10 Best Payment Gateways | Detailed Overview And Comparison

Smooth and secure payment processing is the lifeblood of any successful business. But with so many payment gateways out there, picking the right one can be tough. But don't worry, brave entrepreneur! This guide is here to help you navigate the world of payment gateways and find the best fit for your business.

We'll break down how payment gateways work, explore the different types available, and share the key things you need to know when choosing one. We'll also showcase some of the best payment gateways out there today—seeing their pros, cons, and best fit. By the end of this post, you'll have the knowledge to select a payment gateway that simplifies your processes, enhances your security, and supports your business growth. Let's dive in and make managing payments easier for you!

What is a Payment Gateway?

A payment gateway is a service that enables businesses to accept online payments securely. It acts as a bridge between the business, the customer, and their banks. Think of it as the online equivalent of a point-of-sale terminal in a physical store: when you swipe your card, the POS machine processes your payment quickly. A payment gateway does the same job for online transactions, ensuring everything runs smoothly and safely.

Might also want to check this blog post “What Is Payment Aggregator vs Payment Gateway? | Exploring the Key Differences”

But how does it work? Here's how the process looks like in simple steps:

1. Customer Makes a Purchase: The customer picks out their items or services, goes to the checkout page, and provides their payment details.
2. Secure Transmission: The payment gateway securely encrypts this information and sends it to the acquiring bank (the merchant's bank).
3. Payment Authorization: The acquiring bank sends the transaction details to the customer's card network (e.g., Visa or MasterCard). The card network then contacts the issuing bank (the customer’s bank) to validate the transaction.
4. Approval or Decline: The bank reviews the customer’s account and either approves or declines the transaction based on available funds and other security checks.
5. Notification: The payment gateway sends this response to the website, informing both the customer and the merchant about the transaction status.

This entire process happens within seconds. Now, with so many payment gateways available, selecting the right one for your business can be challenging. Don't worry, though. We've got you covered. In the next section, we'll break down the different types of payment gateways and help you find the perfect fit for your business.

Main Types of Payment Gateways

Not all payment gateways are created equal. There are 4 main types of payment gateways, each catering to different business needs and technical capabilities.

Types of Payment Gateways

• Hosted Payment Gateway
• API-hosted Payment Gateway
• Payment Widget/ Embedded Payment Page

Here's a brief overview of the four key types:

Hosted Payment Gateway

A hosted gateway is like a pre-built checkout page. You simply plug it into your website, and your customers are redirected to a secure payment portal handled by the gateway provider. It's straightforward and reliable.

Pros: Super user-friendly, PCI compliance handled by the provider, often a good fit for beginners.

Cons: Less customization compared to other options, which might not align with your brand's look and feel. Additionally, redirecting customers to a separate page for checkout could decrease conversion rates, as some users might abandon the purchase during this transition.

API-Hosted Payment Gateway

This gateway integrates directly into your website using an API (code that allows applications to talk to each other), allowing customers to complete transactions without leaving your site.  It offers more flexibility to tailor the checkout experience to your brand. It’s important to note that using API-hosted gateways often requires merchants to be PCI compliant, following strict security standards. This can be complex and might not be ideal for startups that lack the resources for a dedicated IT team.

Pros: Greater control over the look and feel of checkout, perfect for businesses with specific needs.

Cons: Requires some technical expertise to set up and integrate, as well as PCI DSS compliance.

Payment Widget/Embedded Payment Page

This payment solution offers the best of both worlds: control and compliance. You can customize the payment form to fit your website's design, while ensuring that all sensitive data is securely handled by the payment gateway's servers for processing.

Pros: Offers a balance between customization and security, ideal for SMEs using popular ecommerce platforms.

Cons: While easier than server-to-server integration, some technical knowledge might be required for setup.

Now that you know the different gateways available, let's explore the leading options in the next section!

The Top 10 Best Payment Gateways 

Choosing the best payment gateway can make a world of difference for your business. Below are ten of the best payment gateways, each with their own pros, cons, and unique features. Let's dive in!

CatalystPay

We couldn't leave ourselves out! Unlike a one-size-fits-all solution, we operate more like a boutique payment partner. We take pride in understanding your business's unique needs and crafting a custom solution to fuel your growth. This can encompass everything from a comprehensive financial suite (including business accounts, coming soon!) to payment processing services. Our extensive network and global reach integrate with over 25 processors and acquiring banks, support 150+ processing currencies, offer 15+ settlement currencies, and accept various payment methods. Beyond the basics, CatalystPay provides valuable industry insights and a dedicated support team to guide you through all the complexities of payments.

Pros:

• Seamless Onboarding & Exceptional 24/7 Customer Support
• Extensive Integration Options (server-to-server, payment widgets, plugins, payment links)
• Transparent Pricing
• Robust Security Features with Anti-Fraud Protection
• Revenue-Boosting Features (smart routing, recurring billing, one-click payments, faster checkout)

Cons:

• Slightly longer onboarding due to customization
• Some technical knowledge required for integration (not entirely no-code).

Best For: CatalystPay is ideal for SME online businesses seeking a partner that understands their specific needs, and need a personalized payment gateway with exceptional 24/7 customer support. It is perfect for businesses in ecommerce, SaaS, crypto, gaming, and subscription-based models.

Stripe

Stripe is a top choice for businesses when it comes to payment gateways, and for a reason. Its developer-friendly API and wide range of integration options make it a hit, especially among tech-savvy companies. Stripe supports many payment methods and currencies, making it perfect for businesses that operate globally. It offers subscription billing, customizable checkout experiences, and detailed analytics. 

However, it's not entirely without challenges. For those who aren't tech experts, Stripe's complexity can be a significant hurdle. Additionally, its fees can be high for certain types of transactions. 

Pros:

• Multiple integration options
• Transparent pricing
• Excellent mobile payment experience
• Trusted brand

Cons:

• Higher fees for some transactions
• Complex setup for non-developers
• Account freezes reported
• Limited customer support

Best for: Stripe is ideal for businesses of all sizes, especially those that need a customizable payment solution and have the tech skills to use its advanced features. It's perfect for eCommerce stores, SaaS companies, and startups that want to grow.

Adyen

Adyen is a flexible payment platform that brings together payment processing, data analytics, and financial management in one robust tool. It is a fantastic option for businesses operating worldwide. It supports multi-currency transactions and provides advanced fraud protection, ensuring secure and seamless international payments. Designed to manage high transaction volumes, Adyen's platform is ideal for large enterprises.

But it does come with some drawbacks. The costs are higher, and the setup can be quite complex, which might not be ideal for smaller businesses.

Pros:

• Extensive payment method support
• Omnichannel capabilities
• Advanced security features

Cons:

• Higher costs
• Complex setup
• Minimum transaction requirements
• Limited customization

Best for: Adyen is ideal for big businesses and enterprises that handle a lot of transactions and have complex billing needs. It's perfect for global eCommerce companies, multinational corporations, and big businesses with subscription services like Uber and Microsoft.

Paypal

PayPal is one of the most well-known payment gateways worldwide, trusted by millions. Its user-friendly interface and strong buyer protection make it a favorite among small businesses and individual sellers. PayPal supports various payment methods, including credit cards, debit cards, and PayPal accounts, offering flexibility for customers.

However, there are a few downsides. PayPal's transaction fees are relatively high, and its customization options are limited. Additionally, users sometimes face issues with account holds, which can disrupt business operations.

Pros:

• Easy to set up
• Trusted brand
• No contracts or termination fees
• Strong buyer protection

Cons:

• High transaction fees
• Limited customization
• Potential account holds

Best for: PayPal is perfect for small businesses and startups. It's a simple, reliable payment solution that customers trust. Sure, the transaction fees are a bit higher, but the ease of use is worth it.

Authorize.net

Authorize.net, owned by Visa, is an excellent choice for businesses of all sizes, offering robust security features and flexible payment options. Its advanced fraud detection suite ensures secure transactions, and it supports various payment methods such as credit cards and eChecks. Additionally, Authorize.net's outstanding customer support swiftly resolves any issues, enhancing overall user experience.

However, the higher monthly fees and complex initial setup can be off-putting for some users. The interface might feel a bit outdated compared to more modern solutions, but it still remains effective and reliable.

Pros:

• Highly customizable
• Advanced fraud detection
• Flexible payment options

Cons:

• Higher monthly fees
• Complex initial setup
• Requires technical expertise

Best for: Authorize.net is perfect for established businesses and platforms with a merchant account already in place. If you need a secure, customizable payment gateway with top-notch fraud detection, this is for you. It's also great for those wanting extra payment options and detailed reporting features.

Checkout.com

Checkout.com delivers a comprehensive payment solution that combines a payment gateway with merchant account services. It’s perfect for international businesses, operating in 159 countries. With flat-rate pricing and various integration options, including API and self-hosted solutions, it’s flexible and user-friendly.

Designed for high-volume brands operating across multiple regions, Checkout.com supports a range of payment methods. Whether it’s credit and debit cards, SEPA transfers, digital wallets, or PayPal, it ensures a seamless checkout experience for customers around the globe.

Pros:

• Comprehensive payment solutions
• High scalability
• Strong fraud prevention

Cons:

• Premium pricing
• Complex setup
• Requires technical expertise

Best for: Checkout.com is perfect for established eCommerce brands with a global customer base looking for a reliable and scalable payment solution. It's especially great for high-volume businesses operating in multiple regions, offering competitive pricing and strong support for various payment methods.

Mollie

Mollie is known for its straightforward integration and transparent pricing, making it a great option for small to medium-sized businesses. It supports various payment methods, including major credit cards and local payment options, enhancing the customer experience. Mollie's platform is user-friendly, focusing on simplicity and efficiency.

On the downside, Mollie may lack some of the advanced features and customization options that larger enterprises might need.

Pros:

• Easy integration
• Transparent pricing
• Supports multiple payment methods
• No lock-in contracts or minimum charges

Cons:

• Limited advanced features
• Fewer customization options
• Less suitable for large enterprises

Best for: Mollie is perfect for European businesses, especially startups and SMEs, who need a simple payment solution. It’s easy to set up and offers transparent pricing. Whether you use WordPress, Magento, or Wix, Mollie simplifies accepting various payment methods.

ACI Worldwide

ACI Worldwide is known for its high security and versatile payment options, making it perfect for businesses that prioritize transaction safety. It supports a wide range of payment methods and offers strong fraud prevention tools. ACI Worldwide also provides excellent customer support, ensuring issues are resolved promptly.

The downside is that the service is relatively expensive and has a complex setup process, which might not be ideal for smaller businesses. 

Pros:

• High security
• Flexible payment options
• Strong customer support

Cons:

• Higher costs
• Complex setup
• Limited customization

Best for: ACI Worldwide is a great fit for financial institutions, big corporations, and businesses that need top-notch security and flexible payment solutions. It's ideal for companies requiring robust fraud prevention tools and great customer support.

myPOS

myPOS is a breeze for businesses across Europe. It's user-friendly, with a setup that's simple and fees that are clear. No long-term contracts or monthly fees — just quick access to your funds.

You can accept all sorts of payments: credit/debit cards, NFC, QR codes, you name it. The best part? Instant settlement means you get your money right away. Sure, it might lack some fancy features, but if you value simplicity and efficiency in payment processing, myPOS has got you covered.

Pros:

• Simple setup and transparent fees
• Instant settlement
• Multi-currency support

Cons:

• Limited customization options
• Higher fees for certain transactions
• Slower customer service response times
• Lacks advanced features

Best for: SMEs and businesses needing immediate fund access and versatile payment options, especially in Europe.

Nuvei

Nuvei offers highly customizable payment solutions and a wide range of payment options, making it perfect for businesses with specific needs. Plus, with flexible pricing, it fits businesses big and small, offering plans you can tweak to your needs. The platform features strong fraud prevention tools, ensuring secure transactions. One of Nuvei’s major strengths is its ability to tailor solutions to fit various business models.

On the flip side, the higher costs and complex setup process can be challenging for smaller businesses or those without technical skills.

• Easy integration
• Wide range of payment options
• Strong fraud prevention

Cons:

• Higher costs
• Requires technical setup
• Complex fee structure

Best for: Nuvei is ideal for custom solution seekers and businesses with specific payment needs. It's perfect for companies requiring highly customizable payment solutions, strong fraud prevention, and a variety of payment methods to support different business models and international transactions.

What You Need to Consider When Choosing a Payment Gateway

Choosing the right payment gateway can be a hard task. Several factors need careful consideration to find the best fit for your business. Here are the key aspects you need to have in mind:

 

Transaction Fees

Understanding how work is important. Usually, these fees are either a percentage of the transaction (like 2.9%) plus a fixed amount per transaction (like $0.30). Some gateways might also add extra charges for international transactions or currency exchanges. To find the best pricing for your business, look at how many transactions you process and the average amount per transaction. This will help you pick the most cost-effective gateway, so you don't spend too much on fees. 

Security Features

When picking a payment gateway, the security features should be one of your main concerns. Ensure it’s PCI DSS 4.0 compliant to meet industry standards for cardholder data protection. Look for features like advanced fraud prevention and data encryption. These tools help keep sensitive information safe, protect your business from fraud, and build customer trust.  

Ease of Use and Integration

Having a user-friendly interface and seamless integration with your current business tools is crucial. The best payment gateways provide easy setup and intuitive dashboards, simplifying transaction management. Make sure the gateway works well with your platform, accounting software, and other business systems. This smooth integration reduces the learning curve for your team, boosts operational efficiency, and minimizes disruptions to your business processes.

Supported Payment Methods

It's important to offer multiple payment options to meet customer preferences. Choose gateways that accept credit and debit cards, digital wallets such as Apple Pay and Google Pay, and local payments methods if needed. This flexibility improves customer satisfaction and can lower the chances of cart abandonment. Remember to also consider the fees and transaction limits for each payment method when making your decision.

Global Reach

If your business serves an international market, opt for a payment gateway that handles global transactions and multiple currencies. This feature allows customers from various regions to make purchases easily. You can also avoid costly conversion fees and provide a more seamless checkout experience for your international customers. 

Customer Support

Having reliable customer support is key for quickly resolving payment-related issues. Choose payment gateways that offer 24/7 support via phone, email, and live chat. Great support reduces downtime and ensures issues are resolved swiftly, keeping your payment processes running smoothly.  

Final words

We've dived deep into the world of payment gateways, exploring the different types and the best options. When making your decision, consider your technical expertise, target market, and budget. Remember, security is very important – choose a gateway that prioritizes PCI compliance and strong fraud prevention. Don't get caught up in flashy fees; compare pricing structures carefully. Finally, ensure a smooth user experience with an easy-to-use interface and seamless integration with your existing platform.

 

One-size-fits-all solutions rarely work in business. At CatalystPay, we get that. We focus on understanding your unique needs while tackling the common pain points holding you back. This lets you concentrate on your growth, not on payment processing headaches. Curious how we can help? Reach out to our team and discover how CatalystPay can fuel your success!