Best Credit Card Processing Services
Low Credit card processing fees, tiered pricing structure, get all equipment from one vendor
Yes
Flat rate monthly subscription
Low flat rate fee, great for high-volume sales
No
Three monthly packages and custom rates for high sales volume
High and fast approval rate, tiered pricing structure, three-year contract
No
Individualized rates
Accepts major mobile wallets, allows global payments
No
Flat rate fees
Monthly subscriptions, free terminal and card reader, cost-effective for big businesses
No
Three subscription packages
Have you found yourself fretting over which credit card processing service to use for your business? With so many available, choosing the right one for your needs can be overwhelming. This guide simplifies the decision-making process and discusses the five best credit card processing services that are not only affordable but also PCI-compliant to protect your customers' sensitive data.
Whether you're a small business owner just starting out or an established company looking to streamline your payment processing, this list will help you find a credit card processing service that fits your budget.
Our Top Picks For Best Credit Card Processing Services
- Clover – Best Tiered Pricing Options
- Payment Depot – Best For Low Transaction Fees
- Merchant One – Best For Small Businesses
- Stripe – Best For E-Commerce Businesses
- Stax – Best For High Sales Volume
Best Credit Card Processing Services Reviews
Why we chose it: Clover has low credit card processing fees. The processing rates range from 2.3 percent to 3.5 percent plus $0.10 per transaction.
Its lowest pricing plan, Register Lite, costs $10 a month and is suitable for businesses whose annual credit card sales are below $50,000. This price is competitive compared with other similar vendors we reviewed. The Register plan — its higher-tier plan — costs $40 a month and is suitable for merchants whose annual credit card sales exceed $50,000.
Instead of paying for credit card processing services and purchasing other software and hardware from different providers, Clover allows you to buy all the processing equipment from a single vendor. This ensures that customer support is harmonized, saving you the hassle of dealing with different service teams.
Clover equipment is used widely in the industry and has a reputation for reliability. Clover also integrates with about 500 third-party apps to help your business operate seamlessly.
Other notable features include the customer and marketing tools. You can utilize the platform to create profiles, ask for feedback and send personalized offers based on their purchasing data. Customers who want to receive their receipts by text are automatically enrolled in an SMS marketing program, which you can use to market your products and enhance relationships.
Why we chose it: Payment Depot is one of the credit card processors with the lowest transaction fees. Unlike other credit card processors that take a percentage of every transaction, Payment Depot charges a small flat rate fee of $0.07 to $0.15 in addition to the interchange rate.
With Payment Depot, merchants pay for a monthly subscription plan between $59 to $99, depending on transaction volumes. This favors high-volume businesses as they don't have to pay excessively high rates for their credit card processing services.
You can reach Payment Depot's customer service any time of the day, and they are upfront with their price options. Since its contracts run on a monthly basis, you can switch to a different credit card processor if you notice that Payment Depot isn't the best fit for your business. Payment Depot does not charge merchants a cancellation fee.
Upon signing up with Payment Depot, you get a merchant account that allows you to accept payments online, in-store and through mobile devices. Typically, payments are deposited into your account within one or two business days. On top of that, Payment Depot provides integrations with Shopify, WooCommerce and QuickBooks.
Why we chose it: Merchant One adjusts its pricing based on various factors such as the merchant's size, industry or credit. This means your business can still process credit cards, even if it has a low credit score.
Merchant One has a 98 percent approval rate with an average approval time of 24 hours, so you don't have to worry about delays associated with new-applicant approvals. As a business owner, you have many things to manage, so it helps to have a vendor that doesn't waste valuable time through lengthy approvals.
When it comes to pricing, Merchant One has the lowest monthly price out of all the vendors we've reviewed so far at $7. Its rates range from 0.29 percent to 1.99 percent for keyed-in transactions and 0.29 percent to 1.55 percent for card-present transactions. Pricing is based on sales volume, business type and equipment needs.
Merchant One offers credit card processing solutions with various processing and PoS (Point of Sale) features that allow you to process both online and in-store payments. It includes many attractive features such as bookkeeping features, dashboard customization for different types of businesses, QR codes for payment and support for gift and loyalty card programs. Additionally, it has a virtual terminal and is compatible with all e-commerce shopping carts, giving users a variety of options.
It offers 24/7 customer support and a dedicated account manager to hold your hand throughout the setup process.
Why we chose it: Stripe is best suited for online businesses with customers worldwide. With Stripe, you can accept payments globally as the processing service supports a wide range of mobile wallets, including AliPay, Google Pay, WeChat Pay and Apple Pay.
Stripe has a flat-rate fee structure and doesn't charge a monthly fee for its services. Here's what you can expect to pay per transaction:
- Online payments: 2.9 percent + $0.30 per transaction
- In-person payments: 2.9 percent + $0.30 per transaction
- Keyed-in payments: 3.4 percent + $0.30 per transaction
An additional 1 percent fee is charged for currency conversion and international transactions. While Stripe's typical payout is two business days, you can quickly get cash in the bank through the Instant Payouts option. This offering allows you to access the funds in as little as 30 minutes. However, note that the Instant Payouts will cost you an additional 1 percent of the payout amount ($0.50 minimum).
Its credit card reader works well with multiple business applications, such as accounting software and e-commerce platforms. Some e-commerce solutions that you can integrate with Stripe include Cratejoy, BigCommerce, Big Cartel, Squarespace, WooCommerce, Shopify and Wix.
In 2022, Stripe launched a marketplace comprising over 50 leading business app developers, including Mailchimp, Dropbox and DocuSign. This marketplace allows merchants to easily share data across apps to streamline their operations. Merchants can also customize Stripe for enhanced functionality in many core areas of business operations, such as cloud-based file sharing, e-signatures and email marketing.
Lastly, Stripe offers 24/7 customer support through email, chat and phone, so you can get help whenever you need it.
Why we chose it: Formerly known as Fattmerchant, Stax is convenient and cost-friendly for big companies with high sales volumes. Its flat rate fees ensure merchants save money no matter the transaction size, unlike some credit card processors whose rates vary depending on the transacted amount.
Stax has excellent customer service and a comprehensive knowledge base that merchants can use for self-service. Once you register as a member, you receive a free terminal and a mobile reader. We love that Stax is upfront with its pricing, and the payment plan is simplified so that you only pay a monthly subscription on top of a small flat transaction fee.
To accommodate different types of businesses, Stax offers three levels of subscription:
- Growth: $99
- Pro: $159
- Ultimate: $199
The higher the subscription fees, the more features you get to enjoy. Stax has a user-friendly e-commerce platform that easily integrates with other business software like QuickBooks, CRM software and e-commerce sites like Shopify and WooCommerce.
Stax offers several features, such as an invoicing feature that allows businesses to create digitized and customizable invoices. These invoices can be sent through mainstream communication channels like emails to remind customers about their payments. The keyed feature is another unique offering that allows merchants to accept payments through mobile devices. In this case, your cell phone becomes the PoS, which makes online payments more accessible.
Another bonus of using Stax is that all processes, including technical support and customer service, are handled in-house. If you have any questions or issues, you can expect them to be handled promptly and efficiently.
Other Credit Card Processing Services We Considered
We evaluated several other credit card processing services based on their customer service, additional charges, reviews and the ability to work with businesses of all types. Even though these companies have great offerings, they did not quite hit the mark due to various limitations.
Helcim
Helcim provides a user-friendly interface; it's easy to set up and allows merchants to cancel contracts anytime without paying cancellation fees. Helcim also offers free web hosting services in addition to credit card processing.
However, online reviews show that Helcim's customer support is unreliable, and the company lacks transparency in its pricing structure.
Square
Square doesn't charge PCI compliance fees and offers a free PoS and mobile card reader. It has a flat-rate pricing structure, and its PoS has excellent features that allow you to manage payments, invoice, and take inventory. However, it only offers 24/7 customer support for those on its paid PoS plan, leaving those on a free plan without reliable support.
Payline Data
Payline Data is one of the market's most affordable credit card processing services, with account managers who orient new members and offer free onboarding sessions. Despite having account managers assigned to every merchant account, however, Payline Data has poor online reviews.
Credit Card Processing Services Guide
Choosing the right credit card processing service for your business is difficult, given the many available offerings. While credit card processing companies offer similar services, they may differ in small ways that could change how effective they are for your business. Because of this, you need to do your homework before choosing a credit card processor.
Different businesses have unique needs depending on their size and operations, so you should keep your business type in mind as you read this guide.
What Is Credit Card Processing?
Credit card processing involves the operations that occur from the moment a customer pays for products online, in person or through their mobile phone using their credit card to when the funds are released to the merchant's account. While the payment process happens quickly, a lot happens in the background for the process to be successful, and it involves several key players.
How Does Credit Card Processing Work?
The main parties involved in a credit card processing transaction include the cardholder, the merchant, the processor, the card network, the issuing bank and the acquiring bank.
Credit card processing begins with the consumer swiping their credit card, in cases of physical purchasing, or entering their credit card details on the merchant's website. After this, the merchant will seek authorization from the issuing bank to confirm if the credit card is valid and that the consumer's account has enough credit for the transaction. Once authorized, the merchant confirms that the consumer is indeed the owner of the authorized card to avoid fraud cases.
After authorization and authentication, the issuing bank pays the acquiring bank for the purchase made by the cardholder. The acquiring and issuing banks are usually registered members with card associations such as Visa, Mastercard and American Express. The credit card processor is an intermediary between the merchant, the acquiring bank and the card networks. The credit card processor also assists the merchant with their customer service needs. The credit card processor intervenes if a hitch delays the funds from reaching the merchant's bank account.
Even though credit card authorization and authentication happen in seconds, the merchant doesn't receive the funds in their bank account immediately. Usually, the merchant has to make a formal payment request to the issuing bank. The merchant may put together all the authorized transactions on a particular day and submit them to the acquiring bank through the processor.
The acquiring bank then sends the transaction details to the card networks, which share the information with the issuing bank. At this point, the issuing bank deducts charges from the credit card holder's account and sends the fund to the card networks before the card networks deposit the money to the acquiring bank.
What To Look For In A Credit Card Processing Company
You'll want to choose a credit card processor that you can work with in the long run that suits your business needs and is flexible enough to accommodate your business as it grows.
Even though the cost of a credit card processor is important, it's best to weigh the pros and cons of each credit card processor against your business needs. Below are a few factors you should consider when looking for a credit card processing company.
Credibility
You can start by looking at credit card processing companies' reviews to understand what they are like to work with and how they operate. While online reviews may not be enough to determine whether a credit card processing company is right for your business, they can provide valuable insight.
Another way to assess a credit card processing company's credibility is by determining if they comply with relevant international standards such as the Payment Card Industry Data Security Standards (PCI DSS). If a company isn't PCI DSS compliant, working with another service provider is the safer option.
Transparent Pricing
The best credit card processing companies are upfront about all the costs incurred at every stage. Before committing to a vendor, ask questions to ensure you understand their terms and conditions clearly. You may also need to talk to other merchants about their credit card processing companies and compare notes. Online reviews are a great resource to utilize before signing a contract with a credit card processor.
Ample Features
Small business credit card processing needs will differ from those of a larger business. Compare what features are most important for your business, and the features various credit card processing companies offer.
Some of the essential features to consider include:
- Invoice generator
- Ability to integrate with CRM and the major business applications
- E-commerce support
- Marketing tools
- Ability to process refunds
Mobile App Availability
Mobile apps make it easy for merchants to receive payments without investing in an expensive PoS system. With these apps, you may also get additional free services such as invoice generation, a virtual terminal and sub-user accounts. This is a crucial feature for businesses conducting in-person sales without a brick-and-mortar location.
Reliable Customer Support
When choosing the best credit card processing services, you'll want to choose one that offers a reliable 24/7 support team because you never know when you will need help. Having extensive self-help guides on their website is also helpful, especially for business owners who excel at troubleshooting issues independently.
Added Security Measures
Security is a significant concern for every merchant, regardless of their size. You want to ensure that your business and customers are secure at every stage of the transaction. Find out if the company uses the latest technology to safeguard its customers. They must also comply with the relevant security regulations like the PCI DSS.
One of the best ways to ensure maximum security is through tokenization. Tokenization technology uses point-to-point encryption to protect sensitive credit card details during online transactions that hackers may otherwise use to defraud your customers.
Credit Card Processing Services FAQ
How We Chose The Best Credit Card Processing Services
Our criteria for choosing the best credit card processing services included evaluating essential features such as:
- Reliable customer support: Having dependable customer support to promptly and efficiently address technical issues, payment disputes or any other issues is critical to minimize potential downtime and losses.
- Ability to integrate with multiple business applications: Integration with multiple business applications enables smoother payment transactions, saves time by automating tasks and provides valuable data insights to optimize business operations.
- Transparency: A transparent credit card processing service helps to build trust, ensures fair pricing and contract terms, and allows businesses to make informed decisions about their payment processing needs.
- Added security features: With additional security features, a credit card processing service can minimize fraud, protect sensitive data and ensure compliance with industry standards and regulations.
- Pricing structures: Understanding pricing structures before choosing a credit card processing service ensures a business can afford the fees and avoid unexpected costs that can impact profitability.
- Ability to accommodate various types of businesses: A credit card processing service that accommodates various types of businesses can cater to different payment processing needs and adapt to changes in business requirements.
Summary Of Digg's Best Credit Card Processing Services
- Clover – Best Tiered Pricing Options
- Payment Depot – Best For Low Transaction Fees
- Merchant One – Best For Small Businesses
- Stripe – Best For E-Commerce Businesses
- Stax – Best For High Sales Volume
