Payment gateway for small business: everything you need to know

Alexis Damen | March 31, 2025

Running a small business comes with enough challenges—your payment process shouldn’t be one of them. Whether you’re selling online, in-store, or at pop-up events, offering fast, secure, and flexible payment options is crucial for keeping customers happy and boosting sales. A payment gateway simplifies transactions, helping you accept credit cards, digital wallets, and local payment methods.

But with so many options available, how do you choose the best payment gateway for your small business? The right solution should integrate smoothly with your e-commerce store and in-person sales and offer affordable fees, strong security, and a seamless checkout experience.

In this article, you’ll learn:

What is a payment gateway?

A payment gateway is a technology that securely processes online and in-store transactions by encrypting customer payment data and transferring it to the payment processor. It’s the bridge between your store, the customer’s bank, and your business bank account.

Payment gateway flow

Suppose you run an e-commerce store, a brick-and-mortar shop, or both. In that case, a payment gateway is essential for accepting credit and debit cards, digital wallets, and alternative payment methods. Without one, your business may struggle to handle secure and frictionless transactions.

Why is a payment gateway important for small businesses?

A payment gateway is essential for small businesses because it helps collect fast and secure transactions, reducing fraud risks and boosting customer trust. With the right payment solution, you can improve conversion rates with a quick, hassle-free checkout experience.
A good payment gateway supports multiple payment methods so customers can pay using their preferred options, increasing sales and customer satisfaction. It also helps you manage cash flow more efficiently with fast payouts. When choosing a payment gateway for your small business, comparing costs, ease of integration, and the overall user experience is crucial.

Types of payment gateways

1. Hosted payment gateways

With hosted payment gateways (or prebuilt payment pages), the customer is redirected to a third-party payment page. This option is the easiest to integrate, and the provider handles security and compliance. However, with some solutions, you have less control over branding and user experience. Fortunately, with MONEI, you can customize this page with your brand colors, logo, and domain.

2. Self-hosted payment gateways

With self-hosted payment gateways, the checkout page is on your website, but payment details are sent to a third-party processor. With this option, you have more control over the user experience and branding. But it requires additional security measures like PCI DSS compliance unless you choose a provider like MONEI with built-in security features, including PCI DSS and PSD2 compliance and 3D Secure authentication.

3. API-based payment gateways

API-based payment gateways are fully integrated into your website or app using an application programming interface (API). This option gives you full control over checkout, but it requires technical integration and security compliance. With MONEI Connect, we manage integration and security so you don’t have to.

4. Local bank-integrated payment gateways

With local bank-integrated payment gateways, transactions are processed directly through a bank. You can offer payment methods trusted by local customers, but you’ll have regional and bank limitations. Fortunately, at MONEI, we help small businesses like yours accept local and alternative payment methods like Bizum, MB Way, and SEPA alongside credit card and digital wallet options like Apple Pay and Google Pay. This way, you don’t need multiple payment solutions to accept your customers’ preferred local methods.

5. Mobile payment gateways

Mobile payment gateways help you accept mobile transactions and digital wallet payments. They’re fast, convenient, and growing in popularity. The downside of this option is that it requires mobile-friendly integration. However, more payment service providers, including MONEI, offer ways to accept mobile payments from your smartphone or another mobile device like an iPad. With MONEI Pay, you can save money on expensive POS hardware and accept in-person card, digital wallet, and Bizum payments from your phone using QR codes or payment requests.

📌Get started: For small businesses, an all-in-one solution like MONEI simplifies payments while offering lower fees and greater flexibility. Sign up now.

What to consider when choosing a payment gateway for your small business

1. Transaction fees and pricing structure

Flat-rate pricing is predictable but can be costly for high-volume businesses.
Dynamic pricing offers lower costs based on sales volume.

2. Ease of integration

For e-commerce, look for pre-built integrations or plugins with Shopify, WooCommerce, PrestaShop, etc.
For physical stores, make sure the payment gateway has POS compatibility, or better yet, if you can integrate payments with a mobile device using a payment app, you can save money on point-of-sale hardware.
For omnichannel, choose a solution that syncs online and in-store payments.

3. Security and compliance

PCI DSS compliance ensures secure payment processing.
3D Secure authentication adds an extra layer of fraud protection.

4. Supported payment methods

Choose a payment gateway that supports credit cards, digital wallets (Apple Pay, Google Pay), and your customers’ preferred local payment options.

5. Customer experience

Make sure the checkout process is fast, seamless, and mobile-friendly.
Look for one-click payments and saved card options to enhance the shopping experience.

What are the costs of a payment gateway?

1. Common fees

Setup fees. Some providers charge an initial setup fee (MONEI has none).
Monthly fees. Subscription-based models charge a fixed monthly fee.
Per-transaction fees. Charged as a percentage + fixed amount (e.g., 0.15% + €0.24 per transaction).

2. Hidden costs to watch for

Chargeback fees. These fees are applied if a customer disputes a transaction.
Currency conversion fees. If you sell internationally, check for cross-border pricing.

📌Pro tip: MONEI offers dynamic fees—the more you sell, the less you’ll pay per transaction, making it a cost-effective option for small businesses.

How to integrate a payment gateway with your small business

Online stores. Most e-commerce platforms (Shopify, WooCommerce, PrestaShop, etc.) support easy payment gateway plugins and integrations.

Physical stores. Choose a payment gateway that integrates with POS systems or has a mobile payments app that you can use on any mobile device, for contactless payments and QR code transactions.

Omnichannel businesses. A well-integrated payment gateway reduces technical hassle and ensures a smooth customer experience, regardless of shoppers’ preferred channels. Use a unified omnichannel payments solution like MONEI that syncs online and in-store payments in one dashboard.

Why MONEI is the best payment gateway for small businesses

After considering cost, ease of integration, security, and scalability, MONEI stands out as the best payment gateway for small businesses. Here’s why:

1. Cost-effective pricing

Our dynamic pricing model means your transaction fees decrease as your sales increase.
No hidden fees or setup costs.

2. Supports multiple payment methods

Accept credit and debit cards, Bizum, Apple Pay, Google Pay, Click to Pay, and SEPA transfers.
Process both online and in-store transactions seamlessly.

3. Easy integration

Compatible with Shopify, WooCommerce, PrestaShop, Magento, and more.
Quick setup without complex technical configurations.

4. Advanced security features

PCI DSS compliance ensures full data protection.
3D Secure authentication prevents fraud and chargebacks.

5. Omnichannel capabilities

Manage both e-commerce and in-store payments from a single dashboard.
Accept QR code and mobile wallet payments in-store for a frictionless checkout.

6. Fast payouts and better cash flow

Daily settlements help improve cash flow management for small businesses.

Final thoughts

A payment gateway is essential if you’re looking to scale your small business and provide frictionless payments. Whether you run an online store, a physical shop, or both, choosing the right provider impacts your costs, checkout experience, and customer satisfaction.

MONEI simplifies payments by offering low fees, multiple payment methods, and easy integration for small businesses, all from one platform. Ready to optimize your payments? Sign up with MONEI today and start accepting payments effortlessly! 🚀

Alexis Damen

Alexis Damen is a former Shopify merchant turned content marketer. Here, she breaks down complex topics about payments, e-commerce, and retail to help you succeed (with MONEI as your payments partner, of course).

#Payment Gateway #Omnichannel Payments #Payment Services #Retail