Roqqett Blog

June 17, 2024
Author: Patrick McDill

Finding the Cheapest Payment Gateway for Your Business

Discover the most affordable payment gateways for your business and learn how to choose the right one.

Quick Summary

  • Avoid choosing a payment gateway solely based on the lowest fees, as this could lead to higher long-term costs due to issues like chargebacks.
  • Understand the difference between payment gateways and payment processors to make an informed decision.
  • Consider both hosted and integrated gateways depending on your business needs and technical capabilities.
  • Evaluate additional factors like security features, customer support, and integration capabilities beyond just the fees.
  • Read user reviews and take advantage of trial periods to ensure the payment gateway fits well with your business requirements.


Choosing the right payment gateway is crucial for any business that wants to accept payments online or in-person. While it might be tempting to opt for the gateway with the lowest fees, this decision can have long-term implications on your business's bottom line. This article will guide you through the basics of payment gateways, factors to consider beyond fees, and provide an in-depth comparison of some of the top affordable options available.

Understanding Payment Gateway Basics

Choosing the right payment gateway is crucial for your business's savings and profit. Let's break down the basics to help you make an informed decision.

What is a Payment Gateway?

A payment gateway is a digital conduit that connects your online store or POS system to the payment processing network. It’s essentially the online equivalent of a physical card terminal. The gateway securely transmits payment information from the customer to the payment processor. It encrypts sensitive card details to ensure safe passage of data over the internet.

Payment Gateways vs Payment Processors

While a payment gateway is responsible for securely transmitting payment information, a payment processor is the entity that actually processes the payment. Think of the gateway as the messenger and the processor as the executor. Understanding the difference between these two can help you better navigate your options.

Hosted vs. Integrated Gateways

When it comes to payment gateways, you have two main options: hosted and integrated.

  • Hosted Gateways: These redirect your customers to a third-party payment page to complete their transaction. They are easier to set up and maintain but can disrupt the user experience.
  • Integrated Gateways: These allow customers to complete their transactions without leaving your website. They offer a seamless user experience but require more technical setup and maintenance.
Choosing between hosted and integrated gateways depends on your business needs and technical capabilities.

Factors to Consider Beyond Fees

When choosing the right payment gateway for your business, it's essential to look beyond just the fees. Here are some critical factors to consider:

Security Features

Security should be a top priority. Look for gateways that offer robust security measures such as PCI-DSS compliance, encryption, and fraud detection tools. These features help protect your business and your customers' sensitive information.

Customer Support

Good customer support can make a significant difference. Ensure the payment gateway offers 24/7 support through various channels like phone, email, and live chat. Quick and effective support can save you a lot of headaches down the line.

Integration with Existing Systems

The payment gateway should seamlessly integrate with your existing systems, including your e-commerce platform, point-of-sale system, and accounting software. This will help streamline your operations and reduce manual work.

Remember, transaction fees are a critical factor to consider when choosing a payment gateway for your cross-border e-commerce business. These fees can vary widely between providers, so make sure to do your homework.

Top Affordable Payment Gateways

When it comes to finding the cheapest payment gateway for your business, there are a few standout options that offer great value for money. Choosing the right payment gateway can help you minimise costs and maximise profits. Here are some of the top affordable payment gateways to consider:


Stripe is a popular choice for many businesses due to its competitive pricing and ease of use. It charges 1.5% + 20p for UK cards and 2.5% + 20p for EU/Non-UK cards. There are no monthly fees, and you can cancel anytime as it operates on a month-to-month contract.


Square is another excellent option, especially for small businesses. It offers a simple fee structure of 1.4% + 25p for UK cards and 2.5% + 25p for EU/Non-UK cards. Like Stripe, Square does not have any monthly fees and operates on a month-to-month contract.


PayPal is well-known and widely accepted, making it a convenient choice for many businesses. It charges less than 3% per transaction and does not have any monthly fees. This makes it an affordable option for businesses looking to keep costs low.

If you’re operating your business on a tight budget and want to keep costs to a minimum, these three providers offer exceptional value for money.

Here's a quick comparison of the transaction fees for these gateways:

By considering these options, you can find a payment gateway that fits your business needs and helps you save on transaction costs.

Comparing Transaction Fees and Other Costs

When evaluating payment gateways, it's crucial to understand the various fees and costs involved. Transaction fees are a primary consideration, but they are not the only costs to watch out for. Here's a breakdown of what you need to know:

Transaction Fees Breakdown

Transaction fees can vary significantly between providers. These fees typically include a fixed fee per transaction and a percentage fee based on the transaction amount. For example:

It's important to compare these fees to see which provider offers the best deal for your business's typical transaction types, sizes, and volumes.

Monthly and Setup Fees

In addition to transaction fees, some payment gateways charge monthly or setup fees. These can add up, especially for small businesses. For instance:

  • Monthly fees: Some providers charge a monthly fee for access to their platform. This can range from $10 to $50 or more.
  • Setup fees: Initial setup fees can also vary, with some providers charging a one-time fee to get started.

Hidden Costs to Watch Out For

Beyond the obvious fees, there are often hidden costs that can catch you off guard. These might include:

  • Chargeback fees: Fees for handling disputed transactions.
  • International transaction fees: Additional costs for processing payments from customers outside your home country.
  • Currency conversion fees: Charges for converting payments into your local currency.
When choosing a payment gateway, it's essential to evaluate costs, negotiate rates, and save with affordable gateways. Consider features and hidden costs when choosing.

By understanding and comparing these various fees, you can make a more informed decision and find the most cost-effective payment gateway for your business.

Tips for Choosing the Right Gateway for Your Business

Choosing the best payment gateway for your business is a critical decision that can have a lasting impact on your operations, customer experience, and bottom line. Here are some tips to help you make the right choice.

Assessing Your Business Needs

First, consider your sales volume. If your sales are high, a gateway with a monthly fee but lower transaction costs might save you money. Conversely, if your sales are lower, a gateway with no monthly fee but higher transaction costs could be better. Also, think about the types of payments you need to accept, such as credit cards, digital wallets, or even cryptocurrencies.

Trial Periods and Contracts

Many payment gateways offer trial periods. Use this time to evaluate the gateway's performance, reliability, and ease of use. Pay attention to any potential delays or failures in the payment process, as these can lead to abandoned carts and lost sales. Additionally, review the contract terms carefully. Look for any hidden fees or long-term commitments that might not be immediately obvious.

Reading User Reviews

User reviews can provide valuable insights into the real-world performance of a payment gateway. Look for reviews from businesses similar to yours to get a sense of how well the gateway handles your specific needs. Pay particular attention to comments about customer support, as this can be a crucial factor if you encounter any issues.

From a business standpoint, the reliability and efficiency of this process are crucial. A delay or failure in the payment gateway chain can lead to abandoned carts, lost sales, and diminished customer trust.

Real-World Examples and Case Studies

Exploring real-world examples can provide valuable insights into how different payment gateways perform in various business scenarios. Here, we look at three distinct types of businesses and how they benefit from affordable payment gateways.

Explore real-world examples and case studies to see how businesses like yours have transformed their payment processes with Roqqett. Discover the innovative solutions that have helped them reduce fraud, boost revenue, and enhance customer satisfaction. Ready to take your business to the next level?


Finding the cheapest payment gateway for your business isn't just about looking for the lowest fees. It's crucial to balance cost with the quality of service and potential hidden expenses like chargebacks. While there are many options available, from basic gateways to comprehensive service providers, the best choice depends on your specific needs and transaction volume. Use comparison tools to get a clearer picture of the costs involved and remember, sometimes paying a bit more upfront can save you money in the long run. Choose wisely and your business will benefit from a reliable and cost-effective payment solution.

Frequently Asked Questions

What is the cheapest payment gateway?

You should avoid trying to find the payment gateways with the lowest fees as this is likely to cost you more in the long run. Of course price is important but you need to weigh up the fees against potential losses incurred by going down a more budget route. If a payment gateway’s lower costs are outweighed by the money you end up losing on expensive chargebacks it might not be worth that investment.

What payment gateway options are there?

There are two main payment options available. Which is best for your business depends on the service you require. It is possible to choose a basic payment gateway or a complete payment service provider, which offers both a payment gateway and a card machine. Both can be integrated with a card machine to allow you to take payments in person.

How can I compare payment gateway fees?

You can get free payment gateway quotes with our simple cost comparison tool. This obligation-free tool only takes a few minutes to complete. It can help any business owner quickly understand the types of fees they’ll encounter, and save time when comparing payment gateway providers.

How do I choose the best payment gateway?

The best payment gateway for your needs will depend on your business’s specific needs. They will either charge monthly fees or take a percentage of each payment. Whichever you plan to use, however, any of the five below should more than meet the requirements of most.

What are some affordable payment gateways?

The most affordable payment gateways are:Payment GatewayTransaction Fees (UK Cards)Transaction Fees (EU/Non-UK Cards)Other CostsContract LengthStripe1.5% + 20p2.5% + 20pNoneMonth-to-monthSquare1.4% + 25p2.5% + 25pNoneMonth-to-monthWorldpay0.75% – 2.75% (Sliding Scale)Same as UK Cards£9.95 minimum monthly fee18-month contract.

What should I consider when choosing a payment gateway?

The cheapest payment gateway will charge the lowest set-up and monthly fees, and transaction charges. It is important to compare these separate costs to find the most competitive deal. Depending on the type of business you operate, a provider charging more for a monthly fee with lower transaction charges may save you money if you process lots of transactions. In comparison, if you are a smaller business, a lower monthly fee and more expensive transaction charges may work out to be more cost-effective.

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