Breadcrumb

Best low-cost payment systems in Australia

Written by

The GoCardless content team comprises a group of subject-matter experts in multiple fields from across GoCardless. The authors and reviewers work in the sales, marketing, legal, and finance departments. All have in-depth knowledge and experience in various aspects of payment scheme technology and the operating rules applicable to each. The team holds expertise in the well-established payment schemes such as UK Direct Debit, the European SEPA scheme, and the US ACH scheme, as well as in schemes operating in Scandinavia, Australia, and New Zealand. See full bio

Last editedJune 20233 min read

Are you looking for an online payment system, minus the high commission fees? Fortunately there are plenty of low-cost options on the Australian market designed to get your website up and running. The best low-cost payment system blends seamlessly into your app and checkout page, enabling customers to make payments without fuss. At the same time, they won’t cost you a bundle in transaction and commission fees. Here are our picks for the cheapest online payment systems that still perform.

GoCardless

Both in terms of affordability and features, GoCardless is hard to beat. As the name suggests, it helps your customers go cardless with bank payments. Customers simply fill out a mandate to pre-authorise payment, after which time your business can pull recurring and one-off payments directly from bank accounts on the day they’re due. It’s less headache for customers and eliminates the hassle of late payments for the business. Considering that merchants who don’t use GoCardless suffer from 35% of invoices being paid late, it’s a great way to take back control of your cash flow – all with lower fees than credit card payments.

Stripe Payments

Stripe has grown rapidly from start-up to one of the world’s best-known payment systems, particularly for online retailers. Unlike GoCardless, it’s a card-first company and most Stripe payments will be made with credit or debit card. This means the fees are a little bit higher, as you’ll need to consider all the various costs associated with credit card processing from conversion rates to interchange fees. However, the system is sleek and user-friendly with a global presence. You’ll pay more for international card transactions – typically 2.9% + $0.30 per transaction.

PayPal

Perhaps one of the most trusted payment systems in Australia and beyond, PayPal offers an easy setup for businesses. Simply set up a business account and you can start selling once you’re verified, without any need to pay for a separate merchant account of your own. Customers benefit from the ability to choose a variety of payment methods at checkout, and they don’t need to have their own PayPal account to complete the transaction with a credit card. Fees are a bit higher than most others on this list, at 2.6% or 3.6% + $0.30 per transaction depending on whether the card is domestic or international. Yet if you’re looking for a safe, reliable way to get started, it can be a good solution.

eWay

Most Australian merchants will already be aware of eWay, a popular payment system used throughout the country. This payment gateway offers the highest level of payment security, following all PCI DSS regulations. It also integrates easily with most online shopping carts including WooCommerce, Magento, and others. Accept credit and debit cards along with electronic funds transfers and bank payments from your customers at relatively low rates. There are no setup fees, either, though per-transaction rates will depend on the online payment methods used – and you have to get in touch with eWay for specifics.

SecurePay

Another online payment service to try out is SecurePay, used by over 90,000 Australian businesses. It offers a fully encrypted system and a host of features to make the payments process run smoothly. Integrate SecurePay with your online store to start accepting credit and debit card payments or set up recurring billing. It’s easy to use and customize to best suit your store’s needs. You can take advantage of the free trial to get started and try out the various features of this low-cost payment system. However, one major downside to SecurePay is that it doesn’t let you process payments on mobile devices.

How to choose the best payment system for small business

There’s no single system that works the best for every business. Fortunately, Australia offers a vast selection of payment gateways, processors, and platforms to choose from. In many cases, the best option is to mix and match a few different low-cost payment systems to ensure the widest possible reach for your customers. For example, you could mix a card-first company like Stripe with a direct debit solution like GoCardless to cater for all preferences. This keeps costs low while still improving conversion rates at checkout. Just be sure to verify fees and integrations to make sure everything works together as planned.

We can help

GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.