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The Top 10 Online Payment Processing Services of 2023

Stripe Logo

Stripe

Best online payment processing service

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

Summary

  • Pricing structure
    Flat-rate
  • Customer support
    Online chat, phone, email
  • Integrations
    Works with over 135 consulting and technology partner services
  • Security and compliance
    PCI DSS Level 1, PSD2 and Strong Customer Authentication (SCA) compliant, SSAE18/SOC 1 type 1 and type 2, SSAE18/SOC 2 type 1 and type 2 reports, UK and EU e-money licenses

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.



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 online businesses (subscription, software, marketplaces) and large companies 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


Stripe offers Integrated and Customized plans. Transaction fees for its Integrated plan are 2.9% plus 30 cents per successful card charge, while the Customized plan is tailored for unique business models, high-value transactions, or large payments volume.

Pros and cons of Stripe

Pros

  • Good application program interface (API) customizations
  • No setup or monthly fees
  • Variety of payment methods and customer support options

Cons

  • It can have a steep learning curve
  • Flat-rate model is costlier with high sales volumes
    Shopify Logo

    Shopify

    Best for transparent transaction fees

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

    Summary

    • Pricing structure
      Flat rate depending on the plan
    • Customer support
      24/7 email, live chat, call support
    • Integrations
      Over 100 other payment providers globally
    • Security and compliance
      Level 1 PCI DSS compliant, two-step authentication, Transport Layer Security (TLS)

    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.



    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 e-commerce store, you won’t go wrong with Shopify Payments.


    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


    If you’re a Shopify store owner, there are no added transaction fees for orders processed via Shopify Payments, Shop Pay Installments, Shop Pay, and PayPal Express. However, you’ll pay transaction fees ranging from 2.4% plus 0 cents to 2.9% plus 30 cents per transaction. If you use third-party payment processors, an additional fee varies depending on your plan — Shopify Starter (5%), Shopify Basic (2%), Shopify (1%), and Shopify Advanced (0.5%).

    Pros and cons of Shopify

    Pros

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

    Cons

    • Not available in all countries
    • Requires monthly fee to use the service besides transaction and third-party gateway fees
    • Only stores using it as the primary gateway can process payments in their customers’ local currencies

    What customers are saying about Shopify

    Shopify is a fully-hosted platform that is easy to use and can be customized in various ways. It is fast, secure, and offers a quality app store and many themes. But it can be pricey, and many features are only available through a third party.

    Square Logo

    Square

    Best for social commerce

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

    Summary

    • Pricing structure
      Flat-rate
    • Customer support
      Phone, email, Square Communities Forum, and messaging within the app
    • Integrations
      Square Online integrates with popular marketing, inventory management, and shipping tools
    • Security and compliance
      Square Secure, PCI compliant, two-step verification, Risk Manager (detect fraud and prevent loss), and other industry-leading ISO 27001 certified measures

    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.



    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 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


    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.

    Pros and cons of Square

    Pros

    • No signup, charge-back, or hidden fees
    • Doesn’t lock you into any type of contracts
    • Free website hosting
    • Makes selling easy on Facebook and Instagram

    Cons

    • Doesn’t work with certain high-risk merchants
    • Costs can add up for large businesses with high volumes and transactions
    • Limited customization options
      Stax Logo

      Stax

      Best for subscription-based pricing

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

      Summary

      • Pricing structure
        Subscription-based; interchange processing rates
      • Customer support
        Phone, fax, online ticketing
      • Integrations
        Slack, QuickBooks, Xero, Wave, Mailchimp, Asana, Wrike, and other popular business apps to automate your workflow
      • Security and compliance
        Level 1 PCI Service Provider, end-to-end encryption and tokenization, TLS1.3, and GDPR compliance

      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.



      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


      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 large- volume transactions.

      Pros and cons of Stax

      Pros

      • Integrates with accounting tools
      • No markup on interchange rates
      • Subscription fees are inclusive of transaction processing
      • No hidden fees or contract cancellation charges

      Cons

      • Lengthy merchant application and setup process
      • High monthly subscription costs
      • Unsuitable for small businesses with low-volume sales
        Helcim Logo

        Helcim

        Best low-cost service for fast-growing businesses

        • Automatic volume-based discount pricing
        • Detailed merchant and business statements
        • Customer-facing portal for subscription management

        Summary

        • Pricing structure
          Interchange Plus
        • Customer support
          Phone, email, live chat/support assistant
        • Integrations
          Works with accounting software, shopping carts, and billing tools, including QuickBooks and e-commerce platforms
        • Security and compliance
          Firewalls and Intrusion Detection (IDS) and Intrusion Prevention Systems (IPS), regular data backups, PCI DSS and NIST compliant, multi-factor authentication, password protection, and 256-bit Advanced Encryption Standard (AES)

        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.



        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.


        Helcimpricing


        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.

        Pros and cons of Helcim

        Pros

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

        Cons

        • Strict account setup
        • Unsuitable for high-risk business types
        • Two-business-day deposits
          Amazon Logo

          Amazon

          Best for voice commerce

          • Recurring payments/checkout
          • Seamless checkout
          • Voice commerce

          Summary

          • Pricing structure
            Flat-rate
          • Customer support
            Live chat, online form, phone (toll-free line)
          • Integrations
            Works with website builders, e-commerce platforms, shopping carts, and marketplaces.
          • Security and compliance
            PCI DSS compliance, machine learning to identify risky attempters, and Card Verification Value (CVV), one-time passcode or biometric for user verification

          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 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


          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 pricing


          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.

          Pros and cons of Amazon

          Pros

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

          Cons

          • Long merchant account approval time
          • Can delay fund transfers for new merchant accounts
            Clover Logo

            Clover

            Best for established businesses

            • Integration with best-in-class apps and e-commerce platforms
            • 30-day free trial
            • Online portal and recurring payment options

            Summary

            • Pricing structure
              Flat-rate
            • Customer support
              Phone, email, live help on website
            • Integrations
              Works with multiple online store solutions, including WooCommerce, BigCommerce, Ecwid, and Shopify
            • Security and compliance
              End-to-end encryption; PCI compliant

            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.



            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.


            Cloverpricing


            You’ll pay monthly software fees and processing rates for each transaction and the following costs vary based on your business. The first 30 days are free, then fees start at $9.95. You’ll pay 2.9% plus 30 cents per transaction for payments taken virtually.


            For instance, retail businesses taking online payments will incur a 3.5% plus 10 cents per transaction fee, which can make Clover costlier than platforms with similar offerings like Square.

            Pros and cons of Clover

            Pros

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

            Cons

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

              PaymentCloud

              Best for high-risk businesses

              • Supports high-risk businesses
              • Multiple integrations with the latest and popular tools
              • Quick merchant approvals and setup

              Summary

              • Pricing structure
                Varies based on the type of business
              • Customer support
                Phone, online form
              • Integrations
                Works with popular e-commerce platforms
              • Security and compliance
                PCI DSS, Level 1 and 2 processing, encryption, AVStechnology, tokenization, and authentication protocols — Visa 3D Secure, Mastercard SecureCode, JCB International J/Secure, and American Express SafeKey

              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


              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.

              Pros and cons of PaymentCloud

              Pros

              • Works with high-risk businesses
              • Integrates with most e-commerce platforms
              • Quick approvals (up to 48 hours depending on account-related stipulations)
              • No cancellation fee

              Cons

              • Locks merchants in a contract of at least 2 years
              • Monthly volume limit
              • Lengthy application process
              • Lacks 24/7 support
                Authorize.net Logo

                Authorize.net

                Most robust payment toolkit

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

                Summary

                • Pricing structure
                  Flat-rate
                • Customer support
                  Chat, phone, online ticketing
                • Integrations
                  Works with other apps through API
                • Security and compliance
                  AFDS, PCI DSS compliant

                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.netpricing


                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.

                Pros and cons of Authorize.net

                Pros

                • No contract, setup fee, or early termination fee
                • Works with PaymentCloud and Shopify
                • Returning customers can pay without re-entering payment details
                • Strong security suite

                Cons

                • Charges monthly gateway fee
                • Doesn’t work for merchants in U.K. and Europe
                • Separate merchant account required to use the payment gateway
                • Automatic updates only for Visa and Mastercard card types
                  PayPal Logo

                  PayPal

                  Most widely used payment processing service

                  • Multiple payment options
                  • Buyer and seller protection
                  • Easy integration with popular e-commerce, accounting, and POS platforms

                  Summary

                  • Pricing structure
                    Flat-rate
                  • Customer support
                    Live chat, email, phone, text, resolution center, online community
                  • Integrations
                    Works with many popular e-commerce platforms, marketplaces, and accounting systems, among other tools
                  • Security and compliance
                    PCI DSS compliant, buyer and seller protection, PayPal Security key for logins, advanced fraud detection, key pinning, data encryption, email payment confirmation, TLS and secure HTTPS connections

                  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 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


                  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.

                  Pros and cons of PayPal

                  Pros

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

                  Cons

                  • May be costly for high-volume businesses
                  • Charges extra fees for international card payments
                  • Applies payment holds (especially for new or dormant accounts)

                    Compare the Best Online Payment Processing Services

                    ProvidersTransaction costsBest features
                    Stripe

                    Stripe Logo

                    Best online payment processing service

                    Why it’s best overall:

                    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.

                    2.9% plus 30 cents per successful card charge

                    See pricing

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

                    Shopify Logo

                    Best online payment processing service for transparent transaction fees

                    $0 if using Shopify Payments; third-party transaction fees apply (0% to 5%) depending on the plan, in addition to monthly subscription

                    See pricing

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

                    Square Logo

                    Best online payment processing service for social commerce

                    2.9% plus 30 cents per transaction

                    See pricing

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

                    Stax Logo

                    Best online payment processing service for subscription-based pricing

                    From $99, inclusive of transaction processing

                    See pricing

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

                    Helcim Logo

                    Best low-cost online payment processing service for fast-growing businesses

                    From 0.30% plus 8 cents per transaction

                    See pricing

                    • Automatic volume-based discount pricing
                    • Detailed merchant and business statements
                    • Customer-facing portal for subscription management
                    Amazon

                    Amazon Logo

                    Best online payment processing service for voice commerce

                    2.9% plus 30 cents per transaction

                    See pricing

                    • Recurring payments/checkout
                    • Seamless checkout
                    • Voice commerce
                    Clover

                    Clover Logo

                    Best online payment processing service for established businesses

                    From 2.9% plus 30 cents for payments taken virtually, 3.5% plus 10 cents for retail online transactions

                    See pricing

                    • Integration with best-in-class apps and e-commerce platforms
                    • 30-day free trial
                    • Online portal and recurring payment options
                    PaymentCloud

                    PaymentCloud Logo

                    Best online payment processing service for high-risk businesses

                    From 2.90% plus 30 cents; depends on pricing structure

                    See pricing

                    • Supports high-risk businesses
                    • Multiple integrations with the latest and popular tools
                    • Quick merchant approvals and setup
                    Authorize.net

                    Authorize.net Logo

                    Best online payment processing service for a robust payment toolkit 

                    2.9% plus 30 cents per transaction plus monthly fees $25

                    See pricing

                    • AFDS
                    • CIM
                    • eCheck payments
                    PayPal

                    PayPal Logo

                    Most widely used online payment processing service

                    3.49% plus $0.49 per transaction and 2.59% plus $0.49 per transaction for online credit and debit card payments

                    See pricing

                    • Multiple payment options
                    • Buyer and seller protection
                    • Easy integration with popular e-commerce, accounting, and POS platforms

                    What You Need To Know About Online Payment Processing Services

                    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 I Rated the Best Online Payment Processing Service Providers

                    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.