Cheapest Credit Card Processors

Customers expect your business to accept debit and credit cards, so you’ll need to partner with a credit card processor. Of course, credit card processing services aren’t free, so you’ll need to account for all those credit card processing fees. While those fees may just be the cost of doing business these days, you can still minimize the expense by choosing one of the most cost-effective credit card processors for your business. These five providers, selected from our list of the best credit card processors, are among the most competitively priced you can find without sacrificing quality service.

Credit card processors enable businesses to accept credit cards — and similar payment mechanisms like debit cards and app-based payments. Credit card processor costs and fees typically include per-transaction charges and, depending on the plan, monthly subscription fees paid to the credit card processing company.

Some credit card processors charge higher monthly fees but lower per-transaction costs, while others charge low or no monthly fees but take a higher percentage of each transaction. Different plans make sense for different businesses, depending on their transaction numbers.

Other costs associated with credit card processing include fees related to the use of point-of-sale (POS) systems, the terminals used to process credit card payments. Some credit card processors include POS systems with their service, some sell POS systems, and some support a variety of third-party POS systems, which have their own hardware and software costs. Different POS systems have different features, so make sure you understand which type of POS system your business will want to use when shopping for a credit card processing system.

Also keep in mind that you may have to pay fees for chargebacks if customers dispute charges made with your business. Some credit card processors refund these fees if you successfully contest the chargeback. Some processors also charge early termination fees if you cancel your account before your contract is up.

While all credit card processors serve the same basic purpose of letting your business accept card payments, different processors include different additional features. Some emphasize integrations with other hardware and software, some focus on the needs of particular types of businesses, some include e-commerce tools, and some pride themselves on excellent customer support. Not all businesses have the same needs, so shop around for a plan with the features you need at the right price.

Hardware and Software Integrations

A useful feature of credit card processors is integration with other hardware and software. This can include point-of-sale (POS) terminals set up to process payments, accounting and analytics software that helps track how your business is doing, and e-commerce software that you can use to do business online. Many also offer mobile apps that let you manage your account and track revenue from your phone, or even use your mobile device as a POS system. Some also offer application programming interfaces (APIs) that let you build custom integrations with other software. Different credit card processors offer different types of integrations at different price points, so try to anticipate your business’s needs as you shop around.

Business-Specific Tools

Some credit card processors offer hardware and software geared toward particular types of businesses. For instance, some include inventory and payroll management tools that are useful for retail stores, and some provide features like check-splitting and table-seating trackers that are especially useful for restaurants. Some also offer mobile and portable checkout terminals that can be useful for mobile businesses. It can be worth checking to see if credit card processors you’re considering offer special tools that are particularly useful in your line of business.

E-Commerce Integrations

Credit card processors often offer special features for e-commerce. Some enable you to use your credit card processing accounts through online stores you build with third-party e-commerce platforms like Shopify. Others give you the ability to build a website and store through their own software. Some even provide support for email marketing, online invoicing, and other features useful for e-commerce businesses.

Customer Support

If your business is reliant on credit card payments, it can be worth thinking about the customer support options available from credit card processors you’re considering. Some provide 24/7 phone or email support, while some only provide support during limited hours. Some providers also offer online discussion forums where you can get guidance from employees and other customers. Consider factors like your familiarity with payment hardware and software, and the hours your business typically operates, when deciding what level of customer service makes sense for you.

1. Research Your Options

Make a list of credit card processing companies you’d consider doing business with and begin visiting their websites to see which features you need. Take a look at their pricing, online reviews, customer support policies and features of their plans. If your business has particular needs, like support for particular software integrations or restaurant-friendly features, that may help narrow down your options.

2. Reach Out to Vendors

Once you’ve narrowed down the list, you can reach out to credit card processors for more information. Think about questions, such as: how long it would take to set up your business; whether you’d be locked into a long-term contract; what pricing plans are available; what hardware you may need to buy; and whether there might be any unexpected fees. Consider asking for a demo of the hardware and software you’d be using.

3. Evaluate the Possibilities

Take a look at what you’ve heard from different vendors and decide which company best suits your needs. Follow up with any questions or special requests you may have, evaluate the costs and features of each option, and then choose the credit card processor that makes the most sense for your business.

4. Implement your Selection

Once you’ve chosen a credit card processor to work with, there will be an implementation period. You will need to connect the processor to your business’s merchant account in order to support credit card transactions. Building this integration may take time, and some credit card processing service providers may even charge an additional fee.

Credit card processors by definition enable your business to take credit card payments. This, in turn, makes your business accessible to more customers, and reduces the need to handle cash, checks, and other forms of payment. Credit card processors can also help you keep track of your sales numbers and move into the world of online sales.

Easy Payments

Not all customers carry cash, and dealing with bills and coins can be a pain for businesses as well. Credit card processors enable anyone to use a credit card, debit card, or often, a mobile payment app to buy from your business. That makes it easy for customers to purchase from you and allows you to process their payments quickly and efficiently.

E-Commerce Possibilities

If you plan on selling goods or services online, you’ll generally need to accept credit cards. Many credit card processors let you use the same system to accept online and offline payments, and many provide tools for building out an online store or e-commerce website if you’re looking to start one.

Simplified Bookkeeping

Credit card processors generally keep a log of each of your transactions and often let you import this directly into your accounting software. Many provide sophisticated software tools that let you track exactly what was sold and when. Plus, many can automatically help manage sales taxes, tips, and other complications, making your bookkeeping operations that much simpler.

Payments on the Go

Credit card processors can make it easy for your business to take payments from anywhere, since many provide portable point-of-sale (POS) systems and mobile apps that can accept cards. This can be especially useful if you operate from multiple sites or need to take payments at customer locations.