Here are the top 5 online payment systems for accepting payments on the Web. While many of the companies on this list have been available to online merchants for years, many are also now getting into new areas of online payments such as social commerce and in store online card reader systems.
PayPal has been put at the top of the list for a few reasons although its not the cheapest payment gateway to go for its the one that is used by a high percentage of oneline website, also the majority of consumers have a PayPal account because of the likes of Ebay. This makes the consumer feel secure when making payments as they have heard of the gateway before.
PayPal is the world’s most widely used payment acquirer, processing over $4 billion in payments in 2011. PayPal payments are made using a user’s existing account or with a credit card. Money can be sent directly to an email address, thus prompting the users to sign up for a new PayPal account. In addition to taking payments, PayPal also allows its users to send money through the service, which is a feature that only a few payment solutions provide.
Pricing: PayPal takes 2.9% + $0.30 per transaction and has no setup or monthly fees.
Source: PayPal merchant fees
2. Google Checkout
Google Checkout is Google’s answer to PayPal. Google Checkout allows users to pay for goods and services through an account connected to their Google profile. The major benefit that Google Checkout has over the competition is that millions of Internet users use Google for other services, making a purchase through Checkout a simpler process.
Pricing: Google Checkout fees start at 2.9% + $0.30 per transaction for sales less than $3,000. The percentage they take goes down depending on monthly sales volume. Source: Google Checkout fees
3. Amazon Payments
Amazon Payments allows its users to receive money using its API (and to send money out via ACH).
Pricing: Amazon Payments fees start at 2.9% + $0.30 per transaction for payments over $10 (the percentage they take is less for larger transactions). For payments under $10, the fee is 5.0% + $0.05 per transaction. Source: Amazon Payments fees
Dwolla is a direct competitor to PayPal. One of the newcomers in the third-party payments space, the company is processing over $1 million per day. Setting up Dwolla payments is similar to PayPal, although Dwolla doesn’t have the same name recognition as their competition.
Pricing: There are no fees for transactions less than $10. For transactions over $10, Dwolla charges $0.25 per transaction. Source: Dwolla fees
Stripe provides an excellent payment solution for web developers who would like to integrate a payment system into their projects using Stripe’s robust API. By bypassing the traditional sign up process, Stripe acts as a merchant account for its providers, handling all PCI compliance and merchant approvals.
Pricing: Stripe charges 2.9% + $0.30 per transaction with no setup or monthly fees. Source: Stripe: pricing
There are plenty of online payment systems out there that you can use to conduct e-commerce activities. Choose one that’s in line with your business objectives.