The best payment processing companies offer some combination of fair rates, useful features, helpful customer service and integrations with the rest of your business software ecosystem. Factor in your small business’s industry, monthly sales volume and average transaction size, as well as whether you accept credit card payments in-store or online, to find the right fit.
Our top picks for the best payment processing companies include the following options:
250+ small-business products reviewed and rated by our team of experts.
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Objective and comprehensive payment processing ratings rubric. (Learn more about our star ratings.)
NerdWallet's small-business software content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business software, including payment processing, accounting and payroll. Their work has appeared in The Associated Press, The Washington Post, Nasdaq, Entrepreneur, ABC News, Yahoo Finance and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
Best Payment Processing Companies From Our Partners
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Input your business’s monthly transaction details and we’ll help you sort from the best valueProduct | Cost Estimate | Payment processing fees | Cost Estimate | Learn more | ||
|---|---|---|---|---|---|---|
Helcim Learn more on Helcim's secure website | Get an estimated monthly cost for your business. | 5.0/5 Best for Volume discounts | In-person: 0.4% + $0.08 Online: 0.5% + $0.25 Plus interchange | $0.00 | Get an estimated monthly cost for your business. | Learn more on Helcim's secure website |
Stripe Learn more on Stripe Payments' secure website | 5.0/5 Best for Online, international transactions | In-person: 2.7% + $0.05 Online: 2.9% + $0.30 | $0.00 | Learn more on Stripe Payments' secure website | ||
Square Learn more on Square's secure website | 5.0/5 Best for Flat-rate option for brick-and-mortar businesses | In-person: 2.6% + $0.10 Online: 2.9% + $0.30 | $0.00 Starts at $0/month for unlimited devices and locations. | Learn more on Square's secure website | ||
Chase Payment Solutions℠ Learn more on Chase Payment Solutions℠'s secure website | 4.5/5 Best for Direct processor | In-person: 2.6% + $0.10 Online: 2.9% + $0.25 | $0.00 Monthly fee in some instances. | Learn more on Chase Payment Solutions℠'s secure website | ||
Finix Learn more on Finix's secure website | 5.0/5 Best for Low interchange-plus rates | In-person: 0% + $0.08 Online: 0% + $0.15 Plus interchange | $79.00 and up. | Learn more on Finix's secure website | ||
National Processing Learn more on National Processing's secure website | 5.0/5 Best for Low flat-rate processing | In-person: 2.5% + $0.10 Online: 2.9% + $0.30 | $9.95 for Basic In-Person Package. | Learn more on National Processing's secure website | ||
Shopify Payments Learn more on Shopify Payments' secure website | 4.5/5 Best for E-commerce platform integration | In-person: 2.6% + $0.10 Online: 2.9% + $0.30 | $39.00 Basic plan; $105 Shopify plan; $399 Advanced plan. | Learn more on Shopify Payments' secure website | ||
Stax by Fattmerchant Learn more on Stax by Fattmerchant's secure website | 4.0/5 Best for Subscription-based pricing | In-person: 0% + $0.08 Online: 0% + $0.15 Plus interchange | $99.00 and up. | Learn more on Stax by Fattmerchant's secure website | ||
U.S. Bank Merchant Services Learn more on U.S. Bank Merchant Services' secure website, Member FDIC | 4.5/5 Best for Quick deposits | In-person: 2.6% + $0.10 Online: 2.9% + $0.30 | $0.00 and up. | Learn more on U.S. Bank Merchant Services' secure website, Member FDIC | ||
Clover Learn more on Clover's secure website | 4.5/5 Best for POS hardware options | In-person: 2.3% + $0.10 Online: 3.5% + $0.10 | $0.00 and up. | Learn more on Clover's secure website | ||
PayPal Learn more on PayPal's secure website | 5.0/5 Best for Alternative payment methods | In-person: 2.29% + $0.09 Online: 2.89% + $0.49 | $0.00 Standard; $5 Payments Advanced; $30 Payments Pro. | Learn more on PayPal's secure website |
Our pick for
Volume discounts
Helcim
Learn more
on Helcim's secure website
Monthly fee
$0.00
Unlike flat-rate payment processors that charge the same transaction fee across different types of credit cards, Helcim uses an interchange-plus pricing model. This means your business saves when a customer uses a card with low interchange rates. Helcim also offers volume discounts if you process more than $50,000 monthly, which is a plus for high-volume businesses. And if you need hardware for taking payments in-person, the company sells its own smart terminal and mobile card reader, too.Read full review
Pros
- Interchange-plus pricing structure can help businesses save money.
- Quick setup; approvals usually take a day.
- Offers volume-based discounts automatically.
- Syncs directly with QuickBooks Online and Xero.
- No termination fees or long-term contracts.
Cons
- Deposits are available within two business days; same-day deposit option is not available.
- Doesn’t offer services to businesses in certain high-risk industries.
Our pick for
Online, international transactions
Stripe
Learn more
on Stripe Payments' secure website
Monthly fee
$0.00
Stripe specializes in processing online card transactions and is an especially great fit for businesses with customers located internationally. The payment processing company supports more than 135 currencies, works in 46 countries and allows you to embed checkout portals on existing websites. It’s not built for any one industry in particular, but it’s ideal for online retailers transacting via website checkout portals and freelancers or service-based businesses sending online invoices to customers. Stripe is a flat-rate processor and doesn’t charge a monthly fee for its basic Payments plan.
Pros
- Highly customizable online checkout options.
- No termination fees or long-term contracts.
- 24/7 phone and chat support.
- Can process transactions in more than 135 currencies.
Cons
- Doesn’t sell full countertop POS terminals.
- Deposits can take up to two business days.
Our pick for
Flat-rate option for brick-and-mortar businesses
Square
Learn more
on Square's secure website
Monthly fee
$0.00
Starts at $0/month for unlimited devices and locations.
With simple flat-rate processing, free point-of-sale software, solid hardware options and accounting integrations, Square is an excellent choice for brick-and-mortar business owners who value convenience and want an all-in-one system.
Pros
- Competitive, flat-rate pricing.
- Offers free POS systems with many features and functions.
- No contract or early-termination fees.
Cons
- Lacks advanced POS features.
- Doesn't run on Windows devices.
Our pick for
Direct processor
Chase Payment Solutions℠
Learn more
on Chase Payment Solutions℠'s secure website
Monthly fee
$0.00
Monthly fee in some instances.
Chase Payment Solutions is a safe bet for businesses that prefer to work with a bank that communicates directly with card networks. Businesses that already have a business bank or credit card account with Chase will also appreciate the familiar name and streamlined banking and processing experience. Its pricing is flat rate, and monthly fees vary.
Pros
- Two-in-one processor and acquiring bank.
- Free monthly plans available.
- Using your bank as your processor makes deposits convenient.
Cons
- Some hardware pricing is not readily available.
- No e-commerce integrations.
- Chase’s Business Complete checking account comes with a $15 monthly service fee for some merchants.
Our pick for
Low interchange-plus rates
Finix
5.0
NerdWallet rating Learn more
on Finix's secure website
Monthly fee
$79.00
and up.
Finix is a subscription-based payment processor that charges interchange plus a small additional fee. It’s most cost-effective for businesses that process at least $5,000 per month and offers volume discounts to businesses that process more than $1 million in card transactions annually. Finix sells card readers and handheld terminals for in-person transactions, includes invoicing capabilities and offers multiple online transaction options.
Pros
- No long-term contracts.
- Subscription model can help high-volume businesses save money.
- Transparent fee breakdowns.
- 24/7 emergency phone and email support.
Cons
- Limited POS hardware options.
- Lacks direct accounting software integrations.
Our pick for
Low flat-rate processing
National Processing
Learn more
on National Processing's secure website
Monthly fee
$9.95
for Basic In-Person Package.
At 2.5% plus 10 cents per in-person transaction, National Processing’s payment processing rates are especially low compared to other flat-rate competitors. If you subscribe to the Advanced plan for POS systems, those rates drop to 2.41% plus 10 cents. New merchants may also qualify for a free terminal.Read full review
Pros
- Low in-person processing fees for a flat-rate processor.
- No termination fees or long-term contracts.
- Works with high-risk merchants.
- New merchants may qualify for a free terminal.
- 24/7 phone support.
Cons
- Fees may be higher if you process less than $10,000 per month.
- Basic plans for processing in-person and online transactions are separate.
- Mobile card reader is pricier than some competitors.
Our pick for
E-commerce platform integration
Shopify Payments
Learn more
on Shopify Payments' secure website
Monthly fee
$39.00
Basic plan; $105 Shopify plan; $399 Advanced plan.
If you’re in the market for an online payment processing company and a customizable e-commerce platform, Shopify Payments is a solid option. It’s not the least expensive necessarily, but it has more than 200 website templates that make it easy to design an on-brand, aesthetically pleasing website. Shopify charges a flat-rate payment processing fee and a separate monthly fee for your online website and POS software features.
Pros
- Accepts a variety of payment methods.
- Can customize checkout page.
- Easy to set up and use.
- Transparent, flat-rate fees.
Cons
- E-commerce plan with monthly fee is required to use Shopify Payments.
- Charges fee for use of third-party payment gateway.
Our pick for
Subscription-based pricing
Stax by Fattmerchant
Learn more
on Stax by Fattmerchant's secure website
Monthly fee
$99.00
and up.
In exchange for lower interchange-plus fees, Stax charges businesses a monthly fee that starts at $99. This membership-based pricing model is advantageous for high-volume businesses that would accumulate more than $99 per month in processing fees otherwise. In fact, it can actually help them save money. Stax’s $99 monthly fee applies to businesses processing up to $150,000 per year. Businesses processing $150,000-$250,000 pay $139 per month and those exceeding $250,000 per year pay $199 each month.
Pros
- Businesses save when customers use cards with low interchange rates.
- Unique add-on features, like custom branding.
- No long-term contracts.
Cons
- Not a good option for businesses with low sales.
- Pricing isn't as transparent as competitors.
Our pick for
Quick deposits
U.S. Bank Merchant Services
Learn more
on U.S. Bank Merchant Services' secure website, Member FDIC
Monthly fee
$0.00
and up.
U.S. Bank Merchant Services is an all-in-one solution for banking, payment processing and POS software. Businesses with a U.S. Bank checking account are eligible to receive deposits more quickly than they might with competitors, thanks to the company’s Everyday Funding option. This gives you access to free deposits every day of the week, including weekends. Read full review
Pros
- Same-day funding seven days per week for U.S. bank checking account holders.
- No PCI compliance fees.
- No cancellation fees.
- Free POS software plan available.
Cons
- POS system onboarding assistance can be costly.
- Deposit times are not as quick for merchants using third-party bank accounts.
Our pick for
POS hardware options
Clover
Learn more
on Clover's secure website
Monthly fee
$0.00
and up.
Lots of payment processing companies offer POS hardware options, but Clover’s is especially diverse. You can choose between a mobile card reader, handheld terminal, countertop POS register bundle with or without customer-facing screen and a kiosk that lets customers place orders themselves. Read full review
Pros
- Free plan available if you’re only using a mobile card reader.
- Variety of hardware options for restaurants and retail stores.
- Same-day deposits available for an added fee.
- 24/7 phone support.
Cons
- Popular accounting integrations are only available through third-party apps.
- Online payment processing rates are more expensive than competitors.
- Promotions require a three-year contract.
- Charges PCI compliance fees and, in some cases, termination fees.
Our pick for
Alternative payment methods
PayPal
Learn more
on PayPal's secure website
Monthly fee
$0.00
Standard; $5 Payments Advanced; $30 Payments Pro.
PayPal is a leader in developing and accepting payments in innovative ways, including through subsidiary Venmo, QR codes, payment links and buy-now-pay-later financing. Because it’s such a widely used platform, PayPal integrates with most websites and shopping carts.
Pros
- One of the most commonly used payment processing platforms.
- Easy to use and integrate with website hosts and shopping carts.
- Transparent fixed fees in 25 currencies.
Cons
- PayPal’s offerings are vast and can be difficult to grasp quickly.
- Payment processing can be expensive for small purchases.
- Not ideal for high-risk or high-volume businesses.
Helcim
Best volume discounts
NerdWallet rating:
Why we like it: With its volume discounts, transparent interchange-plus pricing and quick setup, Helcim is one of the best payment processors for small businesses. Businesses aren’t locked into a contract, and the merchant account provider doesn’t come with a monthly subscription charge. There are no setup fees or PCI compliance fees. Read NerdWallet’s Helcim review.
Monthly POS software fees: $0.
Payment processing fees:
- Interchange plus 0.4% and 8 cents per in-person transaction (if $50,000 or less in monthly card transactions).
- Interchange plus 0.5% and 25 cents per online or manually keyed transaction (if $50,000 or less in monthly card transactions).
- 0.5% plus 25 cents for ACH payments (capped at $6).
Hardware costs:
- $99 for a mobile card reader (with stand).
- $329 for a stand-alone terminal with built-in thermal printer (or 12 monthly payments of $30).
Square
Best flat-rate option for brick-and-mortar businesses
NerdWallet rating:
Why we like it: Square’s simple flat-rate processing, quick setup and array of in-house POS hardware options make it one of the most convenient all-in-one options for brick-and-mortar businesses. It doesn’t charge additional fees for cancellation, PCI compliance or setup, and offers a free POS software plan for retail stores and restaurants. Read NerdWallet’s Square review.
Monthly POS software fees:
- $0 for Square POS, Restaurant, Retail and Appointments Free plans.
- $29 for Square Appointments Plus plan.
- $69 for Square Appointments Premium and Square Restaurants Plus plans.
- $89 for Square Retail Plus plan.
- $165 for Square Restaurant Premium plan.
- Custom pricing for Square Retail plan.
Payment processing fees:
- 2.6% plus 10 cents for in-person transactions.
- 2.9% plus 30 cents for online transactions.
- 3.5% plus 15 cents for manually keyed transactions.
- 3.3% plus 30 cents for invoices.
Hardware costs:
- $0 for Square magstripe-only card reader ($10 for each additional reader) or if using Tap to Pay for iPhone (iPhone not included).
- $59 for Square Reader contactless and chip card reader.
- $149 for Square Stand iPad POS or Square Stand Mount (iPad not included; monthly financing available).
- $299 for Square Terminal mobile card reader with built-in printer (monthly financing available).
- $799 for Square Register two-screen system (monthly financing available).
Stripe
Best for online, international transactions
NerdWallet rating:
Why we like it: Stripe's payment processing services are a good fit for businesses that conduct most of their sales online. It supports over 135 currencies and offers customizable payment forms, 24/7 support and integrations with more than 450 platforms and extensions. Similar to Square, the service has a flat-rate pricing structure, no monthly subscription fees and no setup fees. Read NerdWallet’s Stripe Payments review.
Monthly POS software fees:
- $0 for standard services.
- $10 for custom domain.
Payment processing fees:
- 2.7% plus 5 cents for in-person transactions.
- 2.9% plus 30 cents for online transactions.
- 3.4% plus 30 cents for manually keyed transactions.
- 4.4% plus 30 cents for international card transactions.
Hardware costs:
- $59 for Stripe Reader M2.
- $249 for BBPOS WisePOS E card reader.
- $349 for Stripe Reader S700.
Finix
Best for low interchange-plus rates
NerdWallet rating:
Why we like it: Compared to flat-rate processing companies, processors like Finix can help higher-volume businesses save money by passing interchange savings to merchants and charging lower processing fees in exchange for a monthly subscription fee. Finix is transparent about how its fees are allocated and provides a line-by-line breakdown of each transaction’s processing fees. Read NerdWallet's Finix review.
Monthly POS software fees:
- $79 and up.
- One-month free trial for NerdWallet readers.
Payment processing fees:
- 8 cents plus interchange for card-present transactions.
- 15 cents plus interchange for card-not-present transactions.
Hardware costs:
Finix offers a variety of handheld terminals, card readers and keypads. Additional options are quote-based.
- $325 for the Sunmi P2 handheld terminal.
- $400 for the Sunmi P2 Smartpad.
- $425 for the PAX A77 handheld touchscreen terminal.
- $450 for the Ingenico Link 2500, PAX A35 and PAX A30 keypads.
- $500 for the PAX A920Pro handheld terminal and Ingenico Lane 3000 keypad.
- Equipment rentals start at $27 per month.
PayPal
Best for alternative payment methods
NerdWallet rating:
Why we like it: PayPal’s payment processing services stand out because they allow businesses to accept alternative payment methods like Venmo or consumer PayPal accounts. You can accept payments in person using PayPal Zettle, and customers can choose to buy now and pay later if they want. It also has a simple flat-rate pricing structure. Read NerdWallet’s PayPal Business review.
Monthly POS software fees:
- $0 for standard service.
- $5 for PayPal Payments Advanced.
- $10 for Advanced Fraud Protection service, buyer authentication service or recurring billing service.
- $19.95 for account monitoring service.
- $30 for Payments Pro, Payments Pro Payflow, Virtual Terminal or recurring payment tool.
Payment processing fees:
- 2.29% plus 9 cents for in-person credit and debit card payments.
- 2.59%-2.99% plus 49 cents for online credit and debit card payments.
- 3.49% plus 49 cents for PayPal Payments transactions (PayPal, Pay Later, Pay with Rewards, Venmo).
Hardware costs:
- $29 for first card reader; additional readers cost $79. Price includes USB cable.
- $199 for terminal only.
- $239 for terminal with barcode scanner built in.
- $229 for Store Kit Mini (tablet stand with card reader and dock).
- $339 for Store Kit Portable kit with mobile card reader and printer.
- $479 for Store Kit Standard (tablet stand, card reader, dock and printer).
- $699 for Store Kit Plus (adds barcode scanner).
National Processing: Best for low flat-rate processing
NerdWallet rating:
Why we like it: National Processing charges a small subscription fee in return for low flat-rate processing fees. Its in-person rates, in particular, are lower than many of its competitors’ rates at 2.5% plus 10 cents per transaction. It guarantees it can beat your current rates — if your business processes at least $10,000 per month — or it’ll give you $500. Read NerdWallet's National Processing review.
Monthly POS software fees:
- $9.95 for Basic In-Person Package, Basic E-Commerce Package.
- $9.95 and up for Premium Package (for businesses with monthly sales volumes exceeding $30,000).
- $19 and up for Advanced Package.
Payment processing fees:
- Basic In-Person Package: 2.5% plus 10 cents per transaction.
- Basic E-Commerce Package: 2.9% plus 30 cents per transaction.
- Advanced Package: 2.41% plus 10 cents.
- Premium Package: quote-based.
Hardware costs:
Offers handheld POS terminals and countertop registers from Clover, SwipeSimple and Pax.
- $99 and up for the SwipeSimple B250 mobile card reader.
- $345 and up for the Pax A80 countertop terminal.
- $445 and up for the Pax A920 handheld terminal.
- $550 and up for the SwipeSimple Aries8 POS system.
- $700 and up for the Clover Flex handheld terminal.
- $900 and up for the Clover Mini POS system.
- $1,000 and up for the Pax E700 POS system.
- $1,900 and up for the Clover Solo POS system.
- $2,000 and up for the Clover Duo POS system.
Clover
Best for POS hardware options
NerdWallet rating:
Why we like it: In addition to handling payment processing, Clover also offers sleek POS hardware and multiple software plans for small businesses in various industries, including retail, restaurants, personal services and professional services. Recent additions to its hardware lineup include a kitchen display system and self-ordering kiosk. Read NerdWallet’s Clover review.
Monthly POS software fees:
- $0 for Clover Go Payments, Retail Starter and Personal Services Starter plans.
- $14.95 for Clover Go Essentials, Professional Services Starter and Standard and Home & Field Services plans.
- $49.95 for Retail Standard, Personal Services Standard and Advanced and Professional Services Advanced plans.
- $59.95 for Quick-Service Dining Starter and Standard plans.
- $69.90 for Retail Advanced plan.
- $79.90 for Quick-Service Dining Advanced plan.
- $89.95 for Full-Service Dining Starter plan.
- $109.90 for Full-Service Dining Standard plan.
- $129.85 for Full-Service Dining Advanced plan.
Payment processing fees:
- 2.3% plus 10 cents for in-person transactions for most plans, though rates may also vary by hardware type.
- 2.6% plus 10 cents for in-person transactions on Retail Starter, Personal Services Starter and Professional Services Standard plans, as well as Home & Field Services Standard and Advanced plans.
- 3.5% plus 10 cents for online or keyed-in transactions.
Hardware costs:
- $199 for chip, swipe and contactless Clover Go card reader.
- $279 for countertop card reader.
- $599 for Clover Flex mobile POS with receipt printer and slimmer Flex Pocket with no printer.
- $799 for Clover Mini POS.
- $799-$899 + $25 per month for kitchen display system.
- $1,699 for Clover Station Solo.
- $1,799 for Clover Station Duo.
- $3,499 + $34.95 per month for self-ordering kiosk.
» MORE: Best POS systems
Shopify Payments
Best for e-commerce platform integration
NerdWallet rating:
Why we like it: Shopify is a comprehensive e-commerce solution and online payment processing service that helps businesses build online stores, host them and process payments for them, among other functions. For business owners who already use the company for e-commerce, taking advantage of the payments platform makes sense, in part because an additional fee applies if you use an outside processor. Businesses get 24/7 customer support, POS software, fraud analysis, shipping discounts and the ability to sell products in dozens of currencies. Read NerdWallet’s Shopify Payments review.
Monthly POS software fees:
Shopify e-commerce plans:
- $29 for Shopify Basic when billed annually (or $39 when paid monthly).
- $79 for regular Shopify when billed annually (or $105 when paid monthly).
- $299 for Shopify Advanced when billed annually (or $399 when paid monthly).
- Custom pricing for Shopify Plus.
- All e-commerce plans come with POS Lite for selling in-person. Upgrading to POS Pro for brick-and-mortar businesses costs an extra $89 per location.
Shopify’s alternative solutions for mainly selling in-person:
- $5 for Starter plan, which includes one POS Lite location.
- $79 (when billed annually) for Retail plan, or $89 when paid monthly; includes one POS Pro location.
Payment processing fees:
- 2.5%, 2.7% or 2.9% plus 30 cents for online payments for Advanced, Shopify or Basic plan, respectively.
- 2.4%, 2.5% or 2.6% plus 10 cents for in-person payments for Advanced, Shopify or Basic plan, respectively.
Hardware costs:
- $49 for Tap & Chip card reader.
- $219 for Tap & Chip countertop kit (iPad not included).
- $299 for Shopify POS Go mobile device.
- $349 for Shopify POS terminal.
- $459 and up for POS terminal countertop kits.
Chase Payment Solutions
Best direct processor
NerdWallet rating:
Why we like it: Chase Payment Solutions is a direct processor, meaning it operates as both the payment processor and the acquiring bank that establishes the merchant’s bank account. So, this may be a good choice for existing Chase business customers. Additionally, Chase offers 24/7 service and has no monthly fees. It has payment processing solutions for service-based businesses, health care companies, restaurants, retail stores and e-commerce shops. Read NerdWallet’s Chase Payment Solutions review.
Monthly POS software fees: $0, though there may be a monthly fee in some instances.
Payment processing fees:
- 2.6% plus 10 cents for in-person transactions.
- 2.9% plus 25 cents for online transactions.
- 3.5% plus 10 cents for keyed transactions.
Hardware costs:
Chase lists pricing for some products, like its terminals and card reader, but hardware costs aren’t readily available for other options. Instead, you’ll have to fill out an online form for more information.
- $79 for Chase card reader.
- $499 for Chase card terminal.
U.S. Bank Merchant Services: Best for quick deposits
NerdWallet rating:
Why we like it: Similar to Chase Payment Solutions, U.S. Bank Merchant Services offers both bank accounts and payment processing solutions, which makes the payout process convenient. Businesses with a checking account through U.S. Bank can also access same-day deposits for free.
Monthly POS software fees:
- $0 for Mobile plan.
- $15 for Terminal plan.
- $29 for Starter plan.
- $69 for Standard plan.
- $99 for Premium plan.
- $15-$29 for each additional software license.
Payment processing fees:
- 2.6% plus 10 cents for in-person payments.
- 2.9% plus 30 cents for online payments.
- 3.5% plus 15 cents for keyed payments.
Hardware costs:
Sells a variety of hardware including full POS stations, handheld terminals and customer displays. You can purchase hardware outright or rent for a monthly fee. Monthly rental pricing starts at $20 for a handheld terminal plus charger.
Stax
Best for subscription-based pricing
NerdWallet rating:
Why we like it: Instead of charging a percentage markup per transaction, Stax charges businesses interchange plus a fixed amount of money per transaction, plus a monthly subscription fee. Although the $99 per month is steep, it could be worth it for businesses that would otherwise pay more than that in percentage markups. The merchant account provider doesn’t make its clients sign contracts, and its plans include 24/7 customer support (via an online ticketing system) and PCI compliance. Read NerdWallet’s Stax review.
Monthly POS software fees:
- $99 if you process less than $150,000 per year.
- $139 if you process between $150,000 and $250,000 per year.
- $199 and up if you process more than $250,000 per year.
Payment processing fees:
- Interchange plus 8 cents for in-person transactions.
- Interchange plus 15 cents for manually keyed transactions.
Hardware costs:
Quote-based.
Payment processing companies work behind the scenes to facilitate in-person and online card transactions and move funds from the customer's card account to the merchant's account. While there are several steps to this process, it all takes place within a matter of seconds, and fees are typically available to the merchant within a day or two. Payment processors charge a fee for each transaction, and may also require a monthly software subscription.
In addition to their core function, payment processing companies may fulfill additional merchant services by providing POS hardware, POS software and merchant accounts all under the same roof. Most of them also offer invoicing options, fraud protection tools and reporting dashes, in addition to helping to ensure your business is PCI compliant.
Throughout the decision-making process, your small business’s budget should be top of mind. Make sure to calculate and compare processing fees for each payment processing company on your short list of options. In addition to verifying the provider is within your business’s budget, check these other considerations off your list, too.
1. Decide whether you want an individual merchant account or PSP
Dedicated merchant account providers, which set you up with your own account, and payment service providers (PSPs), which pool multiple businesses’ card funds into a shared account, each has its pros and cons.
PSPs, like Square or Stripe, allow your business to start accepting payments almost instantaneously and are convenient all-in-one solutions for businesses just getting up and running. Other payment processing companies, like National Processing, offer payment processing services plus individual merchant accounts. Businesses with individual merchant accounts are less susceptible to account freezes, but the setup and approval process can take longer.
2. Confirm that it works with your POS system
Lots of payment processing companies offer their own in-house POS systems or resell ones from providers like Clover. In fact, there’s quite a bit of overlap between our picks for best POS systems and best payment processing companies. If your business handles in-person sales, make sure your payment processing company offers countertop POS setups, card readers and any other accessories you might need (e.g., barcode scanners, receipt printers).
3. Look for quick deposit times
Deposit timing has a direct impact on your business’s cash flow. Do you need your credit card funds by the next business day or can your business typically wait two full days? Verify how long each of your top payment processing company picks takes to deposit those funds into your business’s bank account where it’s accessible.
4. Make sure it accommodates online and in-person transactions
Your payment processing company should specialize in processing the type of transaction your business confronts most often, whether that’s in-person, online or both. While you can theoretically use separate processors for each transaction type, it can make it significantly more difficult to predict payouts and track processing costs.
5. Check for extra hidden costs
Some payment processing companies charge extra for things like PCI compliance, setup, chargebacks and account terminations. This isn’t necessarily a deal breaker, but ideally, PCI compliance and setup costs are included for free and contracts are month-to-month.
NerdWallet’s editorial team analyzes payment processors across seven categories and more than 30 subcategories by gathering data from company websites, speaking with company representatives and participating in product demos. We fact-check our data points regularly to ensure accuracy.
The category breakdown:
To evaluate overall cost, we consider payment processing fees (for both in-person and online transactions), POS system costs and additional fees for PCI compliance, setup, chargebacks and account termination.
For convenience’s sake, we recommend payment processors that also offer POS software and hardware options in-house.
Payment processors should be able to process a wide variety of payment types and methods including digital wallets, credit and debit cards, invoice and e-commerce transactions. We also consider deposit timing and whether you can opt for same-day deposits.
This applies to processing fees, monthly subscription fees, hardware costs and additional fees for PCI compliance, setup and account termination.
NerdWallet’s evaluation process favors products that directly integrate with your accounting software and offer additional integrations for shopping carts, POS systems, etc.
Payment processors need to offer phone, chat or email support at a minimum. We give extra points to providers with 24/7 support.
Ideally, payment processors have free trials and month-to-month subscriptions. This isn’t a strict requirement, but providers do get dinged if they don’t offer these.
What our star ratings mean
Payment processors with 5 stars are outstanding. They offer competitive in-person and online processing rates, built-in POS system features and free software plans. Plus, they can accommodate a variety of business types.
Payment processors with 4.0 to 4.9 stars are great to excellent. Typically, they have competitive pricing and robust POS features. However, they may have longer-term contracts or fall short when it comes to integrations and/or pricing transparency.
Payment processors with 3.0 to 3.9 stars may be good for specific types of businesses, but typically aren’t a universally great fit. Whereas 4-star processors are lacking in just a few areas, these processors fall short in more categories.
Payment processors with 2.9 stars or fewer don’t offer competitive rates or include the same core POS features that competitors do. We usually don’t recommend these products for small businesses.
Here are some additional options that didn’t make our list, but still have strong ratings and may be a good fit for your business.
- Dharma Merchant Services: 4.5 stars. Dharma Merchant Services is a good interchange-plus option, but charges extra monthly fees for basic features like invoicing and online payment processing. However, it extends reduced interchange-plus rates to nonprofit businesses.
- PaymentCloud: 4.5 stars. PaymentCloud works with low-risk and medium-risk businesses, similar to its competitors, but stands out for accommodating businesses in high-risk industries, like tech support, nutraceuticals, tobacco and CBD.
- Payline: 4.5 stars. Payline is an interchange-plus processor that charges separate monthly subscriptions for online and in-person transactions, which can complicate things for businesses doing both. It’s also not particularly transparent when it comes to POS hardware and software costs. However, unlike some of its competitors, it does offer a one-month free trial.
- Adyen: 4.0 stars. Adyen uses different pricing structures across card types, which can be confusing and make it difficult to predict costs. However, its features are ideal for omnichannel merchants that need to consolidate their payment data across different sales channels and want to give customers a seamless shopping experience, such as the ability to buy online and return in-store.
Last updated on October 23, 2024
Methodology
NerdWallet’s ratings of payment processing providers rewards companies whose products and services are priced well and work in a variety of payment scenarios, among other criteria. Ratings are based on weighted averages of scores in several categories, including overall cost, hardware and software options, system capabilities, customer service, contract requirements and integrations. Learn more about how we rate payment processing providers.
These ratings are a guide, but fees, hardware, software and contract requirements can vary widely from business to business and provider to provider. We encourage you to shop around and compare several providers.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
