Online Payments: Ultimate guide for startups

Starting a new company, need to receive payments online.

No worries,

In this article we are going to explore:

  1. Various online payment Gateways and
  2. their pros and cons, lastly
  3. Which one is should you go for, with regards to where you are:
  1. Canada
  2. USA

If you Live in Canada here are your options:

  1. Square (
  2. Flywire (
  3. Moneris (
  4. PayPal
  5. Stripe
  6. 2Checkout
  7. Shopify payments
  8. Amazon Payments (US only)
  9. TD Bank portal


Stripe is a payment processor made for startups and developers. They have  an excellent api and documentation. You can take one time payments organise subscriptions and have extensive reporting regarding payments.

Many Silicon valley startups such as lyft, instacart, taskrabbit etc use stripe for online payments.

Stripe also has many integrations such as:

  1. Docker
  2. Docusign
  3. Marin
  4. Tableau
  5. Hubspot
  6. splunk
  7. optimizely


Regarding fees stripe offers 2 plans:

  1. Pay as you go
  2. Enterprise

In pay-as-you-go Stripe charges 2.9% + c$0.30 per transaction. Payments arrive on a 7-day rolling basis. Plus if the customer is using an international card an additional fees of + 0.6% apply and if you provide international customers ability to pay in their home currency an additional fees of +2.0 % will apply. Volume discounts are also available if you earn more than c$50000 per month.

Stripe also comes with mobile sdk and Apple Pay:

Here are the full features of stripe:

Stripe features are categorised as

  1. Aceepting payments
  2. Process
  3. settle and reconcile
  4. manage

Accepting payments:

Pre-built UI components: Use Stripe’s pre-built UI components to design your own custom payment form.

Embeddable Checkout: Get a prebuilt embeddable checkout form to add to your website. With just a few lines of code you get pre-built checkout ready to serve customers.

Checkout Api’s: Create your own unique checkout experiences with Stripe.js Api’s.

Invoicing: You can also use Stripe to invoice US based customers, customise the invoices to match your custom branding, payment terms and accept cards as well as ACH payments.

Open source plugins: With a variety of plugins available for Stripe you are spoilt for choice. Here are some: 1. WordPress 2. Magento 3. WooCommerce etc

Payment Options

Cards: Cards from all over the world work with stripe including: VISA, MasterCard and American Express

Wallets: Stripe works with almost all the major Pay wallets. Here is the list:

  1. Apple Pay
  2. Ali Pay
  3. Google Pay
  4. WeChat Pay
  5. Visa Checkout
  6. Microsoft Pay
  7. MasterPass by Mastercard

Local Currencies : Process and display charges in customers local currency. Stripe supports currencies of 135 countries


Accept payments from iOS Android or mobile website, with Stripe mobile Api’s you require no backend changes and only a few lines of code:

Process Payments:

Stripe has a pre processing layer that lets business get closer to multi-regional direct connections to major card networks including Visa, Mastercard and American Express.

Here are the sub features for the Payment optimisations:

Retry Logic: automatically retries technical refusals through alternate means

Smart MCCL Automatically assigns Merchant Category Code according to your type of business for maximum auth rates

Updates Card Accounts: Automatically updates expired cards or renewed cards to reduce failure rates. Stripe does this by working with card networks to update customer card data.

Payments and Disputes: 

Stripe fraud prevention tools are best in business including a machine learning fraud prevention system, transpareant risk scores custom rules engine, real time fraud insights.

According to stripe statistics there is a 89% chance that a card has been used in the stripe ecosystem.

Stripe has to an extent also eliminated a lot of manual work related to handling disputes with their end-to-end automated process that works with card networks such as visa. They submit evidence that’s most likely to see the company win over the consumer.

Settle and reconcile:

Through Stripe API and Dashboard you get real time data

Through Stripe API and Dashboard you get real time data about charges, refunds and transfers.

Financial reporting: stripe gives advanced financial reporting capabilities, reconcile cash transactions with those recieved form cards and merchant gateways – every deposit in stripe is tagged with a transfer report containing  details of the transactions like at what time the transaction happened what were the fees involved etc.

You can also create monthly reports and transacton level balence breakdown stripe also has custom reporting via the API

Accounting support: You can automatically sync Stipe data with your accounting software ledger. or export stripe data into csv 


Stripe gives you a dashboard so that you can see the timing of the payout and the expected date you are going to receive them, you can also get unified payouts in your own curriencies from different cross border transactions. Or in select regions opt to receive money in different currencies.

Manage Payments

Get reports about consumer data with custom sql query support pre built queries and core metrics. Get mobile apps for consumer analytics as well.

Business operations

Give roles and permissions to employees keep sensitive data protected while allowing tailor made access to speacific employees.

High security 2 step authentication for login gives you peace of mind 

Also you can attach notes to payments for your team members to review.

Third party integrations:

Stripe offers a whole lot of third party integrations from accounting, analytics to email chat apps like Shopify slack iftt etc

Get 24 X 7 support via EMail phone and Chat


Paypal is another very popular alternative to receive payments online. You can receive payments via PayPal credit card and debit cards

Paypal offers fully customizable cart integration with receive, customers can pay without leaving your site you can even accept payments over the phone fax and email.

with paypal you can accept 25 currencies from 202 countries. PayPal offers two plans one normal PayPal with 2.9% + $0.30 fees and a pro plans that has access to api’s and other goodies with $35 per month and 2.9% + $0.30 per transaction.

PayPal offers Detailed order management you get logs, monthly statements and transaction history 

One unique feature that PayPal offers is the virtual terminal with it you can process phone orders, fax orders and mail orders around the globe.


2Checkout is another checkout that is widely used with support of 87 currencies and 15 languages you can accept debit cards credit API’s and even paypal.

2 checkout also offers api and integration with over 100 + shopping carts, you can also opt for hosted inline checkout experience with customers having the feeling that they are still on your site while making a payment. 

Or for complete custom experience use the API’s to built a interface for yourself.

With 2 Checkout you can have recurring billing advanced fraud protection and advanced analytics they even have a monetization platform called avangate.

2 Checkout charges 3.4% + c$0.45 per transaction plus an additional fee of 1.5% if the customer is from outside of Canada. 2 Checkout also charges an of 2-5% above daily bank exchange rates for customers outside of Canada.

If there is a chargeback 2Checkout also charges a fee of $25. In my opinion, 2 Checkout is one of the pricier options.


Moneris is Canada’s leading payment providers. Moneris offers both Hosted Pay Page as well as customizable API.

Moneris offers a variable fees across cards plus a flat fees +0.08% 

Moneris also offers 24/7 on call customer service. Although Moneris offers online payment options it is more of a onsite product, packed with many features to receive payments from cusotmers on site. 

Shopify payments

Shopify Payments

Shopify payments is the easiest way to pay if you are using Shopify already. Needless to say, it is seamlessly integrated into Shopify. Depending upon what Shopify account you have rates vary. For the basic account, you have 2.9% + c$0.30 for domestic cards for international cards you have 3.5% plus c$0.30 per transaction and it reduces as you go up.

you can see dashboard and payment analytics on the Shopify dashboard. Well, that’s basically it. If you are using Shopify you can opt for Shopify payments

TD bank portal 

TD bank is recognized all over Canada as a trusted bank and they also offer trusted merchant banking solutions with all the services that you need.

Virtual solution, Hosted solution and customised solution

TD also has all the standered features like online reporting etc


Square is a nice alternative to receive money online. It charges a fee of 2.9% + c$0.30 per transactions. One good thing about square is that you can get your money as soon as next working day. They also offer square dashboard and an iOS app to access real-time data and powerful analytics tools.

Square also has phone support if you run into any problems.

Square has APIs as well you can either integrate a pre-built square form or integrate it with your preexisting website with the help of apis

square also integrates with a lot of third party systems like CRM ERP and many other business and accounting solutions

Square also offers point of sale solutions such as accepting cards with mobile phoens and square swipe devices to accept credit and debit cards.


Flywire is another contender in the race to help businesses accept money. With customers such as Expedia, Hilton and Volvo, flywire also has a host of services on offer


  1. easily process international payments
  2. bill international customers in their own currencies with competitive exchange rates 
  3. Get automatic reconciliation of your invoices with many of the third party accounting systems
  4. Get a dashboard to monitor fund transfers online.
  5. Get 24/7 customer support available in multiple languages.

Hi, I am Mohammed full stack javascript developer with expertise in NodeJs angular react and Vue JS. Contact me for freelance work at [email protected]