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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.
By Randa Kriss, Hillary Crawford
Last updated on February 10, 2023
Edited bySally Lauckner

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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

Product
Payment processing fees
Learn more

Helcim

Learn more

on Helcim's secure website

4.5/5

Best for Volume discounts

No long-term contract
No subscription fee
No setup fee
0.30% + 8¢

plus interchange, in-person; 0.50% + 25¢ plus interchange, online.

$0

Learn more

on Helcim's secure website

Square

Learn more

on Square's secure website

5.0/5

Best for Mobile payments

No contract
Free POS software
Free mobile card reader
2.6% + 10¢

in-person; 2.9% + 30¢ online.

$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

24/7 support
No subscription fee
No setup fee
2.7% + 5¢

in-person; 2.9% + 30¢ online.

$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

No contract
24/7 support
0% + 8¢

plus interchange in-person; 0% +15¢ plus interchange keyed.

$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

No long-term contract
First month free
24/7 support
0.4% + 10¢

plus interchange in-person; 0.75% + 20¢ plus interchange online.

$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

Free virtual terminal
No cancellation fee
90-day trial
$0

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

High-risk merchant option
Free mobile card reader
0%-1.5% + 0¢-48¢

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

No long-term contract
Free virtual terminal
24/7 support
0.15% + 8¢

plus interchange in-person; 0.20% + 11¢ plus interchange online.

$25

Our pick for

Volume discounts

Helcim

4.5
NerdWallet rating 
Learn more

on Helcim's secure website

Payment processing fees

0.30% + 8¢

plus interchange, in-person; 0.50% + 25¢ plus interchange, online.

Monthly fee

$0

Our pick for

Mobile payments

Square

5.0
NerdWallet rating 
Learn more

on Square's secure website

Payment processing fees

2.6% + 10¢

in-person; 2.9% + 30¢ online.

Monthly fee

$0

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

Our pick for

Selection of tools and features

Stripe

5.0
NerdWallet rating 
Learn more

on Stripe Payments' secure website

Payment processing fees

2.7% + 5¢

in-person; 2.9% + 30¢ online.

Monthly fee

$0

Our pick for

Membership-style pricing

Stax by Fattmerchant

4.5
NerdWallet rating 
Learn more

on Stax by Fattmerchant's secure website

Payment processing fees

0% + 8¢

plus interchange in-person; 0% +15¢ plus interchange keyed.

Monthly fee

$99

and up.

Our pick for

High-risk merchants

Payline

4.5
NerdWallet rating 
Learn more

on Payline's secure website

Payment processing fees

0.4% + 10¢

plus interchange in-person; 0.75% + 20¢ plus interchange online.

Monthly fee

$10

in person; $20 online.

Our pick for

Risk-free trial

Payment Depot

4.0
NerdWallet rating 
Learn more

on Payment Depot's secure website

Payment processing fees

$0

plus interchange (no markup).

Monthly fee

$79

and up.

Our pick for

Variety of industry-specific plans

National Processing

3.5
NerdWallet rating 
Learn more

on National Processing's secure website

Payment processing fees

0%-1.5% + 0¢-48¢

plus interchange; varies by business and transaction type.

Monthly fee

$10

and up.

Our pick for

Nonprofits

Dharma Merchant Services

4.5
NerdWallet rating 
Payment processing fees

0.15% + 8¢

plus interchange in-person; 0.20% + 11¢ plus interchange online.

Monthly fee

$25

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.

Square: Best for mobile payments

Pricing:
  • 2.6% plus 10 cents for in-person transactions (2.5% plus 10 cents with Retail Plus plan).
  • 2.9% plus 30 cents for online transactions or invoices without a card on file.
  • 3.5% plus 15 cents for manually keyed transactions or card-on-file 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.

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.
  • 3.9% plus 30 cents for international cards or currency conversion.
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.

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.

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.

Payment Depot: Best risk-free trial

Pricing:
  • Interchange + $0 per transaction, plus $59 month for Starter plan.
  • Interchange + $0 per transaction, plus $79 month for Starter Plus plan.
  • Interchange + $0 per transaction, plus $99 month for Growth plan.
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.

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.

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.
Last updated on February 10, 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