Cheapest Credit Card Processing for Small Business

There are two main things small businesses look for in processing providers: functionality and savings. We’ll walk you through the top brands to help you find the cheapest credit card processing solution with the functionalities you need to run your business efficiently.

It’s no secret that we love Payment Depot here at Business.org. Its transparent processing fees and intuitive plan structure make it easy for your business to save money. To see how its service works, let’s look at its pricing model in greater detail.

This pricing structure is the secret to how Payment Depot can save you money. Payment Depot’s rates are tied for the lowest of any provider we’ve ever reviewed.

Payment Depot also offers every essential feature we look for in a top-notch processing provider. You can use a full suite of point-of-sale (POS) features with its Clover terminal integration. If you choose the most popular plan or higher, you’ll get a free mobile card reader and a free standard terminal.

Plus, you can take keyed payments and online payments with Payment Depot, making it easy for you to get paid no matter where you sell your products and services.

On top of all that, you can request a free two-month trial to see if Payment Depot works for you. If it doesn't, you can cancel for free and only pay to ship back any free terminals that came with your plan.

Really, it’s a no-brainer to give Payment Depot a try if you have consistent processing needs.

Square is a force to be reckoned with in the small-business processing sphere. It’ll send you a free card reader, help you set up a free account, and give you access to top-quality point-of-sale features without you having to spend a single cent.

This is because Square uses a flat-rate pricing structure for their credit card processing. Their fee is 2.6% + 10¢ per transaction. This is a more expensive fee per swipe than Payment Depot, but that’s because Square bakes all its costs into the credit card processing fee instead of charging a monthly fee.

This is great for businesses with erratic or infrequent processing needs because you never have to pay a monthly fee during the months you don’t make any sales. You only pay when you sell.

But no matter when you make a sale, you’ll have constant access to a suite of solid features:

• Customer relationship management
• Reporting and analytics
• Inventory management
• Hardware for secure payments

You can’t really beat what Square offers you at no up-front cost. That’s why we recommend Square as a starting place. If you’re unsure about whether you’ll be processing at good volume in three months or you just want to try credit card processing in your business for the first time, Square is the place to start.

You can stop using Square’s services at any time without a cancellation fee or any hassle. There are no contracts and no monthly fees, so you have the freedom to switch providers whenever you want.

Stax uses a similar pricing model to Payment Depot. In fact, Stax owns Payment Depot. We love that Stax is transparent, cheap, and only a little more expensive than what Payment Depot offers in terms of monthly fees. But what Payment Depot doesn’t offer that makes Stax so special is an easy POS integration.

Stax integrates with 90% of third-party POS systems, including a number of very popular brands:

• Aloha
• Micros
• Revel
• Vend

If your business is currently using a point-of-sale system and you’re looking for a way to save on processing costs, Stax is a fantastic option.

Additionally, Stax offers a number of tools for web developers to integrate processing features into your website. If you need a custom processing portal on your site, Stax API can help you get there.

So if you need a custom online payment portal or a way to keep your current POS system, Stax will not only make that possible but also save you money in processing costs.

Helcim is designed with customer savings in mind. There’s no monthly fee and the processing rates are relatively low. It’s honestly surprising Helcim is able to make money given its pricing structure.

The question that naturally arises when pricing is so low: What am I sacrificing to pay so little for processing? Not a whole lot.

Helcim has a lot of attractive features for businesses:

• Virtual terminal
• Proprietary hardware
• Invoicing
• Online checkout
• Subscription manager
• Payment pages
• Inventory management tools

These are the kinds of functionalities you expect to see at pricier competitors, but Helcim offers them for almost nothing. Additionally, the Helcim customer reviews across the web are generally positive, often complimenting the excellent customer service.

The biggest downside to Helcim is its unspecialized nature. It isn’t kitted with tools to help you run a full-service restaurant or manage a golf course. But it is an inexpensive processor that will save you a lot of money on transaction costs without sacrificing on user experience or essential functionality.

Stripe is the one recommendation on this list that saves you money in only a very specific processing scenario: processing needs that span the globe. So if you advertise and sell your products online in foreign markets, Stripe’s payment gateway is worth a look.

However, you’ll need access to web development skills or a programmer to make Stripe work for you because it has to be programmed into your website or application. But once you’ve got Stripe programmed into your digital space, you’ll have access to a world-class international network of processing channels that allow you to securely accept payments from anywhere in the world.

Fraud and chargebacks are much more common in foreign countries, so Stripe has built a number of anti-fraud tools into its online API (application programming interface). This is why we recommend processing international online payments using Stripe’s payment gateway: it’ll protect you from fraudulent charges and chargebacks.

Best of all, you can access all of Stripe’s programming tools for free. You could tell your web developer to integrate Stripe into your website today and it wouldn’t cost you a dime. Stripe only charges a flat fee when a transaction occurs.

So yeah, Stripe can save you money after all. It’s bar-none the best for international online sales processing. If that’s what you need, Stripe is the only way to go in our opinion.

The key to saving money on processing is finding a competitively priced service that fits your specific business needs.

For seasonal businesses, the answer is probably Dharma with their seasonal account freezing. For businesses new to processing or who don’t want any up-front costs, the answer is probably Square with their lack of up-front costs and free mobile processor.

Each of our recommended providers offers something unique and useful at a competitive price. Each can potentially save your business money on processing costs. And that’s a crucial consideration in today’s uncertain business climate.

If you want to dive deeper into the point-of-sale features of some of our providers, you should check out our recommendations for the top point-of-sale providers.

Yes. Square’s website URL reads “squareup.com.” This can be confusing for people who are looking for Square and are worried they’re on the wrong website. Don’t worry, if the url says “squareup,” you’re in the right place.

That depends. There’s not a credit card processing solution that is cheapest for every business. Some credit card processing fees get more cost effective with a higher volume. Others are more cost effective at a lower volume.

Also, what do you need from your processing provider? If you need hardware, certain companies offer hardware for less. Processors that make their own hardware — like Square — may offer similar features at a cheaper price than a processor who uses a third-party device.

It depends on what you need. Some processors don’t even require a long-term contract or agreement but they do usually charge more in fees. Square and Stripe don’t have monthly fees but do have a relatively high processing fee, which works better for lower volumes.

Companies with a contractual agreement often have monthly fees but a lower processing fee, like Payment Depot, Stax and Dharma. This model is better for a higher sales volume.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.