My top picks for the best payment gateways are Authorize.net for versatility, PayPal for its integration capabilities, and Square for a free all-in-one setup. They all offer seamless integration and a wide range of supported payment methods. Many payment gateways are independent, but many modern payment processors include free or affordable built-in payment gateway solutions…
My top picks for the best payment gateways are Authorize.net for versatility, PayPal for its integration capabilities, and Square for a free all-in-one setup. They all offer seamless integration and a wide range of supported payment methods.
Many payment gateways are independent, but many modern payment processors include free or affordable built-in payment gateway solutions with merchant accounts. To provide you with the best options, I evaluated dozens of providers based on key payment gateway features, value for money, and ease of use.
The payment gateway is a customer-facing, transaction-processing platform that collects payment information and transaction data from customers. It mainly refers to online checkouts, but mobile-based payments (wallet and POS apps) also use the same technology.
Payment gateways are often confused with payment processors because most providers have their own. However, some payment gateways are independent and work with many payment processors.
Primary functions of a payment gateway
Before I go into the provider details, let’s establish the role of a payment gateway in the transaction process. This will help you focus your comparisons on key features.
Here’s what a payment gateway does:
Data capture: Receives the customer’s card information via a checkout form
Data verification/authentication: Validates the transaction with a set of verification tools
Data encryption: Scrambles the customer’s transaction data into unreadable code
Data transfer: Sends the data to the payment processor for processing.
Note that other features, such as transaction fees, chargeback, PCI compliance, and funding speed, depend on the payment processor.
Authorize.net: Best (and most versatile) payment gateway
Payflow by PayPal: Best add-on gateway for ecommerce
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Square: Best for Free Point of Sale
Shopify Payments: Best for Shopify ecommerce platform users
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Stripe: Best for integrations and programmability
Helcim: Best and cheapest for fast-growing businesses
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2Checkout (Verifone): Best for global sales
Notable Runners-up:
The following payment gateway providers did not make the list but offer standout, noteworthy features:
PaymentCloud: Best payment gateway for high-risk merchants
Not every payment gateway will work with high-risk merchants and those that do often have higher rates and more problematic services. PaymentCloud offers great service and a true focus on this subset of the retail world. It does not disclose rates, which is common for high-risk processors, as the specific fees will vary for each business and the level of risk involved. However, the provider offers competitive setups, especially for its client type.
PaymentCloud earned an overall score of 4.15 out of 5 based on our evaluation criteria and (apart from Authorize.net) stands out for its good reputation of working with high-risk industries. In fact, it continues to rank No. 1 on our list of the best high-risk merchant accounts. PaymentCloud does not charge setup, annual, or cancellation fees, which is a plus.
Chase Payment Solutions: Best payment gateway for fast and free funding
Chase Payment Solutions® is a direct processor that offers merchant services to SMBs. While it is possible to enroll in Chase Payment Solutions® with a different business banking service, you get the best value (and fastest payouts) when you also enroll in Chase Business Checking. As such, it’s a great choice for new businesses needing a checking account, a business credit card, and more. Like Authorize.net Chase has a large number of integrations and partnerships.
Chase earned an overall score of 4.16 out of 5. Feature-wise it’s up to par with most payment gateway functionalities of those that have made our list. Chase has local bank partnerships to support international payments like 2Checkout. It even has better in-person payment processing capabilities than Stripe. However, I had to dock major points for chargeback fees and ease of setup. I also took into account the recent data breach which caused Chase more points in our evaluation.
Amazon Pay: Best payment gateway for add-on voice commerce
I found Amazon Pay to be one of the easiest and most popular ecommerce credit card processing options. It’s an excellent add-on if you want voice commerce options for your customers, with its order with Alexa function making it stand out from competitors. Like PayPal, Amazon Pay accepts international payments, and its streamlined checkout can reduce cart abandonment while improving the customer checkout experience.
Amazon Pay scored 4.26 out of 5 for this update. Unlike most small business payment systems, it does not have a POS or mobile payment option and takes 20 to 30 days to approve merchant applications. If you need something for online sales now, consider Stripe, Square, and Authorize.net.
Methodology: How I evaluated the best payment gateways
To complete this guide, I examined an extensive list of merchant services, payment processors, and payment gateways that we’ve researched over the years and narrowed them down to those that provide small businesses with reliable and popular gateways at reasonable prices. Then, I compared and tested each provider based on the quality of features, reputation, and ease of use. I chose Authorize.net as the best payment gateway. As the only pure payment gateway in my list, Authorize.net is also often mentioned in conjunction with the best credit card readers, virtual terminals, and other software, as it is compatible with most merchant account services and payment processors. It continues to take the top spot for this guide. Click through the tabs below for our full evaluation criteria:
Methodology weights
Pricing & contract 20%
Payment types 30%
Payment gateway features 30%
Expert Score 20%
Most providers avoid rigid contracts, but some still charge monthly fees for lower rates. I scored highest for transparent, contract-free pricing and fast setup. Providers with long agreements or cancellation penalties lost points for limiting flexibility.
Most gateways cover mobile and ecommerce, but cross-border and Level 2/3 data are less common. I rewarded platforms with advanced checkout and recurring billing that expand reach. Added fees or restrictions on high-risk businesses lowered scores.
Strong security and fraud protection are table stakes, but the best gateways pair these with round-the-clock service and flexible checkout options. I rewarded platforms that integrate easily across processors and include reporting at no extra cost. Providers that restrict access or charge for essentials lost ground.
This catch-all value score considers pricing, transparency, ease of use, popularity, and integrations. I relied on my experience when researching, testing, and using these products and the feedback of long-term customers through user reviews on third-party site
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How to choose the best payment gateway in 4 steps
To find the most suitable payment gateway provider for your business, follow these steps:
Step 1: Decide if you want a built-in or independent payment gateway
Your first decision is whether to use a built-in gateway that comes bundled with your merchant account or an independent provider that works separately. A built-in gateway is often the simplest option for small businesses or those just starting out. It reduces setup time, integrates seamlessly, and comes with fewer technical requirements.
On the other hand, independent gateways are best for merchants who want more flexibility, better control over features, and the option to switch processors without changing their entire payment system. Choosing the right approach upfront helps ensure your payment setup matches both your current needs and your long-term growth plans.
Step 2: Identify merchant service providers that work best with your business model
Businesses will need a merchant account to start accepting payments from a payment gateway. And since no business is created equal, not all merchant services and payment providers available can benefit all business types. To help you choose the best online payment processing system with a payment gateway, check out our recommendations for online payments, international payments, high-risk, B2Bs, and nonprofits.
Step 3: Compare available payment gateway tools against your business needs
Once you have your list of potential merchant service providers, start listing features that your business needs from a payment gateway. Do you need to accept alternative payment modes? Do you require invoicing? Compare your requirements against what your potential providers support and narrow down your list further based on the best match.
When choosing, look out for:
Payment method options: Credit and debit cards, HSA and FSA cards, gift cards, ACH, e-checks, wire transfers
Most payment processors offer a varied combination of payment types and payment methods so it’s up to you to identify which provider will complement the way you want to accept payments.
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Step 4: Compare monthly and transaction fees
Now that your remaining potential providers all meet your payment gateway requirements, it’s time to look into the fees. By default, merchant and payment service providers charge monthly and transaction fees. Some even charge an additional monthly cost for certain services—including the use of their payment gateway.
Monthly account fees and transaction fees vary depending on the payment processor’s pricing structure:
Payment gateway with no monthly fees: Often used by startups and small businesses on a budget. There are no monthly fees and no long-term contracts, but the transaction costs are based on a flat rate. The average card-present flat rate is around 2.6% while the average online flat transaction rate is at 2.9%.
Subscription-based payment gateway: This type of pricing structure is used mostly by high-volume or fast-growing businesses. There are monthly fees that start at $4.99 to as high as $199 but the transaction costs are based on interchange plus rates that are much cheaper so businesses with large volumes of sales end up with huge savings. Find out more about interchange fees.
It’s important to point out that the lowest listed pricing may not always be the most affordable for your business. Use payment processing calculators to help get you an estimate of monthly costs for each provider, as these take into account your business sales volume. Use our payment gateway fee calculator above or visit our recommendation for the cheapest credit card processors.
Once you have made your choice, you can start signing up for a merchant account. If you need help, download our free merchant account application guide to help you get started.
Frequently asked questions (FAQs)
These are some of the questions I frequently encounter about payment gateway providers for small businesses.
Start by looking at how well a gateway performs its core functions, capturing customer payment data, verifying and authenticating the transaction, encrypting sensitive information, and securely transferring it to the processor. From there, compare providers based on fees, supported payment methods, ease of integration, and security tools. The best gateway is the one that balances reliable performance with the specific features your business needs.
A payment gateway encrypts and transfers customer payment data to a processor. The processor verifies the transaction and manages fund transfers between banks. So while often bundled together, they serve distinct roles.
Not in every case. ACH transfers and other direct bank payments can be processed without a gateway, though many providers include it to unify all payment types on one platform. For card payments, gateways are necessary for ecommerce, mobile POS systems, and digital wallets, but traditional countertop card terminals route transactions through processors directly and don’t rely on gateway technology.
Platforms like Stripe, Helcim, and Authorize.Net are known for strong recurring billing capabilities, including automated billing cycles and dunning management.
Yes, leading providers use advanced encryption and fraud detection tools to protect sensitive data, and they adhere to industry security protocols. It’s important to note, however, that PCI-DSS compliance is the responsibility of the payment processor, not the gateway itself. Still, most gateways partner with PCI-compliant processors to ensure secure end-to-end transactions.
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Bottom line
Very few merchants, even hobbyists or solopreneurs, can get by without taking credit card payments. Fortunately, there is a wide range of payment gateways that work well with small businesses. Those that made our list are among the best for price, service, and POS or virtual terminals that help make it easy to take credit card payments.
Authorize.net earned top billing in this guide for its popularity, versatility, and integrations. It offers a full-service payment processing plan or can work as a gateway with the merchant provider of your choice. It charges a monthly fee, but if you need a reliable payment gateway, it’s worth considering. Sign up for an Authorize.net subscription today.
Anna Lynn Dizon has over four years of experience in risk mitigation, serving as both a research lead and client liaison. Her fintech journey began at PayPal in customer and technical support, followed by a role in office and finance management for a U.S. company that collaborates with global banks to establish and manage HR and international payment processing.
Since 2017, Anna has been a contributing writer for Fit Small Business, Technology Advice, and TechRepublic, covering fintech and POS software reviews, payment processing guides, eCommerce, inventory management, business startups, and regulatory compliance.
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