Finding a budget-friendly payment gateway is essential for small businesses looking to thrive in 2025. With so many options out there, it can be tough to know which one is the best fit for your needs. In this article, we’ll break down the top five low cost payment gateway choices that can help you streamline your transactions without breaking the bank. Whether you’re just starting out or looking to switch providers, these gateways offer great features at affordable prices.
Key Takeaways
- PayPal is a solid choice for businesses needing to handle international transactions easily.
- Stripe stands out for its customization options, making it ideal for tech-savvy users.
- Square offers a straightforward solution for in-person payments, perfect for retail businesses.
- Authorize.net provides a reliable service with strong security features, great for online shops.
- Braintree is a good option for mobile and web payments, especially if you want to support various payment methods.
1. PayPal
Okay, so PayPal. Everyone knows PayPal, right? It’s been around forever. It’s like the granddaddy of online payments. But is it still a good option for small businesses in 2025? Let’s take a look.
PayPal is a pretty solid choice if you’re just starting out and need something easy to set up. They’ve got a huge user base, so lots of people already have accounts and trust the platform. Plus, they handle international payments without too much hassle, supporting a ton of countries and currencies. That’s a big win if you’re planning to sell stuff overseas.
Here’s the thing, though. It’s not all sunshine and rainbows. PayPal has its downsides. Fees can eat into your profits, especially if you’re moving a lot of volume. And sometimes, they put holds on accounts, which can mess with your cash flow. Nobody wants that.
I remember when my friend Sarah started her online store. She went with PayPal because it was easy. But then, one month, PayPal held a bunch of her payments for "security reasons." She was freaking out because she couldn’t pay her suppliers. It all worked out in the end, but it was a stressful situation.
Here’s a quick rundown of some of the pros and cons:
- Pros:
- Super well-known and trusted brand.
- Easy to integrate into your website.
- Supports multiple payment types (credit cards, debit cards, bank transfers, etc.).
- Cons:
- Transaction fees can add up.
- Limited customization options.
- Potential for account holds.
And here’s a table showing some of the fees you might encounter:
| Fee Type | Amount |
|---|---|
| US Transactions | 2.9% + $0.30 |
| Card-not-present | 3.5% + $0.15 |
| Chargeback Fees | $20 |
So, yeah, PayPal. It’s a solid option, but make sure you weigh the pros and cons before you jump in.
2. Stripe
Stripe is another big player in the payment processing world. It’s known for being super customizable, which is great if you want a payment system that fits your brand perfectly. Unlike some platforms, Stripe gives you a lot of control over the look and feel of the checkout experience. It’s a favorite for e-commerce businesses, startups, and bigger companies that want to accept payments online without a lot of hassle.
Stripe isn’t quite as globally available as PayPal; merchant accounts are only in 46 countries. But it makes up for that with its powerful platform.
Here’s a quick rundown of what makes Stripe stand out:
- Easy to integrate: Stripe’s API is well-documented, so you can add it to your website or app without too much trouble.
- Customizable: You can tweak the payment forms to match your brand.
- Wide payment support: Stripe accepts all sorts of payments, including credit cards, digital wallets like Apple Pay and Google Pay, and even local payment options.
- Subscription management: If you have a subscription-based business, Stripe makes it easy to manage recurring billing.
- Security: Stripe uses top-notch security measures to protect sensitive payment data.
Stripe can be a bit more complex to set up than some other options. It’s really geared towards businesses that have some technical know-how or are willing to work with a developer. If you’re looking for something super simple out of the box, Stripe might not be the best choice.
Here’s a look at Stripe’s transaction fees:
| Fee Type | Rate |
|---|---|
| Chargeback fee | $15 |
| ACH | 0.8% (up to $5) |
| Touchless | 2.9% + $0.30 |
| Manually Keyed | 3.4% + $0.30 |
| Card-Present | 2.7% + $0.05 |
3. Square
Square is a pretty popular choice, especially if you need something that works both online and in a physical store. It’s more than just a payment gateway; it’s like a central hub for handling payments. Think of it as an all-in-one solution. It’s great because you can use it for online sales, in-person transactions, and even mobile payments. Plus, it can act as a virtual terminal, a QR code payment processor, and even a basic POS system. The part that deals with online sales is called Square Online Checkout. If you are looking for the best online payments, Square is a great option.
Square lets you accept a bunch of different payment types:
- Credit and debit cards
- Gift Cards
- Digital wallets like Apple Pay and Google Pay
- Even ACH transfers
Square is a solid option if you want a simple, unified system. It’s easy to set up and use, which is a big plus for small business owners who don’t want to spend a ton of time messing around with complicated tech.
Here’s a quick rundown of Square’s transaction fees:
- Online transactions: 2.9% + $0.30 per transaction.
- In-person payments: 2.6% + $0.10 per transaction.
- Manually entered transactions: 3.5% + $0.15 per transaction.
- Chargeback fee: $25
- Monthly fees: $29 – $69
4. Authorize.net
Authorize.net, a service maintained by Visa, is a payment gateway that supports various payment types: online, e-check, mobile, recurring, in-person, and even virtual POS payments. It’s worth noting that its availability is limited to businesses in the US, Australia, and Canada.
If your business operates in one of those regions, Authorize.net could be a solid choice, especially for ventures considered high-risk, such as gambling or finance. Authorize.net is known for its robust security features. It’s PCI compliant and includes an advanced fraud detection suite to help prevent chargebacks and fraudulent transactions.
With its built-in security, you can configure up to 13 fraud filters for extra protection. The system will automatically block any transaction attempts that don’t meet your safety requirements. For example, you can set filters to flag irregular payment amounts or block traffic from high-risk IP addresses. Shipping filters can also verify customer shipping addresses.
This security covers online debit and credit card transactions, e-checks, PayPal, and digital wallet payments like Apple Pay. Keep in mind that Authorize.net charges a monthly recurring fee in addition to payment processing fees. Some users have reported unexpected fees and discrepancies in charges.
Authorize.net payment gateway features
- Popular and easy to integrate
- PCI compliance
- Advanced fraud detection Suite
- Robust payment toolkit
- Customer information manager
- Mail/phone payment
- Recurring billing
Authorize.net payment methods
- Debit Cards
- Credit Cards
- E-Checks
- PayPal
- Apple Pay
Authorize.net transaction fees for merchant accounts
- E-check processing fee: 0.75% per transaction.
- International payments fee: 1.5% per transaction.
- Payment gateway transaction fee: $0.10 per transaction + a $0.10 daily batch fee.
- All-in-one transaction fee: 2.9% + $0.30
- Chargeback fee: $25.
- Setup fee: $99
Pros and cons of Authorize.net payment gateway
| Authorize.net Pros | Authorize.net Cons |
|---|---|
| Accepts various payment methods | Fees are higher than competitors |
| Enables manual payments via virtual terminal | Funds take time to transfer |
| Implements advanced fraud prevention and detection | Monthly gateway fee required |
| Supports recurring billing | Setup process is complex |
| Robust analytics and reporting tools |
Choosing a payment gateway is a big decision. Make sure you compare all the costs, including monthly fees, transaction fees, and any other charges. Also, consider the security features and the types of payments the gateway supports to make sure it fits your business needs.
5. Braintree
Braintree is another solid option for small businesses looking for a payment gateway in 2025. It operates on the same infrastructure as PayPal, and in fact, you’ll need a PayPal Business account to use it. However, Braintree is structured differently. While PayPal acts as a payment aggregator, Braintree provides dedicated merchant accounts, giving you more control, especially if you have some coding skills. This payment processing system supports a wide range of currencies.
Braintree minimizes the risk of account limitations because you get a dedicated merchant account. This is similar to having a business bank account, offering more control over your payment operations. It’s available in 44 countries, and customers can pay in over 130 currencies.
Braintree accepts various payment methods:
- Major credit and debit cards
- Venmo and PayPal
- ACH bank deposits
- Digital wallets like Apple Pay and Google Pay
Choosing a payment gateway is a big decision. Think about what you need now and what you might need in the future. Consider factors like pricing, features, and ease of use. Don’t be afraid to shop around and compare different options before making a choice.
Here’s a quick look at Braintree’s transaction fees:
| Fee Type | Amount |
|---|---|
| Card Payment Processing Fee | 2.59% + $0.49 |
| Venmo Transaction Fee | 3.49% + $0.49 |
| ACH Payment Processing Fee | 0.75% (up to $5) |
| Chargebacks | $15 |
| Monthly Fee | $49 + $0.10/transaction |
Wrapping It Up
Choosing the right payment gateway can really make a difference for small businesses. With so many options out there, it’s key to find one that fits your needs without breaking the bank. The five gateways we talked about offer solid features at a low cost, making them great choices for 2025. Whether you’re looking for ease of use, international support, or customization, there’s something here for everyone. Take your time, do some research, and pick the one that feels right for your business. After all, a smooth payment process can help keep your customers happy and coming back for more.
Frequently Asked Questions
What is a payment gateway?
A payment gateway is a service that helps businesses accept payments online. It securely processes credit and debit card transactions.
Why do small businesses need a payment gateway?
Small businesses need a payment gateway to easily accept payments from customers, making it easier to sell products or services online.
Are these payment gateways safe to use?
Yes, these payment gateways use strong security measures to protect your payment information.
How do I choose the right payment gateway for my business?
Consider factors like fees, ease of use, and whether it works with your online store.
Do I need a merchant account to use these gateways?
Some gateways require a separate merchant account, while others provide one for you.
Can I use these payment gateways for in-person sales?
Yes, some payment gateways also offer solutions for in-person transactions, like card readers.