Best Payment Gateway in US

What are Payment Gateways?

A payment gateway serves as a vital intermediary in the online payment process, facilitating the secure transfer of payment information between customers, merchants, and financial institutions. It acts as a virtual bridge that connects the various components of a transaction, including the customer's payment details, the merchant's website or point-of-sale system, and the acquiring bank or payment processor. By encrypting and transmitting payment data securely, payment gateways help mitigate the risk of fraud and ensure the confidentiality of sensitive information during electronic transactions.

One of the key functions of a payment gateway is to authorize and process payments in real-time. When a customer initiates a payment, the gateway captures the payment information and forwards it to the relevant financial institution for authorization. This involves verifying the customer's identity, checking for available funds, and confirming the transaction's compliance with security protocols. Once authorized, the payment gateway facilitates the transfer of funds from the customer's account to the merchant, completing the transaction seamlessly and securely.

How do Payment Gateways work?

Payment gateways work by securely transferring card details from the customer to the merchant's bank. Here's what exactly happens, step by step:

• Customer Makes a Purchase: When you buy something online and enter your card details such as the card number and expiration date that information goes to the payment gateway.
• Encryption and Fraud Checks: The payment gateway encrypts your card details to keep them safe and checks for any signs of fraud.
• Sending Information to the Acquirer: The payment gateway sends your encrypted card details to the acquirer, which is the bank that processes the payment on behalf of the merchant.
• Card Schemes and Issuer: The acquirer forwards your payment information to the card schemes (such as Visa or Mastercard), which then pass it on to your bank, known as the issuer. Your bank checks to see if you have enough money in your account and if the transaction is legitimate.
• Authorization: If everything checks out, your bank approves the transaction and sends a message back through the card scheme to the acquirer.
• Payment Confirmation or Alternate Method: Depending on the message from your bank, the payment gateway either confirms the payment and you proceed with your purchase, or it asks for another payment method.
• Settlement Process: After approval, the acquirer collects the payment from your bank and holds it in the merchant's account. The actual transfer of funds depends on the agreement between the merchant and their payment service provider.

How do we evaluate and select the best Payment Gateways?

At Techjockey.com, we meticulously review and handpick premium payment gateway solutions for your convenience. Our evaluation process takes into account essential factors aimed at offering customized platforms that meet your unique needs. We assess aspects such as service provider reputation, available features, customer feedback, and pricing transparency. By thoroughly analyzing these criteria, we compile a comprehensive list of the top payment gateway options. This curated selection, showcased in a user-friendly table format later in the article, empowers you to make a well-informed decision that suits your specific requirements.

Payment Gateways statistics

• Online Payment Methods: Approximately 27% of consumers in the United States utilize online gateways such as Amazon Pay and PayPal for their usual transactions.
• Digital Payment Transaction Trends: Digital commerce constitutes a significant portion, accounting for about 63% of the total value of digital payment transactions.
• Growth Projections: From the period spanning 2020 to 2025, digital payment transactions are expected to experience a growth rate of approximately 15.2% in the United States.
• Future Spending Patterns: By 2025, it is anticipated that the average expenditure per user on digital commerce in the USA will reach approximately $11,755.
• Voice Assistant Usage: By the year 2024, it is estimated that about 31% of consumers in the USA will have utilized voice assistants to facilitate payments.
• Security Concerns: Despite the increasing adoption of voice assistants for payments, a significant majority, comprising 74% of consumers in the USA, express reluctance due to security apprehensions.

Main types of Payment Gateways

Payment gateways are commonly categorized into four main types: hosted payment gateways, API-hosted payment gateways, self-hosted payment gateways, and local bank integration gateways. Each type is explained below:

• Hosted Payment Gateway: This type of payment gateway is hosted by a third-party service provider. When a customer makes a purchase, they are directed to the provider's secure payment page to complete the transaction. This method is straightforward for businesses to implement, as they don't need to handle sensitive payment information directly.
• API-Hosted Payment Gateway: With an API-hosted payment gateway, customers can complete transactions directly on the merchant's website. This type of gateway uses an application program interface (API) to securely process payments. It offers merchants more control over the checkout process and allows for customization to match their branding and user experience goals.
• Self-Hosted Payment Gateway: Self-hosted payment gateways enable businesses to maintain full control over the payment process. Transactions are managed directly within the business's infrastructure, ensuring a secure and customized payment journey. This type of gateway is ideal for businesses that prioritize data security and want to have complete control over the checkout process.
• Local Bank Integration Gateway: Local bank integration gateways facilitate online payments by integrating with local banks. This allows businesses to process transactions specific to their region, ensuring seamless payment processing for customers. While this type of gateway may have fewer features compared to others, it typically serves as a practical solution for businesses looking to accept payments online.

Top Payment Gateways

Payment Gateways Cost
Software	Features	Prices
Amazon Pay	Alerts/Notifications, Data Security, Debit/Credit Card Processing, Fraud Detection, Mobile Access, Mobile Payments, Multiple Payment Options	Starting at 2.9% + $0.30 per transaction, No monthly charges
Stripe	Online payments, Prebuilt payment form, Customizable payments UIs, No-code payments, Fraud and risk management, Payments for platforms	In-person: 2.7% + $0.05, Online: 2.9% + $0.30, No monthly charges
PayPal Payflow	Manage money overview, Add cards and banks, Security and safety, Set up Direct Deposit, Add cash, Pay bills, Savings and goals, Cryptocurrency	In-person: 2.29% + $0.09, Online: 2.89% + $0.49, No monthly charges
Square	Payments, Customer service, Integrations, Inventory management, Checkout, Customisation, Ecommerce	In-person: 2.6% + $0.10, Online: 2.9% + $0.30, No monthly charges
Helcim	Accept payments faster, Customizable invoices, Mobile payments, Recurring invoicing, Customer management, Data synchronization, Hosted online store	Price On Request

Payment Gateway features

• Efficient Onboarding Process: Payment gateways typically offer a quick and hassle-free setup process, ensuring businesses can start accepting payments promptly.
• Versatile Payment Options: It's essential for payment gateways to support various payment methods, such as credit and debit cards, net banking, or UPI, catering to the diverse preferences of customers.
• Streamlined Payment Automation: Automated payment processing streamlines transactions, reducing manual efforts and minimizing the chances of errors during the checkout process.
• Tailored Subscription Plans: Payment gateways should provide customizable subscription options, simplifying recurring payments for customers based on their specific needs.
• Global Currency Support: Supporting multiple currencies enables businesses to cater to international customers, facilitating seamless transactions without concerns about exchange rate fluctuations.
• Robust Security Measures: Payment gateways must prioritize security features such as 3D-Secure authentication and encryption to protect sensitive customer data and prevent fraudulent activities.
• Mobile-Friendly Interface: A mobile-responsive interface ensures that customers can make payments conveniently from any device, enhancing the overall user experience.
• Real-Time Insights and Analytics: Access to real-time reporting and analytics tools helps businesses gain valuable insights into sales activity and customer behavior, aiding in informed decision-making.
• Responsive Customer Support: Responsive and reliable customer support services are crucial for addressing any issues or inquiries promptly, ensuring smooth transactions and customer satisfaction.
• Personalized Account Management: A dedicated account manager provides personalized assistance with account setup and integration, offering guidance and support tailored to the user's specific business needs.

Why use Payment Gateways?

• Enhanced Customer Convenience: By integrating with a payment gateway, you provide customers with the flexibility to make purchases at their convenience, benefiting both them and your business.
• Quicker Transaction Processing: Payment gateways facilitate instant payments, eliminating any delays and ensuring prompt transactions, which ultimately create a mutually beneficial scenario for both businesses and customers.
• Heightened Transaction Security: Utilizing payment gateways significantly diminishes the risk of credit card fraud, thanks to secure information transmission, adherence to PCI DSS standards, and additional security measures such as 3-D Secure.
• Building Customer Confidence: Offering a secure payment environment through payment gateways certainly builds trust among customers, encouraging them to engage in online transactions with confidence in the safety of their payment details.
• Increased Sales Opportunities: The convenience and security provided by payment gateways attract more and more customers, creating opportunities to enhance sales by delivering a seamless and trustworthy payment experience.

How to choose the best Payment Gateway for your website?

It's crucial to take into account the following factors to make an informed and prudent choice when selecting a payment gateway:

• Cost-effectiveness: You must evaluate the overall cost structure, including transaction fees, setup fees, and any hidden charges, to make sure the payment gateway aligns with your budget and precise business model.
• Data Security Measures: Prioritize payment gateways that offer advanced security features such as tokenization, SSL encryption, and PCI compliance to protect sensitive customer information.
• Platform Integration: Choose a paygateway that seamlessly integrates with your existing website or platform, ensuring a smooth checkout experience for customers.
• Diverse Payment Options: Always go for a payment gateway that supports a wide range of payment methods, including credit cards, digital wallets such as PayPal or Apple Pay, and alternative payment options like bank transfers or cryptocurrencies, to cater to diverse customer preferences.
• Responsive Customer Support: Opt for a paygateway provider that offers responsive and knowledgeable customer support, including live chat, email, and phone support, to address any issues or concerns promptly.
• Intuitive User Interface: Look for a payment gateway with an intuitive and user-friendly interface for both merchants and customers, facilitating easy navigation and seamless payment processing.
• Scalability and Flexibility: Consider the scalability and flexibility of the paygateway to accommodate your business growth and adapt to evolving payment trends and technologies.
• Positive Reputation and Reviews: Research the reputation and read reviews from other merchants to gauge the reliability, performance, and overall satisfaction with the payment gateway's services.
• Value-Added Features: Assess additional features and functionalities offered by the paygateway, such as robust reporting and analytics tools, fraud prevention measures, recurring billing options, and customizable checkout experiences, to enhance the overall payment processing experience for both merchants and customers.

How to integrate Payment Gateway into a website?

• Opt for the Right Payment Gateway: Choose a payment gateway that suits your business needs based on factors like transaction fees, accepted payment types, security measures, and compatibility with your website platform.
• Set Up a Merchant Account: Depending on the payment gateway, you may need to set up a merchant account separately or as part of the gateway setup process.
• Obtain API Keys: After setting up your account, obtain API keys, which are unique identifiers allowing secure communication between your website and the payment gateway.
• Integrate the Gateway: Depending on your website platform, integration can be straightforward using plugins or extensions provided by the gateway, or you may need to manually add code to your website.
• Test the Gateway: Use the gateway's testing environment to ensure everything works correctly prior to finally going live. This helps identify any issues and ensures a smooth customer experience.
• Go Live: Once testing is successful, you're good to go live with the payment gateway, allowing customers to make purchases securely on your website.

Who uses Payment Gateways?

• Businesses: Online businesses of all sizes, including e-commerce stores, service providers, and digital content creators, typically use payment gateways to accept payments from customers.
• Freelancers and Professionals: Freelancers, consultants, and professionals in various industries may use payment gateways to receive payments for their services from clients worldwide.
• Nonprofit Organizations: Nonprofit organizations and charities utilize payment gateways to collect donations and contributions from supporters and sponsors.
• Government Agencies: Government agencies and departments often use payment gateways to facilitate online payments for services, taxes, fines, and permits.
• Educational Institutions: Schools, colleges, and universities use payment gateways for accepting online tuition fees, course payments, and donations.
• Individual Sellers: Individuals selling products or services online, such as artists, authors, and creators, use payment gateways to facilitate secure transactions with customers.

Payment Gateways vs Payment Processors

A payment gateway collects and checks a user's credit card details to make sure they're safe before sending them to the payment processor. Put differently, it's like a security guard for online transactions.

On the other hand, payment processors help move the user's money between their bank, the store's bank, and their credit card company. It's like the messenger that makes sure the payment goes through correctly.

Gateways mainly work for online shopping and approve or decline transactions between the website and the buyer or customer. Meanwhile, processors focus on in-person transactions and communicate between the store, the buyer's bank, and the credit card company.

So, the gateways are deemed best for online purchases, while the payment processors are for in-person payments. Both are important for safe and smooth transactions!

How much does a Payment Gateway cost?

Payment gateways in the United States may initiate at a rate of 2.9% + $0.30. Nonetheless, it is crucial to recognize that this estimation is subject to variance based on various providers and the range of services they offer. Therefore, it is prudent to seek clarification from authorized vendors prior to finalizing any decisions.

Payment Gateways trends

• Rise of Cashless Transactions: Cashless transactions including credit/debit cards, mobile wallets, ACH transfers, and eCommerce transactions are expected to surge in the coming years. This shift is driven by evolving payment practices and growing customer demand for digital transactions.
• Mobile Wallet Adoption: Mobile wallets, popular for their convenience and security, are widely used for in-person and eCommerce transactions. They allow users to securely store their cards and make hassle-free transactions, reflecting a broader trend towards digital payment options.
• Contactless Credit Card Usage: Contactless credit cards are gaining popularity as a safer payment solution. They process faster, reduce card wear, and offer enhanced security through end-to-end encryption. This trend is supported by the increasing issuance of contactless cards by major financial institutions.
• Peer-to-Peer (P2P) Payments: P2P payment apps such as Venmo and PayPal enable users to transfer money easily between accounts. While primarily used for individual transfers, some businesses integrate P2P payments to enhance the customer experience, despite potential drawbacks like longer processing times and higher fees.
• Buy-Now-Pay-Later (BNPL) Services: BNPL services allow customers to split purchase payments into installments, often without interest. This option appeals to consumers, especially during prime shopping seasons, potentially boosting business revenue. However, businesses should consider factors such as credit checks and payment cadence when implementing BNPL.
• Cryptocurrency and Cross-Border Payments: The use of cryptocurrency for payments is also on the rise, driven by both investment potential and transactional needs. Major companies such as Microsoft and Tesla now accept cryptocurrencies, indicating a growing mainstream acceptance of digital currencies in the payments landscape. Businesses must stay informed about these evolving trends to navigate the complex digital payment ecosystem successfully.