Updated: Feb 11, 2025
Running an eCommerce business means accepting payments, but choosing the best payment processor can be daunting. With so many options available, it’s important to find the one that fits your business needs and offers the security and simplicity your customers expect. The right payment processor not only ensures smooth transactions but also enhances customer trust and retention. We break down Stripe, PayPal, and Square, so you can make the right choice for your online store and keep your business running seamlessly.
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The top payment processors for online businesses are likely to be:
Type: Payment Processor
Founded in 1998, PayPal (owned by eBay) is the world's largest consumer payment service.
PayPal enables any individual or business to securely and quickly send and receive payments online.
Overall, they are a great low-cost payment processor for small businesses and offer a wide range of features.
One major advantage of using PayPal is that you don’t need an Internet merchant account. PayPal allows you to transfer your settled funds into any regular bank or credit card account.
Opening your account takes around 10 minutes and their user interface is simple and easy-to-use. PayPal allows you to send and receive funds in the following currencies:
If you’re new to eCommerce and you’re unsure as to how many sales you’ll be getting each day, getting a PayPal account is a good way to ‘test the waters’ without making a big financial commitment.
For fees and signup information, visit PayPal at:
www.PayPal.com - United States
www.PayPal.com.au - Australia
Type: Merchant Account Provider and Payment Gateway
WorldPay is a merchant account provider and payment gateway service rolled into one.
Accounts take as little as 7-10 days to set up and they accept over 90% of companies that apply for merchant account facilities.
In addition to regular payment processing, WorldPay allows merchants to accept instalment payments and recurring subscription payments.
This is a great feature for businesses that have to re-bill their customers regularly (e.g. gyms, membership-based websites, etc)
We recommend WorldPay for merchants that are targeting an international audience and need to accept multiple currencies.
For example, if you have a site based in Australia that sells to customers in the UK, US, and Japan, you can offer your products in British Pounds, US Dollars and Japanese Yen.
This helps to increase your sales conversion rate as most people feel more comfortable paying in their local currency and not worrying about the conversion rate.
For fees and signup information, visit WorldPay at:
www.worldpay.com
Type: Payment Gateway
eWAY is an Australian-based payment gateway established in 1998 and is an eCommerce partner with the following banks:
To use eWAY you must first apply for an Internet merchant account with one of the banks listed above. Once your application is approved by the bank, you can open an eWay account and start accepting credit card payments.
We recommend eWay for businesses that need to maintain a high-volume/low-cost structure. eWay is popular with retail-based operations and charges in Australian currency only.
For fees and signup information, visit eWay at:
www.eway.com.au
While third-party payment processors like PayPal have a simple fee structure, a Merchant Accounts/Payment Gateway combination is a little more complicated.
Here’s a breakdown of each of the fees and what they mean:
Application/Set-up fee: Banking institutions will charge a fee to apply for a merchant account, regardless of whether your application is successful or not.
Once your application has been approved, there may be other fees associated with establishing the account so check before applying.
Monthly Account Fee: A monthly fee charged by the bank to keep your account open.
Discount/Charge Rate: The percentage fee you pay to the credit card company (Visa, MasterCard, etc) for each transaction. For example, if you sell a product for $100 and your charge rate is 2.5%, you’ll pay them $2.50.
Statement Fee: A monthly fee a bank will charge for issuing your account statement, which outlines your transactions. Some banks may allow you to avoid statement fees by receiving your statements in an electronic format rather than in print.
Chargeback Fee: The fee which is charged in the event a customer disputes a transaction on their statement (e.g. fraud, not happy with a purchase, etc).
Application/Set-up Fee: A flat fee is charged to set up your payment gateway account.
Monthly/Yearly Fee: A flat monthly or yearly fee charged by your payment gateway provider to gain access to their service.
Transaction Fee: A flat fee charged by your payment gateway to process each transaction (e.g. 50 cents per transaction).
A chargeback occurs when the owner of a credit card successfully disputes that they are not responsible for a charge appearing on their statement.
A chargeback can occur if:
In general, a chargeback usually goes in favour of the consumer, so prevention is the best cure.
The best way to avoid chargebacks is to:
Related: Payment Gateways For ECommerce
When launching an online business, choosing the best eCommerce merchant services is critical to ensure smooth and secure transactions. A reliable eCommerce payment processor serves as the backbone of your online store, enabling seamless payments between you and your customers. These services are designed to handle various forms of payment, from credit cards to digital wallets, and can cater to both small businesses and large enterprises.
The best online payment processing systems provide easy-to-integrate solutions for business owners. Popular options like PayPal, Stripe, and Square offer businesses a user-friendly platform for handling transactions, invoicing, recurring payments, and even mobile transactions. The key advantage of these services is their simplicity and flexibility, allowing businesses to quickly start processing payments without a lot of technical setup.
While selecting the best online payment processor, factors like fees, speed of transactions, fraud protection, and support for international payments are critical. If you operate globally or plan to expand, choose a service that supports multiple currencies, reducing the friction for international customers.
Moreover, many businesses choose these services based on their integration with other tools. For instance, PayPal is widely used for digital products and small-scale eCommerce stores because it offers an easy-to-use interface and integration with platforms like Shopify and WooCommerce. For larger businesses or those requiring advanced features, services like Stripe provide robust APIs for customization and scalability. Whether you're building a website from scratch or integrating it into an existing platform, working with a web design company in Dubai can help ensure that your online store aligns perfectly with your payment system.
As eCommerce continues to grow in Saudi Arabia, selecting the best payment gateway in Saudi Arabia becomes essential for businesses looking to serve local customers. With a growing consumer base and a preference for digital transactions, the Saudi market requires payment processors that support both local and international payment methods.
In Saudi Arabia, the best payment processor for digital products should not only provide secure payment solutions but also ensure compatibility with the most commonly used local payment methods, such as Mada. Mada is Saudi Arabia’s national payment system, enabling local cardholders to perform online transactions, and any best payment gateway in Saudi Arabia should support this payment method to cater to local preferences.
The biggest payment gateways in the region, such as PayTabs, Tap Payments, and HyperPay, are well-equipped to handle a wide range of payment types, from credit and debit cards to mobile wallets like Apple Pay. These providers also excel in offering localized payment solutions, with features that cater to the specific regulatory and business needs of the Saudi market.
Beyond local preferences, global eCommerce merchants targeting Saudi Arabia should also consider payment processors that support international currencies and have fraud prevention systems in place. Additionally, many of these services provide multi-currency support, which is a valuable feature for merchants operating internationally.
When selecting a payment processor for your online business, it’s essential to explore the different options available. Below is a curated list of payment processors to help you choose the best solution based on your business needs. These processors vary in features, fees, and compatibility, allowing you to select the best fit for your specific requirements.
PayPal
Stripe
Square
Authorize.Net
Worldpay
Braintree (a PayPal service)
Checkout (now Verifone)
Adyen
Klarna
WePay
Payoneer
Vantiv
Skrill
Alipay
Apple Pay
Each of these major payment processors offers unique features and advantages depending on the type of business you run. When choosing a payment processor, be sure to assess your business's needs in terms of geography, payment methods, fraud prevention, fees, and ease of integration.
Imagine this: Your customer is ready to make a purchase, but when it comes time to pay, the payment system crashes, or worse, it takes too long to process. Frustrated, they abandon their cart—and you lose a sale. This is where online payment processing companies come in. The right payment processor ensures seamless, fast, and secure transactions every time, keeping your business running smoothly and your customers happy.
Choosing the best online merchant processor is crucial, as it directly impacts your revenue and reputation. These companies provide the infrastructure to handle all your payments, from credit card transactions to digital wallets, ensuring a frictionless checkout process for your customers.
An online payment processor acts as the intermediary between your business and the customer’s financial institution. It securely handles the authorization and transfer of funds, making sure the transaction is completed in real time. The best online payment processors offer advanced security measures, such as encryption and fraud detection, to keep both the merchant and the customer protected.
For internet businesses, choosing the right online payment processing options can make all the difference. A robust processor can help streamline your operations, reduce payment failures, and ensure that transactions are processed efficiently—whether you’re selling digital products, physical goods, or services. A wide range of features is available, including support for recurring payments, multi-currency transactions, and easy integration with shopping platforms.
If you're operating in the UAE or targeting customers in the Middle East, an online payment gateway Dubai is a must. Local payment gateways in Dubai are tailored to the regional market, supporting popular payment methods used by consumers in the UAE, such as credit cards, debit cards, and local payment systems. Choosing a Dubai-based payment gateway not only ensures seamless transactions but also guarantees compliance with local financial regulations.
Many of the leading online payment processing providers in Dubai integrate with international payment systems, enabling you to easily expand your reach beyond the region while catering to local customer preferences. With the rise of eCommerce in the UAE, selecting the right payment gateway is key to staying ahead in a competitive market.
When selecting the best online payment processors for your business, it’s crucial to look at factors like transaction fees, security features, ease of integration, and support for international payments. Some online transaction processing companies are tailored to specific industries, like subscription services, digital products, or mobile payments, while others offer a more general solution.
The right online payment gateway can empower your business, allowing you to provide a smooth, secure, and reliable checkout experience for your customers. Whether you're just starting or scaling globally, understanding the options available and choosing a processor that fits your business needs is crucial for long-term success.
The global eCommerce landscape is constantly evolving, and businesses need a top payment gateway that can handle transactions securely and efficiently on an international scale. The top 10 payment gateways in the world offer features that cater to businesses of all sizes, from startups to large enterprises, while supporting payments in multiple currencies and countries.
Here are some of the best global payment processors:
PayPal
Stripe
Square
Adyen
Braintree
Worldpay
Klarna
2Checkout (Verifone)
Skrill
Alipay
These top payment processors offer advanced features such as fraud detection, real-time reporting, and multi-currency support, making them ideal for businesses aiming to serve a global audience.
The UAE has become a hub for eCommerce and digital transactions, and selecting the right payment gateway in UAE is crucial for businesses targeting customers in the region. The top payment gateways in UAE provide businesses with secure, fast, and reliable solutions to process payments efficiently.
Here are some of the best payment processors in the UAE:
PayTabs
Telr
2Checkout
Stripe
Checkout.com
These payment gateways are trusted by businesses across the UAE for their reliability, scalability, and user-friendly features.
Europe's diverse and competitive eCommerce market requires businesses to choose payment gateways that not only offer secure transactions but also cater to the region’s unique regulatory environment and consumer preferences. The top payment gateways in Europe provide local support and help businesses operate seamlessly across different countries.
Here are the leading payment processors in Europe:
Adyen
Stripe
PayPal
Klarna
Worldpay
Skrill
Paysafe
2Checkout
Trustly
Giropay
These gateways ensure that businesses can securely process payments while adhering to Europe’s diverse regulations and consumer preferences.
Nigeria's growing eCommerce market presents a massive opportunity for businesses, but it also comes with the challenge of choosing the right payment gateway to cater to local customers' preferences. The top 10 payment gateways in Nigeria offer businesses an array of features to help ensure seamless, secure transactions. Whether you're a small local retailer or a large enterprise, selecting the right payment gateway is critical for boosting your sales and customer satisfaction.
Here are some of the leading payment processing companies in Nigeria:
Paystack
Flutterwave
Interswitch
Quickteller
Paga
Remita
VoguePay
GTPay
PayU
Mollie
These gateways offer a wide range of features, such as fraud protection, mobile payment support, and multiple currency options, making them highly reliable for businesses targeting Nigerian consumers.
Yes, you can use PayPal in Nigeria, but there are some limitations. Nigerian users can send payments and receive payments in foreign currencies. However, Nigerian PayPal accounts are restricted from receiving funds in Nigerian Naira (NGN), which means you can’t receive funds directly in your local currency. PayPal is primarily used in Nigeria for making international purchases or receiving payments from abroad. It’s a great tool for freelancers, eCommerce businesses, and digital entrepreneurs who deal with international clients.
Choosing the right payment processor is essential for ensuring a seamless customer experience and maximizing business efficiency. When selecting a payment processor, consider the following factors:
PayPal is one of the most widely recognized and trusted payment platforms globally. With over 400 million active users across more than 200 markets, PayPal dominates the online payment space. It’s popular for its ease of use, security features, and wide acceptance on eCommerce platforms. Whether you are a consumer purchasing from international merchants or a business accepting payments, PayPal has become a go-to platform due to its user-friendly interface and support for various payment methods.
No, PayPal is not technically a merchant account but acts as a payment processor. A merchant account is a bank account that allows businesses to accept credit card payments, whereas PayPal offers merchant services by enabling businesses to process payments without needing a separate merchant account. PayPal is an intermediary that connects the buyer’s payment method with the merchant’s account, simplifying the payment process.
PayPal acts as both a payment gateway and a payment processor. As a payment gateway, it securely transmits payment information from the customer to the payment processor. As a payment processor, it manages the payment transactions, ensuring the transfer of funds between the customer’s bank and the merchant’s bank. So, PayPal combines both roles in one, making it an all-in-one solution for online transactions.
Yes, PayPal is considered a payment processor. It helps businesses and individuals transfer funds securely from one account to another. PayPal handles the payment processing for online transactions, ensuring that payments are authorized, verified, and settled between the customer and merchant. As a payment processor, PayPal simplifies the payment experience by providing fast, secure transactions and a wide range of accepted payment methods.
No, Stripe is not owned by PayPal. Stripe is an independent company, founded by brothers Patrick and John Collison in 2010. It is one of the leading payment processors for online businesses, known for its robust API integration, global reach, and support for both online and in-person payments. PayPal and Stripe are often seen as competitors in the payment processing space, although both offer similar services to merchants, such as the ability to accept credit card payments.
A payment processor is a service that facilitates the transfer of funds between the customer’s bank or card issuer and the merchant’s account. It acts as an intermediary, securely transmitting payment information, authorizing the transaction, and ensuring that funds are transferred from the buyer to the seller. Payment processors are essential for businesses to accept online payments, whether via credit cards, debit cards, or digital wallets. They are responsible for handling the technical aspects of a transaction, such as authorization, settlement, and fraud prevention, ensuring that payments are processed quickly and securely.