Cheapest Credit Card Processing for 2025
In the hunt for savings? Explore the cheapest credit card processing companies offering free accounts and affordable transaction fees.
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| © CreditDonkey |
The cheapest credit card processing companies are:
- Square for new businesses
- Helcim for quickly growing businesses
- Stripe for large online businesses
- Payment Depot for businesses processing $15,000+/mo
- Stax for US-only businesses
- PaymentCloud for high-risk businesses
- Chase Payment Solutions for Chase clients
- Dharma Merchant Services for high-volume businesses
- National Processing for businesses with physical locations
- Host Merchant Services for best customer service
- PayPal for e-commerce businesses
Don't be fooled by credit card processors. The cheapest credit card processing companies won't charge you hidden fees and excessive transaction fees. Some of them even offer your accounts for free, so you can say goodbye to monthly fees.
That said, your sales volume, business size, and business operations all play a role in the overall cost. You should be able to find the right fit at the end of the article.
Square Reader: Free Mobile Credit Card Reader
- Pay 2.6% + 10¢ Per Swipe for Visa, Mastercard, Discover, and American Express
- Accept Credit Cards Anywhere
- Fast Setup, No Commitments
Online Payment Processing
- Accept payments worldwide and automate payouts and financial workflows seamlessly
- Grow with confidence: Whether you're running an e-commerce store, subscription service, or marketplace, Stripe adapts to any business model
- Trusted by millions: From startups to Fortune 500 companies, Stripe powers businesses of every size
- Predictable costs: Transparent flat-rate pricing with no setup fees or monthly charges – pay only for what you use
- Enable more sales: Support credit cards, mobile wallets, and 135+ international payment methods
- Developer-friendly tools: Integrate payments quickly with Stripe's intuitive APIs and documentation
Chase Payment Solutions℠
- Limited time offer: Get $100 off the Chase Point of Sale (POS)℠ Terminal. Fill out the form and ask a Payments Advisor how to claim.
- Fast funding at no additional cost. Get deposits as soon as same day.
- Get fair and transparent pricing with no hidden fees. 2.6% rate +10¢ per tap, dip and swiped transaction. 2.90% + 25¢ per eCommerce transaction and monthly fee starting at $9.95. 3.5% rate +10¢ per keyed transaction.
- Get paid fast and manage your business from anywhere with the Chase Point of Sale system. Use our mobile app, reader and terminal to take payments via tap, dip and swipe.
- Process payments with Chase Payment Solutions, the #1 merchant acquirer in the U.S.
- Tap to Pay on iPhone offers you the ability to accept contactless cards, Apple Pay and other digital wallets on your iPhone – no additional hardware required.
- Chase Customer Insights is a complimentary business intelligence platform that offers simple, actionable analytics and reports to help you make better business decisions and reach more customers.
First Month Free
- Flat Monthly Subscription Price, Starting at $99
- 0% Markup on Direct-Cost Interchange
- 24/7 Support
High Risk? No Problem
- Competitive Options for Payment Processing at All Risk Levels
- Fast Funding
- No Setup/Hidden Fees
- No Minimum Credit Score
- All Industries Accepted
U.S. Bank Payment Solutions - Earn up to $1,000 in 3 months
Earn up to $1,000 in statement credits over 3 months when you open a new U.S. Bank Payment Solutions account and complete qualifying activities. Member FDIC.
Offer:
- Open, and be approved for, a new U.S. Bank Payment Solutions Merchant Account (MID) by June 30, 2025.
- Keep the approved account in an open status and be actively accepting and settling card payments at thee time the statement credit is issued.
- Get merchant fees refunded up to $1,000 over three months
Eliminate Credit Card Processing Fees With Surcharging
Accept Credit Cards at 0% Cost and Increase Your Margins Instantly
- How We Came Up With The List
Cheapest Credit Card Processing Companies
Credit card transaction fees and your account's monthly fees will likely be the bulk of your processing costs.
Here's an overview of your cheapest options:
| Payment Processors | Monthly Fee and Per Transaction Fee | Company Highlights |
|---|---|---|
Square  | Starts at $0/mo; 2.6% + $0.10 per transaction | Easy to use interface & free card reader available |
Helcim | No monthly fees; Interchange rate + 0.40% + $0.08 (for processing up to $50,000/mo; discounts for larger volume) | Automatically lowers your processing fees |
| Stripe | No monthly fees; 2.7% + $0.05 per transaction | Supports over 135 currencies |
| Payment Depot | Starts at $79/mo; Interchange rate + $0.08 per transaction | Save up to 40% or up to $600 on processing fees |
| Stax | Starts at $99/mo; Interchange rate + $0.08 per transaction | All-in-one platform for US-only businesses |
| PaymentCloud | Custom pricing | Specializes in high-risk businesses |
| Chase Payment Solutions | 2.6% rate +10¢ per tap, dip and swiped transaction | Handles over 50% of all e-commerce payments |
| Dharma Merchant Services | Starts at $15/mo; Interchange + 0.15% + $0.08 per transaction | Discounts for businesses processing $100k+ per month |
| National Processing | Starts at $12/mo; 2.5% + $0.10 per transaction (Basic In-person Package), 2.41% + $0.10 per transaction (Advanced Package) | One of the lowest in-person flat rates |
| Host Merchant Services | $14.99/mo; 0.25% + $0.10 per transaction (retail); 0.20% + $0.09 per transaction (restaurant) | Prompt and reliable customer service |
| PayPal | Free account; 2.29% + $0.09 per transaction | Accept PayPal, Venmo, and cryptocurrencies |
If you find a processor you like, you can skip to the calculator at the end of the list to estimate your processing cost.
1. Square: For New Businesses
| CreditDonkey Rating | |
|---|---|
| Pricing Model | Flat-rate |
| Monthly Fee | Starts at $0/mo (free plan); Plus plan starts at $29+/mo |
| Contract | Month-to-month |
| Swipe or Chip Transactions | 2.6% + $0.10 per transaction |
| Online Transactions | 2.9% + $0.30 per transaction |
| Full Review of Square | |
Square is a credit card processor that works great for new businesses because it offers a free account. You can sign up easily without worrying about approval or underwriting.
You can also get a free Square reader, which lets you accept payments in person. Card readers and terminals can get really pricey, so this can mean huge savings on your end. Square's point-of-sale app is free as well.
If you set up an online store, card transactions will cost you 2.9% + $0.30 per transaction. Accepting payments in person is a little cheaper, costing you 2.6% + $0.10 per transaction. For a $100 purchase, this will cost you $3.2 (online) and $2.7 (in-person).
- Pricing
- Features
- Equipment
- Pros + Cons
Square Reader: Free Mobile Credit Card Reader
- Pay 2.6% + 10¢ Per Swipe for Visa, Mastercard, Discover, and American Express
- Accept Credit Cards Anywhere
- Fast Setup, No Commitments
If your business is no longer new and you're looking to scale, Helcim may be the better (and still affordable) option.
2. Helcim: For Quickly Growing Businesses
| CreditDonkey Rating | |
|---|---|
| Pricing Model | Interchange plus |
| Monthly Fee | No monthly fees |
| Contract | Month-to-month |
| Swipe or Chip Transactions | Interchange rate + 0.40% + $0.08 (for processing up to $50,000/mo; discounts for larger volume) |
| Online Transactions | Interchange rate + 0.50% + $0.25 (for processing up to $50,000/month; discounts for larger volume) |
| Full Review of Helcim | |
Helcim is the most transparent a payment processor can get. It breaks down the fees for you—interchange rates, card brand fees, and processor markup—so you know exactly how much you're paying per transaction.
This isn't the case for other processors like Square and Stripe. In addition, Helcim automatically lowers your processing fees the higher your sales volume, which means you'll get cheaper rates.
For example, if your monthly sales are at $50,000, your in-person rates can cost you interchange + 0.40% + 8¢ per transaction. But once your business starts processing up to $100,000, your rates will be reduced to interchange + 0.35% + 7¢ per transaction.
Just like Square, Helcim offers a free account. You'll get access to all of Helcim's tools so you can accept credit card payments effectively. But unlike Square, your business will need to get approved for an account with Helcim.
You can check out Helcim Fee Saver to pass on credit card processing fees to your customers. This is also known as surcharging and is most suitable for businesses that send invoices to accept payments.
- Pricing
- Features
- Equipment
- Pros + Cons
Start Accepting Payments Fast
- Interchange Plus Pricing
- No Monthly Fees
- No Contracts
If you have an online store and accept international currencies, our research suggests that Stripe can be your best bet.
3. Stripe: For Large Online Businesses
| CreditDonkey Rating | |
|---|---|
| Pricing Model | Flat-rate |
| Monthly Fee | No monthly fee |
| Contract | Month-to-month |
| Swipe or Chip Transactions | 2.7% + $0.05 per transaction |
| Online Transactions | 2.9% + $0.30 per transaction |
| Full Review of Stripe | |
Stripe is one of the most flexible credit card processors. It supports over 30 languages, 135+ currencies, and over 100 payment methods, so it's ideal if you have an online store and sell to customers worldwide.
Your account is also free, so you won't need to worry about monthly fees. You'll only pay when you make a sale. Online payments will cost 2.9% + $0.30 per transaction.
Additionally, Stripe offers a smart terminal and card readers so you can accept payments in person. This costs 2.7% + $0.05 per transaction. This means a $100 purchase will cost $3.2 (online) and $2.75 (in person).
That said, Stripe is ideal for larger e-commerce businesses because you can only maximize the platform with a developer on your team. Stripe has a lot of advanced API developer tools for you to completely customize the checkout experience.
- Pricing
- Features
- Equipment
- Pros + Cons
Online Payment Processing
- Accept payments worldwide and automate payouts and financial workflows seamlessly
- Grow with confidence: Whether you're running an e-commerce store, subscription service, or marketplace, Stripe adapts to any business model
- Trusted by millions: From startups to Fortune 500 companies, Stripe powers businesses of every size
- Predictable costs: Transparent flat-rate pricing with no setup fees or monthly charges – pay only for what you use
- Enable more sales: Support credit cards, mobile wallets, and 135+ international payment methods
- Developer-friendly tools: Integrate payments quickly with Stripe's intuitive APIs and documentation
What if you don't have a lot of customers abroad? If you have at least $15,000 in monthly sales, try for the next option.
4. Payment Depot: For Midsize Businesses
| CreditDonkey Rating | |
|---|---|
| Pricing Model | Subscription |
| Monthly Fee | Starts at $79/month |
| Contract | Month-to-month |
| Swipe or Chip Transactions | Interchange rate + $0.08 |
| Online Transactions | Interchange rate + $0.18 |
| Full Review of Payment Depot | |
For midsize businesses with a sales volume of around $15,000 to $20,000+ per month, Payment Depot offers the cheapest credit card processing fees.
If you accept payments in person, each transaction will cost Interchange rate + $0.08. Online payments cost Interchange rate + $0.18. The average interchange rate is 2%. So a $100 purchase will cost you $2.08 (in person) and $2.18 (online).
That said, unlike Square, Helcim, and Stripe, Payment Depot charges monthly fees starting at $79/mo. But you can get your first month for free.
The membership plan depends on your industry, which can lead to significant savings for your business. Healthcare businesses, for example, can save up to $600+ per month. Pet Groomers, on the other hand, save an average of $400 per month.
- Pricing
- Features
- Equipment
- Pros + Cons
Payment Depot is a Stax company, which is why you'll find their processing fees similar. But you may get more features with Stax.
5. Stax: For Large and Established Businesses
| CreditDonkey Rating | |
|---|---|
| Pricing Model | Subscription |
| Monthly Fee | Starts at $99 per month |
| Contract | Month-to-month |
| Swipe or Chip Transactions | Interchange rate + $0.08 |
| Online Transactions | Interchange rate + $0.18 |
| Full Review of Stax | |
Unlike Square, Helcim, and Stripe, Stax has no processor percentage markup. You only pay the interchange rates with a flat fee per transaction, plus the monthly fee.
This can make it the cheapest option for large businesses. But it can be expensive for smaller ones since the monthly fee costs $99/mo to $199/mo.
Card payments made in person will cost you Interchange rate + $0.08 per transaction. Online payments, on the other hand, costs Interchange rate + $0.18 per transaction. The average interchange rate is 2%. This means a $100 purchase will cost you $2.08 (in person) and $2.18 (online).
That said, Stax offers a good combination of technology and price. It offers an excellent integrated payment platform with a lot of robust tools like invoicing, customer management, inventory management, etc.
- Pricing
- Features
- Equipment
- Pros + Cons
Save Up to 40%
- Flat Monthly Subscription Price, Starting at $99
- 0% Markup on Direct-Cost Interchange
- 24/7 Support
If you're a high-risk business, Stax may not be the best option. But PaymentCloud may gladly work with you.
6. PaymentCloud: For High-risk Businesses
| CreditDonkey Rating | |
|---|---|
| Pricing Model | Customized |
| Contract | Depends on your agreement; potentially long-term contracts for high-risk businesses |
| Full Review of PaymentCloud | |
Have you been told that your business belongs in risky industries? Unfortunately, some industries like cannabis, pharmaceuticals, and construction are considered high-risk. Many traditional payment processors will not work with them.
Luckily, PaymentCloud does and it's one of the best merchant account providers, too. You'll get offered customized pricing based on the payment solutions your business needs.
That said, it may be unlikely that you'll get affordable processing rates. Being in a risky industry inherently makes your rates more expensive than average due to higher possibilities of fraud.
As a solution, PaymentCloud lets you pass on the credit card fees to your customers.[7] Your customers will be charged additional fees if they pay with a credit card. However, only fees for credit card payments (not debit card payments and others) can be passed to your customers.
- Processing history (if any)
- Credit history
- Sales volume
- Chargeback ratio
- Merchant Category Code (MCC)
- Accepted mode of payment (this affects your level of risk)
- Pricing
- Features
- Equipment
- Pros + Cons
High Risk? No Problem
- Competitive Options for Payment Processing at All Risk Levels
- Fast Funding
- No Setup/Hidden Fees
- No Minimum Credit Score
- All Industries Accepted
This next affordable payment processor is best suited for a niche group of business owners.
7. Chase Payment Solutions: For Chase Business Complete Banking Account Holders
| CreditDonkey Rating | |
|---|---|
| Pricing Model | Flat-rate |
| Contract | Month-to-month |
| Swipe or Chip Transactions | 2.6% rate +10¢ per tap, dip and swiped transaction |
| Online Transactions | 2.90% + 25¢ per eCommerce transaction and monthly fee starting at $9.95 |
| Full Review of Chase Payment Solutions | |
Over 5 million businesses use Chase, making it an established and trusted credit card processing company. You also get "relationship" pricing and access to many branches and ATMs.
You may get flat-rate pricing—similar to Square, or you can opt for interchange-plus pricing if your transaction volume qualifies. Interchange-plus pricing is typically more affordable.
If you're a Chase Business Complete Banking account holder, you can opt for Chase Payment Solutions to have everything under one roof. You also get exclusive features like Tap to Pay on iPhone and same-day deposits with no fee.
Chase Payment Solutions handles 50% of all e-commerce payment processing. That means about half of all online transactions!
- Pricing
- Features
- Equipment
- Pros + Cons
Chase Payment Solutions℠
- Limited time offer: Get $100 off the Chase Point of Sale (POS)℠ Terminal. Fill out the form and ask a Payments Advisor how to claim.
- Fast funding at no additional cost. Get deposits as soon as same day.
- Get fair and transparent pricing with no hidden fees. 2.6% rate +10¢ per tap, dip and swiped transaction. 2.90% + 25¢ per eCommerce transaction and monthly fee starting at $9.95. 3.5% rate +10¢ per keyed transaction.
- Get paid fast and manage your business from anywhere with the Chase Point of Sale system. Use our mobile app, reader and terminal to take payments via tap, dip and swipe.
- Process payments with Chase Payment Solutions, the #1 merchant acquirer in the U.S.
- Tap to Pay on iPhone offers you the ability to accept contactless cards, Apple Pay and other digital wallets on your iPhone – no additional hardware required.
- Chase Customer Insights is a complimentary business intelligence platform that offers simple, actionable analytics and reports to help you make better business decisions and reach more customers.
Maybe you're not a Chase banking client. But do you have a large monthly sales volume? If so, check out Dharma instead.
8. Dharma Merchant Services: For High-Volume Businesses
| CreditDonkey Rating | |
|---|---|
| Pricing Model | Interchange plus |
| Monthly Fee | Starts at $15/month (may vary depending on your account type) |
| Contract | Month-to-month |
| Swipe or Chip Transactions | Interchange + 0.15% + $0.08 |
| Online Transactions | Interchange + 0.20% + $0.11 |
| Full Review of Dharma Merchant Services | |
Dharma Merchant Services charges some of the lowest credit card processing rates on the market. However, they only work with merchants with higher transaction volumes.
If you process more than $100,000/mo, you can get even more discounts. For example, rates for card-present transactions start at 0.15% + $0.08 plus interchange fees. But this can get reduced to as low as 0.10% + $0.11 plus interchange.
Many businesses that make the switch from their current processor to Dharma see a reduction of 20% to 40% from their current rates. That said, you'll still want to watch out for Dharma's monthly fees and consider them on your budget.
- Pricing
- Features
- Equipment
- Pros + Cons
Not quite convinced with Dharma? This next option can be another affordable processor, especially for brick-and-mortar stores.
9. National Processing: For Businesses with Physical Locations
| CreditDonkey Rating | |
|---|---|
| Pricing Model | Flat-rate pricing |
| Monthly Fee | Starts at $9.95/mo; custom pricing starts at $9.95+/mo |
| Contract | Month-to-month |
| Swipe or Chip Transactions | 2.5% + $0.10 per transaction (Basic In-person Package), 2.41% + $0.10 per transaction (Advanced Package) |
| Online Transactions | 2.9% + $0.30 per transaction |
| Full Review of National Processing | |
National Processing is a merchant account provider that offers low in-person transaction fees. Its flat rate even beats the in-person rates of Stripe, Square, and Chase.
There are no long-term contracts or monthly minimums. You'll also access everything you need to process payments.
That said, National Processing is nearer to the bottom of the list because flat rates can be pricier than other pricing models. Plus, you'll have to pay monthly fees with your account.
In comparison, Square charges a flat rate with no monthly fee (free plan). Dharma charges interchange-plus pricing with monthly fees. Depending on your sales volume, National Processing can be pricier than the two.
- Pricing
- Features
- Equipment
- Pros + Cons
What if your main priority is the processor's effectiveness in supporting your business? Check out this next option.
10. Host Merchant Services: Best Customer Service
| CreditDonkey Rating | |
|---|---|
| Pricing Model | Interchange-plus |
| Monthly Fee | $14.99/mo |
| Contract | Month-to-month |
| Swipe or Chip Transactions | 0.25% + $0.10 per transaction (retail); 0.20% + $0.09 per transaction (restaurant) |
| Online Transactions | 0.35% + $0.10 per transaction |
Host Merchant Services prides itself on its customer service, boasting that you'll never have to wait in line to get your concerns addressed. And if you make a call, a real person will also get to you in just 3 rings!
The company has received an average rating of 4.7 out of 5 stars in ConsumerAffairs, which could testify to this.
In addition, Host Merchant Services supports a variety of industries, including retail, restaurants, eCommerce, and even high-risk industries. Rates vary depending on your industry. You may even get processing equipment for free.
- Pricing
- Features
- Equipment
- Pros + Cons
You've reviewed most of the processors on this list. Still looking for the most trusted brand of them all? It's PayPal.
11. PayPal: For E-commerce Businesses
| CreditDonkey Rating | |
|---|---|
| Pricing Model | Flat-rate and Interchange-plus |
| Monthly Fee | No monthly fees (additional payment features start at $5/mo) |
| Contract | Month-to-month |
| Swipe or Chip Transactions | 2.29% + $0.09 per transaction |
| Online Transactions | 3.49% + $0.49 per transaction |
PayPal is one of the trusted brands when it comes to making and accepting payments. There's a reason why it's used by over 30 million merchants.
Your customers can pay through credit or debit cards, Apple Pay, Google Pay, Venmo, PayPal, and Pay Later options. If you're an e-commerce business, you even get to sell to customers worldwide since you can accept over 120 currencies.
PayPal works with many popular e-commerce platforms, too, such as BigCommerce, WooCommerce, and GoDaddy.
The downside is that there are a lot of fees to consider. Although you can open a free PayPal business account, that doesn't mean all the other tools are free.
You can get significant conversion rates with PayPal. Through the platform, you can have a:
- 30% increase in checkout conversion
- 30% more repeat customers
- 43% higher spend from customers
Additionally, 69% of customers feel that their payments are more secure if a business accepts PayPal. Offering that PayPal button at checkout may just increase your brand's trustworthiness.
- Pricing
- Features
- Equipment
- Pros + Cons
Given all of these processors' pricing, how do you know if the rates aren't too much? Keep scrolling.
How to Choose the Cheapest Credit Card Processor
Although it's tempting to go for the cheapest monthly fee (i.e., $0/mo over $99/mo), that's not always going to be the cheapest processor for your business specifically.
Here's an example. Let's say your business has:
- $20,000 in average monthly sales
- An average order value of $100
If your processor charges each in-person card payment 2.6% + 10¢, with $0 in monthly fees, your processing cost for the month is at least $540.
BUT if a processor charges you $99 in monthly fees, with an in-person transaction fee of interchange + $0.08, your processing cost for the month will at least be $515.
In general, it's always better to calculate the cost depending on the sales of your business.
Estimate Your Processing Cost
It's not easy to understand if a processor's rate is really cheap for your business. All those percentages and flat fees don't really paint the full picture.
You can use the calculator below to understand your processing cost based on your average monthly sales and order value.
How to Use the Calculator:
- Input your average order value. This is the average price of the products or services you sell your customers.
- Input your average monthly sales. This refers to the dollar amount your business earns per month (i.e., $20,000/mo).
- Input the percentage fee of the processor of your choice. Note that you can only calculate one type of transaction at a time (i.e., in-person payments).
For example, if you choose Square, the percentage fee would be 2.6% for in-person transactions. If you choose to calculate the fees for online transactions, input 2.9%.
- Input the flat fee per transaction. In the previous example, Square's flat fee for in-person transactions would be $0.10.
- Click "Calculate"!
You should be able to get an estimate of your average monthly transaction cost. But don't forget to factor in the monthly fee for the total processing cost.
What is a Reasonable Credit Card Processing Fee?
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| © CreditDonkey |
Credit card processing fees generally range from 1.5%-2.9% for in-person swiped transactions. Online transaction fees are a little higher at 3.5% due to higher risks of fraud.
These transaction fees have three components:
- Interchange fees: fees charged by credit card networks like Visa and Mastercard; cost the same regardless of the processor
- Assessment fees: charged by card networks and take up a small percentage
- Processor markup: charged by your processor and can be negotiated
These fees are presented differently by each credit card processor depending on the pricing model they offer.
Types of Credit Card Processing Fees
The interchange, assessment, and processor markup fees can be packaged as:
- Flat-rate pricing
All transactions are charged the same flat rate, whether a customer pays with Visa, Mastercard, Discover, or Amex.This model is more suitable for businesses with lower sales volumes. The percentage markup per transaction can make it pricey for larger sales.
- Interchange-plus pricing
This is the most transparent of all pricing models, specifying the interchange and markup fees.This model also provides more room to negotiate since you can clearly see the processor's markup. It's best for businesses with larger sales volumes.
- Subscription pricing
You'll pay a membership fee with this model. You don't typically need to worry about percentage markups found on flat rates, which can mean significant savings on your end.This is also ideal for large businesses.
- Tiered pricing
Tiered pricing is similar to flat-rate. But instead of one flat rate, you get three. The rate you'll be charged depends on the type of card used, which will be categorized as qualified, mid-qualified, and non-qualified.This can make your fees confusing to understand, and so isn't highly recommended.
How to Lower Your Credit Card Processing Fees
Credit card processing fees can be expensive, but there are ways you can lower them. Here's how:
- Surcharge your customers
Surcharging is passing on the credit card fees to your customers. Let's say your customer made a purchase for $100. A surcharge of 2% will mean an additional payment of $2.Note that surcharging is only allowed for credit card payments. You cannot surcharge debit cards. Read our article on Credit Card Surcharges to learn more about surcharging rules. - Set up a cash discounting program
You can reward customers with a discount when they pay in cash. Your customers will save money while you save on processing fees.That said, your base price will be the price with processing fees considered. This way, you don't have to lose profit.
- Negotiate with your creditors
You can negotiate the processor markup and other fees set by the processor. This can include monthly fees, payment gateway fees, equipment fees, etc.The more valuable client you are, the more negotiation power you get to have. And you're a valuable client if you have a high sales volume, a good account history, and few chargebacks. - Choose scalable plans
It makes sense to switch processors if it will save you on processing fees. But a payment processor that lets you access cheaper rates as your business grows can be convenient. - Accept alternative payment methods
Some payment processors let you take ACH payments, eChecks, and cryptocurrencies, which may offer cheaper processing costs. Card-present transactions are also more affordable than online payments.
Frequently Asked Questions on Credit Card Processing
- Can you process credit cards without a fee?
- Who charges least credit card fees?
- How do small businesses take card payments?
- What is the cheapest way to take card payments?
- What is the cheapest card machine?
- Which credit card processing is cheapest for small business?
What Experts Say
Should small business owners increase prices of goods to cover credit card processing fees or offer a discount for cash payments?
William Klinger
Professor of Business, Raritan Valley Community College
Increasing costs, such as higher credit card fees, result in lower profits unless they can be offset by higher prices. The idea of charging ...
Can a cash-only business work?
Craig Seidelson
Assistant Professor of Operations and Supply Chain Management in the School of Business, University of Indianapolis
In the age of social distancing and contactless delivery, online shopping is all the rage. Over a quarter of US all adults have bought something ...
Why are more consumers choosing to pay with credit cards?
Matthew Fisher
Marketing & Management Lecturer, San Francisco State University
Consumers choose to use credit cards primarily for convenience. Carrying cash requires a level of foresight and budgeting discipline that is ...
Why are some businesses (like coffee shops) going cashless?
Bob Sinnott
Owner of Toasted Coffee + Kitchen
Toasted Coffee is not going cashless. However, credit-card processing is expensive for coffeeshops as we tend to have multiple small tickets ...
What should small businesses look for in a credit card processor?
David W. Barman
Associate Teaching Professor, College of Business at Florida International University, School of Accounting
I tell my entrepreneurial students do not look only at price and cost and make your decision based on a valuation of one factor. There are many ...
Why are more consumers choosing to pay with credit cards?
Cris de la Torre
Professor of Finance at University of Northern Colorado, Monfort College of Business
Credit card usage has increased for a number of reasons. While there are a number of individuals that use credit card as a convenience and as a ...
Should small business owners increase prices of goods to cover credit card processing fees or offer a discount for cash payments?
Kenneth Romanowski, CFP(R), CTFA, MBA
Adjunct Faculty in the School of Graduate and Professional Studies, Rosemont College
A sign was posted in a popular local store I visited the other day. It read, "Bank fees are killing small businesses". I can appreciate this ...
Ryan Lee, Ph.D.
Assistant Professor of Economics at University of La Verne
Regarding discounts for cash payments vs increasing costs for using credit cards, to an economist, it comes down to a matter of phrasing. ...
Why are more and more consumers choosing to pay with credit cards?
Demetri Tsanacas Ph.D.
Instructor Department of Econ, Fin & Global Business, William Paterson University
There are many factors that have contributed to the increased credit card use; COVID is for sure right on the center. You may want to ...
Should small business owners increase prices of goods to cover credit card processing fees or offer a discount for cash payments?
Anthony Rondinelli
Associate Professor of Accounting & Finance, Springfield Technical Community College
In today's current business climate, and considering how many small businesses have been forced to close their doors for good, I feel that small ...
Why are more consumers choosing to pay with credit cards?
Mark Cohen
Director of Retail Studies and Adjunct Professor at the Columbia Business School
More and more consumers are choosing to use their credit cards because they have no income. They've been furloughed or laid off (or fear they ...
Can you start a business by yourself?
Supradeep Dutta, Ph.D.
Assistant Professor of Operations Management and Strategy at University at Buffalo School of Management
You can definitely start a business by yourself.
Bottom Line
Processing fees will cut into your profit. So, the cheapest credit card processing company can provide a breather. But "cheap" isn't the same for all types of businesses.
For example, if you're a new or seasonal business, you're better off with a flat-rate processor like Square. That way, you get to skip paying monthly fees.
A large and established business, on the other hand, may save the most with processors like Stax or Payment Depot. You do get monthly fees. But you'll only pay low interchange rates per transaction and avoid hefty processor markups.
Square Reader: Free Mobile Credit Card Reader
- Pay 2.6% + 10¢ Per Swipe for Visa, Mastercard, Discover, and American Express
- Accept Credit Cards Anywhere
- Fast Setup, No Commitments
Save Up to 40%
- Flat Monthly Subscription Price, Starting at $99
- 0% Markup on Direct-Cost Interchange
- 24/7 Support
References
- ^ Helcim. Pricing, Retrieved 11/29/2023
- ^ Square. Stand, Retrieved 12/7/2023
- ^ Square. Stand Mount, Retrieved 12/7/2023
- ^ Helcim. Pricing, Retrieved 11/27/2023
- ^ Stripe. Pricing, Retrieved 11/27/2023
- ^ Stax. Pricing, Retrieved 11/28/2023
- ^ PaymentCloud. Free Credit Card Processing, Retrieved 12/01/2023
- ^ Chase. Accept payments the way your customers want to pay, Retrieved 12/7/2023
- ^ Chase. Chase Card Terminal, Retrieved 04/19/2024
- ^ Dharma Merchant Services. Retail Small Business Rates, Retrieved 02/08/2024
- ^ Dharma Merchant Services. Restaurant Rates, Retrieved 02/08/2024
- ^ Dharma Merchant Services. B2B Processing Rates, Retrieved 02/08/2024
- ^ Dharma Merchant Services. American Express OptBlue, Retrieved 02/08/2024
- ^ Dharma Merchant Services. American Express OptBlue, Retrieved 02/08/24
- ^ Dharma Merchant Services. MX Merchant, Retrieved 02/08/2024
- ^ Dharma Merchant Services. Is there a closure fee?, Retrieved 02/14/2024
- ^ National Processing. Pricing, Retrieved 04/19/2024
- ^ National Processing. FAQ: What happens if I need to cancel my contract early?, Retrieved 02/06/2024
- ^ Host Merchant Services. Pricing, Retrieved 04/19/2024
- ^ PayPal. PayPal Merchant Fees, Retrieved 02/13/2024
- ^ Payapal. POS hardware at a price that's right, Retrieved 04/20/2024
Write to Kim P at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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