14 Mar Best Payment Gateways in the US 2023
Payment gateways play a vital role in online transactions by allowing businesses to securely and effectively process online payments. Various payment gateways in the US provide secure payment processing solutions to cater to the needs of businesses of all sizes. They facilitate various payment methods such as credit and debit cards, bank transfers, mobile payments, and e-wallets, ensuring businesses can accept customer payments anytime and anywhere. Regardless of the business size, Best Payment Gateways in the US 2023 can meet its payment processing requirements.
Payment Gateway – The Basics
Payment gateways act as intermediaries for secure online transactions between merchants and customers, functioning like secret agents without physical combat. Their main focus is to ensure the safety and security of customers’ financial information. Payment gateways in the US offer various digital payment options, such as online shopping, bill payments, and money transfers. The increasing number of payment gateways available in the US gives customers a wide range of choices to make secure online transactions.
Payment Gateways – Workflow
Imagine finishing a fancy dinner at a restaurant and paying for it using your phone instead of your physical wallet. This is made possible by payment gateways. Payment gateways act as intermediaries in eCommerce transactions, ensuring that the transfer of funds from customers to merchants is secure and efficient. When a customer inputs their payment information during an online purchase, the payment gateway securely processes the transaction, seeks authorization from the relevant financial institution, and notifies the merchant upon successful completion.
Best Payment Gateways in the US – Banks
Initially, third-party payment gateways existed when credit and debit cards were introduced. Since banks were responsible for managing transactions, they acted as payment gateways by establishing point-of-sale terminals and utilizing their IT infrastructure. Thus, let’s begin by exploring the banks that offer online payment gateways in the country.
- JP Morgan Chase Paymentech
Chase Paymentech is a payment processing solution offered by JPMorgan Chase Bank. It allows businesses to accept various forms of payment, including credit and debit cards, ACH payments, and gift cards. Being one of the best payment gateways in the US, it provides businesses with customizable payment processing solutions, including point-of-sale terminals, mobile payments, and e-commerce solutions.
| Setup Fee | Recurring Fee per Month | Transaction Fee | Merchant Discount Rate | Settlement Period | ||
|---|---|---|---|---|---|---|
| $300 |
|
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Varies | 1 – 2 Business Days |
| Pros | Cons |
| Offers tailored payment processing solutions for businesses of all sizes, which can include point-of-sale terminals, mobile payments, and e-commerce solutions | As with many payment processing solutions, Chase Paymentech’s fees can be higher than some competitors offering payment gateways in the US |
| Allows businesses to accept a wide range of payment options, including credit and debit cards, ACH payments, gift cards, and more | Some users have reported that Chase Paymentech’s contract terms can be restrictive and difficult to modify. |
| Provides businesses with robust reporting tools that can help them track transaction data and identify trends | Setting up a new account can take longer than some competitors, which can disadvantage businesses that need to start accepting payments quickly. |
- Bank of America Merchant Services
Bank of America Merchant Services is a payment gateway and merchant services provider offered by Bank of America, one of the largest banks in the United States. This payment gateway allows businesses to accept various payment methods, including credit and debit cards, mobile payments, e-checks, and gift cards. Bank of America Merchant Services offers a range of solutions, including countertop terminals, mobile card readers, and eCommerce integrations.
| Setup Fee | Recurring Fee per Month | Transaction Fee | Merchant Discount Rate | Settlement Period | |
|---|---|---|---|---|---|
| Varies |
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2.7% | Varies | 1 – 2 Business Days |
| Pros | Cons |
| Comprehensive payment processing solutions, including a variety of payment methods and hardware options | Customized pricing plans can make comparing costs with other payment gateways or merchant services providers difficult. |
| Strong focus on security and fraud prevention, with tools and features designed to protect businesses and their customers | It may not be the most cost-effective solution for smaller businesses or those with lower transaction volumes. |
| Robust reporting and analytics capabilities to help businesses understand their transactions and customer behavior | Limited integration options with third-party eCommerce platforms or shopping carts, which can make setup and maintenance more difficult for businesses |
- Citibank Merchant Services
Citibank is a payment gateway in the US provider offered by Citibank, one of the largest banks in the United States. This payment gateway allows businesses to accept various payment methods, including credit and debit cards, mobile payments, and e-checks. Citibank Merchant Services offers a range of solutions, including countertop terminals, mobile card readers, and eCommerce integrations. Overall, Citibank Merchant Services is a solid choice for businesses looking for a full-service payment gateway in the US, especially those already customers of Citibank.
| Setup Fee | Recurring Fee per Month | Transaction Fee | Merchant Discount Rate | Settlement Period | |
|---|---|---|---|---|---|
| Varies |
|
2.25% | Varies | 1 – 2 Business Days |
| Pros | Cons |
| 24/7 customer support and resources available to help businesses get the most out of their payment processing solutions | Limited integration options with third-party eCommerce platforms or shopping carts, which can make setup and maintenance more difficult for businesses |
| Wide range of additional merchant services offered by Citibank, including cash management and foreign currency services | Some businesses have reported difficulties with account management and customer service |
- Wells Fargo Merchant Services
Wells Fargo is one of the top payment gateways in the US that allows businesses to accept various payment methods, including credit and debit cards, mobile payments, and e-checks. It offers a range of solutions, including countertop terminals, mobile card readers, and eCommerce integrations. In addition to payment processing solutions, Wells Fargo Merchant Services offers security and fraud prevention tools, analytics, and reporting to help businesses better understand their transactions and customers.
| Setup Fee | Recurring Fee per Month | Transaction Fee | Merchant Discount Rate | Settlement Period | |
|---|---|---|---|---|---|
| Varies |
|
2.9% | Varies | 1 – 2 Business Days |
| Pros | Cons |
| 24/7 customer support and resources available to help businesses get the most out of their payment processing solutions | It may not be the most cost-effective solution for smaller businesses or those with lower transaction volumes |
| Offers easy integration with your website or app, making it easy for you to accept payments quickly and easily | Requires a contract, and the terms may not be ideal for all businesses |
Best Payment Gateways in the US – Fin-Tech Companies
Financial technology (fintech) companies utilize technology to automate and enhance financial services. Fintech companies that provide payment gateways in the US play a crucial role in the digital economy by facilitating transactions and supporting businesses in the digital age. Here are some examples of contemporary fintech companies designed to simplify transactions.
- Stripe
Stripe is a popular fintech company that offers a payment gateway and other tools to help businesses manage their online transactions. It is known for offering a robust and user-friendly payment gateway in the US. It accepts multiple payment methods and currencies and provides tools for managing subscriptions, fraud detection, and more.
| Function | Focus Area | |
|---|---|---|
| To accept payments from customers through various channels, such as credit and debit cards, PayPal, and digital wallets |
|
| Pros | Cons |
| Stripe is known for its ease of use, with an intuitive user interface that makes it easy to set up and manage payments | Can experience technical issues that can result in failed transactions or other problems |
| Uses advanced security measures, such as two-factor authentication and fraud detection, to protect both you and your customers from fraudulent transactions | Primarily offers support via email, which may not be ideal for all users. Some users have reported difficulty getting in touch with customer support. |
| Offers a range of features beyond payment processing, including invoicing, subscription management, and more | Some users have reported that Stripe has limited customization options, which can make it difficult to integrate the payment process seamlessly with your website or app |
- PayPal
PayPal is a well-known fintech company that offers one of the best payment gateways in the US for businesses of all sizes. It’s easy to integrate and offers a range of payment options, including credit and debit cards, PayPal balances, and more. It provides businesses with a secure and convenient way to process payments, as it uses advanced security measures to protect the sensitive information of both buyers and sellers.
| Function | Focus Area | ||
|---|---|---|---|
|
|
| Pros | Cons |
| It is widely accepted as a payment gateway by many businesses and customers worldwide, making it a convenient and familiar payment option for many. | PayPal may hold a business’s funds for a period of time, which can be inconvenient and frustrating for businesses that need access to their funds quickly. |
| It is known for its quick and easy setup process, allowing businesses to start accepting payments online within minutes. | Its customer service can be slow and difficult to access, particularly for businesses that need more personalized support. |
| It uses advanced security measures to protect buyers and sellers from fraud and other security risks. |
- Square
Square was founded in 2009 and is headquartered in San Francisco, California. Being one of the top payment gateways in the US, Square is a fintech company offering various other tools for managing payments and financial transactions. Its payment gateway is easy to use and accepts various payment methods. Overall, Square is a versatile and user-friendly payment gateway that provides businesses with various financial services to help them manage and grow their businesses.
| Function | Focus Area | ||
|---|---|---|---|
|
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| Pros | Cons |
| Square’s fee structure is flexible and transparent, with no monthly fees or contracts. This can benefit businesses that process smaller transactions or have fluctuating sales. | Square’s customer support can be limited, particularly for businesses that require more personalized support or assistance with complex issues. |
| It offers a fast and easy setup process, allowing businesses to start accepting payments quickly. | Its fraud prevention measures can sometimes result in account holds, which can be frustrating for businesses that need access to their funds quickly. |
| Square’s payment gateway in the US is known for its simplicity and ease of use, making it a popular choice for small businesses and startups. |
- Braintree
Braintree is a payment gateway and financial technology company that offers businesses a range of solutions for processing payments. The company was founded in 2007 and is headquartered in Chicago, Illinois. Braintree is a fintech company that offers its payment gateway in the US robust features, such as fraud protection, data security, and recurring billing. Integrating with many eCommerce platforms is easy and supports multiple payment methods.
| Function | Focus Area | ||
|---|---|---|---|
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| Pros | Cons |
| Supports a wide range of payment methods, including credit and debit cards, digital wallets, and bank transfers | Some users have reported issues with Braintree’s customer support, which can be slow to respond to inquiries or requests for assistance. |
| It provides businesses access to its developer tools, which can be used to customize payment processing solutions and integrate them into existing systems. | Braintree’s chargeback policy can be difficult to navigate, and some users have reported frustration with disputing chargebacks. |
| It offers robust fraud detection and prevention tools, helping businesses to avoid chargebacks and disputes. |
Here’s a little summary of some of the top payment gateways in the US for 2023:
| Payment Gateway | Pros | Cons | Transaction Fee | Setup Cost | |||||
|---|---|---|---|---|---|---|---|---|---|
| PayPal |
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| Stripe |
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| Worldpay |
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Provides a seamless checkout experience for customers |
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Free |
Also Read: Best Payment Gateways in the UK 2023
Conclusion
Payment gateways are essential for eCommerce businesses, offering a safe and convenient way to accept online customer payments. However, with so many options available, choosing the right Best Payment Gateway in the US 2023 can be challenging. It is critical to make an informed choice since all your business transactions will go through it. This guide has provided an overview of some of the most popular payment gateways in the US, catering to the needs of businesses, experienced online shoppers, and those new to the online world. Please contact us if you need help deciding which payment gateway best suits your business requirements!
Frequently Asked Questions
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What is a payment gateway?
A payment gateway is a technology that enables online merchants to securely and efficiently process electronic payments, such as credit card transactions, through their website or mobile app.
How does a payment gateway work?
When a customer submits their payment information on an online store, the payment gateway encrypts the information and sends it to the payment processor for authorization. The processor then communicates with the customer’s bank to verify the transaction and send the funds to the merchant’s account.
How do I choose the right payment gateway for my business?
When choosing a payment gateway, consider factors such as transaction fees, security features, ease of use, integration options, and customer support. It’s also essential to select a payment gateway that supports the payment methods your customers prefer.
Are there any transaction fees associated with payment gateways?
Yes, most payment gateways charge a per-transaction fee in addition to a percentage of the transaction amount. Fees can vary depending on the payment gateway and the type of transaction.
What security measures do payment gateways have in place to protect sensitive data?
Payment gateways use a variety of security measures, such as encryption, tokenization, and fraud detection tools, to protect sensitive data from unauthorized access or theft.
Can payment gateways be integrated with my existing website or eCommerce platform?
Yes, most payment gateways offer integration options with popular eCommerce platforms and website builders. It’s essential to check the compatibility of the payment gateway with your existing setup before choosing a provider.
What happens if a customer disputes a charge?
If a customer disputes a charge, the payment gateway provider will work with the merchant and the customer’s bank to investigate the issue and resolve the dispute. The merchant may be required to provide evidence of the transaction to support their case.
Do I need a merchant account to use a payment gateway?
Yes, most payment gateway providers require you to have a merchant account to process transactions. However, some providers, such as PayPal, offer integrated merchant accounts as part of their service.