Best Credit Card Processing Companies For Startups

Get Started With U.S. Bank Merchant Services

Total Rating	4.4
Fees & Rates4.5
Products & Services4.1
Contract4.6
Sales & Advertising Transparency4.6
Customer Service4.4
User Reviews3.7

Promo: Earn up to $1,000 in statement credits over 3 months when you open a new U.S. Bank Payment Solutions account and complete qualifying activities. Member FDIC. Offer: - Open, and be approved for, a new U.S. Bank Payment Solutions Merchant Account (MID) by September 30, 2025. - Account must be open and actively accepting and settling payments at the time the monthly statement credits are being calculated and applied in order to receive the rebate. Merchant account must be in good standing with no outstanding recovery balance. - Get merchant fees refunded up to $1,000 over three months. Claim this offer

Pros

Large, direct processor
Numerous in-person branches
Month-to-month pricing with no contract
Same-day funding for business checking account holders

Cons

Not all pricing info disclosed online

Why We Chose U.S. Bank Merchant Services

U.S. Bank is a small business-friendly provider of both business banking accounts and merchant services. If you hold a business banking account and use U.S. Bank's merchant services, you'll get certain benefits, including free same-day funding (or next-day funding in some cases, depending on batch times).

Unlike a lot of traditional banks that offer merchant services, U.S. Bank payment solutions accounts have month-to-month contracts, flat-rate processing, and even a free mobile plan.

U.S. Bank is a strong choice for any small new business that doesn't yet have a business bank account or a merchant account, especially those that want fast funding.

U.S. Bank Merchant Services Pricing

U.S. Bank Merchant Services has month-to-month contracts, with prices ranging from $0-$99+/month depending on how many POS features you need. New brick-and-mortar businesses that just need a smart terminal with basic POS features will only pay $15/month.

As for payment processing, new merchants that are onboarded online or by phone will pay the following rates:

In-person transactions (swipe, tap, insert): 2.6% + $0.10
Manually keyed-in transactions: 3.5% + $0.15
Online payments: 2.9%+ $0.30
Invoiced payments: 2.9% + $0.30

U.S. Bank Merchant Services Features

U.S. Bank Merchant Services offers the following features:

Dedicated merchant account
Same-day transfers
Accept Zelle payments from customers
POS software and hardware (provided via talech)
Large in-person branch network
Free mobile plan
Mobile payments via card reader or Tap to Pay for iPhone
eCommerce (also provided via talech)

When To Use U.S. Bank

You need a business bank account and a merchant account for your startup.

CDGcommerce: Best For Scalability

CDGcommerce

Get Started With CDGcommerce

Total Rating	4.7
Fees & Rates4.6
Products & Services5.0
Contract5.0
Sales & Advertising Transparency5.0
Customer Service3.5
User Reviews4.9

Pros

Interchange-plus and subscription billing available
Free payment gateway and virtual terminal
Month-to-month billing with limited fees

Cons

Flat-rate payment processing rates are high

Why We Chose CDGcommerce

CDGcommerce uses a hybrid processing model that combines the quick approval of a payment service provider (PSP) with the stability of a merchant account. Similar to a PSP, you can sign up with CDGcommerce and start processing quickly, but you can eventually get a full merchant account. This model is good for startups with little to no financial history since you can sign up without providing financial records and build a financial history while using the payment processor.

CDGcommerce offers three types of pricing plans, each optimized for the growth stage of your business. CDG's startup plan for new businesses processing up to 10K/month utilizes flat-rate pricing. But as your business scales up and your processing volume grows, you can access interchange pricing, and eventually membership pricing (which is an amazing deal for high-volume businesses).

CDGcommerce Pricing

CDGcommerce offers multiple plan tiers depending on your business’s processing volume. Rates are as follows:

In-person transactions: 2.9% + $0.30; interchange + 0.20-0.25% + $0.10; or interchange + $0.06-$0.15
Online & keyed-in transactions: 3.5% + $0.30; interchange + 0.20-0.30% + $0.10-$0.15; or interchange + $0.06-$0.15

Flat-rate payment processing plans are for businesses processing less than $10,000 per month.

Note: While CDG’s flat-rate payment processing is higher than other providers, you do get lots of freebies like a loyalty program, eCommerce store, invoicing, credit card terminal, and nonprofit campaign management that other providers do not offer. You get these free features on all plans.

Businesses processing between $10,000 and $200,000 per month will benefit most from interchange-plus payment processing. Large businesses processing over $200,000 per month can get a membership-based pricing plan that eliminates the per-transaction percentage fee in exchange for a single monthly subscription fee.

CDGcommerce has also eliminated many of the excessive fees that other providers charge, including account setup fees, PCI compliance fees, and monthly minimums. The company charges no fees beyond the transaction fee and a fixed monthly or yearly fee. Other services, such as invoicing, subscription billing, and similar options, are also available for an added fee.

CDGcommerce Features

CDGcommerce offers comprehensive processing services for eCommerce and brick-and-mortar businesses. Here’s a look at CDGcommerce’s services and features:

Membership, interchange-plus, and flat-rate pricing
Full-service merchant accounts
Support for some high-risk industries
Free virtual terminal (with an annual maintenance fee)
Free payment gateway via the company’s proprietary Quantum Gateway or Authorize.Net, and a virtual terminal
$100,000 breach protection plan options
Customer management and tracking reports
Integrated scheduling and appointment-setting tools
Support for nonprofit donations and campaigns
Customer loyalty management, including promotional texts and emails
Built-in customer invoicing

When To Use CDGCommerce

You need a fast, scaleable merchant account for your online or brick-and-mortar startup.

Square: Best For Startups With Physical Locations

Square

Total Rating	4.7
Fees & Rates5.0
Products & Services4.2
Contract5.0
Sales & Advertising Transparency5.0
Customer Service4.1
User Reviews3.9

Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.

Pros

Predictable flat-rate pricing with no monthly fees
Ideal for low-volume merchants
All-in-one payments system
Affordable chip readers

Cons

Account stability issues
Proprietary hardware

Why We Chose Square

Square's affordable hardware, ease of use, and month-to-month pricing enable new businesses to easily accept card payments in person without locking them into long-term contracts. You can also take payments through a free Square Online store, monitor your inventory, and manage your employees through a free or low-cost Square plan.

Square offers a variety of POS hardware options for mobile and in-store use. However, all Square hardware is proprietary, so you can't use it if you move to a different credit card processing company.

While Square is a great option for startups, it's possible to outgrow. It may be best to stick to Square's basic features and avoid buying too many add-on services to save money if you decide to switch processors later on.

Related: Read our Square POS review for more information on what Square can offer for retail, restaurant, and service industries.

Square Pricing

Square offers free and paid plans. Paid plans have more POS features and lower payment processing fees, so businesses with steady sales should upgrade to a paid plan.

Square offers the following payment processing rates, all with no monthly fee:

In-Person Payments: 2.5-2.6% + $0.10-$0.15
Online Payments: 2.9% + $0.30
Invoice Payments: 2.9-3.3% + $0.30
Keyed-In Transactions: 3.5% + $0.15

For same-day deposits with Square, you’ll be charged 1.75%.

Square also offers custom pricing for businesses processing over $250,000 in annual sales with a $15+ average ticket size. You’ll also have the option to purchase Square’s hardware or add-on features.

There’s no monthly minimum amount you must charge through Square.

Square Features

For startups with physical locations, Square offers a solid entry into the world of payment processing. Here’s a look at Square’s most notable payment processing features:

Distinct POS software plans for retail, restaurant, and service-based businesses
Robust analytics and reporting dashboard
Multiple Square POS hardware options
Square Online store for online businesses
Card readers that can read both NFC and EMV chips
ACH payment processing
Afterpay buy-now-pay-later app and cryptocurrency payment acceptance
PCI compliance
Create and verify new accounts on the same day

Related: Read our Square POS hardware guide to help you decide which Square card reader and POS display options are right for your startup.

When To Use Square

You’re opening a brick-and-mortar store but want some online features (such as online ordering).

Get Started With Square

Wave Payments: Best For Self-Employed

Wave Payments

Get Started With Wave Payments

Total Rating	4.5
Fees & Rates4.7
Products & Services3.4
Contract5.0
Sales & Advertising Transparency5.0
Customer Service4.2
User Reviews3.1

Pros

Month-to-month plans with no contract
Free plan with unlimited invoicing
Next-day funding for Canadian merchants

Cons

No in-person POS

Why We Chose Wave Payments

Wave offers a free, lightweight processing solution for new businesses that want to accept payments through online invoices. Simply attach a payment link to your Wave Accounting invoice and email it to your customer. You can even set up automated reminders and recurring billing. Wave also includes bookkeeping features

Though various small business types could use Wave, the program is specifically geared toward self-employed individuals, freelancers, and solopreneurs who provide professional services.

The flat-rate processing fees on its free plan are lower than those charged by Square's free invoicing plan, as long as you only need online invoice payments (and don't need an in-person POS).

Wave Payments Pricing

Wave’s monthly fees are $0/month for the Starter plan, and $16/month (or $170/year) for the Pro plan.

Payment processing fees are as follows:

Online Credit Card Payments: 2.9% + $0.60 (3.4% + $0.60 for Amex); On Pro plan, first 10 transactions per month are 2.9% + $0.00 (3.4% + $0.00 for Amex)
ACH/ETF Transfers: 1% of the transferred amount (minimum fee of $1)
Instant Payouts: 1% of the transferred amount (minimum fee of $1)
Chargebacks: $15 per chargeback
Late Payment Fee: $25 per late payment

Wave Payments Features

Some of Wave’s notable features are as follows:

Built-in accounting tools
Unlimited invoicing (even on free Standard plan)
ACH transfers (ETF transfers in Canada)
Recurring payments (Pro plan only)
Invoice payment reminders
Shopping cart software integrations
Instant payouts (for added fee)

When To Use Wave Payments

You want a low-cost solution to accept online invoice payments, and don’t need to take in-person credit card payments.

PaymentCloud: Best For High-Risk Startups

PaymentCloud

Get Started With PaymentCloud

Total Rating	4.1
Fees & Rates4.3
Products & Services4.6
Contract2.8
Sales & Advertising Transparency4.0
Customer Service4.6
User Reviews4.7

Exclusive Promo: PaymentCloud will give you $200 if they can't beat your current rate. Get Your Quote

Pros

Specializes in high-risk businesses
Good customer support
No setup fee
Alternative payment support

Cons

No standard fee disclosures

Why We Chose PaymentCloud

Depending on your industry and your business experience, it could be difficult to find a credit card processor that will accept your business.

Fortunately, there are high-risk processors like PaymentCloud that accept new businesses, including startups in high-risk industries like online gambling or nutraceuticals, as well as business owners with bad credit.

New business owners who don't have business banking statements yet just need to submit three months of personal statements, and PaymentCloud will try to match you with a high-risk backend processor.

In addition to its acceptance of high-risk startups, we also like PaymentCloud for its excellent customer support and variety of alternative payment options, which include MOTO, QR code payments, and even crypto.

PaymentCloud Pricing

In general, high-risk credit card processors do not publicly disclose pricing their information, and PaymentCloud is no exception.

Rates and terms vary from one business to the next, depending on your specific industry’s risk profile and other factors.

However, we do know that unlike a lot of high-risk merchant account providers, PaymentCloud does not charge an application fee or account setup fee.

PaymentCloud Features

Some of PaymentCloud’s primary features include:

Free credit card terminal available with each account
MOTO payments
Mobile processing solutions
Alternative payment support, including ACH payments, eChecks, and more
Virtual terminal
Text-to-pay
Authorize.Net, NMI, and USAePay payment gateway integrations
Paysley QR-code payment service

When To Use PaymentCloud

You own a high-risk startup and want to accept alternative payment forms like ACH and crypto.

Stripe Payments: Best For Developers

Stripe Payments

Get Started With Stripe Payments

Total Rating	4.7
Fees & Rates4.7
Products & Services4.5
Contract5.0
Sales & Advertising Transparency5.0
Customer Service4.5
User Reviews4.1

Pros

Excellent developer tools
Predictable flat-rate pricing
Advanced reporting tools
Excellent marketplace and subscription tools

Cons

Account stability issues
Needs technical skill to implement

Why We Chose Stripe

Stripe's flat-rate pricing, transparent fees, easy signup, and extensive support for international payments make it a great option for startups operating eCommerce or multichannel shops. It's great for businesses that want to build a custom checkout for their website.

Compared to Square, Stripe is better for an online/eCommerce business because it has a robust number of integrations for use at your web store's checkout or in-app purchases. However, Stripe also supports in-person transactions and can be a good option for multichannel businesses that want to build a unified payment structure across their online and offline platforms.

Stripe also has an international reach, as it's able to take or convert international currencies to US dollars. If you plan to start an online-only business and want a sophisticated web store that you're willing to hire someone to build, Stripe can be highly customized to support your preferred payment flows.

Stripe Pricing

Stripe charges 2.9% + $0.30 (2.2% + $0.30 for nonprofits) per transaction for online transactions, with no monthly fee on the basic plan. All contracts have month-to-month billing and no long-term contracts.

Stripe also offers the option to purchase the hardware for in-person transactions outright instead of having to deal with leases that ultimately cost more. Because the hardware is not proprietary, you might be able to reuse it if you change processors.

In-person payments through Stripe Terminal cost 2.7% + $0.05 per transaction. Stripe’s other account add-ons and fees are well documented on its website, so you’ll be able to estimate those costs before signing up.

Stripe Features

Here’s a look at some of Stripe’s standout features:

Flat-rate pricing and flexible pay-as-you-go billing
Developer tools and Stripe APIs for customizable payment flows
ACH payment processing on every account
Fully integrated Stripe Payments platform
Stripe Virtual Terminal for eCommerce
Anti-fraud protection through Stripe Radar
Optional instant payout
Stripe Terminal POS
Multiple payment options, including Buy Now, Pay Later, international payments, and 3D Secure authentication

When To Use Stripe

You want to build a custom checkout or for your eCommerce or multichannel business.

Payment Processing Rating Methodology

Merchant Maverick has been researching the payment processing industry since 2009. Our writers have reviewed hundreds of credit card processors, merchant account services, and mobile payment apps, evaluating each provider carefully on several different metrics.

Weighted Rating Breakdown

Fees & Rates 35%

Contract 20%

Products & Services 15%

Sales & Advertising Transparency 15%

Customer Service 10%

User Reviews 5%

When comparing different payment processing companies and applications to one another, we consider numerous data points. Our experts start by comparing credit card processing rates, the presence of additional fees, contract length, sales practices, and the presence or absence of additional features and services, like point of sale software. Each provider is judged on its own merits and how well it stacks up to industry standards; then it is weighed against the other providers on the list.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure every company or application included meets our internal standards for quality and reputation. Any list of recommended payment processors on our site might contain a mix of standard merchant accounts, third-party payment processors, mobile payment devices, and high-risk payment processors, depending on what our expert feels is the best fit for certain scenarios or business types.

For additional details about Merchant Maverick’s review and rating processes, please refer to any or all of the following methodology pages:

Years reviewing payment processors

100+

Providers evaluated

Attributes and features assessed per vendor

40+

Years combined experience

What Should You Look For In A Startup Credit Card Processor?

As a startup business, you have specialized needs when it comes to payment processing. Here are some green flags to look for when choosing a processor for your startup.

Month-To-Month Contracts: The future is uncertain when you’re a startup and you’re probably not in a place yet where you can make a long-term commitment. Month-to-month contracts make it easy to switch to a different processor as your business grows and your needs change.
Good Customer Support: Customer support is important with just about any service you subscribe to, but this is especially the case when it comes to payments, as billing mistakes can be quite expensive. Additionally, when you’re a new business, your account can be prone to funding holds and freezes (especially if your provider is a PSP); reliable, reachable customer support is essential for resolving these potentially costly issues.
Scalability: As your processing volume increases, you may experience growing pains if you choose a processor that can’t scale up. As your requirements increase, it will be convenient to be able to stay with the same processor rather than having to search for a new one that can handle a higher sales volume and/or increased feature needs.
Low Startup Fees: Startups typically don’t have a lot of capital to work with, so it’s best to keep costs low when getting involved with a payment processor. For example, you might look for a processor with no setup fee, inexpensive hardware, and a free plan.
Flat-Rate Or Interchange Rates: For new, low-volume businesses, flat-rate processing is usually the most affordable processing model, depending on your average ticket size. As you grow, you will likely save money with interchange-plus pricing, so it can also make sense to choose an interchange-plus provider to start out with. Whatever you do, just avoid tiered pricing, which is the most expensive type of processing.

Which Credit Card Processor Is The Best Fit For My Startup?

Which path should you follow for credit card processing as a startup?

The answer comes down to which processor can meet your payment processing needs while also staying within your budget. These processors all have month-to-month contracts, so you can change processors at any time (the only exception is if you’re a high-risk business, which usually entails a longer-term contract).

The above providers are also all highly rated, so there’s very little chance that you’ll go wrong with any of them.

Need more options? Check out some more of our favorite small business merchant account providers.