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The Best Credit Card Processors of 2024: Pricing and Hardware

Our top picks offer competitive rates, handle most payment types and have great ratings for customer service.

Mike Berner
Written by: Mike Berner, Senior AnalystUpdated Dec 03, 2024
Chad Brooks,Managing Editor
Business.com earns commissions from some listed providers. Editorial Guidelines.

In today’s digital age, customers expect a seamless buying experience, and that includes offering a variety of payment options. But if you’re not set up for credit card processing, you’re missing out on a huge chunk of potential sales. The good news? Accepting credit cards is easier than you think. This article will walk you through the entire credit card processing process, from choosing the right provider to understanding the fees involved. We already did the heavy lifting by reviewing dozens of processors and narrowing them down to our best picks. By the end of this guide, you’ll be equipped to unlock the power of credit card payments and watch your sales soar.

Sponsored Partners
Clover Credit Card Processing
Best for POS Hardware
Clover logo

866-342-4017

Visit Site
Links to Clover Credit Card Processing
  • Starts at $14.95 per month
  • Rates from 2.3% + 10 cents
  • Hardware from $49
Merchant One
Best for Flexible Pricing
Merchant One logo

855-794-1134

Visit Site
Links to Merchant One
  • Starts at $6.95 per month
  • Rates from 0.29%
  • Free hardware available
Sekure
Best for Personalized Service
Sekure logo

844-540-1386

Visit Site
Links to Sekure
  • Custom monthly pricing
  • Custom processing rates
  • Free equipment
USBank
Best for Businesses on a Budget
USBank logo
Visit Site
Links to USBank
  • Free software available
  • Rates from 2.6% + 10 cents
  • Free hardware available
North Payments
Best for Fast Setup
North Payments logo
Visit Site
Links to North Payments
  • Contact for a price quote
  • Contact for a rate quote
  • Hardware from $9.95/month
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Table of Contents

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At business.com, we’ve spent years advising entrepreneurs, creating actionable guides for obtaining funding and managing business finances, and comparing and contrasting leading software and services to identify the best financial tools for small and growing businesses. Our playbooks and explainers are packed with advice from real business lenders, accountants, credit card processing experts, tax advisers and other finance professionals.

To inform our financial software and service recommendations, we put ourselves in the shoes of business owners and test each product’s effectiveness while taking into account its cost. Every review, whether it be for a credit card processing solution or invoicing software, is infused with our guiding principles: accuracy and objectivity. Learn more about our editorial process.

Tip Bulb

How We Decided

To determine the best credit card processors, we tried various vendors’ credit card processing equipment and examined their functionality. We compared each provider’s processing fees and transaction rates, looked at integration options and studied their...

MoreMore

To determine the best credit card processors, we tried various vendors’ credit card processing equipment and examined their functionality. We compared each provider’s processing fees and transaction rates, looked at integration options and studied their contract terms and payout times. We also considered which systems offered POS tools and which were suited for a specific industry or sales volume.

101

evaluated

35

researched

6

chosen

To determine the best credit card processors, we tried various vendors’ credit card processing equipment and examined their functionality. We compared each provider’s processing fees and transaction rates, looked at integration options and studied their contract terms and payout times. We also considered which systems offered POS tools and which were suited for a specific industry or sales volume.

101

evaluated

35

researched

6

chosen

Compare Our Best Picks

BDC Ribbon
Our Top Picks for 2024
Clover Credit Card Processing
Merchant One
North Payments
Paysafe
Stripe
Square
Rating (Out of 10)9.28.98.98.48.18.58.59.1
Best for

POS

Flexible pricing

Personalized Service

Businesses on a Budget

Fast setup

Specialized Businesses

E-Commerce

Startups

Pricing model

Subscription plus flat rate

Subscription plus flat rate

Customized

Interchange-plus

Interchange-plus, flat rate

Tiered

Flat rate

Flat rate

Monthly fees

Yes

Yes

Undisclosed

Varies

Undisclosed

No

No

No

Contract term

Month to month

3 years

Variable

Month to Month

3 years

Month to Month

None

Month to month

24/7 support

Yes

Yes

No

Yes

No

No

Yes

No

PCI compliance fee

Yes

No

No

No

Yes

No

No

No

Payout

1-3 days

Next business day

N/A

2-3 business days

Next business day

Same day

3+ business days

2-3 business days

Early termination fee

No

Sometimes

N/A

No

Yes

No

No

No

Review Link
Scroll Table

Our Reviews

Clover logo
Editor's Rating: 9.2/10

866-342-4017

Visit Site
Links to Clover Credit Card Processing

When it comes to credit card processors with top-notch POS integration, Clover stands out for its versatile hardware options. We were impressed with the Flex, a handheld terminal that lets you process transactions tableside, Meanwhile, the Clover Station provides a complete POS system that we found easy to use.  And for businesses that need simple yet effective contactless payments, we like that the Clover Go reader pairs seamlessly with your smartphone, taking the hassle out of accepting tap-and-pay transactions. We were also excited to see that newer Go readers even offer invoicing capabilities, expanding their functionality beyond simple payments.

Clover POS equipment

Clover offers various POS equipment products.  Source: Clover

StarterStandardAdvanced
Full-service dining$150$195$290
Quick-service dining$90$130$175
Retail shops$60$130$175
Professional services$14.95$50$120
Personal services$50$90$130
Home and field services$14.95$49$50

Processing fees

  • Starter: 5% + $0.10 for card-not-present transactions.
  • Standard: 5% + $0.10 for card-not-present transactions; 2.6% + $0.10 for card-present transactions.
  • Advanced: 5% + $0.10 for card-not-present transactions; 2.3%+ $0.10 for card-present transactions.

Hardware

  • $49 card reader.
  • $599 handheld terminal.
  • $1,799 register.

  • Clover offers a variety of pricing plans tailored to your business type, giving you the freedom to choose the perfect fit.
  • Unlike some competitors, Clover's subscription plans don’t charge extra per employee.
  • Clover builds all their own POS hardware, so you can get everything you need in one place.
  • While Clover is great for many businesses, high-volume merchants might find a more cost-effective solution elsewhere.
  • Clover's POS devices work best with Clover’s own processing system.
  • There is no free version of the software available.

Trust Pilot: 3.6/5

“Clover has been great for us! It’s a very affordable easy to use system,” one user wrote.

Merchant One logo
Editor's Rating: 8.9/10

855-794-1134

Visit Site
Links to Merchant One

Merchant One provides credit card processing solutions for businesses of all sizes and adjusts its pricing based on factors, such as business size, industry and credit. We were impressed by the wide range of services, including entire POS systems with terminals and credit card readers that attach wirelessly to iOS or Android devices. We also like that Merchant One boasts a high approval rate and a quick turnaround of funds.

Merchant One, a reseller of Clover POS hardware, provides high-speed processing, supports gift and loyalty card programs and offers the ability to launch text message marketing campaigns. Its e-commerce offering has many more features, including a free shopping cart and remote access. Merchant One, which boasts a 98% approval rating, has 24/7 customer support and provides you with a dedicated account manager to help you throughout the setup process, which is not something all of those we researched offered.

Merchant One interface

Merchant One features a sleek user interface. Source: Merchant One

Monthly pricing

$6.95 a month, plus a $99 annual fee. Other monthly fees may apply.

Processing fees

Merchant One’s processing rates differ based on the exact type of business

  • In-person transactions: 0.29% – 1.55%.
  • Keyed-in transactions: 0.29% – 1.99%.

Hardware

Free hardware is available upon signup. Merchant One also resells Clover POS hardware.

  • The pricing plans provide flexibility on rates, as well as free hardware.
  • Merchant One’s subscription pricing is lower than many other processors.
  • Merchant One receives excellent marks on TrustPilot for its customer service.
  • Unlike other providers that we reviewed, Merchant One doesn’t manufacture its own hardware.
  • Merchant One requires that you sign up for a three-year contract.
  • An early termination fee may be assessed for each remaining month in your contract.

Trust Pilot: 4.8/5

“Gave genuine assistance, clarified information upon request, provided answers to all given questions and even enable us to receive discounts on our current rates. Great service. Much appreciated,” one user wrote.

Sekure logo
Editor's Rating: 8.9/10

844-540-1386

Visit Site
Links to Sekure

Sekure is a credit card processing broker that gives small businesses the options they need when choosing a payment processing provider. The company will help connect you with a processor and negotiate credit card processing fees. With Sekure, you can choose from multiple payment methods and craft a plan that suits your budget and transaction volume. We like how Sekure helps you navigate the credit card processing space to find a reliable provider that offers the personalized service your business needs. Whether you prefer interchange plus pricing, flat rate pricing, or a customized package, Sekure will find a suitable plan.

Sekure Payments savings calculations

You can use Sekure’s online calculator to estimate potential savings. Source: Sekure

Contact Sekure for a customized quote.

Hardware

Sekure collaborates with various POS system providers:

  • Korona POS
  • Fastrax POS
  • Payanywhere

  • Sekure offers a variety of processing types. 
  • Sekure will reimburse your cancellation fees. 
  • You can leverage the company’s ability to create a customized plan.
  • The company acts as a broker for credit card processing services and doesn’t offer services directly. 
  • Sekure is not responsible for bills and charges.
  • Pricing information is not publicly available.

Trustpilot: 4.4/5

“The Sekure team was very knowledgeable and worked around my busy schedule to get us a smooth transition. All of my concerns were addressed right away and the switch did not require new equipment or service interruptions the best part is the savings!,” one user wrote.

USBank logo
Editor's Rating: 8.4/10
Visit Site
Links to USBank

We included USBank’s credit card processing services on our list because the company keeps budget-conscious businesses in mind. We like that they throw in free rentals of essential POS hardware to get you up and running without breaking the bank. Plus, its tiered pricing structure is clear and upfront, so there are no hidden surprises down the road. And for those times when cash flow is critical, we were particularly impressed with the same-day funding feature. This gets your processed transactions back in your hands faster than some competitors, keeping your business moving smoothly.  USBank strikes a perfect balance between affordability and functionality, making them a great choice for businesses on a budget.

USBank dashboard

USBank offers useful dashboard reporting features. Source: USBank

Processing Rates

Transaction TypeFee
Swipe, tap, insert2.6% + $0.10
Keyed-in transaction3.5% + $0.15
Online transactions2.9% + $0.30

Hardware

USBank offers free hardware rentals, as well as paid monthly plans that include POS equipment. These plans range in price from $15 to $99 per month.

  • USBank offers competitive rates on starter plans, and some even include free rentals of basic POS hardware.
  • Unlike some competitors, USBank boasts features like same-day funding for processed transactions.
  • USBank offers bundled solutions with Talech POS, which can be bundled with their processing services.
  • USBank's tiered pricing structure can be less transparent than competitors with a clear interchange-plus breakdown.
  • While USBank offers an optional bundled solution, the overall user experience might depend on your chosen POS system.
  • Finding user reviews for USBank might be harder compared to widely used processors.
North Payments logo
Editor's Rating: 8.1/10
Visit Site
Links to North Payments

North Payments differentiates itself from other processors by promising an easy application process, quick approval and free equipment. We especially like that the company is willing to work with businesses in high-risk industries and it offers next-day funding.

We were impressed with North Payments’ merchant portal, Payments Hub, which lets you view key statistics, such as gross sales, transactions, refunds, disputes and other recent activities. Payments Hub also features a virtual terminal, invoicing and other tools. North Payments also offers numerous third-party POS devices, including several Payanywhere products. One advantageous offering is North Payments’ cash discount program called EDGE, which is designed to reward customers for paying in cash.

North American Bancard terminal

Payments Hub’s virtual terminal allows you to key-in transactions. Source: North American Bancard

Although the company doesn’t disclose its rates, factors, such as your business’ size and transaction volume, will determine your final cost. You will need to contact North Payments directly for a customized quote.

  • The company accepts high-risk businesses.
  • The EDGE cash discount program is a great feature for businesses that deal primarily in cash.
  • North Payments offers a quick and easy application process, complete with free equipment.
  • The company does publicly disclose its processing rates.
  • North Payments' offering lacks some of the extra features provided by competitors.
  • Termination fees and other charges may apply.
Editor's Rating: 8.5/10

844-427-0072

Visit Site
Links to Paysafe

Paysafe caters to specific industries with specialized solutions. The company provides tailored credit card processing services for retailers, hospitality, convenience stores, gas stations and direct marketing companies. But what excites us the most is that Paysafe is willing to work with many unusual industries, including cryptocurrency, video gaming and forex – industries that often face difficulty in obtaining credit card processing services.

Paysafe checkout form

Paysafe’s e-commerce tools include a secure checkout form. Source: Paysafe

Paysafe uses a quote-based pricing model. Unlike some other providers that we reviewed, the company doesn’t publicly disclose its rates. However, you can contact the company for a customized quote.

  • For high-volume businesses, Paysafe's quote-based pricing can lead to negotiated rates lower than standard interchange-plus models offered by competitors.
  • Paysafe caters to specific industries like convenience stores, digital marketing, and even regulated online gambling, offering tailored features and compliance expertise.
  • Businesses already using Paysafe's prepaid cards or digital wallets can integrate credit card processing for a unified payment system.
  • Paysafe’s rates are less transparent compared to competitors with clear fee breakdowns.
  • Setting up and using Paysafe might require more effort compared to user-friendly options like Square or Stripe.
  • Finding clear pricing details on Paysafe’s website is difficult.
Editor's Rating: 8.5/10

Stripe is our best pick for credit card processing service for e-commerce businesses because of its straightforward processing, ease of use, added services and checkout optimization features. These elements combine to create a user experience that is seamless rather than disruptive to the checkout process — Stripe claims its checkout optimization features even lead to an average 11.9% boost in cart checkouts for its customers.

We like Stripe for its simple user interface and its integration with installment services like Klarna, Afterpay and Affirm. This gives customers the choice of how they want to pay. They can also use a credit or debit card or initiate an ACH transfer.

Additionally, Stripe offers no-code payment links, which make it easy to simply click and pay, reducing the friction between the user and checkout. We found this feature to be incredibly useful for e-commerce businesses since each added step in the checkout process increases the likelihood that a would-be customer will bounce, never to return. Stripe helps reduce these lost opportunities by making it as easy as possible for users to buy what they need and get back to their day.

Stripe payment element

Stripe’s payment element is easy to use, making it easy for customers to input their payment information on e-commerce websites. Stripe also supports the use of services like Klarna and Afterpay, giving your customers the option to pay in interest-free installments. (Source: Stripe)

Stripe offers simple, flat-rate pricing with no monthly fees and 2.9% + $0.30 per transaction for online transactions. In-person transactions cost 2.7% + $0.05.

Here’s a complete breakdown of Stripe’s pricing, including add-on costs.

  • Online transactions (Payments): 2.9% plus 30 cents
  • In-person transactions (Terminal): 2.7% plus 5 cents
  • Hardware: $59 to $349
  • Chargebacks: $15
  • Custom checkout domain: $10 per month
  • International cards: +1.5%
  • Manually entered cards: +0.5%
  • Currency conversion: +1%
  • Tap to pay: +10 cents
  • Invoicing: +0.4%

  • Stripe’s simple, flat-rate pricing is easy to follow and understand.
  • There are no contract minimums or termination fees.
  • Stripe’s checkout optimizations for e-commerce businesses are useful ways to boost sales.
  • Payouts take three or more business days, which is much slower than other credit card processors we reviewed.
  • Stripe’s per-transaction rates are higher than other credit card processors we reviewed.
  • Stripe’s cheapest hardware option, the mobile credit card processor, is more expensive than hardware from other services we reviewed.
Square logo
Editor's Rating: 9.1/10

We love Square for startups because it’s so easy to get up and running quickly. Their software and POS hardware are known for being user-friendly, and their application process is smooth for almost any business. Plus, Square’s pricing is affordable, making it a budget-conscious choice.

We like how Square lets you accept payments in all sorts of ways, from swipes and dips to contactless options and even digital gift cards (which they offer for free). This flexibility ensures you can reach your customers however they prefer to pay. For those with a physical storefront, we recommend Square’s variety of attractive and functional POS hardware options to complete your setup.

Square POS device

Square’s POS devices are affordable and fully integrate with the company’s credit card processing.  Source: Square

Processing Rates

Transaction TypeFee
Swiped or inserted chip cards, contactless payments2.6% + $0.10
Manually keyed-in payments, Card on File, Virtual Terminal3.5% + $0.15
Invoices (Free plan)3.3% + $0.30
Invoices (Plus plan)2.9% + $0.30

Hardware

  • Free Square Reader for magstripe upon signup.
  • $49 Square Reader for contactless and chip.
  • $149 Square Stand for contactless and chip
  • $299 Square Terminal
  • $799 Square Register

  • Square boasts user-friendly software and POS hardware at an accessible price point, making it perfect for startups and businesses new to credit card processing.
  • Square allows you to accept all major payment methods, including swipes, dips, contactless options and even digital gift cards.
  • Square integrates with popular e-commerce platforms and hundreds of business apps.
  • While Square doesn't have monthly subscription fees, its transaction fees can add up, especially for high-volume businesses.
  • Square has a variety of POS hardware options, but doesn’t offer any free options.
  • quare's free invoicing plan has limitations. Upgrading to their Plus plan with advanced features comes with an additional monthly cost.

Trustpilot: 4.0/5

“I have used many different Credit Card Solutions and POS Systems. I’ll take Square over all of them. It’s just easy and straight forward. No hidden fees or crazy calculations needed to determine the fees. Also great support,” one user wrote.

What is a Credit Card Processor?

A credit card payment service, also called a credit card processor or payment processor, is a company merchants use to facilitate customer transactions and payments at the point of sale (POS). When a customer uses a credit card, debit card or digital wallet to purchase something, a payment processor communicates with the customer’s card-issuing bank and facilitates the transfer of money to the merchant.

[Read more in our complete  overview of credit card processing]

What Are the Benefits of a Credit Card Processor?

The main benefit of credit card processing is that it allows you to accept credit and debit cards and, in many instances, mobile wallets like Apple Pay and Google Pay. Acceptance of these payment types is increasingly important for nearly every type of business as many customers don’t carry cash anymore. Here are a few more key benefits for business owners:

  • Sales analysis: Many credit card processors either connect with a POS system or provide an online dashboard that lets you run detailed reports.
  • Accounting integration: Syncing your credit card processing software with your accounting software saves you the effort of manually entering transaction data, and also reduces the risk of error due to manually entered data.
  • Multiple channels: Credit card processing allows you to accept credit cards in person, over the phone and online.
  • Cryptocurrency: Some credit card companies offer partnerships with digital crypto wallets to accept cryptocurrency as payment.

Clover POS equipment

A virtual terminal can be used to key-in transactions manually. Source: Clover

How Much Will a Credit Card Processor Cost?

Credit card processing rates are typically expressed as a percentage of the sale plus a small per-transaction fee. Some credit card processors charge a flat monthly subscription. Here’s a breakdown of the three most common pricing models:

Credit Card Processing Pricing Models

Tiered pricingInterchange-plus pricingFlat-rate pricing
Most plans include the following tiers, with different rates for debit and credit cards at each tier:
  • Qualified rate: Regular cards, swiped
  • Midqualified rate: Rewards, swiped
  • Nonqualified rate: Premium rewards, swiped rewards, keyed
Interchange-plus pricing has two parts:
  • Wholesale rate (interchange and assessment). These are not negotiable.
  • Processor’s markup (the percentage and per-transaction fee). You may be able to negotiate this part of the rate.
Flat-rate pricing is expressed as one of the following:
  • Flat percentage of the transaction
  • Flat percentage plus a per-transaction fee
It’s hard to know how much you’re paying the processor – or if you’re overpaying – because each processor decides which rates go into each tier.You can see the processor’s markup, which makes it easier to determine if you’re getting a good deal. This is usually the most cost-effective pricing model.Flat rates are higher than the prices in the other models but may save you money, because most have no additional fees and no contract.
This pricing model is a good choice if your customers prefer paying with debit cards.This is the pricing model most experts recommend for small businesses.This is the best pricing model for businesses with small tickets or low monthly volume.

Tiered Pricing

This is the most common pricing model, but it’s widely criticized by industry experts because it’s not as transparent as interchange-plus pricing. It attempts to simplify the interchange table by combining interchange rates, assessment fees and markups and then sorting them into tiers. Tiered pricing is also referred to as “bundled pricing” or “bucket pricing.”

Most processors categorize these tiers as qualified, midqualified and nonqualified transactions, although some plans may have only two or up to six tiers, with separate rates for credit and debit cards. The factors that determine the transaction category include the type of card ― whether it’s debit or credit and if it’s a regular, rewards, corporate, government-issued or international card ― and how the transaction is processed, whether you accept the card in person using a card reader, accept it online or key it in manually.

Did You Know?Did you know
Some processors have a special lower rate for PIN debit transactions.

Critics note a variance between processors as to which interchange rates fall into each tier, which makes it difficult to compare pricing between services. We found this to be true in our research as some processors categorize rewards cards as midqualified and others define them as nonqualified. This variance in tier categorization, sometimes referred to as “inconsistent buckets,” makes it difficult to determine how much you can expect to pay above the set costs for your processing:

  • Low rates advertised on processor websites are usually qualified debit rates. These only apply to nonrewards debit cards accepted in person with a card reader.
  • Qualified debit and qualified credit may be the only rates the sales rep quotes you, so it’s important to ask about the number of tiers, what they cost, which types of cards and acceptance methods each tier includes and what actions may cause a transaction to be downgraded to a lower tier.
  • The tiered pricing model is best for businesses whose customers prefer paying by debit card.

Interchange-Plus Pricing

Most industry experts prefer this model because it promotes pricing transparency. The interchange-plus pricing model may also be called “pass-through pricing” or “cost-plus pricing,” because the processor passes the interchange rates and assessment fees to you at cost and adds a markup.

The processor’s markup stays the same no matter what card type your customers pay with, so you can see how much you’re paying the processor. This makes it easier to spot savings when you’re comparing services. Also, many of the companies that offer interchange-plus pricing post their rates on their websites, which saves you time in gathering rates from the companies you’re interested in learning more about:

  • Many companies will quote you interchange-plus rates if you specifically request it, but some only offer this type of pricing to established customers, requiring you to process with them for a certain amount of time before you qualify. The best companies offer this pricing to all their customers.
  • The rate you’re quoted is only the markup. You’ll pay this amount in addition to the actual interchange rate and assessment fee.
  • Interchange-plus pricing is best for most businesses, and it’s the pricing model recommended by industry experts.

Flat-Rate Pricing

This is the simplest pricing model. Most processors that use this model charge a fixed percentage rate for each sale, regardless of card type. Alternatively, some processors charge a fixed percentage rate and a per-transaction fee. There are usually different rates for cards accepted in person and online.

Mobile credit card processing companies commonly use this pricing model. There are typically no monthly or annual fees, making it a good option for small businesses that don’t process enough transactions to cover these costs. Most of the time, the only other fee is a chargeback fee, which is only triggered when a customer disputes a transaction.

  • If your business processes less than $2,500 per month, some credit card processors will refer you to a processor with flat-rate pricing.
  • Most companies that offer this pricing structure set you up as a submerchant under their master merchant accounts, allowing for fast setup.
  • Flat-rate pricing is best for businesses that have small sales tickets or process a low volume of credit card transactions each month.

Are There Any Fees with Credit Card Processors?

In addition to processing rates, you’ll pay various fees to the credit card processor you choose. Some are one-time or per-occurrence fees, and others are charged monthly or annually.

TipBottom line
For a complete list and explanation of fees, including nonstandard fees that you should never pay, see our small business guide to credit card processing fees

Common Credit Card Processing Fees

  • The monthly fee (sometimes called a statement fee) usually ranges from $5 to $15. It may be higher if it includes PCI compliance and gateway fees.
  • The monthly minimum fee is normally $25, although this usually means the amount you pay in processing costs, not the minimum dollar amount of sales you must process per month.
  • PCI compliance is $100 per year on average, although some companies may prorate it and charge it monthly, sometimes including it into the monthly fee.
  • The payment gateway fee varies by the payment gateway you use. Most are charged monthly, although some companies also charge a small per-transaction fee.
  • Various network fees, such as Mastercard’s Merchant Location Fee and Visa’s Fixed Acquirer Network Fee, may be passed on to you as either monthly or annual fees.

These fees are also common but only charged per occurrence:

  • Batch fees are nominal daily fees that you pay when you close out the day’s sales, costing 10 to 30 cents and usually the same amount as your per-transaction fee.
  • Address verification service (AVS) fees are usually a few cents per transaction when you use this anti-fraud tool to verify the address and ZIP code of the cardholder.
  • Voice authorization is another antifraud tool with a small per-use fee. It’s rarely required, but you’re charged for each occurrence.
  • Chargeback fees are usually $15 or $20 per incident but may be as much as $45.
  • PCI noncompliance is a high monthly fee that you must pay if you fail to establish and maintain your PCI compliance. [Learn about other payment processing laws and regulations.]
  • A nonsufficient funds (NSF) fee is charged if you don’t have enough money in your business bank account to pay the fees you owe the processor.

Fees to Avoid

Some processors charge a variety of miscellaneous fees in addition to the standard fees listed above. Some of the worst are cancellation fees, club or membership fees and fees for what the contract vaguely defines as “additional services.”

Hidden Fees

Again, it’s important to read the entire contract before you sign anything to make sure no fees are tucked away in the fine print. As you read the contract, note every fee it lists. Then, before you sign the contract, ask your sales rep what each fee is for, how much it costs, how frequently it’s charged and if it can be waived. If the sales rep agrees to waive a fee, be sure to get this in writing, either in the contract or as an addendum.

How to Choose a Credit Card Processor

Selecting the right credit card processor can make a big difference for your business’s bottom line. Follow this checklist to help you make the best choice.

1. Assess Your Business Needs

Determine the average number and size of transactions. This will tell you which credit card pricing model will give you the most bang for your buck. Consider any special needs related to your industry. E-commerce businesses will require the ability to accept credit cards through online checkout systems. High-risk businesses should also seek out credit card processors with high acceptance rates.

You should also evaluate your existing POS system and software needs. Does the credit card processor integrate with your systems?

2. Compare Processors and Fees

Carefully examine fee structures, including transaction fees, monthly fees, setup fees, and any additional charges. Look for hidden fees like chargeback fees, early termination fees, or monthly minimums.

3. Evaluate Customer Support and Security

Assess the processor’s customer support channels (phone, email, live chat) and response time. Ensure that the processor is PCI compliant and offers robust security measures to protect customer data. Also, you should assess the processor’s tools and support for handling chargebacks, which are a major source of frustration for some small businesses.

4. Read Reviews and Testimonials

Explore testimonials from third-party, user-generated review sites such as Trustpilot and TrustRadius. This can help gauge customer satisfaction and uncover the pros and cons.

5. Negotiate and Compare

Obtain quotes from multiple processors to compare pricing and features. Don’t hesitate to negotiate fees, especially if you have a high transaction volume. Lastly, carefully review the contract terms before signing.

What Features of a Credit Card Processor Do I Need?

Before you commit to a processor, consider what you will need for your business. Features that we considered for our best picks include the following:

  • Pricing: We looked at processing rates and account fees to find out how much it costs to accept credit card payments with each company. We also considered the pricing model the company uses and how transparent it is about its pricing.
  • Contracts and service terms: Standard processing contracts have lengthy terms and hefty early termination fees that make it difficult to switch providers. We looked for processors that offer month-to-month service with no cancellation fees, rather than locking you into a service.
  • Selection of processing types: Many small businesses want to accept payments wherever their customers are, so we considered whether the processor offers multiple processing methods. We looked for those that allow you to accept PayPal and automated clearing house payments in addition to all major credit cards.
  • Processing equipment options: This industry is notorious for bad leasing contracts, so we looked for processors that allow you to purchase credit card terminals and other processing equipment upfront. Also, whether you need a countertop credit card terminal or a mobile card reader, the processing equipment should allow you to accept chip cards, contactless cards and mobile wallets.
  • Third-party integrations: Because the ability to integrate with POS systems, accounting software and other commonly used business software saves you valuable time, it was one of the features we looked for in a processor.
  • Tap-to-pay capabilities: The pandemic changed the way people pay for things. Cash and credit card transactions are declining in favor of contactless payment methods. With this payment method, customers tap their credit or debit card, wearable device or mobile phone on a contactless payment terminal to complete the transaction. This can speed up the checkout process and keep customers feeling safe. Most newer POS terminals have built-in tap-to-pay capabilities.
  • Funds: We also considered how long it takes the processor to clear the account and deposit the transaction money in your business bank account and whether it offers additional funding options.

Clover POS devices

Many credit card processors resell Clover POS equipment. Source: Clover

What Are Some Credit Card Processor Alternatives?

Helcim

Helcim goes beyond most credit card processors in the tools that it offers to support your business. Its software has advanced capabilities, such as POS services, customer management, inventory management and employee tracking and management ― functions that some other processors only include in their more expensive plans. This versatile platform earns Helcim our pick for the best all-in-one credit card processor.

Sekure

Sekure is a credit card processing broker that gives businesses the options they need when choosing a payment processing provider. With Sekure, you can choose from multiple payment methods and craft a plan that suits your budget and transaction volume. We liked how Sekure can help you navigate the credit card processing space to find a reliable provider that offers the personalized service your business needs.

Chase Payment Solutions

Chase is one of the largest banks in the United States and a major credit card issuer, which gives it unparalleled insight into consumer spending. Businesses that sign up for credit card processing with Chase Payment Solutions can access the bank’s vast trove of data. Leveraging big data effectively allows small businesses to target potential customers. This feature differentiates Chase Payment Solutions from other processors, which is why we chose it as our best pick for data analytics.

Stripe

We think that online business owners will appreciate Stripe for its e-commerce tools! In our testing of the service, we found that setting up online payments is a breeze with their user-friendly platform. Plus, it seamlessly connects with platforms like Shopify and Magento, keeping checkout smooth for customers. But we like that Stripe offers more than just ease of use. You can customize our store exactly how we want, and their robust security features keep transactions safe.

National Processing

We chose National Processing as the best credit card processor for low transaction rates because its interchange-plus rates are low compared to other processors. It also boasts a rate-lock guarantee, which means your rates won’t increase during your contract. National Processing is also willing to match or beat competitors’ rates, which we found to be a unique benefit among the processors that we examined. National Processing will pay you $500 if it can’t beat your current rate.

Flagship Merchant Services

Flagship Merchant Services is a full-service payment processing company that allows merchants to take payments online, in person, by mail and over the phone. While many processors lock merchants into multi year agreements with cancellation fees, Flagship offers merchant account services to all of its customers on a month-to-month basis and doesn’t charge a cancellation fee. That’s why Flagship is our best pick for flexible contracts.

Finix

In our view, Finix is a game-changer for high-growth business. Unlike other processors with one-size-fits-all solutions, Finix lets you customize the entire payment experience.  We like that you can build a system that perfectly fits your unique needs, and it can grow and adapt right alongside your business. Plus, their robust API allows for seamless integrations with existing tools. Whether we’re adding new features or expanding to new markets, we were impressed that Finix is built to handle it all.

Finix API

Finix’s APIs allow users to quickly and easily build custom integrations. Source: Finix

What Are Some Credit Card Processor Alternatives

Helcim

Helcim goes beyond most credit card processors in the tools that it offers to support your business. Its software has advanced capabilities, such as POS services, customer management, inventory management and employee tracking and management ― functions that some other processors only include in their more expensive plans. This versatile platform earns Helcim our pick for the best all-in-one credit card processor.

Sekure

Sekure is a credit card processing broker that gives businesses the options they need when choosing a payment processing provider. With Sekure, you can choose from multiple payment methods and craft a plan that suits your budget and transaction volume. We liked how Sekure can help you navigate the credit card processing space to find a reliable provider that offers the personalized service your business needs.

Chase Payment Solutions

Chase is one of the largest banks in the United States and a major credit card issuer, which gives it unparalleled insight into consumer spending. Businesses that sign up for credit card processing with Chase Payment Solutions can access the bank’s vast trove of data. Leveraging big data effectively allows small businesses to target potential customers. This feature differentiates Chase Payment Solutions from other processors, which is why we chose it as our best pick for data analytics.

Stripe

We think that online business owners will appreciate Stripe for its e-commerce tools! In our testing of the service, we found that setting up online payments is a breeze with their user-friendly platform. Plus, it seamlessly connects with platforms like Shopify and Magento, keeping checkout smooth for customers. But we like that Stripe offers more than just ease of use. You can customize our store exactly how we want, and their robust security features keep transactions safe.

National Processing

We chose National Processing as the best credit card processor for low transaction rates because its interchange-plus rates are low compared to other processors. It also boasts a rate-lock guarantee, which means your rates won’t increase during your contract. National Processing is also willing to match or beat competitors’ rates, which we found to be a unique benefit among the processors that we examined. National Processing will pay you $500 if it can’t beat your current rate.

Flagship Merchant Services

Flagship Merchant Services is a full-service payment processing company that allows merchants to take payments online, in person, by mail and over the phone. While many processors lock merchants into multi year agreements with cancellation fees, Flagship offers merchant account services to all of its customers on a month-to-month basis and doesn’t charge a cancellation fee. That’s why Flagship is our best pick for flexible contracts.

Finix

In our view, Finix is a game-changer for high-growth business. Unlike other processors with one-size-fits-all solutions, Finix lets you customize the entire payment experience.  We like that you can build a system that perfectly fits your unique needs, and it can grow and adapt right alongside your business. Plus, their robust API allows for seamless integrations with existing tools. Whether we’re adding new features or expanding to new markets, we were impressed that Finix is built to handle it all.

Methodology

To choose the best credit card processors on the market, our team of financial analysts and business operations experts evaluated an initial list of 101 contenders. After whittling our list down to 35 contenders, we chose six credit card processors as our top recommendations. Our experts and analysts carefully studied each option and evaluated the processors on 27 factors.

To reach our final conclusion, we considered various factors categorized by importance. These categories reflect what business owners typically prioritize when selecting and purchasing business services.

  • Rates: (30%): Our team crunched the numbers and compared processing rates and fees to bring you the most bang for your buck. We looked carefully at monthly subscription prices, as well as processing rates and fees.
  • Features (25%): We looked for standard credit card processing functions like recurring billing, PCI compliance, reporting and management, and the availability of different payment methods. Our team also factored in additional POS features, mobile apps, and the availability of integrations with third-party business applications.
  • Ease of Use and Acceptance (20%): We leveraged demos and free trials to test the processor’s ease of use and intuitiveness on the user-facing software interface. When applicable, we examined the POS hardware used for credit card acceptance. Our team also looked carefully at user feedback and the acceptance rate for different types of businesses.
  • Customer Service: (15%): To ensure you’re well-supported, we assessed the range of customer service options offered by each processor. This included evaluating phone support availability across different plans and the quality of online resources for self-service.
  • Expert Analysis (10%): Our recommendations are further bolstered by the insights of our in-house business operations experts. Their years of experience and hands-on testing credit card processors and analyzing rates ensure we only recommend the most effective solutions.

By evaluating these factors, we identified not only trustworthy credit card processing options, but also how each platform best fits specific business needs.  We recognized that some processors excel at certain tasks or cater to particular company types.  This analysis led to the “Best For” categories you see on this page, ensuring you can easily find the credit card processor that aligns perfectly with your business goals.

To learn more about our methodology, see our full editorial process.

Frequently Asked Questions About Credit Card Processing

When a customer inserts a credit card into a merchant’s card reader, it initiates a complex series of data transfers that results in money being debited from the cardholder’s account and credited to the merchant’s bank account. The data passes through the terminal via secure connection to the processor, the credit card network, the bank that issued the customer’s credit card and the merchant’s bank.

You should have your credit card processing system ready to go before you start accepting credit card payments. Credit and debit cards are the most popular payment methods for consumers, and they are necessary if you plan to sell your products and services online through a business website.

In some cases, a business may do well by accepting cash only, especially if you maintain a solid base of local customers. Whatever you do, make sure you know your target market and which form of payment they prefer to use.

A credit card processor acts as a bridge between your business and your customers’ banks. They handle the complex process of authorizing, processing, and settling credit card transactions. This includes everything from securely transmitting payment information to ensuring that funds are transferred to your account. Processors also provide essential tools like payment terminals, online payment gateways, and fraud protection services.

Yes. Many credit card processors provide offline payment capabilities, allowing you to store credit card and sales information without an internet connection. As soon as you are back online, the credit card processor will complete the transaction. This ensures that you never miss a sale.

While no credit card processor is truly “free,” some merchants choose to pass on credit card processing costs to customers through surcharging. [Read more about the pros and cons of surcharging.] High volume businesses can try to limit their credit card processing fees by using a processor that offers subscription pricing, such as Merchant One.

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Mike Berner
Written by: Mike Berner, Senior Analyst
Mike Berner brings to business.com over half a decade of experience as a finance expert, having previously served as an economic analyst for the U.S. Army Corps of Engineers. His expertise lies in conducting quantitative analysis and research, providing invaluable guidance for navigating the modern financial landscape. Berner, who has a bachelor's degree in economics and a bachelor of business administration in finance, enjoys simplifying complicated financial concepts for entrepreneurs and business owners. From deciphering the intricacies of business loans and accounting to identifying the best payroll systems and credit card processors, he offers comprehensive insights tailored to meet diverse business needs. At business.com, Berner covers business plans, funding solutions, accounting software, the ins and outs of credit card processing and more. Beyond dedicating himself to exploring and evaluating the latest financial solutions, Berner has also become adept at explaining how businesses can take advantage of artificial intelligence tools. His passion for sharing knowledge extends to various platforms, including Substack, TikTok and YouTube, where he imparts tips and strategies on topics like sales tactics, savvy investing and tax saving.
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