Best Credit Card Processors of 2024 If you're a small business looking for a credit card processor, check out these top brands.
By Jason Fell
Today, debit and credit cards account for 60% of consumer purchases in the United States ― a number that keeps growing year after year. That means choosing the right credit card processor is critical for small businesses. But with so many options, choosing the best processor for your business's needs can be difficult. In our rankings, we prioritized processors with low rates, flexibility, transparency and strong customer support. This guide will provide you with details on pricing, features, contracts and how these processors compare.
What is credit card processing?
Credit card processing refers to the series of steps for transferring funds from a customer's bank account to a merchant's account when a purchase is made with a debit or credit card. Although the process appears simple from the customer's standpoint, behind the scenes it involves multiple financial institutions. The credit card processor acts as an intermediary, facilitating the transaction by verifying security, routing transactions, clearing funds, and more.
Comparison chart.
| Credit card processing company | Best use case | Rates | Monthly fee | Time to deposit |
|---|---|---|---|---|
| Merchant One | Flexible Pricing | 0.29% - 1.99% | $6.95 | Within 2 business days |
| ProMerchant | High-risk businesses | custom | none | Within 2 business days |
| Clover | POS hardware | 2.3% - 3.5% | $14.95 - $290 | Same day |
| Stax | High revenue businesses | none | $99 - $199 | Same day |
| Payment Depot | Low fees | none | $59 - $99 | Within 2 business days |
| Helcim | Fast growing businesses | 1.94% - 2.51% | none | Within 2 business days |
| Chase Merchant Services | Data Analytics | 2.6% - 3.5% | none | Within 2 business days |
| PayPal | Ecommerce | 1.9% - 3.49% | none | Within 2 business days |
The best picks for credit card processing.
Read on for more in-depth reviews of the top credit card processors for small businesses.
Clover: Best for point-of-sale (POS) hardware.
Score: 4.5/5
Pros
- Clover provides a range of pricing options tailored to different business types for its POS system and credit card processing, offering you flexibility and choices.
- Unlike some competitors, Clover's subscription plans don't charge per-employee charges.
- Clover's POS hardware is developed in-house, with various device types available for purchase.
Cons
- Clover charges monthly subscription fees and its hardware comes with a higher price tag compared with other alternatives.
- For high-volume businesses, Clover's processing fees might make the service less cost-effective than competitors.
- Clover's software is not compatible with third-party devices.
In our assessment, Clover comes out way ahead of the pack when it comes to hardware offerings. Clover's POS device options include card readers, terminals, handheld devices, and full-service registers. Indeed, many rival credit card processors offer Clover devices to pair with their own software, which we think speaks to the quality of the company's products.
Additionally, we found that Clover's POS software serves as the ideal complement to its hardware. Besides the basics of accepting credit cards, the software boasts features for processing returns, sending digital receipts, managing inventory, generating reports and much more. We particularly liked Clover's customer management and marketing tools, which allow you to build loyalty programs and offer deals for customers. Clover also offers a feature for automatically enrolling customers in short message service marketing, which is an effective method for capturing attention in our mobile-first world.
Another impressive fact: Clover integrates with more than 500 third-party apps ― much more than other credit card processors we reviewed. A few examples include QuickBooks, Xero, Gusto, and ADP as well as Instagram, Facebook, Amazon, and Etsy. Processing rates range from 2.3% to 3.5%, plus 10 cents per transaction.
Merchant One: Best for flexible pricing.
Score: 4.5/5
Pros
- Merchant One's pricing model offers flexible rates and comes with complimentary equipment.
- While many credit card processors score poorly on support, Merchant One stands out with highly rated customer service.
- Merchant One approves 98% of applicants and is willing to work with a variety of businesses.
Cons
- Merchant One doesn't offer hardware, so you will need another provider for your equipment needs.
- You must sign a three-year contract, with a possible fee for early termination.
- Merchant One does not offer a mobile app.
Our favorite part about Merchant One is that it doesn't take a one-size-fits-all approach when it comes to pricing. Instead, it creates a customized pricing plan tailored to each business's needs. For that reason, Merchant One is a bit less transparent about how much it charges, but the potential to save money makes up for that. Depending on your business's size and type, you may pay anywhere from 0.29% to 1.99% in transaction fees.
Merchant One also charges a low monthly subscription fee of $6.95 a month, which is much lower than other processors we reviewed for this list. Even with an annual membership fee of $99, you still come out ahead in terms of fees.
Another fun fact: Merchant One integrates with more than 175 online shopping carts and 300 third-party business apps. These include QuickBooks, Salesforce, Zoho, and HubSpot. We also liked that Merchant One features an open application programming interface, which allows tech-savvy businesses to create customer integrations.
ProMerchant: Best for high-risk businesses.
Score: 4/5
Pros
- ProMerchant offers a fair deal for businesses that would otherwise struggle to find a credit card processor.
- ProMerchant stands out from most competitors with highly rated customer support.
- The online application is easy to fill out and equipment is sent out immediately via overnight mail.
Cons
- ProMerchant relies on third-party providers for its software and hardware.
- The software lacks some of the bells and whistles of competitors.
- ProMerchant does not offer a mobile app.
High-risk businesses often get the short end of the stick when it comes to credit cards. Businesses in controversial industries such as firearms, cannabis, and alcohol face strict regulations and constant lawsuits. Others such as travel-related businesses generate inconsistent revenue and are seasonal in nature. For those reasons, most credit card processors won't work with them.
That's where ProMerchant comes in. We were pleasantly surprised that the company is willing to work with any type of business, including customers with low credit scores. The online application takes a few minutes to fill out and you will receive a response within 24 hours. We also liked that Merchant One offers highly rated customer support, including a dedicated account representative. You can contact the company 24/7 by phone or email ― a rarity for any business services provider in this day and age.
Stax: Best for high-revenue businesses.
Score: 4.5/5
Pros
- Stax's credit card processing software is compatible with many different POS hardware options.
- With a pure subscription-based model, the company doesn't take a cut of your business's revenue.
- The Stax Pay mobile app allows businesses to accept credit card payments via a mobile device.
Cons
- Stax doesn't offer its own POS hardware; you need to work with another vendor for your equipment needs.
- Under some circumstances, Stax charges additional fees on top of the monthly subscription costs.
- Lower-volume businesses may find Stax's monthly subscription fees more burdensome than necessary.
What we love the most about Stax is that it doesn't take a percentage of the transaction. Instead, it only changes a monthly subscription fee that ranges from $99 to $199 per month, as well as a small flat transaction fee of 8 cents to 15 cents.
Other helpful features include the Stax Pay mobile app, which can be paired with a mobile card reader to accept payments on the go. Although Stax doesn't manufacture its own POS hardware, its software is compatible with a variety of POS systems. Stax sells equipment "close to cost," including Dejavoo and Clover devices.
Payment Depot: Best for low fees.
Score: 4/5
Pros
- Payment Depot's membership-based pricing model doesn't take a cut of your revenue.
- The company offers a variety of pricing options to suit businesses of all sizes.
- Services are offered on a month-to-month basis, with no cancellation fee.
Cons
- Lower-volume businesses may not see much financial benefit from Payment Depot's pricing model.
- Payment Depot relies on third-party vendors for its user-facing software and hardware.
- Payment Depot doesn't work with high-risk businesses.
Payment Depot is like the Costco of credit card processors. For a monthly subscription fee, you gain access to low-cost credit card processing services. For high-volume or low-margin businesses, it can be particularly advantageous to work with a processor that doesn't take a cut of your revenue. Payment Depot's plans range from $59 to $99 per month, plus a small transaction fee of between 7 cents and 15 cents. These are among the lowest costs of all the processors that we reviewed, making Payment Depot our best pick for low transaction fees.
Payment Depot works with a third-party software provider called SwipeSimple, with the latter providing useful features, such as a virtual terminal and mobile app. Customers can also choose from a variety of POS hardware options, including devices from Clover, Dejavoo, First Data, Poynt, SwipeSimple, and Vital Select.
Chase: Best for data analytics.
Score: 4/5
Pros
- Business owners can glean valuable insights from Chase's credit card data.
- Chase features fast payouts and syncs with other financial services.
- For healthcare businesses, Chase Payment Solutions presents a Health Insurance Portability and Accountability Act (HIPAA)-compliant path to process transactions.
Cons
- Chase's credit card processing rates are more expensive than many of its competitors.
- Accepting free equipment comes with the potential downside of an early termination fee.
- Some user interfaces (UIs) on the software come off as a bit outdated.
Chase Business Solutions is a data junkie's dream. As one of the nation's largest banks and credit card issuers, Chase has more than 4 million customers. The company makes its vast treasure trove of data available to its payment customers, allowing business owners to pull credit card statistics on customer purchasing. What we find so compelling is that you can pull your target customer's demographic data, including age, income, and gender. You can also drill down into the minutiae, such as when and where customers tend to purchase similar products.
Chase is also the only credit card processor we evaluated that offers HIPAA-compliant payment services. The InstaMed software provides in-office payments, in addition to online payments and statements. For business owners who bank with Chase, no-fee, same-day deposits are possible via Chase QuickAccept. Chase's fees are 2.6% plus 10 cents for in-person transactions, 2.9% plus 25 cents for online transactions, and 3.5% plus 10 cents for keyed-in transactions.
Helcim: Best for fast-growing businesses.
Score: 4.5/5
Pros
- Helcim's all-inclusive platform boasts an intuitive UI equipped with user-friendly tools.
- For omnichannel businesses, Helcim provides a wide range of payment options.
- Helcim does not require contracts or monthly subscription fees.
Cons
- Helcim doesn't offer free hardware.
- The POS hardware does not offer some of the bells and whistles of some alternatives.
- Helcim's interchange-plus pricing model charges higher rates than other processors.
Fast-growing businesses need a credit card processor that can scale. That's why Helcim's all-in-one platform works well. In addition to credit card processing, the company offers a POS system, billing features and other finance tools. One feature that we like is the ability to build a hosted online store, complete with shopping cart, discount codes, shipping integrations, content management system, theme editor, search engine optimization tools, restaurant menus, and much more.
Best of all? It's free. You only need to pay interchange-plus credit card processing rates, which stay constant throughout the life of your business. Helcim charges 1.94% plus 8 cents for transactions made on a physical Helcim terminal and 2.51% plus 25 cents for e-commerce sales, online invoice payments, and transactions keyed into the virtual terminal. We also like that Helcim's software can be run on any compatible third-party device. That flexibility allows you to choose the most appropriate POS hardware as your business grows.
PayPal: Best for e-commerce.
Score: 3.5/5
Pros
- Customers widely recognize and trust the PayPal brand.
- For e-commerce businesses, PayPal provides a plug-and-play solution for accepting payments.
- PayPal provides a variety of ways for customers to send money.
Cons
- PayPal is primarily geared towards online and internet-based businesses.
- Fees can get high for some types of transactions.
- Frozen accounts are a persistent complaint among PayPal customers.
When it comes to processing online transactions, there's no better brand name than PayPal. It is practically synonymous with e-commerce and trusted payments. By installing a PayPal-affiliated "Pay Now" button on your website, you can start accepting credit card payments immediately. Aside from its flagship payment portal, PayPal offers customers the ability to send money via email, quick response code transactions and more.
Beyond merely processing credit cards, PayPal also offers free POS software, online invoicing and integration with a range of business apps, such as QuickBooks, Xero, TouchBistro, Shopify, and more. PayPal does not require contracts or monthly fees, although the optional PayPal Payments Pro service allows you to accept payments without customers leaving your site.
Credit card processing cost.
Paying for credit card processing is much different than paying for other types of business services. Most credit card processors use either interchange-plus pricing or flat-rate processing (and often, some combination of both).
With interchange-plus pricing, the credit card processor takes a small percentage of each sale plus a small, fixed fee. The percentage of the transaction can range from a low of around 0.29% to a high of 3.5% or more. The fixed fee, meanwhile, can be as low as a few cents to as high as 25 cents or more. Although these fees allow small merchants with a pay-as-you-go model with no upfront costs, it's important to keep in mind how taking a cut of your sales will impact your profits over the long term.
Flat-rate pricing involves charging a fixed monthly subscription fee for unlimited credit card transactions. With this model, you don't need to worry about the credit card processor taking a cut of your revenue. The downside is that the monthly fees can be onerous for a small business just getting off the ground. Among the credit card processors that we reviewed, flat-rate prices range from $59 to $199 monthly. Typically, these processors also charge high fixed fees on a per-transaction basis.
Some credit card processors also charge incidental fees or other types of recurring fees. These can include Payment Card Industry compliance fees, payment gateway fees, network fees, monthly minimum fees and statement fees. We advise business owners to carefully review the terms of service before agreeing to work with any processor.
Keep in mind that you also need specialized POS hardware to accept credit cards by swipe, tap or chip. Some credit card processors offer free hardware, although this often requires you to enter into a contract with the company. A few processors offer their own proprietary POS equipment for sale while others rely on equipment from third-party vendors.
How to choose a credit card processor.
There are a number of steps to take when deciding how to choose a credit card processor. In addition to speaking with credit card processors about their service, there are some additional actions you should be taking.
Conduct market research.
After determining your budget and which processing pricing model works best, research the processors that fit your basic criteria. Use online guides (like this one) to compare and contrast different options. Leverage user reviews and customer comments on third-party review sites and the Better Business Bureau website.
Assess your business needs.
The cost of credit card processing isn't always straightforward. A lot depends on the size and maturity of your business. A high-volume or low-margin business will likely lean toward a processor with lower processing rates while a new or low-volume business might prefer a processor with lower fixed rates. Make a list of which features you need or desire from a credit card processor, as many vendors are geared toward different types of businesses.
Determine your hardware requirements.
If you run a brick-and-mortar business, you need a POS device for accepting credit card payments in person. Equipment options include mobile readers, handheld terminals and full-service registers. Online businesses may be able to get by with just a virtual terminal or ecommerce shopping cart. Some processors provide free equipment while others offer the equipment for sale separately.
Test out the software with demos.
Be sure to avail yourself of any free trials or demos. Many software vendors provide up to four-week free trials of their services while others offer demo versions. You may also ask a representative to walk you through the product and answer any questions you have.
Evaluate offers.
Many credit card processors provide customized pricing based on the size and type of your business. Look over these quotes carefully and be sure to inquire about any incidental or recurring fees. Keep in mind that contracts for free equipment often include early termination fees.
Methodology
During our research to identify the best credit card processors for small businesses, we went through available demos and free trials, examined materials on corporate websites, and combed through user reviews. When possible, we interviewed representatives from the credit card processing companies and tested the customer service line. We also reviewed terms and conditions, with particular attention to rates and fees. Furthermore, we analyzed available hardware offerings as well as features, such as virtual terminals, mobile apps and payment options.
Credit card processing FAQs
How does credit card processing work behind the scenes?
When a customer inserts a credit card into a merchant's card reader, it sets off a series of data transfers that ultimately lead to the debiting of money from the cardholder's account and the crediting of funds to the merchant's bank account. This data goes through the terminal, establishing a secure connection with the processor, the credit card network, the bank that issued the customer's credit card, and the merchant's bank.
Should you lease credit card processing equipment?
Leasing equipment is highly lucrative for credit card processors. Representatives often provide convincing justifications for leasing, such as likening it to a cell phone plan or citing tax benefits. Despite these arguments, it's crucial to thoroughly explore all alternatives before committing to equipment leases as opting for this route is generally one of the least advisable decisions for small businesses.
What is an authorization hold?
Authorization holds stem from the banking practice of temporarily suspending electronic transactions until the merchant confirms the payment as settled. If the settlement doesn't occur within the timeframe specified by the cardholder's bank, it disappears from the account automatically.
While an authorization hold may persist for up to 30 days, American Express cards have a seven-day limit and Discover cards have a 10-day limit. Merchants failing to finalize a transaction hold within the designated time may face a misuse fee imposed by the credit card processor.
How long does credit card settlement take?
Settlement time differs across credit card processors. The specific type of merchant account will dictate whether it takes as little as 24 hours or a maximum of three days.
