Choosing the right online payments service is important for ensuring secure, convenient transactions. With many options available, the decision will depend on your business needs. Factors such as transaction fees, processing times, global reach, ease of integration, and security features will help you determine which option is the best fit for your business.

As the transaction value of global digital payments is projected to increase from over $20 trillion USD in 2025 to over $36 trillion USD by 2029, it’s important to have a reliable online payments platform for your business. Below, we’ll discuss what makes a payment processing service effective, how it handles fees, and how to pick the one that best satisfies your business’s needs.

What’s in this article?

• What makes an online payments service the best for your business?
  
• How do online payments services handle fees?
  
• How secure are online payments services?
  
• What should you look for when choosing an online payments service?
  
• Choosing Stripe as your online payments service
  

What makes an online payments service the best for your business?

An effective online payments service should make the process of sending and receiving payments as effortless and secure as possible. Here are some qualities that should set them apart:

• Security: The best services have excellent encryption and fraud prevention measures that work 24/7—and don’t slow down payments.

• Speed: Whether you’re running a small startup or a global business, transactions need to be quick and intuitive.

• Language support: The best services work everywhere you want to, in your currency, and with payment methods you trust. Find one that does not add more steps to payments because you’re in a different country or using a different bank.

• Flexibility: You should use a payments service that can handle today’s business needs and tomorrow’s—whether that means subscriptions, international sales, or new forms of payment.

• Transparency: The best services make their pricing clear and fair, especially on fees, so you know exactly what to expect.

• Reliable support: If something goes wrong, you should have fast, reliable support from a real human who can actually solve your problem—not just pass along your concern.

The best online payments services should handle the complexity of payments for you—in a way that makes payments feel natural and simple.

How do online payments services handle fees?

Online payments services structure fees in ways that balance their operational costs, profitability, and user appeal.

Here’s how they typically approach fees, including what they charge for the services they offer and why.

Types of fees

• Transaction fees: These are the most common and are typically a percentage of the transaction amount, sometimes with a small additional fixed fee.

• Variable rate models: Rates might vary based on factors such as transaction volume, payment method (e.g., credit card, bank transfer, digital wallet), and location.

• Currency conversion fees: For cross-border transactions, payment processors often charge another fee for converting currencies—typically a percentage of the amount.

• Chargeback fees: If a customer disputes a charge and a business loses the dispute, the service might impose a fee to cover administrative costs.

• Subscription or monthly fees: Some services charge a flat monthly fee for premium features such as advanced reporting, fraud prevention tools, or application programming interface (API) access.

• Payout fees: While many services offer free standard payouts, they might charge extra for faster withdrawals.

• Account fees: Although they’re less common, some services charge fees for account setup, inactivity, or specific account management activities.

Why are fees charged?

• Covering costs: Payment processors incur their own costs that they need to cover, such as card network fees, fraud prevention, currency conversion, and compliance with regulatory standards.

• Infrastructure maintenance: The fees also fund the technology infrastructure that services use to process transactions reliably and securely.

• Risk management: Services take on risks, such as fraud, chargebacks, and compliance; fees help offset these potential losses.

Different pricing models

• Flat-rate pricing: This simple model charges a single, fixed price for the service. This type of pricing is often appealing to small businesses.

• Tiered pricing: This model provides different tiers for the service with different prices and features for each. It can offer volume discounts or different rates for specific card types or transaction sizes.

• Blended fees: These fees combine all card and transaction costs into one rate, making them easier to understand for companies.

• Interchange-plus fees: These pass on exact card network fees (interchange fees) and a processor markup. This model is more transparent, but it can be complex.

Business considerations

• Negotiation for high volume: Businesses with high transaction volumes can often negotiate lower fees or access volume-based pricing tiers.

• Fee absorption or passing on costs: Businesses might absorb fees as part of their pricing strategies, or they might pass them directly on to customers (e.g., charging an extra percentage for credit card payments).

Fee trends in the industry

• Lower fees for alternative payments: Automated Clearing House (ACH) transfers and other bank transfers often have lower fees compared to credit cards.

• Subscription models: Some platforms incorporate fees into broader subscription plans for simplicity.

• No-fee promotions: New or competing services might temporarily waive fees to attract new users.

How secure are online payments services?

Online payments services are generally secure, as their business depends on the protection of sensitive financial information. However, their level of security might vary based on the provider, the specific measures implemented, and how users interact with the service.

Here’s how secure these services can be, and what makes them trustworthy.

Online payments services’ security features

• Encryption: Payment data is encrypted in transit (using protocols such as Transport Layer Security, or TLS) and often at rest—ensuring that sensitive information such as credit card numbers cannot be intercepted or read. Tokenization is also frequently employed. This process replaces sensitive card data with nonsensitive tokens that are useless to attackers.

• Fraud prevention: Many services use advanced fraud detection systems powered by machine learning to identify and block suspicious activity in real time. These systems analyze factors such as IP addresses, transaction patterns, and device fingerprints to flag potential fraud.

• PCI DSS compliance: Reputable online payments services comply with the Payment Card Industry Data Security Standard (PCI DSS)—ensuring they meet stringent requirements for storing, processing, and transmitting cardholder data.

• Two-factor authentication (2FA): Many services require or offer 2FA, adding another layer of security by asking for a second form of verification (e.g., a one-time code sent to your phone).

• Secure APIs: Online payments services provide secure APIs with access controls to limit who can interact with the payments infrastructure.

• Real-time monitoring: Continuous monitoring detects unusual behavior or peaks in activity, triggering immediate security responses to prevent data breaches or fraud.

How online payments services protect against specific threats

• Phishing and account takeovers: Online payments services educate users about phishing threats and offer tools such as account alerts for unauthorized activity. Strong password requirements and optional, biometric login features (e.g., fingerprint or facial recognition) can help reduce the risk of compromised accounts.

• Data breaches: Even if a service’s database is breached, encrypted and tokenized data is generally useless to attackers. Many services also implement network segmentation and regular security audits to reduce the risk of a breach.

• Man-in-the-middle attacks: Using HTTPS for all communications ensures that data sent between a user and the service is encrypted, making interception nearly impossible.

• Chargeback fraud: Built-in tools and dispute resolution processes can help companies defend against fraudulent chargebacks, without compromising on consumer protection.

Regulatory compliance

Online payments services are often required to adhere to strict security regulations, including:

• The General Data Protection Regulation (GDPR) for user data protection in the European Union

• The revised Payment Services Directive (PSD2) in Europe, which mandates Strong Customer Authentication (SCA) for online payments

• Local laws such as the California Consumer Privacy Act (CCPA) in the United States

User responsibility

The security of online payments services also depends on how users interact with them. This interaction can pose the following risks:

• Passwords: Weak passwords or reused credentials can make accounts vulnerable.

• Phishing: Users need to be cautious of fraudulent emails or messages that claim to be from online payments services.

• Device security: Malware or spyware on a user’s device can compromise even the most secure platform.

Vulnerabilities and risks

Despite the strong protections, no system is completely immune. Here are some of the risks any online payments service faces:

• Social engineering: Attackers can trick users into revealing login credentials or payment details.

• Third-party data breaches: While the service itself might be secure, vulnerabilities at connected businesses or partners can lead to leaks.

• Zero-day exploits: Attackers can occasionally exploit new weak spots in software or systems before a patch is deployed.

Reputation and practices

The most secure online payments services are those with proven track records of responding quickly to threats, investing in security improvement, and being transparent about how they handle user data and incidents.

What should you look for when choosing an online payments service?

Choosing an online payments service isn’t just about fees or basic functionality; it’s about finding a solution that fits your specific needs—whether you’re an individual, a small business, or a growing enterprise. Here’s what to consider when making your choice.

Does it fit your business model?

• Subscription services: Look for recurring billing features that can handle upgrades, downgrades, and free trials easily.

• Marketplaces or multivendor platforms: Services such as Stripe Connect’s split payments feature can be invaluable for these types of business models.

• Ecommerce stores: Prioritize ease of integration with platforms such as Shopify, WooCommerce, or Adobe Commerce.

• Freelancers or small businesses: Look for an online payments service that has the ability to invoice customers and send automatic reminders.

How well does it scale?

• Limitations: Look at transaction volume limits or thresholds, where fees or policies might change.

• Flexibility: Consider whether the service can support multiple currencies and payment methods for new markets.

• Advanced features: Check for enterprise-level features—such as advanced reporting and API rate limits—that can scale with your business’s needs as it grows.

Does it support your customers’ preferred payment methods?

• Alternative payment methods: Beyond major credit cards, think about digital wallets (e.g., Apple Pay, Google Pay); local payment options (e.g., iDEAL, SEPA Direct Debit); and alternative methods such as buy now, pay later (BNPL) solutions.

• Global support: Ensure the service supports regional preferences, so you can cater to global audiences as you scale.

How developer-friendly is it?

• Customization: Look for clean, well-documented APIs if you need custom integrations.

• Developer tools: Check whether the service provides software development kits (SDKs) or libraries in your preferred programming language.

• Troubleshooting: Developer forums, sandbox environments, and real-time debugging logs are signs of an online payments service that prioritizes developers.

How transparent are its fees?

• Fee details: Look beyond the main rate. Ask about cross-border fees, chargeback fees, and payout fees for different withdrawal options.

• Flexibility: If your business has large transaction volumes, check whether tiered pricing or custom rates are available—and whether you can negotiate these rates.

How strong are the fraud prevention measures?

• Fraud prevention tools: Services such as Stripe Radar actively fight fraud. It’s important to also research how customizable these types of tools are.

• Customization: Look for services that let you adjust risk settings or create your own fraud rules based on your business needs.

• Disputes and chargebacks: Determine how disputes and chargebacks are handled. Does the service offer robust support, or does it leave you to navigate disputes alone?

What’s the speed and reliability of payouts?

• Payout cadence: Check the payout schedule. Do you get your funds daily, weekly, or on a customizable interval?

• Real-time support and reliability: For urgent cash flow needs, determine whether instant payouts are available and what they cost. Also make sure to look into downtime or outage history. Does the provider have a reputation for reliability under high traffic?

How intuitive is the service for customers?

• Preventing cart abandonment: Look for features such as refined mobile experiences, autofill capabilities for saved payment methods, and support for multiple languages and currencies in the checkout flow. These can help reduce abandoned carts.

• Complexity: Test the user experience. Do customers have to create an account or complete several steps to pay?

Does it integrate with your existing tools?

• Range of integration support: Beyond ecommerce platforms, consider customer relationship management (CRM) tools (e.g., Salesforce, HubSpot), accounting software (e.g., QuickBooks, Xero), and marketing tools (e.g., Zapier, Mailchimp).

• Customization: If you’re building custom workflows, how easily can you integrate payments with analytics dashboards or fulfillment systems?

What’s the customer and technical support like?

• Real-time support: Evaluate the availability of real-time support. Can you contact an actual member of the support team if something goes wrong?

• Troubleshooting documentation: Look for proactive resources. Does the service offer troubleshooting guides, webinars, or personalized onboarding help for complex setups?

• Availability: For developers, 24/7 technical support is a must—especially if your business operates globally.

How secure is the platform?

• Fraud prevention tools: Is the service PCI Level 1 compliant? Does it use tokenization for sensitive data?

• Compliance support: Evaluate how it handles compliance with laws such as the GDPR or PSD2 in your target markets.

• Alerts and notifications: Services that offer multifactor authentication and real-time alerts for suspicious activity are safer bets.

Does it offer useful extras?

• Included extras: Features such as built-in analytics, loyalty program integrations, or access to financing through the platform might make one service stand out over the rest.

• Add-ons: Consider add-ons such as fraud liability insurance, branded checkout pages, and tools for managing refunds and exchanges.

Choosing Stripe as your online payments service

Stripe combines powerful technical tools with a focus on usability and developer-first improvements. Here’s what sets Stripe apart.

Developer-centric design

Built with developers in mind, Stripe offers well-documented APIs that can make integration straightforward. The tools are flexible and easy to configure—whether you’re running a simple online store or building a custom marketplace. Stripe’s code libraries cover a wide range of languages (e.g., Python, Ruby, Java), which makes it accessible to many developers.

Global reach, local focus

Stripe supports payments in more than 135 currencies, and it integrates with local payment methods such as iDEAL in the Netherlands and Alipay in China. This global focus, paired with custom solutions for different regions, allows companies to expand internationally without facing obstacles over local payment preferences or regulations.

Advanced features

Stripe isn’t just for basic payments. It offers a variety of tools for complex setups, including:

• Stripe Connect for marketplaces and platforms, enabling simple transactions between multiple parties

• Stripe Billing to manage recurring billing with features such as prorations—adjusted charges for subscription changes in the middle of a billing cycle

• Custom reporting and advanced analytics that help businesses understand trends and track revenue

Focus on speed and scalability

Stripe is designed for businesses of all sizes, but it particularly suits companies that want to scale rapidly. Stripe can handle high transaction volumes efficiently, and it supports enterprise features such as adaptive rate limiting.

Integrated fraud prevention

Stripe Radar uses an AI model trained on hundreds of billions of data points to block fraudulent transactions before they happen. Businesses can customize these fraud detection rules to balance security with an excellent user experience.

Flexibility for users

For both developers and end users, Stripe can reduce friction in the payment process. Features such as Stripe Checkout provide a prebuilt, responsive payment form that adapts to different devices, currencies, and languages. This can help translate to fewer abandoned carts for businesses.

Continuous improvement

Stripe regularly releases updates that reflect the changing needs of businesses, such as support for cryptocurrency payments, embedded financial services through Stripe Treasury, and tools such as Stripe Terminal for in-person payments.

Reliability and trust

Stripe’s robust infrastructure is built to handle high volumes of traffic without downtime. Its high uptime means updates can be implemented without impacting service. The company also maintains compliance standards. Stripe stands out because it goes beyond handling payments; it anticipates what companies will need next and builds the tools to help them expand.