What is Credit Card Processing?
Credit card processing, also known as merchant services, is a service that allows businesses to accept debit or credit cards. This service is typically provided by a company that acts as a merchant processor or credit card processor. The third party acts as a link between the business and the credit card network. Credit card processing allows funds to be transferred from a customer’s credit account to the merchant’s account at any time during a transaction. This can be done in person, on the phone, via mail, or online.
Most affordable companies for small businesses seeking credit card processing services.
1 Helcim
Helcim offers low rates for small business owners and no subscription fees. The interchange-plus-fee structure of Helcim is an affordable option for companies with high sales volume. Its website also makes it easy to access pricing information. The company offers volume discounts automatically applied as you increase your processing amount.
Monthly fee 0 $
Payment processing fees
If you spend less than $50,000 monthly on card transactions, the exchange plus 0.4% will be added to each transaction.
If you have less than $50,000 in monthly card transactions, the exchange rate plus 0.5% is 25 cents.
0.5% plus 25 cents for ACH payments.
Pros
No cancellation or long-term contract fees.
No subscription fee per month
No installation fees
There are no PCI compliance fees.
Processing rates will drop after your business processes $50,000 per month in payments.
Cons
It doesn’t work for high-risk businesses susceptible to fraud or chargebacks.
No 24/7 Support
2 Square
Square offers a flat-rate price, free POS Software, and a mobile card reader.
This solution is highly beneficial for small businesses as well. Payment service providers can be used by businesses to accept different types of payments, including in-person or online. You can use the free POS software with one of Square’s hardware options to process payments in person. To access additional features, businesses can choose Square’s retail and restaurant POS. Square’s Tap to Pay app for iPhone and Android allows merchants to accept credit card payments with just an iPhone or Android smartphone. API integrations allow clients to accept credit card payments directly on their websites or ecommerce sites.
Monthly Fee
POS Restaurant, Retail, and Appointment Plans are free.
Appointments Plus Plan: $29
Restaurant Plus Plan for $60
Appointments Premium Plan – $69
Retail Plus Plan: $89
Retail Premium and Restaurant Premium Plans are available with custom pricing.
Payment processing fees
In-person transactions are subject to a
For regular transactions, there’s a fee of 2.6% plus an additional 10 cents. For online transactions, the fee is 2.9% plus an extra 30 cents. Transactions entered manually incur a fee of 3.5% plus 15 cents Invoices carry a fee of 3.3% plus 30 cents.
best credit card processing for small business
Pros
There are no early cancellation, activation or refund fees.
There are no PCI compliance fees.
There are no subscription fees.
Point-of-sale Software for Free
Mobile card reader free (magstripe only)
Cons
Some businesses may find it more expensive to use the interchange-plus pricing system.
It doesn’t work for high-risk retailers.
Only those plans that are paid for include live customer service 24/7.
3 Stripe
Stripe’s transparent flat-rate pricing and the lack of subscription fees make it one of the most convenient payment processing solutions available to online businesses. You can find an alternative payment provider that charges lower fees. However, the flexibility, including tools and the lack of additional fees in the platform, are hard to beat. Payment service providers offer their features for invoicing, billing, business data, and tax calculations.
Monthly Fee
Stripe Connect standard is $0
Stripe Custom is a white-label solution that allows businesses to customize their checkout process.
Payment processing fees
In-person transactions are subject to a 2.7% fee plus an additional 5 cents.
2.9% plus 30 cents for online transactions.
3.4% plus 30c for transactions manually entered.
International card transactions are subject to a 4.4% fee plus 30 cents.
Pros
No installation fees
No subscription fee per month
Assistance can be accessed through phone, email, and chat.
More than 450 extensions and platforms are available.
Payments can be processed in more than 135 different currencies.
It doesn’t work for high-risk retailers.
4 Stax
Stax charges interchange fees and a fixed fee per transaction, which for in-person transactions is 8 cents. This fee structure can help businesses with high volumes save money.
Monthly Fee
You can save $99 on processing up to $250,000 per annum.
If you process between $250k and $500k annually, $199 is yours.
We can provide a custom quote if you process over $500,000 per annum.
Payment processing fees
For in-person transactions, add 8 cents to the exchange rate.
For transactions manually entered, add 15 cents to the exchange rate.
Pros
No contracts.
Technical support is available 24/7.
Add-ons include custom branding and funding the next day.
It is not ideal for small businesses with low volume.
American Express Business Line Of Credit
5 Payline Data
Payline Data has meagre exchange rates. Two plans are available: one for brick-and-mortar retailers and the other for e-commerce merchants. Paying for both plans might not be the best choice for businesses that sell online and off, but it could be the most cost-effective for those who only need one. Businesses in the cannabis, tobacco and credit repair industries can apply for high-risk accounts.
Monthly Charge
Spend $10 to receive $10 off.
Online sales: $20
Payment processing fees
Add 0.4% plus 10 Cents to the exchange rate for in-person transactions.
Online transactions will be charged an extra 0.75% plus $20.
The card type will affect the price of any transactions entered manually.
Pros
No cancellations or long-term agreements.
PCI Compliance Fees are not charged.
Offers high-risk merchant accounts.
