Payment Gateways With No Gateway Fees: Coastal Pay vs Square, Stripe, and PayPal

Let’s Define What “No Gateway Fees” Really Means

“No gateway fees” sounds simple but it gets misused. Three fee types are often blurred together.

The Three Fee Types

What “No Gateway Fee” Actually Means

It does not mean free payments. Card networks and banks still charge processing on every transaction. “No gateway fee” means there is no separate line item for the gateway. The gateway cost is either eliminated (bundled into processing at no markup) or absorbed into the processor’s per-transaction rate.

Sample Invoice With a Traditional Setup

• Card processing: $40,000 volume × 2.6% + ($0.15 × 1,000 transactions) = $1,190
• Gateway monthly fee: $25
• Gateway per-transaction fee: $0.05 × 1,000 = $50
• PCI compliance: $10/month
• Statement fee: $10/month
• Total: $1,285/month, with $95 of that being non-processing overhead

Bundled vs Separated Pricing

Coastal Pay’s $0 gateway model bundles gateway functionality into the merchant account at no markup. Same $40,000 volume on Coastal Pay’s flat 2.5% + $0.15: $1,150 with no gateway, PCI, or statement add-ons. That is $135/month or roughly $1,620/year retained.

Here’s How Coastal Pay Offers a $0 Gateway With Full Features

The $0 Gateway Promise in Specifics

• $0 setup fee to open the merchant account and activate the gateway
• $0 monthly gateway subscription for the lifetime of the account
• $0 per-gateway-transaction surcharge on transactions processed through the gateway
• $0 ACH access fee
• $0 alternative payment method add-on (Apple Pay, Google Pay, PayPal, Venmo, Klarna, Afterpay, Coinbase)
• $0 API access fee
• $0 tokenization fee

Core Gateway Features Included

• Credit and debit card processing across all major networks
• ACH processing bundled within the same merchant account
• Alternative payment methods bundled at the standard rate
• 2,000+ software integrations via the Coastal Pay integration directory
• API and developer documentation for custom implementations
• Email invoicing with branded hosted payment pages
• Payment links for text, email, or social distribution
• Virtual terminal for phone and mail-order transactions
• Recurring billing for subscriptions and payment plans
• Card-on-file tokenization for retainer and renewal billing
• Centralized reporting across all channels and locations

Coastal Pay Dashboard at a Glance

The Coastal Pay billing dashboard explicitly displays “Gateway Fee: $0.00” as a permanent line item, making the no-fee claim verifiable for every merchant. The same dashboard shows real-time settlement tracking, batch reporting, and transaction-level detail across all channels.

Pricing Layers Available

• Flat 2.5% + $0.15 per transaction with the gateway included at $0
• Custom interchange-plus pricing for higher-volume merchants (typically $100K+/month)
• Optional dual pricing program to shift card processing cost to cardholders, reducing net merchant cost on card transactions to approximately $0

Instant Approval

Most U.S. low-risk merchants are approved through Coastal Pay’s SignUp Link instant boarding flow in approximately 2 minutes. The $0 gateway is activated immediately upon approval.

Start the 2-Minute Application

How Do Square, Stripe, and PayPal Handle Gateway Costs?

Each of the major PayFacs (payment facilitators) has its own gateway-pricing approach. None charge an explicit “gateway fee” line item, but the gateway cost is built into per-transaction rates.

Where Extra Costs Show Up

• Premium features: Subscription billing, advanced fraud tools, or invoicing add-ons often carry per-transaction or monthly markups
• Chargeback fees: $15 to $25 per chargeback across the major PayFacs
• Currency conversion: 1% to 2% FX fees on international transactions
• Instant payout fees: Faster funding usually costs an extra 1% to 1.5% of the transferred amount
• Hold and reserve practices: While not a fee per se, held funds carry real opportunity cost

Coastal Pay’s Positioning

Coastal Pay is more like a traditional merchant account than a PayFac, but with transparent published pricing. The gateway is genuinely free as a line item. Processing is charged at flat 2.5% + $0.15, lower than Stripe (2.9% + $0.30) and PayPal (2.99% + $0.49) and on par with Square in-person while extending to all channels at the same rate.

What Should You Look at Besides “No Gateway Fee”?

The gateway fee is one number among many. The total cost picture includes several other factors.

Effective Blended Rate

Calculate: (total fees paid ÷ total processed volume) = effective blended rate.

Example: $50,000 monthly volume, 1,250 transactions, 2.6% + $0.10 + $25 gateway = $1,325. Effective rate = 1,325 ÷ 50,000 = 2.65%. Same volume on Coastal Pay 2.5% + $0.15 + $0 gateway = $1,437.50 ÷ 50,000 = 2.875%? No – that math depends on transaction count. With 1,250 transactions: $50,000 × 2.5% + 1,250 × $0.15 = $1,437.50. Effective rate 2.875%.

At this volume the per-transaction component favors lower-ticket businesses. At larger average tickets, Coastal Pay’s 2.5% wins more decisively. Always run your specific numbers.

Approval Speed and Underwriting Flexibility

• How fast does the provider approve new accounts?
• What is their tolerance for high-ticket transactions ($1K to $25K+)?
• How do they handle launch volume spikes?
• What is their hold and reserve practice?

Integration Coverage

• Does the gateway integrate with your existing POS, e-commerce, CRM, and accounting tools?
• Are integrations “certified” or third-party?
• What is the cost of custom development if integration is required?

Funding Times and Stability

• Standard settlement timing (1 to 2 business days is typical)
• Risk of sudden holds or reserves
• Dedicated support availability vs generic ticket queues

Coastal Pay Quick Check

Coastal Pay scores well on each dimension: instant approvals (~2 minutes), flat rate stability without surprise holds, 2,000+ integrations including most major POS and e-commerce platforms, and U.S.-based phone support at 888-266-1715.

Here’s How Coastal Pay Stacks Up for Small and Growing Businesses

Three illustrative scenarios. Numbers are rounded and intended for comparison, not exact quotes.

Scenario 1: Small E-commerce Shop, $8,000/Month

Average ticket $40, 200 transactions/month.

• Stripe at 2.9% + $0.30: $232 + $60 = $292/month, $3,504/year
• PayPal at 2.99% + $0.49: $239 + $98 = $337/month, $4,044/year
• Coastal Pay at 2.5% + $0.15: $200 + $30 = $230/month, $2,760/year

Coastal Pay savings vs Stripe: $744/year. Vs PayPal: $1,284/year.

Scenario 2: Scaling Business, $20K to $100K/Month

Growing from $20,000/month (500 transactions) to $100,000/month (2,500 transactions), $40 average ticket.

• At $20K: Coastal Pay $575/month vs Stripe $730/month. Annual savings ~$1,860.
• At $100K: Coastal Pay $2,875/month vs Stripe $3,650/month. Annual savings ~$9,300.
• Cumulative savings during scale-up: Over $20,000 across the growth journey

Add dual pricing on the same volume and net Coastal Pay cost approaches $0, retaining the full processing-fee budget.

Scenario 3: High-Ticket Coaching, $3K to $10K Transactions

Coach running 20 enrollments per month at $5,000 average = $100,000 monthly volume.

• Stripe at 2.9% + $0.30: $2,900 + $6 = $2,906/month, $34,872/year
• Coastal Pay at 2.5% + $0.15: $2,500 + $3 = $2,503/month, $30,036/year
• Annual savings: ~$4,836

Beyond pure dollars, Coastal Pay’s true merchant account underwriting reduces freeze risk during enrollment spikes – a frequent problem with PayFac platforms.

Consistent Theme

In every scenario, Coastal Pay’s $0 gateway plus flat 2.5% + $0.15 wins on cost. Layer dual pricing on top and the effective merchant cost on card transactions drops to approximately $0.

Pricing illustrative. Request a custom comparison for your exact volume and ticket size.

Where Can You Actually Sign Up for a No-Gateway-Fee Account?

Coastal Pay Signup in Four Steps

1. Click Get Started from coastalpay.com
2. Complete the SignUp Link application (60 to 90 seconds): business name, EIN or SSN, owner ID, business bank account, business type, average ticket, and approximate monthly volume
3. Receive instant approval in approximately 2 minutes for most U.S. low-risk merchants
4. Start taking payments the same day through the Coastal Pay Gateway, virtual terminal, or any of 2,000+ integrated POS and e-commerce systems

Information to Have Ready

• Legal business name and trade/DBA name
• EIN (or SSN for sole proprietors)
• Owner ID (driver’s license or passport)
• Business bank account routing and account numbers
• Approximate monthly volume and average ticket

Security and Trust

Coastal Pay is a registered ISO/MSP with Wells Fargo, Concord, CA and Axiom Bank, N.A., Maitland, FL. The platform processes $1.6B+ annually across 4,962+ active merchants and 13 acquiring bank relationships.

When Alternatives May Be Fine

• Hobby projects with under $1,000/month: Square or Stripe basic may be simpler than opening a true merchant account
• Already deep in the Shopify ecosystem with no plans to leave: Shopify Payments avoids managing a separate processor
• International-first businesses with multi-country acquiring: Adyen or Stripe enterprise may be a better fit

For everyone else – growing U.S. businesses that want real merchant account stability, transparent flat pricing, and a $0 gateway – Coastal Pay is the natural choice.

Custom Enterprise Pricing

For businesses processing $100K+/month, schedule a 20-minute call with enterprise sales for custom interchange-plus pricing and dedicated implementation.

Get a No-Gateway-Fee Account in 2 Minutes

FAQ: Common Questions About No-Fee Payment Gateways

Can I really get a payment gateway with no fees at all?

No payment gateway is truly free because card networks and acquiring banks always charge processing fees. What you can eliminate is the separate gateway fee – the standalone monthly or per-gateway charge layered on top of processing. Coastal Pay’s $0 gateway model removes that line item entirely. You still pay standard processing (flat 2.5% + $0.15 or custom interchange-plus), but no separate gateway subscription, no per-gateway transaction fee, and no setup cost.

Does Coastal Pay charge any hidden gateway or monthly fees?

No. Coastal Pay charges a flat 2.5% + $0.15 per successful transaction (or custom interchange-plus for enterprise volumes). Coastal Pay does not charge a separate gateway subscription, monthly minimum, setup fee, ACH add-on, API access fee, tokenization fee, or alternative payment method add-ons. PCI compliance is included when the annual survey is completed on time. Hardware costs are separate when applicable.

How does dual pricing remove my credit card processing fees?

Dual pricing displays two prices for each item: a cash price and a card price. The card price covers the processing cost. Customers paying with cards see the card price; customers paying with cash, ACH, or check see the cash price. The merchant’s net cost on card transactions drops to approximately $0. Coastal Pay’s dual pricing program is compliant with card network rules and properly signed at checkout, working for both in-store and online sales.

Can I use Coastal Pay’s $0 gateway with my existing POS or e-commerce platform?

Yes. Coastal Pay integrates with 2,000+ software integrations including major POS systems (Clover, Lightspeed, Toast), e-commerce platforms (Shopify, WooCommerce, BigCommerce, Magento), accounting (QuickBooks, Xero), CRMs (HubSpot, ActiveCampaign), and vertical-specific software across retail, restaurant, hotel, automotive, healthcare, and B2B.

How fast can I start taking payments with Coastal Pay?

Most U.S. low-risk merchants are approved through Coastal Pay’s SignUp Link instant boarding flow in approximately 2 minutes. Processing is live the same day, with the first batch settling 1 to 2 business days after the first day of processing. Unlike many PayFacs, Coastal Pay does not arbitrarily hold initial payouts for low-risk merchants.

Support That Backs the No-Fee Claim

U.S.-based phone support at 888-266-1715 and the online Helpdesk ticket system mean you can verify any line item or ask about any charge in real time – the transparent pricing extends to transparent communication.

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