8 Cheapest Credit Card Processing Companies for Small Businesses

Because credit card processing companies come with various pricing structures, no one provider is the cheapest for all businesses. The least expensive choice depends on your industry, sales volume and typical transaction size.

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Before making a decision, it's important to determine the best credit card processing company for your business. What capabilities and tools do you require? Do you need a dedicated merchant account? Will you be accepting payments in-person, online or both? Narrow down the options based on these requirements, then see which provider will offer the cheapest payment processing for your business.

Here are eight affordable credit card processing companies to consider.

Pricing:

Pros:

• No long-term contracts or cancellation fees.

• No monthly subscription fees.

• No setup fees.

• No PCI compliance fees.

• Processing rates go down after your business processes more than $25,000 in payments per month.

Cons:

• Doesn't work with high-risk merchants, meaning businesses that are more susceptible to fraud and chargebacks.

• No 24/7 support.

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.

Pricing:

Pros:

• No early termination, activation, refund or chargeback fees.

• No PCI compliance fees.

• No monthly subscription fee.

• Free point-of-sale software.

• Free mobile card reader.

Cons:

• May be more expensive than an interchange-plus pricing model for some businesses.

• Doesn't work with high-risk merchants.

• Only paid POS plans include 24/7 live customer service.

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, which lets merchants accept card payments using only a regular iPhone with the Square POS app. API integrations let clients accept credit cards on their website or e-commerce site too.

Pricing:

• Flat monthly subscription: Starts at $99 per month.

• In-person transactions: Interchange fees plus 8 cents.

• Keyed-in transactions: Interchange fees plus 15 cents for businesses processing up to $500,000 per year.

Pros:

• No contracts.

• 24/7 technical support.

• Offers add-ons like custom branding and same-day funding.

Cons:

• Not ideal for low-volume small businesses.

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.

Pricing:

Pros:

• No long-term contract or cancellation fees.

• No PCI compliance fees.

• Offers high-risk merchant accounts.

• First month is free.

Cons:

• No 24/7 phone support.

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. While paying for both plans isn't ideal for businesses that sell products both online and in-store, 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, online gaming, fantasy sports, self-storage and more.

Pricing:

Pros:

• Includes a free virtual terminal for keying in credit card numbers.

• Can reprogram your existing terminal for free.

• All memberships come with a 90-day trial during which your annual membership fee will be refunded if you cancel.

• No cancellation fees.

• Includes PCI compliance.

• 24/7 support available, though it isn’t entirely in-house.

Cons:

• Maximum processing limits apply to all plans except for the most expensive one.

• Doesn't work with high-risk merchants.

Why we like it: Payment Depot is a merchant account provider owned by Stax. It offers a 90-day trial; if you cancel your account before this period ends, it will refund your annual membership fee. Plus, all plans include free programming of any existing equipment you own and a free virtual terminal, which lets stores key in credit card numbers when the card isn't present.

Pricing:

Pros:

• No setup fees.

• No monthly subscription fees.

• 24/7 phone, chat and email support.

• More than 450 platforms and extensions available.

• Accepts payments in more than 135 currencies.

Cons:

• Doesn’t work with high-risk merchants.

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.

Pricing:

• $25 monthly fee.

Pros:

• No long-term contracts or early termination fees.

• Includes access to a free virtual terminal and online reporting.

• No PCI compliance fees (though there is a $39.95 monthly fee for those that become noncompliant)

• 24/7 support.

Cons:

• Monthly fee required.

• Doesn’t work with high-risk merchants.

Why we like it: Dharma Merchant Services offers transparent pricing and fewer "other" fees than many competitors. It also offers reduced rates for small businesses that process over $100,000 per month.

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Pricing:

Pros:

• Works with high-risk merchants.

• Offers several good integrations for accounting, online selling and shopping carts.

• Each plan includes free reprogramming of existing hardware plus a free mobile card reader.

Cons:

• National Processing’s payment processing fees are only guaranteed for merchants that process at least $10,000 in sales a month.

• Monthly fees can add up.

• Requires a long-term contract, and there are early termination fee (with a few exceptions).

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