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8 Cheapest Credit Card Processing Companies for Small Businesses

Fee structures include interchange-plus pricing and all-in-one monthly subscriptions.
Last updated on April 24, 2023

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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.
Before making a decision, it's important to determine what the best credit card processing company for your business would need. 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.

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
Cost Estimate
Payment processing fees
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Helcim

Learn more

on Helcim's secure website

Get an estimated monthly cost for your business.
4.5/5

Best for Volume discounts

In-person: 0.3% + $0.08

Online: 0.5% + $0.25

Plus interchange

$0

Get an estimated monthly cost for your business.
Learn more

on Helcim's secure website

Square

Learn more

on Square's secure website

5.0/5

Best for Mobile payments

In-person: 2.6% + $0.10

Online: 2.9% + $0.30

$0

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

Learn more

on Square's secure website

Stripe

Learn more

on Stripe Payments' secure website

5.0/5

Best for Selection of tools and features

In-person: 2.7% + $0.05

Online: 2.9% + $0.30

$0

Learn more

on Stripe Payments' secure website

Stax by Fattmerchant

Learn more

on Stax by Fattmerchant's secure website

4.5/5

Best for Membership-style pricing

In-person: 0% + $0.08

Plus interchange

$99

and up.

Learn more

on Stax by Fattmerchant's secure website

Payline

Learn more

on Payline's secure website

4.5/5

Best for High-risk merchants

In-person: 0.4% + $0.10

Online: 0.75% + $0.20

Plus interchange

$10

in person; $20 online.

Learn more

on Payline's secure website

Payment Depot

Learn more

on Payment Depot's secure website

4.0/5

Best for Risk-free trial

N/A

Plus interchange (no markup).

$79

and up.

Learn more

on Payment Depot's secure website

National Processing

Learn more

on National Processing's secure website

3.5/5

Best for Variety of industry-specific plans

0.12% + $0.06

plus interchange; varies by business and transaction type.

$10

and up.

Learn more

on National Processing's secure website

Dharma Merchant Services

4.5/5

Best for Nonprofits

In-person: 0.15% + $0.08

Online: 0.2% + $0.11

Plus interchange

$25

for most industries; $20 for nonprofits.

Our pick for

Volume discounts

Learn more

on Helcim's secure website

Payment processing fees

In-person: 0.3% + $0.08

Online: 0.5% + $0.25

Plus interchange

Monthly fee

$0

Our pick for

Mobile payments

Learn more

on Square's secure website

Payment processing fees

In-person: 2.6% + $0.10

Online: 2.9% + $0.30

Monthly fee

$0

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

Our pick for

Selection of tools and features

Learn more

on Stripe Payments' secure website

Payment processing fees

In-person: 2.7% + $0.05

Online: 2.9% + $0.30

Monthly fee

$0

Our pick for

Membership-style pricing

Stax by Fattmerchant

Learn more

on Stax by Fattmerchant's secure website

Payment processing fees

In-person: 0% + $0.08

Plus interchange

Monthly fee

$99

and up.

Our pick for

High-risk merchants

Payline

Learn more

on Payline's secure website

Payment processing fees

In-person: 0.4% + $0.10

Online: 0.75% + $0.20

Plus interchange

Monthly fee

$10

in person; $20 online.

Our pick for

Risk-free trial

Payment Depot

Learn more

on Payment Depot's secure website

Payment processing fees

N/A

Plus interchange (no markup).

Monthly fee

$79

and up.

Our pick for

Variety of industry-specific plans

National Processing

Learn more

on National Processing's secure website

Payment processing fees

0.12% + $0.06

plus interchange; varies by business and transaction type.

Monthly fee

$10

and up.

Our pick for

Nonprofits

Dharma Merchant Services

Payment processing fees

In-person: 0.15% + $0.08

Online: 0.2% + $0.11

Plus interchange

Monthly fee

$25

for most industries; $20 for nonprofits.

Our picks for the cheapest credit card processing companies

Helcim: Best volume discounts

Pricing:
  • Interchange plus 0.3% and 8 cents per in-person transaction (if less than $25,000 in monthly card transactions).
  • Interchange plus 0.5% and 25 cents per online transaction (if less than $25,000 in monthly card transactions).
  • Interchange plus 0.5% and 25 cents per manually keyed transaction (if less than $25,000 in monthly card transactions).
  • 0.5% plus 25 cents for ACH payments.
Pros:
  • No long-term contracts or cancellation fees.
  • No monthly subscription fees.
  • No setup 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. Read our full Helcim review.

Square: Best for mobile payments

Pricing:
  • 2.6% plus 10 cents for in-person transactions.
  • 2.9% plus 30 cents for online transactions.
  • 3.5% plus 15 cents for manually keyed transactions.
  • 3.3% plus 30 cents for invoices.
Pros:
  • No early termination, activation 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. Read our full Square POS review.

Stripe: Best selection of tools and features

Pricing:
  • 2.9% plus 30 cents for online transactions.
  • 2.7% plus 5 cents for in-person transactions.
  • 3.4% plus 30 cents for manually keyed transactions.
  • 1.5% additional fee for international card transactions.
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. Read our full Stripe review.

Stax (formerly Fattmerchant): Best for membership-style pricing

Pricing:
  • Interchange plus 8 cents for in-person transactions.
  • Interchange plus 15 cents for manually keyed transactions.
  • $99 per month and up for software.
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. The monthly price does increase for businesses that process more than $500,000 annually, but Stax works with those business owners to build custom packages that still result in savings. Read our full Stax review.

Payline Data: Best for high-risk merchants

Pricing:
  • Interchange plus 0.4% and 10 cents for in-person transactions, and $10 per month.
  • Interchange plus 0.75% and 20 cents for online transactions, and $20 per month.
  • Pricing varies by card type for manually keyed transactions.
Pros:
  • No long-term contract or cancellation fees.
  • No PCI compliance fees.
  • Offers high-risk merchant accounts.
  • First month is free.
  • 24/7 phone support.
Cons:
  • Negative user reviews.
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 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, online gaming, fantasy sports, self-storage and more. Read the full Payline Data review.

Payment Depot: Best risk-free trial

Pricing: Interchange plus $0 per transaction. Additionally, there is a monthly membership fee based on your transaction volume:
  • $79 if you process up to $250,000 per year.
  • Custom quote if you process more than $250,000 per year.
Pros:
  • Includes a free virtual terminal for keying in credit card numbers.
  • 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 (although it isn’t entirely in-house).
Cons:
  • Maximum processing limits apply to all plans.
  • 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. Read our full Payment Depot review.

National Processing: Best variety of industry-specific plans

Pricing:
  • Restaurant: interchange plus 0.14% and 7 cents per transaction.
  • Retail: interchange plus 0.18% and 10 cents per transaction.
  • E-commerce: interchange plus 0.29% and 15 cents per transaction.
  • Subscription: interchange plus 9 cents per transaction.
  • Subscription Plus: interchange plus 5 cents per transaction.
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 fees (with a few exceptions).
Why we like it: National Processing is a payment processor that works with high-risk merchants. It also has 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 free hardware. Read our full National Processing review.

Dharma Merchant Services: Best for nonprofits

Pricing:
  • Interchange plus 0.15% + 8 cents for in-person transactions.
  • Interchange plus 0.20% + 11 cents for online transactions.
  • Interchange plus 0.25% + 8 cents for in-person AmEx transactions.
  • Interchange plus; 0.30% + 11 cents for online AmEx transactions.
Pros:
  • No long-term contracts or early termination fees.
  • Includes access to a free virtual terminal and online reporting.
  • No PCI compliance fees (although 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 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.
Last updated on April 24, 2023

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.

Frequently Asked Questions