Ratings Methodology for Payment Processing Providers
NerdWallet's ratings for payment processing providers consider the following factors:
- Overall cost.
- Hardware and software options.
- System capabilities.
- Pricing transparency.
- Integrations.
- Customer service.
- Contract and trial period.
The best payment processing providers are priced competitively and make it easy for small-business owners to know how much they’ll pay for services. A variety of hardware and software options are available to the small-business owner, with system capabilities that can handle a range of transaction types and allow for the deposit of funds in a timely manner. The best payment processing providers also offer extended customer service hours and a system that integrates with accounting and other software.
Data collection and review process
The reviews team
Rating specifics
- Overall cost (29.5%).
- Hardware and software options (20.5%).
- System capabilities (18%).
- Pricing transparency (11.5%).
- Integrations (9%).
- Customer service (7%).
- Contract and trial period (4.5%).
Overall cost: These ratings consider a provider’s costs in a variety of areas including rates per transaction type, set monthly fees, variable fees and available discounts.
Hardware and software options: These ratings are based on the types of devices offered by the provider, the cost of the devices, and their capabilities in accepting magstripe, chip and contactless payments. Consideration is also given to point-of-sale (POS) features, and software options such as mobile apps and online payment features.
System capabilities: These ratings are based on the range of transaction types the provider’s system can process, including in-person, online, manually-entered, invoiced and mobile. Consideration is given to deposit timing and deposit account options.
Pricing transparency: This takes into account not only published prices and fee schedules but also the degree to which the provider makes the pricing obvious and available to consumers on its website.
Integrations: We rate payment processing providers on whether their systems integrate directly with popular accounting software or offer a data export option as an alternative, and whether they offer other types of software integrations.
Customer service: We rate payment processors according to their customer service availability. Our methodology awards higher scores to providers who offer consumer-friendly features, such as extended hours and weekend support, help libraries or knowledge bases, and free setup help from a human.
Contract and trial period: Ideally, small-business owners should be able to avoid a contract or, at a minimum, be able to get out of their payment processing contract without incurring cancellation or closure fees. A free trial period or the ability to try the service for a minimal cost are also considerations. These ratings measure the availability of those options.
Hardware and software options: These ratings are based on the types of devices offered by the provider, the cost of the devices, and their capabilities in accepting magstripe, chip and contactless payments. Consideration is also given to point-of-sale (POS) features, and software options such as mobile apps and online payment features.
System capabilities: These ratings are based on the range of transaction types the provider’s system can process, including in-person, online, manually-entered, invoiced and mobile. Consideration is given to deposit timing and deposit account options.
Pricing transparency: This takes into account not only published prices and fee schedules but also the degree to which the provider makes the pricing obvious and available to consumers on its website.
Integrations: We rate payment processing providers on whether their systems integrate directly with popular accounting software or offer a data export option as an alternative, and whether they offer other types of software integrations.
Customer service: We rate payment processors according to their customer service availability. Our methodology awards higher scores to providers who offer consumer-friendly features, such as extended hours and weekend support, help libraries or knowledge bases, and free setup help from a human.
Contract and trial period: Ideally, small-business owners should be able to avoid a contract or, at a minimum, be able to get out of their payment processing contract without incurring cancellation or closure fees. A free trial period or the ability to try the service for a minimal cost are also considerations. These ratings measure the availability of those options.
