Our top picks offer competitive rates, handle most payment types and have great ratings for customer service.
Written By: Mike Berner Senior Analyst & Expert on Business Operations Verified Check Verified Check Editor VerifiedA business.com editor verified this analysis to ensure it meets our standards for accuracy, expertise and integrity.
Managing Editor & Expert on Business OwnershipIn today’s digital age, customers expect a seamless buying experience, and that includes offering a variety of payment options. But if you’re not set up for credit card processing, you’re missing out on a huge chunk of potential sales. The good news? Accepting credit cards is easier than you think. This article will walk you through the entire credit card processing process, from choosing the right provider to understanding the fees involved. We already did the heavy lifting by reviewing dozens of processors and narrowing them down to our best picks. By the end of this guide, you’ll be equipped to unlock the power of credit card payments and watch your sales soar.
Best for POS HardwareLinks to Clover Credit Card Processing
Links to Merchant One
Links to North Payments
At business.com, we’ve spent years advising entrepreneurs, creating actionable guides for obtaining funding and managing business finances, and comparing and contrasting leading software and services to identify the best financial tools for small and growing businesses. Our playbooks and explainers are packed with advice from real business lenders, accountants, credit card processing experts, tax advisers and other finance professionals.
To inform our financial software and service recommendations, we put ourselves in the shoes of business owners and test each product’s effectiveness while taking into account its cost. Every review, whether it be for a credit card processing solution or invoicing software, is infused with our guiding principles: accuracy and objectivity. Learn more about our editorial process.
To determine the best credit card processors, we tried various vendors’ credit card processing equipment and examined their functionality. We compared each provider’s processing fees and transaction rates, looked at.
To determine the best credit card processors, we tried various vendors’ credit card processing equipment and examined their functionality. We compared each provider’s processing fees and transaction rates, looked at integration options and studied their contract terms and payout times. We also considered which systems offered POS tools and which were suited for a specific industry or sales volume.
101 35 6To determine the best credit card processors, we tried various vendors’ credit card processing equipment and examined their functionality. We compared each provider’s processing fees and transaction rates, looked at integration options and studied their contract terms and payout times. We also considered which systems offered POS tools and which were suited for a specific industry or sales volume.
101 35 6
Businesses on a Budget
Subscription plus flat rate
Subscription plus flat rate
Interchange-plus, flat rate
Next business day
Next business day
2-3 business days
2-3 business days
Scroll TableWhen it comes to credit card processors with top-notch POS integration, Clover stands out for its versatile hardware options. We were impressed with the Flex, a handheld terminal that lets you process transactions tableside, Meanwhile, the Clover Station provides a complete POS system that we found easy to use. And for businesses that need simple yet effective contactless payments, we like that the Clover Go reader pairs seamlessly with your smartphone, taking the hassle out of accepting tap-and-pay transactions. We were also excited to see that newer Go readers even offer invoicing capabilities, expanding their functionality beyond simple payments.
Clover offers various POS equipment products. Source: Clover
| Starter | Standard | Advanced | |
|---|---|---|---|
| Full-service dining | $150 | $195 | $290 |
| Quick-service dining | $90 | $130 | $175 |
| Retail shops | $60 | $130 | $175 |
| Professional services | $14.95 | $50 | $120 |
| Personal services | $50 | $90 | $130 |
| Home and field services | $14.95 | $49 | $50 |
Processing fees
Hardware
Trust Pilot: 3.6/5
“Clover has been great for us! It’s a very affordable easy to use system,” one user wrote.
More ArrowMerchant One provides credit card processing solutions for businesses of all sizes and adjusts its pricing based on factors, such as business size, industry and credit. We were impressed by the wide range of services, including entire POS systems with terminals and credit card readers that attach wirelessly to iOS or Android devices. We also like that Merchant One boasts a high approval rate and a quick turnaround of funds.
Merchant One, a reseller of Clover POS hardware, provides high-speed processing, supports gift and loyalty card programs and offers the ability to launch text message marketing campaigns. Its e-commerce offering has many more features, including a free shopping cart and remote access. Merchant One, which boasts a 98% approval rating, has 24/7 customer support and provides you with a dedicated account manager to help you throughout the setup process, which is not something all of those we researched offered.
Merchant One features a sleek user interface. Source: Merchant One
Monthly pricing
$6.95 a month, plus a $99 annual fee. Other monthly fees may apply.
Processing fees
Merchant One’s processing rates differ based on the exact type of business
Hardware
Free hardware is available upon signup. Merchant One also resells Clover POS hardware.
Trust Pilot: 4.8/5
“Gave genuine assistance, clarified information upon request, provided answers to all given questions and even enable us to receive discounts on our current rates. Great service. Much appreciated,” one user wrote.
More Arrow
North Payments differentiates itself from other processors by promising an easy application process, quick approval and free equipment. We especially like that the company is willing to work with businesses in high-risk industries and it offers next-day funding.
We were impressed with North Payments’ merchant portal, Payments Hub, which lets you view key statistics, such as gross sales, transactions, refunds, disputes and other recent activities. Payments Hub also features a virtual terminal, invoicing and other tools. North Payments also offers numerous third-party POS devices, including several Payanywhere products. One advantageous offering is North Payments’ cash discount program called EDGE, which is designed to reward customers for paying in cash.
Payments Hub’s virtual terminal allows you to key-in transactions. Source: North American Bancard
Although the company doesn’t disclose its rates, factors, such as your business’ size and transaction volume, will determine your final cost. You will need to contact North Payments directly for a customized quote.
We included USBank’s credit card processing services on our list because the company keeps budget-conscious businesses in mind. We like that they throw in free rentals of essential POS hardware to get you up and running without breaking the bank. Plus, its tiered pricing structure is clear and upfront, so there are no hidden surprises down the road. And for those times when cash flow is critical, we were particularly impressed with the same-day funding feature. This gets your processed transactions back in your hands faster than some competitors, keeping your business moving smoothly. USBank strikes a perfect balance between affordability and functionality, making them a great choice for businesses on a budget.
USBank offers useful dashboard reporting features. Source: USBank
Processing Rates
| Transaction Type | Fee |
|---|---|
| Swipe, tap, insert | 2.6% + $0.10 |
| Keyed-in transaction | 3.5% + $0.15 |
| Online transactions | 2.9% + $0.30 |
Hardware
USBank offers free hardware rentals, as well as paid monthly plans that include POS equipment. These plans range in price from $15 to $99 per month.
We love Square for startups because it’s so easy to get up and running quickly. Their software and POS hardware are known for being user-friendly, and their application process is smooth for almost any business. Plus, Square’s pricing is affordable, making it a budget-conscious choice.
We like how Square lets you accept payments in all sorts of ways, from swipes and dips to contactless options and even digital gift cards (which they offer for free). This flexibility ensures you can reach your customers however they prefer to pay. For those with a physical storefront, we recommend Square’s variety of attractive and functional POS hardware options to complete your setup.
Square’s POS devices are affordable and fully integrate with the company’s credit card processing. Source: Square
Processing Rates
| Transaction Type | Fee |
|---|---|
| Swiped or inserted chip cards, contactless payments | 2.6% + $0.10 |
| Manually keyed-in payments, Card on File, Virtual Terminal | 3.5% + $0.15 |
| Invoices (Free plan) | 3.3% + $0.30 |
| Invoices (Plus plan) | 2.9% + $0.30 |
Hardware
Trustpilot: 4.0/5
“I have used many different Credit Card Solutions and POS Systems. I’ll take Square over all of them. It’s just easy and straight forward. No hidden fees or crazy calculations needed to determine the fees. Also great support,” one user wrote.
More ArrowPaysafe caters to specific industries with specialized solutions. The company provides tailored credit card processing services for retailers, hospitality, convenience stores, gas stations and direct marketing companies. But what excites us the most is that Paysafe is willing to work with many unusual industries, including cryptocurrency, video gaming and forex – industries that often face difficulty in obtaining credit card processing services.
Paysafe’s e-commerce tools include a secure checkout form. Source: Paysafe
Paysafe uses a quote-based pricing model. Unlike some other providers that we reviewed, the company doesn’t publicly disclose its rates. However, you can contact the company for a customized quote.
A credit card payment service, also called a credit card processor or payment processor, is a company merchants use to facilitate customer transactions and payments at the point of sale (POS). When a customer uses a credit card, debit card or digital wallet to purchase something, a payment processor communicates with the customer’s card-issuing bank and facilitates the transfer of money to the merchant.
The main benefit of credit card processing is that it allows you to accept credit and debit cards and, in many instances, mobile wallets like Apple Pay and Google Pay. Acceptance of these payment types is increasingly important for nearly every type of business as many customers don’t carry cash anymore. Here are a few more key benefits for business owners:
A virtual terminal can be used to key-in transactions manually. Source: Clover
Credit card processing rates are typically expressed as a percentage of the sale plus a small per-transaction fee. Some credit card processors charge a flat monthly subscription. Here’s a breakdown of the three most common pricing models:
This is the most common pricing model, but it’s widely criticized by industry experts because it’s not as transparent as interchange-plus pricing. It attempts to simplify the interchange table by combining interchange rates, assessment fees and markups and then sorting them into tiers. Tiered pricing is also referred to as “bundled pricing” or “bucket pricing.”
Most processors categorize these tiers as qualified, midqualified and nonqualified transactions, although some plans may have only two or up to six tiers, with separate rates for credit and debit cards. The factors that determine the transaction category include the type of card ― whether it’s debit or credit and if it’s a regular, rewards, corporate, government-issued or international card ― and how the transaction is processed, whether you accept the card in person using a card reader, accept it online or key it in manually.
Did You Know? Did you know Some processors have a special lower rate for PIN debit transactions.Critics note a variance between processors as to which interchange rates fall into each tier, which makes it difficult to compare pricing between services. We found this to be true in our research as some processors categorize rewards cards as midqualified and others define them as nonqualified. This variance in tier categorization, sometimes referred to as “inconsistent buckets,” makes it difficult to determine how much you can expect to pay above the set costs for your processing:
Most industry experts prefer this model because it promotes pricing transparency. The interchange-plus pricing model may also be called “pass-through pricing” or “cost-plus pricing,” because the processor passes the interchange rates and assessment fees to you at cost and adds a markup.
The processor’s markup stays the same no matter what card type your customers pay with, so you can see how much you’re paying the processor. This makes it easier to spot savings when you’re comparing services. Also, many of the companies that offer interchange-plus pricing post their rates on their websites, which saves you time in gathering rates from the companies you’re interested in learning more about:
This is the simplest pricing model. Most processors that use this model charge a fixed percentage rate for each sale, regardless of card type. Alternatively, some processors charge a fixed percentage rate and a per-transaction fee. There are usually different rates for cards accepted in person and online.
Mobile credit card processing companies commonly use this pricing model. There are typically no monthly or annual fees, making it a good option for small businesses that don’t process enough transactions to cover these costs. Most of the time, the only other fee is a chargeback fee, which is only triggered when a customer disputes a transaction.
In addition to processing rates, you’ll pay various fees to the credit card processor you choose. Some are one-time or per-occurrence fees, and others are charged monthly or annually.
Tip Bottom lineFor a complete list and explanation of fees, including nonstandard fees that you should never pay, see our small business guide to credit card processing fees.
These fees are also common but only charged per occurrence:
Some processors charge a variety of miscellaneous fees in addition to the standard fees listed above. Some of the worst are cancellation fees, club or membership fees and fees for what the contract vaguely defines as “additional services.”
Again, it’s important to read the entire contract before you sign anything to make sure no fees are tucked away in the fine print. As you read the contract, note every fee it lists. Then, before you sign the contract, ask your sales rep what each fee is for, how much it costs, how frequently it’s charged and if it can be waived. If the sales rep agrees to waive a fee, be sure to get this in writing, either in the contract or as an addendum.
Selecting the right credit card processor can make a big difference for your business’s bottom line. Follow this checklist to help you make the best choice.
Determine the average number and size of transactions. This will tell you which credit card pricing model will give you the most bang for your buck. Consider any special needs related to your industry. E-commerce businesses will require the ability to accept credit cards through online checkout systems. High-risk businesses should also seek out credit card processors with high acceptance rates.
You should also evaluate your existing POS system and software needs. Does the credit card processor integrate with your systems?
Carefully examine fee structures, including transaction fees, monthly fees, setup fees, and any additional charges. Look for hidden fees like chargeback fees, early termination fees, or monthly minimums.
Assess the processor’s customer support channels (phone, email, live chat) and response time. Ensure that the processor is PCI compliant and offers robust security measures to protect customer data. Also, you should assess the processor’s tools and support for handling chargebacks, which are a major source of frustration for some small businesses.
Explore testimonials from third-party, user-generated review sites such as Trustpilot and TrustRadius. This can help gauge customer satisfaction and uncover the pros and cons.
Obtain quotes from multiple processors to compare pricing and features. Don’t hesitate to negotiate fees, especially if you have a high transaction volume. Lastly, carefully review the contract terms before signing.
Before you commit to a processor, consider what you will need for your business. Features that we considered for our best picks include the following:
Many credit card processors resell Clover POS equipment. Source: Clover
Helcim goes beyond most credit card processors in the tools that it offers to support your business. Its software has advanced capabilities, such as POS services, customer management, inventory management and employee tracking and management ― functions that some other processors only include in their more expensive plans. This versatile platform earns Helcim our pick for the best all-in-one credit card processor.
Sekure is a credit card processing broker that gives businesses the options they need when choosing a payment processing provider. With Sekure, you can choose from multiple payment methods and craft a plan that suits your budget and transaction volume. We liked how Sekure can help you navigate the credit card processing space to find a reliable provider that offers the personalized service your business needs.
Chase is one of the largest banks in the United States and a major credit card issuer, which gives it unparalleled insight into consumer spending. Businesses that sign up for credit card processing with Chase Payment Solutions can access the bank’s vast trove of data. Leveraging big data effectively allows small businesses to target potential customers. This feature differentiates Chase Payment Solutions from other processors, which is why we chose it as our best pick for data analytics.
We think that online business owners will appreciate Stripe for its e-commerce tools! In our testing of the service, we found that setting up online payments is a breeze with their user-friendly platform. Plus, it seamlessly connects with platforms like Shopify and Magento, keeping checkout smooth for customers. But we like that Stripe offers more than just ease of use. You can customize our store exactly how we want, and their robust security features keep transactions safe.
We chose National Processing as the best credit card processor for low transaction rates because its interchange-plus rates are low compared to other processors. It also boasts a rate-lock guarantee, which means your rates won’t increase during your contract. National Processing is also willing to match or beat competitors’ rates, which we found to be a unique benefit among the processors that we examined. National Processing will pay you $500 if it can’t beat your current rate.
Flagship Merchant Services is a full-service payment processing company that allows merchants to take payments online, in person, by mail and over the phone. While many processors lock merchants into multi year agreements with cancellation fees, Flagship offers merchant account services to all of its customers on a month-to-month basis and doesn’t charge a cancellation fee. That’s why Flagship is our best pick for flexible contracts.
In our view, Finix is a game-changer for high-growth business. Unlike other processors with one-size-fits-all solutions, Finix lets you customize the entire payment experience. We like that you can build a system that perfectly fits your unique needs, and it can grow and adapt right alongside your business. Plus, their robust API allows for seamless integrations with existing tools. Whether we’re adding new features or expanding to new markets, we were impressed that Finix is built to handle it all.
Finix’s APIs allow users to quickly and easily build custom integrations. Source: Finix
To choose the best credit card processors on the market, our team of financial analysts and business operations experts evaluated an initial list of 101 contenders. After whittling our list down to 35 contenders, we chose six credit card processors as our top recommendations. Our experts and analysts carefully studied each option and evaluated the processors on 27 factors.
To reach our final conclusion, we considered various factors categorized by importance. These categories reflect what business owners typically prioritize when selecting and purchasing business services.
By evaluating these factors, we identified not only trustworthy credit card processing options, but also how each platform best fits specific business needs. We recognized that some processors excel at certain tasks or cater to particular company types. This analysis led to the “Best For” categories you see on this page, ensuring you can easily find the credit card processor that aligns perfectly with your business goals.
To learn more about our methodology, see our full editorial process.
When a customer inserts a credit card into a merchant’s card reader, it initiates a complex series of data transfers that results in money being debited from the cardholder’s account and credited to the merchant’s bank account. The data passes through the terminal via secure connection to the processor, the credit card network, the bank that issued the customer’s credit card and the merchant’s bank.
You should have your credit card processing system ready to go before you start accepting credit card payments. Credit and debit cards are the most popular payment methods for consumers, and they are necessary if you plan to sell your products and services online through a business website.
In some cases, a business may do well by accepting cash only, especially if you maintain a solid base of local customers. Whatever you do, make sure you know your target market and which form of payment they prefer to use.
A credit card processor acts as a bridge between your business and your customers’ banks. They handle the complex process of authorizing, processing, and settling credit card transactions. This includes everything from securely transmitting payment information to ensuring that funds are transferred to your account. Processors also provide essential tools like payment terminals, online payment gateways, and fraud protection services.
Yes. Many credit card processors provide offline payment capabilities, allowing you to store credit card and sales information without an internet connection. As soon as you are back online, the credit card processor will complete the transaction. This ensures that you never miss a sale.
While no credit card processor is truly “free,” some merchants choose to pass on credit card processing costs to customers through surcharging. [Read more about the pros and cons of surcharging.] High volume businesses can try to limit their credit card processing fees by using a processor that offers subscription pricing, such as Merchant One.
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Share Article: Written By: Mike Berner Senior Analyst & Expert on Business OperationsMike Berner brings to business.com over half a decade of experience as a finance expert, having previously served as an economic analyst for the U.S. Army Corps of Engineers. His expertise lies in conducting quantitative analysis and research, providing invaluable guidance for navigating the modern financial landscape. Berner, who has a bachelor's degree in economics and a bachelor of business administration in finance, enjoys simplifying complicated financial concepts for entrepreneurs and business owners. From deciphering the intricacies of business loans and accounting to identifying the best payroll systems and credit card processors, he offers comprehensive insights tailored to meet diverse business needs. At business.com, Berner covers business plans, funding solutions, accounting software, the ins and outs of credit card processing and more. Beyond dedicating himself to exploring and evaluating the latest financial solutions, Berner has also become adept at explaining how businesses can take advantage of artificial intelligence tools. His passion for sharing knowledge extends to various platforms, including Substack, TikTok and YouTube, where he imparts tips and strategies on topics like sales tactics, savvy investing and tax saving.
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