5 Best Credit Card Processing For Small Businesses in 2024

If you have a small business, credit card processing fees can quickly accumulate and represent a significant share of your total business expenses. For this reason, it’s important that you choose a credit card processor that best fits your business profile and needs. This can result not only in smaller fees but also a better experience for your customers.

In this article, we are going to examine the best credit card processing companies for small businesses and describe their key features, pricing plans, and more.

The 5 best credit card processing companies for small businesses in 2024

In the sections that follow, we are going to examine the best credit card processing companies for small businesses. Note that each platform has its strengths and weaknesses, so make sure that you thoroughly research each option before you make your decision.

1. Square – Best credit card processing for small businesses overall

Square offers a no-cost version of its POS (Point of Sale) system that includes a wide array of features such as sales tracking, reporting, offline mode for accepting payments, and a customizable interface. This is particularly beneficial for small businesses that require a robust POS system without incurring additional software costs.

Square’s pricing is straightforward, with a flat-rate payment processing model. This transparency in pricing helps small businesses easily understand and predict their costs, making financial planning more manageable.

The range of hardware provided by Square, from mobile card readers to more complex two-screen systems, offers flexibility for various business types and settings. This versatility allows businesses to tailor their checkout experiences to their specific needs.

Square’s POS system includes a long list of features that can cater to various industries. Additional features such as loyalty programs, email marketing, payroll, and online store integration are available, offering a comprehensive ecosystem for business operations.

Unlike many other providers, Square does not issue a fee for chargebacks, which can be a significant advantage for small businesses concerned about the financial implications of payment disputes. It’s also worth noting that Square is the company behind Cash App, a highly popular payment service that makes sending payments between users a breeze.

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2. Stripe – Best for online businesses

Stripe accepts a wide range of payment methods, including major credit cards, digital wallets, bank redirects, and transfers, and even integrates buy now, pay later solutions like Klarna and Afterpay. It supports more than 135 currencies, making it ideal for businesses with a global customer base.

The piercing structure is straightforward, with flat rates for different types of transactions, enhancing predictability and simplicity in managing costs. There are no setup, cancellation, or monthly fees, which is beneficial for small businesses watching their bottom line.

With Stripe’s open API and advanced developer tools, businesses can create a highly customized checkout experience. This is particularly valuable for online businesses that wish to maintain brand consistency and offer a seamless payment experience. This makes Stripe especially well-suited for businesses operating through online channels, including marketplaces, e-commerce shops, and subscription-model businesses, due to its focus on online payment processing.

Unfortunately, to fully leverage Stripe’s customization capabilities, businesses need to have access to software development skills. Without coding knowledge, the utilization of Stripe’s advanced features might be limited. It’s worth noting that Stripe supports USD Coin (USDC) payouts, making it one of the few payment processors that support cryptocurrencies.

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3. Helcim – Best for medium-sized businesses

Helcim is a merchant services provider that stands out for its transparent pricing and comprehensive platform, making it an appealing option for many small-business owners, especially those with moderate to high sales volumes. 

Helcim operates on an interchange-plus pricing model, clearly detailing its fees on its website. This transparency is a significant advantage for businesses that prefer clear, straightforward billing without hidden charges. There are no monthly fees with Helcim, which can be particularly beneficial for businesses looking to reduce fixed costs.

Helcim supports a range of payment methods, including debit/credit cards, ACH, and international transactions, catering to a diverse customer base. Businesses are not tied to long-term contracts, offering flexibility and the ability to switch services without penalties.

Helcim provides hardware like mobile card readers and standalone terminals with built-in thermal printers. This range of hardware options caters to different operational needs. Besides payment processing, Helcim offers merchant accounts, a mobile app for on-the-go payments, virtual terminals, and payment gateways, including hosted payment pages and API integration for shopping carts and billing systems.

For businesses with high transaction volumes, Helcim offers volume discounts, which can further reduce transaction costs. This comes at a cost, however, as the pricing model may not be the most cost-effective for businesses with low monthly transaction volumes, as the interchange-plus rates could result in higher overall charges compared to flat-rate pricing models.

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4. Payment Depot – Best for businesses with high sales volumes

Payment Depot operates on a model where customers only pay the interchange rates for payment processing, with no additional markup on transactions. This can be highly cost-effective for businesses with high sales volumes, as they avoid the per-transaction fees that are common with other processors.

It charges a flat monthly fee based on your annual processing volume. This fee starts at $79 for businesses processing up to $250,000 per year, with custom quotes available for higher volumes. Businesses are not bound by long-term contracts with Payment Depot, offering flexibility and ease of mind. Customers can cancel anytime without incurring early termination fees.

Payment Depot offers a range of credit card terminals and point-of-sale systems from well-known brands like Clover, Dejavoo, First Data, Poynt, and SwipeSimple. All customers have access to a free virtual terminal, allowing for manual entry of credit card information. This feature is particularly useful for phone transactions or as a backup in case of technical issues with card readers.

Depending on the model, Payment Depot’s POS systems may include features like inventory management, discounts, reporting, and employee management, adding value to the overall offering. It’s worth noting that the cost of card readers and POS hardware is not publicly disclosed, requiring businesses to request a quote. This might be a hurdle for businesses seeking quick comparisons or immediate pricing information.

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5. Stax – Best for advanced features

Stax offers a unique pricing model where there is no markup on the interchange rate charged by credit card companies. This can potentially lower costs for small businesses as they only pay the interchange rate plus a small processing fee and a monthly subscription.

The service supports a range of payment methods, including in-person, online, mobile, and invoiced transactions, catering to diverse business models and customer preferences. Stax offers its services without the need for a contract, giving businesses flexibility and easing the worry of long-term commitments.

The ability to integrate with software like QuickBooks, Xero, Wave, and others, makes it easier for businesses to synchronize their payment processing with existing accounting and CRM systems.

In addition, Stax offers various features like automated clearing house (ACH) transaction processing, surcharging capabilities, digital invoicing, and text-based mobile payments. Advanced plans include more sophisticated tools like API integration, enhanced dashboards, and online store setup, allowing businesses to scale and tailor their payment processing as they grow.

There are also various add-on features, such as digital gift cards, one-click shopping carts, surcharging, and custom branding, which provide businesses with more tools to enhance their customer experience and operational efficiency.

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The bottom line

Choosing the right credit card processing service for your small business is an important decision that shouldn’t be taken lightly. Whether you’re an online-first or in-person-centric business plays a very big role in your decision. For example, Stripes and Payment Depot is a good choice for online businesses with a high frequency of buyers, while Square is a great all-rounder.

If you’re still not sure which service to use, consider reading our review of the best payment processors for small businesses, in which we cover additional options.