What is a Payment Gateway

If you're running an online business, you'll need to accept payments online. A payment gateway is a service that enables merchants to securely process online payments from customers. It acts as an intermediary between your business and your customers' banks or credit card companies, ensuring that transactions are secure and successful.

How does a payment gateway work?

A customer enters their payment information on your website, such as their credit card number, expiration date, and CVV code.
This information is securely transmitted to the payment gateway, which encrypts the data to protect it from fraud.
The payment gateway then sends the payment information to the customer's bank or credit card company for verification.
The bank or credit card company approves or declines the transaction, and sends a response back to the payment gateway.
The payment gateway then sends the response to your website, letting you know whether the payment was successful or not.

Best Payment Solution in Service Software

There are many payment gateways available, each with their own features and pricing. Some of the most popular payment gateways include Sphere, Stripe, Authorize.net, and Square. ServiceWorks has it's own integrated payment gatway called SWiP.'

SWiP - ServiceWorks Integrated Payment

SWiP offers several pricing plans based on transaction volume, with transaction rates ranging from 2.19% + $0.30 to 2.75%+.32 per transaction. The specific rate you will pay depends on the plan you choose and your transaction volume. Here's a breakdown of the pricing plans offered by SWiP:

Basic Plan: This plan includes a payment gateway, merchant account, customer vault and PCI compliance with no setup fees. This is a good plan for smaller business with not many credit card transactions.
- 2.60% + $0.20 swiped/chip
- 2.90% + $0.40 ecommerce/invoice
- 3.5% + $0.25 per transaction keyed in (you key in card)
Standard Plan: This plan includes a payment gateway, merchant account, customer vault and PCI compliance with no setup fees. The transaction rate for this plan is $30 Monthly and the following rates.
- Visa/MC/Discover Qualified Rate: 2.19% + $0.30
- Visa/MC/Discover Mid Qualified: 2.19% + 0.30
- Visa/MC/Discover Non Qualified: 3.29% + 0.30
- Amex Qualified Rate: 2.75% + .32
- Amex Mid Qualified 3.50% + .32
- Amex Non Qualified 3.99% + .32
Interchange Plus Plan: Transparent Pricing – Interchange + 0.40% + $0.10 Know exactly what you're paying with clear, competitive rates — no hidden markups or bundled fees.

In addition to these plans, each plan has the option to include the following feature for additional fee.

Automatic Card Updater: $10 monthly
Fraud Prevention: $5 monthly

Authorize.net

Authorize.net offers several pricing plans based on transaction volume, with transaction rates ranging from 2.9% + $0.30 to 2.4% + $0.30 per transaction. The specific rate you will pay depends on the plan you choose and your transaction volume. Here's a breakdown of the pricing plans offered by Authorize.net:

All-in-One Option: This plan includes a payment gateway and a merchant account with no setup fees. The transaction rate for this plan is 2.9% + $0.30 per transaction.
Payment Gateway Only: This plan includes a payment gateway with no setup fees. The transaction rate for this plan is 2.9% + $0.30 per transaction.
Enterprise Solution: This plan is designed for larger businesses with high transaction volumes. It includes a dedicated account manager and customized pricing based on your business needs.

In addition to these plans, Authorize.net charges a monthly gateway fee of $25 for the All-in-One and Payment Gateway Only plans, as well as a $0.10 per-transaction fee for the Advanced Fraud Detection Suite.

Square

Square offers different transaction rates depending on the type of transaction and the payment method used. Here's a breakdown of the different rates:

Online Transactions: For online transactions, Square charges a transaction rate of 2.9% + $0.30 per transaction.
In-person Transactions: For in-person transactions, Square offers two pricing options:
Square Point of Sale: If you use Square's free point of sale app and hardware to accept payments in person, the transaction rate is 2.6% + $0.10 per transaction.
Square Terminal: If you use Square's all-in-one credit card terminal to accept payments in person, the transaction rate is 2.6% + $0.10 per transaction.
Virtual Terminal Transactions: Square also offers a virtual terminal option, which enables you to accept payments over the phone or via email. The transaction rate for virtual terminal transactions is 3.5% + $0.15 per transaction.

It's important to note that Square does not charge any monthly or annual fees, and there are no setup fees for any of its payment processing options. Additionally, Square offers volume discounts for businesses with high transaction volumes.

Stripe

Stripe also offers different transaction rates depending on the type of transaction and the payment method used. Here's a breakdown of the different rates:

Online Transactions: For online transactions, Stripe charges a transaction rate of 2.9% + $0.30 per transaction.
In-person Transactions: Stripe offers two pricing options for in-person transactions:
Stripe Terminal: If you use Stripe's all-in-one credit card terminal to accept payments in person, the transaction rate is 2.7% + $0.05 per transaction.
Stripe Billing: If you use Stripe's billing platform to create and manage invoices, the transaction rate is 2.9% + $0.30 per transaction.
Custom Pricing: For larger businesses with high transaction volumes, Stripe offers custom pricing based on your business needs.

It's important to note that Stripe does not charge any monthly or annual fees, and there are no setup fees for any of its payment processing options. Additionally, Stripe offers volume discounts for businesses with high transaction volumes.