Payment gateway comparison basics come down to one idea: price is only one line on a long list. A payment gateway is the service that passes a customer's card details to your bank and sends back a yes or no. Two gateways can look alike on a sales page and still cost very different amounts once you sell every day. This guide shows five things to compare, in the order most sellers feel them.
1. Fees, and what is inside them
Start with the fee page, which most providers publish. Look for the rate per sale, often a percentage plus a fixed amount. Then look for the extras. Some providers charge a monthly fee, a setup fee, a fee for refunds, or a higher rate for cards issued abroad or for currency conversion. Write each cost on one sheet.
Next, run your own numbers. Take your average order and your monthly sales count, and work out the total cost for each gateway. A low rate with a high fixed fee can cost more on small orders. A flat monthly fee can be cheap for a busy shop and wasteful for a new one. Ask whether the price is a single blended rate or passes through the card network costs, since the second kind can change by card type.
Sources: provider fee pages are public; PCI Security Standards Council, merchant guidance.
2. Payout timing
Fees tell you what you keep. Payout timing tells you when. Most gateways pay out on a set schedule after a sale, and the wait can be a day or several days. New accounts often face a longer hold at first. A longer hold ties up cash that you may need for stock or ads.
Check three points. How many days until funds reach your bank? Are there weekends or holidays that add days? Can a provider hold your money if it sees a risk? Read the terms for reserve and hold language before you sign, not after your first big sale.
Sources: provider terms of service pages, which set out each payout schedule.
3. Payment methods and markets
A gateway is only useful if your buyers can pay the way they like. Cards are common everywhere. In many Asian markets, customers also use bank transfers, QR codes and e-wallets. If a large share of your buyers prefer a wallet, a gateway without it will lose sales at checkout.
List the countries you sell to and the methods you need for each. Check which currencies the gateway can accept, and whether you can be paid out in your own currency. Also check that your business type and country are supported at all. Some providers limit certain sectors or do not open accounts in every market.
Sources: provider supported-methods and country pages.
4. Chargebacks and disputes
A chargeback happens when a cardholder questions a payment with the bank that issued the card. The payment is reversed right away, and the money plus a dispute fee can be taken from you. You then get a chance to send evidence. Gateways differ in how they guide you, how long you have to reply, and what they charge per dispute.
Ask each provider three questions. What is the dispute fee? How do you submit proof, such as order records, delivery tracking and customer messages? What tools help you prevent disputes? Keep good records of every order. Clear product descriptions, a visible refund policy and a recognisable name on the card statement all cut down on disputes.
Sources: Stripe documentation, "Disputes"; card network rules as described by providers.
5. Card security standards
The card industry runs a security standard called PCI DSS. It applies to any business that stores, processes or transmits card data, whatever its size. Version 4.0 was published by the PCI Security Standards Council on 31 March 2022. The older version 3.2.1 was set to retire on 31 March 2024, so any provider still describing itself against the old version deserves a question. A limited update, version 4.0.1, followed in June 2024.
For a small seller, the most useful step is to cut how much card data touches your own systems. When the gateway hosts the payment page, your site may never see the card number. That usually means a lighter yearly self-assessment for you. Whether you must report your status is set by the card brands and your bank, so ask your bank or provider. Also ask the gateway for proof of its own compliance.
Sources: PCI Security Standards Council, press release of 31 March 2022; PCI Security Standards Council, merchant guidance.
A simple way to decide
Put the five points in a table with one column per gateway. Score each from one to five for your own business, not in general. A shop with low sales may weigh fees and setup most. A shop with large orders may weigh payout timing and disputes. Run a small test with real orders before you move your whole checkout. You can switch later, but the work of changing a checkout is easier when you chose with care.
Sources: PCI SSC press release, 31 March 2022; PCI SSC, merchants; Stripe, Disputes.