For small and medium-sized businesses (SMBs) operating globally, choosing the right payment gateway is essential to streamline international transactions, reduce costs, and enhance customer trust. Here’s a quick breakdown of the top options:
- Stripe: Supports 135+ currencies, developer-friendly, but higher fees for international payments (up to 3.9% + $0.30).
- PayPal: Trusted worldwide, supports 100+ currencies, but has higher fees (up to 4.4% + fixed costs) and limited customization.
- Square: Simple setup, great for POS systems, but supports only 4 currencies.
- Worldline: Strong in Europe with 150+ currencies, but fees and setup can be complex.
- Moneris: Best for Canadian businesses; competitive rates but limited global integrations.
- Nuvei: Tailored pricing, advanced fraud tools, and 150+ currencies, but pricing isn’t publicly disclosed.
Each gateway offers unique strengths depending on your business needs, transaction volume, and target markets. For SMBs aiming to access better payment terms, establishing a U.S. business entity can unlock premium features and competitive rates. Services like BusinessAnywhere simplify this process with tools like U.S. business registration and virtual mailboxes.
1. Stripe
Stripe is a go-to payment gateway for businesses of all sizes, from small startups to Fortune 500 giants. Known for its developer-friendly approach, Stripe is especially popular among companies with global ambitions, thanks to its robust support for international transactions.
Multi-currency support
Stripe supports over 135 currencies and handles automatic currency conversion to make international payments seamless. Beyond credit cards, it also accommodates local payment methods like SEPA Direct Debit in Europe, Alipay in China, and iDEAL in the Netherlands. This flexibility is a game-changer for businesses expanding into global markets, as it reduces barriers and improves the checkout experience for international customers.
International transaction fees
While Stripe’s pricing is transparent, international transactions can add up for businesses handling high volumes. The base processing fee for online payments is 2.9% + $0.30, but international card transactions come with an additional 1% fee, bringing the total to 3.9% + $0.30.
If currency conversion is involved, there’s another 1% fee on top of that. This means an international card transaction requiring currency conversion could incur a combined fee of 2% in addition to the base rate.
A recent change, effective October 15, 2023, means Stripe no longer refunds currency conversion fees when transactions are refunded. This is something businesses need to account for, though high-volume merchants may have the option to negotiate custom pricing with lower fees.
Security and compliance
Stripe takes security seriously, holding the highest level of PCI DSS certification (Level 1). By managing sensitive payment data, it reduces the compliance workload for businesses. The platform’s fraud detection tool, Radar, uses machine learning to identify and block suspicious transactions in real time, potentially lowering chargeback rates.
For international payments, Stripe supports 3D Secure authentication. This feature not only helps meet regulatory requirements but also shifts liability for fraudulent charges, offering businesses extra peace of mind.
Ease of integration
One of Stripe’s standout features is its easy integration. Its APIs and documentation are often praised as some of the best in the industry, making it accessible even for businesses without deep technical expertise. Stripe also offers pre-built checkout solutions and customizable options to fit different needs.
The Stripe Dashboard is another valuable tool, providing detailed analytics and reporting. Businesses can monitor conversion rates by country, identify the most effective payment methods for specific regions, and keep an eye on currency conversion costs. This level of insight helps businesses fine-tune their international payment strategies.
For those using platforms like Shopify, WooCommerce, or Magento, Stripe offers native integrations that are quick to set up. This simplicity makes it an appealing choice for SMBs eager to start accepting payments from around the globe without heavy development work.
2. PayPal
PayPal offers a globally recognized and trusted platform for handling transactions, making it a go-to choice for businesses aiming to expand internationally. Its reputation helps build customer confidence, which is especially valuable for small and medium-sized businesses (SMBs) venturing into global markets. With PayPal, businesses can simplify cross-border sales and enhance customer trust.
Multi-currency support
One of PayPal’s standout features is its ability to handle multiple currencies. The platform operates in over 200 countries and regions, allowing businesses with PayPal Business accounts to accept payments in 140 currencies, receive funds in 57 currencies, and hold balances in 24 currencies.
For global businesses, this flexibility is a game-changer. Companies can either opt to convert foreign payments automatically into their primary currency (like USD) or keep the funds in their original currency within their PayPal Business account. Interestingly, more than 70% of PayPal merchant accounts are used for cross-border payments, highlighting its widespread adoption among international customers. While these currency options are incredibly versatile, they do come with specific fees, which we’ll explore next.
International transaction fees
PayPal’s international transaction fees include a base processing fee and an additional fixed fee that varies depending on the currency used. If currency conversion is required, PayPal applies an extra percentage over the market exchange rate as a service fee. For U.S.-based businesses, card processing authorization rates for cross-border payments can be up to 7% higher than the market average. Despite the fees, PayPal’s robust security features make it a reliable option for global transactions.
Security and compliance
With decades of experience under its belt, PayPal has built a strong security framework. It offers real-time fraud protection tools, manages compliance across various jurisdictions, and provides a reliable dispute resolution process. These features are particularly helpful for SMBs that may not have dedicated resources to handle compliance and fraud prevention.
Ease of integration
PayPal’s integration options are designed to be user-friendly and adaptable to different business needs. Whether you’re looking for something as simple as a "Pay with PayPal" button or need advanced API solutions, PayPal has you covered. For businesses using popular e-commerce platforms, native plugins make setup a breeze.
The dashboard is another highlight, offering tools to manage multiple currencies. Businesses can add new currencies, change their primary currency, or close currency balances with ease. Additionally, PayPal uses geolocation detection to automatically display prices in the customer’s local currency. This localization feature, combined with its intuitive interface, ensures a smooth experience for both businesses and their customers.
All in all, PayPal’s familiar and flexible platform makes it an efficient choice for businesses handling international payments.
3. Square
Square started as a point-of-sale solution but has grown into a straightforward payment processing option that resonates with small and medium-sized businesses (SMBs).
Security and Compliance
When it comes to security, Square takes its responsibilities seriously – especially for businesses handling international transactions. Acting as the merchant of record, Square takes care of PCI compliance, sparing sellers from the hassle. It provides end-to-end encryption and secure hardware without charging sellers extra for these protections. The payment data is encrypted and tokenized through Square’s proprietary system, ensuring that sensitive information never directly interacts with the seller’s device or application.
Square also keeps a close eye on every transaction, from the moment it’s accepted to when the payment is completed. By continuously improving its fraud prevention strategies, Square ensures a safer experience for businesses engaging in international sales.
These robust security features make Square an appealing choice for SMBs operating on a global scale.
4. Worldline
Worldline is a payment gateway with a strong European focus, designed to support businesses aiming for international growth. For small and medium-sized businesses (SMBs) looking to expand globally, Worldline offers several valuable features, though its pricing structure warrants close attention.
Multi-Currency Support
Worldline makes it easy to handle payments in various currencies, enabling businesses to offer local currency options to customers. This can lead to better conversion rates since customers prefer paying in their native currency. The platform processes payments from a wide range of international card networks, making it a solid choice for businesses with a global customer base. However, understanding the associated fees is key to managing costs effectively.
International Transaction Fees
Worldline’s E-Payments Starter plan charges 1.7% + $0.19 per domestic transaction. For international payments, there’s an additional 1.3% surcharge and a $0.29 fee for certain third-party acquirers. Additionally, an inactivity fee of $9.90 kicks in after six months without transactions. This fee structure might pose challenges for businesses with seasonal sales or those just starting to explore international markets.
Security and Compliance
Security is a top priority for Worldline. The platform complies with PCI DSS standards and incorporates advanced fraud detection systems to safeguard transactions. By using tokenization and encryption, it ensures sensitive payment data remains protected, even across borders with varying regulatory requirements.
Ease of Integration
Worldline’s E-Payments Starter solution is designed with simplicity in mind. It comes with no setup fees or monthly costs and includes APIs and integration tools, making it easier for businesses to integrate payment processing into their existing systems. This is particularly appealing for SMBs testing the waters of international markets without committing to significant upfront expenses.
Worldline is a strong option for businesses that value access to European markets and are ready to navigate the higher fees associated with global transactions. Its features make it a practical choice for companies seeking a reliable gateway for international payments.
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5. Moneris
Moneris is a Canadian payment gateway that caters to global small and medium-sized businesses (SMBs) with its international payment processing capabilities. While it’s primarily recognized for serving Canadian businesses, Moneris has added features that make it a solid choice for companies looking to expand their payment solutions worldwide. Let’s break down its key features, fee structure, security measures, and integration options.
Multi-Currency Support
Moneris supports payments in various currencies, including USD, CAD, EUR, GBP, and more. This flexibility minimizes currency conversion headaches and can improve international sales by showing prices in local currencies.
The platform automatically handles currency conversion at competitive rates, though businesses should account for conversion fees when calculating their total processing costs. Moneris also allows SMBs to display prices in a customer’s local currency while settling transactions in their preferred base currency, which is especially helpful for businesses targeting specific regions.
International Transaction Fees
Moneris uses a tiered pricing model based on transaction volume and business type. For international transactions, businesses can expect an additional fee of 0.5% to 1.5% on top of domestic rates. Additional costs, such as monthly statement or gateway fees, may also apply, so it’s important to review the full pricing details upfront.
While the pricing might not be as competitive for SMBs with lower transaction volumes, the predictable fee structure can make financial planning easier for businesses.
Security and Compliance
Moneris meets PCI DSS Level 1 compliance standards, ensuring that sensitive cardholder data is well-protected throughout the transaction process.
The platform includes real-time fraud detection tools that analyze transaction patterns to flag suspicious activities before they impact your business. It also supports 3D Secure authentication, which adds an extra layer of protection for international transactions – particularly useful when dealing with regions that have higher fraud risks.
Ease of Integration
Moneris offers a straightforward setup process with API integration and plugins, supported by detailed documentation.
Its merchant portal provides real-time access to transaction data, reporting tools, and account management features. This centralized dashboard makes it easier for businesses to monitor international payments and track performance across markets – all without juggling multiple systems or complicated reporting workflows.
For SMBs already operating in Canada or planning to expand there, Moneris offers a reliable foundation for managing payments both domestically and internationally, ensuring consistency and ease of use across all markets.
6. Nuvei
Based in Montreal, Nuvei offers a streamlined solution for international payments, tailored specifically for global small and medium-sized businesses (SMBs). Its unified platform helps businesses manage cross-border transactions with ease.
Multi-Currency Support
Nuvei simplifies global commerce by automatically detecting a customer’s location and displaying prices in their local currency through dynamic currency conversion. This feature not only improves the shopping experience but also helps reduce cart abandonment and increase conversion rates. On top of that, businesses can settle payments in various currencies, giving them the flexibility to align with their cash flow needs and manage risks more effectively.
International Transaction Fees
Nuvei uses a tailored pricing model that takes into account factors like transaction volume, business type, and target markets. This approach includes volume-based discounts, which are especially helpful for businesses experiencing growth. The platform also offers clear fee reporting through its merchant dashboard, making it easier for SMBs to understand their costs and make smarter decisions when it comes to international pricing.
Security and Compliance
Security is a top priority for Nuvei. The platform complies with PCI DSS Level 1 standards and meets global data protection requirements, including GDPR regulations in Europe. It employs an AI-driven fraud detection system that monitors transactions in real time to minimize fraud and reduce false positives. For added protection, Nuvei supports advanced verification methods like 3D Secure 2.0, device fingerprinting, and behavioral analytics – essential tools for SMBs entering new, unfamiliar markets.
Ease of Integration
Nuvei makes integration straightforward with its RESTful APIs, pre-built e-commerce plugins, and detailed documentation. The unified portal simplifies managing transactions across multiple currencies and regions. To ensure a seamless onboarding process, the support team is readily available to assist. Businesses can also customize white-label payment pages, maintaining consistent branding throughout the checkout process.
For SMBs venturing into international markets, Nuvei delivers a powerful mix of multi-currency functionality, transparent pricing, and advanced security measures. Its comprehensive features address the complex payment needs of global businesses, making it a solid choice for managing cross-border transactions.
Payment Gateway Comparison
For global SMBs, finding the right payment gateway means weighing features against international fee structures. To simplify the decision-making process, here’s a breakdown of some of the most popular platforms, covering their features, fees, and capabilities.
| Payment Gateway | Supported Currencies | International Transaction Fees | Key Strengths | Main Limitations |
|---|---|---|---|---|
| Stripe | 135+ currencies | 2.9% + $0.30 + 1% for international cards | Developer-friendly APIs, detailed documentation, strong fraud protection | Higher fees for smaller businesses, limited phone support |
| PayPal | 100+ currencies | 4.4% + fixed fee for international transactions | Universal brand recognition, buyer protection, easy setup | Higher transaction costs, account holds possible, limited customization |
| Square | 4 currencies (USD, CAD, GBP, AUD) | 3.5% + $0.15 for international cards | Seamless POS integration, transparent pricing, quality hardware | Limited international currency support |
| Worldline | 150+ currencies | Volume-based custom pricing | Strong European presence, local payment methods, enterprise-grade security | Complex setup process, minimum volume requirements |
| Moneris | 150+ currencies | 2.65% + $0.10 + currency conversion fees | Canadian market expertise, competitive rates, fraud tools | Limited global reach, fewer integrations than competitors |
| Nuvei | 150+ currencies | Volume-based custom pricing | AI-driven fraud detection, dynamic currency conversion, white-label options | Pricing not publicly available, primarily B2B focused |
This table highlights the core differences between these gateways, helping SMBs pinpoint the best fit for their needs. For instance, Square offers straightforward pricing and excellent POS integration but supports only four currencies, making it less appealing for businesses with global reach. On the other hand, PayPal is widely recognized and easy to set up but comes with higher transaction fees and limited customization options.
Currency support is a key factor for businesses targeting international markets. While Square only supports four currencies, platforms like Worldline and Nuvei handle 150+, enabling smoother transactions for a broader customer base. This kind of flexibility can significantly enhance customer experience and boost conversion rates in global markets.
Beyond fees and currency support, ease of integration and localized support play a huge role in ensuring smooth operations. Stripe stands out with its developer-friendly tools, while Square offers a plug-and-play approach. For more complex needs, Worldline and Nuvei provide customizable solutions. Meanwhile, Moneris excels in the Canadian market, and Worldline is a strong choice for businesses targeting Europe due to its local payment method support. Stripe and PayPal maintain a solid global presence, though Square remains focused on North America.
When it comes to security, all platforms meet PCI DSS Level 1 compliance standards. However, Nuvei takes it a step further with AI-driven fraud detection, and Stripe employs machine learning to enhance protection against high-risk international transactions.
Ultimately, each gateway serves different business needs. The right choice depends on your specific requirements, target markets, and growth plans.
Conclusion
Choosing the right payment gateway is a crucial step for small and medium-sized businesses (SMBs) aiming for global success. Stripe, PayPal, and Square each cater to different business needs, with their suitability depending on factors like transaction volume, geographic focus, and integration requirements.
When evaluating payment gateways, it’s essential to weigh factors such as currency support, transaction fees, integration complexity, and regional compliance requirements. For businesses targeting multiple international markets, platforms offering support for over 100 currencies are a must. On the other hand, businesses focusing on specific regions may benefit more from gateways that provide local payment methods and competitive pricing. These considerations, discussed earlier, are critical to aligning your payment strategy with your global expansion goals.
For many top-tier payment gateways, having a U.S. business presence is often a requirement. This is where BusinessAnywhere can simplify the process. They offer services like U.S. business registration, free first-year registered agent support, and affordable EIN assistance. Establishing a U.S.-based entity not only unlocks better payment terms but also boosts credibility with American customers and provides access to the robust U.S. financial system. Additionally, BusinessAnywhere’s Virtual Mailbox service, starting at $20 per month, supplies the professional U.S. address often required by payment processors. Their Digital Nomad Kit bundles essential tools for international entrepreneurs to set up and manage their U.S. business operations remotely.
FAQs
What should small and medium-sized businesses look for in a payment gateway for international transactions?
When choosing a payment gateway for international transactions, small and medium-sized businesses should keep a few key factors in mind. Geographic coverage and multi-currency support are vital to ensure smooth transactions in your target markets. Equally important are strong security measures, such as fraud detection, encryption, and compliance with global standards, to safeguard both your business and customer data.
It’s also crucial to evaluate costs, including transaction fees and potential hidden charges, to avoid unexpected expenses. On top of that, look for a gateway that offers seamless integration with your current systems and supports widely-used local payment methods. These features can make the payment process smoother for customers and help your business operate more efficiently across borders.
What are the benefits of setting up a U.S. business entity for payment processing and global growth?
Establishing a U.S. business entity can give you access to a broader range of international payment gateways that support multi-currency transactions. This means you can manage cross-border payments more efficiently, avoiding the constant need for currency conversions. The result? Lower transaction costs and smoother cash flow for your global operations.
On top of that, having a U.S. business entity can boost your credibility with international clients and partners. It helps build trust and fosters stronger business relationships. You’ll also gain access to the highly regarded U.S. banking and payment infrastructure, known for its reliability and global reach. These benefits make it a strong starting point for taking your business to the international stage.
What are the key differences in international transaction fees among the top payment gateways?
International transaction fees for major payment gateways typically fall between 1.4% and 3%, along with additional fixed charges per transaction. A key distinction lies in currency conversion fees, which can tack on another 1–2%, and whether the gateway imposes cross-border fees, even for transactions in the same currency.
Some gateways simplify things with flat-rate pricing, while others combine a percentage-based model with fixed fees. Since international transactions are generally pricier than domestic ones, it’s crucial to analyze the fee structure based on your business’s transaction volume and the regions you’re targeting.
