For businesses the cost of processing payments can really add up. Even a small difference in fees can mean a lot of money lost over time. That is why it is so important to choose a payment platform that does not charge much.
In this guide we will look at the payment platforms that charge the fees. We will also talk about how their pricing works and which one’s the best choice for your business.
Understanding Payment Gateway Fees
Before we compare the payment platforms we need to understand how they charge their fees. Most payment providers charge you in a different ways:
* They take a percentage of each payment you receive
* They charge you a fixed amount for each payment
* They charge you extra for things like currency conversion and international payments
There is no payment platform that’s completely free. Every provider charges something because the banks and card companies take a cut of each payment. However some platforms are cheaper than others depending on how business you do and what kind of business you have.
1. Helcim – Best for Low Overall Fees
Helcim is often considered one of the payment platforms for small and medium businesses. Of charging a flat rate Helcim uses a pricing model that is based on the actual cost of processing each payment.
Here are the typical fees for Helcim:
* For in-person payments: around 1.8% to 2.0%. $0.08
* For payments: around 2.27% plus $0.25
Helcim is cheap because it does not charge a monthly fee and it also gives you discounts as your business grows.
2. Stax Payments – Best for High-Volume Businesses
Stax uses a pricing model that is based on a monthly subscription. This is different from other payment platforms.
Here is how Stax typically charges:
* A monthly fee of around $99
* A transaction fee that is the cost of processing the payment with no extra markup
Stax is cheap if your business processes a lot of payments each month. This is because you do not have to pay a percentage of each payment which can save you a lot of money over time.
3. Stripe – Best Flat-Rate Option
Stripe is a popular payment platform that charges a simple and predictable fee.
Here are the typical fees for Stripe:
* For payments: 2.9% plus $0.30
* For in-person payments: around 2.6% plus $0.05
Stripe is a good choice because it does not charge a monthly fee and it also gives you discounts if your business grows.
4. Square – Best for In-Person Payments
Square is another payment platform that is especially good for businesses that process a lot of in-person payments.
Here are the typical fees for Square:
* For in-person payments: around 2.6% plus $0.10
* For payments: around 2.9% plus $0.30
Square is a good choice because it does not charge a monthly fee and it also gives you a free point-of-sale system.
5. PayPal – Higher Fees but Strong Value
PayPal is not the payment platform but it offers a lot of value because it is so well-known and trusted by customers.
Here are the typical fees for PayPal:
* For checkout: around 2.99% plus $0.49
* For checkout: around 2.59% plus $0.49
PayPal is more expensive than some other options but it can also help your business by increasing the number of customers who complete a purchase.
6. Adyen – Best for Enterprise-Level Low Fees
Adyen is a payment platform that is designed for businesses. It uses a pricing model that’s similar to Helcim but it is more advanced.
Here are the typical fees for Adyen:
* The actual cost of processing the payment plus a small fee of around $0.13
Adyen is a choice for large businesses because it charges very low fees and is optimized for high-volume payments.
7. Crypto Payment Gateways – Lowest Fees Overall
Some payment platforms that use cryptocurrency charge low fees compared to traditional payment processors.
Here are a few examples:
* BTCPay Server: 0% processing fee
* OpenNode: 1% per transaction
These platforms are cheap because they do not have to pay intermediaries like banks and they also have lower infrastructure costs.
Flat-Rate vs Interchange Pricing: Which Is Cheaper?
The cheapest payment platform for your business depends on how volume you process each month.
* If you process a volume of payments a flat-rate platform like Stripe or Square is usually simpler and cheaper.
* If you process a volume of payments an interchange-based platform like Helcim or Adyen can save you more money.
* If you process a lot of payments Stripe or Adyen are better optimized.
* If you process a lot of payments PayPal can be cheaper in some cases.
Hidden Fees to Watch Out For
Many businesses only look at the transaction fees when they choose a payment platform. There are other fees that can add up.
* Currency conversion fees can be 1-4% of the payment amount.
* Chargeback fees can be $15-$20 per dispute.
* Monthly subscriptions can cost extra for features.
* Withdrawal or payout fees can also add up.
These fees can increase the cost of processing payments for your business.
Final Verdict: Which Platform Has the Lowest Fees?
Here is a quick summary:
* Helcim has the overall fees for small and medium businesses.
* Stax or Adyen have the fees for high-volume businesses.
* Stripe or Square are the flat-rate options.
* PayPal is the choice if you want to increase trust and conversions.
* Crypto gateways have the possible fees.
Choosing a payment platform with the fees is not just about finding the cheapest option. It is about finding the pricing model for your business.
If you are just starting out Stripe or Square are choices because they are simple and predictable. As your business grows you may want to switch to an interchange-based platform, like Helcim or Adyen to save money.
The best strategy is to review your payment costs and adjust your provider as your volume increases. Even small optimizations can lead to savings over time.