5 Best Online Payment & Credit Card Processors for 2023
This article is part of a larger series on Payments.
Ecommerce growth is expected to be 10.4% worldwide in 2023, according to Oberlo. To take advantage of this growing market, you need to be able to accept credit cards online. The best online payment processors handle popular payments like ACH transfers, offer buy now, pay later (BNPL) integrations, and provide online payment pages for your website and tools for invoicing and social selling.
We’ve reviewed dozens of payment processors over the years and found the best five for small businesses.
- Stripe: Best overall
- Helcim: Best for high-volume sales
- Square: Best for retailers wanting to add an online option
- Authorize.net: Best payment gateway
- PayPal: Best for selling on social media (and as an additional payment option)
Online Payment & Credit Card Processors Compared
Monthly fee | Online payment fee | Chargeback fee | Invoices | Virtual terminal | Integrations | |
---|---|---|---|---|---|---|
$0 | 2.9% + 30 cents | $15 | Costs extra | ✓ | Excellent | |
$0 | Interchange ++ | $0–$15 | Single and recurring | ✓ | Good | |
$0 | 2.9% + 30 cents | Waived up to $250 per month | Single and recurring | ✓ | Some | |
$25 | 2.9% + 30 cents | Varies | Single and recurring | ✓ | Excellent | |
$0 | 2.59% + 49 cents | $0–$20 | Single and recurring | Costs extra | Some | |
Because we selected the best, you can expect all of the services listed to have PCI compliance and bank-level data encryption. They also offer excellent fraud control for free, and some even have advanced fraud prevention tools for an extra cost. Other common shared features include:
- No contracts
- No hidden fees
- Deposit speeds of at least two days
- Some customer information storage
- Access to BNPL (sometimes through a third party)
- Integrations with common ecommerce websites
Looking for something different? Check out our best merchant accounts for more options that consider in-person tools as well.
Stripe: Best Overall Online Payment & Credit Card Processors
Pros
- Extremely flexible
- Hundreds of of integrations, great API
- 135+ currencies, local payment methods
Cons
- Service fee for invoicing and recurring billing payments
- Requires some technical expertise and resources
- Many small additional fees for features
Stripe is a highly popular credit card processor that often makes our lists for the best merchant services and payment gateways, specifically for its online payment processing tools. Its invoicing and inexpensive ACH transaction fees also make it a good choice for B2B payment processing. Stripe has the most integrations of any software on our list, and its detailed help sections make it a favorite for websites and other software developers.
Stripe earned 4.39 out of 5 on our rubric. It lost points in pricing because some of its excellent tools come with additional fees. Nonetheless, it had top scores for payment and sales tools and is the most versatile (for more free tools and interchange-plus pricing, check Helcim).
Stripe is a highly popular credit card processor that often makes our lists of the best merchant services and payment gateways, specifically for its online payment processing tools. Its invoicing and inexpensive ACH transaction fees also make it a good choice for B2B payment processing. Stripe has the most integrations of any software on our list, and its detailed help sections make it a favorite for websites and other software developers.
With Stripe’s free account, online merchants get access to all of its payment processing tools including advanced payment gateway and fraud management, a virtual terminal, an account updater, and 25 invoices per month. However, it charges extra for some services and lacks ready-to-use mobile payment apps. If you like Stripe for its developer-friendly customization features but prefer a dedicated merchant account, consider Braintree.
- Monthly fee: $0
- Transaction processing fees:
- Ecommerce: 2.9% + 30 cents
- Card-present: 2.7% + 5 cents
- Keyed-in: 3.4% + 30 cents
- Touchless: 2.9% + 30 cents
- Tap-to-pay on mobile: +10 cents per authorization
- Virtual terminal: 2.9% + 30 cents
- ACH: 0.8%, $5 cap
- Invoicing: + 0.4%–0.5%
- Recurring Billing: + 0.5%–0.8%
- International payments: + 1.5% fee, 1% spread for currency conversion
- Stripe Checkout: $10 per month if using custom domain
- Chargeback fee: $15
- Deposit speed: 2 business days, or 1%, minimum 50 cents for instant payout
Helcim: Best for High-volume Online Credit Card Processing
Pros
- No monthly fees or long-term contracts
- Interchange + pricing, with automatic volume discounts
- Free access to payment processing tools and customer self-service portal
Cons
- Charges extra for Amex payments
- Limited business integrations
- Can be expensive for businesses processing under $50,000/month
If you don’t need all the versatility and integrations Stripe can provide, Helcim is a cheaper alternative while still offering a high-quality credit card processing service. Helcim offers interchange-plus pricing, which is generally cheaper. In addition, it offers free tools for invoicing, recurring payments, ecommerce, and a virtual terminal. It works for international credit card processing and has Level 2 or Level 3 processing capability for B2B/B2G sales.
Helcim came in second with a 4.28 out of 5 on our rubric. We were impressed with the wide range of tools for the price. It lost some points here and there, but the biggest hit was for its real-world user review score. Actual customers rate it 3.96 out of 5 stars averaged over multiple sites—still a good score, but the rest on our list rated over 4 stars.
If you don’t need all the versatility and integrations Stripe can provide, Helcim is a cheaper alternative that offers high-quality credit card processing service. Helcim provides the best value for high-volume businesses, with interchange-plus pricing, automated volume discounts, and smart zero-cost processing. In addition, it offers free tools for invoicing, recurring payments, ecommerce, and a virtual terminal.
Other than the reasonable rates, Helcim has few additional charges. Even the chargeback fees are refunded to you if you win the dispute. It also works for international credit card processing and has Level 2 or Level 3 processing capability for B2B sales.
Since our last update, Helcim has updated its pricing with processing fees that now range from interchange plus 0.15% + 6 cents to 0.4% + 8 cents for card-present transactions, and interchange plus 0.15% + 15 cents to 0.50% + 25 cents for card-not-present transactions. Automatic discount now begins at $50,001 in monthly sales volume so merchants that process smaller volumes per month should consider better alternatives.
Monthly Sales Volume | Card-Present Rate Interchange plus | Keyed and Online Rate Interchange plus |
---|---|---|
$0–$50,000 | 0.4% + 8 cents | 0.50% + 25 cents |
$50,001–$100,000 | 0.35% + 7 cents | 0.45% + 20 cents |
$100,001–$500,000 | 0.25% + 7 cents | 0.35% + 20 cents |
$500,001–$1,000,000 | 0.20% + 6 cents | 0.25% + 15 cents |
$1,000,001+ | 0.15% + 6 cents | 0.15% + 15 cents |
Other transaction fees:
- American Express transactions: 0.10% + 10 cents
- Domestic ACH Transfers: 0.5% + 25 cents per transaction
- Chargeback fees: $15 (refundable)
Square: Best for Retailers Also Needing Online Payment Processing
Pros
- No monthly processing fees
- Free POS software and website builder
- Multiple add-on tools to grow your business
Cons
- Locked into Square’s ecosystem
- Not for high-risk markets
- Limited international scope
Square often tops our lists for credit card processors for retail, mobile, and more. Here, we find it the best for retailers that may have a physical store but are expanding online, or are looking to start an online store with the option of selling at physical locations as well. Its online and physical systems sync, making bookkeeping a breeze, and it offers excellent tools that can grow with your business.
Square earned 4.07 out of 5. Its rates are average compared to the others on our list, and you cannot process payments outside the country where you set the account—go to Stripe if you sell internationally. You should also look to Helcim if you want B2B sales. Square has some good integrations but primarily works within the Square ecosystem. However, it provides excellent invoicing, subscription, ecommerce, and virtual terminal tools. Plus, it has a CRM and is very easy to use.
Square often tops our lists for credit card processors for retail, mobile, and more. Here, we find it the best for retailers that may have a physical store but are expanding online, or those looking to start an online store with the option of selling at physical locations as well. Its online and physical systems sync, making bookkeeping a breeze, and it offers excellent tools that can grow with your business.
With free POS software, payment processing, website builders, invoicing, virtual terminal, and team management, merchants can set up a business with practically zero upfront or monthly software costs. However, Square Payments is locked into Square’s ecosystem, where scalability is limited for larger volume merchants that need to manage complex inventory. For example, merchants dealing primarily with cross-border sales should look at other options like Stripe, while those who need B2B payment processing should consider Helcim instead.
- Card-present transaction fee: 2.6% + 10 cents per transaction
- Online transaction fee: 2.9% + 30 cents per transaction
- Keyed-in payments and card-not-present: 3.5% + 15 cents per transaction
- Invoice payments: 3.3% + 30 cents per transaction
- Recurring billing and card-on-file transactions: 3.5% + 15 cents per transaction
- Volume discounts: Square will create custom pricing packages for any business processing over $250,000 in credit card sales.
Authorize.net: Best Online Credit Card Processing Payment Gateway
Pros
- Discounted rates available for nonprofits
- Pays out in 1 day
- Can work as a payment gateway or a full payment processing solution
Cons
- Customer support is hard to reach
- Monthly fee
- Lacks some reporting and in-person payment features
Authorize.net is an extremely popular payment processing system. You can use it as a full payment processor or find a different merchant account with better rates and use Authorize.net as the payment gateway to take advantage of its integrations and tools. Regardless, you do pay a $25 fee and have access to its free invoicing, POS, checkout tools, and customer information management system. Autorize.net ranks No. 1 on our list of the best payment gateways.
Authorize.net earned 3.91 out of 5 in our evaluation. Its integrations, pricing, and ease of use gave it a top-place expert score, while the monthly fee brought its pricing score to 2.5, the lowest on our list. It does well with payment and sales features, with the most notable drawback being the lack of an ecommerce site or checkout pages. However, it does have easy-to-make buy buttons.
PayPal: Best for Selling on Social Media & as an Additional Payment Option
Pros
- Free invoicing and POS software
- Known and trusted platform by consumers
- Seamless online checkout integration
Cons
- Complex pricing
- Monthly fee required for virtual terminal and recurring payments
- High e-check processing fees
PayPal is one of the most popular payment methods today, often used in conjunction with other payment types. In fact, studies have shown that offering PayPal as an option can increase the number of completed sales online by an average of 28%. PayPal also offers easy-to-use “buy now” buttons for social media and hosting for product information, so you can sell on social media without an ecommerce platform.
As a payment processor itself, it offers excellent online rates and its own BNPL tool. It can also accept cryptocurrency, something we did not find in Helcim or Authorize.net. We don’t recommend it for virtual terminals or invoicing, however, because of the extra fees attached and the high cap on e-check processing.
PayPal earned 3.84 out of 5. It was reasonably strong in all areas, but the extra charges for some tools brought down the scores. It had the highest real-world user score, however: 4.67 out of 5 stars, averaged over multiple sites. Stripe was just behind it with 4.64 out of 5 stars.
PayPal is one of the most popular payment methods today, often used in conjunction with other payment types. In fact, studies have shown that offering PayPal as an option can increase the number of completed sales online by an average of 28%. PayPal also offers easy-to-use “buy now” buttons for social media and hosting for product information, so you can sell on social media without an ecommerce platform.
As a payment processor itself, it offers excellent online rates and its own BNPL tool. It can also accept cryptocurrency, something we did not find in Helcim or Authorize.net. We don’t recommend it for virtual terminals or invoicing, however, because of the extra fees attached and the high cap on echeck processing.
PayPal’s transaction fees are a little complicated essentially because it charges different transaction rates for credit card payments depending on which PayPal method is being used. This is unlike most merchant processors that simply vary based on card-present or card-not-present method.
- Via PayPal Checkout methods: 3.49% + 49 cents per transaction
- Via QR code: 1.9% + 10 cents per transactions above $10
- Via credit card: 2.59% + 49 cents per transaction
- Chargeback protection: + 0.4% per credit card transaction
- Card-present including Apple Pay and Google Pay: 2.29% + 49 cents per transaction
- E-check fees: 3.49% capped at $300
- Chargeback fees: $20 for transactions not processed through a buyer’s PayPal account or through guest checkout.
- Same-day funding: 1.50% of the amount transferred
- Recurring billing service: $10/month optional service available for PayPal Online Card Payment Service and Payment Gateway users
- Recurring payment tool: $30/month optional service available for PayPal Online Card Payment Service users
Learn more about PayPal for Business:
How We Evaluated Online Payment Processors
We began with the dozens of credit card processors and merchant services that we’ve reviewed for various lists. Then we considered those that were especially suited for online sales. Most provide in-person and mobile payment processing, too, but for this list, we looked specifically at online features like checkout pages, invoices, and online rates.
It’s no surprise, then, that Stripe, which usually gets a callout for its online solutions, placed first on this list. Its programmability, tools, and plethora of integrations make it the top choice.
Click through to see the scoring criteria:
20% of Overall Score
We graded based on monthly fees, online rates, chargebacks, and whether or not you could get volume discounts.
30% of Overall Score
Online payments are more than website checkouts. We looked for invoices, recurring billing, and virtual terminals. We also gave points for stored payments and Level 2 and 3 processing for B2B sales. Stripe had a clear lead with 4.63.
25% of Overall Score
This score took into account sales tools like customer management features, BNPL, fraud prevention, and developer tools for customizations. We also considered deposit speed, giving the most points for same-day processing, and customer service. Stripe again took the lead with 4.63 out of 5.
25% of Overall Score
Here, we scored based on our own experience of ease of use, plus research into account stability. The number and ease of integrations contributed to this score. Finally, we gave some weight to the input of real-world users as recorded in third-party user review sites like Capterra. Square also did well in this category.
Online Payment & Credit Card Processors Frequently Asked Questions (FAQs)
Online credit card processing is simply the ability to accept credit card payments online—on your website, through an invoice sent by email, or even via social media sites like Instagram. Most merchant services can process credit cards online as well as in person.
In general, the steps are the same—submission, authorization, and funding. However, the main difference is that you never see the actual credit card. Also, there is a higher risk of credit card fraud (because you are not able to verify the user in person) and of friendly fraud, where someone may forget an online purchase or not recognize your business name on their bill. Thus, it’s important to look for strong fraud prevention tools and low chargeback rates.
Rates for in-person payment transactions are usually cheaper than online or keyed-in rates, as well.
You need a credit card processor that handles online payments. Then you need the tools for accepting payments online, such as an ecommerce site or digital invoicing. Most online payment processors offer such tools, but their exact offerings vary widely.
Most provide the basics: a payment button you can code onto your website or ecommerce platform or an actual checkout page. Nearly all have invoice software that lets you send an invoice with a link or button to pay online; a few charge for this, however. The best also have tools for recurring billing, website or web page creation, and of course, integrating into other software that take payments online.
The price varies by processor, but in our research, we’ve seen prices from around 2.4% + 8 cents to 3.49% + 49 cents. Some payment processors charge monthly fees in return for lower rates, while others have fees for specific services like invoicing or virtual terminals.
When considering price, do your research. Those that charge fees, like Stax (not on our list), offer lower rates that save you more than the fee. Others, like Square, offer an excellent range of free tools that can make the slightly higher rate worthwhile. Regardless, always check the fine print for contract obligations and “hidden fees” like cancellation fees, batch processing, and the like. The services on our list do not have these.
Learn more about credit card processing fees.
Bottom Line
When choosing the best online payment processor for your business, price is the first consideration, but it’s not the only one. You should consider how easy it is to incorporate the credit card processor into your website and whether you need additional tools like payment buttons, social selling, or more. Fortunately, nearly all payment processors have online tools, and some are especially adept at ecommerce.
Stripe was designed for online environments, with great rates and amazing integration capabilities. If you just need simple checkout and invoicing tools, it has those too. Stripe only charges by transaction, so sign up for an account and get started accepting credit cards online today.