Payment gateways are just one of the merchant services that are necessary for businesses to verify whether an electronic payment is legitimate.
For in-person sales, your point-of-sale (POS) system’s card reader acts as the payment gateway. To support online transactions, e-commerce platforms often have built-in payment gateways or integrate with third-party solutions. This roundup focuses on online payment gateways.
A payment gateway is the technology that allows businesses to securely accept electronic payments, like credit and debit cards, both in person and online. The platform reads, encrypts and transmits customers’ card data to payment processors so that transactions can be completed.
Many times, credit card processing companies offer payment gateways as part of a bundled service. If you already use a physical POS system or have an e-commerce site, going with an in-house, integrated solution is typically your most convenient option. Other factors to consider include overall costs and customizability.
Here are our picks for the best payment gateways.
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Our pick for
If you also have a storefront
Square is known for its in-store POS systems, but it can help businesses accept online transactions, too. Plans come with a free online store that automatically syncs e-commerce sales up with your POS system. And if your business has its own app, you can integrate Square’s payment gateway into it to securely accept transactions.
Square
5.0
NerdWallet rating
on Square's secure website
Monthly fee
$0.00
Starts at $0/month for unlimited devices and locations.
Square’s easy-to-use tools enable business owners to have a professional online presence without specialized tech skills. For example, Square’s Payments API lets you take payments on sites built using Wix, WooCommerce and similar services without the need to code, just by logging in to your Square account on your site’s settings page. If you’d like, you can build a site for free using Square as a host. (Some features, like a custom domain name, cost extra.)
Read full review
Pros
Ability to use Square to build a website from scratch, or use Square Checkout as the payment page for your existing site.
Transparent pricing structure with no contract or cancellation fees.
Square also supports in-person sales with its capable POS system.
Cons
Limited options for international payments.
If you don’t use Square or other supported ecommerce sites to host your website, Square likely won’t work for you.
Read full review
Our pick for
Interchange-plus pricing for businesses of all sizes
Lots of the options here use flat-rate pricing, which is easy to understand but not the most cost-effective option. Helcim’s interchange-plus model directly passes interchange rates to the merchant, along with a consistent margin. That way, you can save when customers pay with cards that have lower interchange rates.
Helcim
5.0
NerdWallet rating
on Helcim's secure website
Monthly fee
$0.00
Businesses with limited monthly volume benefit from Helcim’s no-minimum interchange plus pricing. Larger businesses can take advantage of the pricing tiers Helcim offers, which get cheaper as you do more business, beginning at $50,000 per month.
Read full review
Pros
Helcim’s payment page creator forgoes complex code and instead lets you select the payment elements you want.
No contract or monthly fee.
Helcim’s margin on each transaction goes down as you reach higher monthly sales, beginning at $50,000 per month.
Cons
Interchange-plus pricing can benefit merchants, but it’s harder to predict.
You’ll need at least $50,000 in monthly card sales before you can take advantage of Helcim’s better rates.
Read full review
Our pick for
Overall payment gateway
Stripe offers online checkout options for business owners with developer experience as well as those who want an out-of-the-box, no-coding-needed solution. Since it specializes in processing online transactions, it’s straightforward and accommodates a variety of currencies, too.
Stripe
5.0
NerdWallet rating
on Stripe Payments' secure website
Monthly fee
$0.00
Stripe has built its product around maximum customizability, giving developers the tools to build a payment experience that meets the specific needs of a website, app or service. For those who want a low-tech option, Stripe Checkout has prebuilt checkout pages that don't require a high level of technical expertise to use.
Read full review
Pros
Flat-rate, transparent pricing with no setup, cancellation or monthly fees.
Supports a wide variety of payment methods and currencies.
Customer-friendly design.
Highly customizable checkout flow.
Cons
Stripe’s best features require a developer to implement fully.
Limited functionality for in-person retail businesses and restaurants.
Read full review
Our pick for
A built-in banking partner
Chase Payment Solutions lets businesses accept online transactions on their websites through Authorize.net or via payment links. But the real plus is the fact that you can open a business checking account through the provider and simplify the deposit process.
Chase Payment Solutions℠
4.5
NerdWallet rating
on Chase Payment Solutions℠'s secure website
Monthly fee
$0.00
Monthly fee in some instances.
This service from Chase uses Authorize.net and offers competitive flat-rate pricing. You’ll get your money the next business day, which is faster than the two-day norm with many other processors, provided you use a Chase business checking account.
Read full review
Pros
On the cheaper end of flat-rate prices available.
Next-day payouts available.
Cons
Requires use of Chase checking for quickest deposits — not a bad thing, unless you’d prefer to bank elsewhere.
Unclear pricing.
Read full review
Our pick for
Payment processor integrations
The Payflow payment gateway can be integrated into a variety of payment processing platforms and shopping carts and allows your business to accept PayPal payments, in addition to major credit and debit cards.
PayPal Payflow
Monthly fee
$0.00
for Payflow Link; $25 Payflow Pro.
There’s not much PayPal doesn’t do. It offers in-house payment processing and payment gateway-only options that integrate with third-party shopping carts and payment processors. It’s a leader in developing and accepting payments in innovative ways, including through subsidiary Venmo, QR codes, payment links and buy-now-pay-later financing. It’s tough to find another company that does this much under one roof.
Read full review
Pros
PayPal develops different ways for consumers to pay, including Venmo and its own service for buy now, pay later.
One of the most commonly used payment processing platforms.
Easy to use and integrate with website hosts and shopping carts.
Transparent fixed fees in 25 currencies.
Cons
PayPal’s offerings are vast and can be difficult to grasp quickly.
Payment processing can be expensive for small purchases.
Not ideal for high-risk or high-volume businesses.
Read full review
Our pick for
Omnichannel option
Lots of payment gateway providers accommodate both in-person and online transactions, but Adyen takes it a step further by giving your business’s customers the option to buy online and return in-store or vice versa. Ultimately, this can help you build a seamless shopping experience across platforms.
Adyen
4.0
NerdWallet rating
Payment processing fees
0.6% + $0.13
Plus interchange for Visa and Mastercard; 3.3% + $0.23 for AmEx.
Monthly fee
$0.00
Adyen offers low prices and doesn’t have any monthly fees. It also offers support for in-person payments. If you’re an omnichannel merchant, Adyen has tools that connect your sales data, wherever you sell.
Read full review
Pros
No monthly, setup, integration or closure fees.
Payments accepted across online, in-store and app payment channels.
Global payment options available.
24/7 customer support.
Cons
Complex pricing model.
Monthly minimums might exclude some small businesses. Minimums vary and require contacting Adyen to learn more.
Read full review
Our pick for
More complex payment needs
Larger, more complex businesses might already have their own individual merchant account or want to apply for one, as opposed to subscribing to a payment service provider, like Square or Stripe, that use aggregated merchant accounts. Unlike many of its competitors, Authorize.net integrates with third-party merchant account providers so that your business can accept online payments.
Authorize.net
Payment processing fees
2.9% + $0.30
for All-in-One option.
Monthly fee
$25.00
Authorize.net, which is owned by Visa, gives flexibility to businesses that might be stymied elsewhere. For example, it lets you work with other merchant account providers, provides high-risk accounts, and, if you are a U.S.-based business, enables you to accept payments from anywhere in the world.
Read full review
Pros
You can use Authorize.net with a wide range of merchant account providers.
Transparent, flat-rate pricing.
No contracts or early termination fees.
24/7 customer support through phone, chat or online form.
Cons
You’ll pay a $25 monthly fee regardless of usage.
Authorize.net doesn’t have a robust point-of-sale system for in-person transactions.
Signing up directly through Authorize.net may be more expensive than going through your merchant services provider.
Merchant account isn’t directly with Authorize.net.
Read full review
Our pick for
Accepting a variety of payment types
Similarly to PayPal Payflow, PayPal Braintree’s payment gateway lets businesses accept PayPal, Venmo and Apple Pay payments in addition to the standard credit and debit cards. The platform can integrate with outside merchant account providers, but it costs extra.
PayPal Braintree
4.0
NerdWallet rating
Payment processing fees
2.59% + $0.49
credit & debit cards and digital wallets; 3.49% + 49¢ Venmo (U.S. only).
Monthly fee
$0.00
Braintree, which is owned by PayPal, rivals Stripe from a customization standpoint. But unlike Stripe, Braintree allows customers to pay with PayPal and Venmo, another PayPal-owned entity — so you get those options plus the ones Stripe offers (Apple Pay, Google Pay, etc.) all via one gateway.
Read full review
Pros
Transparent, competitive pricing.
No contracts or early termination fees.
No monthly, PCI compliance or minimum transaction fees.
Accepts PayPal and Venmo in addition to credit and debit cards.
Simple checkout page that looks good on web and mobile.
Cons
Requires web development.
Not suited for brick and mortar stores.
Read full review
Our picks for the best payment gateways
Stripe
Best overall payment gateway
Why we like it: Stripe has built its payments product around maximum customizability: Its open API and advanced developer tools allow your business to build a payment experience that meets your specific needs — as long as you or someone on your team knows how to use them. For those who want a low-tech option, Stripe Checkout has prebuilt checkout pages that don't require a high level of technical expertise to use. Read our full Stripe Payments review.
$0 for standard Stripe Connect.
$2 per account for Stripe Express (for marketplaces) or Stripe Custom (the white-label option that allows businesses to customize the checkout process).
2.7% plus 5 cents for in-person transactions.
2.9% plus 30 cents for online transactions.
3.4% plus 30 cents for manually keyed transactions.
4.4% plus 30 cents for international card transactions.
Adyen
Best omnichannel option
Why we like it: Adyen offers low prices and doesn’t have any monthly fees. It also offers support for in-person payments. If you’re an omnichannel merchant, Adyen has tools that connect your sales data, wherever you sell — including online, in person and via app or marketplace. Read our full Adyen review.
Free.
Interchange plus 0.60% and 13 cents per transaction for Visa and Mastercard.
3.3% plus 23 cents for American Express.
3%-12% plus 13 cents for other payment methods, depending on transaction type.
40 cents per transaction for ACH direct payment.
Helcim
Best interchange-plus pricing for businesses of all sizes
Why we like it: Helcim's payment gateway API can integrate with a shopping cart, billing system or compatible third-party software. Businesses with limited monthly volume benefit from Helcim’s no-minimum, interchange-plus pricing, while larger businesses can take advantage of the pricing tiers Helcim offers, which get cheaper the more you process. Read our full Helcim review.
Free.
Interchange plus 0.4% and 8 cents per in-person transaction (if $50,000 or less in monthly card transactions).
Interchange plus 0.5% and 25 cents per online or manually keyed transaction (if $50,000 or less in monthly card transactions).
0.5% plus 25 cents for ACH payments.
PayPal Payflow
Best for payment processor integrations
Why we like it: PayPal offers in-house payment processing and payment gateway-only options that integrate with third-party shopping carts and payment processors. It’s a leader in developing and accepting payments in innovative ways, including through subsidiary Venmo, QR codes, payment links and buy now, pay later financing. Read our full PayPal review.
$0 for Payflow Link.
$25 for Payflow Pro.
10 cents per transaction if you aren’t using PayPal as your processor, plus applicable payment processing fees.
Here are PayPal’s payment processing fees:
2.29% plus 9 cents for in-person credit card, debit card and QR code payments.
2.89% plus 49 cents for online credit and debit card payments.
3.49% plus 49 cents for PayPal Payments transactions (PayPal, Pay Later, Pay with Rewards, Venmo).
» MORE: See our full rundown of PayPal's fees
Square
Best if you also have a storefront
Why we like it: Square’s easy-to-use tools enable business owners to have a professional online presence without specialized tech skills. Square’s Payments API lets you take payments on third-party sites, or you can build a site for free using Square as a host. Its robust POS hardware options make it a strong option for in-person sellers as well. Read our full Square review.
$0 for Square POS, Restaurant, Retail and Appointments Free plans.
$29 for Square Appointments Plus plan.
$60 for Square Restaurant Plus plan.
$69 for Square Appointments Premium plan.
$89 for Square Retail Plus plan.
Custom pricing for Square Retail and Square Restaurant Premium plans.
2.6% plus 10 cents for in-person transactions.
2.9% plus 30 cents for online transactions.
3.5% plus 15 cents for manually keyed transactions.
3.3% plus 30 cents for invoices.
Braintree
Best for accepting a variety of payment types
Why we like it: Braintree, which is owned by PayPal, rivals Stripe from a customization standpoint. But unlike Stripe, Braintree allows customers to pay with PayPal and Venmo, another PayPal-owned entity — so you get those options plus the ones Stripe offers (Apple Pay, Google Pay, etc.) all via one gateway. Read our full Braintree review.
$0 if you use Braintree for a merchant account and a payment gateway.
$49 per month plus 10 cents per transaction if you use Braintree as a payment gateway only.
2.59% plus 49 cents per transaction for credit cards, debit cards and digital wallets.
3.49% plus 49 cents for Venmo (U.S. only).
0.75% for ACH (maximum fee of $5). Discounts available for enterprise businesses.
Chase Payment Solutions
Best for a built-in banking partner
Why we like it: Chase Payment Solutions uses Authorize.net as its payment gateway and offers competitive flat-rate pricing. You’ll get your money the next business day, which is faster than the two-day norm with many other processors, provided you use a Chase business checking account. Read our full Chase Payment Solutions review.
Monthly fee in some instances.
2.6% plus 10 cents for in-person transactions.
2.9% plus 25 cents for online transactions.
3.5% plus 10 cents for keyed transactions.
Authorize.net
Best for more complex payment needs
Why we like it: Authorize.net, which is owned by Visa, gives flexibility to businesses that might otherwise have difficulty finding a payment gateway. For example, it lets you work with other merchant account providers, provides high-risk accounts, and, if you are a U.S.-based business, enables you to accept payments from anywhere in the world. Read our full Authorize.net review.
$25 per month.
2.9% plus 30 cents per transaction for a merchant account plus a gateway.
10 cents per transaction plus 10 cent daily batch fee for a payment gateway only.
How do payment gateways work?
To kick off the payment process, a customer either taps, dips or swipes their card using the business’s POS hardware in person or manually enters their card information in an online checkout portal. The payment gateway captures that card data, encrypts it and electronically delivers it to the business’s payment processor. From there, information gets passed between the processor, the issuing and acquiring banks and the card network. Here’s a closer look at the process:
AuthorizationAfter the card information travels through the payment gateway, the payment processor communicates a payment authorization request to the customer’s card network and, ultimately, the issuing bank to make sure the customer has enough funds to cover their purchase.
AuthenticationThe issuing bank makes sure the transaction isn’t fraudulent and that the cardholder is being truthful about their identity. Some authentication processes may also require the customer to input their zip code or card verification value (CVV). Once the issuing bank approves or denies the transaction, the payment processor passes the decision to the payment gateway, which notifies the customer and/or business.
Settlement This last step involves the transfer of funds from the issuing bank to the acquiring bank and, finally, to the business’s account after the transaction is approved. Unlike the earlier steps, the transfer of funds doesn’t happen immediately. It can take anywhere from a few hours to a few days for that money to be available for the business to use.
How we choose the best payment gateways
NerdWallet selects the best payment gateways by evaluating their scores in more than 10 categories, including the following:
Payment processing rates.
Pricing transparency.
POS features.
Deposit timing.
Contract length.
Integrations.
The majority of our picks receive a 4-star rating or higher and offer additional merchant services, like payment processing.
What’s the difference between a payment gateway and payment processor?
Processing transactions involves a handful of parties including a payment gateway, payment processor, payment networks, the customer’s card-issuing bank and the business’s acquiring bank. Though they’re both involved in the process and often bundled under the same provider, payment gateways and payment processors play different roles.
After a customer taps their credit card to a reader or manually enters their card information online, the payment gateway encrypts and communicates that payment information to the payment processor. From there, the processor verifies that the transaction is legitimate and that there’s enough money in the customer’s bank account to make the purchase. After communicating the approval to the payment gateway, the payment processor then facilitates the transfer of funds from the customer’s issuing bank to the business’s acquiring bank.
Learn more about payment gateways vs. payment processors
Payment gateways kick off the card authentication process and processing companies take it from there.
» MORE:The difference between payment gateways and payment processors
Does your business need a payment gateway?
All businesses accepting card transactions need some sort of payment gateway, but they aren’t always advertised as stand-alone products. For businesses accepting in-person transactions, the credit card terminal or reader acts as the payment gateway. It’s what the customer interacts with to pass along their credit card information and complete their purchase.
For businesses accepting online transactions, payment gateways are often built right into e-commerce sites and shopping carts as part of a bundled payments service. If you built your website from scratch, however, you may need to integrate it with a stand-alone payment gateway that you can customize to match your brand.
Determining the best payment gateway for your small business
The best payment gateway depends on the specific needs of your business. You’ll want to take into account the payment gateway’s total cost, which will include the monthly fee, transaction fees and any additional fees. Also important to consider are factors such as your business’ transaction volume, whether you require a full POS system and how much coding knowledge is needed to integrate and customize the gateway.
Payment gateway costs
The cost of using a payment gateway is generally broken down into two main components:
Monthly fees. This is like your Netflix subscription — you pay the same amount every month in exchange for access to the service. Not all gateways charge a monthly fee.
Transaction fees. You’re charged every time a customer buys something online.
Some companies have additional costs, like PCI compliance fees or setup fees. Our top picks generally don’t charge these additional fees. If you're trying to keep costs down, see NerdWallet's selections for cheapest payment gateways for more options.
Pricing models
If you’re using a payment gateway that offers payment processing services, you’ll have to choose between flat-rate pricing, which is consistent, and interchange-plus pricing, which is variable.
Flat-rate: For new or seasonal businesses or for those that process less than about $5,000 a month, a flat-rate pricing model, like Square or PayPal uses, may make more sense. Flat-rate pricing is more expensive per transaction than interchange-plus pricing, but providers that use this pricing model often don’t charge a monthly fee. This pricing model also makes it easier to predict and forecast transaction costs because the fees are less variable over time than with interchange-plus pricing. Flat-rate pricing is usually found with payment service providers, which make setting up an account easy.
Interchange-plus: If you process more than about $5,000 a month and particularly if you value having more transparency into your processing fees, then an interchange-plus model like the one Adyen or Helcim uses could be a better fit for your business. You’ll need a merchant account, which takes a bit more effort to set up, but the savings can be worth the time and effort.
Technical expertise
Some gateways, like PayPal Payflow, allow for a high level of customization but require coding skills to make the most of the customizable features. Other gateways, like those from Stripe and Adyen, offer a simple copy/paste coding option or options with no coding at all for those who are less tech-savvy in addition to a more code-heavy option that requires development skills.
If you want to take advantage of a more advanced and customizable payment gateway option but don’t have the necessary coding expertise within your team, it’s possible to hire freelance development help to get up and running. Stripe, for example, partners with several agencies that offer this service.
Payment processing needs
Payment gateway providers might also offer point-of-sale systems for in-person transactions, multiple-location support and other related services. Unless you want to work with multiple payments companies, find a payment gateway that can address all of your current and future payments needs.
