Credit card processing companies often have different pricing structures. That means there's no cheapest provider for all businesses. But certain factors can help you identify the least expensive choice for you. Your sales volume, typical transaction size and how you process payments (in-person, online or both) are the most important.
Here are our top picks for the cheapest credit card processing companies. We've also included why they stand out and what type of business they’re best for.
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Cheapest Credit Card Processing Companies for Small Businesses
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Input your business’s monthly transaction details and we’ll help you sort from the best valueCheapest Credit Card Processing Companies for Small Businesses
Product | 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 High-volume businesses | 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 |
Square Learn more on Square's secure website | 5.0/5 Best 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 Built-in banking partner | In-person: 2.6% + $0.10 Online: 2.9% + $0.25 | $0.00 for in-person payments; $9.95 and up for e-commerce payments. | Learn more on Chase Payment Solutions℠'s secure website | ||
Stripe Learn more on Stripe Payments' secure website | 5.0/5 Best for Online businesses | In-person: 2.7% + $0.05 Online: 2.9% + $0.30 | $0.00 | Learn more on Stripe Payments' secure website | ||
Payment Depot Learn more on Payment Depot's secure website | 4.0/5 Best for Tailored interchange-plus rates | 0.2% + $0.00 to 1.95%, plus interchange. | $0.00 | Learn more on Payment Depot's secure website | ||
National Processing Learn more on National Processing's secure website | 4.8/5 Best for Free terminal | 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 | ||
Finix Learn more on Finix's secure website | 4.5/5 Best for Subscription-based pricing | In-person: 0% + $0.08 Online: 0% + $0.15 Plus interchange | $79.00 and up. | Learn more on Finix's secure website | ||
PayPal Zettle | 4.1/5 Best for Accepting QR code payments | In-person: 2.29% + $0.09 Online: 3.49% + $0.09 | $0.00 |
| Product | Best for | Payment processing fees | Monthly fee | Learn more |
|---|---|---|---|---|
Helcim Learn more on Helcim's secure website | Best for High-volume businesses | In-person: 0.4% + $0.08 Online: 0.5% + $0.25 Plus interchange | $0.00 | Learn more on Helcim's secure website |
Square Learn more on Square's secure website | Best 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 Built-in banking partner | In-person: 2.6% + $0.10 Online: 2.9% + $0.25 | $0.00 for in-person payments; $9.95 and up for e-commerce payments. | Learn more on Chase Payment Solutions℠'s secure website |
Stripe Learn more on Stripe Payments' secure website | Best for Online businesses | In-person: 2.7% + $0.05 Online: 2.9% + $0.30 | $0.00 | Learn more on Stripe Payments' secure website |
Payment Depot Learn more on Payment Depot's secure website | Best for Tailored interchange-plus rates | 0.2% + $0.00 to 1.95%, plus interchange. | $0.00 | Learn more on Payment Depot's secure website |
National Processing Learn more on National Processing's secure website | Best for Free terminal | 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 |
Finix Learn more on Finix's secure website | 4.5/5 Best for Subscription-based pricing | In-person: 0% + $0.08 Online: 0% + $0.15 Plus interchange | $79.00 and up. | Learn more on Finix's secure website |
PayPal Zettle | Best for Accepting QR code payments | In-person: 2.29% + $0.09 Online: 3.49% + $0.09 | $0.00 |
Our pick for
High-volume businesses
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.
Pros
- Businesses save when customers use cards with low interchange rates.
- Offers free POS software.
- Offers volume-based discounts automatically.
- No termination fees, long-term contracts or PCI compliance fees.
Cons
- Deposits are available within two business days; same-day deposit option is not available.
- Interchange-plus costs can be difficult to predict.
Our pick 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.
Square's simple, flat-rate pricing structure is clearly displayed on its website, making it easy for business owners to predict costs and compare options. It’s a great pick for small e-commerce businesses and physical storefronts alike, but its free mobile card reader makes it an especially low-cost option for on-the-go businesses that accept payments using a smartphone app.
Pros
- Offers a free mobile card reader and free POS software plan.
- Can subscribe to related services, such as payroll, that integrate with its POS system.
- No termination fees or long-term contracts.
- No chargeback or PCI compliance fees.
Cons
- Complex businesses might prefer a processor that integrates with more specialized POS systems.
Our pick for
Built-in banking partner
Chase Payment Solutions℠
4.5
NerdWallet rating Learn more
on Chase Payment Solutions℠'s secure website
Monthly fee
$0.00
for in-person payments; $9.95 and up for e-commerce payments.
Chase Payment Solutions offers a familiar name and top-of-the-line technology, but limited hardware options and the company’s reseller program could make alternatives better options for some businesses.
Pros
- Two-in-one processor and acquiring bank.
- No PCI compliance or cancellation fees.
- Using your bank as your processor makes deposits convenient.
- 24/7 phone and online support.
Cons
- Some hardware pricing is not readily available.
- No third-party shopping cart integrations.
- Chase’s Business Complete checking account comes with a $15 monthly service fee for some merchants.
Our pick for
Online businesses
Stripe
Learn more
on Stripe Payments' secure website
Monthly fee
$0.00
Online businesses can integrate Stripe with their e-commerce platform to create a unique checkout experience for customers. If you want a simpler solution that doesn't require as much customization, Stripe offers prebuilt payment forms, a product referred to as Stripe Checkout, that can be embedded into websites. Stripe also gives merchants global reach, accommodating online sales in more than 195 countries.
Pros
- Highly customizable online checkout options.
- No termination fees or long-term contracts.
- 24/7 chat support.
- Can process transactions in more than 135 currencies.
- No PCI compliance fees.
Cons
- Doesn’t sell full countertop POS setups; hardware is limited to handheld terminals and card readers.
- Deposits can take up to two business days.
- No phone or email support.
Our pick for
Tailored interchange-plus rates
Payment Depot
Learn more
on Payment Depot's secure website
Payment processing fees
0.2% + $0.00
to 1.95%, plus interchange.
Monthly fee
$0.00
Payment Depot is a payment processor owned by Stax, a membership-style payment processing platform. But as opposed to offering monthly subscription pricing like Stax, it uses an interchange-plus pricing model and charges no monthly fee. The margin Payment Depot charges on top of interchange varies, so businesses must reach out directly for specifics.Read full review
Pros
- Businesses save when customers use cards with low interchange rates.
- No cancellation or PCI compliance fees.
- Compatible with several POS hardware providers, including Clover.
- 24/7 phone support.
Cons
- Markups vary by business.
- Website doesn’t disclose hardware pricing.
- Interchange-plus costs can be difficult to predict.
Our pick for
Free terminal
National Processing
Learn more
on National Processing's secure website
Monthly fee
$9.95
for Basic In-Person Package.
National Processing offers competitive rates, useful integrations and compatibility with several card readers. New merchants that meet specific criteria may receive a free terminal when they sign up. The processor also works with high-risk merchants.
Pros
- No termination fees, long-term contracts or PCI compliance fees.
- Works with high-risk merchants.
- New merchants may qualify for a free terminal.
- 24/7 phone support.
- Compatible with multiple POS system providers, including Clover.
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.
- Deposits take 2-3 business days for basic plans.
Our pick for
Subscription-based pricing
Finix
4.5
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.
- No PCI compliance fees.
Cons
- Limited POS hardware options.
- Lacks direct accounting software integrations.
Our pick for
Accepting QR code payments
PayPal Zettle
Monthly fee
$0.00
PayPal Zettle delivers the essentials at a relatively low cost with a small commitment. On top of accepting credit and debit cards (customers can either dip or tap them to the device), Zettle accepts other payment methods like Venmo, PayPal and digital wallets. But consider other options if you want features like customer loyalty and email marketing programs. Although Zettle can expand through hardware, it doesn’t offer plan upgrades or those types of add-ons.Read full review
Pros
- No long-term contract or termination fees.
- Accepts a variety of payment types, including Venmo and PayPal payments.
- Inexpensive card reader with a keypad, plus built-in payment processing and a free mobile app lets you quickly accept in-person payments on the go.
- Low in-person processing fees for a flat-rate processor.
Cons
- Accepting online transactions involves additional monthly fees, depending on your gateway.
- No offline mode.
Helcim
Best for high-volume businesses
Why our editorial team chose it: Helcim is a fantastic choice for small businesses looking for low rates and no monthly subscription fees. Its interchange-plus fee structure is a cost-effective option, especially for businesses with high sales volumes, and its website makes it easy to find pricing information. The company's volume discounts, which are applied automatically as the amount you process increases, are a nice perk to have as your business grows. Read our full Helcim review.
Monthly fee:
$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).
Square
Best for brick-and-mortar businesses
Why our editorial team chose it: With clear, flat-rate pricing, free POS software and a free mobile card reader, Square is one of the cheapest credit card processing solutions, especially for smaller businesses. Businesses can use the payment service provider to accept a variety of payments, including both in-person and online. To process in-person payments, for example, you can use free POS software alongside one of its hardware options. Businesses can also opt for Square's retail POS or Square's restaurant POS software plans to access more features. Square offers Tap to Pay on iPhone and Android, which lets merchants accept card payments using only an iPhone or Android phone with the Square POS app. API integrations let clients accept credit card payments on their website or e-commerce site too. Read our full Square review.
Monthly fee:
- $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.
» MORE: Best POS systems
Stripe
Best for online businesses
Why our editorial team chose it: With transparent, flat-rate pricing and no subscription fees, Stripe is one of the easiest payment processing solutions for online businesses. Although you may find an alternative provider with lower processing fees, it’s difficult to beat the lack of other fees, flexibility and included-payment tools within the company's platform. The payment service provider offers its own invoicing, billing, business data and tax calculation features, too. Read our full Stripe review.
Monthly fee:
- $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.
Finix
Best for subscription-based pricing
Why our editorial team chose it: Unlike some of its competitors, Finix charges a monthly fee in exchange for lower interchange-plus rates. That makes it best for higher-volume small businesses with hefty credit card processing bills. Businesses using Finix also get paired with a dedicated account manager for one-on-one support. The company offers a free trial for NerdWallet users if you’d like to test it out before committing. Read our full Finix review.
Monthly fee:
- $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.
Payment Depot
Best for tailored interchange-plus rates
Why our editorial team chose it: Payment Depot is a merchant account provider owned by Stax. Its interchange-plus model may be best suited to businesses that are looking for ways to save and don’t mind the more complex pricing structure. Read the full Payment Depot review.
Monthly fee:
$0.
Payment processing fees:
0.2%-1.95% plus interchange.
National Processing
Best for free terminal
Why our editorial team chose it: National Processing is a payment processor with competitive rates, useful integrations and compatibility with several card readers. Plus, it works with high-risk merchants. Its long-term contracts are a concern, but every plan includes free reprogramming of existing equipment and some merchants qualify for free hardware. Read our full National Processing review.
Monthly fee:
- $9.95 for Basic In-Person Package, Basic E-Commerce Package.
- $19 and up for Premium 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.
- Premium Package: 2.41% plus 10 cents.
Chase Payment Solutions
Best for built-in banking partner
Why our editorial team chose it: Sometimes it’s convenient to bundle your banking and payment processing services. And in Chase’s case, it can lead to faster deposit times. Businesses with a Chase business checking account have access to free same-day deposits every day but Saturday. Read our full Chase Payment Solutions review.
Monthly fee:
- $0 per month for in-person payments.
- $9.95 per month and up for e-commerce payments.
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 and invoicing.
PayPal Zettle
Best for accepting QR code payments
Why our editorial team chose it: PayPal Zettle’s low card-present transaction rates — which also apply to QR code payments — and free POS app make it an affordable option for service-based businesses and solopreneurs selling at markets or popups. To accept a QR code payment, you enter the sales total into the app, choose PayPal or Venmo as the payment method and ask your customer to scan the QR code that the app generates. Since processing online transactions may involve separate payment gateway subscriptions, it’s not the best choice for businesses making the bulk of their sales online. Read our full PayPal Zettle review.
Monthly fee:
$0.
Payment processing fees:
- 2.29% plus 9 cents for in-person and QR code transactions.
- 3.49% plus 9 cents for manual-entry card transactions.
- 2.99% plus 49 cents for invoicing (payment made with card).
- 3.49% plus 49 cents for invoicing (payment made with PayPal).
To predict your business’s monthly credit card processing fees, start by determining your average card transaction amount and how many card sales you complete each month. From there, you can use this calculation to estimate your monthly credit card processing costs for specific types of transactions (e.g., online, in-person or keyed-in):
[(average credit card transaction dollar amount x transaction percentage fee) + transaction fixed fee] x [number of credit card sales completed per month]
Here’s a breakdown of credit card processing fees, plus other associated costs.
Credit card processing fees
Credit card processing fees vary by provider and which fee structure they use: interchange-plus or flat-rate. Generally, interchange-plus is more transparent and better for high-volume merchants, but flat-rate pricing can be more predictable and easier to understand. Alternatively, some processors may choose to lower their per-transaction fees and charge a monthly fee. On average, though, credit card processing fees range from 1.5% to 3.5% of the total transaction cost.
Hardware and software fees
In terms of hardware, chances are you’ll need to buy credit card readers or a more robust point-of-sale (POS) system for accepting in-person payments. Some companies offer free card readers and others range from around $29 to $59. Card readers with receipt printers or a screen usually cost more. You’ll also need some type of POS software or app to use alongside the hardware. Some basic software plans are free, but prices rise as you seek out additional features like inventory tracking, employee management or in-depth reporting.
If you only need to accept a handful of transactions each day, payment apps let you complete contactless transactions using just your smartphone. That way, you can skip the card reader and save on hardware. However, processing rates vary.
Other fees
Look out for additional fees related to services like PCI compliance, setup, cancellation, funds withdrawal and more. Not all processors are transparent about these added fees, so be sure to read the terms of your contract closely and speak to a representative if anything is unclear.
Learn more about credit card processing fees
Explore ways to offset processing fees and use NerdWallet’s calculator to estimate how much your business should expect to owe.
If you want to offer your customers the option to pay by card, whether in person or online, you will need to pay fees to credit card companies and financial services providers to authorize and complete card transactions. However, carefully weighing credit card processing companies can guide you toward the most cost-effective option.
To find the cheapest credit card processing company for your business, consider the following factors:
Your industry’s perceived level of risk can impact how many payment processors you have to choose from. For example, many credit card processing companies won’t work with high-risk businesses in industries like CBD, credit repair, travel and vitamins. That’s where high-risk payment processors come into play. Risk aside, certain types of businesses, like retail shops and restaurants, might want to work with a credit card processing company that sells POS systems created specifically with their industry needs in mind.
Average transaction size affects how much your processing costs cut into your margins. For example, imagine you run a landscaping company and your average transaction size is $1,000. A flat rate of 2.6% plus $0.10 would cost you $26.10. If you own a cafe, however, and your average transaction size is $5, you’d owe $0.23 cents per transaction, which adds up to $46 in processing fees per $1,000 in sales. This discrepancy illustrates why it’s so important to predict and compare your processing fees across multiple credit card processing companies before committing.
Similar to average transaction size, the number of transactions your business completes each month also impacts your overall credit card processing costs. The cheapest credit card processing company for a business that does $5,000 in transactions per month may not be the best choice for one that completes $100,000 in monthly sales. That being said, higher-volume businesses might be able to negotiate down rates or qualify for volume discounts.
If you want to start accepting card payments immediately, payment service providers, like Square and Stripe, are often good options. They might not offer the absolute lowest rates, but they don’t require you to apply for your own merchant account, which simplifies the process. Oftentimes, there’s a tradeoff between convenience and cost.
While you can’t avoid credit card processing fees altogether, there are several strategies for reducing the burden on your business.
Incentivize customers to pay with cash
Certain credit card processing companies offer credit card surcharge programs that pass some or all of the processing fees to customers who choose to pay with a card instead of cash. If you go this route, be sure to understand your state’s laws around the program. Another option is cash discounts, and unlike credit card surcharging programs, they’re legal in all 50 states. Essentially, cash discount programs extend discounted prices to customers who choose to pay in cash. Customers using a credit card pay the advertised, non-discounted price.
Implement minimum purchase amounts
Paying processing fees on a small transaction amount, like $3, might not be worth it for your business. If that’s the case, consider implementing a minimum credit card purchase amount and require customers to use cash if their receipt total is below the minimum.
Request a volume discount
Some credit card processing companies reduce processing fees as your business’s sales volume grows. Helcim, for example, begins lowering rates once businesses clear $50,000 in credit card transactions each month. Other companies might offer a similar discount but not advertise it as openly. It’s worth reaching out to a representative to ask.
Consider interchange-plus over flat-rate pricing
Interchange-plus pricing passes interchange fees, plus a set markup, to the merchant. This means that the merchant pays less when customers use cards with lower interchange fees. Many times, this pricing model is more cost-efficient, but less predictable, than flat-rate pricing.
Negotiate markups
If you go with an interchange-plus processor, you might be able to negotiate how much they charge on top of interchange fees. Prior to having that conversation, though, make sure you have the figures ( e.g., your monthly processing costs, average transaction amount, how your processor‘s markups compare to competitors) to back up your request.
Make sure your interchange fees align with your industry
When you start accepting credit card payments, your business is assigned a merchant category code based on its industry and what it sells. That code determines your interchange rate, among other factors. If you use an interchange-plus processor that passes fluctuating interchange rates to your business (instead of charging a consistent fee, like flat-rate processors), ensuring your business is assigned the correct code can help guarantee you’re being charged the appropriate interchange fees for your industry type.
Learn more about minimizing credit card fees
Read more about surcharge programs and cash discounting, their pros and cons and which credit card processing companies offer these options.
Last updated on March 6, 2025
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.
