5 Top Payment Processors

Online payments are essential for any ecommerce business. Choosing the right payment processor can have a major impact on your sales, costs, and overall customer experience. In this comprehensive guide, we’ll explore the top 5 payment processors available today based on fees, features, integrations, and more.

PayPal

Founded in 1998, PayPal pioneered online payments and is now one of the largest payment processors. PayPal is used by over 350 million active users across 200 markets.

Features

• Supports credit cards, debit cards, PayPal balances, and bank transfers.
• Offers currency conversion in over 100 currencies.
• Integrates with major ecommerce platforms like WooCommerce, Shopify, and BigCommerce.
• Includes fraud protection and dispute resolution.

Fees

• 2.9% + $0.30 per U.S. transaction. Higher rates for international transactions.
• No monthly fees.

Pros

• Universally recognized brand with high consumer trust.
• User-friendly checkout optimized for conversion.
• Strong fraud and dispute protection.

Cons

• Higher transaction fees compared to competitors.
• Holds funds for new sellers to mitigate risk.

PayPal is best for businesses that value trust and ease of use over rock-bottom rates. The high brand recognition makes PayPal a great option if you're just starting out.

Stripe

Founded in 2010, Stripe processes hundreds of billions annually for internet businesses around the world. Stripe aims to make online payments fast, simple, and secure.

Features

• Supports cards, wallets, bank transfers and more.
• Offers advanced fraud protection and machine learning.
• Powers checkout for companies like Amazon, Uber, Booking.com.
• Developer-friendly API and extensive customization.

Fees

• 2.9% + $0.30 per successful card charge in the U.S.
• Additional 1% for international cards.
• No monthly fees.

Pros

• Low transaction rates for U.S. cards.
• Fast payouts within 2 days.
• Excellent fraud protection and compliance.
• Ideal for developers with extensive APIs.

Cons

• Higher rates for international cards.
• Can take weeks to onboard high risk businesses.

Stripe is a top choice for established tech startups and platforms with development resources. The flexible APIs make Stripe highly customizable.

Square

Founded in 2009, Square emphasizes an all-in-one model with software, hardware, payments and more. Square is known for its ubiquitous card readers that plug into smartphones.

Features

• Supports cards, contactless and wallets.
• Offers POS software, customer management, loyalty programs, and more.
• Includes inventory management, invoicing, payroll services.
• Allows split payments, tips, partial refunds.

Fees

• 2.6% + $0.10 per in-person transaction.
• Online rates of 2.9% + $0.30 per transaction.
• Flat monthly fees for advanced software and hardware.

Pros

• Seamless online and in-person sales.
• Advanced software and hardware options.
• Ideal for local brick-and-mortar stores.

Cons

• Limited ecommerce features compared to specialized providers.
• Monthly software fees add up.
• High rates for keyed-in transactions.

Square is the premier choice for unified online and offline retail payments. The POS software makes Square a great pick for brick-and-mortar stores.

Braintree

Acquired by PayPal in 2013, Braintree focuses on enterprise-level ecommerce companies processing over $50 billion annually. Clients include Uber, Airbnb, and JetBlue.

Features

• Accepts cards, PayPal, Venmo and more.
• Fraud tools and chargeback protection.
• Supports mobile apps, marketplaces, and global payments.
• Developer-friendly API.

Fees

• 2.9% + $0.30 per transaction.
• Flat $15 monthly fee.
• Enterprise pricing available.

Pros

• Custom pricing and services for enterprise clients.
• Specializes in marketplaces and large platforms.
• Excellent fraud protection and compliance.

Cons

• Higher pricing than competitors out of the box.
• Monthly fee makes low volume usage expensive.
• Slow and cumbersome onboarding.

Braintree excels at servicing massive platforms like Uber. But the pricing and overhead makes it overkill for small businesses.

Adyen

Based in Amsterdam, Adyen has quickly emerged as a top global payment provider. Adyen prioritizes omnichannel commerce with unified online and offline payments.

Features

• Unified online, mobile, and in-store payments.
• Supports cards, wallets, bank transfers and more.
• Offer POS systems and in-store checkout.
• Strong data insights and reporting.

Fees

• Interchange fees + 0.5% - 2% per transaction.
• Enterprise pricing model with monthly minimums.

Pros

• Truly unified omnichannel payments.
• Good for mid-market to enterprise retailers.
• International reach with over 150 currencies.

Cons

• Limited self-service onboarding and lack of transparency.
• Higher pricing than competitors.
• Lacks extensive developer resources.

Adyen is ideal for established enterprise retailers prioritizing unified commerce across channels and borders. But the onboarding and opaque pricing make Adyen less accessible.

Final Thoughts

All five of these top payment processors offer powerful solutions for accepting payments online and off. Consider your business model, sales volume, and growth plans when choosing a provider. Ecommerce startups are often best served by accessible solutions like Stripe and PayPal. 

For enterprise retailers, Braintree and Adyen provide specialized services catered to massive platforms. And Square offers the leading all-in-one solution for combined online and brick-and-mortar retail.

Whichever you choose, partnering with the right payment processor can significantly impact your bottom line and ability to scale your ecommerce business over the long-term.