6 Best Retail Credit Card Processing Companies For 2024
The best credit card processors for retail businesses are reasonably priced and have flexible terms, robust services, and excellent customer support.
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WRITTEN & RESEARCHED BY
Senior Staff Writer
Last updated onUpdated
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REVIEWED BY
Lead Staff Writer
Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
Finding the best retail credit card processing company for your business is an important — and complicated — decision. The wrong processor can cost you too much money, fail to deliver essential features, and result in a frustrating customer service experience when problems arise.
You can avoid these pitfalls by choosing a processor that offers reasonable prices, flexible contract terms, retail-specific products and services, and top-notch customer support. We’ve found that many of the best credit card processors for small businesses are also great choices for retail or omnichannel businesses.
Here, we’ll profile each of our top contenders and explain why we thought they were the best options for a small retail business. We’ll also describe all the features and services you should be looking for in a credit card processing company.
Learn More About Our Top Picks
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Read more below to learn why we chose these options.
Table of Contents [hide][show]
- The 6 Best Credit Card Processors For Retail Businesses
- Square: Best For Startups Or Seasonal Retail Businesses
- Host Merchant Services: Best For Mid-Sized High & Low-Risk Businesses
- Dharma Merchant Services: Best For Nonprofit Retail Businesses
- Helcim: Best For Low-Cost Full-Service Merchant Accounts
- National Processing: Best For Included Credit Card Terminals
- PaymentCloud: Best For High-Risk Retail Businesses
- What Do You Need In A Retail Credit Card Processing System?
- What's The Future Of Retail Credit Card Processing?
- Which Retail Credit Card Processor Is Right For Your Business?
- FAQs: Retail Credit Card Processing
Table of Contents
- The 6 Best Credit Card Processors For Retail Businesses
- How The Best Retail Credit Card Processing Companies Compare
- Square: Best For Startups Or Seasonal Retail Businesses
- Square
- Why Square Is A Great Choice For Startups Or Seasonal Retail Businesses
- Square Pricing
- Square Features
- What To Watch Out For
- Host Merchant Services: Best For Mid-Sized High & Low-Risk Businesses
- Host Merchant Services
- Why Host Merchant Services Works Well For Mid-Sized High & Low-Risk Businesses
- Host Merchant Services Pricing
- Host Merchant Services Features
- What To Watch Out For
- Dharma Merchant Services: Best For Nonprofit Retail Businesses
- Dharma Merchant Services
- Why Dharma Merchant Services Excels For Nonprofit Retail Businesses
- Dharma Merchant Services Pricing
- Dharma Merchant Services Features
- What To Watch Out For
- Helcim: Best For Low-Cost Full-Service Merchant Accounts
- Helcim
- Why Helcim Is A Great Choice For Low-Cost Full-Service Merchant Accounts
- Helcim Pricing
- Helcim Features
- What To Watch Out For
- National Processing: Best For Included Credit Card Terminals
- National Processing
- Why National Processing Is Best For Included Credit Card Terminals
- National Processing Pricing
- National Processing Features
- What To Watch Out For
- PaymentCloud: Best For High-Risk Retail Businesses
- PaymentCloud
- Why PaymentCloud Is Best For High-Risk Retail Businesses
- PaymentCloud Pricing
- PaymentCloud Features
- What To Watch Out For
- Payment Processing Rating Methodology
- What Do You Need In A Retail Credit Card Processing System?
- What's The Future Of Retail Credit Card Processing?
- Which Retail Credit Card Processor Is Right For Your Business?
- FAQs: Retail Credit Card Processing
The 6 Best Credit Card Processors For Retail Businesses
Choosing the best credit card processor for your small retail business comes down to three main factors: (1) pricing, (2) features, and (3) customer support. Most of our top choices offer month-to-month billing with no long-term contracts or early termination penalties. You should also consider which type of processing rate plan will be the most cost-effective for your business.
- Square: Best For Startups Or Seasonal Retail Businesses
- Host Merchant Services: Best For Mid-Sized High & Low-Risk Businesses
- Dharma Merchant Services: Best For Nonprofit Retail Businesses
- Helcim: Best For Low-Cost Full-Service Merchant Accounts
- National Processing: Best For Included Credit Card Terminals
- PaymentCloud: Best For High-Risk Retail Businesses
How The Best Retail Credit Card Processing Companies Compare
| Monthly Fee | Pricing Type | Contract Length | Hardware Options | |
|---|---|---|---|---|
| Square | $0 (Free plan) or $89 (Plus plan) | Flat-Rate | Month-to-month | Proprietary Square card readers & terminals |
| Host Merchant Services | $14.99/month | Interchange-Plus | Month-to-month | Wide choice of universal models |
| Dharma Merchant Services | $15/month ($12 for nonprofits) | Interchange-Plus | Month-to-month | Clover terminals or wide choice of universal models |
| Helcim | $0 | Interchange-Plus | Month-to-month | Proprietary Helcim card reader or smart terminal |
| National Processing | $9.95-$19.00+/month (depends on pricing plan) | Flat-Rate or Customized | Month-to-month (3 years with “free” terminal) | Clover or PAX terminals |
| PaymentCloud | Variable | Tiered or Interchange-Plus | Variable | Clover terminals or wide choice of universal models |
Square: Best For Startups Or Seasonal Retail Businesses
Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.
Pros
- All-in-one payments system with an impressive feature-set
- No monthly fees
- Predictable flat-rate pricing
- Ideal for low-volume merchants
Cons
- Account stability issues
- Not available to most high-risk industries
Why Square Is A Great Choice For Startups Or Seasonal Retail Businesses
Perennial small-business favorite Square is an excellent choice for a newly-established or seasonal retail business due to its lack of a monthly fee or long-term contract requirement. Square's flat-rate pricing is ideal for new or low-volume businesses, offering predictability and fewer surprises on your monthly processing statement.
Square offers a variety of affordable Square-branded credit card readers that work seamlessly with your Square account. Equipment can be purchased outright or on an installment plan for some of the more expensive options.
Square For Retail is the company's special program for retail businesses that need something more than just a simple credit card reader to run their shops. Square For Retail includes an iPad-based POS system that features an entirely redesigned user interface, optimized for searching and scanning to manage a large inventory.
When To Choose Square
- You're a first-time business owner and don't know what your monthly processing volume will be
- You run a seasonal business and want to avoid monthly fees
- You want affordable, easy-to-use processing hardware that integrates seamlessly with your other business services
Host Merchant Services: Best For Mid-Sized High & Low-Risk Businesses
Pros
- Transparent interchange-plus pricing
- Month-to-month billing with no early termination fees
- No monthly minimums
- Web hosting included with each account
Cons
- Can be expensive for some low-volume merchants
Why Host Merchant Services Works Well For Mid-Sized High & Low-Risk Businesses
Host Merchant Services is one of our top picks for retail credit card processing due to its wide range of products and services, flexible contract terms, and excellent pricing transparency. Host Merchant Services offers its own proprietary Bonsai POS system, as well as the popular Clover and Vital POS product line. It’s also one of the few merchant services providers that include free web hosting for online sales as a standard account feature.
Host Merchant Services fully discloses its pricing on its website, and its combination of interchange-plus processing rates and low account maintenance fees make it a very affordable choice for any small retail business. The company also accepts a wide variety of high-risk industries. Note that high-risk pricing and terms will be different from what's listed on the Host Merchant website.
Host Merchant Services offers month-to-month billing for all low-risk businesses. There are no long-term contracts or early termination fees.
When To Choose Host Merchant Services
- You have a medium-sized retail business that can save money with interchange-plus pricing
- You have both in-person and online sales channels and need web hosting as part of your merchant account
- You want a choice of universal credit card terminals that can be reprogrammed
Get Started With Host Merchant Services
Dharma Merchant Services: Best For Nonprofit Retail Businesses
Pros
- Interchange-plus pricing is offered exclusively
- No annual fee or monthly minimum
- Discount pricing for qualified nonprofits
Cons
- Does not accept merchants in high-risk industries
- Not recommended for businesses processing less than $10,000/month
Why Dharma Merchant Services Excels For Nonprofit Retail Businesses
Dharma Merchant Services offers significant pricing discounts to qualified nonprofit organizations, making it an excellent choice for nonprofits with a high monthly credit card processing volume.
Dharma also offers some of the most complete pricing transparency you'll find anywhere in the payments industry. It's an excellent choice for any low-risk small to medium-sized business that’s looking for interchange-plus pricing and Clover hardware. Like most of our other top choices, you’ll enjoy month-to-month billing with no long-term contracts or early termination fees (although a fully-disclosed $49 account closure fee is required if you close your account).
When To Choose Dharma Merchant Services
- You run a nonprofit organization that makes retail sales
- Your monthly processing volume is $10,000 or more
- You're in a low-risk retail industry
Get Started With Dharma Merchant Services
Helcim: Best For Low-Cost Full-Service Merchant Accounts
Pros
- No long-term contracts
- Exclusive interchange-plus pricing
- No monthly fees
- Excellent customer support
Cons
- Does not accept high-risk businesses
- Not suited for very low-volume businesses
Why Helcim Is A Great Choice For Low-Cost Full-Service Merchant Accounts
Canadian payment processor Helcim serves low-risk merchants in both the United States and Canada. With no monthly fee, the company offers one of the lowest-cost ways to get a full-service merchant account. Helcim's pricing is roughly comparable to Square's, with the added bonus that you won't have to settle for an aggregated account like you would with Square. Instead, you'll get a full-service merchant account that will be at very little risk of suddenly being frozen or shut down.
For processing hardware, Helcim offers the proprietary Helcim Card Reader, which can function as a countertop terminal or as part of a mobile payments system or POS. The company also offers the Helcim Smart Terminal, a more powerful device with a color touchscreen that comes with Helcim's POS software preinstalled.
For a small retail business, Helcim offers everything you need at a very low price. The company has also received a lot of praise from merchants for its excellent customer support.
Helcim's contracts are all on a month-to-month basis and don't require a long-term commitment. You can cancel your account at any time without penalty.
When To Choose Helcim
- You're on a tight budget, but want the added stability of a full-service merchant account
- You want to avoid paying monthly fees
- You're looking for affordable processing hardware that still has all the features you need
National Processing: Best For Included Credit Card Terminals
Get a free Clover Go card reader from National Processing when you sign up. Claim your card reader.
Pros
- Predictable flat-rate pricing
- Offers month-to-month billing with no early termination fee (ETF)
- A good option for budget-conscious merchants
Cons
- Long-term contract with early termination fee required in exchange for free terminal
Why National Processing Is Best For Included Credit Card Terminals
Another great low-cost option, National Processing is an excellent choice for merchants looking for transparent pricing and access to the popular line of Clover POS products. National Processing offers full support for retail merchants, including a variety of credit card terminals that you can purchase outright or include for "free" with your account. Note that a long-term contract will apply in the latter case.
National Processing has recently revamped its pricing structure and now offers flat-rate pricing to merchants processing less than $30,000/month. (Note that interchange-plus and membership pricing are still available through a customized pricing plan.) National Processing also offers a cash discounting program if you want to pass your credit card processing costs onto your customers. This program stands out from similar offers from competing providers in that it does not require a monthly fee.
National Processing offers excellent customer service and technical support and is one of the cheapest options available to small retail businesses. In calculating your overall costs, be aware that most Clover terminals and POS systems (with the exception of the mobile Clover Go card reader) require a monthly software subscription fee on top of your other costs.
When To Choose National Processing
- You want to use Clover hardware in your business
- You're willing to accept a long-term contract in exchange for "free" processing equipment
- You're looking for flat-rate processing rates that are below the industry average
Get Started With National Processing
PaymentCloud: Best For High-Risk Retail Businesses
Exclusive Promo: PaymentCloud will give you $200 if they can't beat your current rate. Get Your Quote
Pros
- No account setup fee
- Accepts a wide variety of high-risk industries
- “Free” credit card terminal available
- Excellent customer support
Cons
- No publicly disclosed pricing
Why PaymentCloud Is Best For High-Risk Retail Businesses
PaymentCloud serves low, medium, and high-risk businesses but excels as one of the best merchant account providers for high-risk businesses. Industries accepted include CBD, nutraceuticals and supplements, guns and firearms, cigarettes and tobacco, vape and e-cigarettes, dropshipping, and many others.
PaymentCloud stands out for the very hands-on approach it takes during the initial application and underwriting process. After approval, it continues to work closely with merchants for follow-up support. PaymentCloud gives you a dedicated account manager to take care of problems that may arise, and that's probably why we don't see many customer complaints on the internet.
PaymentCloud offers both tiered and interchange-plus pricing models, so if you're only given a tiered rate, be sure to ask for an interchange-plus rate quote, too.
PaymentCloud can give you one "free" loaner credit card terminal with your account, but you must return it if you close your account. PaymentCloud also sells terminals from several different manufacturers, if you wish to buy one outright.
When To Choose PaymentCloud
- You're in a high-risk industry and have had difficulty finding a processor that will accept your business
- You don't want to pay any application or account setup fees
- You want a dedicated account manager to assist you with customer support issues
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.
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:
- Credit card processor rating criteria
- High-risk merchant account rating criteria
- Credit card reader & mobile payment device rating criteria
15
Years reviewing payment processors
100+
Providers evaluated
25
Attributes and features assessed per vendor
40+
Years combined experience
What Do You Need In A Retail Credit Card Processing System?
The days when a brick-and-mortar store could operate just fine with a single, magstripe-only credit card terminal are long gone. Today, most retail merchants find it essential to have in place a full credit card processing system that can accept a wide variety of payment methods and perform many other functions related to running their businesses on a daily basis.
At a bare minimum, any business accepting in-person payments will need a modern card reader or terminal that can accept EMV cards. Processing hardware that uses NFC technology to accept contactless payments (and digital wallets like Apple Pay and Google Pay) is also increasingly expected by customers.
Processing hardware currently includes the following general categories:
- Mobile card readers: These can be used in conjunction with an app to make payments virtually anywhere. They can also be used with a virtual terminal to use your laptop or desktop computer as a credit card terminal.
- Countertop credit card terminals: The best credit card terminals for small businesses can now accept EMV & NFC-based payment methods, as well as magstripe (in most cases). Most new models also feature color touchscreens, customer-facing displays, and “smart” technology that allows you to add extra apps to your device. Wireless models are also available for taking payments in the field, but they require a monthly cellular data plan and tend to be bulky due to the need for a large battery. We also recommend selecting a terminal with a PIN pad to take advantage of lower PIN debit transaction processing fees.
- Point-of-sale (POS) systems: These devices are very popular among restaurant owners but can also be very useful for a traditional retail store as well. The ability to add apps for inventory management, employee scheduling, and other functions is a plus, but some devices (particularly the Clover brand) require monthly software subscription fees in addition to the cost of the device itself.
You’ll also need to have access to specialized services and features that help you run your business. While it’s possible (and sometimes necessary) to cobble together a system using several third-party products, it’s usually better if you can obtain everything you need from your credit card processor. This ensures compatibility and gives you a single point of contact for technical support and customer service. Additional services commonly used by retail businesses include the following:
- Inventory management software
- Analytics and reporting features
- Accounting software integration (e.g., QuickBooks integration)
- Electronic invoicing integration
- SNAP/EBT payment acceptance
- Gift card programs
- Loyalty programs (for repeat customers)
- eCheck payment acceptance
- ACH transfer acceptance (Note: ACH transfers work best for online transactions and are awkward to implement in a retail setting)
- Easy refund processing
Note: If you’re running a retail-only business and don’t accept any online sales, we recommend avoiding eCommerce-focused credit card processors like Stripe or Shopify. While both are excellent companies, they offer fairly limited support for in-person sales, and you won’t be able to use most of their powerful online services.
What's The Future Of Retail Credit Card Processing?
Retail credit card processing has changed quite a bit within the last few years.
EMV chip cards have (mostly) replaced older magstripe technology as the default method of card acceptance, and contactless payment methods using NFC technology surged in popularity during the COVID-19 pandemic. Here’s a preview of some of the significant trends in retail credit card processing that are either happening right now or are just on the horizon:
- Magstripe payments are going away. While most merchants have already made the switch to EMV, there are still customers with magstripe-only cards out there. However, that won’t be the case for much longer. Mastercard and Visa plan to begin issuing new cards within a few years that don’t have a magstripe at all, and eventually, the technology will disappear altogether. Modern mobile credit card readers (like the Square Reader for contactless and chip) now commonly support EMV and NFC payments, but not magstripe.
- Alternative payment methods that don’t require a physical credit or debit card are gaining in popularity. Apps like Venmo, Zelle, and Square’s Cash App offer customers an easy way to make a payment without using a physical card. QR code payments are also useful in a retail setting. We recommend incorporating as many of these alternative payment methods as you can to give your customers more flexibility in completing a purchase.
- Real-time payments are now available (but not widely distributed). In addition to several private real-time payment services, the Federal Reserve’s FedNow real-time payment service (which launched in 2023) will make it much easier for small business owners to get their funds almost instantly (even on weekends). This can be a great feature for businesses that depend on a steady day-to-day cash flow.
Which Retail Credit Card Processor Is Right For Your Business?
While the top credit card processors we’ve profiled above are all excellent choices, finding the best provider for your business ultimately comes down to matching up the services you need — and what you can afford — with what a provider has to offer. Each business has unique needs, so there’s no one-size-fits-all “best” credit card processor that will work equally well for everyone. In evaluating your choices, consider the following factors in making a selection:
- Contract flexibility. Even if you think you’ll be happy with your chosen provider, it’s always best to have a month-to-month contract that allows you to switch providers if things don’t work out. We strongly recommend avoiding long-term commitments unless you’re in a high-risk industry and have no choice.
- Reasonable pricing. In addition to looking for the lowest monthly fees, you’ll want to select a processing rate plan that’s best for your business. While flat-rate pricing generally works best for low-volume or new businesses, interchange-plus pricing is usually cheaper for mid-sized and larger enterprises. Very high-volume businesses can save money with membership pricing, but you’ll want to carefully analyze your anticipated costs before switching to this option. Tiered pricing, unfortunately, offers no advantages to any business and should be avoided.
- Availability of add-on services. Most businesses need at least some ancillary services in addition to basic credit card processing. Be sure that the provider you choose offers the services that you need so you don’t have to go to a third party to get them.
- Reputable customer service. Merchants often ignore the importance of good customer support — until they need to use it. Look for a provider that has a good reputation in this area, as the payments industry generally doesn’t do well in terms of customer service.
Good luck!
FAQs: Retail Credit Card Processing
Frank Kehl
Senior Staff Writer at Merchant Maverick
Frank has been writing about payment processing and business services since 2015. He is a retired Air Force officer and a former practicing attorney. He has a Bachelor of Science degree in Psychology from The Pennsylvania State University and a Juris Doctorate degree from the Ventura College of Law, and currently resides in Paso Robles, California.
View Frank Kehl's professional experience on LinkedIn.
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