Updated April 8, 2022

Best Credit Card Processing for Small Business

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The best credit card processing companies offer transparent pricing, flexible terms, and good features. Here are the top processors for different businesses.

71% of consumers prefer to pay with a debit card or credit card.[1] As a small business owner, it's essential to be able to accept card payments.

The best credit card processing company isn't just about getting the lowest fees. You also need to consider:

  • Your type and size of business
  • What features you need
  • Quality of service

How do you sort through hundreds of companies to pick the best one?

After hundreds of hours of research, we came up with these top 10 credit card processing companies. Whether you're a new business or looking to switch, there's a good fit for you. Read on.

Best Credit Card Processors for Different Businesses:

ProcessorBest For
SquareMobile credit card processing
PayPalAccepting PayPal & Venmo
StripeOnline businesses
CloverPhysical businesses
Payline Data$5k - $10k/month
Stax by Fattmerchant$15,000+/month
Payment Depot By Stax$25,000+/month
National ProcessingRestaurants
HelcimGrowing businesses
PaymentCloudHigh-risk businesses


Before the detailed breakdown, here are our bottom-line recommendations for the best credit card processing companies for different business types.

  • If you're a new or small business with processing less than $5,000 a month, Square is the best option. It has simple flat-rate pricing and you can get set up quickly.

  • If you're a mid-volume business processing up to $15,000 a month, use an interchange-plus provider like Payline Data.

  • If you're a large, high-volume business processing over $15,000 a month, use a subscription-based provider like Payment Depot.

Keep reading to learn more in detail about these companies and our other top picks.

10 Best Credit Card Processing for Small Businesses

© CreditDonkey

1. Square

Best for: new businesses; small mobile businesses

  • Simple flat-rate pricing with no extra fees
  • Fast and easy to get started
  • Free mobile swipe reader
  • Great app with lots of features
  • Account holds and freezes
  • Poor customer service
  • Not for high-risk businesses

With a free mobile card reader and simple flat-rate fees, Square is an easy and affordable option for new businesses. There's no approval process, so you can start accepting credit cards right away.

There is no contract or monthly fees. You only pay for what you process. If you don't have any sales that month, you don't pay anything. You can stop and go at any time.

That makes Square ideal for mobile shops or small businesses with sporadic sales (such as food trucks, seasonal sellers, market vendors, coffee shops, etc.).

Square also offers one of the best mobile POS apps with tons of features to help you run your business. Straight from the app, you can:

  • Accept swipe, chip, and contactless payments
  • Accept payments offline without Wi-Fi connection
  • Send custom invoices
  • Add tax and tip
  • Set discounts and issue refunds
  • Set installment plan for customers, but you're paid upfront
  • Manage customer database
  • Track employees and inventory
  • Get detailed reports and sales trends

Square pricing:[2]

Swipe, chip, tap 2.6% + 10¢
Online 2.9% + 30¢
Manual keyed-in 3.5% + 15¢

There are no other hidden fees. All accounts get a free virtual terminal, payment gateway, and online store. Square has no chargeback fees either.

The downside is that the processing fees can be high, especially if you have very small average ticket sizes. If your sales are usually $10, that's $0.36 in fees.

Square is an ideal entry-level option for new businesses. But as your business grows, you'll want to switch to a provider with a different pricing model (which we'll cover later on).

Square is a third-party payment services provider. This means you don't get your own dedicated merchant account. This makes it faster to get started, but there are some downsides, like frozen funds. Learn more in our detailed guide on Square vs. merchant accounts.

2. PayPal

Best for: small businesses that want to accept PayPal

  • Accept PayPal & Venmo in-person and online
  • Fast and easy to get started
  • No contract
  • Cheaper in-person processing rates
  • Higher online processing rates
  • Account holds and freezes
  • Extra fees for additional features

PayPal offers the best range of payment options to customers. You can accept all major cards, digital wallets, PayPal, and Venmo. With hundreds of millions of PayPal and Venmo users, it can be a big advantage to offer that payment method for customers.

PayPal is incredibly easy to set up. You can use it with most major ecommerce platforms. Within minutes, you can install a free online checkout button on your site.

If you take in-person payments, it offers a PayPal Zettle POS app that lets you take cards on your smartphone. You can even accept PayPal and Venmo payments via QR code scan.

If you have another POS that works better for your business, PayPal integrates with several partner point of sale systems. It integrates with Lightspeed, Revel, Vend, Touch Bistro, and more.

PayPal pricing:[3]

Swipe, chip, tap 2.29% + $0.09
QR code transactions ($10.01 and above) 1.90% + $0.10
QR code transactions ($10 and under) 2.40% + $0.05
Online credit & debit 2.99% + $0.49
PayPal Checkout3.49% + $0.49
Manual keyed-in3.49% + $0.09
Virtual terminal3.09% + $0.09

PayPal also offers some special transaction rates for these types of businesses:
  • Nonprofits (online websites): 1.99% + $0.49
  • Micropayments plan: 4.99% + $0.09

Compared to Square, PayPal offers lower transaction rates for in-person payments (especially for QR code transactions over $10). But for online transactions, the rate is higher, though you do get the benefit of accepting PayPal and Venmo.

If you want to accept payments over the phone, the virtual terminal is only available under the PayPal Pro plan and costs $30/month. Recurring payments for subscriptions is an extra $10/month.

PayPal used to offer the PayPal Here POS app and card reader. But that is no longer available to new merchants. Existing users can still continue to use it, along with the 2.7% per-swipe processing rate. New merchants can only sign up for PayPal Zettle.

3. Stripe

Best for: online businesses looking for advanced customization

  • Advanced customization options
  • 450+ platforms and extensions
  • Accepts international cards
  • 24/7 support via phone, chat, and email
  • Need a developer to make use of tools
  • 2-day funding time
  • Account holds and freezes

Stripe is the most powerful processor for online businesses. It has a strong focus on technology. It's known for advanced API tools that allow for complete customization of your checkout experience. But you'd have to have a developer to make use of them.

Stripe is a good choice for subscription services, in-app purchases, online platforms, and B2B businesses. It may be too much if you just need basic checkout buttons. Look into PayPal or Shopify instead.

Some of Stripe's features include:

  • Integrates with dozens of online shopping carts
  • Supports 135+ currencies and dozens of global payment options
  • Hundreds of apps and extensions
  • Stripe Billing for recurring billing and invoices: you can set trial periods, tiered pricing, and usage-based pricing
  • Stripe Connect for marketplaces and platforms: sellers can create their own accounts and get paid by customers

Stripe pricing:[4]

Online 2.9% + 30¢
International payments Additional 1%

Stripe also offers in-person processing for 2.7% + 5¢ per swipe. So it could also be good if you're a mostly online business that occasionally sells in-person.

Larger businesses can talk with Stripe to get a custom interchange-plus pricing.

Did you know? Stripe users include Lyft, DoorDash, Slack, Instacart, and Booking.com.

4. Clover

Best for: physical businesses looking for a customized POS solution

  • Powerful POS
  • Customization
  • Flexibility to choose your provider
  • Monthly software fee
  • Expensive equipment

Clover has one of the most powerful point of sale systems. It offers POS systems for retail and restaurants. Both have robust features and you can customize it with hundreds of app integrations.

You've probably seen the beautiful, sleek Clover equipment. All their devices come fully integrated with the POS. However, the equipment prices are on the higher end.

Clover works a little differently. You can either get a direct processing plan through Clover itself. Or get Clover equipment through a reseller. So you have more flexibility to choose the right credit card processor for you.

With either option, you need to be approved for a merchant account, so it's better for more established businesses.

Some popular Clover resellers include Dharma, Payment Depot, and National Processing. We'll go over each of those in the sections below.

Clover pricing:[5]

If you purchase a plan through Clover directly, you get flat rate pricing:

Swipe, chip, tap starts at 2.6% + $0.10
Keyed-in transactions 3.5% + $0.10
Basic POS software fee$9.95/mo
Advanced POS software fee$39.95 - $69.95/mo

The pricing depends on which Clover equipment you get. For Clover Mini and below, you get the standard swipe rate. If you get the Clover register, that comes with a more advanced POS and reduced processing fees.

If you get Clover through a reseller, the provider will determine the credit card processing rate, other fees, and contract terms. For example, if you get it through Dharma, they have lower rates.

But no matter where, you still have to pay the monthly Clover POS software fee.

Is Square or Clover better? Square is better for indie sellers and small businesses looking for a quick, cheap way to process credit card payments. Clover is better for small to medium retailers and restaurants looking for a more customized POS solution and better rates. Read more in our detailed Square vs Clover comparison guide.

5. Payline Data

Best for: businesses that process $5k - $10k per month

  • Transparent interchange-plus pricing
  • No early termination fees
  • Works with smaller businesses
  • Free one-month trial
  • Fees for extra features
  • Online rates more expensive than others
  • $25 monthly minimum

We're now getting into the full-service merchant accounts. Once you're seeing steady sales, switching to a merchant account with an interchange-plus pricing structure will help you save more.

Traditional merchant account providers usually work with more established businesses, but Payline Data accepts smaller businesses. So it's a good choice if you're still growing your sales.

Payline Data has no contract and no termination fees. It offers a one-month free trial, so you can try it out first.

Payline Data pricing:[6]

Swipe, chip, tap Interchange + 0.2% + $0.10; $10/mo
Online Interchange + 0.40% + $0.20; $20/mo

Payline's pricing is not the cheapest you'll find (especially for online), but it does work with smaller businesses processing just a few thousand a month. And compared to flat-fee structures like Square, it comes out to be cheaper.

It also has several add-on fees. A virtual terminal will cost $10/month. Recurring billing is $29.95/month, which is expensive compared to other processing companies.

There is a $25 monthly minimum. That means if you didn't have enough sales to add up to this minimum, you'll still be charged $25.

6. Dharma Merchant Services

Best for: businesses processing over $10k per month

  • Low interchange-plus pricing
  • No early termination fees
  • Gives back to charity
  • 2-day funding time
  • Usually only works with larger businesses
  • $49 account closure fee

Dharma charges some of the lowest credit card processing rates on the market. Compared to Payline, they offer lower processing fees. But they generally only work with larger businesses processing over $10,000 a month.

All accounts get the MX Merchant payment gateway, which also includes a virtual terminal, mobile processing, customer database, and reporting tools. It integrates with most major shopping carts.

Dharma pricing:[7]

Storefront Interchange + 0.15% + $0.08
Restaurants Interchange + 0.15% + $0.08
Online Interchange + 0.20% + $0.11[8]
Monthly fee$25 per month

Processing AMEX cards has a slightly higher markup. Dharma's fee for AMEX is 0.25% + $0.08 for in-person and 0.30% + $0.11 for online transactions.[9]

There are some fees for additional features. Invoicing and recurring billing is $10/month, and processing ACH transfers is $25/month. Other fees are clearly displayed on the website.

For very large businesses with over $100k/month in sales volume, Dharma offers a further discount.

Dharma is also known as a socially conscious company. Each year, it gives back to nonprofit organizations in the categories of social justice, education, environment, health, and animal welfare.

7. Stax by Fattmerchant

Best for: businesses that process over $15k per month

  • No per-transaction markup
  • No early termination fees
  • Robust platform
  • Extra add-on fees
  • Not for smaller businesses

For larger businesses, a subscription-based company like Stax by Fattmerchant will help you save more. You pay a monthly subscription fee, plus direct interchange costs on your transaction. There is no mark-ups on your transactions, so that makes up for the high monthly fees.

One big advantage is the robust Stax Pay payments platform. It's an all-in-one solution to help you run your business. Some features include:

  • Monitor and reconcile payments, refunds, and deposits
  • Invoicing and recurring billing
  • Inventory and customer management
  • Assign employee roles and permissions
  • Advanced analytics tools
  • Access monthly processing statements
  • Integrates with business apps like QuickBooks Online, Slack, Facebook Ads, Mailchimp and more

Fattmerchant even offers developer APIs to create your own custom shopping cart solution on your website, app, or software.

Stax Pricing:[10]

Growth Plan $99 per month
Pro Plan $159 per month
Ultimate Plan $199 per month
Per transaction costInterchange + $0.00

The lower tier doesn't include features like invoicing, recurring billing, and storing cards on file. Those can be added on for an extra cost if you need those features. Payment gateway also has an additional fee.

If you process over $500,000 annually, you can get a custom rate.

8. Payment Depot By Stax

Best for: businesses that process over $25k per month

  • Low transaction fees
  • No early termination fees
  • Different plans for different sized businesses
  • Next day funding
  • 20% restocking fee for returned equipment
  • Not for smaller businesses
  • Doesn't work with high-risk businesses

Payment Depot is another subscription-based provider. Payment Depot only accepts merchants with $15,000 average gross monthly revenue.

Payment Depot offers 3 pricing plans with different processing limits, so you can choose the best fit. You can switch plans at any time as your business fluctuates.

It only charges a small fixed per-transaction fee for all payment methods, regardless of whether you're taking credit cards in person or online.

Payment Depot pricing:[11]

Starter (process up to $125k/year) $59/mo
Starter Plus (process up to $250k/year) $79/mo
Growth (process up to $500k/year) $99/mo

Payment Depot qualifications: You must be in business for at least 6 months, have an average of $15,000 in gross monthly revenue over the last 3 months, and have a personal FICO credit score of 500.

9. National Processing

Best for: restaurants

  • Low interchange-plus or subscription rates
  • No contract
  • Next day funding
  • Conditions to waive termination fee
  • Cancellation fee if you were given free equipment
  • May have software fees

National Processing offers a low interchange-plus pricing for small businesses. Larger businesses can switch to subscription pricing with a lower markup rate.

The interchange-plus rate is especially good for restaurants. No other merchant services provider competes with National's restaurant rate.

National pricing:[12]

Interchange-Plus (For small-medium businesses)
Retail Interchange + 0.18% + $0.10
Restaurants Interchange + 0.14% + $0.07
eCommerce Interchange + 0.29% + $0.15
Non-profit Interchange + 0.12% + $0.06
Monthly fee$9.95
Membership Plans(For large businesses)
Subscription$59/mo; Interchange + $0.09
Subscription Plus$199/mo; Interchange + $0.05

The only thing to watch out for is their free equipment deal. This may require a contract with an early cancellation fee. If you don't want to be tied down in any way, it's best to have your own equipment. Or, they offer a range of sleek Clover products for purchase.

There may also be some undisclosed software fees. You'll have to talk to a rep to get more details.

National Processing doesn't have a contract, but there are some conditions to waive the termination fee. You must have a lower competitor quote in writing. If National cannot match or beat the offer, then they won't charge you a termination fee.

For merchants processing at least $10,000 per month, National Processing has a promise that if they can't beat your current processing rates, they'll give you a $500 Visa gift card.

10. Helcim

Best for: businesses wanting a provider to grow with them

  • Robust merchant tools
  • No monthly fees
  • Volume discounts
  • Highly praised customer service
  • Only one equipment option
  • Doesn't work with high-risk businesses

Helcim offers one of the best set of tools for merchants. All Helcim users get full access to their merchant tools for free. This includes online ordering site, virtual terminal, invoicing, recurring billing, customer self-service portal, and more.

It lets even new businesses set up a dedicated merchant account. As your monthly processing volume increases, you get lower rates. So it's a great choice for growing businesses that don't want to keep on switching processors.

The only downside is that Helcim offers only one equipment option. It only has a mobile card reader that's also meant to double as a countertop terminal. More robust operations may find that's not enough.

Helcim pricing:[13]
Here are Helcim's markup fees over the standard Interchange rates:

Monthly Processing VolumeIn-personOnline & Keyed
$0 - $25,0000.30% + $0.080.50% + $0.25
$25,001 - $50,0000.25% + $0.070.45% + $0.20
$50,001 - $100,0000.20% + $0.070.40% + $0.20
$100,001 - $250,0000.18% + $0.060.35% + $0.15
$250,001 - $1,000,0000.15% + $0.060.30% + $0.15
$1,000,001 - $5,000,0000.12% + $0.050.25% + $0.10
$5,000,0001 and more0.10% + $0.050.20% + $0.10

Helcim's processing fees are not the lowest. But all their merchant tools are available at no extra cost.

With the great tools, transparency, and one of the best customer service, you may still find that Helcim has strong overall value despite the slightly higher processing fee.

11. PaymentCloud

Best for: high-risk businesses

  • Specializes in high-risk processing
  • Free rate review
  • Dedicated account manager
  • Fees not disclosed on website

High-risk businesses often have a hard time finding a credit card processor. A lot won't work with them because of the higher risk of fraud and/or failure.

PaymentCloud has developed a strong reputation for specializing in high-risk merchants. Whether you're in a risky industry or previously had a failed business, a dedicated, experienced staff will work with your unique needs. They leverage their 10+ banking relationships to help you find the right fit.

But the processing fees aren't disclosed on the website. You'll need to speak with a rep to get a personalized quote. Note that high-risk processing usually has higher rates and account fees. You may even have to agree to a long term contract.

High-risk doesn't just mean sketchy industries. Even businesses like memberships, electronics, financial services, web design services, and those with large average ticket size can be considered high risk.

How Much Credit Card Processing Costs

It can be hard to understand just how much credit card processing costs in real terms. To give you an idea, here is what you can expect to pay for a single transaction for the different companies.

Processing costs for a $20 transaction:

Company In-personOnline
Square $0.62 $0.88
PayPal $0.55 $1.08
Stripe $0.59 $0.88
Payline Data $0.57 $0.77
Dharma $0.54 $0.64
Stax by Fattmerchant $0.43 $0.49
Payment Depot $0.58 $0.64
National Processing $0.57 $0.70

Processing costs for a $100 transaction:

Company In-personOnline
Square $2.70 $3.20
PayPal $2.38 $3.48
Stripe $2.75 $3.20
Payline Data $2.05 $2.65
Dharma $1.98 $2.36
Stax by Fattmerchant $1.75 $2.05
Payment Depot $1.90 $2.20
National Processing $2.03 $2.49

Processing costs based on a Visa Rewards Traditional credit card (based on interchange rates as of 12/14/21).

Of course, don't only compare the processing costs per transaction. Also consider the monthly fees and other account fees. For example, Stax has the lowest per-transaction cost, but the monthly fee starts at $99/mo. So it may not work for smaller volume businesses.

How We Chose the Best Credit Card Processors

To find the best credit card processing companies, we first considered the different types of businesses out there. New businesses have different needs than established companies. Online startups have different needs than retail.

Once we established different business categories, we compared processing companies to find the best fit for that category. We looked at these factors:

  • Competitive pricing
  • Transparency
  • No contract
  • Setup and ease of use
  • Good, well-rounded features
  • PCI compliance

We finally narrowed down the list by picking companies with the best balance of fees against features offered (except for PaymentCloud for high-risk processing, since rates depend on your unique situation).

How much does your business process per month?
60% Under $5,000 per month
40% More than $5,000 per month
Source: CreditDonkey poll, May 19, 2022

What Is Credit Card Processing?

Credit card processing allows you to accept credit and debit cards from customers. But you can't do that on your own, so you need the help of a payment processor.

A processing company offers the equipment, technology, and services required to accept credit card payments. It acts as a middleman between you (the merchant), the banks, and your customers.

The main services include:

  1. Accepting and processing credit card and debit card payments, as well as other forms of electronic payments.

  2. Providing the necessary hardware and software for processing, such as card readers, POS, payment gateways (for online payments), and virtual terminal.

  3. Maintaining PCI compliance to protect your customers' credit card data.

  4. Providing online tools to keep track of transactions, monitor employees and inventory, manage customer data, see sales trends, and more.

Merchant Account vs. Payment Services Provider

The first step is to decide which kind of company you want to use. This mostly depends on how new your business is. The two options are:

1. Merchant account provider
Merchant account providers are a full-service credit card processor. You get a unique merchant ID number and a dedicated merchant account just for your business.

These types of accounts require underwriting to approve you as a client. They will thoroughly review your business to determine how risky you are. Oftentimes, they only want to work with established businesses with a history of steady sales.

Merchant accounts usually offer lower processing costs, better account stability, and better customer support.

2. Payment service provider (PSP)
Payment service providers (like Square) are the simpler option. You don't get your own merchant account ID. Instead, your transactions are processed together with many other businesses into one huge shared merchant account.

These providers don't have a lengthy application process. You just sign yourself up and can get started right away. Thus, they're better for new and micro-businesses.

But because of the simplicity, the processing fees are higher. Your account will also be more closely watched afterwards. Account holds and freezes are more common if they think a transaction seems suspicious.

How Much Does Credit Card Processing Cost?

In general, you can expect the overall cost to be 2.5% - 3.5% of your processing volume. This means if you have $10,000 in credit card sales each month, your processing fees will be $250 - $350.

Your total credit card processing fees includes several components:

  • Interchange fee: Interchange fees are paid to the credit card companies / card issuing banks (like Chase, Bank of America, etc.) to cover operation costs and risk. These make up the major bulk of your processing fees.

    See the detailed breakdown of the current interchange fees.

  • Assessment fee: These are paid to the credit card networks (Visa, Mastercard, Discover, and Amex) for using their card brands.

  • Processor fee: These are fees your processing company charges. This is the commission they get for each transaction, plus any fees for services and features.

Interchange and assessment fees are set by the card associations.[14][15] They're the same no matter which credit card processing service you use. So when shopping around, you only need to compare the processor fees.

What to Look for In a Processing Company

To find the right credit card payment processor for you, don't only look at the cost. You want to find a provider with the best processing fees while providing the services you need.

Here are some main things to look for when comparing companies.

Pricing Structure for Your Size Business

It's important to get the right pricing model for your business. Most credit card processing services specialize in one type of pricing, so that helps narrow down your search right away.

Choose the right company for your needs right now. Of course, we all hope our business grows over time. When you've outgrown it, you can switch to another company that fits better with your new situation.

It will depend on your monthly transaction volume:

  • New or small business (under $5,000/month):
    It's best to get started with a payment services provider with a flat-rate pricing model, like Square or PayPal. There's no approval process, so you can take credit card sales right away.

    The downside is that all the fees are blended together, so you don't really know how much the provider is charging. The fees tend to be higher in exchange for the simplicity and convenience.

  • Low to mid-volume sales (up to $15,000/month):
    If you have steady sales between $5k and $15k per month, a merchant account provider with interchange-plus pricing model (like Payline Data) will allow you to save more.

    In interchange-plus, the interchange fees are clearly separated from the provider markups. So you know exactly how much the provider is charging. It's also easier to compare companies.

  • Large business (over $15,000/month):
    For high volume businesses, you'll save the most with subscription pricing, like Stax or Payment Depot. The processor markups are very low, so your savings will more than justify the membership fee.

If a provider offers tiered pricing, stay away. This structure is the most confusing and can come out to the highest rates.

Other Account Fees

Every dollar matters to small business owners. Besides just looking at the transaction fees, pay attention to other account fees and miscellaneous charges.

You'll want to especially look out for the hidden fees. Watch out for:

  • Account setup fees
  • Monthly fee or annual fee
  • Monthly processing minimum
  • Payment gateway fee
  • Virtual terminal fee
  • PCI compliance fees
  • Chargeback fees
  • Statement fees

A lot of additional fees can increase your overall processing rate. You want to take all the fees into account when comparing payment processors.


Traditionally, merchant accounts required a contract (usually 3 years). But nowadays, a lot of providers have done away with contracts and offer month-to-month billing.

There should be no reason to choose a company with a contract. You should be able to cancel whenever you want with no termination fees.

Payment Methods

Consider all the ways your customers pay:

  • In-person
  • Online
  • Contactless
  • Digital wallets (like Apple Pay or Samsung Pay)
  • PayPal / Venmo
  • Invoicing
  • Auto-recurring payments
  • By phone
  • ACH transfers
  • Global payment options (if you're international)

Make sure the provider supports your payment methods. And see if they charge extra for it. A lot of providers may have an extra fee for virtual terminal, recurring billing feature, and ACH platform.


If you need hardware to process payments, see what options the provider offers, and how much. If you already have your own POS system, see if they're able to reprogram it to work with their POS software.

If the payment processor is offering free equipment, ask in detail what the deal entails. Is there a contract in exchange for free equipment? Or fees when you return the equipment?

We don't recommend leasing equipment (if that's an option). You can end up paying way more over time than if you just bought it outright. Plus, leasing equipment often comes with long term contracts that's hard to break.

Customer Service

Quality of service is super important to your relationship with your processor. You want to be able to get help when you need it.

As you shop for providers, get a sense of how responsive and helpful their support staff is.

Generally, payment service providers have poorer customer service, and mostly rely on self-troubleshooting or email support. Merchant account providers offer better support. You often even get a dedicated account rep.

Is Credit Card Processing Secure?

Security is a big concern since you're handling customers' sensitive credit card data. All businesses that process credit cards must comply with Payment Card Industry Data Security Standards (PCI DSS).

This is a list of security requirements, such as proper encryptions, firewalls, anti-virus software, access controls, and more. The best way to meet these requirements is to work with a PCI-compliant payment processing company.

That means the processing provider takes care of PCI compliance for you. They ensure that their systems and equipment are compliant and up-to-date, so you can process cards securely. The providers on all our lists all include PCI compliance for free.

Another security concern for business owners is fraud. Fraud detection tools (such as CVV and address verification match) can help you prevent fraud so you minimize losses.

Merchants should upgrade to EMV-compliant processing equipment. Visa reports that merchants who upgraded to EMV readers have seen a counterfeit fraud drop by 76% since the U.S. payments industry began the shift to EMV chip.[16]

What Experts Say

CreditDonkey assembled a panel of industry experts to answer readers' most pressing questions:

  • Should business owners pass on credit card fees to customers?
  • How do sellers benefit from allowing customers to use credit cards?
  • What's at risk when business owners accept credit cards?

Here's what they said:

Bottom Line

Ultimately, the best credit card processing for you will mostly depend on your business size.

New businesses have more limited options. It's best to start with a flat-rate payment processing service like Square or PayPal. They're easier to set up and offer simpler, more predictable pricing.

As your business grows, you'll find much cheaper rates with interchange-plus or subscription pricing.

Just like with any product, carefully compare and shop around. Get a few quotes from different companies. Make sure you get a full disclosure of all the potential fees. This way, you can compare which one offers the best overall value.


  1. ^ FRBSF, 2020 Findings from the Diary of Consumer Payment Choice, Retrieved 6/7/2021
  2. ^ Square Pricing, Retrieved 12/9/2021
  3. ^ PayPal Merchant Fees, Retrieved 12/9/2021
  4. ^ Stripe Pricing, Retrieved 12/9/2021
  5. ^ Clover Pricing, Retrieved 4/30/2022
  6. ^ Payline Pricing & Processing Fees, Retrieved 12/9/2021
  7. ^ Dharma Merchant Services Rates, Retrieved 12/9/2021
  8. ^ Dharma Merchant Services. Virtual & Online Rates, Retrieved 5/3/2022
  9. ^ Dharma Merchant Services. American Express OptBlue, Retrieved 5/3/2022
  10. ^ Fattmerchant Plans & Pricing, Retrieved 11/11/2021
  11. ^ Payment Depot Pricing Plans, Retrieved 5/3/2022
  12. ^ National Processing Pricing, Retrieved 12/9/2021
  13. ^ Helcim Pricing & Fees, Retrieved 4/30/2022
  14. ^ Visa. Visa USA Interchange Reimbursement Fees, Retrieved 4/8/2022
  15. ^ Mastercard. Mastercard 2021–2022 U.S. Region Interchange Programs and Rates, Retrieved 4/8/2022
  16. ^ Visa. Chip technology helps reduce counterfeit fraud by 76 percent, Retrieved 4/8/2022

Anna G is a contributing writer at CreditDonkey, a credit card processing comparison and reviews website. Write to Anna G at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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