The internet is saturated with online payment services. With so much to choose from, you may want to stick with what you know. PayPal has become a household name, but should you rely on it for your business needs? Although it is the popular option, countless complaints about frozen accounts and lost funds are enough to steer anyone to other options.
What should I look for in an online payment service?
With the rising prevalence of identity theft, any business owner—and customer, for that matter—would be concerned with how secure an online payment service is. Look for reliable encryption of customer information, and then check out the convenience of these services. Can you use the service on a mobile application? How much do you need to know about website coding?
And, of course, most of these services come with some additional charge tacked onto each transaction. When you’re looking for the best online payment service, you ought to pay attention to payment options, fees, and authorization charges, as well as whether or not the service is actually free.
Top 5 Online Payment Services
Google Wallet
Price: Free
Transaction Fees: 2.9% on every card transaction
Google Wallet is a great option for mobile transactions, whether they occur inside your application or on a mobile browser. You’ll be able to create gift cards and special discounts for your customers to use within the service, and payment information is kept under lock and key. Sending or transferring money from a bank account is free, but card transactions have a 2.9% additional charge.
Amazon Payments
Price: Free
Transaction Fees: 2.9% + $0.30 authorization fee
Have you ever seen the yellow “Login with Amazon” button while you were online shopping? Amazon Payments allows your customers to checkout using their preexisting Amazon accounts, offering the protection users know and trust. Even though customers are using their Amazon login, the entire process stays on your business’s site. Choose between an easy-to-implement pop-up option or, with some programming magic, use an on-page “Login and Pay with Amazon” feature. Transactions have a 2.9% charge and an authorization fee of $0.30. International customers have a 3.9% processing fee.
PaySimple
Price: $39.95 a month
Transaction Fees: $2.39% plus $0.29; $0.55 for eChecks
Among the other online payment services on our list, PaySimple shines due to the sheer number of services it offers. If you need a solid platform that can handle recurring billing, check out PaySimple. Originally founded as a recurring billing service, PaySimple now offers a robust suite ranging from eCheck support, eInvoicing, and even a basic CRM service. You can run PaySimple on your mobile devices, too. Unfortunately, while PaySimple technically has a payment system, it isn’t their strong suit.
Dwolla
Price: Free, with premium packages available
Transaction Fees: Transactions under $10 are free; transactions $10 and over have a $0.25 fee
Many online payment services have a small percentage of the transaction added as a fee. If you’re tired of seeing those percentage fees, you’ll be wowed by Dwolla. The cash-based service is free to join and doesn’t save any credit or debit card information, which massively minimizes the risk of identity theft. Dwolla is a service fit for businesses that are just getting off the ground, especially if most of their transactions are smaller. Customers will need to sign up for a free Dwolla account to send and receive payments.
Shopify
Price: $14 to $179 a month, depending on package
Transaction Fees: 2.9% + $0.30 to $2.4 + $0.30, depending on package
Shopify allows business owners to create a full-fledged online storefront, complete with their own Shopify payment system. If you opt for their in-house payment service, transaction fees are waived in favor of one flat rate for all card types. You can also sell products in-person using the Shopify card reader. This service is particularly attractive to those who lack the coding skills to build a website. Business owners can use Shopify’s user-friendly web-building service and tailor their site to their liking, thanks to the countless free and subscription-based applications Shopify supports.
