Payment gateways are software and applications that route payments from the point of sale to the actual payment processors. They allow online sellers to offer secure means of payment through cards, online accounts, and digital wallets. The popularity of digital payment systems such as GPay, Apple Pay, and PayPal has driven the demand for safe and hassle-free online payment methods.
The best payment gateways for e-commerce stores in the U.S. are ranked on their ease of use, integrations, support, security, cost, payment types, and more. Here are our top 5 picks among the dozens of payment gateways for online businesses in the U.S.
1.Stripe
Stripe is an international payment service provider used by e-commerce merchants to facilitate online payment for their customers. It is perfect for e-commerce stores selling products to international customers. It accepts more than 135 currencies. Stripe is compatible with various pre-built e-commerce plugins for Drupal, Magento, WooCommerce, WordPress, and Shopware. It also has custom libraries in a majority of programming languages such as JavaScript, Ruby, Node.js, Java, and Python to integrate Stripe into the product.
Stripe payment pros & cons
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Supports currency conversion and a wide range of currencies and payment methods.
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Highly customizable checkout for e-commerce stores
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Easy to set up and good customer support
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Flat rate with no setup or cancellation costs
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It has a large library of apps and extensions to integrate with third-party tools.
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Fast payouts to a debit card (for a fee).
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The API and integration tools may be difficult to use without developer support
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Limited functionality for in-person retail businesses
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It processes payments from anywhere in the world. But it can be used by businesses from only 44 countries.
Stripe does not have any setup fee, monthly fee, or hidden fee. It charges 2.9% plus thirty cents as its processing fee for every transaction. It charges one percent extra for international cards and if currency conversion is required. It accepts various payment methods such as-
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Credit and debit cards- Visa, Mastercard, Maestro, American Express
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Digital wallets- Alipay, Apple Pay, Microsoft Pay, Click to Pay, WeChat Pay, and GPay.
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ACH debit and credit transfers, wire transfers
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Buy now, pay later options
Stripe supports point-of-sale (POS) payments for business owners needing to sync it with their online stores. The in-person card processing fee is 2.7% plus five cents per successful card transaction.
2.PayPal
PayPal is the most widely used payment method by both customers and merchants. It supports 100+ currencies allowing you to reach a wider customer base. Additionally, it supports a recurring payments facility making it suitable for businesses that deal in SaaS products/services.
It supports VISA, American Express, MasterCard, PayPal, Discover, PayPal Credit, and many more. It integrates with major e-commerce platforms such as Squarespace, BigCommerce, Shopify, and WooCommerce.
PayPal business account pros & cons
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Merchants can send invoices to customers through email for the services
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Recurring payments are easy to set up
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Extensive online and in-person payment solutions
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Additional merchant support features
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Secure payment for buyers because it doesn’t share sensitive content with sellers
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PayPal rewards when you link PayPal business account to your credit card
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The customer is redirected to PayPal for payment completion
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Small transactions can cost you higher fees
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Chargeback fees are high
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Money transfer from PayPal to your account can take up to three business days
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No protection for digital purchases
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Delay in refunds for disputed payments
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Popular target for phishing and scams
PayPal payment pricing for merchants:
Paypal charges processing fees depending on the payment methods.
| Payment Type | Processing fee |
| Standard Credit/Debit Cards | 2.99% + currency fee |
| Send/Receive money for goods/services | 2.89% + currency fee |
| QR code transactions (Above 10$) | 1.90% + currency fee |
| QR code transactions ($10 and below) | 2.40% + currency fee |
| QR code transactions through third-party integration | 2.29% + $0.09 |
For international transactions, an additional 1.50% fee applies if it is not American Express payments.
The chargeback fee is high for PayPal and may cost you up to $20 per transaction. PayPal doesn’t charge to process the refund. But the merchants do not get back their processing fee for the transaction.
The PayPal basic plan is free. But if you want to customize the checkout, send custom invoices, or connect with popular carts and platforms, you have to shell out $30 per month.
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3.Authorize.Net
Authorize.net is a popular payment gateway for e-commerce stores in the U.S. As a part of its services, it offers a simplified checkout system and support for automated recurring billing for a low monthly fee.
Authorize.net is available for store owners in the U.S., United Kingdom, Europe, Canada, and Australia. It supports Visa, Mastercard, Discover, American Express, JCB, PayPal, Apple Pay, and e-check payment types.
Its AuthNet API is PCI-compliant, mobile-optimized, and can be easily integrated into any application.
Authorize.net pros & cons
You will find many Shopify store builders in the Shopify App Store. Read the description and select an appropriate Shopify app. Check if it offers the following features:
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Secure with anti-fraud features
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Flat-rate pricing with no hidden costs
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Month-to-month billing
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Excellent customer support
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Broad support for multiple currencies
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High flat-rate pricing for the optional merchant account
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All-in-one option may be confusing for customers
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Expensive than using Authorize.net gateway with another provider
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Delayed processing
Authorize.net pricing:
Previously, authorize.net used to charge $49 as the setup fee which has been now reduced to zero. It features two pricing options, one for all-in-one (merchant account and a payment gateway), and the other for gateway-only (this option is for store owners who already have a merchant account).
| Plan Type | Monthly gateway fee | Processing fee per transaction | Batch Fee |
|---|---|---|---|
| Payment gateway + Merchant account | $25 | 2.9% + $0.30 | Nil |
| Payment gateway only | $25 | $0.10 (in addition to any fee charged by the merchant account provider) | $0.10 daily |
For international transactions, Authorize.net charges an additional 1.5% fee. It is $25 per occurrence for chargebacks. ACH and e-checks will cost you 0.75% per transaction.
Note: If you decide to set up your merchant account on Authorize.net, they do it from one of their resellers meaning from a third party.
4.Amazon Pay
Amazon Pay is an online payment solution for their e-commerce stores that allows buyers to pay for products. It is trusted by top brands such as Avis, Crayola, Samsung, and Sugarfina. It accepts credit and debit cards (Visa, Mastercard, Diners Club, American Express, and JCB). It has e-commerce plugins for BigCommerce, Magento, OpenCart, Shopify, WooCommerce, and 3dcart. For third-party integrations, users have to register for an Amazon Pay merchant account. They get a Public Key Id to access Amazon Pay APIs which can be then customized for payment services.
Amazon Pay pros & cons
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Easy payment solution for customers already having an Amazon account
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Supports international currencies
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Only pay per transaction with no onboarding or monthly fees
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Alexa voice integration to pay and track orders.
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It handles secure payments and disputes.
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Good customer and technical support
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Fraud detection and prevention
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No in-person payment support
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No custom plans or volume discounts. The processing fee can add up for high-volume businesses.
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Delay in payout for reserve policy
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Some e-commerce platforms such as Squarespace, Square Online, and Wix are not integration partners.
Amazon Pay Pricing:
| Payment Type (per transaction) | Processing Fee | Authorization Fee | Total Transaction Fee |
|---|---|---|---|
| Within country | 2.9% | $0.30 | $0.59 |
| Outside the U.S | 3.9% | $0.30 | $0.69 |
Amazon Pay fees are transaction-based and they charge a processing fee depending on domestic or international payment. The authorization fee is fixed at $0.30 and the taxes are applicable. If a refund takes place, the client will also be refunded the transaction fee but not the authorization fee. For Alexa voice payments, the transaction fee is 4% plus the authorization fee. For charitable organizations, the transaction fee is 2.2% plus an authorization fee of 30 cents per transaction.
5. 2CheckOut (Verifone)
2CheckOut or 2CO recently acquired by VeriFone is one of the popular payment gateways in the U.S. It accepts payment from 200+ countries and supports 29+ languages. It offers 45+ online and offline payment methods. Its all-in-one solution has low charges making it one of the cheapest payment gateways in the U.S.
It has quick integrations with some of the popular e-commerce platforms such as Shopify, BigCommerce, Drupal, Shopify, Magento, PrestaShop, and WooCommerce. It has API libraries available in PHP, Python, Ruby.net, and Java.
2CheckOut payment gateway pros:
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Supports multiple payment methods
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Provides localized options to help merchants customize the application to match the customer’s language and currency
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Helps automate recurring transactions at the global levels
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Provide two checkout options, standard and inline
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Secured transaction with protection from fraud
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Robust integration with online invoicing systems and shopping carts
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Delayed customer support
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Monthly added costs may be high for businesses with low sales volume
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For U.S and Canada, it supports only the respective currencies.
2CheckOut payment gateway pricing:
Its 2Sell Plan is for those selling internationally. The rates are 3.5% plus $0.35 per sale. The 2Subscribe Plan is for e-commerce stores selling SaaS subscriptions. Its rate is 4.5% plus $0.45 per sale. The 2Monetize Plan is for those selling digital items. The fee here is 6.0% plus $0.60 for a successful sale. Another specific plan for enterprises is available with custom pricing. In specific countries, it charges an additional 2% fee to accept international payments.
There is no hidden fee or any fee for setup. It supports over 45 payment methods from credit/debit cards, PayPal, online wallets to regional payment methods. It provides reporting & analytics, security & fraud protection, and APIs and connectors in all plans.
Conclusion
The other popular payment gateways in the U.S. are PaySimple, WePay, Payline, Braintree, and BlueSnap. Selecting the right payment gateway isn’t an easy task. You have to have your and the customer’s convenience in mind. The best task you can do is narrow down the list based on your preferences and compare them until you get one that works well for your online business. It isn’t easy but you have to do it for your online business success.
