Which is the cheapest payment gateway in the Philippines?

29 Feb 2024 By PAYCEC

Determining the cheapest payment gateway in the Philippines depends on various factors such as transaction fees, setup costs, currency conversion charges, and additional fees for specific services. Several cheapest payment gateways in the Philippines offer competitive pricing structures that cater to businesses seeking cost-effective solutions:

1. PayCEC

From the provided information, although PayCEC excels in providing a secure and efficient payment gateway facilitating various currencies and fostering trust among users, there's no specific mention or claim about being the cheapest payment gateway in the Philippines. The focus is on PayCEC's evolution to ensure seamless operation across devices, integrating advanced technology with exceptional customer service, and its global accessibility. While it's recognized as a preferred choice for secure online transactions, there isn't explicit information to suggest it as the most cost-effective option among payment gateways in the Philippines. If you need, I can emphasize the strengths and features highlighted in the content provided.

2. PayMongo:

PayMongo is often considered cost-effective for small and medium-sized businesses due to its transparent fee structure and straightforward pricing. It charges a flat rate per transaction with no setup fees or monthly charges. The transaction fee for credit and debit card payments starts at 3.5% + ₱15 per transaction. E-wallet payments via GCash and PayMaya incur a fee of 2.8% + ₱10 per transaction. PayMongo's simplicity and no hidden costs make it an attractive option for businesses with moderate transaction volumes.

2. DragonPay:

DragonPay offers a versatile payment gateway with competitive rates for various payment methods. Its pricing structure includes setup fees and transaction fees, but the rates differ based on the payment channel used. While setup fees may apply, the transaction fees are relatively low, varying depending on the payment method chosen by customers. DragonPay's flexibility in supporting multiple payment channels makes it an option worth considering for businesses seeking economical solutions.

3. PesoPay:

PesoPay provides a secure payment gateway with competitive transaction fees. However, its fee structure may include setup fees, transaction fees, and potentially other charges depending on the services required. PesoPay's rates for credit/debit card transactions and other payment methods are competitive, but businesses should inquire about setup costs and any additional charges before choosing this gateway.

4. PayPal:

PayPal, a globally recognized payment gateway, offers competitive rates for both local and international transactions. It typically charges a percentage-based transaction fee along with a fixed fee per transaction, depending on the currency and type of transaction. For domestic transactions within the Philippines, PayPal's rates are often competitive, especially for lower-volume transactions. However, currency conversion fees for international transactions might impact overall costs.

5. Verifone (formerly 2Checkout):

Verifone provides global payment processing services and offers competitive rates for businesses operating internationally. Its fees might include setup costs and transaction fees based on the volume and type of transactions. While it might not be the cheapest option for very small-scale local businesses, its competitive rates for international transactions make it a viable choice for companies engaging in cross-border trade.

When assessing the cost-effectiveness of a payment gateway, businesses should consider several factors:

• Transaction Fees: Evaluate the percentage-based fees and fixed fees per transaction, as they directly impact the overall cost for each payment processed.
• Setup Costs: Some payment gateways might charge setup fees or require additional payments for specific services or integrations. Businesses should inquire about any upfront costs before choosing a gateway.
• Currency Conversion Fees: For businesses dealing with international transactions, consider the currency conversion charges imposed by the payment gateway, as these fees can add to the overall expense.
• Additional Charges: Some gateways might have additional charges for services like chargebacks, refunds, or certain payment methods. It's essential to understand and factor in these potential costs.

In conclusion, PayMongo often stands out as a cost-effective option for businesses in the Philippines due to its straightforward fee structure without setup fees or monthly charges, especially for businesses with moderate transaction volumes. However, the best choice for the cheapest payment gateway in the Philippines depends on a business's specific needs, transaction volumes, and the types of payments it processes. Analyzing transaction fees, setup costs, and other charges helps businesses identify the most cost-effective solution that aligns with their budget and operational requirements.

Disclaimer: Before choosing a payment gateway solely based on cost, businesses should thoroughly review the terms and conditions, fee structures, and features offered by each provider to ensure it aligns with their business requirements and long-term objectives. Additionally, contacting the payment gateway providers directly to inquire about their fees and negotiating terms might also be beneficial in getting the best deal for a specific business.