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.
Our Nerdy picks for
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
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
Helcim offers transparent, competitive pricing and an all-inclusive platform. It's not the most affordable option for businesses with low sales volumes, but it's an excellent choice for most other small-business owners.
Pros
- Pricing is transparent.
- Offers all-inclusive platform.
Cons
- Potentially expensive for low-volume businesses.
Our pick for
Mobile payments
Square
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.
Square's simple, flat-rate pricing structure is clearly displayed on its website, making it easy for business owners to predict costs and compare options.
Pros
- Diverse selection of hardware to flex to your business needs.
- No contract and no additional fees.
Cons
- Limited options for international payments.
- Doesn't run on Windows devices.
Our pick for
Selection of tools and features
Stripe
Learn more
on Stripe Payments' secure website
Payment processing fees
2.7% + 5¢
in-person; 2.9% + 30¢ online.
Monthly fee
$0
With Stripe Terminal, you can integrate in-person payments into your online payment setup. Transparent pricing and customizable features make it a good choice for online-first businesses looking to extend to in-person sales. However, many features — including connecting hardware to software — require coding experience or “no-code” integrations.
Pros
- Highly customizable.
- Competitive pricing.
Cons
- Prioritizes online merchants.
- Requires developer experience.
Our pick for
Membership-style pricing
Stax by Fattmerchant
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.
Stax is known for its pricing. It may be a good fit for businesses processing at least $5,000 in credit card transactions monthly.
Pros
- No markup on interchange rate.
- Unique add-on features.
Cons
- Not a good option for businesses with low sales.
- Pricing isn't as transparent as competitors.
Our pick for
High-risk merchants
Payline
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.
Payline’s affordable and transparent pricing helps business owners accurately calculate their payment processing fees, and its user-friendly interface makes it a good option for small-business owners.
Pros
- Competitive pricing.
- Good customer service offerings.
Cons
- Negative online reviews.
Our pick for
Risk-free trial
Payment Depot
Learn more
on Payment Depot's secure website
Payment processing fees
$0
plus interchange (no markup).
Monthly fee
$79
and up.
Payment Depot is a payment processor owned by Stax. Its features, pricing and 24/7 support make it good for small businesses with high sales volumes.
Pros
- No markup on interchange rate.
- Compatible with several card readers.
- Free virtual terminal.
Cons
- No support library.
Our pick for
Variety of industry-specific plans
National Processing
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.
National Processing offers competitive rates, useful integrations and compatibility with several card readers. It also works with high-risk merchants.
Pros
- Works with high-risk merchants.
- Offers popular integrations.
Cons
- Fees add up.
- Contract required.
Our pick for
Nonprofits
Dharma Merchant Services
Payment processing fees
0.15% + 8¢
plus interchange in-person; 0.20% + 11¢ plus interchange online.
Monthly fee
$25
Dharma Merchant Services prioritizes simplicity and affordability. It integrates with most point-of-sale hardware systems.
Pros
- Competitive transaction pricing.
- Good flexibility.
Cons
- Monthly fees can be barrier to entry.
- Requires separate accounts for online and in-person payments.
Our picks for the cheapest credit card processing companies
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.
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.
» MORE: Best POS systems
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.
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.
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.
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.
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.
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
The short answer is no. 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 enable them to authorize and complete card transactions.
Learn more about credit card processing fees and use NerdWallet’s credit card processing fees calculator to better determine what processing fees could look like for your business.
There is no standard credit card processing fee as fees vary by provider and fee structure. On average, however, credit card processing fees range from 1.5% to 3.5% of the total transaction cost.
The best merchant service provider for your business will ultimately depend on your industry, sales volume and typical transaction size. If you process a low volume of transactions, 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.
Credit card processing fees: These fees fall into one of three pricing structures: tiered, interchange-plus and flat-rate. Generally, interchange-plus is the preferred pricing structure for credit card processing fees because it’s the most cost-effective for businesses with high sales volumes. However, flat-rate pricing can be more predictable and easier to understand.
Hardware or software fees: Chances are you’ll need to buy hardware and subscribe to a software plan to accept payments, such as a POS terminal that doubles as your register or a mobile card reader you plug into a smartphone or tablet. Sometimes, the POS system will include the software.
Other fees: Depending on the processor, you may have to pay a variety of flat fees for their service. The most common is a monthly subscription fee to work with the processor. You might also be subject to flat fees for services like PCI compliance, setup, cancellation, funds withdrawal and more. Merchant account providers are often criticized for their lack of transparency with these types of flat fees, so you’ll want to be sure you’re clear on the terms of your contract.