See Demo
1-800-714-5153

Small Business Credit Card Processing: 2024

A blue POS terminal

Selecting the right credit card processing service is one of the most impactful decisions a small business can make in 2024. As the payment landscape continues to evolve, offering customers flexible payment options has become essential for staying competitive. Whether it’s accepting credit cards, debit cards, or mobile payments, a reliable and efficient credit card processor can streamline operations, boost customer satisfaction, and ultimately contribute to business growth.

An efficient payment processing system does more than simply accept payments—it can transform the way a business operates. Fast, secure transactions reduce wait times and ensure customers have a seamless experience, whether they’re purchasing in-store, online, or through a mobile device. Furthermore, by choosing a system that integrates smoothly with accounting software and inventory management tools, small businesses can significantly reduce administrative burdens, allowing owners and staff to focus on higher-value tasks like customer service and business development. Additionally, processors that offer same-day payouts improve cash flow, enabling small businesses to better manage day-to-day operations and financial planning.

However, for many small businesses, navigating the complexities of credit card processing comes with a set of challenges. Three key pain points frequently arise when choosing the right system:

  1. Fees: Processing fees can quickly add up, cutting into profit margins. Businesses must weigh the benefits of a processor against its costs, taking into account various fees such as transaction charges, service fees, and equipment costs. A solution that seems affordable on the surface may carry hidden fees that significantly increase costs over time.

  2. Ease of Use: Small business owners often juggle multiple roles, from managing operations to handling customer relationships. The last thing they need is a complicated payment system. The ideal credit card processor should be user-friendly, requiring minimal setup and offering ongoing support. Whether you’re a tech-savvy entrepreneur or someone new to digital payments, the system should work for your level of expertise and scale as your business grows.

  3. Scalability: Small businesses are dynamic, and as they grow, their needs change. A credit card processor should offer flexibility, accommodating increased transaction volumes, new payment methods, and expanded integration with other business tools. This is crucial for businesses that plan to expand online sales or open additional locations in the future. A scalable solution saves time and money in the long run, as it prevents the need for switching providers as the business grows.

Transaction Processing Cost Calculator

Company In-Person Rate In-Person Transaction Fee Monthly Fee Online Transaction Rate Online Transaction Fee
Square 2.60% $0.10 2.90% $0.30
Helcim 1.76% $0.08 2.29% $0.25
Stripe 2.90% $0.30 2.90% $0.30
Shopify 2.60% $0.10 $5.00 2.90% $0.30
Payment Depot $0.07 $79.00 $0.07
Clover 2.30% $0.10 $9.95 3.50% $0.10
PayPal 3.49% $0.49 2.90% $0.30
Stax $0.08 $99 $0.15
Payment Cloud 2.40% $0.01 3.50% $0.25
Toast 2.49% $0.15 3.09% $0.15
Merchant One 0.29% $13.95 0.29%

Data retrieved directly from company websites as well as:
https://www.forbes.com/

*Please note that transaction processing companies frequently adjust their pricing and often use tiered or region-specific pricing models. As a result, maintaining an up-to-date calculator is challenging. This tool is based on the standard base rates for each provider, applicable to U.S. transactions only. If you represent one of these companies and would like to update your pricing information, please reach out to us at marketing@timetrex.com

‘Pro-Tip’

Fee Breakdown: Always ask for a full fee breakdown before signing any agreement and read the fine print. Transparency is key to avoiding surprise charges that eat into your profits.

What is Credit Card Processing?

Credit card processing is the system through which businesses accept payments from their customers using credit or debit cards. It involves the transfer of funds from the cardholder’s bank to the merchant’s account, allowing businesses to receive payments in exchange for goods or services. Although the process happens in a matter of seconds, it’s a complex network of transactions involving multiple parties and technologies working together seamlessly.

How Credit Card Transactions Work: From Cardholder to Merchant Bank

At its core, credit card processing ensures that when a customer makes a purchase using their card, the funds are securely transferred from the customer’s account to the merchant’s account. Here’s a step-by-step breakdown of how this transaction unfolds:

  1. Cardholder Initiates Payment
    The customer (or cardholder) provides their credit or debit card information, either by swiping their card in a physical store, manually entering details online, or using mobile payment options like Apple Pay.

  2. Authorization Request Sent
    The card details are transmitted through the merchant’s point-of-sale (POS) system to a payment gateway, which forwards the data to the acquiring bank.

  3. Communication with Issuing Bank
    The acquiring bank sends the transaction request to the cardholder’s issuing bank (the bank that issued the card). The issuing bank checks if the cardholder has sufficient funds or credit to complete the purchase.

  4. Transaction Approval
    If the cardholder has sufficient funds or available credit, the issuing bank authorizes the transaction. The response is sent back through the same channels—first to the acquiring bank, then to the payment gateway, and finally to the merchant’s POS system.

  5. Transfer of Funds
    Once the transaction is authorized, the issuing bank transfers the funds to the acquiring bank, which deposits the money into the merchant’s account after deducting any processing fees.

  6. Completion of Sale
    The merchant receives a confirmation of the successful transaction, and the sale is finalized. Depending on the terms of the processor, the funds may be available to the merchant immediately or within a few business days.

Key Participants in Credit Card Processing

Several key players are involved in making this transaction process work smoothly:

  • Cardholder: The customer who initiates the transaction by using a credit or debit card to make a purchase.
  • Issuing Bank: The financial institution that provides the cardholder with a credit card or debit card. The issuing bank is responsible for approving or declining the transaction based on the customer’s account balance or available credit.
  • Merchant: The business owner who sells goods or services and accepts credit card payments.
  • Acquiring Bank: This is the merchant’s bank, which receives the payment authorization request and processes the transaction on behalf of the business.
  • Merchant Services Provider: A third-party company that manages the credit card processing for the merchant, facilitating communication between the merchant, the acquiring bank, and the issuing bank.
  • Payment Gateway: A technology that securely transmits payment information between the merchant’s POS system and the acquiring bank for online or mobile transactions. It ensures sensitive information like card details is encrypted and securely transferred.

Credit Card Processing for Small Businesses: In-Person, Online, and Mobile Transactions

Small businesses can leverage credit card processors in various ways depending on how they operate:

  • In-Person Transactions
    For brick-and-mortar stores, credit card processing typically involves a point-of-sale (POS) system where customers swipe, dip (EMV chip), or tap (contactless payment) their credit card. The card reader connects to the payment processor, facilitating real-time authorization and payment.

  • Online Transactions
    For businesses selling goods or services online, a payment gateway is essential. It allows customers to input their card details through a secure website or checkout page, transferring data to the processor. E-commerce businesses rely heavily on secure gateways to ensure customer data protection while streamlining the payment process.

  • Mobile Transactions
    For businesses on the go—like market vendors or service providers—mobile credit card processing is a game changer. A mobile card reader connected to a smartphone or tablet allows businesses to accept payments anywhere, using the same secure process as traditional in-person transactions.

‘Pro-Tip’

Accessible Support: Choose a processor with accessible support for installation and onboarding, offering tutorials or live assistance for smoother adoption.

Key Features to Look for in a Small Business Credit Card Processor

Choosing the right credit card processor for your small business requires careful consideration of several important features. Each business has unique needs, and the processor you select should align with your operational goals, budget, and customer payment preferences. Below are the key features you should focus on to ensure smooth, efficient, and cost-effective payment processing.

Processing Fees

Credit card processing fees are a significant factor when selecting a provider, as they can vary depending on the pricing model and the volume of transactions your business processes. Here are the most common pricing structures to consider:

  • Flat-Rate Pricing
    With flat-rate pricing, you pay a consistent percentage for every transaction, regardless of the card type or payment method (in-person, online, etc.). For example, you might pay 2.9% + 30 cents for every online transaction. This model offers predictability and is ideal for small businesses with lower sales volumes (under $5,000 per month) or those that value simplicity over cost savings.
    Best For: Small businesses with lower monthly sales and those needing easy-to-predict costs.

  • Interchange-Plus Pricing
    This model charges a base interchange fee (set by the credit card networks like Visa or MasterCard) plus a fixed markup. The interchange fee varies based on factors like the type of card used (credit vs. debit) and how the transaction was made (in-person vs. online). Interchange-plus pricing is more transparent and cost-effective for businesses with higher sales volumes, as it offers lower overall fees.
    Best For: Businesses processing a high volume of transactions, where saving on individual fees adds up significantly over time.

  • Tiered Pricing
    Tiered pricing groups transactions into different “tiers” (qualified, mid-qualified, and non-qualified), each with its own rate. Qualified transactions (e.g., debit cards swiped in-store) have the lowest rate, while non-qualified transactions (e.g., online credit card payments) have the highest. Tiered pricing lacks transparency because it’s not always clear which transactions fall into each tier.
    Best For: Businesses that want simple pricing but may benefit from lower rates on certain transactions, though it’s less cost-effective overall.

Hidden Fees to Watch For

Beyond the main processing fees, many providers include additional charges that can add up unexpectedly:

  • Transaction Fees: These vary based on the type of card and payment method (e.g., in-person vs. online), typically ranging from 1% to 4% of the transaction amount, plus a fixed fee (e.g., 30 cents).
  • Service Fees: Monthly or annual fees for using the processor’s platform. These can include fees for PCI compliance, maintaining the system, or software access.
  • Setup Fees: Fees charged for initial setup, especially if the processor provides custom hardware or integrations. Be wary of processors that charge high setup fees.
  • Cancellation Fees: Some processors lock you into long-term contracts, charging a penalty for early cancellation. Opt for month-to-month agreements to avoid this.
  • Incidentals: Fees for one-off situations like chargebacks, insufficient funds, or special verification services.

Positive Employer-Employee Relationships

Transparent pricing is crucial for small businesses managing tight margins. Knowing exactly what you’re paying—without hidden fees—can help you better manage costs and avoid overpaying for services. Look for providers that offer detailed, easy-to-understand pricing structures, ideally with no hidden charges. Clear communication around pricing helps you budget more effectively and prevents unpleasant surprises.

Ease of Use and Setup

Small business owners often wear many hats, and managing a complex payment system shouldn’t be one of them. A user-friendly setup is essential, especially for non-tech-savvy individuals. Look for payment processors that offer:

  • Plug-and-Play Options: Systems that require minimal setup are ideal for businesses without dedicated IT resources. This allows you to get up and running quickly without extensive technical knowledge.
  • Intuitive Dashboards: Easy-to-use interfaces that make transaction monitoring, financial reporting, and troubleshooting simple are a must. The ability to track your transactions and fees in real-time without needing special software expertise will save time and reduce frustration.
  • Mobile-Friendly Solutions: Mobile payment systems, especially for businesses on the go, should integrate seamlessly with smartphones and tablets.

Customer Support

Reliable customer support is critical for small businesses that need quick solutions when payment issues arise. Look for providers that offer:

  • 24/7 Availability: Whether your business operates during standard hours or you need after-hours support, 24/7 customer service ensures you can get help when you need it.
  • Multiple Contact Channels: Depending on your preferences, choose a provider that offers multiple ways to reach support: live phone assistance, email, and live chat. Some services even offer support via text or messaging apps, allowing for flexibility in communication.
  • Language Options: If you serve a diverse customer base or operate in a non-English-speaking market, consider whether the provider offers multilingual support.

Integrations with POS and E-commerce Platforms

Integration with existing business tools is essential for streamlining operations and reducing manual work. The ideal credit card processor should integrate easily with:

  • POS Systems: Whether you’re using a dedicated point-of-sale system or a mobile POS, integration should allow for seamless payment processing, inventory management, and sales tracking.
  • E-commerce Platforms: For businesses that sell online, compatibility with popular e-commerce systems (Shopify, WooCommerce, Magento) is essential for ensuring a smooth checkout experience and reducing cart abandonment.
  • Accounting Software: Integration with accounting tools like QuickBooks or Xero can automatically sync transaction data, simplifying bookkeeping and ensuring accurate financial reporting.

Hardware and Virtual Terminals

The hardware you use for processing payments plays a big role in your business operations. Whether you need a simple mobile card reader or a more complex POS system, ensure that the equipment is easy to use and compatible with your needs.

  • Credit Card Readers: Small businesses with physical storefronts typically use card readers or EMV chip readers for in-person payments. Mobile businesses may prefer contactless readers that accept payments via mobile wallets like Apple Pay or Google Pay.
  • Virtual Terminals: For businesses that operate primarily online or process payments over the phone, virtual terminals provide an easy way to manually input credit card information. Ensure that these are secure and compliant with industry standards to protect sensitive payment data.

‘Pro-Tip’

Leverage Flat-Rate Pricing for Simplicity: If your business processes less than $5,000 per month, opt for flat-rate pricing. This gives you predictable fees and simplifies budgeting, making it easier to manage your payment costs.

Square – Best for Mobile Payments

Square is a highly popular choice for small businesses, especially those that rely on mobile payments or operate on the go. Known for its simplicity, transparency, and ease of use, Square offers a powerful yet affordable solution without complicated contracts or monthly fees. Whether you’re a market vendor, pop-up shop, or a small retail business, Square’s mobile-friendly system allows you to accept credit card payments quickly and efficiently, no matter where you are.

Monthly Fee:

$0 – One of Square’s biggest draws is its no-cost entry point. You can start using the platform with zero monthly fees for its basic services, which makes it accessible to businesses of all sizes, particularly small startups or seasonal businesses.

Payment Processing Fees

  • In-person transactions: 2.6% + 10 cents per transaction. This is a flat rate applied to every card swipe, dip (chip card), or tap (contactless payment), providing consistent and predictable costs for brick-and-mortar or mobile businesses.
  • Online transactions: 2.9% + 30 cents per transaction. Whether you’re running an e-commerce store or accepting payments through your website, this is the standard fee structure for online sales.
  • Keyed-in transactions: 3.5% + 15 cents per transaction. For phone orders or when card details are manually entered, Square charges a slightly higher fee due to the increased risk of fraud.

Pros

  • Free card reader: Square provides a free magstripe card reader that connects to your mobile device, allowing you to start accepting payments right away. For businesses that need more advanced options, Square also offers chip readers and contactless payment readers at an additional cost.
  • No monthly fees for basic plans: Unlike many other credit card processors, Square doesn’t charge a monthly fee for its basic plan, making it a budget-friendly option for businesses with low or irregular sales volumes.
  • Integration with popular e-commerce platforms: Square easily integrates with well-known e-commerce platforms like Shopify, WooCommerce, and BigCommerce, enabling businesses to seamlessly accept payments across both physical and online stores. This is a great advantage for businesses that operate in multiple sales channels.

Cons

  • Limited 24/7 customer support: While Square offers customer support, 24/7 service is only available to businesses subscribed to its paid plans. For users of the free plan, customer service is limited to standard business hours, which could be a drawback for businesses that operate outside of typical hours or need immediate assistance.
  • Not ideal for high-volume transactions: Square’s pricing model is not the most cost-effective option for businesses with high-volume transactions. Larger businesses that process significant amounts of credit card sales may find the flat-rate fee structure more expensive compared to alternatives with lower fees tailored to higher sales volumes.

Unique Feature: Instant Access to Funds with a 1.5% Fee

One of Square’s standout features is the ability to access your funds instantly. If you need immediate cash flow, Square allows you to transfer funds to your bank account right after a sale for a 1.5% fee. This feature is particularly valuable for businesses that need quick access to their earnings to cover daily expenses, such as paying suppliers or restocking inventory.

‘Pro-Tip’

Use Contactless Payments to Speed Up Checkout: Offer contactless payment options like Apple Pay or Google Pay. These not only reduce transaction times but also enhance customer satisfaction by providing a fast, hygienic payment experience.

Helcim – Best for High-Volume Sales

Helcim stands out as one of the most transparent and affordable credit card processors for small businesses, particularly those processing a high volume of sales each month. With its flexible pricing model, Helcim rewards businesses that grow, offering lower fees as transaction volume increases. This makes it an ideal choice for businesses looking to scale while minimizing their credit card processing costs.

Monthly Fee:

$0 – Helcim does not charge a monthly fee, which is a significant advantage for businesses that want to avoid subscription costs. You only pay for the transactions you process, making it a cost-effective option, especially for growing businesses.

Payment Processing Fees

  • In-person transactions: 1.76% + 8 cents per transaction. Helcim’s in-person transaction fees are notably lower than many competitors, especially for businesses with high sales volumes. The more you process, the lower your fees become, thanks to Helcim’s sliding scale pricing model.
  • Online and keyed-in transactions: 2.39% + 25 cents per transaction. Helcim’s online transaction fees are competitive, making it an excellent choice for e-commerce businesses that process a significant amount of online payments.


Sliding Scale Model: Helcim’s fees decrease as your monthly sales volume increases, rewarding businesses with higher transaction volumes. This model benefits growing businesses by helping them save on processing fees over time.

Pros

  • Free software for merchants: Helcim provides access to its merchant platform, which includes a range of tools to help you manage payments, track sales, and integrate with other business systems. The software is free with no additional subscription costs, making it a valuable resource for small businesses.
  • No contracts or hidden fees: Helcim is known for its transparency, with no long-term contracts, setup fees, or cancellation fees. This flexibility allows businesses to scale without worrying about being locked into expensive or restrictive agreements.
  • Low interchange fees for each credit card type: Helcim offers one of the most competitive interchange-plus pricing models on the market. The ability to see lower fees for certain card types and transaction methods makes it particularly attractive for businesses processing high-volume credit card payments.
  • Free PCI Compliance: Helcim includes free PCI compliance with its services, helping businesses adhere to industry security standards without additional costs.
  • Integration with accounting software: Helcim seamlessly syncs with popular accounting software like QuickBooks Online and Xero, simplifying financial management by automating transaction recording and reconciliation.

Cons

  • No option for same-day deposit: Helcim does not offer an instant payout feature. Funds are typically available within 1-2 business days, which could be a drawback for businesses that require faster access to their cash flow.
  • Not cost-effective for low-volume transactions: For businesses with smaller transaction volumes, Helcim’s fee structure may not offer as much value compared to flat-rate processors like Square. It’s designed for high-volume sales, so small businesses may not see significant cost savings.

Unique Feature: Sliding Scale Pricing Model

Helcim’s most notable feature is its sliding scale pricing model, which lowers transaction fees as your sales volume increases. This means that the more you process, the less you pay per transaction. It’s a highly competitive and transparent structure that directly rewards businesses for growth, making it an ideal processor for those scaling their operations or handling consistently high sales volumes.

‘Pro-Tip’

Avoid Long-Term Contracts with Payment Processors: Choose a provider with no early termination fees and month-to-month agreements. Flexibility is key to ensuring your payment processor grows with your business without locking you into costly contracts.

Stripe – Best for E-commerce

Stripe is one of the most popular and powerful credit card processing solutions for e-commerce businesses, offering a global payment system that supports over 135 currencies. Its robust suite of developer tools and customizable APIs makes it ideal for businesses of any size looking to accept online payments. Whether you’re running a small online store or a large-scale marketplace, Stripe’s advanced features allow you to manage complex payment workflows with ease.

Monthly Fee:

$0 – Stripe does not charge a monthly fee for its basic payment processing services, making it accessible for businesses of all sizes, from startups to established enterprises.

Payment Processing Fees

  • In-person transactions: 2.7% + 5 cents per transaction. Stripe offers in-person processing with its terminal hardware, but its focus is primarily on online payments. The fees for in-person transactions are competitive but slightly higher than some dedicated in-store processors.
  • Online transactions: 2.9% + 30 cents per transaction. This standard fee applies to most online transactions, including credit cards and digital wallets (Apple Pay, Google Pay). It’s a competitive rate in the e-commerce space, offering transparent and predictable costs.
  • Keyed-in transactions: 3.4% + 30 cents per transaction. For businesses manually entering credit card details (e.g., over the phone), Stripe charges a slightly higher rate to account for the increased risk of fraud.

Pros

  • No monthly or setup fees: Stripe provides a pay-as-you-go model with no monthly fees or setup costs, making it ideal for businesses that prefer flexible pricing without upfront expenses.
  • Instant payout option: Stripe allows businesses to access funds instantly with a 1% fee, which is especially useful for online sellers needing faster access to their earnings.
  • Advanced reporting and fraud protection tools: Stripe offers a robust set of tools, including advanced analytics, reporting, and fraud detection, to help businesses monitor their financials and mitigate risk. Stripe Radar, their AI-driven fraud prevention tool, is particularly useful for online businesses handling large transaction volumes.
  • 24/7 customer support: Stripe provides 24/7 support via phone, chat, and email, ensuring that businesses can resolve issues quickly and efficiently at any time.
  • Seamless integration with popular platforms: Stripe integrates with major e-commerce platforms like Shopify, WooCommerce, Magento, and more. It also works with QuickBooks Online, allowing for seamless accounting and payment management.

Cons

  • Extra cost for hardware and POS software: While Stripe offers in-person payment solutions, they require purchasing additional hardware. Its focus is primarily on online payments, so businesses with significant brick-and-mortar operations might find other processors more suitable.
  • Advanced features require technical knowledge: Stripe’s powerful customization and API tools are a big draw for developers, but they require some technical expertise. Businesses without a development team may need external help to fully leverage Stripe’s capabilities.
  • Not available to all industries: Stripe is not available for certain high-risk industries, such as adult entertainment, gambling, or firearm sales. Businesses in these sectors will need to look for alternative processors.

Unique Feature: Global Payment System Supporting 135+ Currencies

Stripe’s ability to process payments in over 135 currencies makes it a standout option for e-commerce businesses with international customers. This global reach allows businesses to accept payments from anywhere in the world, ensuring a seamless experience for both domestic and international shoppers. Stripe also supports a wide range of local payment methods, making it easier to cater to a diverse customer base.

‘Pro-Tip’

Integrate Your POS with Inventory Management: Save time by integrating your POS system with your inventory management software. Real-time tracking ensures you never run out of stock, helping you avoid lost sales and improve customer satisfaction.

Shopify Payments – Best for Shopify Users

Shopify Payments is the integrated payment processing solution offered by Shopify, designed specifically for businesses using the Shopify platform. By using Shopify Payments, merchants can avoid third-party processors and benefit from lower transaction fees, seamless integration, and a streamlined checkout experience. It’s an ideal option for Shopify store owners who want to keep all aspects of their business, from inventory to payments, within one unified platform.

Monthly Fee:

Starting at $5 for the Starter plan, with higher-tier plans ranging up to $299 per month for the Advanced plan. The monthly fee depends on the Shopify plan chosen, as Shopify Payments is included with all Shopify subscription tiers.

Payment Processing Fees

  • In-person transactions: 2.6% + 10 cents per transaction. This fee applies to in-person payments processed through Shopify’s POS system, which is ideal for merchants operating both online and in physical locations.
  • Online transactions: 2.9% + 30 cents per transaction. Shopify Payments offers competitive rates for online transactions, making it an excellent choice for e-commerce businesses operating primarily through the Shopify platform.
  • Keyed-in transactions: 3.5% + 30 cents per transaction. For manual entry of payment details, such as over-the-phone orders, Shopify charges a slightly higher fee due to the increased fraud risk.

Pros

  • No third-party transaction fees: One of the biggest advantages of Shopify Payments is the elimination of third-party processing fees. If you use another payment processor (like PayPal or Stripe), Shopify charges an additional fee on top of the transaction fees, but with Shopify Payments, this fee is waived. This can lead to significant cost savings for Shopify users.
  • Fully integrated with Shopify platform: Shopify Payments is natively integrated into the Shopify platform, making setup and management incredibly simple. Payments, orders, and customer data are all handled within the same dashboard, streamlining business operations.
  • Supports multiple currencies and payment methods: Shopify Payments allows businesses to accept payments in multiple currencies, providing an optimal experience for international customers. Additionally, it supports various payment methods, including credit cards, debit cards, Apple Pay, Google Pay, and more.
  • Automatic fraud analysis: Shopify Payments includes built-in fraud detection tools that help identify potentially risky transactions. This can help reduce chargebacks and fraud-related losses for e-commerce businesses.
  • Customizable checkout experience: Shopify Payments offers a smooth and customizable checkout process that can be tailored to match your store’s branding, providing a consistent and professional shopping experience for customers.

Cons

  • Requires a Shopify subscription: Shopify Payments is only available to businesses using Shopify’s e-commerce platform, so businesses on other platforms (e.g., WooCommerce, Magento) cannot access this payment solution.
  • Higher-tier plans can be expensive: While Shopify Payments comes with all Shopify plans, the subscription costs for higher-tier plans (such as Advanced Shopify or Shopify Plus) can become costly for small businesses or startups. However, these higher plans do provide additional features and lower transaction fees.
  • Not available in all countries: Shopify Payments is not available in every country, so businesses outside of supported regions will need to rely on third-party processors and pay additional transaction fees.

Unique Feature: No Third-Party Transaction Fees

A key advantage of Shopify Payments is the ability to avoid third-party transaction fees when using other payment gateways. Businesses that process payments through alternative gateways like PayPal or Stripe typically face an additional fee from Shopify (ranging from 0.5% to 2%), but Shopify Payments eliminates these fees entirely. For Shopify users, this can significantly reduce overall processing costs, particularly for higher-volume merchants.

‘Pro-Tip’

Use Payment Analytics to Drive Growth: Analyze your payment data to understand peak sales periods, customer behavior, and product popularity. This insight allows you to make informed decisions about staffing, inventory, and promotions.

Payment Depot – Best for High-Volume Businesses Seeking Low Transaction Costs

Payment Depot is a credit card processor that stands out with its subscription-based pricing model rather than the typical percentage-per-transaction structure. By charging a flat monthly fee along with low per-transaction rates, Payment Depot is ideal for businesses that process a high volume of credit card transactions. This model helps businesses avoid the traditional markup on interchange rates, resulting in significant savings for those with high transaction volumes.

Monthly Fee:

Starting at $79 USD ($106 CAD), Payment Depot’s subscription plans cater to businesses with varying transaction volumes. Plans are tiered based on annual transaction volumes, with higher-volume businesses having the option to negotiate lower monthly fees.

Pricing Structure:

Subscription-based, interchange-plus – Payment Depot charges a flat $0.07 to $0.15 USD ($0.09 to $0.20 CAD) per transaction, plus the standard interchange rate. This pricing structure ensures that businesses only pay a low fee for each transaction, without any percentage-based markups.

Processing Fees:

  • In-person and online transactions: Flat $0.07 to $0.15 USD ($0.09 to $0.20 CAD) per transaction, plus the interchange rate. This pricing remains the same regardless of the transaction type, which is a huge benefit for high-volume businesses.
  • No percentage-based markup: Unlike other processors that take a percentage of each transaction, Payment Depot charges a flat fee, which can lead to significant savings for businesses with high monthly transaction volumes.

Pros

  • Low interchange card processing fees: Payment Depot offers some of the lowest transaction fees in the market, especially for businesses with higher transaction volumes. The flat-rate pricing ensures predictable costs and avoids the common percentage-based fees that can eat into profits.
  • No hidden or cancellation fees: Payment Depot doesn’t charge setup, cancellation, or other hidden fees. Businesses can switch providers or cancel services without worrying about penalties.
  • 24/7 customer support: Payment Depot provides round-the-clock support, ensuring that businesses can get help whenever they need it, regardless of time zones or business hours.
  • Quick access to funds: Businesses receive deposits within 24-48 hours, helping to maintain a healthy cash flow.

Cons

  • Monthly membership fees: While the low transaction fees are a benefit, Payment Depot’s monthly subscription costs (starting at $79 USD) can be pricey for businesses with lower transaction volumes. For small businesses that process fewer transactions, these fees might outweigh the savings on per-transaction costs.
  • Not ideal for low-volume businesses: For businesses processing fewer than $10,000 to $15,000 per month, the monthly fees may not justify the cost savings compared to processors with percentage-based fees.
  • High-risk businesses may be denied: Payment Depot may not approve businesses considered high-risk, such as those in industries with higher fraud or chargeback rates.

Unique Feature: Subscription-Based, Flat-Fee Pricing

Unlike many processors that charge a percentage of each transaction, Payment Depot’s flat-fee pricing model ensures businesses only pay a low, predictable cost per transaction. This model is especially beneficial for companies processing large volumes of credit card payments, as it reduces overall processing costs and provides greater transparency in fee structures.

‘Pro-Tip’

Choose a Processor with Built-In Fraud Protection: Select a payment processor that includes built-in fraud detection tools like Stripe Radar. These tools help you reduce the risk of chargebacks and fraud-related losses.

Clover – Best for International Payments

Clover is a versatile credit card processing solution known for its fully integrated hardware and software, making it an excellent choice for businesses with diverse payment needs. Clover’s flexibility in handling international payments, combined with its robust point-of-sale (POS) systems, makes it ideal for retailers, restaurants, and service-based businesses that operate across borders or accept payments from global customers. Clover provides businesses with multiple ways to process payments, including in-person, online, and mobile transactions, while ensuring a seamless experience for international payments.

Monthly Fee:

Starting at $9.95 per month, with different pricing tiers depending on the features and hardware selected. Clover’s pricing model varies depending on the business needs, ranging from a basic setup for small businesses to more advanced plans for larger operations.

Payment Processing Fees

  • In-person transactions: 2.3% + 10 cents per transaction. This rate applies to card-present transactions using Clover’s POS system or card reader, which is ideal for brick-and-mortar stores or businesses processing payments face-to-face.
  • Online transactions: 3.5% + 10 cents per transaction. Clover’s online payment processing fees are higher, reflecting the increased security risks of card-not-present transactions.
  • International transactions: While Clover charges standard rates for domestic payments, international transactions may come with additional cross-border fees depending on the customer’s location and currency conversion requirements. Businesses accepting international cards should factor this into their pricing strategy.

Pros

  • Integrated POS system: Clover offers a wide range of POS hardware options, including countertop terminals, mobile card readers, and self-service kiosks, making it a flexible solution for businesses of all sizes. Clover’s devices are designed to handle both domestic and international payments with ease.
  • Supports multiple currencies: Clover’s system is designed to accept payments in multiple currencies, which is essential for businesses that serve international customers. This feature makes it easier to handle cross-border transactions and expand into global markets without the need for separate payment solutions.
  • Customizable hardware and software: Clover allows businesses to choose the hardware and software that best fits their needs, from basic card readers to full-service POS systems. It also integrates with various apps that can enhance business operations, such as inventory management, customer loyalty programs, and online ordering.
  • 24/7 customer support: Clover provides round-the-clock customer service, which is crucial for businesses that operate outside of standard hours or need assistance managing international payments.
  • POS and virtual terminal integration: Clover integrates its POS system with a virtual terminal, allowing businesses to process payments even when the card is not physically present, such as over the phone or through online transactions.

Cons

  • Higher online processing fees: While Clover offers competitive in-person processing rates, its online transaction fees are relatively high compared to other providers, which could be a drawback for businesses focused primarily on e-commerce.
  • Additional platform fees: In addition to standard processing fees, Clover may charge platform fees depending on the type of plan chosen. Businesses should carefully assess the total cost of ownership when selecting Clover’s services.
  • Limited availability in some countries: While Clover supports international payments, its availability may be limited in certain regions. Businesses operating in less common markets may need to confirm that Clover’s services are supported in their target countries.

Unique Feature: Versatile Payment Options for International Sales

Clover’s ability to process payments in multiple currencies and handle cross-border transactions makes it particularly attractive for businesses with international customers. Whether you’re accepting payments in-store, online, or through a mobile device, Clover’s system is designed to handle a wide range of payment types and currencies, providing a seamless experience for both domestic and international transactions.

‘Pro-Tip’

Integrate Seamlessly with PayPal’s E-commerce Partners: For online businesses, PayPal integrates smoothly with leading platforms like Shopify, WooCommerce, and BigCommerce. This makes setting up payment systems quick and easy, so you can focus on growth.

PayPal – Best for Low-Volume Businesses and Easy Setup

PayPal has long been a trusted name in online payment processing, offering businesses a simple and flexible solution for accepting payments from customers worldwide. With its flat-rate pricing structure and no monthly fees for basic accounts, PayPal is an accessible option for small businesses and entrepreneurs. Known for its ease of use and fast setup, PayPal allows businesses to begin accepting payments within minutes of creating an account. It supports a wide range of payment options, including PayPal-to-PayPal transfers, credit card payments, and even cryptocurrency transactions, making it a versatile solution for many business models.

Monthly Fee:

$0 – PayPal doesn’t charge a monthly fee for its basic account, making it a great option for businesses with lower sales volumes or those just starting out.

Pricing Structure:

Flat rate – PayPal charges a flat fee per transaction, with rates varying depending on the type of transaction and payment method. This pricing structure is straightforward, making it easy for businesses to predict costs.

Processing Fees:

  • Commercial transactions: 2.90% + fixed fee (typically $0.30 per transaction in USD). This rate applies to most domestic credit card and PayPal transactions.
  • QR code transactions (over $10.01 CAD): 1.90% + fixed fee for in-person QR code payments, which is ideal for small businesses accepting payments via PayPal QR codes.
  • QR code transactions (under $10 CAD): 2.40% + fixed fee for lower-value transactions made via QR code.
  • Fixed fees: Varies by currency (e.g., $0.30 USD or $0.30 CAD per transaction). Fixed fees are added to the percentage-based processing fee.

Pros

  • No contracts or monthly fees: PayPal does not require businesses to sign contracts or pay any monthly fees, making it a flexible and low-cost option for small businesses and startups.
  • Easy setup: Setting up a PayPal merchant account is fast and easy, allowing businesses to start accepting payments almost immediately.
  • Wide range of payment options: In addition to accepting credit card payments, PayPal allows customers to pay with PayPal balances, bank transfers, QR codes, cryptocurrency, and more. This versatility makes it easy for businesses to meet the payment preferences of a wide customer base.
  • Integrations with popular platforms: PayPal integrates seamlessly with major e-commerce, POS, and accounting platforms like Shopify, QuickBooks, BigCommerce, and WooCommerce, simplifying payment processing and accounting tasks.

Cons

  • Higher fees than some competitors: While PayPal offers flat-rate pricing, its fees are higher than those of some other processors, particularly for businesses with higher sales volumes. For businesses processing larger transaction amounts, an interchange-plus pricing model like that of Stax or Helcim may offer lower overall costs.
  • No 24/7 phone support: PayPal provides customer support, but it does not offer 24/7 phone support. This can be a disadvantage for businesses that may need assistance outside of regular business hours.

Unique Feature: Wide Range of Payment Options, Including Cryptocurrency

PayPal allows businesses to accept a wide variety of payment methods, including PayPal account balances, credit cards, bank transfers, QR codes, subscriptions, and even cryptocurrency. This flexibility provides businesses with the ability to cater to different customer preferences and expand their payment acceptance capabilities beyond traditional credit and debit cards.

‘Pro-Tip’

Offer Multiple Payment Options: Increase your sales by offering multiple payment methods, including credit cards, debit cards, and mobile payments. Customers are more likely to make a purchase if they have their preferred payment option.

Stax – Best for Low-Cost Processing

Stax stands out as a highly cost-effective credit card processing solution, particularly for businesses with a higher monthly sales volume. Unlike traditional processors that charge a percentage of each transaction, Stax uses a subscription-based model with flat fees, eliminating percentage-based markups on interchange rates. This structure makes Stax one of the most affordable options for businesses that process over $5,000 per month in sales, as it offers transparent pricing and predictable costs.

Monthly Fee:

Starting at $99 per month, Stax offers multiple subscription tiers that scale with your business needs. The higher the tier, the more advanced features and lower transaction fees you get, making it a flexible choice for businesses of different sizes and sales volumes.

Payment Processing Fees

  • In-person transactions: 0% + 8 cents per transaction. Stax’s in-person transaction fee structure is highly competitive, as there’s no percentage markup on interchange fees. You pay only a flat fee of 8 cents per transaction, making it extremely cost-effective for businesses with a high volume of sales.
  • Online transactions: 0% + 15 cents per transaction. Like in-person transactions, online payments are charged a flat fee with no percentage markup. This transparency benefits e-commerce businesses processing a high number of transactions.
  • Keyed-in transactions: 0% + 15 cents per transaction. For manually entered payments, Stax charges the same flat rate of 15 cents, making it an affordable option for businesses handling phone or mail orders.


Flat-rate Subscription Model: Stax’s subscription-based pricing eliminates the traditional percentage markup on interchange fees, which can be a significant cost-saving feature for businesses with high transaction volumes. This model is designed to provide predictability and transparency, especially for growing businesses.

Pros

  • Transparent pricing with no percentage markup: Stax’s flat-rate model means you pay a consistent fee per transaction without any hidden charges or confusing percentage markups. This transparency makes it easier to calculate costs and forecast expenses, especially for businesses with fluctuating transaction volumes.
  • Same-day payouts available: Stax offers an option for same-day payouts for a 1% fee, allowing businesses to access their funds quickly if needed. This feature is especially useful for businesses with tight cash flow or those that need to replenish inventory on short notice.
  • 24/7 in-house customer support: Stax provides round-the-clock support via phone and email, ensuring that you can get help whenever you need it, regardless of business hours. Their customer support is known for being highly responsive and helpful.
  • Free terminal or mobile reader for lower-tier plans: Even on the lowest subscription tier, Stax offers a free credit card terminal or mobile reader, reducing upfront costs for businesses. This makes it easier for new or smaller businesses to start processing payments without investing in expensive equipment.
  • No long-term contracts or cancellation fees: Stax allows businesses to cancel their subscription at any time without incurring penalties, offering a flexible, no-strings-attached agreement that suits businesses of all sizes.

Cons

  • Not ideal for low-volume transactions: For businesses with low monthly sales (under $5,000), Stax’s monthly subscription fee can outweigh the savings on per-transaction fees. Smaller businesses may find flat-rate processors like Square more cost-effective for their needs.
  • Limited integration options for lower-tier subscriptions: While Stax offers a wide range of integrations, businesses on the lower-tier subscription plans may find limited access to some advanced features and integrations. Higher subscription levels unlock more functionality, but at an additional cost.
  • Minimum 48-hour setup time: Stax can take up to 48 hours to set up, which may be a drawback for businesses looking to get started immediately. However, once set up, the system runs smoothly and efficiently.

Unique Feature: 0% Markup on Interchange Fees

The most unique and attractive feature of Stax is its 0% markup on interchange fees. Unlike most processors that charge a percentage of each transaction, Stax only charges a small, flat fee per transaction. This makes it incredibly affordable for businesses that process a large number of transactions, as the cost doesn’t scale with the size of the transaction. For high-volume businesses, this can lead to significant savings over time.

‘Pro-Tip’

Pass on Processing Fees with Cash Discount Programs: Reduce your credit card processing costs by implementing a cash discount program. This encourages customers to pay with cash, saving you money on processing fees.

PaymentCloud – Best for High-Risk Businesses

PaymentCloud specializes in credit card processing for high-risk businesses that often face challenges when securing traditional payment solutions. Industries such as firearms, adult entertainment, CBD, and debt collection are typically labeled as high-risk due to the higher likelihood of chargebacks, fraud, or regulatory scrutiny. PaymentCloud caters to these businesses by offering tailored processing solutions, high approval rates, and hands-on support to ensure compliance and mitigate risk.

Monthly Fee:

$0 to $50 – PaymentCloud offers customizable pricing depending on the risk level and volume of transactions for each business. High-risk industries may incur slightly higher fees, but there are no set monthly fees for basic accounts.

Payment Processing Fees

  • In-person transactions: From 2.4% + 10 cents per transaction. PaymentCloud offers competitive in-person transaction fees, though rates can vary depending on the risk profile of the business and the volume of transactions.
  • Online and keyed-in transactions: From 3.5% + 25 cents per transaction. Higher-risk businesses, particularly those processing online payments or keyed-in transactions, may see slightly higher fees due to the increased fraud risk associated with these payment methods.
  • Custom Rates for High-Risk Industries: PaymentCloud tailors its rates based on the specific needs of the business and the associated risk level. High-risk industries may receive custom pricing to reflect their unique challenges.

Pros

  • High approval rate for high-risk businesses: PaymentCloud is known for its 98% approval rate for businesses in high-risk industries, which is significantly higher than traditional processors. This is ideal for businesses that have previously struggled to find reliable payment solutions due to their risk classification.
  • Tailored pricing and contracts: Each high-risk business receives a customized pricing plan, ensuring that fees and terms align with the business’s needs. This flexible pricing model can help mitigate the higher costs typically associated with high-risk payment processing.
  • Free PCI compliance assistance: PaymentCloud provides hands-on support to ensure businesses maintain PCI compliance, a crucial requirement for handling sensitive payment data securely. This is especially important for high-risk businesses that are more susceptible to fraud and chargebacks.
  • Free hardware and virtual terminal: PaymentCloud offers free hardware for the duration of the contract, along with a virtual terminal for businesses that need to process online or over-the-phone payments. This flexibility is valuable for high-risk businesses with diverse payment processing needs.
  • Hands-on customer service: PaymentCloud provides dedicated account managers to guide businesses through the setup process and assist with ongoing issues. Their team is known for being highly responsive and knowledgeable, helping businesses navigate complex regulatory environments.

Cons

  • Pricing not available online: PaymentCloud’s tailored pricing model means that businesses must request a custom quote to understand their processing fees. While this allows for flexibility, it also means there is less transparency upfront compared to flat-rate providers.
  • Longer approval times: While PaymentCloud boasts a high approval rate, businesses may experience longer approval times due to the additional risk evaluation required for high-risk industries. This can delay the onboarding process compared to low-risk processors.
  • Early termination fees for long-term contracts: Some businesses may be locked into long-term contracts with early termination fees, particularly for high-risk merchants. It’s important to thoroughly review the terms of the contract to avoid unexpected costs if you decide to switch providers.

Unique Feature: Hands-On Assistance with PCI Compliance and Chargebacks

PaymentCloud goes above and beyond by offering free, hands-on assistance to help high-risk businesses achieve and maintain PCI compliance. This ensures that businesses meet the necessary security standards to protect sensitive payment data. Additionally, PaymentCloud offers dedicated support to manage and resolve chargebacks, a common issue for high-risk industries. Their proactive approach helps businesses reduce the risk of losing revenue due to fraud or disputed transactions.

‘Pro-Tip’

Enable Same-Day Payouts to Improve Cash Flow: Choose a payment processor that offers same-day payouts, like Square or Stax. Quick access to your funds helps you manage cash flow better and meet daily business expenses.

Toast – Best for Restaurants

Toast is a point-of-sale (POS) system designed specifically for the food service industry, making it the top choice for restaurants, cafes, and bars. It offers a wide range of features tailored to meet the unique needs of the restaurant business, including payment processing, tip management, online ordering, and inventory tracking. With its comprehensive suite of tools, Toast helps restaurants streamline operations, enhance customer experiences, and optimize their overall workflow.

Monthly Fee:

Starting at $0 for the Starter Kit – Toast offers a free plan for businesses with basic needs, but more advanced plans with additional features are available, ranging up to $165 per month for more complex restaurant operations.

Payment Processing Fees

  • In-person transactions: 2.49% + 15 cents per transaction (if hardware is purchased upfront). This fee applies to restaurants using Toast’s POS system for in-person payments, including credit card, debit card, and mobile wallet transactions.
  • Online transactions: 3.09% + 15 cents per transaction for restaurants that opt for the pay-as-you-go plan, which includes hardware costs within the payment processing fees. This higher fee applies to online orders placed through Toast’s integrated platform, including takeout, delivery, and pickup.
  • Custom Rates: Toast offers custom rates for larger or high-volume restaurants that process a significant number of transactions, allowing for more competitive pricing as your business grows.

Pros

  • Designed specifically for restaurants: Toast’s platform is built with restaurants in mind, offering features such as table management, menu customization, and online ordering. This specialization makes it far more tailored to the food service industry compared to general POS systems.
  • Tip management automation: Toast automates the collection and distribution of tips, simplifying tip pooling and ensuring accurate payouts to staff. This is especially beneficial for restaurants where tipping is a core part of the compensation structure.
  • Robust online ordering system: Toast includes a fully integrated online ordering platform that allows restaurants to manage delivery, takeout, and curbside pickup orders directly through the POS system. This eliminates the need for third-party apps, reducing fees and allowing for full control over the customer experience.
  • Sturdy, restaurant-friendly hardware: Toast’s hardware is built to withstand the fast-paced and often messy environment of a restaurant. Devices are spill-resistant and designed for durability, ensuring they can handle daily wear and tear.
  • Integration with payroll and team management software: Toast integrates seamlessly with its payroll system, allowing restaurant owners to manage employee schedules, payroll, and team performance directly through the platform.
  • Free plan with essential POS features: For small or new restaurants, Toast offers a free plan that includes up to 2 POS terminals, making it accessible for businesses with limited budgets.

Cons

  • Requires a 2-year contract: Toast requires a minimum 2-year contract for most of its plans, which can be a drawback for businesses seeking flexibility or those that prefer month-to-month agreements. Early termination fees may apply if you cancel before the contract ends.
  • Higher fees for pay-as-you-go plan: Restaurants that choose the pay-as-you-go plan (which includes hardware) will face higher processing fees compared to restaurants that purchase hardware upfront. Over time, these higher fees may add up, making it more expensive for smaller businesses or those with lower transaction volumes.
  • Setup and installation fees: Toast charges for setup and installation, especially for more complex systems with multiple devices or custom configurations. While the setup ensures a smooth launch, the upfront costs can be high for smaller restaurants.

Unique Feature: Integrated Online Ordering and Delivery Management

Toast’s fully integrated online ordering and delivery platform sets it apart from many other POS systems. Restaurants can manage online orders, track delivery and takeout, and offer curbside pickup, all from one system. This eliminates the need for third-party delivery apps, which often charge high fees and limit control over the customer experience. Toast’s solution allows restaurants to maintain ownership of their online sales channels and optimize their delivery operations, increasing profitability and customer satisfaction.

‘Pro-Tip’

Use Automated Tip Distribution for Restaurants: Streamline tip pooling and distribution by choosing a POS system that automates these processes, like Toast. This ensures fair payouts to staff and reduces administrative burden.

Merchant One – Best for Low Monthly Fees and Dedicated Account Support

Merchant One has been providing credit card processing services since 2001, offering a traditional tiered pricing structure with some of the lowest monthly fees on the market. Merchant One is known for its highly competitive rates, especially for businesses with in-person transactions, and offers a wide variety of payment hardware options, including Clover mobile card readers and POS systems. With its low monthly fee and dedicated account support, Merchant One is an excellent choice for businesses seeking a cost-effective and personalized payment processing solution.

Monthly Fee:

$13.95 USD ($18.78 CAD) – Merchant One offers a very low monthly fee, making it one of the most affordable options for businesses that want a budget-friendly payment processor.

Pricing Structure:

Traditional tiered pricing – Merchant One uses a tiered pricing model, meaning businesses are charged different rates depending on the type of transaction (e.g., swiped vs. keyed-in) and the card type. Tiered pricing offers predictability, but may result in higher fees for certain transaction types compared to interchange-plus models.

Processing Fees:

  • Swiped transactions: 0.29% to 1.55% – Swiped, dipped (chip), or tapped transactions benefit from lower rates in Merchant One’s tiered structure.
  • Keyed-in transactions: 0.29% to 1.99% – Keyed-in transactions (e.g., phone or online orders) typically incur higher fees, reflecting the increased risk of fraud.
  • Custom pricing available: Merchant One offers interchange-plus pricing upon request, which may provide more transparency and cost savings for businesses processing higher volumes of transactions.

Pros

  • Low monthly fee: Merchant One offers one of the lowest monthly fees available, making it a great option for small businesses looking to keep their operating costs low.
  • Lots of hardware options: Merchant One provides a wide range of payment hardware, including Clover mobile readers, terminals, and full POS systems. This allows businesses to find the right solution for their payment processing needs.
  • Dedicated account manager: Every business gets a dedicated account manager, providing personalized support through the setup process and ongoing account management. This level of service is particularly valuable for businesses new to credit card processing or those looking for hands-on guidance.
  • 24/7 customer support: Merchant One offers round-the-clock customer service, ensuring businesses can get help whenever they need it, which is essential for those with nonstandard business hours.

Cons

  • Not all fees disclosed online: While Merchant One’s monthly fee and basic transaction rates are transparent, many fees (e.g., setup, equipment, or termination fees) are not disclosed on their website. Businesses need to contact Merchant One directly for a full quote.
  • Must call for a quote: Merchant One requires businesses to speak to a representative to get specific pricing details, which can be time-consuming for businesses wanting to compare rates quickly.
  • Long-term contracts with termination fees: Merchant One’s services are typically offered with long-term contracts that may include early termination fees. Businesses should carefully review contract terms before signing to avoid unexpected penalties.

Unique Feature: Low Monthly Fees with Personalized Support

Merchant One’s standout feature is its low monthly fee of $13.95 USD paired with dedicated account management. This combination makes it ideal for small businesses that want cost-effective credit card processing without sacrificing personalized support. Having a dedicated account manager helps businesses navigate the often-complex world of payment processing, ensuring they get the right solutions for their specific needs.

‘Pro-Tip’

Maximize Long-Term Value with Merchant One’s Contracts: If you’re looking for a long-term payment solution, Merchant One’s contracts offer stability and low pricing. Be sure to review the terms to ensure you’re getting the best value for your business.

Gravity Payments – Best for Superior Customer Service

Gravity Payments is known for its commitment to providing transparent, personalized, and exceptional customer service. Focused on small businesses, Gravity Payments offers tailored pricing plans to meet the unique needs of each merchant. Their dedication to customer support sets them apart from other credit card processors, offering 24/7 assistance through a variety of channels. For businesses that value high-touch support and clear communication, Gravity Payments is an ideal choice, especially for those needing extra assistance in navigating payment processing.

Monthly Fee:

Custom quotes only – Gravity Payments does not list fixed monthly fees online. Instead, businesses receive personalized pricing plans based on their processing volume, industry, and specific needs. This ensures that merchants only pay for the services they actually use.

Payment Processing Fees

  • In-person transactions: Starting at 2.5% + 10 cents per transaction. Gravity Payments offers competitive rates for in-person transactions, although exact fees depend on the business’s sales volume and custom agreement.
  • Online transactions: Rates vary based on business type and processing needs. For businesses with a significant online presence, Gravity Payments provides custom quotes to ensure competitive pricing tailored to their operations.
  • Custom Pricing: Gravity Payments specializes in working with businesses to create personalized pricing plans, allowing them to negotiate the best possible rates based on transaction volume, industry, and risk level.

Pros

  • Superior customer service: Gravity Payments is highly regarded for its exceptional customer support. They offer 24/7 assistance via phone, email, and contact forms, ensuring businesses can get help when needed. Their customer service team is known for being responsive, friendly, and knowledgeable.
  • Tailored pricing plans: Unlike many processors that offer one-size-fits-all pricing, Gravity Payments takes the time to understand each business’s needs and provides custom pricing plans. This level of personalization helps businesses avoid unnecessary fees and ensures that they’re paying a fair price for the services they need.
  • Fast onboarding process: Gravity Payments prides itself on a quick and easy onboarding process. Whether you’re switching from another provider or setting up for the first time, their team provides hands-on guidance to get your payment processing up and running efficiently.
  • Multilingual support: Gravity Payments offers support in multiple languages, which can be a significant advantage for businesses that operate in diverse markets or serve non-English-speaking customers.
  • Flexible in-person, online, and mobile solutions: Gravity Payments provides a range of payment solutions for in-person, online, and mobile transactions, allowing businesses to accept payments across multiple channels. This flexibility ensures that businesses can meet customers where they are, whether in-store or online.

Cons

  • Pricing not available online: While Gravity Payments offers personalized pricing, the lack of transparency in online pricing means that businesses must go through a consultation process to receive a quote. This can be time-consuming for businesses looking for quick comparisons between providers.
  • Binding 3-year contracts: Some businesses may be locked into a 3-year contract, which could be restrictive for those seeking more flexibility. It’s important to carefully review contract terms and negotiate to avoid potential early termination fees.
  • Added cost for hardware: Gravity Payments does not include free hardware with its services. Businesses that need POS terminals or card readers will need to pay for the necessary equipment, which could be an additional upfront cost for new or growing businesses.

Unique Feature: 24/7 Personalized Customer Support with Custom Pricing

Gravity Payments is best known for its unparalleled customer service, which provides 24/7 support through multiple channels. Whether you prefer phone support, email, or web-based assistance, Gravity Payments is committed to resolving issues quickly and efficiently. The company’s philosophy is centered around treating each business as a unique entity, which is reflected in its custom pricing plans. This level of care and attention to individual business needs ensures that Gravity Payments customers feel valued and supported.

‘Pro-Tip’

Implement a Loyalty Program Through Your POS: Encourage repeat business by using your POS system’s loyalty program feature. Reward customers for frequent purchases, increasing retention and overall sales.

eHopper – Best for Micro Businesses

eHopper is a versatile point-of-sale (POS) and payment processing solution specifically designed for small and micro businesses, such as cafes, retail shops, and service providers. Known for its affordability and user-friendly interface, eHopper offers a comprehensive all-in-one solution that covers in-person and online payments, inventory management, and customer relationship management. With a free plan available for businesses processing fewer than 300 transactions per month, eHopper is an ideal choice for startups or small businesses looking to keep costs low while maintaining professional operations.

Monthly Fee:

Starting at $0 for the free plan, with options to upgrade to $35.99 per month for businesses requiring additional features like advanced reporting, integrated e-commerce, and customer loyalty programs.

Payment Processing Fees

  • In-person transactions: None, with the free plan. eHopper offers a cash discount or credit card surcharge model, meaning businesses can pass processing fees onto customers. This allows micro businesses to effectively process transactions without incurring costs on their end.
  • Online and keyed-in transactions: Payment processing fees are passed directly to the customer using the surcharge model. For online or keyed-in transactions, businesses still avoid paying processing fees themselves, although there is an additional convenience fee for customers.
  • Processing Fee Model: With the cash discount or surcharge model, businesses don’t absorb the cost of processing fees, making eHopper highly cost-effective for small businesses looking to minimize overhead.

Pros

  • Free plan with no processing fees: eHopper’s free plan is perfect for micro businesses processing fewer than 300 transactions per month. The ability to pass processing fees onto customers means businesses can avoid paying transaction fees entirely, which is ideal for keeping costs down.
  • User-friendly interface: eHopper’s intuitive and easy-to-navigate POS system makes it accessible for business owners with minimal technical experience. Setup is quick, and the platform offers essential tools like inventory management, order tracking, and sales reporting in a simple interface.
  • Supports multiple platforms: eHopper is compatible with various platforms, including iOS, Android, Windows, and Poynt, making it a versatile option for businesses that use different types of hardware.
  • Free POS hardware option: eHopper provides a free credit card terminal or mobile POS device as part of its service, allowing businesses to start processing payments immediately without investing in expensive hardware upfront.
  • Month-to-month plans: eHopper offers flexible month-to-month plans, meaning businesses can upgrade, downgrade, or cancel at any time without being locked into long-term contracts. This flexibility is particularly beneficial for micro businesses that may experience fluctuating sales volumes or seasonal operations.

Cons

  • Limited features in the free plan: While eHopper’s free plan is great for businesses just starting out, it lacks advanced features such as loyalty programs, detailed reporting, and integrations with third-party e-commerce platforms. Businesses with more complex needs may need to upgrade to the paid plan to access these features.
  • No customer support with the free plan: Businesses on the free plan do not receive live customer support, which can be a disadvantage if issues arise. Paid plans offer more extensive support options, including live chat and phone support.
  • Processing fees passed to customers: While the cash discount and surcharge models save businesses money, passing fees onto customers may deter some buyers, especially if they’re sensitive to additional charges at checkout.

Unique Feature: Free Processing for U.S.-Based Customers

eHopper’s cash discount and credit card surcharge models allow micro businesses to avoid paying transaction fees by passing the cost directly to the customer. This unique approach is especially beneficial for small businesses with tight margins, as it enables them to process payments without incurring the typical 2-3% transaction fees. This makes eHopper an attractive option for businesses that prioritize cost savings and simplicity.

‘Pro-Tip’

Negotiate Processing Fees with Volume-Based Pricing: If your business processes high volumes of transactions, ask for custom or volume-based pricing. Processors like Helcim offer lower rates as your transaction volume increases.

Credit Card Processing for Small Businesses FAQs

1. How much do credit card processing fees typically cost?

Credit card processing fees vary depending on the provider and the type of transaction (in-person, online, or keyed-in). Most providers charge between 1.5% and 3.5% per transaction, with additional per-transaction fees ranging from 5 to 30 cents. These fees generally fall into two categories:

  • Flat-rate fees: A consistent percentage is applied to all transactions, regardless of the type of card or transaction method. This model is predictable but may not be the cheapest for high-volume businesses.
  • Interchange-plus fees: The processor charges the actual cost (interchange fee) set by the credit card networks plus a small markup. This model is often more cost-effective for businesses processing large volumes or higher-value transactions.


Some processors may also charge additional fees, such as:

  • Service fees (monthly or annually)
  • Setup or termination fees
  • Chargeback or PCI compliance fees

2. How can I reduce credit card processing fees?

There are several strategies to lower your credit card processing costs:

  • Negotiate rates: For businesses with a high transaction volume, some processors are willing to negotiate lower fees.
  • Choose the right pricing model: If your business processes a large number of transactions, the interchange-plus model may be more cost-effective than flat-rate pricing.
  • Pass fees to customers: Some processors, like eHopper, allow businesses to pass transaction fees to customers by implementing a surcharge or cash discount program.
  • Limit keyed-in transactions: Keyed-in or online transactions typically carry higher fees due to increased fraud risk. Encourage in-person payments whenever possible to lower transaction costs.

3. What’s the difference between flat-rate and interchange-plus pricing?

  • Flat-rate pricing: Businesses pay a fixed percentage and fee per transaction, regardless of the card type or transaction method. This model offers simplicity and predictability, especially for smaller businesses with lower sales volumes. For example, Square charges 2.6% + 10 cents for in-person transactions, regardless of the card type.

  • Interchange-plus pricing: The fee structure includes the interchange fee (set by the card networks) plus a small markup from the payment processor. This model offers more transparency and can result in lower costs for businesses that process a higher volume or larger transactions, as the markup stays fixed while interchange fees vary.

4. What hidden fees should I watch out for?

In addition to the standard processing fees, many providers include hidden costs that can increase the overall expense of accepting credit cards. Be on the lookout for:

  • Monthly service fees: Charged for using the processor’s system.
  • Setup or termination fees: Some providers charge for setting up your account or terminating a contract early.
  • PCI compliance fees: These fees are charged to ensure your business meets industry security standards for protecting cardholder data.
  • Chargeback fees: If a customer disputes a transaction, you may be charged a fee for processing the chargeback.
  • Batch processing fees: Fees for closing out a batch of transactions at the end of the day.


To avoid surprise charges, request a complete list of all fees from your provider upfront.

5. How do I choose the best payment processor for my business?

Choosing the right payment processor depends on your business’s specific needs. Here are a few key considerations:

  • Transaction volume: If your business processes a high volume of transactions, an interchange-plus pricing model might offer lower fees.
  • Business type: Some processors, like Toast, are tailored to specific industries (e.g., restaurants), offering features like tip management or table mapping.
  • Customer support: Look for processors with 24/7 customer service, especially if your business operates outside of standard hours.
  • Integration with POS/e-commerce systems: Make sure the processor integrates with your existing POS system or online platform to streamline your operations.
  • Cost structure: Consider all fees (monthly, per-transaction, setup, etc.) to ensure you’re getting a cost-effective solution.

6. Can I pass credit card processing fees onto customers?

Yes, many businesses pass the cost of credit card processing to customers through surcharges or cash discount programs. In a surcharge model, a fee is added to a customer’s bill when they choose to pay by credit card. With a cash discount program, businesses offer a discount to customers who pay with cash, effectively passing on credit card fees to card users. Be sure to check your local laws, as some states in the U.S. have restrictions or guidelines on surcharging.

7. What equipment do I need for credit card processing?

The equipment you need depends on how you plan to accept payments:

  • In-person transactions: You’ll need a card reader or POS system. For smaller businesses or mobile setups, providers like Square and Clover offer mobile card readers that connect to smartphones or tablets. Larger operations might require a countertop POS system with multiple features (e.g., inventory management, tip calculations).
  • Online transactions: A payment gateway is essential for accepting credit card payments online. The gateway connects your website’s checkout page to the payment processor.
  • Virtual terminal: If you need to process phone or mail orders, a virtual terminal allows you to manually enter card details through a secure web-based platform.

8. How long does it take to receive funds after a transaction?

The time it takes for funds to be deposited into your business’s bank account varies by provider. Most processors offer standard deposit times of 1-2 business days, although some may provide same-day or next-day deposits for an additional fee. For example, Square offers instant access to funds for a 1.5% fee.

9. Can I cancel a contract early?

Some credit card processors require long-term contracts with early termination fees, while others offer month-to-month agreements with no penalties for canceling. Always review your contract terms carefully before signing. Providers like Helcim and Stax offer no-contract plans, allowing businesses to switch providers without incurring fees.

10. What is PCI compliance, and why is it important?

PCI compliance refers to the Payment Card Industry Data Security Standard (PCI DSS), which is a set of guidelines businesses must follow to protect cardholder data. Compliance is mandatory for any business that accepts credit card payments, and failure to comply can result in hefty fines or security breaches. Many processors, like PaymentCloud, offer free assistance to help businesses achieve and maintain PCI compliance.

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

Share the Post:

About The Author

Roger Wood

Roger Wood

With a Baccalaureate of Science and advanced studies in business, Roger has successfully managed businesses across five continents. His extensive global experience and strategic insights contribute significantly to the success of TimeTrex. His expertise and dedication ensure we deliver top-notch solutions to our clients around the world.

Time To Clock-In

Start your 30-day free trial!

Experience the Ultimate Workforce Solution and Revolutionize Your Business Today

Get Started For Free
  • Eliminate Errors
  • Simple & Easy To Use
  • Real-time Reporting
TimeTrex Mobile App Hand
TimeTrex Logo

Saving businesses time and money through better workforce management since 2003.

Contact Us

Facebook-f X-twitter Youtube Linkedin-in

Solutions

Products

Services

Guides & Tools

Support

Company

Copyright © 2024 TimeTrex. All Rights Reserved.

Privacy Policy
Terms of Use