Another thing to consider is support for automatic recurring payments. If your business uses a subscription-based model, be sure your gateway partner can accommodate that. It also helps ensure your funds and all transaction information get sent to the right place. Swiping or dipping a credit card is a casual, automatic action for consumers. It seems like a straightforward process, but each card transaction involves multiple parties and actions going on behind the scenes.
A per transaction fee (like 2.9% + $0.30 in the chart above) means that if a customer pays you $100, the payment gateway will take $2.90 plus $.30 of that $100. Payment processors facilitate the transfer of payment data between card-issuing banks and acquiring banks to transfer funds to your merchant account. However, they would need the help of payment gateways to authorize the transaction and communicate with the other moving parts. Every payment gateway provider has its own fees and terms of use.
What is the cheapest payment gateway?
The payment gateway passes along the customer’s credit card information to the acquiring bank (i.e., the entity that processes payments on behalf of the merchant). They simplify the payment white label payment gateway process for your online store and help you receive payments faster. At the same time, your gateway shields your business from expired cards or accounts with insufficient credit.
Reduces the risk of information loss and identity theft by using fraud screening tools, including CVV , AVS , and 3-D Secure. It protects sensitive data and secures transactions with encryption protocols, and ensures compliance with the Payment Card Industry Data Security Standard (PCI-DSS). The card network informs the processor whether the request was approved or declined. Money is an independent, advertiser-supported website and may receive compensation for some links to products and services throughout this website.
Revolut has a score of 4.8/5 in our research and it is one of the most affordable mobile readers we looked at. Its transaction fees cost 1% +20p for in-person transactions and 0.8% +2p for in-person transactions. These guys might not offer a free payment gateway, but they come close. And, importantly, you can rely on them to provide secure payment services for your business. They focus on mobile ecommerce, platform-based payments, non-profits, and software as a service . If you’re searching for the right payment service provider to help you process payments, you have plenty of options.
The best payment gateways for online payments
Their subscription model is ideal for businesses that process a lot of transactions. There are three membership levels, with introductory prices ranging from $59 to $99 a month, plus $0.07 to $0.15 and the interchange fee per transaction. Each tier can process up to $125,000, $250,000 and $500,000 per year. Stax is a great solution for businesses with high sales volumes (over $5,000 per month) and growth-oriented enterprises.
Finally, payment gateways aren’t always known for their flexibility. Rigid systems may require reprogramming to meet your needs. That could be costly and potentially lock you into a service that limits your ability to scale.
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Our ratings take into account a product’s cost, features, ease of use, customer service and other category-specific attributes. It’s not surprising since your business does not receive a significant part of the income precisely for this reason. The source code would consume much more resources from the client than a white-label payment aggregator, though. But even in this case, the required resources are not comparable to the ones, needed to build a gateway from zero. For example, you’re able to identify buyer behavior and patterns, allowing you to tweak products and services appropriately.
- So, in the long term, Revolut is much cheaper because you’ll receive more money from each transaction.
- Our ratings consider factors such as transparent pricing, employee self-sufficiency, compatibility with third-party integrations, access to customer support and ratings.
- The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
- As soon as you land on the dashboard, you’ll realize that Stripe has depth.
- Interchange plus plans are more complicated to understand than flat-rate plans, and it makes the bank statement more difficult to understand.
At the same time, keep an eye on those terms and conditions, as outlined in our introduction. Fees can vary wildly from one payment gateway to another, so be sure to factor this in to your costings. Processing and interchange fees can add up, so be sure to allow for these. Choosing the best payment gateway to suit your business needs largely depends on what size your company is. If you’re a smaller outlet, or sole trader, it may not be necessary to have a powerful payment gateway setup.