Processing online payments is fundamental to ecommerce. But it's also one of the most confusing aspects because there are so many options, each with different fees, requirements, and features. Choose wrong and you'll either overpay or lose customers at checkout.

For Irish businesses, the landscape is unique. You have access to Irish-focused solutions like Stripe (which has an Irish company presence), Revolut Business (a fintech success story in Ireland), and traditional banks like AIB and Bank of Ireland. Each serves different business needs. To ensure your payment processing complies with all regulations, consult the Central Bank of Ireland for guidance on payment regulation and financial services.

How Payment Processing Works

When a customer pays on your website, money travels through multiple hands: payment gateway (your website), payment processor, customer's bank, and your merchant account. Each step involves fees. Payments are verified against fraud, then settled into your business account, usually within 1-3 days.

Key Terms You Need to Know

• Payment Gateway: Software that accepts payment details on your site (Stripe, Revolut)
• Payment Processor: Processes the transaction through banking networks
• Merchant Account: Your business account where payments are deposited
• Transaction Fee: Percentage of sale (typically 1.5-3%) + fixed amount
• Setup Fee: One-time cost to activate payment processing
• PCI Compliance: Security standard for handling payment data
• SCA/3D Secure: Strong Customer Authentication, required for safety and EU regulations
• Settlement: When money actually reaches your bank account

Stripe — Best for Ecommerce Shops

Stripe is the go-to choice for ecommerce in Ireland. It's used by more Irish businesses than any other gateway. Stripe is a San Francisco company with Irish presence, which is important because it means support for Euro transactions and compliance with Irish regulations.

Why Stripe dominates: simple integration, transparent pricing, excellent documentation, good fraud protection, strong PCI compliance, settles daily, and integrates natively with Shopify, WooCommerce, and every major ecommerce platform.

Stripe Ireland fees: 1.4% + 20 cents per transaction for online payments, 1.5% + 20 cents for recurring subscriptions. No setup fee, no monthly fee. This is transparent and competitive.

How long money settles: Usually 1-2 business days. You can request faster settlement (24 hours) for a small fee. Stripe also supports virtual accounts, so you can see settlement status in real time.

Revolut Business — Growing Option for Irish Founders

Revolut is a fintech company founded in Ireland by Nikolay Storonsky. Revolut Business is their payment solution for small and medium businesses. It's newer than Stripe but growing quickly, especially with Irish founders who like supporting an Irish company.

Revolut Business offers payment processing, invoicing, and business banking integrated into one platform. No separate merchant account needed—payments go directly to your Revolut Business account.

Revolut Business fees: 1.5% + 20 cents for card payments. No setup or monthly fee. The fee structure is similar to Stripe, but Revolut also offers invoicing and expense tracking, which some businesses prefer.

Settlement: Daily settlement directly to your Revolut Business account. If you use Revolut for business expenses too, the integration is seamless.

Square — Best for Omnichannel (Online + Physical)

Square started as a point-of-sale system for physical shops. They've expanded to online payments (Square Online) and are competitive for businesses selling both offline and online.

Square fees: 1.5% + 15 cents for online payments, or 2.2% + 15 cents if using Square's payment button. No setup or monthly fee for online only. For omnichannel businesses, inventory and customers sync between online and offline.

Settlement: Next business day to your bank account. Square's main advantage is omnichannel integration—if you have a POS system too, everything syncs.

AIB Merchant Services

AIB (Allied Irish Banks) is one of Ireland's major banks. They offer merchant services for online and physical businesses. Historically, Irish businesses used their bank for payments, but this approach is increasingly outdated because third-party processors like Stripe are cheaper and easier.

AIB Merchant Services fees: Typically 2.5%-3.5% depending on business type and volume. Minimum monthly fee (usually 20-50). Setup fees apply. Settlement varies, usually 2-3 days.

Why Stripe is better than AIB: Lower fees, no minimum fee, faster settlement, better integration with ecommerce platforms, no setup fee, transparent terms. AIB is useful if you need personal relationship banking, but for pure payment processing, you'll pay more.

Bank of Ireland Payment Acceptance

Bank of Ireland also offers merchant services through their Payment Acceptance division. Similar to AIB: traditional bank-based approach, higher fees (2.5%-3.5%), minimum monthly fees (25-75), longer settlement (2-3 days).

Like AIB, BOI is useful for relationship banking but expensive for payment processing compared to Stripe or Revolut.

PayPal — Good for Multi-Market Sales

PayPal is widely recognised and trusted. Many customers prefer paying with PayPal rather than entering card details. PayPal works in 200+ countries, which makes it excellent if you sell internationally.

PayPal fees: 2.49% + 30 cents per transaction in Ireland/EU. This is higher than Stripe, but PayPal also provides buyer protection and some fraud protection.

Settlement: Usually 1-2 days to your bank account. PayPal is best used as a secondary option alongside Stripe. Many shops offer both "Pay with Stripe" and "Pay with PayPal" to maximise conversion.

Adyen — Best for High Volume and Multi-Currency

Adyen is an enterprise-level payment provider used by large online retailers and travel companies. They support hundreds of payment methods, multiple currencies, and complex international setups.

Adyen fees: Customised based on volume. No set percentage, but typically 0.8%-1.5% for high-volume businesses. Minimum transaction volume usually required. Not suitable for small businesses starting out.

PCI Compliance and Security

PCI DSS (Payment Card Industry Data Security Standard) is a security requirement for any business handling card payments. The good news: if you use a payment gateway like Stripe or Revolut, they handle PCI compliance for you. You don't need to store credit card data on your servers.

Your responsibility: Keep your website updated, use HTTPS (SSL certificate), and don't ask for unnecessary payment information. If using a proper payment gateway, you're compliant.

SCA and Strong Customer Authentication (PSD2)

PSD2 (Payment Services Directive 2) is EU regulation that requires Strong Customer Authentication (SCA), often called 3D Secure or two-factor authentication. When a customer pays, they might get a text code to verify the transaction.

This reduces fraud but can slightly increase checkout abandonment (because it's an extra step). All major payment gateways handle this automatically. Most gateways use "adaptive authentication," which means they only ask for SCA when the transaction seems risky.

Multi-Currency Support for EU and UK Trade

If you sell across the EU or to Northern Ireland/UK, you need multi-currency support. Most gateways let you accept GBP, EUR, and other currencies. Be aware of currency conversion fees:

• Stripe: 2% currency conversion fee on top of transaction fees
• Revolut: 1.5% currency conversion fee
• Square: 2% currency conversion fee
• PayPal: 2.5% + conversion fee

Payment Gateway Comparison Table

Which Payment Gateway Should You Choose?

For a new Irish ecommerce business: Stripe. It's the standard, integrates with every platform, has transparent fees, and is trusted by customers. No setup barrier, no monthly commitments.

If you want to support Irish fintech: Revolut Business. Fees are similar to Stripe, and you get integrated invoicing and business banking.

If you already have Square for in-store payments: Extend to Square Online. Inventory and customers sync automatically.

If you sell internationally: Use Stripe or PayPal as your primary gateway. Both handle multi-currency well.

If you sell primarily to existing customers and know them: PayPal works fine, though it's more expensive than Stripe.

Avoid: AIB and Bank of Ireland for payment processing. Their fees are too high compared to third-party processors. Bank with them, but process payments through Stripe or Revolut.

Setting Up Multiple Gateways

Many shops offer multiple payment options at checkout: "Pay with card" (Stripe), "Pay with PayPal", "Pay with Apple Pay". This maximises conversion because you let customers use their preferred method. Most ecommerce platforms support multiple gateways simultaneously.

Getting Started with Payment Processing

Most payment gateways have online application forms. Stripe and Revolut ask for basic business info, tax ID, and bank details. Once approved (usually within hours), you can start accepting payments. No activation call, no lengthy onboarding, no fees to get started.

The best payment gateway is the one you set up first and actually use. You can always add more options later as your business grows.

FAQs

Which payment gateway is best for small Irish businesses?

Stripe is the best choice for most small Irish ecommerce businesses. It has the lowest transparent fees (1.4% + 20c), no setup or monthly fees, integrates with all major platforms (Shopify, WooCommerce, etc.), and is trusted by customers. Stripe can grow with you from your first sale to thousands per month. If you want to support Irish fintech, Revolut Business offers similar fees with additional banking features. For more guidance, see our ecommerce web design guide for Irish shops.

How do I ensure PCI compliance for my online store?

Use a PCI-compliant payment gateway like Stripe or Revolut, and don't store credit card data on your servers. Let the gateway handle payment processing. Your responsibility: keep your website software updated, use HTTPS (SSL certificate), and maintain strong authentication. Your payment processor handles the complex PCI compliance requirements. If you follow these basics and use a reputable gateway, you're compliant. See our website audit guide for security checks.