10 best credit card processing services for small business in 2024

Ah, growing a small business. Is anything more of a combination of a complete dream come true and total nightmare of decision making?
One of those decisions? Figuring out if you’re  ready to diversify your accepted forms of payment to include credit cards. If that’s you, it’s time to consider a crucial question: What credit card processing service is best for your small business?
With a wealth of options at your fingertips (pun intended), choosing the right credit card processor is no easy feat. Maybe you need to prioritize lower fees over stellar customer service, or maybe your main concern is ease-of-use. Whatever you’re thinking, you have to navigate this tough decision alone. 
To help you make an informed decision—and ease your overwhelm—we’ve put together a list of 10 trustworthy credit card processing services and pinpointed how they’ll benefit your small business. 
Let’s dive in!






What is credit card processing?
The credit card transaction process may seem complicated at first glance, but let us break it down to clear up any confusion: Credit card processing is the system that enables small businesses to accept credit card payments from their customers. 
This system involves the authorization and transfer of funds between a customer’s issuing bank and a business’s merchant bank to complete a sale. As the merchant, you partner with a credit card processor to take payments in-person, online, or over the phone.
Though it seems like a simple enough transaction completed millions of times a day, there are a number of key participants that play a role in this process, including:

Cardholder 
Credit card
Merchant (that’s you!) 
Point-of-sale system 
Issuing bank
Acquiring bank
Merchant services provider

What to look for in a small business credit card processor
It’s easy to get lost in the weeds when sorting out which credit card processing service will check all the most important boxes for your small business. With so many factors to consider, we’ve expanded on a few key points to help you cut a clear path forward—and take control of the decision-making process. 
Processing fees
Sorry: avoiding these pesky fees is virtually impossible. But while you might be stuck with them, you can do your best to minimize costs and choose a pricing model that meets your needs. Consider the following options:

Flat rate: Provides the most stability and predictability. It’s best suited to small businesses that process less than $5,000 per month. The rate you pay remains consistent across any point of sale, whether online or in-person, and regardless of your customer’s credit card brand. 
Interchange plus: Best for businesses that process a high volume of credit card payments, because the processor’s fee is often lower in exchange. Along with paying a flat fee per transaction, you also pay a varying percentage of the transaction that matches the amount charged by the processor.
Membership or tiered pricing: Requires a monthly subscription fee and a higher level of commitment. It’s not the best option if you want to test the waters with some different processors before deciding. Companies that charge higher subscription fees may offer lower processing fees, which means you’ll need to evaluate your business’s sales volume before determining if this’ll save you money in the long run.

Cost
Credit card processors can tack on a number of extra fees that drive up the cost, so watch out for:

Transaction fees: Varies depending on the card type and payment method (in-person or online). They typically range from 1% to 4% on the cost of the sale, plus an extra fee of up to 50 cents.
Service fees:  A monthly or annual subscription fee to use the service, as well as fees for PCI Compliance .
Setup and/or termination fees:  If you require a point-of-sale (POS) system for your business, the processor may charge for install, setup, and termination.
Incidentals: One-time fees for situations like chargebacks, insufficient funds, or special verification services. 





Tip : To cut down on credit card processing costs, try charging a convenience fee, raising your prices slightly, or setting a minimum purchase amount.




Contracts
As a small business owner, especially if you’re just starting out, it’s important to keep your options open in case your partnership with a credit card processor goes awry. Try to avoid companies that lock you into annual contracts and charge high fees for cancelation. Instead, opt for more flexible agreements that offer month-to-month contracts, or have no subscription requirement and no early termination fees. 
Customer service
It’s important to consider the level of customer service you’ll want, from live phone support, bot text chats, or email communication. Also pay attention to hours of service, especially if your business hours are atypical and require 24/7 support. 
Integrations
If you plan to use a credit card processor’s POS software, make sure it integrates seamlessly with your accounting system and any additional tools your small business may use, like e-commerce software or online shopping carts.
Equipment
Depending on your type of business, you may need customer-facing hardware like a credit card reader and POS system, or a virtual terminal for online transactions. Keep in mind that buying the system outright will be cheaper than leasing it over time. 
The best credit card processing for small businesses
When deciding on the best credit card processing service for your small business, consider how your needs match with factors like competitive and transparent rates, comprehensive customer service, timeline to accessing funds, accessibility, and flexibility. 
1. Square : Best for mobile payments
This processor is widely-used among small business owners because of its affordable price point and user-friendly system. It’s an appealing option for businesses on the go, like pop-up shops or market vendors, because of its free credit card reader that connects to smartphones and free POS app. If this doesn’t sound like your jam, check out the 10 Best Square Alternatives .
Monthly fee: Starting at $0 for unlimited devices and locations.
Payment processing fees:

In-person – 2.6% plus 10 cents
Online – 2.9% plus 30 cents
Keyed-in – 3.5% plus 15 cents

Pros: 

Free to start with no setup or chargeback fees
Basic plan offers no monthly fees
AI-powered features like a menu generator, image creator, and content generator
Integration with e-commerce platforms and many other third-party apps
Instant access to funds for a 1.5% fee

Cons:

24/7 customer support is only available for paid subscribers
Not cost-effective for businesses with high-volume transactions
Incompatible with Windows devices
Not available to all industries

2.  Helcim : Best for high monthly sales
Known for its transparent and flexible pricing model, Helcim is a great option for small businesses looking to expand sales while minimizing overhead. They charge a margin over their interchange rate based on a sliding scale. As your processing volume increases, this margin decreases—rewarding your business’s growth. 
Monthly fee: None.
Payment processing fees:

In-person – 1.76% plus 8 cents
Online and Keyed-in – 2.39% plus 25 cents

Pros: 

Free software for merchants
No contracts or hidden fees
Low interchange fees for each credit card type
Free PCI Compliance
Seamlessly syncs with Quickbooks Online and Xero to simplify financial management

Cons:

No option for same-day deposit
Not cost-effective for businesses with low-volume transactions
Limited hardware offerings
Not available to all industries

3.  Stripe : Best online credit card processing for small businesses
With a global payment system accepting over 135 currencies, Stripe is ideal for e-commerce businesses of any size. After a quick and easy setup, you’ll be ready to accept online payments immediately. 
Monthly fee: Starting at $0.
Payment processing fees:

In-person – 2.7% plus 5 cents
Online – 2.9% plus 30 cents

Pros: 

No monthly or setup fees
Option for instant payouts for 1% fee
Advanced reporting and fraud protection tools
24/7 phone, chat, and email support
Seamlessly syncs with Quickbooks Online

Cons:

Extra cost for hardware and POS software
Advanced features require technical knowledge
Not available to all industries

4. Shopify : Best for Shopify ecommerce users
Shopify Payments offers a range of subscription options for businesses of all sizes that fully integrate with their e-commerce platform, point-of-sale system, and payment processing services. Those with Shopify stores can easily streamline their sales and transactions.
M onthly fee: $5 for Starter plan and up to $289 for Advanced plan.
Payment processing fees:

In-person – 2.6% plus 10 cents
Online – 2.9% plus 30 cents

Pros: 

Accepts a wide variety of payment methods and currencies
Competitive and transparent transaction rates
Customizable checkout page
Automatic setup with Shopify stores

Cons:

Monthly plan is required
Only available in select countries
Extra fee for use of third-party payment gateway

5. Clover : Best credit card processing for international payments
With versatile payment options and fully integrated POS hardware and software, this processor is ideal for retailers, restaurants, and field service businesses . 
Monthly fee: $9.95 and up.
Payment processing fees:

In-person – 2.3% plus 10 cents
Online – 3.5% plus 10 cents

Pros: 

POS integrates with its mobile app and virtual terminal
Predictable transaction fees
24/7 customer support
Integrates with Quickbooks Online and Xero

Cons:

Most expensive online processing fees
Only available in select countries
Added costs: monthly platform and application fee

6. Stax : Cheapest credit card processing for small businesses
Stax has a flat-rate subscription model that’s ideal for businesses with a sales volume of over $5,000 per month because of the 0% markup on interchange fees, plus a low fixed fee per transaction. They offer several subscription tiers without locking customers into iron-clad contracts. 
Monthly fee: $99 and up.
Payment processing fees:

In-person – 0% plus 8 cents
Online – 0% plus 15 cents

Pros: 

Transparent and reliable pricing
0% markup on top of interchange fees
Option for same-day payouts for 1% fee
24/7 in-house customer support
Lowest-tier plan includes a free terminal or mobile reader

Cons:

Low-volume sales will result in higher cost
Limited integration options for lower tier subscriptions
Minimum 48-hour setup time

7.  PaymentCloud : Best for high-risk businesses
With a 98% approval rate and free, hands-on assistance with achieving PCI compliance and resolving issues efficiently, PaymentCloud is the top choice for industries considered high-risk like firearms, marijuana, and debt collection. 
Monthly fee: Ranging from $0 to $50.
Payment processing fees: From 2.4% plus 10 cents to 3.5% plus 25 cents.
Pros: 

Highly tailored contracts
Free hardware for the duration of the contract
Free, same-day e-commerce setup
QuickBooks Online integration

Cons:

Pricing is not available online
Approvals can take a long time
Early termination fee

8.  Gravity Payments : Best customer service
While Gravity Payments doesn’t disclose their rates on their website—their pricing plans are tailored to each individual business—their comprehensive customer service makes up for their lack of cost transparency. Offering 24/7 support via phone, email, or contact form in multiple languages lets you choose your form of preferred communication. 
Monthly fee: Provided through custom quotes.
Payment processing fees: 2.5% plus 10 cents (this rate may vary). 
Pros: 

Highly tailored pricing plans
Accommodates in-person, online, or on-the-go transactions
Fast onboarding process
Receive payment in 24 hours

Cons:

Pricing isn’t available online
Binding 3-year contracts
Extra cost for hardware

9.  Toast : Best for tip management
Toast is a point-of-sale system built specifically for restaurant use that boasts automated tip distribution to minimize errors. With a wide range of online ordering tools, you’ll be able to accept, manage, and track food orders from multiple locations, and in a variety of ways, including through in-store kiosks and their app. 
Monthly fee: $0 for Starter Kit and up.
Payment processing fees:

2.49% plus 15 cents if you buy hardware upfront
3.09% plus 15 cents for pay-as-you-go

Pros: 

Sturdy, spill-resistant hardware
Free plan offers up to 2 POS terminals
Integration with their payroll and team management software
Seamless tip management solution

Cons:

Requires a 2-year contract with early termination fees
Pricy payment processing fees
Extra charges for setup

10.  eHopper : Best for micro businesses
This all-in-one POS and payment processor designed specifically for retail and restaurants is known for its affordable pricing and free processing for US-based customers through a cash discount or credit surcharge. The free plan is ideal for small businesses that process under 300 transactions per month. 
Monthly fee: From $0 to $35.99.
Payment processing fees: None.
Pros: 

User-friendly system
Month-to-month plans available
Free processing, software, and credit card terminal
You can use your own hardware

Cons:

No customer support with free plan
Extra cost for hardware
Processing fees are passed on to customers

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