Best Payment Processing Systems of 2024

Edited by Amy Smith

Updated


Disclosure: Our content is reader-supported, which means we earn commissions from links on Digital. Commissions do not affect our editorial evaluations or opinions.

Payment processing services are necessary for online business. The best payment processors boost your sales and revenue while offering a simple experience for you and your customers. We tested leading online payment processing services, compared transaction fees, features, and support options, and read real user reviews. We recommend you consider online payment services on the below criteria, your business sales volumes, and overall payment needs.

The Best Payment Processing System: Our Top Pick

We chose Stripe as the best online payment processing service for its flat-rate, pay-as-you-go pricing model and customizable interface and reporting tools.

Our Top Picks

Square

Best Overall

Jump to Review

Shopify

Best for Ecommerce

Jump to Review

Stripe

Best for Startups

Jump to Review

Stax

Best Subscription-Based Pricing

Jump to Review

Helcim

Best Pricing for Fast-Growth Businesses

Jump to Review

Amazon Pay

Best for Voice Commerce

Jump to Review

Clover

Best for Established Businesses

Jump to Review

PaymentCloud

Best for High-Risk Businesses

Jump to Review

Authorize.net

Best Comprehensive Payment Toolkit

Jump to Review

PayPal

Most Widely Used Processing System

Jump to Review

Digital.com dives deep into every topic it covers to offer trusted and reliable recommendations for the best business tools. See how we review payment processing systems.

Tips From an Expert

Choose what works now, switch for lower rates when you can.

“The ideal payment processing service gives you the lowest rates, but new and risky businesses don’t always get to choose the merchant services provider (MSP) they want. The good news is plenty of affordable options will also approve new businesses that don’t have high sales volume yet. My tip: When your sales do increase, apply for a lower rate with your existing payment processor or shop elsewhere.” 

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The Top 10 Online Payment Processing Systems

Square logo

Square

Best Overall

Features

  • Intuitive dashboard
  • Seamless integration with third-party tools
  • Social commerce (Google, Facebook, Instagram)

#1 Top Pick

Square is a great all-around choice if you’re looking to process payments for the first time. There are no long-term contracts, it’s feature-rich, and the application process is straightforward.

Pricing Structure
Flat-rate

Integrations
Marketing, inventory management, and shipping tools

Compliance & Security
Square Secure, PCI compliant, two-step verification, Risk Manager (detects fraud and prevent loss), and ISO 27001 certified

Read More

Square is best known for its business software suite and point-of-sale (POS) systems but also offers its customers easier ways to collect payments online with no extra fees or long-term contracts. You can access a complete suite of tools to grow your business, including Square Online.

High-level analytics inside of Square. Shows tasks, paid, pending approvals, outstanding, and accepted payments

Square’s business tools help you quickly accept payments and get paid. Unlike other services, it also connects with your social media accounts. Square Online Checkout lets you accept payment almost anywhere. A transaction fee applies whenever you make a sale.

You can offer your customers fast and easy checkout through a customized page. The format options can be customized to suit your business and shared with customers via email, text, social media, or your website. Square integrates with marketing, inventory management, business POS systems, and shipping tools, making it easier to track payments and fulfill orders with Square Online Checkout.

Support is available for its customers via email, phone, or chat. The online assistant was helpful, but I couldn’t access a human agent outside support hours. While email support was available 24/7, I waited anywhere from 24 to 48 hours to get a response — sometimes longer. Square’s Seller Community is active but sometimes unreliable when you need a quick answer.

  • Who is Square best for?
    We recommend Square for businesses processing payments for the first time as well as omnichannel sellers, particularly if you sell through social media platforms like Facebook and Instagram.
  • Recent upgrades to Square
    As a Square Online Checkout merchant, you’re eligible for the built-in BNPL option. Square also accepts payments with Afterpay online, a great way to increase business and boost online sales. Square Banking is also available for merchants. This service syncs your payments, cash flow, and business banking accounts seamlessly. There’s no opening deposit, minimum balance, overdraft fees, or monthly account fees.
  • Square pricing & transaction fees
    Pricing is fair and transparent. If your business processes less than $250,000 annually, you’ll pay the standard 2.9% plus 30 cents per transaction rate, similar to other online payment services.

Reasons to choose Square

  • No signup, charge-back, or hidden fees
  • Long-term agreements aren’t required
  • Makes selling easy on Facebook and Instagram
  • Free online store builder

Reasons to avoid

  • Doesn’t work with some high-risk merchants
  • Costs can add up for large businesses
  • Limited customization options

Visit Square

Shopify logo

Shopify

Best for Ecommerce

Read Review

Features

  • Transparent transaction fees
  • Strong security and analytics
  • 24/7 customer support

Pricing Structure
Monthly fee + flat-rate

Integrations
100+ processors

Compliance & Security
Level 1 PCI DSS compliant, two-step authentication, Transport Layer Security (TLS)

Read More

Shopify’s integrated online payment processing service helps businesses host and process customer payments, among other functions. You get competitive processing rates, the ability to sell in 133 currencies, strong security and analytics, and excellent 24/7 customer support.

Payments dashboard inside of Shopify. It shows standard rates for domestic and international payments as well as rates for specific types of credit cards.

Shopify is simple to set up and use; you won’t struggle with third-party merchant accounts or payment providers. The platform also offers transparent yet competitive transaction fees. It has a seamless customer checkout experience and organizes your sales and payment information in its ecosystem.

Once you create your Shopify store, you can set up all major payment methods automatically and start accepting payments online. The service isn’t available in all countries, though, and the multiple currency feature is limited to stores using the Shopify platform. An Automatic Dispute Resolution is available in case you get unnecessary chargebacks.

Security is guaranteed as Shopify stores automatically meet PCI DSS compliance standards. It also supports online and recurring payments and integrates with popular marketing and accounting apps and major e-commerce platforms.

  • Who is Shopify best for?
    We recommend Shopify for omnichannel sellers looking for a quick way of accepting online payments. If you’re just starting or are already in business but want to set up an ecommerce store, you won’t go wrong with Shopify.
  • Recent upgrades to Shopify
    Shopify constantly updates its platform by adding new features and payment options, making it accessible to new markets and countries. The company added buy now pay later (BNPL) options; due on fulfillment for B2B orders; custom pricing by market on all plans; branding customization; a Shopify Tax option (within the U.S.), and purchase options to Shopify’s Selling Plan API.
  • Shopify pricing & transaction fees
    There are no additional transaction fees for orders processed via Shopify Payments, Shop Pay Installments, Shop Pay, and PayPal Express. Standard rates for those processers are 2.4% to 2.9% + $0.30 per transaction. You’ll get better rates on higher tiers.

    If you use third-party payment processors, an additional fee applies on top of the process for. It varies depending on your plan (0.5% to 2%). There’s also a software fee, ranging from $29 to $299 per month, depending on the plan.

Reasons to choose Shopify

  • Transparent transaction fees
  • Strong analytics, security, and compliance
  • 24/7 customer support

Reasons to avoid

  • Not available in all countries
  • Requires a significant monthly fee
  • Additional charges if you don’t use Shopify’s payment processing solution

Read our Shopify review | Visit Shopify

Stripe logo

Stripe

Best for Startups

Features

  • Stripe Connect
  • Flat-rate, pay-as-you-go pricing model
  • Customizable interface and reporting tools

Pricing Structure
Flat-rate

Integrations
Works with over 135 consulting and technology partner services

Compliance & Security
PCI DSS Level 1, PSD2 and SCA compliant, SSAE18/SOC 1 type 1 & 2, SSAE18/SOC 2 type 1 & 2, UK + EU e-money licenses

Read More

This unified platform provides a suite of products to power payments for online businesses. It applies a tech-first approach to help business owners send invoices, issue virtual cards, reduce checkout friction, manage business spending, and beat fraud.

Accounts dashboard inside of Stripe. Shows the account, owner identity, balance, and recent activity

Stripe offers the best options to tailor your online payment experience for customers. That includes customizing the invoicing and payment processes with your brand elements and tweaking the interface in the dashboard to provide a branded checkout experience. Plus, you can design custom payment forms using Stripe Elements or change a checkout page’s name and customize its domain name.

I liked that Stripe supports processing international payments in more than 135 currencies; you can charge customers in their native currency and receive funds in yours. Its out-of-the-box integrations with top e-commerce platforms help streamline your checkout process and set up customer payments with several options, such as custom payment forms and invoices.

And with Stripe Connect, you can collect payments online and get paid in over 30 countries with a single platform. You can also add payments to your platform for free using Standard Connect and process charges.

  • Who is Stripe best for?
    Stripe works best for new online businesses (subscription, software, marketplaces) who are just getting started or wanting more payment options, like recurring payments and subscriptions.
  • Recent upgrades to Stripe
    Updates include adding embedded financial services like lending, financial accounts, cards, and global crypto payouts for Connect that allow a select group of creators to use crypto-based rails to get their earnings via Twitter. Fast-growing Software as a service (SaaS) businesses can use Stripe’s new Revenue Recognition feature. You won’t need technical expertise to integrate it with Stripe Billing, Stripe Invoicing, and other apps in the payments platform.
  • Stripe pricing & transaction fees
    Stripe offers Integrated and Customized plans. Transaction fees for its Integrated plan are 2.9% plus $0.30 cents per successful card charge, while the Customized plan is tailored for unique business models, high-value transactions, or large payments volume.

Reasons to choose Stripe

  • Good API customizations
  • No setup or monthly fees
  • Variety of payment methods

Reasons to avoid

  • It can have a steep learning curve
  • Flat-rate model is costlier at high volumes

Visit Stripe

Stax logo

Stax

Best Subscription-Based Pricing

Features

  • Surcharge-free payment options
  • Integration with accounting software
  • Subscription-based pricing

Pricing Structure
Monthly fee + interchange

Integrations
Collaboration, accounting, and project management tools

Compliance & Security
Level 1 PCI Service Provider, end-to-end encryption and tokenization, TLS1.3, and GDPR compliance

Read More

Since 2014, Stax has provided businesses across the U.S. with payment technology solutions to process payments at scale with minimal costs. The flexible platform provides a simple flat-rate monthly subscription to process payments and cover transaction processing and interchange costs.

Billing details for a customer inside of Stax. Includes name, contact info, country, payment method, and line items

This platform is for small and large businesses to accept payments online. You can connect your entire payments experience and manage your business from one unified dashboard. Stax eliminates the need to work with multiple vendors because everything is under one roof, and there are detailed reports about payment methods, sales, and more.

Plus, Stax integrates with customizable tools, which enhance your business. You can also access advanced insights for better decision-making, and, ultimately, increase your profits and maximize revenue. Stax also offers pre-built carts, which you can activate with one click and process online orders. Alternatively, you can use Stax developer tools to build custom shopping carts that integrate into your store. Also, it accepts payments from customers using international credit cards or website payment links.

  • Who is Stax best for?
    Stax works for small but actively growing businesses with steady high-volume sales (at least $20,000 per month) that benefit from a set monthly fee. While the subscription-based pricing structure covers transaction processing, its fees (monthly and chargeback) aren’t cost-effective for small businesses with low-volume sales.
  • Recent upgrades to Stax
    Some updates include: upgraded Level 2 processing, a fully re-envisioned mobile dashboard experience, push notifications for daily deposits, comparison stats for sales and refunds, and reliable credit surcharging.
  • Stax pricing & transaction fees
    Stax’s pricing plans may be quite expensive for low-volume sales businesses compared to top competitors, whose monthly fees range from $0 to $60. Some features, like the Level 2 processing, are only available in higher plans as an add-on. Stax also offers custom pricing for businesses processing over $500,000 per year, making it an excellent choice for high-volume merchants.

Reasons to choose Stax

  • Integrates with accounting tools
  • Wholesale interchange rates
  • No hidden fees or contract cancellation charges

Reasons to avoid

  • Lengthy application and setup process
  • High monthly subscription fees
  • Unsuitable for low-volume businesses

Visit Stax

Helcim logo

Helcim

Best Pricing for Fast-Growth Businesses

Features

  • Automatic volume-based discount pricing
  • Detailed merchant & business statements
  • Customer-facing portal for subscriptions

Pricing Structure
Interchange plus

Integrations
Accounting, shopping carts, billing tools, ecommerce platforms

Compliance & Security
Firewalls, IDS, IPS, regular backups, PCI DSS and NIST, multi-factor authentication, password protection, and 256-bit (AES)

Read More

Helcim offers a world-class solution that lets you accept payments from more customers. You don’t have to worry about monthly fees, outsourcing, expensive developers, web servers, complicated code, or plug-ins. Plus, you benefit from Helcim’s fast deposits, lower rates, and automatic volume discounts.

Custom report inside of Helcim. Shows total sales, net sales, refunds, chargebacks & returns, a breakdown by card type, and fees

Helcim is an all-in-one payment processing service with free tools, including invoicing, online checkout, and others to grow your business. The service syncs your customer data automatically to your merchant account while updating your inventory. Its low, transparent rates and Interchange Plus pricing are a favorite of fast-growing and established businesses. Helcim provides easy-to-read and concise merchant statements, too.

I liked its volume discounts, which lower processing fees as transaction volumes go up, without having to negotiate rates with the company. This feature is ideal for fast-growing and established businesses doing heavy volumes, so startups or small businesses processing under $20,000-$25,000 may find it expensive to start and maintain. And you can use Helcim’s borderless payment processing to accept and receive international credit card payments in your local currency.

  • Who is Helcim best for?
    Helcim works best for fast-growing and established businesses processing at least $25,000 per month. If you’re looking for better ways to accept online payments and get paid faster, at the lowest rate possible, Helcim is worth considering.
  • Recent upgrades to Helcim
    Helcim regularly upgrades its solution. The company created a partnership with Xero, popular accounting software, integrating its credit card payments into Xero invoices. If using Xero you can request and accept payments effortlessly while benefiting from Helcim’s pricing model.

    New features, including a sync between Helcim and Xero accounts and the ability to pay invoices via Automated Clearing House (ACH) payments, will also be added to the integration.
  • Helcim pricing & transaction fees
    Helcim prides itself in offering transparent pricing that saves you money — no monthly fees, contracts, or hidden charges. You get free e-commerce, hosting, international credit card processing, and the latest technology and tools to accept payments and grow your business.

Reasons to choose Helcim

  • No monthly fees
  • Responsive customer service
  • Free merchant account
  • Automatic volume-based discounted pricing

Reasons to avoid

  • Strict account setup
  • Unsuitable for high-risk businesses
  • Two-business-day deposits

Visit Helcim

Amazon Pay

Amazon Pay

Best for Voice Commerce

Features

  • Recurring payments/checkout
  • Seamless checkout
  • Voice commerce

Pricing Structure
Flat-rate

Integrations
Website builders, ecommerce platforms, shopping carts, and marketplaces

Compliance & Security
PCI DSS compliance, machine learning to identify risky attempters, and Card Verification Value (CVV), one-time passcode or biometric for user verification

Read More

Amazon Pay (formerly Amazon Payments) offers quick, friendly, and secure checkouts. Shoppers can pay for orders using the information in their Amazon accounts or use Alexa to pay by voice.

Amazon Pay is a quick and secure option for your customers to check out online. You can add the payment processing platform to your website and pay flat-rate transaction fees without monthly or startup costs. Enable the Amazon Pay button to make payment processing easier for your customers with one click and checkouts.

The platform gives your customers more ways to pay for their purchases with mobile, online, and Alexa devices or voice payment features. You can add it to your store or social selling and other platforms so customers can purchase from you with their Amazon accounts. They’ll also feel more secure purchasing at your store without entering all their credit card details on a separate site.

Its merchant signup is easier and faster than Helcim or Stax, but its long approval process can take weeks before you can put it on your site. Amazon also subjects all accounts to a tiered reserve. This can be frustrating as it eats into your cash flow, especially when you’re not expecting it. But you get analytics reporting tools, security and fraud management, recurring payments, charge-back controls, and risk management processes for free.

  • Who is Amazon Pay best for?
    We recommend Amazon Pay as a supplemental option because it’s designed for shoppers with Amazon accounts. The solution also works best when you want to manage international payments, reduce cart abandonment, and enable voice payments so shoppers can buy from your store through Alexa devices.
  • Recent upgrades to Amazon Pay
    Amazon Pay now lets customers use Venmo at checkout — the company’s partnership with Venmo made it a payment option for Amazon purchases for all its U.S.-based customers. This adds to the platform’s convenience, security, and ease of use over other payment processors with fewer options.
  • Amazon Pay pricing & transaction fees
    For businesses, Amazon Pay’s flat rate is 2.9% plus 30 cents transaction fee, which includes domestic processing fees, authorization fees, and tax (where applicable). The processing fee depends on whether you are accepting cross-border or local payments and only applies to successfully authorized and processed purchases.

Reasons to choose Amazon Pay

  • Quick and easy integration
  • No setup required
  • Works seamlessly across devices
  • Security for customer data and dispute resolution through Amazon Pay A-to-z Guarantee

Reasons to avoid

  • Long account approval time
  • Delayed transfers for new merchants

Visit Amazon Pay

Clover logo

Clover

Best for Established Businesses

Features

  • 30-day free trial
  • Integration with tons of software
  • Online portal and recurring payment options

Pricing Structure
Flat-rate

Integrations
WooCommerce, BigCommerce, Ecwid, & Shopify

Compliance & Security
End-to-end encryption; PCI compliant

Read More

Clover is owned by Fiserv — a payments and fintech service provider. The platform offers small and medium-sized business (SMB) owners commerce-enabling solutions and applications for a seamless customer-merchant experience. Clover allows you to accept payments however your customers want to pay — in their native currencies.

Overview dashboard inside of Clover. Shows sales, refunds, offline payments, discounts, deleted items, and sales this week

Clover is an intuitive, feature-rich, and versatile payment processing service that streamlines your checkout process for your customers. You don’t need to buy Clover’s POS hardware or credit card terminal to use the online payment option. It allows you to process payments for all major credit and debit cards on any device, invoice your customers, and get paid faster via the online portal, or through recurring regular payments.

You can create trending reports on fast-moving items, sales, daily totals, and open orders. Plus, Clover’s integration with best-in-class apps like QuickBooks makes it easier to keep your books up to date. Clover doesn’t limit you to using its partner e-commerce platforms for your business. You can easily integrate it with your existing site, then use its developer tools to further customize.

What I like about using Clover partner platforms like BigCommerce or WooCommerce is the real-time inventory updates and the ability to manage everything from one platform. You can get many Clover features with its basic paid plan, except the website builder function, a paid add-on.

  • Who is Clover best for?
    We recommend Clover for small and growing businesses needing a simple online presence and Interchange Plus pricing. But it might not be the best option for fast-moving inventory or if you’re a casual seller, as the transaction fees may be costly with higher volumes. Shopify or Square offer similar features and lower transaction fees.
  • Recent upgrades to Clover
    Clover updates include an improved App Market layout, new top navigation, improved search functionality, and sorting and filtering options. The company reorganized app categories, which you can update on the Developer Dashboard to suit your customers. Clover also has an updated payments screen for its POS devices with impactful tweaks, but the payment functionality remains the same.
  • Clover pricing & transaction fees
    You’ll pay monthly software fees on top of processing rates for each transaction, both of which vary based on your business. The first 30 days are free, then fees start at $9.95. You’ll pay (starting at) 2.9% plus $0.30 per transaction for payments taken virtually. For instance, retail businesses taking online payments will incur a 3.5% plus $0.10 per transaction fee, which can make Clover costlier than platforms with similar offerings like Square.

Reasons to choose Clover

  • Easy and quick setup
  • Offers 30-day trial period
  • Good for established, growing businesses
  • Integrates with Ecwid, Shopify, WooCommerce, and BigCommerce

Reasons to avoid

  • Expensive transaction fees
  • Monthly subscription fee
  • Email support may be slow and unresponsive
  • Website builder comes as a paid add-on

Visit Clover

PaymentCloud logo

PaymentCloud

Best for High-Risk Businesses

Features

  • Supports high-risk businesses
  • Quick merchant approvals and setup
  • Dozens of integrations

Pricing Structure
Flat-rate, varies by plan

Integrations
Popular ecommerce platforms, CRMs, accounting tools, and more. 200+ integrations

Compliance & Security
PCI DSS, Level 1 & 2 AVStechnology, Visa 3D Secure, Mastercard SecureCode, JCB International J/Secure, and American Express SafeKey

Read More

PaymentCloud serves businesses in medium and high-risk sectors, offering online payment services, countless integrations, level 1 and 2 processing, and anti-fraud tools, among other features. There’s no application or setup fee to open a PaymentCloud account, but the process is lengthy owing to the high-risk nature of the businesses it supports.

Traditional financial institutions and payment processors don’t know how to handle merchants in high-risk industries, such as credit repair, tech support, guns and firearms, dating sites, tobacco, and cigars. PaymentCloud understands your business and won’t shut you down. Its hands-on, white-glove approach to the application and setup — plus the quick approvals and post-setup process — ensures you get processing immediately.

I found the application process lengthy and detailed, but that’s how PaymentCloud scrutinizes each high-risk merchant. The company’s trained merchant service reps ensure you’re clear about the costs, payment processing systems, and products or services that will help you scale your business.

You can accept payments via mobile, online, or credit cards, and set up ACH and eCheck options for direct deposits. PaymentCloud is PCI DSS compliant, offering fraud and charge-back prevention, which defends your business from uncharted charge-backs and fraudulent activity. Plus, you can integrate your store with the latest shopping cart integrations and access funding through business loans.

  • Who is PaymentCloud best for?
    PaymentCloud serves a host of high-risk merchant service providers, working with firearms, nutraceuticals, electronics, and other products. This list includes online seminar providers, nutrition coaching, tech support, software and e-book providers, and more.
  • Recent upgrades to PaymentCloud
    PaymentCloud partnered with RocketFuel Blockchain, Inc. This global payment and infrastructure solutions provider for cryptocurrencies helps secure payment processing for all types of businesses (low-risk, high-risk, or hard-to-place). Through a results-driven approach, the companies enable vendors and customers to use crypto for e-commerce payments and checkout solutions.
  • PaymentCloud pricing & transaction fees
    PaymentCloud doesn’t publicly disclose its pricing plans or transaction costs because it customizes them based on the business or merchant. It could work with different pricing models; the costs may be high or low based on the tailored plan. But the company strives to secure low rates through multiple backend processors.

Reasons to choose PaymentCloud

  • Works with high-risk businesses
  • Integrates with most e-commerce platforms
  • Quick approvals
  • No cancellation fee

Reasons to avoid

  • At least a two-year contract
  • Monthly volume limit
  • Lengthy application process
  • Lacks 24/7 support

Visit PaymentCloud

Authorize.net logo

Authorize.net

Best Comprehensive Payment Toolkit

Features

  • Advanced Fraud Detection Suite (AFDS)
  • Customer Information Manager (CIM)
  • eCheck payments

Pricing Structure
Monthly fee + flat-rate

Integrations
API

Compliance & Security
AFDS, PCI DSS compliant

Read More

Since 1996, Authorize.net has been simplifying transaction processing for merchants to receive payments via electronic, online, or credit card means. The company is trusted by over 440,000 merchants owing to its easy ways of streamlining payment processing that helps optimize their cash flow.

Authorize.net or Authnet offer a payment gateway and payment processing option. As a payment gateway, you can select your own merchant service while the latter option offers a flat-rate pricing structure. Either way, you pay the monthly $25 gateway fee.

Based on our criteria, we gave Authnet high marks because of its robust payment toolkit and security features. While those factors make it a top choice for most businesses with online stores, there are a few concerns about held funds. We’ve also seen this with other tools including PaymentCloud and Amazon Pay — this may not be directly attributed to Authnet.

You can process international payments in any way that works for your business, and customers can pay via credit or debit cards, digital wallets like Apple Pay or PayPal, and eChecks. A modern API helps you integrate Authorize.net with other tools and even add a Buy Now button for one-time payments.

  • Who is Authorize.net best for?
    Authorize.net is suitable for businesses with existing merchant accounts, but you can always set up a new account and start accepting payments online anytime, anywhere.
  • Recent upgrades to Authorize.net
    Authorize.net occasionally announces updates to its platforms. A few recent changes include digital invoicing and eChecks for faster payments, a partnership with Chase for customers to take payments seamlessly on your site or phone and get paid faster, and being listed as part of Shopify’s supported U.S. payment gateways.
  • Authorize.net pricing & transaction fees
    Authorize.net offers two pricing plans. An all-in-one option includes a merchant account and payment gateway. If you have an existing merchant account, the payment gateway only plan is good for you, but you’ll still pay the monthly $25 gateway fee, no matter how much you use the service.

    And if you sell occasionally, you’re better off adding Amazon Pay to your store. Merchants without existing accounts can settle for the all-in-one option, which also has a $25 monthly gateway fee along with a 2.9% plus 30-cent fee per transaction.

Reasons to choose Authorize.net

  • No contract, setup fee, or early termination fee
  • Works with PaymentCloud and Shopify
  • Customers can save payment info
  • Strong security suite

Reasons to avoid

  • Charges monthly gateway fee
  • Doesn’t work in U.K. & Europe
  • Separate merchant account required

Visit Authorize.net

PayPal logo

PayPal

Most Widely Used

Features

  • Multiple payment options
  • Buyer and seller protection
  • Easy integrations

Pricing Structure
Flat-rate

Integrations
Works with ecommerce platforms, marketplaces, accounting systems, and more

Compliance & Security
PCI DSS, buyer and seller protection, PayPal Security key, fraud detection, key pinning, data encryption, email payment confirmation, TLS and secure HTTPS

Read More

PayPal is one of the most popular online payment services, with about 429 million users worldwide. Business owners readily add PayPal to their websites and online stores because customers trust it. And it offers easy payment options, including crypto and Venmo, and protection for both buyers and sellers while transacting online.

PayPal order summary

PayPal is trusted by small business users as it lets them accept and process payments online. The service integrates with multiple apps, including e-commerce and accounting, making it a great choice for online transactions.

While it works for domestic and international SMBs, I highly recommend it for freelancers or solopreneurs, and businesses with occasional/seasonal sales. What I like about PayPal is its name recognition and the trust consumers associate with it, which gives businesses higher chances of closing sales online.

  • Who is PayPal best for?
    We recommend PayPal for startups and small businesses handling low-volume transactions. I found its application and setup process, ease of use, and processing fees geared towards such businesses requiring quick setup and reasonable transaction processing fees.
  • Recent upgrades to PayPal
    PayPal proposed a $2,500 fine on merchants for spreading misinformation through its Acceptable Use Policy. But the company had to pull the “erroneously released” update after severe social media backlash.
  • PayPal pricing & transaction fees
    PayPal fees vary based on the payment method. For instance, the online card payment fee for domestic card payments is 3.49% plus 49 cents per transaction while international card payments pay an additional 1.50% per transaction. These fees are added to extra costs like the $20 charge-back, instant transfer fees, and more.

Reasons to choose PayPal

  • Offers protection for buyers and merchants
  • Works in multiple countries
  • Ideal for new businesses or those with fairly low transaction volumes

Reasons to avoid

  • Costly for high-volume businesses
  • Extra fees for international card payments
  • Applies payment holds for new & dormant accounts

Visit PayPal

Compare Payment Processing Platforms

Payment Processing System

Best Features

Transaction Fees

Square logo

Square

Best Overall

  • Intuitive dashboard
  • Integration with third-party tools
  • Social commerce (Facebook, Instagram)

2.9% + $0.30

Shopify logo

Shopify

Best for Ecommerce

  • Transparent transaction fees
  • Strong security and analytics
  • Complete ecommerce solution

No fees for Shopify Payments, 0.5% to 2% for other processors

Stripe logo

Stripe

Best for Startups

  • Stripe Connect
  • Flat-rate, pay-as-you-go pricing model
  • Customizable interface & reporting tools

2.9% + $0.30

Stax logo

Stax

Best Subscription-Based Pricing

  • Surcharge-free payment options
  • Subscription-based pricing
  • Integration with accounting software

$99+ per month + interchange rates

Helcim logo

Helcim

Best for Fast-Growth Businesses

  • Automatic volume-based discount pricing
  • Detailed merchant & business statements
  • Customer-facing portal for subscriptions

0.30% + $0.08 (and up)

Amazon Pay

Amazon Pay

Best for Voice Commerce

  • Recurring payments/checkout
  • Seamless checkout
  • Voice commerce

2.9% + $0.30

Clover logo

Clover

Best for Established Businesses

  • 30-day free trial
  • Integration with tons of software
  • Online portal and recurring payment options

From 2.9% + $0.30

PaymentCloud logo

PaymentCloud

Best for High-Risk Businesses

  • Supports high-risk businesses
  • Quick merchant approvals and setup
  • Dozens of integrations

From 2.9% + $0.30

Authorize.net logo

Authorize.net

Best Comprehensive Payment Toolkit

  • Advanced Fraud Detection Suite (AFDS)
  • Customer Information Manager (CIM)
  • eCheck payments

$25 per month & 2.9% + $0.30

PayPal logo

PayPal

Most Widely Used

  • Multiple payment options
  • Buyer and seller protection
  • Easy integrations

From 2.59% + $0.49

What You Need to Know

How can I reduce the risks of accepting online payments?

Some of the ways to accept online payments safely include confirming the shipping and billing addresses match, researching your credit card processor’s PCI compliance, taking security precautions with your e-commerce website, and ensuring your staff is familiar with fraud. Some common issues include viruses, worms, spamming, Trojans, phishing, pharming, denial-of-service attacks, transaction poisoning, and more.

What are some requirements for safe electronic payment transactions?

Online payment systems need to be reliable, available, and confidential, as well as exhibiting integrity and authorization.

What are the basic steps of payment processing?

First, the customer chooses a payment method at checkout, which is encrypted via a payment gateway and sent to the payment processor. Next, the sale is authorized. Finally, the transaction is approved by the customer’s bank, card issuer, or digital wallet.

What’s the difference between a payment provider and a payment gateway?

A payment provider facilitates the customer’s transaction. But a payment gateway sends the message regarding the approval or decline of transactions between you and your customers.

What are the advantages of online payments?

Electronic payments can lead to an increase in sales and the speed of transactions, plus customers like the better deals they find and how instant receipts are.

What are the disadvantages of accepting online payments?

Customers may have to pay a service or convenience fee; there is a risk of theft by cybercriminals; technical issues can get in the way, and it may be hard to connect to online systems in remote locations.

How We Review Payment Processing Systems

I rated online payment processing service providers based on transaction costs, pricing structure, customer support, integrations, payment and customization options, and security and compliance. Whether starting a new venture from the ground up or expanding your brick-and-mortar business to accept online payments, consider these key factors so you’re fully equipped to meet your customers’ needs.

  • Transaction costs: What are the overall costs of the processing service, including setup costs and transaction fees?
  • Pricing structure: Whatpricing structures or models exist? What are the differences between flat-rate, tiered, and subscription?
  • Customer support: Which processors providestrong merchant support for quicker issue resolution?
  • Payment, integration, and customization options: Which processors supportvarious payment methods and currencies? Which have modern APIs and software development kits (SDKs) for fast, seamless integration with existing business apps? What level of customization is available?
  • Security and compliance: Are online payments secure and compliant with industry security standards to protect customers against card fraud and data breaches?

As I evaluated the best online payment processing services, I considered secure, reliable options compliant with applicable security and safety regulations in the industry or country I’d want to work with. I also checked whether the provider supports tokenization to avoid handling customers’ sensitive payment data directly, along with anti-fraud and charge-back prevention controls.

Learn more about our review methodology.

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