Every business, from SMBs to enterprises, needs a reliable payment gateway to securely process online transactions. It acts as a bridge between customers, merchants, and banks. As a business owner, selecting the right payment gateway is essential for providing a smooth and reliable customer experience. With so many options available, understanding the features, costs, and functionality of each provider is key to making an informed decision.
This guide will walk you through important factors to consider when choosing a payment gateway, such as security, fees, and integration capabilities.
We’ll also explore some of the top payment gateway providers in the market, highlighting their strengths and weaknesses to help you find the best solution for your business.
How do you choose a payment gateway?
First and foremost, assess your business needs, such as the types of products or services you offer, your target market, and whether you need a solution that supports online in-store, mobile payments, or all three.
Secondly, security should be the top priority after business needs, so ensure your payment is PCI-DSS compliant and comes with a fraud prevention system. Thirdly, check out the fees and analyze transaction costs of various payment gateways and volumes with w.r.t to your budget and traffic.
Lastly, look for gateways that support integration with your existing e-commerce platforms. Moreover, ensure your payment gateway is always scalable, which the business needs. These are some of the key criteria to help you shortlist the right payment gateways for your business needs.
Top Payment Gateway solutions
1.PayPal
PayPal is the leading and widely used payment gateway globally with a market share of more than 40%. It accepts online payments via credit cards, debit cards, and more. It is available in 202 countries and accepts 25 currencies.
Pros
- Trusted brand with a proven track record.
- No need for contracts.
- Instant transaction processing.
- Strong fraud protection policies, can reduce disputes between you and your customers.
- Easy integration with an e-commerce platform.
Cons
- Limited customization.
- PayPal sometimes freezes accounts if your account is flagged for suspicious activity, which can disrupt business operations.
Pricing: PayPal’s free version and pro version of the payment gateway charge a fee of $0.10 for every transaction, a 2.5% conversion fee, and a cross-border fee of 1 for every international payment.
2. Square
Square is a versatile payment gateway that provides both online and physical processing solutions. Square’s payment API can be easily integrated with the online store. Square accepts Apple Pay, Google Pay, and Square Pay payments.
Pros
- No monthly fees.
- Fast deposits
- Free POS software and hardware for physical stores.
Cons
- Square is available only in a few countries, including the U.S., Canada, UK, and Australia.
- Like PayPal, Square can freeze accounts if they suspect fraudulent activity, which can cause issues for businesses.
Pricing: Square charges 2.9% + $.30 for every online transaction and 3.5% + $.15 for every transaction using card. It also offers customized pricing plans for businesses that handle more than $250,000 USD per year.
3. Stripe
Stripe is a developer-friendly payment gateway that allows businesses to accept payments easily. Stripe offers APIs and customizations which makes it ideal for tech-savvy businesses looking to integrate payments into their websites or apps. Moreover, it gives more control and customization options for developers compared to other payment gateways in the market.
Pros
- Stripe operates in over 40 countries and accepts payments in more than 135 currencies.
- Supports recurring payments and subscription billing.
- Stripe Radar, an ML-powered tool that comes with a stripe payment gateway helps businesses to combat fraud.
Cons
- Accepts payment only via cards.
- Stipe doesn’t offer a point-of-sale (POS) system, which could be a downside for brick-and-mortar stores.
Pricing: It is based on number of the transactions and starts from 2.9% + $.30 per transaction.
4. Authroize.Net
Authorize.Net is one of the oldest payment gateway founded in 1996 with a suite of payment processing solutions. It supports online payments via credit cards, debit cards, e-checks, and more.
Pros
- Supports recurring billing and subscription management.
- Employs advanced fraud detection and security tools (fraud prevention filters, tokenization).
- It has an integrated electronic check payment system for processing payments from other banks.
Cons
- It only supports businesses located in the UK, US, Canada, and Australia, and transactions to Europe are considered international payment.
- Complex setup.
Pricing: It charges monthly 25$ per month and a $.10 fee for every transaction along with daily batch fees.
5. Braintree
Braintree is owned by PayPal and is part of the PayPal network. It offers a comprehensive solution for companies to scale their businesses globally as it covers more than 40 countries and 130+ currencies.
Pros
- It enables merchants to accept payments from PayPal, Venmo, and credit or debit cards in a single integration.
- Supports recurring billing.
Cons
- It charges a crossborder fee of 1% to non-US cards and 1% for non-USD transaction
Pricing: Braintree charges a fee of 2.59% + $.49 per transaction from cards and wallets. Moreover, for every ACH direct debit Braintree charges a 0.75% fee and 3.49% + $.49 for Venmo transactions.
6. Worldpay
Worldpay is one of the widely used payment gateway from the UK that supports more than 126 currencies, across 50 countries. It accepts credit/debit cards, Apple Pay, Google Pay, and other payment methods.
Pros
- PCI DSS compliant.
- Global payment processing in over 120 currencies.
- Can be integrated with Shopify, Salesforce, and Lightspeed POS.
Cons
- FIS Global may demand lengthy contracts with automatic rollover.
- Sometimes fails to connect wireless card reader.
Pricing: Worldpay does not have a transparent pricing model.
7. Adyen
Adyen is a payment gateway that focuses on large enterprises and is equipped with data analytics, and financial management features. It supports multi-currency transactions and supports in-store payments to online and mobile transactions.
Pros
- Support more than 150+ currencies.
- Fraud protection system with real-time reporting.
- Supports dynamic currency conversion for 36 currencies.
Cons
- Complex pricing model.
Pricing: Check their site https://www.adyen.com/pricing
8.2Checkout
2Checkout now owned by Verifone is a flexible, global payment gateway with a focus on Europe. It is ideal for global e-commerce businesses that want to operate in Europe.
Pros
- Supports transactions in 200 countries, and 45+ local payment methods.
- Easy integration.
- No monthly fees.
- It also supports 15 languages.
Cons
- Sometimes freezes accounts in suspicion of fraudulent activity.
Pricing: 2checkout charges 3.5% + $.35 per transaction for 2sell plan and 4.5% + $0.5 per for 2subscribe plan.
9. Mollie
Molli is a European payment gateway suitable for small and medium-sized businesses. It is ideal for startups and e-commerce stores in the EU. It accepts all major credit cards and local payment options.
Pros
- Easy to setup
- PCI-DSS compliant.
- Good Customer support
- User-friendly interface
Cons
- Lacks some advanced features available in other payment gateways.
- Limited customization.
- Not suitable for larger enterprises.
Pricing: Transparent pricing depends on the card provider.
10. Razorpay
Razorpay is an Indian-based payment gateway that focuses on both domestic and international businesses. It is a popular choice for businesses operating in India, that offers competitive pricing and various features.
Pros
- The platform employs encryption to make transactions secure.
- Clear API documentation.
- Ease to use.
Cons
- Poor customer support.
- No fraud transaction detection system.
Pricing: Razorpay charges a standard fee of 2% + GST for domestic transactions via credit/debit cards, net banking, and wallets, with UPI transactions costing 1% + GST (capped). International transaction fees range from 3% to 4% + GST, depending on the payment method.
Conclusion
Each of the payment gateways mentioned above has its own pros and cons, making it essential to choose the one that aligns best with your interests. Factors such as security, transaction fees, ease of integration, and scalability should be prioritized when making your decision.
Whether you’re a small business or a large enterprise handling high transaction volumes, selecting the right gateway can streamline your payment processes, improve the customer experience, and support your customer growth.
Take the time to evaluate each option carefully, considering both current and future requirements, to ensure a smooth and efficient payment solution for your business.
Related Reading:
Vulnerability Scanning for Small Businesses: A Practical Approach
The Role of AI in Modern Fraud Detection
PCI DSS Compliance: Why It’s Crucial for Payment Security
