methods. While its fee structure can be confusing for smaller businesses, it can be a great way to save money on transaction fees for larger businesses with high transaction volumes.
Payment Gateway FAQ
What are interchange fees?
Interchange fees are charges incurred by merchants for each processed transaction. These fees are usually a percentage of the transaction amount, and sometimes a fixed fee. Although merchants typically bear these fees, they can also be passed on to customers through surcharging mechanisms.
What is a merchant account?
A merchant account is similar to a bank account, but it is specifically designed to receive payments from customers. Unlike a regular bank account, you cannot withdraw funds from a merchant account until the payout date. Some platforms offer merchant accounts without a payment gateway or processing system, so it is important to research the available options.
What is a payment gateway?
A payment gateway is a platform that handles the front-end portion of online payments. This includes payment forms, checkout flow, online security, and initiating the transaction with a payment processor. Payment gateways used to be software-based, but now they can also include physical terminals.
What is a payment processor?
A payment processor is a platform that connects banks, merchant accounts, card networks, and payment systems to initiate and process transactions. Payment processors handle authorization, which involves verifying the card’s credentials and ensuring that the cardholder’s account has sufficient funds. They also handle settlement, which involves moving the funds from the cardholder’s account to the merchant’s account.
What is an issuing bank?
An issuing bank is the bank that issued a customer’s credit or debit card. When a customer uses their card for a transaction, the card network contacts the issuing bank to verify the card’s details and ensure that the customer has sufficient funds. The issuing bank also initiates the process of transferring the funds from the customer’s account to the merchant’s account.
What’s involved in processing a credit card transaction?
Processing a credit card transaction involves multiple parties and networks. The key players are the cardholder, the merchant, the payment gateway, the payment processor, and the card networks and payment systems. Payment processors handle the back-end portion of payments, which involves securing authorization and settlement. Some platforms offer combined processing and gateway features, while others may offer a gateway with a merchant account but no processing.
How does credit card processing work?
Credit card processing involves two phases: authorization and settlement. During authorization, the payment processor verifies the card’s details and checks that the account has sufficient funds. Once the issuing bank approves the transaction, the funds are authorized but not yet transferred. Settlement involves transferring the funds from the customer’s account to the merchant’s account, minus the interchange fees. The funds are held in the merchant’s account until the payout date, when they can be withdrawn.
What’s the Best Online Payment Gateway for eCommerce?
When it comes to eCommerce, choosing the right payment gateway is crucial. There are several factors to consider, such as the fees, the payment options, and the security features. Here are some of the best options to consider:
- Stripe: Stripe is a popular payment gateway that offers a simple and intuitive interface, competitive pricing, and a wide range of payment options. It also has strong security features and excellent customer support.
- PayPal: PayPal is another popular payment gateway that is widely accepted and easy to use. It offers competitive pricing and a range of payment options, including PayPal Credit. However, it may not be the best option for high-volume transactions.
- Authorize.net: Authorize.net is a reliable payment gateway that offers advanced fraud detection and prevention features. It also offers a range of payment options and competitive pricing.
- Square: Square is a popular payment gateway that is known for its user-friendly interface and competitive pricing. It offers a range of payment options, including mobile payments, and has strong security features.
Ultimately, the best payment gateway for your eCommerce business will depend on your specific needs and preferences. Be sure to explore each option thoroughly and consider factors such as pricing, payment options, and security features before making a decision.
Frequently Asked Questions
What are the top payment gateways for international transactions?
When it comes to international transactions, some of the leading payment gateways include PayPal, Stripe, and Authorize.net. These payment gateways are widely accepted and trusted by customers and merchants alike. They offer a range of features such as multi-currency support, fraud detection, and chargeback protection.
Which payment gateways are highly recommended for small businesses?
For small businesses, payment gateways such as Square, PayPal, and Stripe are highly recommended. These payment gateways offer affordable pricing plans, easy integration with popular platforms, and user-friendly interfaces that make it easy for small businesses to manage their transactions.
What are the top-rated payment gateways currently available in India?
In India, some of the top-rated payment gateways include Razorpay, PayU, and CCAvenue. These payment gateways offer a range of features such as multiple payment options, customizable checkout pages, and fraud detection.
Who are the major payment gateway providers in the USA?
Some of the major payment gateway providers in the USA include PayPal, Stripe, Authorize.net, and Square. These payment gateways are widely accepted and trusted by customers and merchants alike, and they offer a range of features such as multi-currency support, fraud detection, and chargeback protection.
How do I choose a cost-effective payment gateway for my needs?
When choosing a cost-effective payment gateway, it’s important to consider factors such as transaction fees, monthly fees, and setup fees. Payment gateways such as PayPal, Stripe, and Square offer affordable pricing plans and user-friendly interfaces that make it easy for businesses to manage their transactions.
Which payment gateways offer the best integration with platforms like Shopify?
Payment gateways such as PayPal, Stripe, and Authorize.net offer seamless integration with platforms like Shopify. These payment gateways offer easy setup and management, customizable checkout pages, and a range of features such as fraud detection and chargeback protection.