💳 Save money on credit card processing with one of our top 5 picks for 2025
Looking to reduce processing fees for your small business? Our list of providers with the lowest credit card processing fees will help you find your best option.
WRITTEN & RESEARCHED BY
Expert Contributor
Last updated onUpdated
REVIEWED BY
Expert Contributor
As a small business owner, saving money where you can is crucial, and credit card processing is no exception. You want to find the cheapest credit card processing companies without sacrificing quality or security.
Lowering your credit card processing fees means you can keep your overhead costs from ballooning. Thankfully, some of the cheapest credit card processing companies also offer reliable customer service, great hardware, and a variety of plans for any industry.
Keep reading to find the lowest-cost merchant services for your small business, or check out the best small business credit card processing companies for some alternatives that offer great rates and everything else you need in a payment processor as well.
Learn More About Our Top Picks
| Company | Highlights | Next StepsHighlights |
|---|---|---|
Square
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Show Deal |
National Processing
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Show Deal |
PaymentCloud
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Show Deal |
Host Merchant Services
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Dharma Merchant Services
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Helcim
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Stripe Payments
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Chase Payment Solutions℠
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| Show Fewer Options |
Read more below to learn why we chose these options.
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Table of Contents
When looking for the cheapest merchant services, your business model, transaction size, and the type of card used all affect payments. But the type of fee structure and monthly fee will ultimately have the biggest effect on lowering your credit card processing fees.
| Transaction Fees | Monthly Fee | Processing Model | |
|---|---|---|---|
| Square | 2.6% + $0.10 (card-present); 2.9% + $0.30 (online) | $0+ | Flat-Rate |
| National Processing | 2.41-2.5% + $0.10 (card present); 2.9% + $0.30 (online) | $9.95 or $19 | Flat-Rate |
| PaymentCloud | Interchange + 0.05-0.30% + $0.08-$0.10 per transaction (low-risk accounts), pricing varies for high-risk | $15+ (low-risk), fee for high-risk accounts varies | Varies |
| Host Merchant Services | Interchange + 0.20% + $0.09/restaurant transaction | $14.99+ | Interchange-Plus |
| Dharma Merchant Services | Interchange + 0.10-0.15% + $0.08 (card present); Interchange + 0.20% + $0.11 (online) | $15 or $20 | Interchange-Plus |
| Helcim | Interchange + 0.15-0.40% + $0.06-$0.08 (card present); Interchange + 0.15-0.50% + $0.15-$0.25 (online) | $0 | Interchange-Plus |
| Stripe Payments | 2.7% + $0.05 (card present); 2.9% + $0.30 (card not present) | $0 | Flat-Rate |
| Chase Payment Solutions℠ | 2.6% + $0.10 (card present); 2.9% + $0.25 (online) | $0 or $9.95+ | Flat-Rate |
Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.
Pros
Cons
Square is one of the easiest entry points for any business into the credit card processing market. With affordable hardware, easy-to-understand flat rate processing, and an expansive set of free features, including tokenized credit card payments, eCommerce, invoicing, Tap to Pay for iPhone and Android, ACH payments, and even a free mobile card reader, Square is a great all-around value.
While Square isn't necessarily the cheapest credit card processing company on a per-transaction basis, it offers small and seasonal businesses the ability to process credit cards with essentially zero monthly overhead. Additionally, Square has some of the most affordable hardware options for small businesses.
Pricing
Starts at $9.95/monthPricing Model
Flat-rate pricingContract
No long term contractGet a free Clover Go card reader from National Processing when you sign up. Claim your card reader.
Pros
Cons
National Processing has something not many merchant account providers can boast about, an excellent public reputation.
National Processing focuses on core services -- credit/debit card processing and ACH processing at competitive rates -- which makes it an excellent choice for businesses that don't need the extended services offered by many of its competitors.
While many prominent flat-rate processing services have no monthly fees, National Processing does charge $9.95 or $19/month for the service (the $19 plan has lower in-person processing fees). However, with National Processing, you'll get a dedicated merchant account---in contrast to the less-stable aggregate accounts offered by payment service providers.
National Processing also provides a more personalized customer service experience than PSPs and can support high-risk businesses.
Get Started With National Processing
Exclusive Promo: PaymentCloud will give you $200 if they can't beat your current rate. Get Your Quote
Pros
Cons
High-risk credit card processing can be one of the seedier segments of the industry, as small businesses with limited credit card processing options can easily be taken advantage of.
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, this company consistently delivers excellent value. While high-risk businesses should still expect to pay more than a typical low-risk business, PaymentCloud doesn't charge an exorbitant markup past the interchange fee.
The company keeps costs low by partnering with bigger banks to maximize the odds of your approval and ongoing stability.
Pros
Cons
Host Merchant Services is notable for the wide variety of businesses it can accommodate, from low-risk restaurants and retail stores, to high-risk vape shops and firearms merchants. In fact, in addition to being one of the cheapest credit card processors, Host is one of the best merchant accounts for high-risk businesses.
Host Merchant Services provides full merchant accounts, so even though you'll be paying a small monthly fee, you'll get your own stable account in return, reducing the likelihood of experiencing account holds or freezes. Host Merchant Services has a reputation for excellent customer service and cost-effective pricing for businesses doing over $10,000 per month in transactions. Restaurants, in particular, can enjoy a lower transaction rate.
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Pros
Cons
Dharma Merchant Services is among the best payment processors for mature businesses, specifically those doing over $10,000 a month in transactions. It is also one of the best credit card processing companies for nonprofits, offering a dedicated nonprofit plan, as well as plans for various specific business types, including retail, restaurants, eCommerce, hotels, and more.
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 $15-$20 (additional fees may apply if you need a payment gateway), plus nonprofit 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 monthly, but you'll save money if your company processes many of these transactions.
Get Started With Dharma Merchant Services
Pros
Cons
Helcim defies much of the conventional wisdom of payment processing, offering a combination of competitive processing rates, no monthly fees, expansive functionality, and cheap hardware for US and Canadian businesses. Helcim has a respectable international reach to boot, with its multicurrency support making it easy to accept payments from international customers and receive the funds in your local currency.
Helcim's lightweight POS app runs on most devices with an inexpensive card reader, which indicates its focus on low-cost solutions over expensive hardware.
Helcim offers cost-effective interchange-plus pricing and has no monthly fee, an almost unheard-of 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.
Pros
Cons
What is Stripe, and how does it work? Like Square, Stripe is a PSP that offers a low-risk entry point for businesses to start taking credit cards. Idle Stripe accounts cost users nothing, so seasonal businesses need not worry about overhead 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. Stripe also provides extensive support for international transactions and multiple currency support, making it a great option for businesses that sell across borders.
Stripe may not be the cheapest game in town if you take advantage of all its features, 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.
Get Started With Stripe Payments
Pros
Cons
Chase Payment Solutions is one of the largest processors in the United States and is a direct processor, rather than an Independent Sales Organization (ISO) such as Worldpay. This means you won’t have to deal with any middlemen when using your merchant account, making it easier to resolve account issues and negotiate terms if needed.
Chase Merchant Services offers some of the cheapest flat-rate processing fees we've come across, to say nothing of the fact that it's rare to see a large, direct processor go so far out of its way to cater to small businesses with low transaction volumes.
Chase has received remarkably few complaints from merchants for such a large company and has consistently earned positive reviews.
Get Started With Chase Payment Solutions℠
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:
15
Years reviewing payment processors
100+
Providers evaluated
25
Attributes and features assessed per vendor
40+
Years combined experience
When searching for the lowest credit card processing fees for small businesses, you’ll quickly discover that comparing apples-to-apples between many payment processors is hard. That’s because there’s a lot of variation in how these companies charge for their services. Understanding these differences can help you choose the processor that’s cheaper for you, even if it’s not the cheapest for every business.
Here are the two main types of credit card processing fees to bear in mind when it comes to cost. These aren’t the only fees you’ll encounter but the ones you’ll face most consistently.
Generally speaking, newer and smaller businesses will want to minimize administrative fees, while growing and more established businesses will want to prioritize minimizing transaction fees.
A popular way to deal with rising credit card processing costs has been to incentivize cash transactions. This can be done either by (1) offering a cash discount program, which can reduce the number of credit card transactions you have to make, or (2) passing some of the costs on to customers in the form of a credit card surcharge.
Functionally there isn’t much difference for merchants, but some states do make legal distinctions between the two. However, many payment processors now offer cash discounting and surcharging programs collectively under the umbrella name of “no fee credit card processing” or sometimes “free credit card processing.”
Interchange and assessment fees range from roughly 1.3% to 3.5%, plus a flat fee of a few cents. Credit card payment processing fees vary greatly between payment processors and are charged on top of interchange and assessment fees.
Learn more in our guide to interchange rates and fees.
Credit card processing fees are an expense, and, as a savvy merchant, you want to minimize unnecessary costs such as excessive credit card processing fees.
You can sometimes lower your processing fees by negotiating with your merchant services provider, but in other cases you might be better off just switching to a lower-cost provider.
Since not accepting credit cards is presumably out of the question, learn how to avoid spending too much on credit card processing by reading how to lower or offset your credit card processing fees.
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 getting the best possible rates, check out our explainer post on how to negotiate the best processing deal.
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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.
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