You have decided to start an e-commerce business, sell on Shopify, or create a course, but you will need a way to “get that money,” literally. Payment processors are the vehicles that help get your payments to you. There are so many to choose from, so I’ve outlined several below to help you get started with your decision-making process by exploring which options are best for you and your business needs. Select the best payment processor for you by asking yourself some basic questions and then determining which one is right for you.
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Do a few minutes of research on the best payment processors to use for your e-commerce business. You will want to work with a company that charges competitive rates, offers good customer support, and helps with chargebacks so that you aren’t just automatically charged back when a complaint happens. A payment processor ought to be fair for both the merchant and the customer, so make sure to think it through before choosing which option is right for you.
The Payment Processors and What They Offer:
- Stripe:
- Known for its developer-friendly API and flexibility.
- Supports over 135 currencies, making Stripe suitable for international purchases.
- Offers a wide range of features, including subscription billing and fraud prevention. Subscription billing enables you to offer a monthly subscription to services and is great for online courses or memberships.
Strips is user friendly, has easy integration, and is simple to customize (for checkout).
Fees:
| Flat Rate per (Successful) Charge | 2.9% + $0.30 |
- PayPal:
- A widely recognized and trusted name in online payments.
- Offers various integration options, including PayPal Checkout.
- Supports international transactions and multiple currencies for ease of use anywhere in the world.
Fees: Standard rate for receiving domestic transactions
| Payment Type | Rate |
| Alternative Payment Method (APM) | APM Transaction Rates Apply |
| PayPal Checkout | 3.49% + fixed fee |
| PayPal Guest Checkout | 3.49% + fixed fee |
| QR Code Transactions | 2.29% + fixed fee |
| QR Code Transactions Through Third Party Integrator | 2.29% + $0.09 |
| Pay with Venmo | 3.49% + fixed fee |
| Send/Receive Money for Goods and Services | 2.99% |
| Standard Credit and Debit Card Payments | 2.99% + fixed fee |
| All Other Commercial Transactions International Transactions – All Commercial Transactions 1.50% | 3.49% + fixed fee |
PayPal is a widely known processor, but they are also widely known for taking the customer’s side for complaints meaning it’s hard to fight chargebacks. There are also many stories of merchants having their funds tied up for months while PayPal decides if you are justified.
- Square:
- Ideal for small and medium-sized businesses.
- Square provides a range of hardware and software solutions for in-store and online payments.
- Transparent pricing with no monthly fees.
Fees: All per transaction
| In Person | 2.6% + $0.10 |
| Online | 2.9% + $0.30 |
| Invoices | 3.3% + $0.30 |
| Manually Entered | 3.5% + $0.15 |
Payments are processed instantly, and Square only charges for what is earned (not monthly, as noted above); the con is that they lack customer phone support.
- Authorize.Net:
- Offers robust security features and fraud detection tools.
- Suitable for businesses of all sizes, particularly in the United States.
- Multiple payment options and integrations.
Fees:
| Monthly Fee | $25 |
| Transaction Fee (per transaction) | $0.10 |
| Daily Batch Fee (if you have a merchant account set up already – if not, it is per transaction, 2.9% + $0.30) | $0.10 |
Authorize.net offers 24/7 customer support, and payments are received quickly.
- Braintree (owned by PayPal):
- Known for its ease of integration and support for mobile payments.
- Offers advanced fraud protection and tokenization for security.
- Suitable for businesses that want a seamless checkout experience.
FEES:
| Per Transaction | 2.59% + $0.49 |
| Per Transaction for Verified Charitable 501(c)(3) Organizations | 1.99% + $0.49 |
| Non-USD Currency Transaction Fees | Add 1% |
| Customer Card Issued Outside of US | Add 1% |
| Chargeback Fees | $15 Per Chargeback |
| Venmo | 3.49% + $0.49 Per Transaction |
| ACH | 0.75% Per Transaction |
Some highlights we found were flat rate pricing, diverse payment methods, and global reach. Braintree offers cheaper rates for international payment processing and ACH payments than PayPal. It also offers a sweet discount for non-profit organizations.
- Adyen:
- Provides a global payment platform for businesses to expand internationally.
- Supports various payment methods and currencies.
- Offers data analytics to optimize payment processes.
Fees:
| Per Transaction, Fixed Processing Fee + Fee Determined by the Payment Method | $0.11 Per Transaction (Plus the Fee Assessed by the Credit Card Processor) |
Onboarding is easy and fully customizable.
- 2Checkout (now Verifone):
- Focuses on global e-commerce and subscription billing.
- Supports 87 currencies and over 45 payment methods.
- User-friendly interface and robust reporting tools.
Fees:
| 2Sell Plan | Starts at 3.5% + $0.35 (Online Payments) |
| 2Subscribe Plan | 4.5% + $0.45 (Online Payments) |
**NOTE: Does not offer processing for in-person payments. No monthly fee**
- Worldpay (now FIS Worldpay):
- Offers a comprehensive suite of payment processing solutions.
- Suitable for businesses with high transaction volumes.
- Provides multi-currency support and fraud prevention.
Fees:
| Transaction Fees | 0.75% to 2.75% (Depending on Whether You Pay Monthly or Pay-As-You-Go and Whether It’s a Credit Card or Debit Card Payment) |
| Retail Merchant Services (Cheapest Fees) | 0.4% to 0.79% |
| Dojo & Barclaycard (flat transaction fees) | 1.4% and 1.60% |
**No set-up fees**
To us, they seemed better suited for selling software subscriptions.
- Shopify Payments:
- Integrated with the Shopify e-commerce platform.
- Simplifies the payment process for Shopify store owners.
- Offers competitive transaction fees and no setup fees.
Fees:
| Basic (Individuals and Small Businesses) | $39/mo (CC rates 2.9% + $0.30 Online, 2.7% Flat In-Person) |
| Shopify (Small Businesses) | $105/mo (CC Rates 2.6% + $0.30 Online, 2.5% Flat In-Person) |
| Advanced (Medium to Large Businesses) | $399/mo (CC rates 2.4% + $0.30 Online, 2.4% Flat In-Person) |
- Skrill:
- Known for its low-cost international money transfers.
- Offers a secure and convenient payment gateway for online businesses.
- Supports multiple payment methods and languages.
Fees:
| Business Fees | You can open the account for free, but I am not finding a whole lot of info beyond that as far as fees/pricing. |
| (Consumer Fee) Deposit Funds | Free |
| (Consumer Fee) Withdraw Funds | $5.50 |
| (Consumer Fee) Send and Receive Money | Free |
| (Consumer Fee) First Skrill Visa® Prepaid Card Application | $10.00 |
| (Consumer Fee) Service Fee | Your Skrill Account is free for personal use as long as you log in or make a transaction at least every 12 months. If you don’t do this, a service fee of $5.00 USD(or equivalent) will be deducted monthly from the funds in your account. Foreign Exchange Fee: up to 3.99% |
When I was researching, I did find a few others that are recommended for e-commerce.
The lesser-known processors and what they offer
- Stax: Best for high-value transactions with 0% markup processing with no hidden fees (small business plans start at $99/month).
- Helcim: Best for high-volume sellers, lower processing rates for small biz, but we could not find an actual price breakdown.
- PayJunction: Great customer service.
- Elavon: Compatible with many top e-commerce platforms like WooCommerce, BigCommerce, Ultra Cart, and CubeCart. Operates in over 36 countries. No pricing is published online; you have to contact them.
- Payline: Connect their gateway’s flexible API directly to your shopping cart or have a hosted payments page.
- CyberSource: 106+ countries, fraud solutions, 24/7 support; pricing isn’t clearly listed.
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Do your own thorough research to determine which processors will be right for you. They are not all the same, and each one focuses on different types of payments. Think of your products and services and then what sort of payments you expect to receive and in what volume to determine which payment processor is right for your needs. Here’s hoping you find your perfect payment processor partnership! Subscribe for more business posts. Have a lovely day.
