Ecommerce Payment Processing Guide and Top Providers 2024

Ecommerce has become an integral part of modern business. With the rise of online shopping, more and more businesses are turning to ecommerce as a way to reach a wider customer base and increase sales. However, with this growth comes the need for efficient and secure payment processing methods.

In this article, we will dive into the world of ecommerce payment processing – what it is, how it works, and why it is important for businesses today. We’ll also show you our top ecommerce payment processing solutions.

We'll also talk about how Wise Business could help you receive and transfer funds across currencies at low cost.

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300k businesses use Wise every quarter
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What is Ecommerce Payment Processing?

Ecommerce payment processing is the process of accepting and managing online payments for goods or services. It involves a series of steps that begin when a customer makes a purchase on an ecommerce website and ends when the payment has been successfully processed and deposited into the merchant's account.

The first step in this process is for the customer to select their desired items and proceed to checkout. At this point, they will be prompted to enter their payment information, such as credit card details or login credentials for digital wallets like PayPal or Apple Pay.

Once the customer submits their payment information, it is then securely transmitted through various channels, including encrypted connections and fraud detection tools, to the payment gateway. The payment gateway is a service that authorizes and processes online transactions on behalf of the merchant.

After the payment has been authorized by the gateway, it then goes through a series of steps to ensure its legitimacy and prevent fraud. This includes verifying the customer's identity and checking for any suspicious activity or discrepancies in the transaction details.

Once everything checks out, the funds are then transferred from the customer's account to the merchant's account. This process typically takes 1-3 business days depending on various factors such as bank processing times and international transactions.

Ecommerce Payment Processing Fees

Before we get into the different payment processing solutions, let’s first understand what ecommerce payment processing fees are. Simply put, these are charges that businesses have to pay when customers make purchases through their online store. These fees cover the costs of credit card transactions and other services provided by ecommerce payment processors.

The fee structure for ecommerce payment processing varies depending on the provider but generally includes a percentage of each transaction amount plus a flat fee per transaction. For example, a common fee structure could be 2.9% + $0.30 per transaction.

However, it's important to note there are many types of transactions. A customer transaction with a digital wallet platform like Apple Pay could cost more than a transaction with a credit card. This is due to processing fees on top of card issuer fees. You should also expect transaction fees related to faulty transactions, like incomplete transactions, chargebacks, returns, and more.

If you are a global company with sales outside of the United States, you may also have to factor in fees for international transactions. We don’t go too in-depth about those here, but if you are prone to customers using international cards and currencies, be sure to look into who has the best rates.

You will also see that some processors are upfront about which types of cards they accept. Think about what your customers tend to use the most for their transactions, as some solutions will not allow your customers to pay in the way they’d like or will charge you an additional fee for the use of that payment method.

When we look at the top ecommerce payment solutions below, we will include their fees for all types of transactions to help you decide which option is best for your company.

Wise Business: International Ecommerce Payments

After just a one-time fee, you can get account details in major currencies such as USD, GBP, EUR, AUD, CAD JPY, and more. Once you've received the funds, you can conveniently spend or send them in the original currency or convert them (often at lower cost than popular alternatives) to numerous other currencies as needed.

Known for its lower rates compared to other services, Wise Business provides not just attractive fees, but also handy features like seamless accounting software integration and a business debit card. And all of this is anchored with the mid-market rate, ensuring fairness and transparency.

Fees: Afer a one-time fee of 31 USD, receiving money in your Wise account is free, but there's a nominal fee for converting currencies.

How do you use your Wise Business account details?
After getting the details, you put them on your invoice and in the case of ecommerce sales—you can use them on platforms like Amazon to start receiving funds directly to your account.

Looking to save when sending and receiving overseas payments?

Receive money
with Wise Business >>

Use your account details to receive on Amazon, eBay, Etsy, and more.

Best Ecommerce Payment Processing Solutions (Includes Payment Gateways)

1. Square

Square is a popular payment processing solution that offers both online and in-person payment options. It also provides features such as inventory management, customer relationship management (CRM), and sales reporting.

Fees¹

Service	Cost
Purchases through a Square Online Store, Square Online Checkout, or ecommerce	2.9% + $0.30/transaction
Taking Payment by Sending an Invoice	3.3% + $0.30/transaction
Purchases through ACH Bank Transfer	1%/transaction>(minimum $1)

Learn More: Compare Square and PayPal

2. Adyen

Adyen is a global payment platform that offers a variety of services including online, mobile, and point-of-sale payments. With its robust features and integrations, Adyen has become one of the top choices for ecommerce businesses.

Fees²

(only including services available in the United States)

Service	Cost
ACH Direct Debit	$0.13 + $0.27 ($0.40 total)
Affirm	$0.13 + direct contract with Affirm
Afterpay	$0.13 + 4.99% + $0.30>($0.43 + 4.99% total)
Alipay	$0.13 + 3%
Amazon Pay (Mastercard or Visa)	$0.13 + 0.80% + Interchange++
Amazon Pay (American Express)	$0.13 + 0.80% + 3.95%
Amazon Pay (SEPA Direct Debit)	$0.13 + 0.80% + €0.25
American Express (AMEX) (North America)	$0.13 + 3.3% + $0.10
American Express (AMEX) (Global)	$0.13 + 3.95%
Apple Pay	$0.13 + fee based on card used
Cash App Pay	$0.13 + 2.90% + 30c
Diners	$0.13 + 3.95%
Discover	$0.13 + 3.95%
Google Pay	$0.13 + fee based on card used
JCB	$0.13 + 3.75%
Klarna (Pay Over Time)	$0.13 + 4.29% + $0.30>($0.43 + 4.29% total)
Maestro	$0.13 + Interchange++
Mastercard	$0.13 + Interchange++
PayPal	$0.13 + direct contract with PayPal + management service fee
PaySafeCard	$0.13 + 10-12%
Samsung Pay	$0.13 + fee based on card used
UnionPay	$0.13 + 3%
Visa	$0.13 + Interchange++
WeChat Pay	$0.13 + 3%
Zip	$0.13 + 4.99% + $0.30>($0.43 + 4.99% total)

3. Apple Pay

Apple Pay is a mobile payment and digital wallet service by Apple that allows users to make payments in-store, online, and in-app using their iPhone, iPad, or Apple Watch. It is a secure and convenient ecommerce credit card processor that offers a way for customers to pay for goods and services without the need for physical cards.

Fees

Apple Pay has not made its schedule of fees readily available to the public. Its fees are based on the fees for each payment type used, but the general consensus is that these fees are a bit lower than standard credit card fees.

4. Authorize.net

Authorize.net is a popular payment gateway that allows businesses to accept credit card and e-check payments securely. It offers fraud detection and prevention tools, recurring billing options, and easy integration with most ecommerce platforms.

Fees³

Authorize.net offers two pricing plans for their customers:

The All-in-One option is for completely new users who need help getting set up with a merchant account and a payment gateway. The monthly gateway charge is $25, and the per-transaction fee is 2.9% + $0.30.

The Payment Gateway option is for users who already have a merchant account and just need help getting set up with a payment gateway. The monthly gateway charge is $25, and the per-transaction fee is $0.10 with a daily batch fee of $0.10.

5. PayPal

PayPal is a popular and trusted online payment solution that allows customers to securely make payments using their bank accounts, credit or debit cards, or PayPal balance. It also offers fraud protection and easy integration with most ecommerce platforms.

Fees⁴

(only including those for PayPal Online Card Payment Services - fixed fee is $0.49 but differs by currency)

Service	Cost
Advanced Credit and Debit Card Payments	2.59% + fixed fee
Payments Advanced & Payments Pro	2.89% + fixed fee
Virtual Terminal	3.09% + fixed fee
Interchange++ Fee for Advanced Credit and Debit Card Payments	Interchange pass-through costs + 0.49% + fixed fee
International Fee for non-Interchange++ Transactions	1.50%
Account Monitoring Service	$29.95 one-time set-up + $19.95/month>(optional)
Advanced Fraud Protection Services	$10/month + $0.05/transaction>(optional)
Additional Risk Factors (learn more here)	up to 5%/transaction
Buyer Authentication Service	$10/month + $0.10/transaction>(optional)
Card Verification Transactions	$0.30/request
Chargeback Protection	0.40%/transaction
Effortless Chargeback Protection	0.60%/transaction
Failure to Implement Express Checkout	1%/transaction
Payments Advanced	$5/month
Payments Pro	$30/month
Payments Pro Payflow	$30/month
Virtual Terminal	$30/month
Recurring Billing	$10/month>(optional)
Recurring Payment Tool	$30/month>(optional)
Uncaptured Authorization Transactions	$0.30/transaction

See the Best Banks for Small Businesses >>

6. Braintree

Braintree, a subsidiary of PayPal, is a popular ecommerce payment processor solution known for its seamless integration with many ecommerce platforms. It offers businesses the ability to accept payments in over 130 currencies and has advanced fraud protection measures in place.

Fees⁵

Service	Cost
Cards >(Visa, Mastercard, Discover, JCB, UnionPay, Diners Club, and American Express) Digital Wallets >(Apple, Google, and Samsung Pay)	2.59% + $0.49/transaction>(1.99% + $0.49/transaction for verified charitable 501(c)(3) organizations)
Cards Issued Outside the US and Transactions in non-USD Currencies	1% additional fee
Chargebacks	flat $15 fee
PayPal	subject to PayPal’s fee structure
Venmo	3.49% + $0.49/transaction
ACH Direct Debit	0.75%/transaction>(max $5)
Return Fee	$5
Unauthorized Fee	$5

7. 2Checkout

2Checkout, or Verifone, is a global payment platform that allows businesses to accept payments from customers all over the world. It supports more than 45 payment methods, including credit and debit cards, PayPal, and Apple Pay.

Fees⁶

2Checkout offers three pricing plans for their customers:

The 2SELL option is the “easy and simple way to sell globally”. The per-successful sale fee is 3.5% + $0.35. You can sign up for free with no credit card information required.

The 2SUBSCRIBE option helps you “develop & boost your subscription business”. It’s their most popular option. The per-successful sale fee is 4.5% + $0.45. You can sign up for free with no credit card information required.

The 2MONETIZE option is the “all in one solution to sell digital goods globally”. The per-successful sale fee is 6.0% + $0.60. You can sign up for free with no credit card information required.

8. Helcim

Helcim is a payment processing solution that offers a wide range of features, including transparent pricing, customizable checkout options, and fraud protection. It also provides integrations with popular ecommerce platforms such as Shopify and WooCommerce.

Fees⁷

(Helcim offers a tailored pricing program, so this table reflects their average rates)

Service	Cost
Keyed & Online Payments	2.49% + $0.25
Accepting Online ACH Bank Payments	0.5% + $0.25>(max is $6/transaction)
Chargeback Transactions	$15/transactions>(waived if merchant wins dispute)

9. Amazon Pay

Amazon Pay is a payment processing solution that allows customers to use their Amazon account information to make purchases on other websites. This streamlines the checkout process for customers and offers security and fraud protection for businesses.

Fees⁸

When asked about costs, Amazon Pay reports:

“It costs nothing. Using Amazon Pay does not add fees to your purchases on sites and organizations accepting Amazon Pay. We do not add transaction fees, membership fees, currency conversion fees, foreign transaction fees, or any other fees. Your card issuer, however, may add a foreign transaction fee if your card was issued in a country different from the site on which you are shopping, as well as any other fees described in the terms and conditions for your card.”

Put simply, Amazon Pay does not have fees, but the issuers of the cards it accepts may have fees that you will have to pay.

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Sources used:

1. Understanding Our Fees | Square Payments
2. Pricing - Full list of prices for supported payment methods - Adyen
3. Merchant account fees and payment gateway pricing | Authorize.net
4. Fees | Merchant and Business | PayPal US
5. Pricing | Braintree Payments
6. Pricing | 2Checkout
7. Save Money on Processing Fees | Helcim Pricing
8. Enabling Amazon Pay on Website & App | Amazon Pay
9. Wise Score | Trustpilot

Sources last checked on 15-January 2024.