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A payment gateway is like a middleman that securely moves money from your customer's card or bank to your account when they buy something online. It makes sure the payment is safe, quick, and successful.
Choosing the best payment gateway is not limited to the lowest rates, but is more about reliability, reach, and how well the system works when your business goes global. So, whether you're a freelancer, a startup, or a fast-growing DTC brand, this guide will help you find a payment solution that strikes the right balance between cost, control, and convenience.
Stripe is the best payment gateway for most businesses because it offers great flexibility with reliability. It supports global credit card processing, digital wallets, and over 100 currencies while letting developers build custom checkout flows. Stripe also integrates well with e-commerce platforms like WooCommerce and Shopify.
Aside from this, PayPal remains a strong alternative due to its worldwide recognition, buyer protection, and simple setup. It's a solid platform for freelancers and small businesses that want instant credibility.
Why we like it: While most payment gateways started online, Square began at the counter with a pocket-sized card reader. Over time, it's grown into a platform that now spans software, banking, and hardware for small businesses.
Every so often, I see entrepreneurs who stick with Square for more than one reason. Yes, mostly it's their payment gateway, but many pair it with Square's point-of-sale system, which tracks inventory, books appointments, and even rolls out loyalty programs without extra software.
Also, with Square, the money you make doesn't just stop at the checkout. Sales can drop straight into a Square Checking account, savings goals run automatically, and loans show up within minutes when cash flow runs thin. Customers get flexible options like Afterpay through which they can split purchases, while merchants see the money up-front.
Also: How Square can create a best-in-class customer experience
If you're looking to keep your customers coming back, you can start text-message marketing for just $10 per month to send promos and updates, or launch gift cards where digital ones won't cost you a thing, and physical packs start at 50 cents each, with starter sets getting delivered in a day.
That said, Square only supports eight currencies tied to countries like the US, UK, Canada, Ireland, Australia, Japan, Spain and France. This makes Square limited for brands looking to scale their businesses. Likewise, rolling reserves can frustrate sellers who need fast access to funds.
Who it's for:
-Cafes, restaurants, and retail stores that benefit from Square's POS hardware and management tools.
-Freelancers and service providers who need to send invoices or accept remote payments easily.
-Local merchants who want built-in marketing, loyalty programs, and fast deposits into checking accounts.
Who should look elsewhere:
-Global businesses that need multi-currency support and international reach.
-Enterprises with a high volume of transactions that are looking for the lowest possible processing fees.
-Hybrid businesses that cross categories (like a cafe that also sells retail), since Square's plans can be restrictive.
Square features: Hardware choices like handheld readers | Remote payments | Team tools like payroll | Developer APIs | Encryption and fraud prevention
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