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9 Cheapest Credit Card Processing Companies for Small Businesses

Fee structures include interchange-plus, all-in-one monthly subscriptions and flat-rate. While flat-rate pricing is easiest to understand, it isn’t always the most economical.
By Karrin Sehmbi, Hillary Crawford
Last updated on February 1, 2024
Edited byChristine Aebischer
Fact checked and reviewed

⏰ Estimated read time: 11 minutes

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To find the cheapest credit card processing company, you’ll want to consider your business’s industry, sales volume and typical transaction size. Because credit card processing companies often have different pricing structures, no single provider is the cheapest option for all businesses, but these factors can help you estimate and compare fees.
In addition to the processing fees themselves, remember to factor in monthly subscription costs and hardware expenses if you plan on accepting payments in person. To further narrow down options, you can make a list of extra tools and capabilities your business requires.
Here are some of the cheapest credit card processing companies and why they stand out.

Cheapest Credit Card Processing Companies for Small Businesses

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Estimates assume an average interchange fee of 1.81% + $0.10, based on our latest available data. Estimates provided reflect online and in-person transactions, but exclude any keyed transactions. Estimates are based on the lowest monthly plan and processing fees for each provider.

Product
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Payment processing fees
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Helcim

Learn more

on Helcim's secure website

Get an estimated monthly cost for your business.
5.0/5

Best for Volume discounts

In-person: 0.4% + $0.08

Online: 0.5% + $0.25

Plus interchange

$0.00

Get an estimated monthly cost for your business.
Learn more

on Helcim's secure website

Stripe

Learn more

on Stripe Payments' secure website

5.0/5

Best for Online credit card processing

In-person: 2.7% + $0.05

Online: 2.9% + $0.30

$0.00

Learn more

on Stripe Payments' secure website

Square

Learn more

on Square's secure website

5.0/5

Best for Mobile credit card processing

In-person: 2.6% + $0.10

Online: 2.9% + $0.30

$0.00

Starts at $0/month for unlimited devices and locations.

Learn more

on Square's secure website

National Processing

Learn more

on National Processing's secure website

5.0/5

Best for Free terminal

2.5% + $0.10

for Basic In-Person Package.

$9.95

for Basic In-Person Package.

Learn more

on National Processing's secure website

Stax by Fattmerchant

Learn more

on Stax by Fattmerchant's secure website

4.0/5

Best for Membership-style pricing

In-person: 0% + $0.08

Online: 0% + $0.15

Plus interchange

$99.00

and up.

Learn more

on Stax by Fattmerchant's secure website

Payment Depot

Learn more

on Payment Depot's secure website

4.0/5

Best for Risk-free trial

0.2% + $0.00

to 1.95%, plus interchange.

$79.00

and up.

Learn more

on Payment Depot's secure website

U.S. Bank Merchant Services

Learn more

on U.S. Bank Merchant Services' secure website

4.5/5

Best for Fast deposits

In-person: 2.6% + $0.10

Online: 2.9% + $0.30

$0.00

and up.

Learn more

on U.S. Bank Merchant Services' secure website

Payline

4.5/5

Best for High-risk merchants

In-person: 0.4% + $0.10

Online: 0.75% + $0.20

Plus interchange

$10.00

in person; $20 online.

Dharma Merchant Services

4.5/5

Best for Nonprofits

In-person: 0.15% + $0.08

Online: 0.2% + $0.11

Plus interchange

$15.00

for most industries; $12 for nonprofits.

Our pick for

Volume discounts

Learn more

on Helcim's secure website

Monthly fee
$0.00

Our pick for

Online credit card processing

Learn more

on Stripe Payments' secure website

Monthly fee
$0.00

Our pick for

Mobile credit card processing

Learn more

on Square's secure website

Monthly fee
$0.00

Starts at $0/month for unlimited devices and locations.

Our pick for

Free terminal

National Processing

Learn more

on National Processing's secure website

Payment processing fees
2.5% + $0.10

for Basic In-Person Package.

Monthly fee
$9.95

for Basic In-Person Package.

Our pick for

Membership-style pricing

Stax by Fattmerchant

Learn more

on Stax by Fattmerchant's secure website

Monthly fee
$99.00

and up.

Our pick for

Risk-free trial

Payment Depot

Learn more

on Payment Depot's secure website

Payment processing fees
0.2% + $0.00

to 1.95%, plus interchange.

Monthly fee
$79.00

and up.

Our pick for

Fast deposits

U.S. Bank Merchant Services

Learn more

on U.S. Bank Merchant Services' secure website

Monthly fee
$0.00

and up.

Our pick for

High-risk merchants

Payline

Monthly fee
$10.00

in person; $20 online.

Our pick for

Nonprofits

Dharma Merchant Services

Monthly fee
$15.00

for most industries; $12 for nonprofits.

Our picks for cheapest credit card processing companies

Helcim: Best for volume discounts

Why we like it: Helcim is a fantastic choice for small businesses looking for low rates and no monthly subscription fees. Its interchange-plus fee structure is a cost-effective option, especially for businesses with high sales volumes, and its website makes it easy to find pricing information. The company's volume discounts, which are applied automatically as the amount you process increases, are a nice perk to have as your business grows. Read our full Helcim review.

Square: Best for mobile credit card processing

Why we like it: With clear, flat-rate pricing, free POS software and a free mobile card reader, Square is one of the cheapest credit card processing solutions, especially for smaller businesses. Businesses can use the payment service provider to accept a variety of payments, including both in-person and online. To process in-person payments, for example, you can use free POS software alongside one of its hardware options. Businesses can also opt for Square's retail POS or Square's restaurant POS software plans to access more features. Square offers Tap to Pay on iPhone and Android, which lets merchants accept card payments using only an iPhone or Android phone with the Square POS app. API integrations let clients accept credit card payments on their website or e-commerce site too. Read our full Square review.

Stripe: Best for online credit card processing

Why we like it: With transparent, flat-rate pricing and no subscription fees, Stripe is one of the easiest payment processing solutions for online businesses. Although you may find an alternative provider with lower processing fees, it’s difficult to beat the lack of other fees, flexibility and included-payment tools within the company's platform. The payment service provider offers its own invoicing, billing, business data and tax calculation features, too. Read our full Stripe review.

Stax: Best for membership-style pricing

Why we like it: Instead of charging interchange fees plus a percentage markup per transaction like some of its competitors, Stax requires its clients to subscribe to a monthly plan and charges interchange plus a fixed per-transaction fee, which is 8 cents for in-person transactions. This fee structure could help high-volume businesses save money, especially if they’d otherwise pay more than $99 per month in percentage markups and other fees. Read our full Stax review.

Payline Data: Best for high-risk merchants

Why we like it: Payline Data is a merchant account provider that offers interchange-plus pricing at very low rates. It has two plan offerings, one designed for brick-and-mortar retailers and one designed for e-commerce merchants. Although paying for both plans isn't ideal for businesses that sell products both online and in stores, it could be one of the cheapest options for businesses that require only one or the other. It also offers high-risk merchant accounts for businesses involved in industries such as tobacco, cannabis, credit repair and more. Read the full Payline Data review.

Payment Depot: Best risk-free trial

Why we like it: Payment Depot is a merchant account provider owned by Stax. Its subscription-based, interchange-plus pricing model may be best suited to businesses with high sales volume. Read the full Payment Depot review.

National Processing: Best for free terminal

Why we like it: National Processing is a payment processor with competitive rates, useful integrations and compatibility with several card readers. Plus, it works with high-risk merchants. Its long-term contracts are a concern, but every plan includes free reprogramming of existing equipment and some merchants qualify for free hardware. Read our full National Processing review.

Dharma Merchant Services: Best for nonprofits

Why we like it: Dharma Merchant Services charges nonprofits reduced monthly fees and processing rates, making it a top choice for these organizations. It's also a certified B Corp, meaning it's held to higher environmental and social standards. That’s a big plus for small businesses that pride themselves on working with socially responsible companies. The company also offers reduced rates for small businesses that process over $100,000 per month. Read our full Dharma Merchant Services review.

U.S. Bank Merchant Services: Best for fast deposits

Why we like it: U.S. Bank Merchant Services stands out for its Everyday Funding feature that gives U.S. Bank checking account holders access to same-day funding seven days per week. It offers competitive in-person and online processing rates, along with a variety of POS software plans ranging from $0 to $99 per month. If you plan on depositing funds directly to an outside bank account, though, this might not be the best option.
Merchants opening a new Payment Solutions account are eligible to earn back 2.5% on transaction fees each month through 2025. Terms and conditions apply.

How much does credit card processing cost?

There is no standard credit card processing fee. Instead, it varies by provider and which fee structure they use. On average, however, credit card processing fees range from 1.5% to 3.5% of the total transaction cost.
Here are some factors to consider when adding up your business’s total credit card processing costs:

Credit card processing fees

These fees usually fall into interchange-plus or flat-rate pricing structures. Generally, interchange-plus is more transparent and better for high-volume merchants, but flat-rate pricing can be more predictable and easier to understand. Alternatively, some processors may choose to lower their per-transaction fees and charge a monthly fee.

Hardware and software fees

In terms of hardware, chances are you’ll need to buy credit card readers or a more robust point-of-sale (POS) system for accepting in-person payments. Some companies offer free card readers and others range from around $29 to $59. Card readers with receipt printers or a screen usually cost more. You’ll also need some type of POS software or app to use alongside the hardware. Some basic software plans are free, but prices rise as you seek out additional features like inventory tracking, employee management or in-depth reporting.
If you only need to accept a handful of transactions each day, payment apps let you complete contactless transactions using just your smartphone. That way, you can skip the card reader and save on hardware. However, processing rates vary.

Other fees

Look out for flat fees related to services like PCI compliance, setup, cancellation, funds withdrawal and more. Not all processors are transparent about these types of flat fees, so be sure to read the terms of your contract closely and speak to a representative if anything is unclear.

Learn more about credit card processing fees

Explore ways to offset processing fees and use NerdWallet’s calculator to estimate how much your business should expect to owe.

What’s the cheapest way to take card payments?

There’s no free way to accept card payments. If you want to offer your customers the option to pay by card, whether in person or online, you will need to pay fees to credit card companies and financial services providers to authorize and complete card transactions. However, carefully weighing credit card processing companies can guide you toward the most cost-effective option.
The best choice for your business will ultimately depend on your industry, sales volume and typical transaction size. If you process a low volume of transactions, for example, you may find providers such as Square and Stripe are a good fit since they both offer clear, flat-rate pricing and lack some of the fees other providers charge, such as monthly subscription, setup, PCI compliance and early termination fees.
Last updated on February 1, 2024

Methodology

NerdWallet’s ratings of payment processing providers rewards companies whose products and services are priced well and work in a variety of payment scenarios, among other criteria. Ratings are based on weighted averages of scores in several categories, including overall cost, hardware and software options, system capabilities, customer service, contract requirements and integrations. Learn more about how we rate payment processing providers.
These ratings are a guide, but fees, hardware, software and contract requirements can vary widely from business to business and provider to provider. We encourage you to shop around and compare several providers.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
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