Top 5 Payment Processors
Below are the Top 5 Payment Processors and their Processing fees from major online payment processors like PayPal, Amazon Pay, Stripe, Square, and Shopify vary based on numerous factors, including transaction size, merchant’s sales volume, and specific product features utilized. Understanding these fees is crucial for businesses as they impact the overall cost of sales and the choice of the payment gateway. Let’s delve into the fee structures of these platforms to help merchants make informed decisions.
PayPal
PayPal is one of the top 5 payment processors and one of the world’s most widely used payment processors, known for its ease of integration into various e-commerce platforms. The standard processing fee for PayPal is typically 2.9% plus $0.30 per transaction for sales within the United States. This fee structure is straightforward and applies to the majority of transactions handled through the platform. For international transactions, PayPal charges a higher fee due to the additional risks and costs associated with cross-border payments. This fee can include a fixed portion based on the currency received plus an additional percentage for the conversion process.
PayPal also offers discounted rates for businesses with higher transaction volumes. These rates are not publicly disclosed and usually require direct negotiation with PayPal based on the merchant’s monthly sales volume. Besides, non-profits can benefit from reduced rates, typically around 2.2% plus $0.30 per transaction, helping these organizations save on transaction costs.
Amazon Pay
Amazon Pay’s fee structure is similar to PayPal’s, where the typical charge for domestic transactions is also around 2.9% plus $0.30. For international transactions, Amazon Pay imposes an additional charge, typically 3.9% plus a variable fixed fee depending on the received currency. Amazon Pay is particularly appealing to merchants who sell on Amazon and wish to provide a seamless checkout experience to Amazon users on their own sites.
One of the benefits of using Amazon Pay is its integration within the Amazon ecosystem, potentially increasing the trust factor for users familiar with Amazon. However, similar to other platforms, the actual costs might vary based on specific merchant agreements and the integration of other Amazon services.
Stripe
Stripe is renowned for its developer-friendly API and extensive customization options, making it a top 5 payment processor and favorite among tech-savvy entrepreneurs and large businesses. Stripe’s standard fee for online card transactions is 2.9% plus $0.30, identical to PayPal and Amazon Pay. However, for larger volumes, Stripe offers customized pricing that can include lower per-transaction charges and additional fees for international cards and currency conversions.
Stripe also supports a wide array of payment methods including ACH transfers, Bitcoin, and Apple Pay, each coming with its own pricing. For example, ACH direct debit transactions may incur a lower fee, making it a cost-effective option for large transactions.
Square
Square is best known for its in-person payment solutions but also offers “competitive online processing fees” which make it into our top 5 payment processors list. Square’s standard fee for online transactions is slightly higher, at 2.9% plus $0.30 per transaction. Like its competitors, Square offers custom pricing for businesses with higher volumes, which can be particularly beneficial for merchants with both physical and online presences.
Square differentiates itself with a comprehensive ecosystem of products, including point of sale equipment and additional business management tools. While its fee structure is transparent, the total cost for a merchant might increase with the addition of these services.
Shopify Payments
Shopify Payments is integrated within the Shopify e-commerce platform, providing an all-in-one solution for online retailers. The fees for using Shopify Payments vary depending on the Shopify plan. For basic plans, the fee is 2.9% plus $0.30 per online transaction. Advanced Shopify plan users enjoy lower rates, which can go down to 2.4% plus $0.30.
One of the primary advantages of Shopify Payments is the elimination of transaction fees that are typically charged when using other payment gateways with Shopify. Merchants can save significantly if they choose to use Shopify’s own payment processor, especially if they operate at a large scale.
Conclusion
Now you understand the Top 5 Payment Processors. Choosing the right payment processor involves a careful analysis of processing fees, business needs, and the specific features offered by each platform. While many processors have a similar base fee structure, differences in international fees, volume discounts, and additional services can influence the overall cost-effectiveness. Businesses are advised to assess their average transaction size, monthly sales volume, and specific needs like multi-currency support and mobile payments to make the most informed decision possible. Contact us today to compare processing fees.
Here’s a list of 20 other notable payment processors operating in the USA and Canada outside our top 5 payment processors list:
- PayPal – A global leader widely used for both personal and business transactions.
- Square – Known for supporting small businesses with mobile and point-of-sale solutions.
- Stripe – Popular among online businesses for its powerful API and extensive customization options.
- Moneris – Canada’s leading processor, offering a broad range of payment solutions.
- Global Payments – Serves large and multinational retailers, providing extensive payment technology services.
- Shopify Payments – Integrated with Shopify for seamless e-commerce transactions.
- Adyen – A fintech platform that facilitates payments across online, mobile, and in-store channels.
- Elavon – Provides a range of merchant processing services and is known for its robust security features.
- Amazon Pay – Integrates with online stores, offering customers a familiar payment method.
- Chase Paymentech – Offers a wide range of merchant services and is backed by the financial infrastructure of JPMorgan Chase.
- KIS Payments – Notable for serving smaller retail businesses and restaurants in Canada.
- Fiserv (formerly First Data) – A large scale payment processor that handles a significant portion of card transactions globally.
- Helcim – Known for transparent pricing and excellent service, suitable for small to medium-sized businesses.
- BlueSnap – Supports global payments with a strong focus on e-commerce and mobile transactions.
- Dharma Merchant Services – Specializes in non-profit organizations offering ethical payment solutions.
- Payroc – Provides processing solutions for both mobile and e-commerce platforms.
- Durango Merchant Services – Focuses on high-risk merchant accounts and offers offshore account options.
- Heartland Payment Systems – Offers merchant services for diverse industries including educational and nonprofit sectors.
- CDGcommerce – Known for competitive pricing and scalability, suitable for growing businesses.
- Zelle – A fast, safe, and easy way to send money in minutes to friends, family, and others you trust.
