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11 Cheapest Credit Card Processing Companies & Low-Cost Merchant Services

There's no one-size-fits-all solution for low-cost processing. No monthly fees can save some businesses money, while subscription pricing is the solution for others.

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

Credit card processing is a useful and indispensable part of many small businesses, but there's no prize for paying too much for the service. You want the cheapest credit card processing you can for your small business get without sacrificing quality or security.

Ready to save money on credit card processing? Read on.

Learn More About Our Top Picks

Other Featured Options:

• CDGcommerce:
  • Best for eCommerce businesses
  • Monthly fee starting at $0
• Payline:
  • Available for mobile and online payments to in-store sales
  • Monthly fee starting at $10
• Chase Payment Solutions:
  • Direct processor with an established name
  • No monthly fee
• Square:
  • Predictable pricing for newer businesses
  • No monthly fee
• Stripe Payments:
  • Predictable pricing for newer businesses
  • No monthly fee
• Helcim:
  • Interchange-plus pricing with no monthly fee
  • No monthly fee

Read more below to learn why we chose these options.

The 11 Cheapest Credit Card Processing Companies For Small Business

When it comes to finding the cheapest merchant services, you need to remember that different pricing models yield different costs for varying types of businesses. Here are some of the cheapest credit processing companies we've come across in our research.

• Stax By Fattmerchant:Cheapest for high-volume businesses.
• National Processing:Best for cheap, no-frills processing.
• Payment Depot:Cheapest for 0% markups.
• PaymentCloud:Cheapest for high-risk businesses.
• Dharma Merchant Services:Best for industry-specific pricing.
• CDGcommerce: Cheapest for small businesses overall.
• Payline Data: Cheapest for nonprofits.
• Chase Payment Solutions:Cheapest with no monthly fee.
• Square:Cheapest for new and seasonal businesses.
• Stripe:Best for credit card payment APIs.
• Helcim: Best for interchange-plus pricing with no monthly fee.

1. Stax By Fattmerchant: Cheapest For High-Volume Businesses

Stax by Fattmerchant	Visit Site Read our Review

Pros

• Month-to-month billing and no long-term contract
• No percentage markup rate
• Next-day funding available

Cons

• US-based merchants only
• Not suitable for low-volume businesses

Stax Pricing

• Monthly Fee: $99-$228
• Transaction Fees: Interchange fees plus $0.08 or $0.15
• Chargeback Fee: $25
• No batch fees, gateway fees, early termination fees, or compliance fees

Stax Hardware & Software

For cash-conscious businesses, Stax offers many of its core services on an à la carte basis. Most of the premium features (terminals, mobile POS, shopping cart, integrations, API, etc.) require a monthly subscription to Stax Pay, a supplemental service.

Where Stax Really Shines

Stax by Fattmerchant has long been one of our best-rated all-in-one merchant account providers. The company offers a 0% markup rate and a subscription pricing model. Additionally, free invoicing, a virtual terminal, and POS software all come standard with your account.

Stax features subscription-based pricing, so the monthly fees may look high. Don't let that monthly fee discourage you. In reality, the 0% markup could save a high-volume business so much money that it more than pays for the monthly fee.

Get Started with Stax by Fattmerchant

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2. National Processing: Best For Cheap, No-Frills Processing

National Processing	Visit Site Read our Review

Cons

• Early termination fee charged in some circumstances
• A long-term contract is required in exchange for the free terminal

National Processing Pricing

• Monthly Fee: $9.95-$199
• Transaction Fees:
  • Interchange-Plus: Interchange fees plus 0.12% + $0.06 to 0.18% + $0.10
  • Subscription: Interchange fees plus $0.05 to $0.04
• Chargeback Fee: $15
• A cash discount program is available

National Processing Hardware & Software

All National Processing plans come with:

• A free SwipeSimple mobile reader
• Free reprogram of existing hardware
• Free gateway setup
• Clover hardware compatibility

Where National Processing Really Shines

National Processing has an excellent reputation, with few complaints and quite a bit of praise from customers — something we rarely see with merchant account providers.

If you're hoping for a software suite with POS analytics and lots of ancillary software options, you might want to consider Square instead. But if you just want something secure to accept debit, credit, and ACH, you'll likely be more than happy with National Processing. It's a great service for businesses that want low-fee credit card processing from a reliable company.

Get Started with National Processing

Read our in-depth review

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3. Payment Depot: Cheapest For 0% Markups

Payment Depot	Visit Site Read our Review

Pros

• Free payment gateway and virtual terminal
• No application or setup fee
• Transparent membership pricing

Cons

• Accepts only US-based merchants
• Not suitable for high-risk businesses

Payment Depot Pricing

• Monthly Fee: $59-$99
• Transaction Fees: Interchange fees plus $0.07 to $0.15
• Chargeback Fee: $15
• No PCI compliance fees, no application of setup fees, no early termination fees, no account statement or reporting fees

Payment Depot Hardware & Software

• Countertop Terminals: Ingenico, Dejavoo, PAX, and SwipeSimple
• Smart Terminals: Clover Flex, Poynt Smart
• POS Systems: Clover systems, Vital Select POS
• Mobile: SwipeSimple B250

Where Payment Depot Really Shines

Payment Depot's subscription-based pricing model has no percentage-based markup, saving the most money for businesses that frequently process larger tickets.

We appreciate Payment Depot's model because it combines all your recurring fees (e.g., payment security, virtual terminal) into a single subscription fee, starting at $59/month for the Starter plan. We also like that Payment Depot charges some of the lowest credit card processing fees with the elimination of the percentage markup.

Get Started with Payment Depot

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4. PaymentCloud: Cheapest For High-Risk Businesses

PaymentCloud	Visit Site Read our Review

Pros

• Specializes in high-risk businesses
• Reasonable rates
• Excellent customer service

Cons

• The website does not disclose pricing (it varies based on the back-end processor)

PaymentCloud Pricing

Since high-risk payment processors generally have to shop their customer's profiles around to various banks, rates can vary widely. PaymentCloud's rates for low-risk customers are:

• Monthly Fee: $15
• Transactions:
  • Card-Not-Present: Interchange plus 0.05% +$0.08 to 0.3% + $0.10
  • Card-Not-Present: Interchange plus 0.10% + $0.15 to 0.5% + $0.25
• Chargebacks:$25
• No application fee, setup fee, PCI compliance fee, or statement fee

PaymentCloud Hardware & Software

• Countertop Terminals:Verifone (VX 520, VX 680), Ingenico (iCT 220, iCT 250, iPP 310, iWL 250, iWL 255)
• POS Systems:MaxxPay systems

Where PaymentCloud Really Shines

Businesses categorized as high-risk can have a hard time finding reasonable processing rates, so we're fans of PaymentCloud. Specializing in high-risk credit card processing and offering top-notch customer support, we find this company consistently delivers excellent value.

PaymentCloud doesn't seem to take advantage of high-risk businesses, unlike many other high-risk processors we've reviewed. The company keeps costs low by partnering with bigger banks to maximize the odds of your approval and ongoing stability. It also doesn't have an exorbitant markup past the interchange fee.

Get Started with PaymentCloud

Read our in-depth review

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5. Dharma Merchant Services: Best For Industry-Specific Pricing

Dharma Merchant Services	Visit Site Read our Review

Pros

• Interchange-plus pricing is offered exclusively
• No application or setup fee
• Discounted pricing for nonprofits

Cons

• Accepts only US-based merchants
• Not suitable for high-risk businesses
• Not suitable for low-volume businesses

Dharma Merchant Services Pricing

• Monthly Fee: $20-$25
• Retail & Restaurant Rates: Interchange plus 0.15% + $0.08 per transaction
• eCommerce Rates: Interchange plus 0.2% + $0.11
• High-Volume Rates: Interchange plus 0.1% + $0.08
• Chargebacks:$25

Dharma Merchant Services Hardware & Software

• Countertop Terminals:Verifone Engage V200c, Fiserv FD-150, Ingenico Desk/5000, Dejavoo Z11
• POS systems:Clover systems
• Mobile:MX Merchant Express app

Where Dharma Merchant Services Really Shines

Dharma won't charge you PCI compliance fees, batch fees, AVS fees, setup, or early termination fees. As it's a month-to-month service, you'll have many windows to cancel your Dharma Merchant Services account without any penalties. The monthly fee is small, ranging between $20-$25 (plus an additional $10 if you want to add a payment gateway), and high volume businesses get a discount on their transactions.

Additionally, Dharma offers a B2B program that offers discounted rates for businesses processing Level 2 or 3 data. It costs an additional $20 per month, but you'll ultimately save money if your company processes many of these transactions.

Get Started with Dharma Merchant Services

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6. CDGcommerce: Cheapest For Small Businesses Overall

CDGcommerce	Visit Site Read our Review

Pros

• Month-to-month agreement with no early termination fees
• Free payment gateway and virtual terminal
• Excellent customer service

Cons

• Only available for US-based merchants

CDGcommerce Pricing

• Monthly Fee: $0-$199
• Transaction Fees:
  • Flat Rate: $0.30 plus 2.75% to 2.9%
  • Interchange-Plus: Interchange plus 0.25% + $0.10 to 0.3% t0 $0.15
  • Subscription: Interchange plus $0.05 to $0.10
• Chargebacks:$25
• No PCI compliance fees, gateway fees, early termination fees, PCI compliance fees, or setup fees

CDGcommerce Hardware & Software

• Countertop Terminals: Dejavoo Z11 (included with each account)
• POS Systems: PastePay Cloud POS, Vital POS, Echo POS
• Mobile: Walker C2X

Where CDGCommerce Really Shines

CDGcommerce may be one of the most flexible options for eCommerce businesses. It sports month-to-month agreements with no early termination fees and affordable credit card processing rates for growing small businesses. It also offers a variety of hardware, including those that are contactless-payment-ready. If you've been using Square or PayPal and want to upgrade to a full-service merchant account, CDGcommerce is a great choice.

CDGCommerce offers a flat-rate plan, an interchange-plus plan, and a membership pricing plan. Note that the flat-rate plan has no monthly fee but has higher transaction fees. You can select CDG's proprietary Quantum gateway, Authorize.Net, or several other gateways. Either way, there's no fee for using the gateway and no additional per-transaction processing fee.

Get Started with CDGcommerce

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7. Payline Data: Cheapest For Nonprofits

Payline	Visit Site Read our Review

Pros

• Transparent interchange-plus pricing
• No early termination fee
• Free gateway and virtual terminal

Cons

• Not available for international sellers
• Hidden developer tools

Payline Data Pricing

• Monthly Fee: $10-$20
• Transaction Fees:
  • Majority Of Transactions Are Card-Present: Interchange plus 0.2% + $0.10
  • Majority Of Transactions Are Card-Not-Present: Interchange plus 0.4% + $0.20
• Chargebacks:$25
• No PCI compliance fees, gateway fees, or early termination fees

Payline Data Hardware & Software

• Countertop Terminals: Clover systems
• POS Systems: Clover systems
• Mobile: Cardpointe, Clover Go

Where Payline Data Really Shines

From mobile and online payments to in-store sales, Payline Data covers all the bases for small businesses. It provides low-cost merchant services suited to low-volume sellers. It also offers a full range of hardware, including those that can accept contactless payments.

Payline also distinguishes itself with its corporate philosophy of charitable giving and support for nonprofit organizations through discounted pricing.

Are you looking for the cheapest payment gateway for your eCommerce shop? Payline Data can set you up with Payline Gateway, a full-featured payment gateway. You'll get recurring billing, electronic invoicing, and a customer vault with no separate gateway fees or transaction charges.

Get Started with Payline

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8. Chase Payment Solutions (Formerly Chase Merchant Services): Cheapest With No Monthly Fee

Chase Payment Solutions	Visit Site Read our Review

Pros

• Large direct processor
• Supports 120 currencies
• Interchange-plus pricing available on request

Cons

• Free credit card terminal requires a long-term contract
• Limited pricing information disclosed

Chase Payment Solutions Pricing

• Monthly Fee: $0
• Transaction Fees:
  • Card-Present: 2.6% + $0.10
  • Card-Not-Present: 2.9% + $0.15
  • Keyed-In: 3.5% + $0.10
• Chargebacks:$10
• No early termination fee, PCI compliance fee, setup fee, application fee, or gateway fee

Chase Payment Solutions Hardware & Software

• Countertop Terminals: Verifone Vx520, Ingenico iCT250
• POS Systems: PastePay Cloud POS, Vital POS, Echo POS
• Mobile: QuickAccept, eDynamo card reader, Chase mobile app

Where Chase Payment Solutions Really Shines

Chase Payment Solutions is one of the largest processors in the United States and is a direct processor. You won't have to deal with any middlemen when using your merchant account. Chase has received remarkably few complaints from merchants for such a large company and has consistently earned good reviews.

Regarding services and features, Chase offers its proprietary payment gateway, or you can integrate with other third-party gateways (such as Authorize.Net). It provides a virtual terminal, several options in credit card terminals, and a mobile processing reader. The card terminals and mobile readers are all contactless-ready. While Chase offers online reporting, ACH, and gift card programs, these may come at an additional charge.

Get Started with Chase Payment Solutions

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9. Square: Cheapest For New & Seasonal Businesses

Square	Visit Site Read our Review

Pros

• Predictable flat-rate pricing
• Affordable readers
• A robust free feature set

Cons

• Account stability issues
• Not suitable for high-risk industries

Square Pricing

• Monthly Fee: $0
• Transaction Fees:
  • Card-Present: 2.6% + $0.10
  • Card-Not-Present: 2.9% + $0.30
• Chargebacks:Normal transaction fee
• No PCI compliance fees, gateway fees, early termination fees, PCI compliance fees, or setup fees
• CBD business support available at higher processing rates (3.5% + $0.10 to 4.4% + $0.15)

Square Hardware & Software

• Square Software Ecosystem: Offers an expansive array of business productivity software, free and premium.
• Square Hardware: Square offers a variety of proprietary terminals and readers. New signups can get a free magstripe reader for mobile devices.

Where Square Really Shines

Square is best for businesses looking for a robust feature set with no monthly fees. The Square POS is free and includes great security (e.g., tokenized credit card payments) and features, such as reporting, free invoicing and virtual terminal, free email marketing features, and more.

While Square doesn't offer the absolute lowest credit card processing fees, Square is a third-party processor with convenience at the heart of its service. As such, the company makes taking credit cards more accessible to small businesses. It also provides many features you won't find anywhere else, and it doesn't charge extra for them.

Get Started with Square

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10. Stripe: Best For Credit Card Payment APIs

Stripe Payments	Visit Site Read our Review

Pros

• Predictable flat-rate pricing
• Transparent fee structure
• Accepts international payments

Cons

• Account stability issues
• Not suitable for high-risk industries

Stripe Pricing

• Monthly Fee: $0
• Transaction Fees:
  • Card-Present: 2.7% + $0.05
  • Card-Not-Present: 2.9% + $0.30
• Chargebacks: $15
• No PCI compliance fees, gateway fees, early termination fees, PCI compliance fees, or setup fees

Stripe Hardware & Software

Stripe is primarily an eCommerce processor, but Stripe Terminal supports:

• Stripe Reader M2
• BBPOS Chipper 2x BT, BBPOS Wise POS E, BBPOS Wise 3
• Verifone P400

Where Stripe Really Shines

Stripe is an eCommerce-focused payment processing platform that offers a wealth of tools to businesses on a month-to-month basis with no maintenance fees.

Stripe may not be the cheapest game in town, but you'll have a lot of control over what fees you do and don't want to pay. That's because many of Stripe's advanced features — when not included in your basic account — use an à la carte pricing system that adds an extra fee to your transaction costs.

Tech-savvy businesses will be able to wring the most value out of Stripe, which offers best-in-class developer tools with exhaustive documentation. It also provides extensive support for international transactions and multiple currency support, making it a great option for businesses that sell across borders.

Get Started with Stripe Payments

Read our in-depth review

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11. Helcim: Best For Interchange-Plus Pricing With No Monthly Fee

Helcim	Visit Site Read our Review

Pros

• Transparent interchange-plus pricing
• Few additional fees
• Accepts international payments

Cons

• Not suitable for very low-volume merchants
• Not suitable for high-risk industries

Helcim Pricing

• Monthly Fee: $0
• Transaction Fees: Interchange plus 0.10% + $0.05 to 0.5% + $0.25
• Chargebacks:$15-$25
• No PCI compliance fees, gateway fees, early termination fees, PCI compliance fees, or setup fees

Helcim Hardware & Software

Helcim offers one device, the Helcim Card Reader, which can be used as a countertop or mobile device. Helcim POS software can be installed on most devices.

Where Helcim Really Shines

Helcim offers interchange-plus pricing and has no monthly fee, an extremely rare combination in this industry. Contracts are month-to-month, with no early termination fee, nor are there any setup fees, PCI compliance fees, or monthly minimums. High-volume businesses get discounts on their transaction costs.

Helcim's POS system runs on most devices and is indicative of its focus on low-cost solutions over expensive hardware.

Get Started with Helcim

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What Is The Cheapest Way To Accept Credit Cards?

Here are some suggestions for keeping your costs down when trying to get the best credit card processing rates.

• Buy the hardware outright when possible. Equipment leases are almost always a bad idea. Purchasing your equipment outright saves you money in comparison.
• Seek out the best pricing model for your business type. Knowing your processing volume and average ticket size might help you pick the pricing model best suited to you.
• Avoid processors that charge lots of "junk" fees. Your processing rate may be low, but if the processor tacks on lots of junk fees, your total costs may still be unnecessarily high. Some providers even charge an annual fee along with a monthly fee!
• Avoid monthly minimums if you're a low-volume merchant. With monthly minimums, if you don't process enough money in a given month to meet the minimum amount you have to pay your processor, you'll be charged the difference between your monthly minimum and your actual processing fees for that month. Thankfully, most of our preferred providers don't impose monthly minimums.
• Shop around! Never go with the first company you find. Get multiple quotes from processors who provide what you need.

7 Tactics For Ensuring You Pay The Lowest Credit Card Processing Rates

Credit card processing fees are an expense, and, as a savvy merchant, you want to minimize unnecessary costs. Since not accepting credit cards is presumably out of the question, let's look at some ways you can avoid spending too much on credit card processing.

Consider Cash Discounts Or Surcharges

Probably the most brute-force way to cut down on your credit card transaction costs while still offering credit card payments as an option is to try to influence your customers' behaviors. Offering a discount for paying in cash can reduce the number of credit card transactions you have to make. Likewise, you can pass some of the costs on to customers in the form of a surcharge. Just make sure you're up to date on state laws.

This method can be very effective, but it has some potential downsides. The first is it may anger some customers who expect the convenience of paying with a card with no additional fees. Another issue is that some credit card processors lower rates for higher-volume customers, so you may need to do some math to figure out how much money you're actually saving.

Consider Adding ACH

Automated Clearing House (ACH) is the system powering most payments in the US. Even credit card transactions generally use online ACH payment providers to move money between banks. So what if you cut out the middle man?

ACH payments, which move money between bank accounts, are generally cheaper than credit card payments. When it comes to sales, ACH is most often used for recurring transactions, such as subscriptions and memberships, but it's also commonly used for B2B transactions.

While ACH is cheaper, it's rarely as convenient as credit cards. ACH doesn't guarantee payment the way credit cards do, so there is some additional risk that comes with using it.

Choose The Pricing Plan That Will Save You Money

Choosing the pricing plan that fits your business can make a big difference in how much you're paying for your payment processing. High-volume businesses will usually benefit from interchange-plus or membership pricing. In contrast, low-volume businesses will generally benefit more from flat-rate pricing with no monthly fees, especially when they come with generous "free" software.

Businesses doing a lot of B2B transactions should also look for any special rates or programs a processor offers for level 2 or 3 data.

And everyone should try to stay away from tiered pricing if possible, although this can be difficult for high-risk businesses.

Watch Out For Miscellaneous Fees

Like your cell phone service provider, credit card services can dream up just about any kind of fee they want and bury them deep in your merchant services agreement. You want to have as few of these fees as possible.

Dealing with a credit card processor that is transparent and upfront about all of its costs can eliminate a lot of nasty surprises down the road.

Learn The Lingo

Credit card processing companies use a lot of industry jargon. You'll be at an advantage when analyzing your bill if you know what everything means.

Understanding the difference between an interchange fee — those charged by the credit card networks themselves — and the markup charged by your payment processor, for example, can help you figure out just how much your processor is actually charging you. It can also help you avoid deceptive marketing gimmicks.

Choose A Processor That Can Accommodate Changes In Your Business

It's not unusual to outgrow a pricing plan as your business matures or goes through seasonal changes. Selecting a processor that scales well with those changes can save you money over the long term, especially if the plan can adjust without your direct oversight.

Alternatively, picking a payment processor with no long-term contracts allows you to switch providers should you find one that better fits your credit card processing needs.

Consider The Total Value Your Processor Provides

With many payment services operating as massive business software platforms, your transaction rate and fees aren't the only questions you'll want to consider.

If your payment processor is, for example, offering inventory management software as part of your package, that may mean you don't have to spend money on a separate software package. If it provides eCommerce tools, consider how much they increase your sales. Does the service pay for itself, or is it dead weight?

The Bottom Line On The Cheapest Credit Card Processing For Small Business

The credit card processors we've profiled here provide great service at an affordable cost. However, some are better suited to particular types of businesses than others. Keep in mind your goals, and don't be afraid to crunch some numbers and compare your top options. It's not always obvious which company has the cheapest credit card processing until you work it out with your projected volume and average ticket size.

For tips on how to get the best possible rates, check out our post, How To Negotiate The Perfect Credit Card Processing Deal. And for a side-by-side comparison of some of the companies listed here (and a few other excellent providers), please see our Merchant Account Comparison Chart.

If you have a question about any of the companies featured here, ask us in the comment section below!

In Summary: The 11 Cheapest Credit Card Processing Companies For Small Business

1. Stax by Fattmerchant:
   • Best for an all-in-one merchant account provider
   • Monthly fee starting at $99
2. National Processing:
   • Full-service merchant account
   • Monthly fee starting at $9.95
3. Payment Depot:
   • Best for mid to large-sized businesses
   • Monthly fee starting at $59
4. PaymentCloud:
   • Approves most business types, including high-risk
   • Monthly fee starting at $15
5. Dharma Merchant Services:
   • High-volume processor
   • Monthly fee starting at $20
6. CDGcommerce:
   • Best for eCommerce businesses
   • Monthly fee starting at $0
7. Payline:
   • Available for mobile and online payments to in-store sales
   • Monthly fee starting at $10
8. Chase Payment Solutions:
   • Direct processor with an established name
   • No monthly fee
9. Square:
   • Predictable pricing for newer businesses
   • No monthly fee
10. Stripe Payments:
    • Predictable pricing for newer businesses
    • No monthly fee
11. Helcim:
    • Interchange-plus pricing with no monthly fee
    • No monthly fee

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An expert in personal and business loans and financial health, Chris Motola has been writing about small business finance and payments for over 5 years. He has been cited in various industry publications, including Forbes Advisor, GoBankingRates, and Medium. Chris is a graduate of the University of Central Florida.

View Chris Motola's professional experience on LinkedIn.

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Source: https://www.merchantmaverick.com/cheapest-credit-card-processing-companies/

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