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Best Credit Card Processing Companies For Startups
All of these processors are well suited for startups, as they accept new businesses, are easy to sign up for, and have no long-term contract.
Davina began writing for small businesses in 2018 and has since gained expertise in the SaaS industry. She earned her Bachelor’s of Arts in English Literature from SUNY Geneseo in 2018.
WRITTEN & RESEARCHED BY
Davina WardDavina began writing for small businesses in 2018 and has since gained expertise in the SaaS industry. She earned her Bachelor’s of Arts in English Literature from SUNY Geneseo in 2018.
Expert Contributor
Last updated onUpdated
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
REVIEWED BY
Shannon VissersShannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.
Choosing credit card processing for startups can be challenging since there are so many options and it can be unclear which providers will accept brand-new businesses. Also, different processors cater to different types of startups.
To help you choose the best credit card processing company for your startup, we have put together this list of the best payment processing options for startups. Though the right provider for your startup will depend on your specific niche, all of these startup-friendly providers offer low fees, scalability for growth, and a speedy signup process.
Same-day funding for business bank account holders
Best merchant account/business bank account combo
Flat-rate processing
Same-day funding for business bank account holders
Show Deal
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 June 30, 2025.
- Keep the approved account in an open status and be actively accepting and settling card payments at the time the statement credit is issued.
- Get merchant fees refunded up to $1,000 over three months Claim this offer
6 Best Credit Card Processing Companies For Startups
Credit card processing companies for startups are friendly to new businesses, offering a low barrier to entry as well as features to grow your business.
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 June 30, 2025.
- Keep the approved account in an open status and be actively accepting and settling card payments at the time the statement credit is issued.
- Get merchant fees refunded up to $1,000 over three months Claim this offer
Pros
Large, direct processor
Numerous in-person branches you can visit
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 For Best Merchant Account & Bank Account Combo
U.S. Bank is a small business-friendly provider of both business banking accounts and merchant services. Moreover, having both a U.S. Business Banking account and a payment processing through U.S. Bank offers merchants 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, making this bank perfect for small new businesses that aren't ready to commit to a long-term contract.
As their business bank account is also well-rated, U.S. Bank is a very 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 pricing ranging from $0 to $99+ 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, businesses will pay the following rates:
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 As The Best For Scalability
CDGcommerce uses a hybrid processing model that combines the quick approval of a payment service provider (PSP) with the stability of a merchant account. You can sign up with CDGcommerce and start processing quickly, just like a PSP, but you can eventually get a merchant account through them as well. 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 $1-$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, including:
Flat-Rate Payment Processing: $0/month; 2.9% + $0.30 for in-person payments; 3.5% + $0.30 for online payments
Interchange-Plus Payment Processing: Monthly fee not disclosed; 0.25% + $0.10 for in-person payments; 0.30% + $0.15 for online payments; 0.20% + $0.10 for nonprofits (CDG’s rates on top of interchange fees)
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. Interchange-plus payment processing is a payment processing model where you pay a provider a per-transaction fee in addition to interchange fees, which are charged by card issuers like Visa and Mastercard. It’s more transparent than flat-rate payment processing and works better for midsized businesses.
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
New businesses will find that CDGcommerce offers comprehensive processing services, including those for eCommerce and brick-and-mortar businesses. Here’s a look at CDGcommerce’s services and features:
Offers 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 of $79)
Free payment gateway options for eCommerce 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.
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 For Startups With Physical Locations
We chose Square for startups with physical locations because its 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. (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:
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 $15.00 or over-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
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 in case your customer doesn't pay expediently, as well as recurring billing which is useful if your startup has a subscription model.
Though various small business types could theoretically use Wave to accept online payments, the program is specifically geared toward self-employed individuals, freelancers, and solopreneurs who provide professional services.
What's more is that Wave includes bookkeeping features and 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 has a two-tier pricing model, which includes a $0/month Starter plan and a $16/month Pro plan.
Payment processing fees are as follows:
Online Credit Card Payments (Visa, Mastercard, Discover): 2.9% + $0.60 on Starter plan; 2.9% + $0.00 for the first ten transactions per month (and 2.9% + $0.60 after that) on Pro Plan
Amex Payments: 3.4% + $0.60 on Starter plan; 3.4% + $0.60 for the first ten transactions per month (and 3.4% + $0.60 thereafter) on Pro Plan
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.
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 For High-Risk Startups
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 will 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
We chose Stripe because we feel that its 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, and particularly for programmers who 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, able to take or convert international currencies to US dollars. If you plan to start an online-only business and know that you want a sophisticated-looking web store that you're willing to hire someone to build, Stripe can be highly customized to support your preferred payment flows.
Stripe Pricing
As to pricing, Stripe charges 2.9% + $0.30 per transaction for online transactions, with no monthly fee on the basic plan. All contracts have month-to-month billing and no long-term obligation.
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. Best of all, 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 settling on Stripe.
Stripe Features
Stripe is one of the biggest players in the payments industry and has been for quite some time. During its long reign at the top, Stripe has accumulated a full suite of payment tools, software, and hardware for both brick-and-mortar and eCommerce businesses of all sizes. 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
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:
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 Contract: 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 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.
FAQs: Best Credit Card Processing Companies For Startups
How do I add credit card processing for a new business?
To add credit card processing to your new business, you’ll first need to sign up with a payment service provider (also called an aggregator) or a merchant account provider.
Traditional merchant accounts usually have higher monthly fees, but they are more stable than PSPs and offer less expensive transaction fees as your processing volume grows.
Can I process credit cards for my new high-risk business?
You can use a high-risk credit card processing company like PaymentCloud or Durango Merchant Services to process cards as a high-risk business. Just make sure you stay within the processing limit they give you, as there will typically be a limit as to how much you can process per month as a new high-risk account.
How much does credit card processing cost?
Credit card processing costs vary greatly depending on the payment processor you choose, their pricing structure, and your monthly processing volume. The average interchange fee ranges from 1.46% + $0.05 to 2.96% + $0.10 per transaction, but payment processors add their own markup on top of the interchange fee—typically another 1-2%.
What is the cheapest way to accept credit card payments?
The cheapest way to accept credit card payments is to utilize the services of an inexpensive payment processor that’s free to get started with —typically a payment service provider such as Square or Stripe.
Davina began writing for small businesses in 2018 and has since gained expertise in the SaaS industry. She earned her Bachelor’s of Arts in English Literature from SUNY Geneseo in 2018.
View Davina Ward's professional experience on LinkedIn.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
Our Experts Recommend PaymentCloud 🏆PaymentCloud can help almost any business save on credit card processing.Whether you're looking to save money on processing or to get approved for a merchant account, PaymentCloud can help.Get StartedAt PaymentCloud
