Cheapest Payment Gateways (2024)

Payment gateways are a must, especially for businesses that sell online, but you’ll want to understand the total cost associated with them before committing to one. To find the cheapest payment gateway, look for competitive processing fees and low-cost (or even free) monthly software plans. And try to avoid products that charge additional fees for things like setup.

Many companies offer payment gateways and payment processing services in tandem — payment gateways let customers securely enter their card information online, whereas payment processors move that information to and from financial institutions. Consider the overall product’s pricing structure and your business’s monthly sales volume to find the best option.

Here are some of the cheapest payment gateways for your small business.

Why we like it: Adyen's slim margin on top of standard bank and card network fees is among the lowest we've seen. However, there are monthly transaction volume minimums, and you'll need to contact Adyen to see if you qualify. Read NerdWallet's complete Adyen review.

Why we like it: Helcim offers low interchange rates, and its website shows exactly what you'll pay for any card a customer uses. Helcim’s Online Checkout feature helps merchants set up an e-commerce store and accept payments online. It also includes other capabilities, like inventory management, reporting, customer logins and shipping options. Read NerdWallet's complete Helcim review.

Why we like it: Stripe combines payment processing and customizable payment gateway tools into a single service. It’s an especially good choice for business owners who want to tailor their online payments platform to match the rest of their site’s branding (and have the coding experience to do so). Read NerdWallet's complete Stripe Payments review.

Why we like it: Stax's rate doesn't add a percentage margin to the interchange rate — it adds only a fee of either 8 cents for in-person transactions or 15 cents for manually keyed transactions. However, there's a monthly fee that can be hefty for some. On the other hand, it could be cost-effective if you're spreading it across a high sales volume. Read NerdWallet's complete Stax review.

Why we like it: This payment gateway combines Chase and Authorize.net services. It's a nickel cheaper per transaction compared with working directly with Authorize.net. In addition, if you use a Chase business checking account, you'll get your money the next day — faster than the industry standard of two business days. Read NerdWallet's complete Chase Payment Solutions review.

Why we like it: Square’s free POS software plans and competitive processing rates make it an ideal choice for business owners prioritizing convenience and affordability. While it’s a good choice for retail stores and restaurants alike, freelancers and very small businesses with a smaller online presence can also benefit from its range of free features. Read NerdWallet’s full Square POS review.

Payment gateways are typically bundled with payment processing services and usually involve a monthly subscription fee and a per-transaction fee. Subscription fees can cost anywhere from $0 to $99 or more each month. Per-transaction fees can be flat-rate or interchange-plus.

Under a flat-rate pricing model, you’ll typically pay a percentage of the total transaction cost plus a fixed amount. For example, with a fee of 2.9% + 30 cents per online transaction, you'd pay $3.20 to process a customer's $100 online order.

Other companies use an interchange-plus pricing structure. This model is more complicated, as prices vary based on so-called interchange fees that depend on factors like card and transaction type. A fee under this model may look like the interchange cost plus a markup — for instance, interchange plus 25 cents. That means, for a $100 transaction, you could pay $1.45 (if the interchange fee was 1.15% + 5 cents), $3.50 (3.15% + 10 cents) or an entirely different amount.

Interchange-plus pricing is more transparent because you can see where processors are charging markups. It may also be cheaper for your business depending on your underlying transactions, but you’ll have to do some math to be sure.

The cheapest payment gateway for your business will depend on the product’s pricing type (flat rate or interchange-plus) and your business’s monthly sales volume, among other factors. There isn’t a one-size-fits-all option.

Here are some additional tips to help you track down the right solution:

Know what type of service you need

Not all payment gateways work the same way. Some will redirect customers away from your site to the gateway's site for payment, which can negatively affect completion rates. Others have pre-built payment gateways you can embed directly on your website. White-label gateways allow you to build a custom checkout experience on your site, which can be a good addition but one that requires technical skills.

It's important to confirm that the gateway will work the way you expect and have a price tag you're comfortable with.

Look for transparency

It's easiest to compare prices when they're published. A company that uses custom pricing or requires you to call for a quote might have a reasonable price, but it takes more time to compare. Aside from monthly and processing fees, look for other fees that could impact your costs.

Avoid those extra fees (most of the time)

There's no getting around paying a per-transaction fee. But most businesses can avoid companies that charge additional fees, like fees for setup or PCI compliance, a process that keeps card data secure.

However, not all fees should be avoided equally. Before you rule out every payment gateway that charges a monthly fee for service, consider the total costs. Companies with monthly fees sometimes offer great per-transaction fees. Depending on your sales information, you might come out ahead, even after paying a monthly fee. The only way to know for sure is to run your numbers. Use this calculator to estimate your costs: