8 Cheapest Credit Card Processing Companies for Small Businesses
Fee structures include interchange-plus pricing and all-in-one monthly subscriptions.
Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
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.
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 | Best for | Payment processing fees | Monthly fee | Learn more |
|---|---|---|---|---|
 Helcim Learn more on Helcim's secure website | Best for Volume discounts | 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 | Best for Mobile payments | 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 | Best for Selection of tools and features | 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 | Best for Membership-style pricing | 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 | Best for High-risk merchants | 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 | Best for Risk-free 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 | Best for Variety of industry-specific plans | 0%- plus interchange; varies by business and transaction type. | $10 and up. | Learn more on National Processing's secure website |
 Dharma Merchant Services | Best for Nonprofits | 0.15% + 8¢ plus interchange in-person; 0.20% + 11¢ plus interchange online. | $25 for most industries; $20 for nonprofits. | Read review |
Our pick for
Volume discounts
on Helcim's secure website
Helcim
Payment processing fees
0.30% + 8¢plus interchange, in-person; 0.50% + 25¢ plus interchange, online.
Monthly fee
$0on Helcim's secure website
Our pick for
Mobile payments
on Square's secure website
Square
Payment processing fees
2.6% + 10¢in-person; 2.9% + 30¢ online.
Monthly fee
$0Starts at $0/month for unlimited devices and locations.
on Square's secure website
Our pick for
Selection of tools and features
on Stripe Payments' secure website
Stripe
Payment processing fees
2.7% + 5¢in-person; 2.9% + 30¢ online.
Monthly fee
$0on Stripe Payments' secure website
Our pick for
Membership-style pricing
on Stax by Fattmerchant's secure website
Stax by Fattmerchant
Payment processing fees
0% + 8¢plus interchange in-person; 0% +15¢ plus interchange keyed.
Monthly fee
$99and up.
on Stax by Fattmerchant's secure website
Our pick for
High-risk merchants
on Payline's secure website
Payline
Payment processing fees
0.4% + 10¢plus interchange in-person; 0.75% + 20¢ plus interchange online.
Monthly fee
$10in person; $20 online.
on Payline's secure website
Our pick for
Risk-free trial
on Payment Depot's secure website
Payment Depot
Payment processing fees
$0plus interchange (no markup).
Monthly fee
$79and up.
on Payment Depot's secure website
Our pick for
Variety of industry-specific plans
on National Processing's secure website
National Processing
Payment processing fees
0%-plus interchange; varies by business and transaction type.
Monthly fee
$10and up.
on National Processing's secure website
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
$25for 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.
» MORE: Best POS systems
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. 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.
To recap our selections...
NerdWallet's Cheapest Credit Card Processing Companies for Small Businesses
- Helcim: Best for Volume discounts
- Square: Best for Mobile payments
- Stripe: Best for Selection of tools and features
- Stax by Fattmerchant: Best for Membership-style pricing
- Payline: Best for High-risk merchants
- Payment Depot: Best for Risk-free trial
- National Processing: Best for Variety of industry-specific plans
- Dharma Merchant Services: Best for Nonprofits
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.
