Reviewed by the SEOPointz team · Last reviewed June 2026. The rates below are US standard online pricing pulled from each provider’s published terms — they change, and your real cost depends on card mix and volume, so always confirm current figures before signing. SEOPointz may earn a commission from some links; it never changes what we recommend.
A payment gateway is the part of your store that takes the money, and it’s easy to choose badly because the marketing makes everyone sound the same: “2.9% + 30¢, no monthly fee.” That headline rate hides where the real differences live — payout speed, international cards, fraud tools, chargeback handling, and how much the “simple” pricing actually costs once your volume grows. The right gateway for a side-project store selling locally is the wrong one for a brand shipping worldwide. Here’s how to tell them apart and pick without regret.
Gateway vs. processor vs. merchant account — what you’re actually buying
The terms get used interchangeably, but they’re different jobs. The gateway securely captures the card details on your checkout. The processor routes the transaction to the card networks. The merchant account is where the funds land before they reach your bank. Modern providers like Stripe, Square and PayPal bundle all three into one signup, which is why they feel effortless. Older setups like Authorize.net are a gateway that you bolt onto a separate merchant account — more moving parts, but more control and sometimes lower blended rates at scale. Knowing which model a provider uses tells you whether you’re buying convenience or control.
What the headline rate doesn’t tell you
Two gateways can both advertise 2.9% + 30¢ and cost you very different amounts. The variables that actually move your bill:
- International cards. Stripe, for example, adds roughly 1% for cards issued abroad plus a currency-conversion fee. If a meaningful share of your buyers are overseas, this dwarfs the base-rate difference.
- Payout timing. Some providers hold new accounts’ funds for days or weeks; others pay out on a rolling schedule. Cash flow, not the percentage, is what hurts a young store.
- Chargeback fees. A disputed transaction typically costs a fixed fee on top of the refunded amount, win or lose. High-dispute categories should weigh this heavily.
- Monthly and gateway fees. A “no monthly fee” processor can still cost more than a $25/month gateway once your volume is high enough that the per-transaction percentage dominates.
The main options, side by side
| Provider | Monthly fee | Online card rate (US standard) | Best for |
|---|---|---|---|
| Stripe | None | 2.9% + 30¢ (+~1% on international cards) | Online-first stores, developers, global selling |
| PayPal | None for standard checkout; Advanced ~$5; Pro ~$30 | Around 2.9% + 30¢ (varies by product/region) | Stores wanting the trusted PayPal button at checkout |
| Square | None | ~2.9% + 30¢ online; 2.6% + 10¢ in person | Businesses that sell both in store and online |
| Authorize.net | ~$25 | 2.9% + 30¢ (All-in-One), or gateway-only + your own merchant rate | Established stores with a separate merchant account |
| Adyen | No standard monthly fee, but a minimum monthly invoice applies | Interchange-plus; setup costs apply | High-volume and enterprise merchants |
Read this as a starting shortlist, not a verdict. PayPal in particular prices different products (standard checkout, advanced card processing, wallet payments) at different rates that vary by country, so confirm the exact figure for your setup. Adyen’s interchange-plus model and minimum invoice make it cheaper per transaction at scale but rarely worth it below roughly six figures of monthly processing.
Match the gateway to your stage, not the hype
If you’re launching, pick whatever your store platform integrates natively — usually Stripe, PayPal or Square — and don’t over-optimise a 0.1% rate difference on revenue you don’t have yet. If you sell in person and online, Square’s lower card-present rate is a genuine saving. If you’re scaling past mid-six figures a year, that’s the point to model interchange-plus pricing (Adyen, or a negotiated merchant account behind Authorize.net) against your flat-rate bill, because a fraction of a percent now equals real money. Offering both a card field and a PayPal button is also a proven way to recover buyers who don’t want to type their card — the convenience often pays for the extra integration.
Don’t forget security and the checkout experience
Whichever gateway you choose, it has to be PCI-compliant and should support strong customer authentication for the regions you sell into. Favour gateways that let the customer pay without leaving your site (or that return them smoothly if they do), because every redirect and re-entry is a place orders die. The cheapest gateway that adds friction at checkout will cost you more in abandoned carts than it saves in fees.
Frequently asked questions
Is the cheapest per-transaction rate always the best deal?
No. For a low-volume store, a flat 2.9% + 30¢ with no monthly fee usually beats a lower percentage that carries monthly and gateway charges. The percentage only becomes the deciding factor once your volume is high enough to outweigh fixed costs.
Do I need a separate merchant account?
Not to start. All-in-one providers like Stripe, Square and PayPal include one. A dedicated merchant account (often paired with Authorize.net) becomes worth the extra admin mainly at higher volumes, where negotiated rates can beat flat pricing.
Can I offer more than one gateway?
Yes, and many stores do — a card field plus a PayPal button is common. It captures shoppers who trust one method over the other, though you’ll reconcile payouts from two dashboards.
A gateway choice only pays off if the rest of the funnel holds up — see our guides on protecting your store and customer data and on reducing checkout friction to lift conversions to make sure the payment step doesn’t leak the sales you worked to win.
