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What We Look For in the Best Alternatives to PayPal1. Leaders Merchant Services: Best PayPal Alternative for Industry-Low Fees2. PAYARC: Best Option for Lower Costs and No Hidden Fees3. ProMerchant: Budget-Friendly PayPal Alternative for Retail and Restaurants4. Square: Better POS and E-Commerce Solutions Than PayPal5. Flagship Merchant Services: Quick Approval, Easy Setup, and Faster Payouts6. Stax: Best PayPal Alternative for High-Volume BusinessesOther Notable PayPal AlternativesWhich of the Best PayPal Alternatives Is Right For Your Business?FAQ
Short on Time? These Are the Best Alternatives to PayPal in 2024
- Expert’s ChoiceLeaders Merchant ServicesLeaders Merchant Services is a popular choice with our readers– Top PayPal alternative with low rates, free POS hardware, and robust e-commerce tools.
- PAYARC – Affordable services, no hidden fees, and impressive in-person and online payment features.
- ProMerchant – Budget-friendly PayPal alternative for high-risk retailers and restaurants.
What We Look For in the Best Alternatives to PayPal
When researching the best PayPal alternatives, I focused on areas where PayPal falls short. Then I narrowed my list of processors to those that offered significant benefits when compared to PayPal.- Transparent pricing. PayPal is notorious for its hidden fees and confusing pricing. My top choices offer low or affordable monthly plan fees and free hardware/software. Many don’t markup the interchange rate or offer zero-cost processing options – and they won’t cancel your account without warning like PayPal does.
- Lower transaction fees. The processors on this list offer lower, easy-to-understand transaction fees for both US and international payments. Unlike PayPal, most don’t charge different fees for different payment methods so your costs are more predictable. Several charge the same small fee whether it’s an in-person, online, or keyed in sale.
- Faster payouts. While PayPal can take up to three days to deliver money to your linked bank account, these processors will deposit funds in 48 hours or less. Most also offer a same-day funding option at no charge or for a small fee.
- Excellent customer support. Reliable and timely 24/7 technical support is standard with these popular PayPal competitors. You’ll never have to worry as you do with PayPal about accessing help for an issue that arises outside normal business hours.
- Advanced security features. Each of these PayPal alternatives offers impressive security features, including fraud and chargeback protection. While PayPal may charge a fee for some security features, these processors don’t.
Free Card Reader
Our Score
Our Score
Best Credit Card Processor in 2024
Negotiable Low Credit Card Processing Rates
Monthly Fee:
$9
Transaction Fee:
From 0.15% + $0
Pricing Model:
Multiple options
Multiple options
This payment processor allows you to choose from two or more different pricing models for paying credit card processing fees. Each model will come with its own advantages and disadvantages, so make sure to consider your options carefully before deciding which is right for your business.
Features and Benefits
- Excellent POS hardware. LMS offers free Clover terminals, which come with industry-specific features like sales, tracking, online menu pages, and tip acceptance. They’re yours to keep for as long as you use LMS’s service.
- Full-featured, secure payment gateway. You can integrate Authorize.net’s payment gateway to accept online and in-person payments and use its virtual terminal to take payments over the phone. Useful built-in features include automatic QuickBooks sync and inventory management.
- Easy access to funding. Whether you’re just starting out or need a loan to expand your business, LMS provides quick access to cash advances and business loans that you can repay through a small commission on future sales.
- Customer loyalty programs. Offering digital gift cards and loyalty rewards can help you build a base of loyal, return customers – and increase your sales.
POS hardware |
|
Security |
|
Average payout time | 48 hours |
Transaction fees on cheapest plan | ~0.15% + $0 |
Monthly fee on cheapest plan | $9.00 |
Our Score
Our Score
Custom Payment Processing Plans With No Hidden Costs
Monthly Fee:
From $69
Transaction Fee:
From 0% + 15¢
Pricing Model:
Multiple options
Multiple options
This payment processor allows you to choose from two or more different pricing models for paying credit card processing fees. Each model will come with its own advantages and disadvantages, so make sure to consider your options carefully before deciding which is right for your business.
Features and Benefits
- Global sales support. PAYARC’S partnerships with several secure international payment gateways (Planet Payment, Spreedly, RS2, TSYS) make it easy to connect with a global clientele. While PayPal limits you to just 25, you can accept payments in more than 150 currencies.
- All-in-one dashboard. Built-in tools let you create and customize invoices, set up recurring billing, view enhanced data reports, and see real-time sales and payment tracking. You can also adjust billing amounts to reflect promotions, automate tax collection, and issue invoice reminders.
- Reduced rates for nonprofits. Special discounted rates make PAYARC a good option for non-profits and educational institutions. It even offers at cost processing for qualified 501(c)(3) providers.
- Useful mobile app. With PAYARC’s mobile app, you can accept secure encrypted payments, issue refunds and receipts, add tips, and access your dashboard on the go.
POS hardware |
|
Security |
|
Average payout time | 24-48 hours with an option for same-day payout |
Transaction fees on cheapest plan | 2.49% + 30¢ (in-person) |
Monthly fee on cheapest plan | N/A |
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Our Score
Our Score
Interchange-Plus & Zero Cost Processing Plans Ideal for Restaurants and Retail
Monthly Fee:
$7.95
Transaction Fee:
From 3% + 10¢
Pricing Model:
Multiple options
Multiple options
This payment processor allows you to choose from two or more different pricing models for paying credit card processing fees. Each model will come with its own advantages and disadvantages, so make sure to consider your options carefully before deciding which is right for your business.
Features and Benefits
- Support for high-risk businesses. PayPal isn’t an option if your business falls under a “high risk” category. Not only does ProMerchant support high-risk merchants, but it also provides additional fraud protection to help you reduce your chargeback rate.
- Customer information management. ProMerchant’s software can automatically store your customers’ data so you can save billing and payment information for future sales.
- Personalized support. As soon as you’re approved for a merchant account, ProMerchant will assign you a dedicated support team to help you with onboarding and training, as well as resolve any technical or processing issues.
- Smartphone app. With the free Payanywhere app and free Bluetooth card reader, you can easily process payments tableside, at events, or in the field. You never have to worry about your internet connection – offline transactions are saved for upload once you’re back online
POS hardware |
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Security |
|
Average payout time | 24-48 hours (24 hours for transactions processed by 8:30 PM) |
Transaction fees on cheapest plan | 3% + 10¢ (credit) |
Monthly fee on cheapest plan | $7.95 |
Our Score
Our Score
Advanced E-Commerce and Security Solutions for Start-Ups
Monthly Fee:
From $0
Transaction Fee:
From 2.5% + 10¢
Pricing Model:
Flat rate
Flat rate
Flat rate pricing simplifies your payment processing bill by charging the same percentage markup on every credit or debit card transaction you receive. The payment processor still pays the variable interchange fee set by the card network (e.g. Visa, Mastercard) on each transaction, but you always pay the same fixed rate regardless.
Features and Benefits
- Online store builder. If you’re just starting out, you can use Square’s all-in-one toolkit to build your e-commerce website as well as process payments.
- Business management tools. Unlike PayPal, Square offers free software for your business niche, CRM software, marketing automation tools, and more. These can help you improve your business’s efficiency, build customer loyalty, and increase sales.
- Process multi-channel payments. In addition to accepting online, in-person, and phone payments, Square allows you to process payments for sales made on your social media platforms.
- Chargeback protection. Square will cover up to $250 in qualifying chargebacks per month and, unlike PayPal, it doesn’t charge a fee when a bank disputes a payment. It also has a team of agents dedicated to helping you resolve disputes.
POS hardware |
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Security |
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Average payout time | 24-48 hours as standard, optional same-day payout, instant payout with a Square checking account |
Transaction fees on cheapest plan | 2.5% + 10¢ |
Monthly fee on cheapest plan | $89.00 |
5. Flagship Merchant Services: Quick Approval, Easy Setup, and Faster Payouts
Our Score
Our Score
Fast Onboarding & Quick Payouts With Same-Day Funding
Monthly Fee:
From $15
Transaction Fee:
From 1.58% + 19¢
Pricing Model:
Multiple options
Multiple options
This payment processor allows you to choose from two or more different pricing models for paying credit card processing fees. Each model will come with its own advantages and disadvantages, so make sure to consider your options carefully before deciding which is right for your business.
Features and Benefits
- Wireless mobile payments. Flagship’s wireless swiper allows you to take payments and issue digital receipts on the go. You also get an app for iOS and Android devices that keeps track of cash and card transactions, refunds, and more.
- iAccess business management portal. This reporting tool gives insight into your sales, online reviews, and industry statistics, so you can see how well you stack up against the competition.
- Gift cards/loyalty program. For an additional fee, you can opt for a gift cards/loyalty program to promote your brand, expand your customer base, and increase your sales.
- Dedicated account manager. If you’re new to payment processing, Flagship will assign you a personal account manager who can help you set up your account, walk you through available services, and answer any questions you might have.
Free POS hardware and software | Free Clover Mini terminal or wireless swiper (depending on your plan) |
Fast payouts | 2-3 days, same-day payout for a fee |
Security |
|
Transaction fees on cheapest plan | 3.58% + 0.19¢ (in-person) |
Monthly fee on cheapest plan | $7.95 |
6. Stax: Best PayPal Alternative for High-Volume Businesses
Our Score
Our Score
Save Up to 40% on Credit Card Processing Fees
Monthly Fee:
From $99
Transaction Fee:
From 8¢
Pricing Model:
Subscription
Subscription
With subscription-style pricing, you’ll pay a fixed monthly fee instead of a percentage-based markup on each credit and debit card transaction. While this will considerably reduce your per-transaction fees, you’ll typically still pay a small flat fee on each transaction. This amount is unaffected by the variable interchange fees charged by the different card networks (e.g. Visa, Mastercard), helping to keep your payment processing fees more predictable.
Features and Benefits
- Free POS terminal. Unlike PayPal, Stax offers a free Swipe Simple, Dejavoo, or PAX payment terminal to handle in-person transactions (swiped, keyed in, or contactless). You can also use your own device as a terminal by installing Stax’s mobile app on your phone or tablet.
- Same-day funding. While Stax generally pays out in a few days as standard, you can get same-day funding for an additional cost.
- Large set of integrations. Stax integrates with numerous business management apps to help you streamline your operations. For instance, you can add apps like QuickBooks to simplify your accounting administration or Mailchimp to help you reach more customers via email campaigns.
- Live support channels. In addition to a comprehensive knowledge base, Stax has responsive sales and technical support available via live chat, email, and phone.
POS hardware |
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Security |
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Average payout time | 24-72 hours, same-day payout add-on |
Transaction fees on cheapest plan | 8¢ + interchange (in-person) |
Monthly fee on cheapest plan | $99.00 |
Other Notable PayPal Alternatives
7. Helcim
Our Score
Our Score
Budget-Friendly Credit Card Processing Ideal for New or Low-Volume Businesses
Monthly Fee:
None
Transaction Fee:
From 0.30% + 8¢
Pricing Model:
Interchange plus
Interchange plus
Interchange-plus pricing involves two fees for each credit or debit card transaction. The first is the interchange fee, a variable amount set by the card network (e.g. Visa, Mastercard). The second is a markup fee charged by the payment processor, typically a percentage of the transaction amount plus a small flat transaction fee. This allows you to see exactly how much of what you pay goes to the card networks and how much to the payment processor.
8. Chase Payment Solutions
Our Score
Our Score
Favorable Flat Rate Pricing & E-Commerce Features for SMEs
Monthly Fee:
$0
Transaction Fee:
From 2.6% + 10¢
Pricing Model:
Flat rate
Flat rate
Flat rate pricing simplifies your payment processing bill by charging the same percentage markup on every credit or debit card transaction you receive. The payment processor still pays the variable interchange fee set by the card network (e.g. Visa, Mastercard) on each transaction, but you always pay the same fixed rate regardless.
9. POS Pros
Our Score
Our Score
Specialized Point-of-Sale Solutions for In-Person and Online Sales
Monthly Fee:
From $5
Transaction Fee:
From 0.30% + 10¢
Pricing Model:
Multiple options
Multiple options
This payment processor allows you to choose from two or more different pricing models for paying credit card processing fees. Each model will come with its own advantages and disadvantages, so make sure to consider your options carefully before deciding which is right for your business.
10. CreditCardProcessing.com
Our Score
Our Score
Competitive Credit Card Processing Fees for High-Volume Businesses
Monthly Fee:
From $15
Transaction Fee:
From 0% + 0.05¢
Pricing Model:
Multiple options
Multiple options
This payment processor allows you to choose from two or more different pricing models for paying credit card processing fees. Each model will come with its own advantages and disadvantages, so make sure to consider your options carefully before deciding which is right for your business.
Which of the Best PayPal Alternatives Is Right For Your Business?
If you’re running a new business, don’t be fooled by PayPal’s name recognition – it’s far from the most affordable option. Even if you find PayPal’s confusing fees and lack of support frustrating, I know that switching to another processor may seem daunting. Each of the top PayPal alternatives I’ve shared in this review offer better value and plenty of perks that PayPal lacks, including free POS equipment, 24/7 live support, and impressive features for in-person and online transactions. If you’re looking for a lower cost alternative to PayPal, Leaders Merchant Services is your best option. It offers industry-low rates, free POS hardware, and excellent e-commerce capabilities. On the other hand, consider PAYARC if you want a choice of affordable plan types, including subscription-style and a flat rate plan with cheaper rates than PayPal. PAYARC is also great for global commerce. Or, if you’re dissatisfied with PayPal’s slow payouts or need excellent customer support, I’d recommend ProMerchant. It’s also a top choice for businesses with limited or poor credit history or those flagged as higher risk.If you’re weighing which PayPal alternative is the best option, here’s a quick comparison.
Best Feature | Best For | Monthly fee on cheapest plan | Transaction fees on cheapest plan | ||
Leaders Merchant Services | Industry-low pricing for interchange-plus plans and a meet or beat pricing guarantee | Merchants looking to negotiate the best rates or a cheaper alternative to PayPal | $9.00 | ~0.15% + $0 | |
PAYARC | Affordable subscription-style, flat rate, and zero cost plans for US and international payment processing | Businesses looking for a PayPal alternative with better plans, features, and pricing transparency | N/A | 2.49% + 30¢ (in-person) | |
ProMerchant | Budget-friendly rates for retail and restaurants | Businesses looking for low-cost processing, including high-risk merchants | $7.95 | 3% + 10¢ (credit) | |
Square | Free flat-fee plan for in-person/online payment processing | Small or new businesses looking for lower rates than PayPal | $89.00 | 2.5% + 10¢ | |
Flagship Merchant Services | Fast approval and quick payouts | Easy onboarding and same-day payouts for businesses that need fast access to funds | $7.95 | 3.58% + 0.19¢ (in-person) | |
Stax | Advanced e-commerce solutions with built-in invoicing and customizable online checkout | High-volume businesses that sell online and in-person | $99.00 | 8¢ + interchange (in-person) |