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8 Cheapest Credit Card Processing Companies & Low-Cost Merchant Services

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.

    Shannon Vissers
  • Last updated onUpdated

  • Chelsea Krause
  • REVIEWED BY

    Chelsea Krause

    Lead Staff Writer

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.

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

CompanyHighlightsNext StepsHighlights
Square

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  • Cheapest for new & seasonal businesses
  • Monthly fee: $0+
  • Flat-rate processing
  • Cheapest for new & seasonal businesses
  • Monthly fee: $0+
  • Flat-rate processing

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National Processing

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  • Best for cheap, no-frills processing
  • Monthly fee: $9.95+
  • Flat-rate pricing
  • Best for cheap, no-frills processing
  • Monthly fee: $9.95+
  • Flat-rate pricing

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PaymentCloud

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  • Cheapest for high-risk businesses
  • Monthly fee: $15+
  • Interchange-plus & tiered pricing
  • Cheapest for high-risk businesses
  • Monthly fee: $15+
  • Interchange-plus & tiered pricing

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Host Merchant Services

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  • Cheapest for restaurants
  • Monthly fee: $14.99+
  • Interchange-plus pricing
  • Cheapest for restaurants
  • Monthly fee: $14.99+
  • Interchange-plus pricing

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Dharma Merchant Services

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  • Cheapest industry-specific pricing
  • Monthly fee: $15-$20
  • Interchange-plus pricing
  • Cheapest industry-specific pricing
  • Monthly fee: $15-$20
  • Interchange-plus pricing

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Helcim

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  • Cheapest interchange-plus plan
  • No monthly fee
  • Interchange-plus pricing
  • Cheapest interchange-plus plan
  • No monthly fee
  • Interchange-plus pricing

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Stripe Payments

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  • Cheapest for credit card payment APIs
  • No monthly fee
  • Flat-rate pricing
  • Cheapest for credit card payment APIs
  • No monthly fee
  • Flat-rate pricing

Visit Site

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Chase Payment Solutions℠

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  • Cheapest direct processor
  • No monthly fee
  • Flat-rate pricing
  • Cheapest direct processor
  • No monthly fee
  • Flat-rate pricing

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Read more below to learn why we chose these options.

The 8 Cheapest Credit Card Processing Companies For Small Business

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.

How The Cheapest Credit Card Processing Companies Compare

Transaction FeesMonthly FeeProcessing Model
Square2.6% + $0.10 (card-present); 2.9% + $0.30 (online)$0+Flat-Rate
National Processing2.41-2.5% + $0.10 (card present); 2.9% + $0.30 (online)$9.95 or $19Flat-Rate
PaymentCloudInterchange + 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 variesVaries
Host Merchant ServicesInterchange + 0.20% + $0.09/restaurant transaction$14.99+Interchange-Plus
Dharma Merchant ServicesInterchange + 0.10-0.15% + $0.08 (card present); Interchange + 0.20% + $0.11 (online)$15 or $20Interchange-Plus
HelcimInterchange + 0.15-0.40% + $0.06-$0.08 (card present); Interchange + 0.15-0.50% + $0.15-$0.25 (online)$0Interchange-Plus
Stripe Payments2.7% + $0.05 (card present); 2.9% + $0.30 (card not present)$0Flat-Rate
Chase Payment Solutions℠ 2.6% + $0.10 (card present); 2.9% + $0.25 (online)$0 or $9.95+Flat-Rate

Square: Cheapest for new and seasonal businesses

Total Rating 4.8
Fees & Rates5.0

Products & Services4.7

Contract4.3

Sales & Advertising Transparency5.0

Customer Service4.9

User Reviews4.9



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
  • Affordable readers
  • A robust free feature set

Cons

  • Account stability issues
  • Not suitable for high-risk industries

Why We Chose Square As The Cheapest Option For New & Seasonal Businesses

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.

Square Features

Square offers some of the most comprehensive features you can get from a payment processor. Features include:

  • Free mobile card reader (magstripe-only) included with an account
  • Free Square Online Store for eCommerce businesses
  • Free invoicing feature
  • Free ACH processing included with every account
  • Tap to Pay feature lets you accept contactless payments using just your phone
  • EMV and NFC-capable card readers also available
  • Square Register all-in-one POS system available
  • Analytics and reporting available through Square Dashboard

Square Pricing

  • No setup or application fees
  • $0/month for Square Free account ($29+/month for Square Plus accounts)
  • 2.6% + $0.10/card-present transaction
  • 2.9% + $0.30/online transaction
  • 3.5% + $0.15/manually keyed-in transaction
  • 3.3% + $0.30/invoice paid via credit or debit card (on Square Invoices Free plan)
  • 2.9% + $0.30/invoice paid via credit or debit card (on $20/month Square Invoices Plus plan)
  • 1%/ACH transaction (minimum $1 charge)
  • No ACH reject or chargeback fees
  • Square Contactless & Chip Reader: $59
  • Square Terminal: $299
  • Square Register: $799 (or $39/month for 24 months)

When To Use Square

  • You own a low-volume business (process under $10K-$15K/month)
  • Your business is in a low-risk industry
  • You are new to credit card processing

Get Started With Square

Read our in-depth review

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National Processing: Best for cheap, no-frills processing

National Processing

Total Rating 4.6
Fees & Rates4.8

Products & Services5.0

Contract4.6

Sales & Advertising Transparency4.4

Customer Service4.1

User Reviews4.4



Get a free Clover Go card reader from National Processing when you sign up. Claim your card reader.

Pros

  • Simple flat-rate pricing
  • Low-cost ACH payment processing
  • Discounts for high-volume merchants
  • Support for some high-risk merchants

Cons

  • Early termination fee charged in some cases
  • A long-term contract is required to get a free terminal

Why National Processing Is Our Choice For Cheap, No-Frills Processing

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.

National Processing Features

National Processing offers a lean but solid feature set.

  • “Free” credit card terminal available
  •  ACH and eCheck processing (available as an add-on)
  • Clover POS hardware, including mobile processing with a Clover Go card reader
  • Optional cash discount plan
  • No long-term contract if processing hardware is purchased outright

National Processing Pricing

  • $9.95 or $19/month account fee
  • No PCI compliance fee
  • $0.00/month for the cash discounting program (optional)
  • $15.00/month and 0-1.5% + $0.48/transaction for ACH and eC heck processing (optional)
  • 2.9% + $0.30 per online transaction
  • 2.5% + $0.10 per in-person transaction (at the $9.95/monthly fee)
  • 2.41% + $0.10 per in-person transaction (at the $19/monthly fee)
  • 3.5% + $0.15 per manually keyed-in transaction
  • Custom pricing for merchants who process more than $30K/month

When To Use National Processing

  • You’ve outgrown Square and need a full-service merchant account
  • You process at least $30K/month
  • You want to use Clover POS with a cash discount plan

Get Started With National Processing

Read our in-depth review

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PaymentCloud: Cheapest for high-risk businesses

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
  • Reasonable rates
  • Excellent customer service

Cons

  • Pricing varies by back-end processor

Why We Chose PaymentCloud For Cheapest High-Risk Processor

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.

PaymentCloud Hardware & Software

PaymentCloud offers a well-rounded feature set for high-risk businesses:

  • Mobile processing solution available
  • Virtual terminal included
  • Authorize.Net, NMI, or USAePay payment gateways available
  • eCommerce integrations available (Shopify, WooCommerce, Magento, etc.)
  • ACH and eCheck processing are available
  • Paysley QR code payment service available

PaymentCloud Pricing

  • No account setup fee
  • No monthly minimum (low-risk accounts)
  • Interchange + 0.05%-0.30% + $0.08-$0.10 per transaction (low-risk accounts)
  • Processing rates vary by acquiring bank/back-end processors (high-risk accounts)
  • $15/month account fee (low-risk accounts)
  • Account fees vary by the acquiring bank/back-end processor (high-risk accounts)

When To Use PaymentCloud

  • You have a high-risk business
  • You have a low-volume business
  • You want to offer QR code payments

Get Started With PaymentCloud

Read our in-depth review

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Host Merchant Services: Cheapest for restaurants

Host Merchant Services

Total Rating 4.9
Fees & Rates5.0

Products & Services5.0

Contract5.0

Sales & Advertising Transparency4.7

Customer Service4.6

User Reviews4.8



Pros

  • No early termination fee
  • Interchange-plus pricing
  • High-risk processing available

Cons

  • Can be expensive for low-volume merchants
  • Some additional fees

Why Host Merchant Services May Be The Cheapest Option For Restaurants

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.

Host Merchant Services Features

Despite its small size, Host Merchant Services offers a full range of products and services and fully transparent pricing. Here are the highlights:

  • Full-service merchant accounts
  • Accepts most high-risk industries
  • Full line of countertop and mobile credit card terminals
  • Free terminal available to merchants processing over $20,000/month
  • Vital and SwipeSimple mobile processing solutions
  • Proprietary Bonsai POS system available
  • Clover and Vital POS systems available
  • Authorize.Net payment gateway
  • Proprietary HMSExpress payment gateway
  • Virtual terminal included
  • Web hosting included with an account
  • Cash discounting program available

Host Merchant Services Pricing

  • No application or setup fees
  • $14.99/month account fee
  • Interchange + 0.25% + $0.10/retail transaction
  • Interchange + 0.20% + $0.09/restaurant transaction
  • Interchange + 0.35% + $0.10/eCommerce transaction
  • Custom pricing for high-risk businesses
  • $5.00/month gateway fee (optional)
  • $15 chargeback fee
  • No PCI compliance fee
  • No early termination fee

When To Use Host Merchant Services

  • You have a high-risk or low-risk business
  • You own a restaurant
  • You want to use Clover POS and/or cash discounting

Get Started With Host Merchant Services

Read our in-depth review

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Dharma Merchant Services: Cheapest industry-specific pricing

Dharma Merchant Services

Total Rating 5.0
Fees & Rates5.0

Products & Services5.0

Contract5.0

Sales & Advertising Transparency5.0

Customer Service4.8

User Reviews4.7



Pros

  • Interchange-plus pricing
  • No application or setup fee
  • Discounted pricing for nonprofits

Cons

  • Not suitable for high-risk merchants
  • Not suitable for low-volume merchants

Why Dharma Merchant Services May Be The Cheapest Option For Industry-Specific Pricing

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.

Dharma Merchant Services Features

Dharma offers one of the most complete feature sets you could hope for from a traditional merchant services provider:

  • Full-service merchant accounts through Fiserv or TSYS
  • MX Merchant integrated payment platform
  • Choice of Authorize.Net or MX Merchant payment gateways
  • QuickPay virtual terminal
  • Full line of credit card terminals, including Verifone Engage V200c, Fiserv FD-150, Ingenico Desk/5000, Dejavoo Z11, and other models
  • MX B2B app for B2B processing
  • Full line of Clover POS systems
  • Credit card surcharging (no-fee, zero-cost credit card processing) program available

Dharma Merchant Services Pricing

  • $20/month account fee ($15/month for nonprofits and high-volume)
  • Interchange + 0.15% + $0.08/card-present transaction (volume discounts available)
  • Interchange + 0.10% + $0.08/card-present transaction (qualified nonprofits)
  • Interchange + 0.20% + $0.11/card-not-present transaction (volume discounts available)
  • Interchange + 0.10% + $0.11/card-not-present transaction (qualified nonprofits)
  • No gateway fees with MX Merchant
  • $10/month for recurring billing (MX Merchant)
  • $20/month for B2B processing (MX Merchant)
  • No annual fee
  • No PCI compliance fees
  • No monthly minimum
  • $49 account closure fee

When To Use Dharma

  • You have a low-risk B2B, nonprofit, retail, or restaurant business
  • You want ethical, transparent interchange-plus processing
  • You process at least $10K/month

Get Started With Dharma Merchant Services

Read our in-depth review

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Helcim: Cheapest interchange-plus plan

Total Rating 4.9
Fees & Rates5.0

Products & Services4.4

Contract5.0

Sales & Advertising Transparency5.0

Customer Service4.8

User Reviews4.5



Pros

  • Interchange-plus pricing
  • Few additional fees
  • Accepts international payments

Cons

  • Not suitable for very low-volume merchants
  • Not suitable for high-risk industries

Why We Chose Helcim For Cheapest Interchange-Plus Plan

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.

Helcim Features

Helcim is one of the cheapest ways to get a full merchant account. It’s no slouch when it comes to features either:

  • Full-service merchant account
  • Proprietary Helcim Card Reader works with Helcim POS app installed on your device
  • All-in-one Helcim Smart Terminal with built-in POS software
  • Virtual terminal included at no extra cost
  • ACH processing included at no extra cost
  • Free subscription management
  • Free online invoicing
  • Free online checkout feature, including online restaurant ordering
  • Access to Helcim API for customized credit card payments

Helcim Pricing

  • Interchange + 0.15-0.40% + $0.06-$0.08/card-present transaction (volume discounts available)
  • Interchange + 0.15-0.50% + $0.15-$0.25/card-not-present transaction (volume discounts available)
  • Helcim Card Reader: $99
  • Helcim Smart Terminal: $329
  • No monthly or annual account fees
  • No PCI compliance fees
  • No monthly minimum

When To Use Helcim

  • You want a full-service merchant account with no monthly fee
  • You have outgrown Square or PayPal and need a solution for higher-volume processing (in person or online)
  • You want to accept international payments

Get Started With Helcim

Read our in-depth review

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Stripe Payments: Best for cheap credit card payment APIs

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

  • Predictable flat-rate pricing
  • Transparent fee structure
  • Accepts international payments

Cons

  • Account stability issues
  • Not suitable for high-risk industries

Why We Chose Stripe For Its Cheap Access To Robust APIs

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.

Stripe Features

Stripe is an eCommerce-focused payment processing platform that offers a wealth of tools to businesses on a month-to-month basis with no maintenance fees. Features include:

  • Stripe Payments integrated payments platform
  • Stripe Virtual Terminal
  • Stripe Radar anti-fraud protection
  • Stripe Terminal API & card readers for card-present transactions
  • Tap to Pay on iPhone & Android
  • ACH processing included with every account
  • Extensive library of APIs and developer tools
  • Broad support for international payments and local payment methods
  • Many ancillary services for establishing and running your business

Stripe Pricing

  • No monthly fees for a basic account
  • 2.9% + $0.30/online credit/debit transaction (+0.5% for manually entered transactions)
  • 2.7% + $0.05/in-person credit/debit transaction via Stripe Terminal
  • +1.5% for international cards
  • +1% for currency conversion (if required)
  • 0.8%/ACH direct debit transaction ($5.00 maximum)
  • 1.2%/ACH direct debit transaction (two-day settlement)
  • $1.00/ACH credit payment
  • $59 contactless, chip, & magstripe reader (Stripe Reader M2)
  • $349 smart terminal (Stripe Reader M700)

When To Use Stripe

  • You sell primarily online
  • You want advanced API functionality for customizations & integrations
  • You want to accept international payments

Get Started With Stripe Payments

Read our in-depth review

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Chase Payment Solutions℠ : Cheapest direct processor

Chase Payment Solutions℠

Total Rating 4.4
Fees & Rates5.0

Products & Services4.0

Contract4.5

Sales & Advertising Transparency3.7

Customer Service3.9

User Reviews3.7



Pros

  • Large direct processor
  • International processing
  • No monthly fee for in-person only processing

Cons

  • Free credit card terminal requires a long-term contract
  • eCommerce processing requires monthly service fee

Why We Chose Chase Payment Solutions For Cheapest Direct Processor

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.

Chase Payment Solutions Features

Chase Payment Solutions offers a full range of products and services for most small online or retail businesses, including the following:

  • Full-service merchant account
  • Month-to-month billing
  • Choice of proprietary Orbital payment gateway or Authorize.Net
  • Virtual terminal included with each account
  • Free Chase POS app for mobile payments
  • Tap to Pay on iPhone
  • POS integrations with NCR Silver Essentials, TouchBistro, & Instamed
  • Payment links
  • Same-day funding for Chase business bank account holders
  • Choice of processing hardware, including Chase Smart Terminal, Ingenico, or Verifone models
  • Level II/Level III credit card processing for B2B payments
  • Support for international payments

Chase Payment Solutions Pricing

  • 2.6% + $0.10/card-present transaction
  • 2.9% + $0.25/eCommerce card-not-present transaction and monthly fee starting at $9.95
  • 3.5% + $0.10/keyed-in transaction
  • $0 monthly fee (if you don’t need eCommerce)
  • $9.95+ monthly fee to accept online payments
  • No PCI compliance fee
  • No gateway fee
  • $10/chargeback
  • Chase Card Reader (chip & tap): $99
  • Chase POS Terminal (smart terminal): $499

When To Use Chase

  • You want a full-service merchant account with no monthly fee
  • You just need basic mobile processing but want to use a direct processor rather than an ISO or PSP
  • You’re a Chase Business bank account holder

Get Started With Chase Payment Solutions℠

Read our in-depth review

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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:

15

Years reviewing payment processors

100+

Providers evaluated

25

Attributes and features assessed per vendor

40+

Years combined experience


What Does It Mean To Have The Lowest Credit Card Processing Fees?

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.

Administrative Fees

These are fees that are charged, usually monthly, to keep your account open. Not every processor charges administrative fees.

Does that mean you should always choose a processor with no administrative fees?

If only it were that easy. While you don’t want to pay merchant account fees if you can avoid them, many payment processors that offer a good economy of scale for high-volume merchants do charge added monthly fees.

Administrative fees are standard with processors offering interchange-plus pricing and even more so with subscription pricing. Both of these pricing models are excellent for high-volume businesses.

Transaction Fees

These are fees that you pay every time a customer swipes their card. You’ll want these to be as low as possible.

As with administrative fees, though, you don’t want to get tunnel vision. Many third-party processors that offer excellent value to small and seasonal businesses have relatively high, flat-rate processing fees. On the other hand, they have few to no administrative fees.

Is There A Way To Avoid Credit Card Processing 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.”

How Much Is The Typical Credit Card Transaction Fee?

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.

How To Lower Your Processing 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.

Is it possible to get credit card processing without paying any fees at all?
Matt Sherman
Matt ShermanLead Staff Writer
No, any credit card processing company will charge you some fees for services, although rates between companies can vary considerably.

Final Thoughts: Getting The Cheapest Credit Card Processing You Can

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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Shannon Vissers

Shannon Vissers

Lead Staff Writer at Merchant Maverick
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.
Shannon Vissers
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