Best Payment Gateways for Online Businesses

Being a continuous desire to have safe and fast payment gateway is a necessity in the digital-first economy for online businesses. Whether you’re running your small e-commerce store, SaaS business, or freelance service, choosing the best payment gateway can largely help with the customer experience, transaction security, and the overall profitability to your business.

So with so many payment gateways around, how do you know which is the right one for your business?

In this article, we will take a look at the best payment gateways for online businesses in 2025, reviewing their fees, features, security, and global reach to help you choose the right one for your online shop.

What is a Payment Gateway?

A payment gateway is a system that authorizes credit cards and direct payments for either e-businesses or traditional brick and mortar businesses.

How Payment Gateways Work:

1. Customer Triggers Payment – Fills in card or payment information during checkout.
2. Gateway Encryption – Data sent is encrypted to help ensure secure transmission of payment information.
3. Transaction Verification – The payment processor gets in touch with customer’s bank.
4. Approval or Decline – The transaction is either approved or rejected by the bank.
5. Funds Transfer – After approval, the funds are transferred to the merchant’s account.

💡 Ideal payment gateways provide seamless transactions, prevent frauds, and build trust with the Customers.

What To Look for In a Payment Gateway?

Here are some things to keep in mind before choosing a payment gateway:

• Security & Compliance – PCI-DSS certificate and SSL encryption, as well as fraud detection.
• Transaction Fees – Review the processing fees and monthly fees, and most importantly hidden costs.
• Worldwide Availability – Accepts different currencies and foreign transactions.
• Payment Methods – Credit cards, digital wallets (PayPal, Apple Pay), and bank transfers accepted
• Integration & Compatibility — Integrate with your website, e-commerce platform, or app
• Payout Speed — Having the ability to receive payouts faster means your cash flow can be managed more effectively.

Top Payment Gateways in 2025 for Online Businesses

1. PayPal – Ideal for International Payments

Why Choose PayPal?

• Used by 400 Million+ Users Around the Globe
• 100+ currencies and international payments supported
• Compatible with WooCommerce, Shopify and BigCommerce
• Features for buyer protection & fraud prevention

Transaction Fees:

• Domestic: 2.9% + $0.30 per transaction
• International: 4.4% + fixed fee (dependent on country)
• Chargeback Fee: $20

Ideal For: E-commerce businesses, freelancers, digital marketplaces.

2. Stripe  — Ideal for Developers & Customization

Why Choose Stripe?

• Custom checkout solutions with API integration
• 130+ currencies support and multi-payment method
• Artificial impossible to prevent fraud & machine learning_secure
• Built-in subscription billing & recurring payments

Transaction Fees:

• Domestically: 2.9% + $0.30 per transaction
• International: 3.9% + more to convert your currency
• Chargeback Fee: $15

Best For: SaaS companies, startups, and high-growth companies.

3. Square — Best for Small Shops & Brick-and-Mortar Stores

💳 Why Choose Square?

• A complete payment solution for both offline and online businesses
• Free POS system included
• Available for instant deposits (for a small fee)
• No monthly fees

💰 Transaction Fees:

• In-person payments: 2.6% + $0.10 per transaction
• 2.9% + $0.30 per transaction (online payments)
• Chargeback Fee: $0 (limited to up to $250 in chargebacks per month)

Best For: Local businesses, restaurants and service.

4. Authorize. Net – Recommended for Established Businesses

Why Choose Authorize.Net?

• Secured transactions with Visa backed
• Accepts credit cards, PayPal, Apple Pay, and eChecks
• Robust Fraud Detection Tools
• Reliable customer support

Transaction Fees:

• Monthly Fee: $25
• Processing Fee: 2.9% + $0.30 for each transaction
• Chargeback Fee: $25

Best for: Large enterprises, B2B companies, and high volume businesses.

5. Wise (Ex TransferWise) – Best for International Transfers

Why Choose Wise?

• International Payments at the Real Exchange Rates (and Cheap)
• Supports over 70 currencies
• Transparent fee structure
• Currency Conversion No Hidden Markups

Transaction Fees:

• According to the Country & Amount Sent (typically 0.4% – 1%)

Ideal For: Freelancers, global businesses, and contributing to international e-commerce.

6. Razorpay – Best for an Indian Businesses

Why Choose Razorpay?

• Accepts Cash on Delivery, UPI, Credit/Debit Cards, Net Banking, Wallets
• Recurring payments at intervals or once-off payments
• Support for multiple currencies to allow worldwide transactions

Transaction Fees:

• Domestic: 2% per transaction
• International: 3% per transaction

Best For: Indian e-commerce, startups, and service-based businesses.

Best Payment Gateways for Online Businesses: Comparison Table

The Alternate: How to Select a Payment Gateway for Your Business?

• For international transactions: Go for PayPal or Wise.
• For SaaS companies: If you want a custom experience, use Stripe.
• Best for small businesses: Square is best for online & offline payments
• For high-volume enterprises. Authorize. Net offers reliability.
• Create plans: For Indian businesses: Local & international payments, Razorpay.

NOTE: Make sure in addition to transaction fees, you also pay attention to hidden fees, payout speed, customer support, etc.

Conclusion

Choosing the right payment gateway will increase customer trust, reduce transaction risk, and ultimately increase e-commerce conversion rates. PayPal and Stripe are the kings of the hill, but depending on your needs, Square, Wise or Razorpay all provide excellent choices as well.

💵 Which payment gateways do you use for your business? Let us know your thoughts in the comments! 🚀