5 Cheapest Credit Card Processing Companies for Small Businesses
There’s no free way to accept card payments. But these companies keep costs down without sacrificing value. The cheapest option for you will depend on factors like sales volume and how you process payments.
Hillary Crawford writes about small-business software at NerdWallet and is certified in QuickBooks Online and web design. Her previous roles include news writer and associate West Coast editor at Bustle Digital Group, where she helped shape news and tech coverage. She's appeared on Cheddar News and also worked as a policy contributor for GenFKD. Hillary earned a bachelor's degree with high honors in political science from the University of Michigan.
Email: <a href="mailto:hcrawford@nerdwallet.com">hcrawford@nerdwallet.com</a>.
Karrin Sehmbi is an editor and content strategist on the small-business team. She has covered small-business software and lending since 2022 and has more than sixteen years of editorial experience in the fields of educational publishing, content marketing and medical news. She has also held roles as a teacher and a tutor.
Hillary Crawford writes about small-business software at NerdWallet and is certified in QuickBooks Online and web design. Her previous roles include news writer and associate West Coast editor at Bustle Digital Group, where she helped shape news and tech coverage. She's appeared on Cheddar News and also worked as a policy contributor for GenFKD. Hillary earned a bachelor's degree with high honors in political science from the University of Michigan.
Email: <a href="mailto:hcrawford@nerdwallet.com">hcrawford@nerdwallet.com</a>.
Karrin Sehmbi is an editor and content strategist on the small-business team. She has covered small-business software and lending since 2022 and has more than sixteen years of editorial experience in the fields of educational publishing, content marketing and medical news. She has also held roles as a teacher and a tutor.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
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which products we review and write about (and where those products
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Hillary Crawford writes about small-business software at NerdWallet and is certified in QuickBooks Online and web design. Her previous roles include news writer and associate West Coast editor at Bustle Digital Group, where she helped shape news and tech coverage. She's appeared on Cheddar News and also worked as a policy contributor for GenFKD. Hillary earned a bachelor's degree with high honors in political science from the University of Michigan.
Email: <a href="mailto:hcrawford@nerdwallet.com">hcrawford@nerdwallet.com</a>.
Karrin Sehmbi is an editor and content strategist on the small-business team. She has covered small-business software and lending since 2022 and has more than sixteen years of editorial experience in the fields of educational publishing, content marketing and medical news. She has also held roles as a teacher and a tutor.
Hillary Crawford writes about small-business software at NerdWallet and is certified in QuickBooks Online and web design. Her previous roles include news writer and associate West Coast editor at Bustle Digital Group, where she helped shape news and tech coverage. She's appeared on Cheddar News and also worked as a policy contributor for GenFKD. Hillary earned a bachelor's degree with high honors in political science from the University of Michigan.
Email: <a href="mailto:hcrawford@nerdwallet.com">hcrawford@nerdwallet.com</a>.
Karrin Sehmbi is an editor and content strategist on the small-business team. She has covered small-business software and lending since 2022 and has more than sixteen years of editorial experience in the fields of educational publishing, content marketing and medical news. She has also held roles as a teacher and a tutor.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
NerdWallet's content is
fact-checked for accuracy, timeliness, and relevance by humans.
It undergoes a thorough review process involving writers and editors to ensure
the information is as clear and complete as possible. Learn more by checking
our
Editorial Guidelines.
Content was accurate at the time of publication.
Why trust NerdWallet
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
75+ categories of best business software selections.
NerdWallet's small-business software content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business software, including payment processing, accounting and payroll. Their work has appeared in The Associated Press, The Washington Post, Nasdaq, Entrepreneur, ABC News, Yahoo Finance and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
Advertiser disclosure
You’re our first priority.
Every time.
We believe everyone should be able to make financial decisions with
confidence. And while our site doesn’t feature every company or
financial product available on the market, we’re proud that the guidance
we offer, the information we provide and the tools we create are
objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence
which products we review and write about (and where those products
appear on the site), but it in no way affects our recommendations or
advice, which are grounded in thousands of hours of research. Our
partners cannot pay us to guarantee favorable reviews of their products
or services. Here is a list of our partners .
Offers a free mobile card reader and free POS software plan.
Can subscribe to related services, such as payroll, that integrate with its POS system.
No termination fees or long-term contracts.
No chargeback or PCI compliance fees.
Cons
Complex businesses might prefer a processor that integrates with more specialized POS systems.
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. We think the $49-per-month Plus plan offers more value, though. It charges 2.5% plus 15 cents per in-person transaction and 2.9% plus 30 cents per online one.
Offers a free mobile card reader and free POS software plan.
Can subscribe to related services, such as payroll, that integrate with its POS system.
No termination fees or long-term contracts.
No chargeback or PCI compliance fees.
Cons
Complex businesses might prefer a processor that integrates with more specialized POS systems.
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. We think the $49-per-month Plus plan offers more value, though. It charges 2.5% plus 15 cents per in-person transaction and 2.9% plus 30 cents per online one.
Businesses save when customers use cards with low interchange rates.
Offers free POS software.
Offers volume-based discounts automatically.
No termination fees, long-term contracts or PCI compliance fees.
Cons
Deposits are available within two business days; same-day deposit option is not available.
Interchange-plus costs can be difficult to predict.
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.
Businesses save when customers use cards with low interchange rates.
Offers free POS software.
Offers volume-based discounts automatically.
No termination fees, long-term contracts or PCI compliance fees.
Cons
Deposits are available within two business days; same-day deposit option is not available.
Interchange-plus costs can be difficult to predict.
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.
Using your bank as your processor makes deposits convenient.
24/7 phone and online support.
Cons
Some hardware pricing is not readily available.
Chase’s Business Complete checking account comes with a $15 monthly service fee for some merchants.
Sometimes it’s convenient to bundle your banking and payment processing services. And in Chase’s case, it can lead to faster deposit times. Businesses with a Chase business checking account have access to free same-day deposits every day but Saturday.
Using your bank as your processor makes deposits convenient.
24/7 phone and online support.
Cons
Some hardware pricing is not readily available.
Chase’s Business Complete checking account comes with a $15 monthly service fee for some merchants.
Sometimes it’s convenient to bundle your banking and payment processing services. And in Chase’s case, it can lead to faster deposit times. Businesses with a Chase business checking account have access to free same-day deposits every day but Saturday.
Can process transactions in more than 135 currencies.
No PCI compliance fees.
Cons
Doesn’t sell full countertop POS setups; hardware is limited to handheld terminals and card readers.
Deposits can take up to two business days.
No phone or email support.
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.
Can process transactions in more than 135 currencies.
No PCI compliance fees.
Cons
Doesn’t sell full countertop POS setups; hardware is limited to handheld terminals and card readers.
Deposits can take up to two business days.
No phone or email support.
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.
Businesses save when customers use cards with low interchange rates.
No cancellation or PCI compliance fees.
Compatible with several POS hardware providers, including Clover.
24/7 phone support.
Cons
Markups vary by business.
Website doesn’t disclose hardware pricing.
Interchange-plus costs can be difficult to predict.
Payment Depot is a payment processor owned by Stax, a membership-style payment processing platform. But as opposed to offering monthly subscription pricing like Stax, it uses an interchange-plus pricing model and charges no monthly fee. The margin Payment Depot charges on top of interchange varies, so businesses must reach out directly for specifics.
Businesses save when customers use cards with low interchange rates.
No cancellation or PCI compliance fees.
Compatible with several POS hardware providers, including Clover.
24/7 phone support.
Cons
Markups vary by business.
Website doesn’t disclose hardware pricing.
Interchange-plus costs can be difficult to predict.
Payment Depot is a payment processor owned by Stax, a membership-style payment processing platform. But as opposed to offering monthly subscription pricing like Stax, it uses an interchange-plus pricing model and charges no monthly fee. The margin Payment Depot charges on top of interchange varies, so businesses must reach out directly for specifics.
How we choose the cheapest credit card processing companies
Our writers and editors analyze more than 30 data points for each credit card processing company we rate. To find the cheapest options, we focus on all the details that affect how much you pay. These include:
Payment processing fees: We look at both in-person and online credit card processing rates. These must be competitive. For in-person rates, that’s 2.6% plus 15 cents or less. Online rates should be 2.9% plus 30 cents or less.
POS system costs: Processing in-person payments requires POS hardware and software. We only included providers that have a free software plan or integrate with a provider that does.
Additional fees: These include extra charges for PCI compliance, setup and account termination. Our picks minimize such costs.
Pricing transparency: Many companies aren't always upfront about each and every fee they charge. The majority of the ones we highlight are.
Credit card processing companies must earn at least 4 stars to make our list. Cost-related factors account for more than 40% of that score. But they’re not the only thing that matters — even if price is your focus.
We also assess providers’ customer support, features and usability. Our goal is to identify products that are cheap, but still help your business thrive.
⭐ What our star ratings mean
Payment processors with 5 stars are outstanding. They offer competitive in-person and online processing rates, built-in POS system features and free software plans. Plus, they can accommodate a variety of business types.
Payment processors with 4.0 to 4.9 stars are great to excellent. Typically, they have competitive pricing and robust POS features. However, they may have longer-term contracts or fall short when it comes to integrations and/or pricing transparency.
Payment processors with 3.0 to 3.9 stars may be good for specific types of businesses, but typically aren’t a universally great fit. Whereas 4-star processors are lacking in just a few areas, these processors fall short in more categories.
Payment processors with 2.9 stars or fewer don’t offer competitive rates or include the same core POS features that competitors do. We usually don’t recommend these products for small businesses.
What credit card processing companies we consider
NerdWallet’s editorial team has evaluated more than 25 credit card processing companies. Our focus is on big names in various industries, as well as other companies that offer both payment processing services and POS systems.
Ultimately, our writers and editors choose which credit card processing companies to cover. For this list, we prioritized companies with competitive in-person and online processing rates. We also base these decisions on conversations with business owners, online trends and other research.
≡ Full list of credit card processing companies
Our writers and editors have covered or considered these credit card processing companies:
NerdWallet has a full-time team of small-business writers and editors. We review credit card processing companies’ rates and other data points regularly. This involves doing a full audit at least once per year and following the news to catch off-cycle pricing updates. We also reach out to providers as needed.
How to choose the cheapest credit card processing company
To find the cheapest credit card processing company for your business, follow these steps:
Estimate your average transaction amount and sales volume
To predict your monthly processing costs, you need to know your average transaction size and monthly sales volume. The cheapest credit card processing company for one business probably won’t be the same for one with different sales trends.
For example, imagine you run a landscaping company and make $20,000 in monthly revenue. You do around 10 transactions per month ($2,000 each). A flat rate of 2.6% plus 10 cents would cost you $52.10 per transaction. Multiply that by 10, and you can expect to owe $521 in processing fees each month.
Let’s say you own a cafe instead, and you still do $20,000 in sales each month. But your average transaction is $5. That would equal 4,000 transactions. In this case, you can expect to owe $920 in processing fees each month, assuming the same processing rate.
This discrepancy illustrates why it’s so important to predict and compare your processing fees across multiple credit card processing companies before committing. You can use our credit card fees calculator to estimate costs and compare rates.
Confirm that processing rates are competitive
In-person processing rates should be no more than 2.6% plus 15 cents per transaction. Online processing rates, meanwhile, shouldn’t exceed 2.9% plus 30 cents per transaction. It’s also worth asking credit card processing companies if they negotiate rates or reduce them when your sales volume increases. Some providers do this but don’t advertise it.
Additionally, know that processing rates can vary from one POS software plan to the next. For example, Square’s free POS plan for retail businesses charges 3.3% plus 30 cents per online transaction. If you upgrade to its Plus plan, though, that rate drops to 2.9% plus 30 cents. That plan comes with a $49 monthly fee. But a high enough processing volume could more than offset that cost.
For instance, let’s say you process 1,500 transactions each month and they average $20 each. With the free plan, you'd pay $1,440 in processing fees. With the Plus plan, that total falls to $1,320. So even once you add the $49 monthly subscription fee, the Plus plan still saves you $71.
Factor in POS system costs
In addition to payment processing services, most businesses will need some sort of POS software and hardware to accept payments. Some providers, like Helcim, sell card readers but have free software. Others, like Payment Depot, integrate with multiple POS system providers — some of which charge monthly fees. Don’t forget to compare these upfront hardware costs and ongoing monthly subscription fees.
Ideally, your POS software plan is free. If your business’s inventory or reporting needs are more complex, though, expect to pay around $100 per month. This is on top of processing fees.
Look for hidden fees
Some providers charge additional fees for PCI compliance, setup or account termination. This isn’t ideal. If your business is following PCI compliance rules, for example, you shouldn’t need to pay a fee. If your business violates those rules, however, it’s reasonable to expect an additional charge.
If a provider doesn’t list these fees on its website — or clarify that there are no additional fees — reach out directly to a representative.
Treat time as money
Sometimes, the tradeoff between convenience and cost can be worth it. As a business owner, time is money, too.
If you want to start accepting card payments immediately, payment service providers are convenient options. Options, like Stripe, might not offer the absolute lowest rates, but they’re competitively priced and don’t require you to apply for your own merchant account. This can simplify the setup process.
Tips for reducing credit card processing fees
You can't avoid credit card processing fees altogether. But here are several strategies for reducing the burden.
Incentivize customers to pay with cash
Some credit card processing companies offer credit card surcharge programs. These pass some or all processing fees to customers who pay with a card instead of cash. If you go this route, be sure to understand your state’s laws around the program.
Cash discounts are another option. And unlike credit card surcharging programs, they’re legal in all 50 states. These programs extend discounted prices to customers who choose to pay in cash. Customers using a credit card pay the advertised, non-discounted price.
Implement minimum purchase amounts
Paying processing fees on a small transaction amount, like $3, might not be worth it for your business. To avoid this, you may implement a minimum credit card purchase amount. This requires customers to use cash if their receipt total is below the minimum.
Request a volume discount
Some credit card processing companies reduce processing fees as your sales volume grows. Helcim, for example, lowers rates when you clear $50,000 in credit card transactions each month. Other companies might offer a similar discount but not advertise it as openly. It’s worth reaching out to a representative to ask.
Consider interchange-plus over flat-rate pricing
Interchange-plus pricing passes interchange fees, plus a set markup, to the business. This means you pay less when customers use cards with lower interchange fees. This pricing model can be more cost efficient, but less predictable, than flat-rate pricing.
Negotiate markups
If you go with an interchange-plus processor, you might be able to negotiate lower markups. But first, make sure you have the figures to back up your request. These include your monthly processing costs, average transaction amount and how your processor‘s markups compare to competitors.
Make sure your interchange fees align with your industry
This applies to businesses using interchange-plus processors. Once you start accepting card payments, your payment processor will assign you a merchant category code. Usually, it's based on your industry and what you sell. That code determines your interchange rate, among other factors.
Different industries qualify for different interchange rates based on their level of risk. Make sure the payment processor assigns your business the correct code. Otherwise, you might not be getting the best interchange rates for your business type.
Last updated on October 7, 2025
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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