Alana RudderStaff Reviewer
With over a decade of experience as a small business technology consultant, Alana breaks down technical concepts to help small businesses take advantage of the tools available to them to create internal efficiencies and compete in their markets. Her...
See Full Bio
Alana RudderStaff Reviewer
With over a decade of experience as a small business technology consultant, Alana breaks down technical concepts to help small businesses take advantage of the tools available to them to create internal efficiencies and compete in their markets. Her...
See Full Bio
Written By
Alana Rudder
Alana RudderStaff Reviewer
With over a decade of experience as a small business technology consultant, Alana breaks down technical concepts to help small businesses take advantage of the tools available to them to create internal efficiencies and compete in their markets. Her...
See Full Bio
Alana RudderStaff Reviewer
With over a decade of experience as a small business technology consultant, Alana breaks down technical concepts to help small businesses take advantage of the tools available to them to create internal efficiencies and compete in their markets. Her...
See Full Bio
Staff Reviewer
Kelly MainStaff Reviewer
Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c...
See Full Bio
Kelly MainStaff Reviewer
Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c...
See Full Bio
Kelly Main
Kelly MainStaff Reviewer
Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c...
See Full Bio
Kelly MainStaff Reviewer
Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c...
See Full Bio
Reviewed
& 1 other
Updated: Sep 8, 2024, 9:49pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Explore today’s top PayPal alternatives. We selected these payment processing solutions based on pricing, security, reputation and more. To choose the right payment processor for you, consider the types of payments you need to process, the features and tools each provider offers to meet your business needs, any upfront and hidden costs and customer reviews.
Read more
Best Of
- Best POS Systems
- Best Restaurant POS Systems
- Best Credit Card Processing Companies
- Best Merchant Services
- Best High Risk Merchant Account
- Best Mobile Credit Card Readers
Show Summary
- The Best PayPal Alternatives of 2024
- Why You Can Trust Forbes Advisor Small Business
- Square
- Payment Depot
- Stripe
- Helcim
- Stax
- Flagship Merchant
- National Processing
- Clover
- Merchant One
- Compare PayPal Alternatives
- Is PayPal the Best Payment Processing Platform?
- How To Choose a Payment Processor
- Methodology
- Frequently Asked Questions (FAQs)
- Next up in Business
Featured Partners
Advertisem*nt
1
Stax
Free Trial
No
Offers
First Month Free
Pricing
$99 per month, 7 cents to 15 cents per transaction plus interchange rate
2
North Payments
Free Trial
No
Offers
$0 Setup with Free Equipment + No Cancellation Fee
Pricing
Zero Cost Processing Options - Guaranteed Cost Savings
3
Payment Depot
Free Trial
No
Offer
First Month Free
Pricing
$59 per month, $0.07 - $0.15 per transaction + interchange rate
4
Payment Cloud
Free trial
No
Offers
Free terminal, Zero Fee Processing Options, Dedicated Account Manager
Pricing
Zero cost processing options, Customized interchange + Pricing
5
Finix
Free Trial
No
Offers
Save up to 40% on credit card processing
Pricing
Transparent subscription-based pricing with 0% markup on interchange fees
The Best PayPal Alternatives of 2024
- Square: Best overall
- Payment Depot: Best for high-volume sales at scaled prices
- Stripe: Best for frictionless online payment processing
- Helcim: Best for affordable transaction fees
- Stax: Best for field service companies
- Flagship Merchant: Best for customer service
- National Processing: Best for nonprofits
- Clover: Best for personal service businesses
- Merchant One: Best for businesses with imperfect credit
Why You Can Trust Forbes Advisor Small Business
The Forbes Advisor Small Business team is committed to bringing you unbiased rankings and information with full editorial independence. We use product data, strategic methodologies and expert insights to inform all of our content and guide you in making the best decisions for your business journey.
We reviewed 17 credit card processing companies using a detailed methodology to help you find the nine best PayPal alternatives and competitors. This review entailed looking at factors that included providing a transparent fee structure, numerous essential and unique features, quality reviews by actual users of the providers and an overall review by our panel of experts. All ratings are determined solely by our editorial team.
Best (Overall) for Personalized Sales Experiences
Square
4.8
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Transaction Fee
2.6%, plus 10 cents
per card transaction
Point of sale (POS)
Yes
Invoicing
Yes
On Square's Website
2.6%, plus 10 cents
per card transaction
Yes
Yes
Editor's Take
Square offers an all-in-one toolkit for online and offline payment processing. Transaction fees start at 2.65%, plus 10 cents for card payments and no hidden fees or required contract. The hardware offered includes magstripe Square readers for $10, readers for contactless and chip card processing at $49 and POS systems for $799. Virtual terminals allow order processing or appointment booking via phone. Its tools also support website and social media transactions.
Unlike PayPal, Square offers free customer relationship (CRM) software and marketing automation tools. Square’s Customer Directory CRM gathers customers’ data, including their purchase interests, history and feedback, and compiles it into customer profiles. Using these profiles, companies can tap into Square’s marketing automation capabilities to create and send personalized email and text marketing campaigns that foster loyalty and repeat sales.
Read more:
Read our full Square review.
Pros & Cons
- Payment Card Industry (PCI) compliance
- Lots of hardware options for in-store payment processing
- Robust appointment booking capabilities
- Online, in-person and phone payment processing
- Contactless payment options
- Readers sometimes experience glitches when reading cards
- Robust features require learning curve
- No color options for hardware
- Confusing reporting
Best for High-volume Sales at Scaled Prices
Payment Depot
4.7
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Transaction fee
Interchange rate of credit card network, plus monthly subscriptions starting at $79 per $250,000 of transactions per year
POS
Yes
Invoicing
No
On Payment Depot's Website
Interchange rate of credit card network, plus monthly subscriptions starting at $79 per $250,000 of transactions per year
Yes
No
Editor's Take
Payment Depot offers a no-frill payment processing option for businesses looking to process large volumes of sales starting. Its plans start at $79 per month. It offers a variety of payment processing hardware, such as POS systems, mobile readers, smart readers―with inventory management, loyalty program and reporting capabilities―and standard terminals. Its virtual terminals allow you to process online credit or debit card payments.
Unlike PayPal, instead of offering robust features, such as invoicing, quick response (QR) code payment options and dispute management, Payment Depot offers a no-frills service at a no-frills price. Instead of marking up exchange rates set by credit card networks to charge by the transaction, Payment Depot simply charges a monthly fee, then allows you to only pay wholesale interchange rates set by the credit card network.
For example, its first-tier plan is $79 per month and provides for up to $250,000 in transactions in a year. In addition to this, you only pay the interchange rate set by the credit card network used. If you need to process more than $250,000 in transactions per year, you will need to get a custom quote for your business.
Who should use it:
Companies that wish to process large volumes of sales on a yearly basis and save money doing so should consider Payment Depot for payment processing.
Read more:
Read our full Payment Depot review.
Pros & Cons
- No cancellation fees
- No per-transaction fees
- No interchange rate markup fee
- Free hardware with some plans
- Low learning curve
- Low prices with large volume of transactions
- Monthly subscription fee
- Invoicing only with SwipeSimple integration
- Fewer standout tools compared to competitors
Best for Reliable & Frictionless Online Payment Processing
Stripe
4.4
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Transaction Fee
2.7%, plus 5 cents
per card transaction
POS card readers
Yes
Invoicing
Yes
On Stripe's Website
2.7%, plus 5 cents
per card transaction
Yes
Yes
Editor's Take
Stripe offers both online and in-person payment options. While PayPal’s card transaction fee is 2.99%, plus a 49-cent fee, Stripe’s 2.7% plus 5 cents per card transaction fee makes it a better option for budget-conscious businesses. Its Stripe Reader costs $59 per reader for in-person or on-the-go payment acceptance but companies can also turn an iPhone into a contactless reader. It has less robust options for in-person payment processing than PayPal.
Stripe stands out for frictionless online payment processing. Its 99.99%-plus uptime ensures no lost sales. Businesses can use their own domain for transition to checkout, simplifying the payment process. Funds are also deposited into an outside bank account with no manual transfers. Additional frictionless-payment features include address auto-complete, one-click payments, reusable payment methods, subscription payments and clear error messages.
Who should use it:
Stripe’s features make it ideal for small businesses that need to process online payments, including online retail stores and service providers.
Read more:
Read our full Stripe review.
Pros & Cons
- Cancel any time
- Supports 135 currencies
- 24/7 support via phone, email and live chat
- Robust online payment processing features
- Low card transaction fees compared to some competitors
- Customizable email receipts
- Invoicing capabilities
- No-code shareable payment links
- Accept payments on your website using your own domain
- One-time and subscription-based payments accepted
- A large variety of accepted payment types
- PCI compliance
- Limited in-person transaction features
- Low-code (instead of no-code) checkout customizations
- Open application programming interface (API) requires technical knowledge
Best for Affordable Transaction Fees
Helcim
4.4
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Transaction Fee
Based on interchange rate
Starting price: 0.40% plus 8 cents in (person) or 0.50% plus 25 cents (online)
POS card readers
Yes
Invoicing
Yes
On Helcim's Website
Based on interchange rate
Starting price: 0.40% plus 8 cents in (person) or 0.50% plus 25 cents (online)
Yes
Yes
Editor's Take
Helcim allows businesses to process online and offline payments. In-person processing fees range between 0.40% plus 8 cents to 0.15% plus 6 cents while keyed or online processing runs between 0.50% plus 25 cents to 0.15% plus 15 cents, which means that businesses can usually save money compared to higher PayPal fees. The company offers over-the-phone, in-person and online payment processing. Its reader costs $109 and offers features, such as inventory management, invoicing and email receipts.
Contrary to PayPal’s flat transaction fee, Helcim uses only an interchange-plus rate, meaning Helcim bases transaction fees on customers’ card networks, plus a markup fee. With more transactions, this fee drops. For example, companies processing up to $50,000 per month enjoy an in-person 0.40% plus an 8-cent fee. By processing $50,001 to $100,000 per month, the fee drops to 0.35%, plus 7 cents. In the end, average transaction fees are lower than PayPal’s
Who should use it:
Helcim offers a good value for just about any business looking for a new payment processor. But the platform’s fee structure makes it especially helpful for teams that find themselves overburdened by the fees they pay with other services.
Read more:
Read our full Helcim review.
Pros & Cons
- Cancel any time
- No long-term contracts
- No monthly fee
- Low card transaction fees compared to some competitors
- Email receipts
- Invoicing capabilities
- No added fees for deposits, setup or PCI compliance
- Inventory management
- Payment links
- Free mobile and laptop device readers (no SIM cards needed)
- Print and email receipts
- Unpredictable transaction fees
- No same-day deposit times
- No cash drawers available
- Lower transactions volumes cost more
Best for Field Service Companies
Stax
4.1
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Transaction fee
$99 to $199 per month plus 8 cents per card transaction
POS card readers
Yes
Invoicing
Yes
On Stax's Website
$99 to $199 per month plus 8 cents per card transaction
Yes
Yes
Editor's Take
Stax’s $99 per month Growth plan includes one-time and recurring invoicing, scheduled payments, a terminal or mobile reader, ACH processing, reporting, 0% markup on direct-cost interchange, 24/7 support and the ability to process up to $500,000 annually. Its higher-tiered plans range from $159 to $199 per month and add Text2Pay mobile payments, payment links, secure credit card data storage, advanced reporting and one-click shopping cart setup.
Stax offers a unique field service toolset that allows service providers to accept payments using a Bluetooth-enabled reader or via Stax’s iOS or Android app. They can also email or text a payment link, then tap into mobile-friendly reporting to track payment flows, manage offerings and discounts, and store customer data and preferences. Finally, they can access consolidated in-person and online payment information, such as pending invoices.
Learn more: Read our full Stax review.
Who should use it:
Companies in the field service, retail, professional services and healthcare industries will find tools uniquely suited to their needs via Stax.
Pros & Cons
- Free terminal or mobile reader with paid plans
- Mobile app for payment receipt, tracking and reporting
- Scheduled invoices
- Recurring payments
- High-volume transaction processing for flat monthly rate
- Must request a custom quote if you process more than $500,000 per year
- Monthly subscription fee
- Not suitable for companies with low-volume payment processing needs
Best for Customer Service
Flagship Merchant
4.1
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Transaction fee
Merchant-tailored pricing structure and fees
POS card readers
Yes
Invoicing
Yes
Merchant-tailored pricing structure and fees
Yes
Yes
Editor's Take
Flagship Merchant Services offers a wide range of payment processing options. These include handheld and countertop POS devices, mini payment processing devices and mobile devices for connecting directly to a phone or tablet. Devices offer added features to serve customers and run your business, such as inventory management, customer purchase tracking, receipts and employee time cards. It also offers e-commerce and virtual payment solutions.
Flagship Merchant Services stands out for its customer service. Merchants first connect with a sales rep who learns about the businesses to assign the best payment structure. If a rep does not offer the lowest price available, the merchant receives a $200 gift card. Once merchants receive payment processing devices, a credit card terminal representative gives live training. Finally, merchants are offered dedicated customer representatives and 24/7 phone support.
Who should use it:
Due to their attentive customer support, businesses that need extra guidance on how to manage their company’s payment processing should consider Flagship Merchant Services.
Pros & Cons
- Cancel any time
- Online, phone and in-person payment processing
- $200 gift card if it doesn’t offer lowest price
- No long-term contracts
- Custom pricing structure
- Email and text receipts
- Invoicing capabilities
- Inventory management
- Sales tracking
- Email and text receipts
- Loyalty programs
- Gift cards
- Complex pricing structure
- High early-termination fees
Best for Nonprofits
National Processing
3.9
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Transaction Fee
Flat monthly cost (usually $9.95 per month)
then low industry-specific transaction costs
POS card readers
Yes
Invoicing
Yes
On National Processing's Website
Flat monthly cost (usually $9.95 per month)
then low industry-specific transaction costs
Yes
Yes
Editor's Take
National Processing offers predictable payment structures via flat monthly costs and transaction fees. Users enjoy a selection of payment processing options, such as mobile, POS, smart terminal and virtual POS solutions. Likewise, merchants enjoy a variety of frill features, including the ability to accept recurring payments, send invoices, sell directly from websites, create payment links, conduct rewards programs and track inventory and employee time.
To offer the lowest possible transaction costs, National Processing’s plans start with a monthly cost. For example, its retail plan’s monthly cost is $9.95 per month. Then, a surprisingly low interchange-plus fee average of 0.14% plus 7 cents per transaction is added. Still, its nonprofit plan is hard to beat. It has a monthly cost of $9.95 and per-transaction costs of 0.12% plus 6 cents. It also comes with a free SwipeSimple mobile reader and free terminal.
Learn more: Read our full National Processing review.
Who should use it:
Businesses belonging to the retail, restaurant and nonprofit industries are likely to enjoy surprisingly low transaction costs with National Processing, making this PayPal alternative particularly attractive for businesses in these industries.
Pros & Cons
- Online, phone and in-person payment processing
- $500 gifted to merchants if they can’t beat competitor prices
- Invoicing capabilities
- Payment links
- Recurring payment processing capabilities
- Inventory tracking
- Reward program capabilities
- Integrations
- Free mobile readers with some plans
- Free terminals with some plans
- Free pin pads with some plans
- Monthly cost in addition to transaction costs
- No savings due to high transaction volumes
- Industry-specific pricing means some industries pay more
- High termination fees
Best for Personal Service Businesses
Clover
3.2
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Transaction fee
2.3% to 2.6% plus 10 cents per card transaction
POS card readers
Yes
Invoicing
Yes
On Clover's Website
2.3% to 2.6% plus 10 cents per card transaction
Yes
Yes
Editor's Take
Clover offers industry-specific plans, including full-service dining, quick-service dining, retail shops, professional services, personal services and other plans. Plans range from $14.95 to $175 per month. Payment options include in-person swipe, chip, tap and online payments. Industry plans offer unique features suitable for the industry, such as online payment booking, sales tracking, inventory management, online menu pages, tip acceptance and more.
Clover offers uniquely powerful solutions for personal services businesses. First, it offers an online calendar with appointment booking capabilities. You can even take deposits online at the time of booking. Once booked, you can send appointment reminders via email or SMS, manage customers’ payments and booking histories, and keep payment information on file for regular customers. Finally, you can accept payments and tips for your services.
Learn more:Read our full Clover review.
Who should use it:
Clover offers unique tools and features for companies in the dining, retail, professional services, personal services and field service industries. It stands out for a feature set and plan that is custom designed for personal services companies.
Pros & Cons
- Pricing options for most budgets
- Industry-specific features
- Online appointment booking
- Appointment reminders via SMS and email
- Confusing pricing for many businesses
- Extra fees for rapid deposit
- Not suitable for large businesses
- Many features only available via paid add-ons
Best for Businesses With Imperfect Credit
Merchant One
3.2
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Transaction Fee
0.29% to 1.55% for qualified
per card transaction
POS card readers
Yes
Invoicing
Yes
On Merchant One's Website
0.29% to 1.55% for qualified
per card transaction
Yes
Yes
Editor's Take
Merchant One offers POS systems, mobile processing, virtual terminals and free online shopping carts. Other services include cash advances, invoicing, gift and loyalty programs and recurring payment processing. It purports advanced fraud tools and no fees for PCI compliance. Plans for these features are $6.95 per month. In addition, Qualified swipe and key-in rates start at 0.29%. Nonstandard card processing rates are higher.
Merchant One comes with some caveats, making it best for businesses that may have more difficulty getting approved for merchant processing agreements elsewhere. It has a 98% approval rate and serves businesses with imperfect credit. However, in exchange for such approval, businesses must commit to a three-year contract. Breaking that contract can incur hefty termination fees, with some prior customers reporting $725 in early termination fees.
Who should use it:
Merchant One is best for businesses that are having difficulties getting approval with other merchant processing providers due to less-than-desirable credit.
Read more:
Read our full Merchant One review.
Pros & Cons
- Online, phone and in-person payment processing
- Invoicing capabilities
- Recurring payment processing capabilities
- Gift and reward program capabilities
- Approval for businesses with imperfect credit
- Three-year contract
- Monthly fee of $13.95
- Hefty early termination fees
- Hidden fees only reported in terms of agreement and not readily available
Compare PayPal Alternatives
| Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Best For | Point of sale (POS) | Invoicing | Learn More CTA text | Learn more CTA below text | LEARN MORE |
|---|---|---|---|---|---|---|---|---|---|
| PayPal |  | 3.0 |  | Best for PayPal and Venmo | Yes | Yes | Learn More | Read Forbes' Review | |
| Square |  | 4.8 |  | Best (Overall) for Personalized Sales Experiences | Yes | Yes | Learn More | On Square's Website | |
| Payment Depot |  | 4.7 |  | High-volume Sales at Scaled Prices | Yes | No | Learn More | On Payment Depot's Website | |
| Stripe |  | 4.4 | | Best for Frictionless Online Payment Processing | Yes | Yes | Learn More | On Stripe's Website | |
| Helcim |  | 4.4 | | Affordable Transaction Fees | Yes | Yes | Learn more | On Helcim's Website | |
| Stax by Fattmerchant |  | 4.1 |  | Best for Field Service Companies | Yes | Yes | Learn More | On Stax's Website | |
| Flagship Merchant |  | 4.1 | | Customer Service | Yes | Yes | View More | ||
| National Processing |  | 3.9 |  | Nonprofits | Yes | Yes | Learn More | On National Processing's Website | |
| Clover |  | 3.2 |  | Best for Personal Service Businesses | Yes | Yes | Learn More | On Clover's Website | |
| Merchant One |  | 3.2 | | Businesses With Imperfect Credit | Yes | Yes | Learn More | On Merchant One's Website |
Is PayPal the Best Payment Processing Platform?
PayPal offers several pros for users, including a variety of payment processing options, international disbursem*nts, free bank transfers, invoicing capabilities and easy setup and usage. However, it can be pricier than some PayPal competitors, has limited purchase protection, offers poor customer service and requires a fee for instant transfers. This section overviews these pros and cons, including how PayPal compares to competitors’ pricing.
PayPal Pros and Cons
Despite its many advantages, PayPal isn’t right for everyone. For example, companies that need same-day payment processing or advanced customer support may find a PayPal alternative to be a better fit for them. Here is a look at the pros and cons of using PayPal to process business payments.
PayPal Pros
Some top PayPal positives include:
- Easy setup and usage
- Client familiarity with PayPal
- A wide variety of online and off-line payment processing options
- Instant access to funds for a fee
- Free bank transfers
- Invoicing capabilities
- Available shopping cart integrations
- International disbursem*nt to 96 countries and in 24 currencies
- Subscription and Recurring payment processing
PayPal Cons
Some top PayPal negatives include:
- Slightly higher payment processing fees than some PayPal competitors, such as Square and Stripe
- No protection for intangible item purchases, such as digital and in-person pickup items
- Delayed payments due to disputes
- Up to a three-day delay for free bank transfers
- A 1% fee for instant transfers
- Poor customer service
PayPal Cost
PayPal | 2.99%, plus 49 cents per card transaction |
Square | 2.6%, plus 10 cents per card transaction |
Payment Depot | Interchange rate of credit card network, plus monthly subscriptions starting at $59 per $125,000 of transactions per year |
Stripe | 2.7%, plus 5 cents per card transaction |
Helcim | Starting price: 0.40% plus 8 cents in (person) or 0.50% plus 25 cents (online) |
Stax by Fattmerchant | $99 to $199 per month, plus 8 cents per card transaction |
Flagship Merchant | Merchant-tailored pricing structure and fees |
National Processing | Flat monthly cost (usually $9.95 per month), then low industry-specific transaction costs |
Clover | 2.3%, plus 10 cents per card transaction |
Merchant One | 0.29% to 1.55% per qualified card transaction |
With a fee of 2.99% plus 49 cents per card transaction, PayPal’s fees are slightly higher than many of its competitors. For example, Stripe’s fee is slightly lower at 2.9% plus 30 cents per card transaction and Merchant One’s fees are quite a bit lower at 0.29% to 1.55% per card transaction. When business payments are processed by the hundreds or thousands per month, these differences can add up quickly with higher fees cutting into profit margins.
When To Choose a Competitor Over PayPal
PayPal has weaknesses that can make it unsuitable for some companies. For example, its fees can be higher than some of its competitors and users report that customer service is lacking. If its weaknesses mean it does not meet your business needs, it is time to consider some PayPal alternatives. In addition, if you are turned down by PayPal for a merchant account or your PayPal account is terminated, finding an alternative is often the next step.
Many PayPal competitors offer lower fees than PayPal. While the differences may be minimal for sole proprietorships that process four to five payments per month, businesses that process thousands of payments per month or large-ticket item payments can pay a hefty collective monthly fee. So, if your company is growing or processing a lot of payments or large-ticket payments, consider competitors such as Payment Depot or Square.
Companies that rely heavily on customer support should also consider PayPal alternatives. While users report that PayPal’s customer service is slow or even non-responsive, some competitors’ strengths lie in their customer support. Flagship Merchant, for example, has won awards for customer support excellence and even offers cash rewards if support is not spot on. Its dedicated 24/7 support also means you are never left to manage a problem alone.
Another reason you might consider a PayPal alternative is if you have been turned down for a PayPal account. PayPal vets its clients before approving an account by reviewing their business’s financial statements and stability. It can also terminate your account at any time. If you aren’t approved or your account has been terminated by PayPal, consider a provider that offers a more lenient approval rate. Merchant One, for example, offers a 98% approval rate.
How To Choose a Payment Processor
When choosing a payment processing solution, consider the provider’s cost, your payment processing needs, available add-on features and customer reviews. Here is a closer look at how to evaluate each of these:
- Cost: Businesses should evaluate the processor’s cost and fees against their own budgets. Costs may include transaction rates in addition to monthly fees, hardware and hidden fees and costs. Hidden fees may be for PCI compliance or early termination. The providers’ terms of agreement document is a great place to look for hidden fees.
- Payment processing needs: Determine if you primarily need to accept payments in-store from customers who are present or over the phone, on social media or through your website. Then, peruse the provider’s website to find the types of readers, terminals and digital processing options the provider offers. Compare them to your needs to evaluate the best fit.
- Add-on features: Especially if the provider requests a monthly fee, look at what additional features are offered besides payment processing. For example, many payment processor plans offer inventory management, invoicing, rewards program capabilities, CRM tools and readers for free. If these must be paid separately, consider whether add-ons should be factored into your budget and if they’re affordable.
- User reviews: Browse reviews provided by existing and past customers on sites such as the Better Business Bureau (BBB). For example, when we looked at customer reviews for Merchant One, we learned that the company generally expects a three-year contract and charges hefty early termination fees. This data can help you either find a gold mine solution for your business or avoid problems.
Featured Partners
Advertisem*nt
1
Stax
Free Trial
No
Offers
First Month Free
Pricing
$99 per month, 7 cents to 15 cents per transaction plus interchange rate
2
North Payments
Free Trial
No
Offers
$0 Setup with Free Equipment + No Cancellation Fee
Pricing
Zero Cost Processing Options - Guaranteed Cost Savings
3
Payment Depot
Free Trial
No
Offer
First Month Free
Pricing
$59 per month, $0.07 - $0.15 per transaction + interchange rate
4
Payment Cloud
Free trial
No
Offers
Free terminal, Zero Fee Processing Options, Dedicated Account Manager
Pricing
Zero cost processing options, Customized interchange + Pricing
5
Finix
Free Trial
No
Offers
Save up to 40% on credit card processing
Pricing
Transparent subscription-based pricing with 0% markup on interchange fees
Methodology
When looking for the top PayPal alternatives, we assessed each payment processor based on their hardware and digital payment options; pricing affordability, structure and transparency; whether 24/7 customer support is available; and added standout features and functionalities. In addition to assessing these factors for ourselves, we looked at how users ranked the tools and services provided by each provider.
Pricing
In ranking the best PayPal alternatives, we looked for small-business-affordable transaction rates. We also looked for companies with few additional fees, such as PCI compliance or early termination fees. Finally, we looked for companies that aim for pricing transparency. Pricing accounted for 20% of our weighted scoring.
Features
We broke features down into two categories: general features that we believe that all credit card processors should offer and additional or unique features that can make the provider stand out from the rest. We assessed providers to include ones with a variety of payment processing devices and options, including POS systems, virtual terminals, mobile readers, online shopping carts and contactless payment options.
In addition to payment processing options, we sought PayPal alternatives that offer additional tools small businesses can use to delight with on-point customer experiences. Such features we looked for include invoicing options, PCI compliance, customer relationship management (CRM) system, inventory tracking, loyalty programs and gift cards. We weighted features at 45% of our total score.
Third-party reviews
We included providers with at least a three-star customer rating on review sites, such as the BBB, Capterra and Trustpilot. However, we preferred PayPal alternatives with a four-star or higher customer rating. We also looked at the number of reviews for these scores to help reduce any potential bias. These reviews accounted for 20% of the total score.
Expert analysis
To accommodate the fact that small businesses are increasingly needing to service customers 24/7, our panel of experts prioritized PayPal alternatives that also offer 24/7 and responsive support via digital and live channels. Again, we turned to customer reviews to gauge the best providers in this arena. We also looked at other factors, such as ease of use, detailed features, popularity and value for the money. Our experts’ review made up 15% of the total score.
Frequently Asked Questions (FAQs)
What is the best alternative to PayPal?
The best alternatives to PayPal in 2024 are Square, Payment Depot and Stripe. Square offers tools and capabilities to personalize the sales experiences while Payment Depot offers tools for processing high-value sales at scaled prices. Finally, Stripe offers reliable and frictionless online payment processing.
Is there a cheaper option than PayPal?
PayPal’s per-transaction rate is 2.99% plus 49 cents for standard credit and debit card payment processing. Some PayPal alternatives offer cheaper per-transaction rates. For example, Square offers a rate of 2.6% plus 10 cents per transaction for card payment processing while Stripe offers similar rates of 2.7% plus 5 cents per credit card transaction.
What are the best POS systems?
The best POS systems in 2024 are eHopper POS, Lightspeed POS and Clover. Each of them has unique strengths that make them suitable for best meeting different business goals. While eHopper POS is best for omnichannel business features, Lightspeed POS is best for building customer loyalty and Clover is best for integration options.
What are the best credit card processing companies for small business?
The best credit card processing companies for small businesses in 2024 include Square, Payment Depot and Stripe. As an easy-to-use, turnkey solution, Square tops the list but Payment Depot offers the lowest card processing rates and Stripe is best for online and in-app payment processing.
How do I avoid PayPal fees?
One way many small businesses avoid PayPal fees is by raising their sales or service rates to pass along the fee to clients or customers. You can also invoice clients or customers less often to avoid more per-transaction fees. Finally, you can opt for less-costly feature options, such as standard fund transfers to your bank account, which takes one to two business days rather than instant transfers.
Is there an alternative to PayPal on eBay?
There are many payment options consumers can use on eBay to purchase goods from you. These include credit card, debit card, Google Pay and Apple Pay. In some countries and categories, you can also accept checks, money orders and cash on pickup. For best results, include the types of payment methods you accept in your listings.
How do I close my PayPal account?
If accessing PayPal on the web, to close your PayPal account, log in to your account and go to “Settings.” From there, click “Close your account” under “Account Options,” then “Close account.” If you are using an app, tap your profile icon, then click “Close Your Account.” If you are using a PayPal business app, tap your profile icon, and then select “Account Info” and “Close Your Account.”
How long does PayPal take to send money?
PayPal offers free one- to three-day bank transfers. If you would like to send money instantly through PayPal, expect to pay a 1.75% instant transfer processing fee.
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