Best Credit Card Processing Companies 2022
This Article is Originally Published on Forbes, Business News Daily, USNews, Investopedia.
It’s practically impossible to do business these days without accepting credit cards, whether in person or online. In order to take credit card payments, however, you will need to use a credit card processing company.
Best Credit Card Processors
- Square: Best for Growing Businesses
- GETTRX: Best for Growing Businesses
- Stripe: Best for Online Businesses
- Helcim: Best for High-Volume Businesses
- Stax: Best for High-Revenue Businesses
- Merchant One: Best for Easy Approval
- PayPal: Best for E-Commerce Businesses
- Clover: Best for New Businesses
- QuickBooks: Best for Online Businesses
Unfortunately, it can be confusing to know which credit card processor is right for your business. Some companies charge a fee per transaction that becomes more affordable as more credit card transactions are processed, while others use flat-rate pricing that can be friendlier to businesses with fewer credit card transactions. Forbes Advisor has researched the best options available to bring you a list of the best credit card processing companies available today.
Best Credit Card Processing Companies
1. Square
Pricing structure
Flat rate
Monthly fee
$0
Processing fees
From 2.6% + $0.10
Square made a name for itself in 2009 by offering small businesses an easy-to-use, all-in-one credit card processing system. The company offers a free mobile credit card reader that plugs into any smartphone or tablet and free point-of-sale (POS) software so you can begin taking mobile credit card payments in minutes.
Square also keeps things simple for business owners with flat fees per transaction for each payment method regardless of the credit card used. Square also doesn’t charge any startup, subscription, refund or PCI compliance fees. Funds from transactions are available in one to two business days, or instantly for a 1.5% fee per transfer.
- In-person payments: 2.6% + $0.10 per transaction
- Online payments: 2.9% + $0.30 per transaction
- Keyed-in payments: 3.5% + $0.15 per transaction
Square also offers register and payment hardware for retailers, restaurants and more to help businesses scale and grow, as well as loyalty, appointment scheduling and inventory software. The company offers a variety of online video tutorials and live phone support Monday through Friday from 8 a.m. to 5 p.m. PT.
Who should use it. Small businesses looking for fast and easy set up and payment processing. Learn More
Square made a name for itself in 2009 by offering small businesses an easy-to-use, all-in-one credit card processing system. The company offers a free mobile credit card reader that plugs into any smartphone or tablet and free point-of-sale (POS) software so you can begin taking mobile credit card payments in minutes.
Square also keeps things simple for business owners with flat fees per transaction for each payment method regardless of the credit card used. Square also doesn’t charge any startup, subscription, refund or PCI compliance fees. Funds from transactions are available in one to two business days, or instantly for a 1.5% fee per transfer.
- In-person payments: 2.6% + $0.10 per transaction
- Online payments: 2.9% + $0.30 per transaction
- Keyed-in payments: 3.5% + $0.15 per transaction
Square also offers register and payment hardware for retailers, restaurants and more to help businesses scale and grow, as well as loyalty, appointment scheduling and inventory software. The company offers a variety of online video tutorials and live phone support Monday through Friday from 8 a.m. to 5 p.m. PT.
Who should use it. Small businesses looking for fast and easy set up and payment processing.
Small businesses don’t always remain small; some need a credit card processor that can grow with them. Square stands out in that regard because of its low rates, a free e-commerce app, and point-of-sale (POS) software that expands to support expanding businesses’ needs, making it our best pick for growing businesses.
Pro’s & Con’s
- Free mobile card reader
- Fast set up
- No monthly fees
- 24/7 support not available
- Limited hardware compatibility
- Pricey for high-volume businesses
With Square credit processing, you can accept all major credit cards and most internationally-issued cards, including:
- Visa
- Mastercard
- American Express
- Discover
- JCB
- UnionPay
- Consumer credit cards
- Business credit cards
- Debit cards
- Prepaid cards
2. GETTRX
GETTRX powered by Global Electronic Technology, Inc. is a premier financial technology platform provider. We provide businesses high-quality financial solutions including credit card, debit card, online check processing systems, and next-generation payment engines.
Whether your business accepts payments in-person, online, or needs the capability to split a transaction between multiple entities on your platform, we have the right solution for you. GETTRX serves both low-risk and high-risk merchants.
Based in Torrance, CA, GETTRX has over a quarter century of expertise in the payment processing industry. The GETTRX team is committed to setting the standard by delivering the most advanced technological packages in payment processing, which makes our team one of the most knowledgeable in the industry.
GETTRX is also committed to pioneering new business opportunities for owners by delivering daily data that can improve a company’s competitive position in the marketplace. Our vision and technical prowess is reflected in GETTRX’s vigilant focus on innovative solutions for the payments processing of today and tomorrow. With solutions for every business at the best rates GETTRX will help save your business money.
Eliminate 100% of your
processing fees
Only $29 Per Month
- Zero Processing Fees for all
card types - Free Processing Equipment
- 24/7 US Customer Service and Tech Support
- Fast Approval
GETTRX ZERO is a cash discount program that will include the below 4 products:
Terminals/POS
- Smart & Mobile Terminals
- POS & mPOS
- Countertops & PIN Pads
- Cash Discount Program Signage
Subscriptions
- Manage recurring plans and customers via our Portal and APIs
- Automatically update customers’ expired or renewed card numbers
- Flexible retry options to reduce declined payments
Invoicing
- Invoicing dashboard with simplified interface, no coding required
- Manage, create, view, send and download invoices.
- Customize your invoices with your logo, contact info, product details, discounts, line items, tax rates, and more.
- Send invoices in minutes via email, SMS or using a shared link to the GETTRX-hosted invoice page.
- Accept payments through credit or debit, directly through the invoice.
- Compatible with the GETTRX Zero cash discount program
3. Stripe
Pricing structure
Flat rate
Monthly fee
$0
Processing fees
From 2.7% + $0.05
Founded in 2011, just two years after Square, Stripe quickly became the go-to payment processor for online merchants. Like Square, Stripe uses a flat-rate fee structure but with slightly lower rates per transaction for in-person and keyed-in credit card payments.
- In-person payments: 2.7% + $0.05 per transaction
- Online payments: 2.9% + $0.30 per transaction
- Keyed-in payments: 2.9% + $0.30 per transaction
Best For:
- Online businesses
- Customers who want a highly customizable experience
- International businesses
Not Recommended For:
- Customers who aren’t tech-savvy or don’t have easy access to a developer
- Small businesses focused on in-person sales
- Companies offering services that fall under Stripe’s restricted list
Stripe outshines its competitors in terms of online payments since it accepts all types of mobile wallets, including Apple Pay and Google Pay and popular international wallets like Alipay and WeChat Pay. Stripe also lets merchants accept payments or recurring charges with ACH debit, ACH credit or wire transfers for an 0.8% fee (capped at $5).
The company also offers its own credit card readers that integrate with popular e-commerce and accounting software, including Shopify, WooCommerce and Xero. Payouts are typically available within two days but you can also choose instant payouts for an additional 1% ($0.50 minimum). Stripe also offers 24/7 email, chat and phone support.
Who should use it. Small businesses that want to take a variety of credit card and mobile wallet payments.
Pros & Cons
- Accepts mobile wallet payments
- Instant payouts available
- Transparent pricing structure
- Requires some tech savvy
- Less robust in-person transaction
- Pricier for high transaction volumes
4. Helcim
Pricing structure
Flat rate
Monthly fee
$0
Processing fees
From 0.10% + $0.05
Launched in 2006, Helcim offers flat-rate credit card processing fees with no setup, monthly or cancellation fees. The company also offers monthly volume discounts so that businesses that process more each month will pay less per transaction.
- $0 to $25,000: In person: 0.30% + $0.08; keyed or online: 0.50% + $0.25
- $25,001 to $50,000: In person: 0.25% + $0.07; keyed or online: 0.45% + $0.20
- $50,001 to $100,000: In person: 0.20% + $0.07; keyed or online: 0.40% + $0.20
- $100,001 to $250,000: In person: 0.18% + $0.06; keyed or online: 0.35% + $0.15
- $5,000,000+: In person: 0.10% + $0.05; keyed or online: 0.20% + $0.10
Helcim offers a ton of flexibility to both online and brick-and-mortar merchants with a variety of built-in tools, including a POS, online store, customer relationship manager (CRM) and even an online food ordering tool. Helcim also integrates with dozens of popular accounting software, billing systems and shopping carts, and sells card readers that work on nearly any device.
*Helcim posts its rates and fees on its website.
*The monthly fee includes PCI compliance, virtual terminal access and an online store.
*Some competitors offer lower online processing rates.
A Helcim account takes only minutes to set up and payouts are available in one to two days. Although the company doesn’t offer a live chat option, it does offer phone and email customer support along with a comprehensive online self-service portal.
Helcim is an option for businesses that process more than $5,000 per month and want better rates than what flat-rate plans offer. We selected Helcim because it provides interchange-plus pricing to all of its merchants and posts its complete rates and fees on its website, so you know exactly how much you’ll pay. Helcim has low rates as well as volume-based discounts, and it’s one of the few companies with a rate lock that guarantees its margin won’t increase over the life of your account. The amount a business pays varies based on sales volume and transaction types. As sales increase, the cost margin decreases.
Who should use it. Businesses that want a payment processor offering integrated customer and inventory management software.
Pros & Cons
- Transparent payment structure
- Volume-based discounts
- Built-in sales and CRM tools
- Limited hardware options
- Pricey for low-volume businesses
- No live chat
5. Stax
Pricing structure
Subscription
Monthly fee
From $99
Processing fees
$0.08 per swipe; $0.15 per keyed-in transaction
Formerly Fattmerchant, Stax is a payment processing company that offers a rare subscription-based model with a flat fee per transaction and no markup on interchange rates. A subscription starts at $99 per month based on the volume of transactions, and fees are set at a flat rate of $0.08 per swipe and $0.15 per keyed-in transaction.
Stax also offers several software packages ranging from $49 to $129 per month that include dashboards, reporting and ACH processing, as well as invoicing, Text2Pay and advanced reporting and support. Customers can also choose from several add-ons, including a one-click shopping cart, QuickBooks Online Pro Sync and same-day funding.
Stax also sells its own customizable countertop terminals and can seamlessly integrate its software with other terminals as well as most POS systems and other business tools. The company also offers 24/7 access to its online knowledge base; phone, email and live chat support right from the Stax Platform, and concierge service with its higher-cost packages.
Who should use it. Businesses that prefer flat pricing structures.
Pros & Cons
- No markup on interchange fees
- Offers virtual POS terminals
- Integrated sales and invoicing tools
- High subscription price
- Pricey for low-volume businesses
- Most software integrations cost extra
6. Merchant One
Pricing structure
Subscription
Monthly fee
$6.95
Processing fees
0.29% to 1.99%
Established in 2001, Merchant One offers the lowest subscription pricing we’ve come across so far at $6.95 per month. Depending on your business type, however, you can get swiped transaction rates between 0.29% and 1.55% and keyed-in transaction rates between 0.29% and 1.99%.
Every business, even if it has a low credit score, needs to be capable of processing credit cards. Merchant One seems to understand this, because it’s one of the best credit card processors for easy approval. The average approval time is 24 hours, so business owners don’t have to worry about the delays for new-applicant approval that can occur with other credit card processors.
Merchant One also offers a variety of hardware products through its partnership with Clover, including mobile card readers, terminals and POS systems. Prices are not listed, so you will need to call to get a quote. However, when you do, you will get a dedicated account representative who will walk you through setting up your account every step of the way.
*Merchant One offers extremely fast approval.
*There are no PCI fees for new customers.
*Termination fees may apply ($295 per remaining year in the contract).
Who should use it. Businesses looking for low monthly pricing and 24/7 customer support.
Pros & Cons
- Low monthly fee
- Lots of hardware options
- Dedicated account manager
- Not all fees disclosed online
- Must call for a quote and pricing
- No online knowledge base
7. PayPal
Pricing structure
Flat rate
Monthly fee
$0
Processing fees
From 2.29% + $0.09
Established in 1998, PayPal quickly became known as that platform anyone could use to send money to anyone else just using an email address. PayPal charges no monthly fees to merchants, instead relying on a simple interchange-plus pricing model.
- In-person payments: 2.29% + $0.09 per transaction
- Online (credit card): 2.99% + $0.49 per transaction
- Online (PayPal): 3.49% + $0.49 per transaction
- Keyed-in payments: 3% + $0.30 per transaction
Setting up a PayPal merchant account takes just minutes and you can start selling right away. PayPal offers some of the most flexibility in terms of payments, allowing customers to pay with their PayPal and Venmo accounts, QR codes, subscriptions and recurring payments, and even cryptocurrency.
PayPal holds many PCI compliance certifications, including the Mastercard Site Data Protection Program and Visa Cardholder Information Security Program.
With PayPal, you can accept all major credit and debit cards, including:
- Visa
- Mastercard
- American Express
- Discover
- PayPal
- Venmo
- PayPal credit cards
PayPal also offers a variety of card readers and terminals integrated with the Zettle POS system. Additionally, Zettle integrates with many e-commerce, accounting and other POS apps, including QuickBooks, BigCommerce and WooCommerce.
Who should use it. Small businesses with low monthly sales that want a simple credit card processing solution.
Pros & Cons
- No contracts or monthly fees
- Easy set up
- Wide range of payment options
- No 24/7 phone support
- Higher fees than some competitors
- Best for low-volume businesses
8. Clover
Pricing structure
Subscription
Monthly fee
$9.95 to $69.95
Processing fees
From 2.3% + $0.10
Founded in 2011, Clover is another popular credit card processing company for small retailers and restaurants, similar to Square. Both offer easy-to-use POS software, native hardware options and integrated payment processing.
Clover uses subscription pricing plus flat fees rather than Square’s simpler flat-fee pricing model. Clover’s Register Lite plan starts at $9.95 per month with a 2.7% + $0.10 fee for in-person payments and a 3.5% + $0.10 fee for keyed-in payments, and is best suited for businesses with less than $50,000 in annual credit card transactions.
Clover’s Register plan costs $39.95 per month with a 2.3% + $0.10 fee for in-person payments and a 3.5% + $0.10 fee for keyed-in payments. This plan is best for businesses with more than $50,000 in annual credit card transactions as well as restaurants since it includes credit card pre-authorizations for reservations, table management and adding gratuities to checks.
*Clover has flat-rate pricing.
*It offers month-to-month contracts.
*With Clover, First Data is your merchant acquirer.
Clover provides access to funds within one to three business days but claims that most funds are available the next day. The company also allows you to return any device within 60 days and provides 24/7 phone, email and chat support.
Who should use it. Small foodservice businesses looking for an all-in-one POS, register system and credit card payment processor.
Pros & Cons
- Competitive transaction fees
- 24/7 customer support
- No cancellation fees
- Monthly fee per device
- Daily limit on instant transfers
- POS only works with Clover merchant account
9. QuickBooks Payments
Pricing structure
Flat fee
Monthly fee
$25 to $50
Processing fees
From 2.4%
You probably already know Intuit’s popular QuickBooks accounting software. The company also offers its own credit card processing service called QuickBooks Payments that integrates seamlessly with its accounting and invoicing platforms.
Intuit QuickBooks Payments — Best Supporting Business Software
Best For:
- Companies that want to take payments with a mobile app or card reader
- Businesses looking for customizable, credit card-payable invoices
- Those already using QuickBooks for accounting
Not Recommended For:
- Business owners needing 24/7 phone support
- Companies in high-risk industries or concerned about chargebacks
- Businesses looking to avoid monthly fees
Although there is no monthly fee to use QuickBooks Payments, you will need to have a QuickBooks Online account, which costs either $25 or $50 per month depending on the plan.
- In-person payments: 2.4% + $0.25 per transaction
- Invoiced: 2.9% + $0.25 per transaction
- Keyed-in payments: 3.4% + $0.25 per transaction
- ACH bank payments: 1% ($10 maximum per transaction)
Alternatively, if you have the QuickBooks Desktop software ($299.99 to $1,275 per year), you can either choose a $0 per month pay-as-you-go plan or a $20 per month subscription for lower fees.
Pay as you go
- In-person payments: 2.4% + $0.30 per transaction
- Invoiced: 3.5% + $0.30 per transaction
- Keyed-in payments: 3.5% + $0.30 per transaction
- ACH bank payments: $3
Pay monthly
- In-person payments: 1.6% + $0.30 per transaction
- Invoiced: 3.3% + $0.30 per transaction
- Keyed-in payments: 3.3% + $0.30 per transaction
- ACH bank payments: $3
Although QuickBooks Payments’ fees are lower than Square’s, the company does charge a $25 chargeback fee and doesn’t offer a free card reader with a new account. The service offers a mobile payment app, reconciles with QuickBooks accounting software and supports invoicing, e-commerce payments and makes deposited funds available the next day.
Who should use it. Existing Intuit or QuickBooks customers.
Pros & Cons
- No cost for QuickBooks Online users
- Quick-pay button for invoices
- Monthly or pay-as-you-go plans for QuickBooks Desktop users
- No free reader
- Charges $25 chargeback fee
- No additional software or hardware
10. PaymentCloud
From furniture stores to business owners with bad credit, PaymentCloud allows you to process credit cards and rise above obstacles.
Pros
- Fast application approval
- Easy to set up
- Next day funding
- Dedicated account manager
Cons
- No pricing information on website
- Pricing varies by risk
- May face early termination fees
In business since 2015, PaymentCloud maintains a diverse customer base and offers solutions for in-store and online business needs.4 As a reputable credit processor, PaymentCloud delivers competitive rates while serving companies that have trouble qualifying for other services, making it the winner in our high-risk category.
PaymentCloud is PCI-compliant and accepts major credit cards, including:
- Visa
- American Express
- Mastercard
- Discover
- Apple Pay
Since high-risk companies face many barriers, PaymentCloud gives you a dedicated account manager. This person works with you to determine your plan and fee structure and helps integrate essential software and hardware. Since high-risk services charge rates according to risk, you won’t find fee information on PaymentCloud’s website.
PaymentCloud features an open API, so it integrates with WooCommerce, WordPress, and Wix. You can also connect your QuickBooks account. Other services include help with data migration and step-by-step guidance for setup.
From a free EMV reader to POS equipment, PaymentCloud offers a wide variety of hardware. Your account manager helps you select the right mix of hardware, such as:
- Wireless and wired credit card terminals
- Card readers for smartphones or tablets
With PaymentCloud, you’ll get funds in your bank as soon as the next day. Customer support is robust since you can talk to your dedicated account manager, call customer support between 7:00 a.m. and 6:00 p.m. PST, or use their 24/7 technical support lines.
Methodology
Forbes Advisor looked at several factors to determine the rankings for the best credit card processing companies. We compared factors such as pricing, ease of use, customer support, software integrations and other features and functionality. We ranked each credit card processor using a five-star rating system, five out of five being the highest.
Specifically, here’s what we looked at:
- Ease of use. We looked at companies that were easy to set up and easy to use. This included looking at how easy it was to import data, invoice and view reports.
- Cost and fees. We gave preference to credit card processing companies offering flat monthly fees and transparent transaction fees. Plans with high monthly fees were considered if they offered plenty of features or low transaction fees to make up for it.
- Customer support. Companies we looked at offered various customer support options including hotlines, live chat and a knowledge base.
- Features and functionality. We compared features and tools such as software integrations, data exports, invoicing and a reporting dashboard when making comparisons.
What Is a Credit Card Processing Company?
Credit card processors make it possible for you to take credit card payments by connecting the various services involved in the process. These include the credit card network, issuing banks and your own merchant bank account.
When a customer swipes their credit card at a point-of-sale, a credit card processing company translates the information on the card into payment details for the merchant. This keeps the customer’s information secure, verifies funds are available and gets those funds to the vendor in a timely manner.
How Does a Credit Card Processing Company Work?
Credit cards are issued by a customer’s bank and are encoded with their personal account details. Swiping or inserting a card at a merchant’s point-of-sale triggers a chain of events to complete a sale. The merchant’s credit card processing company sends a query to the issuing bank to verify funds availability. The bank will approve or deny the transaction and send a notification back through the processor to the point-of-sale.
At regular intervals, generally at close of business day, the processing company transmits the approved transactions in batches to the appropriate banks to initiate transfer of funds. Processing is complete once the money is deposited into the merchant’s bank account.
Credit Card Processing Fees
Credit card processing companies need to pay the interchange fees credit cards charge for each transaction. To make a profit, the companies mark up these fees using a flat rate, pass the interchange fees on to the consumer plus a percent and/or flat-fee markup, or mark up the interchange rates based on whether the purchase is a low or high risk.
Some credit card payment companies use a monthly subscription-based model to offer their customers lower rates and provide them with extra services, like software and extra support.
How to Choose the Best Credit Card Processing Company
The best credit card processing company for your business will strike the right balance of cost, functionality and support. You should take into consideration your monthly transaction volume to determine if a per-transaction or monthly subscription-based model will be cheaper in the long run.
If you sell products and services online as well as in person, make sure your chosen service can support both sales channels as seamlessly as possible. Do you need hardware? Consider a provider that offers compatible options so that you don’t have to set up your own. Making these determinations will help you find the perfect fit for your style of business.
Frequently Asked Questions (FAQs)
Qn.1 Why does my business need credit card processing?
According to a study by the American Bankers Association in May 2021, there were over 320 million credit card accounts active in the United States in 2020. This means that the vast majority of American adults hold at least one account, if not more. With credit cards being so common, not having the ability to accept them means a huge potential for missed sales opportunities.
Qn.2 What equipment do I need to accept credit card payments?
Accepting credit card payments can require as little as a merchant account and a mobile app, or a full freestanding cash register terminal. It all depends on your needs. Most credit card processing companies offer either a card reader that can be used with mobile devices as well as both free and paid POS systems and more advanced card readers and terminals.
Qn.3 How do you process credit card payments online?
If you primarily operate an e-commerce business, you’ll need to make sure that you select a credit card processor that is compatible with your website. Some website builders include their own payment gateways, while others allow you to connect with third-party providers. Several of the companies listed above, such as Square, double as website builders so that you can keep everything under one umbrella.
Qn.4 Is credit card processing secure?
Yes. Because so much sensitive information is being transferred across these networks, credit card processors are PCI-compliant and use advanced encryption methods to secure transactions.
Qn.5 What is a chargeback?
A chargeback refers to the returning of money to a payer in the event of a disputed charge. In many cases, customers might dispute a charge with their credit card company if their account was hacked and used their card without their consent. In other cases, a customer might even dispute a charge if they are unsatisfied with your product or service and felt like they did not get adequate help from your company in resolving the issue. To keep chargeback costs to a minimum, it’s a good idea to try and resolve customer issues directly and without the involvement of the credit card company.
Qn.6 What kind of pricing structure do credit card processing companies use?
The two options available are flat-rate pricing and subscription pricing. Flat-rate pricing can be a better option for businesses that have a lower amount of credit card transactions every month. The other option is a subscription plan, which is usually done by charging a nominal fee per transaction. This option is more affordable as more credit card transactions are processed.
