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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.

    Chris Motola
  • Last updated onUpdated

  • Frank Kehl
  • REVIEWED BY

    Frank Kehl

    Senior 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.

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: $12+
  • Flat-rate pricing
  • Best for cheap, no-frills processing
  • Monthly fee: $12+
  • 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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  • Best for industry-specific pricing
  • Monthly fee: $12+
  • Interchange-plus pricing
  • Best for industry-specific pricing
  • Monthly fee: $12+
  • Interchange-plus pricing

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Helcim

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  • Best for interchange-plus pricing with no monthly fee
  • No monthly fee
  • Interchange-plus pricing
  • Best for interchange-plus pricing with no monthly fee
  • No monthly fee
  • Interchange-plus pricing

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Stripe Payments

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

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Read more below to learn why we chose these options.

Table of Contents

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 administrative fees if you can avoid them, many payment processors that offer a good economy of scale for high-volume merchants do charge administrative 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.

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 Fees Monthly Fee Processing Rate Plan(s)
Square 2.6% + $0.10 (card present); 2.9% + $0.30 (card not present) $0+ Flat-Rate
National Processing 2.5% + $0.10 (card present); 2.9% + $0.30 (card not present) $12+ Flat-Rate
Payment Cloud 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 + 0.40% + $0.08/card-present transaction $25+ Interchange-Plus
Helcim Interchange + 0.40% + $0.08/card-present transaction; Interchange + 0.50% + $0.25/card-not-present transaction $0 Interchange-Plus
Stripe 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% + $0.15 (card not present) $0 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 reporting, invoicing, inventory management, tokenized credit card payments, email marketing, and no monthly fees, 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:

  • Aggregated account for credit and debit card processing
  • Mobile card reader (magstripe-only) included with an account
  • EMV and NFC-capable card readers are available
  • Square Register POS system available
  • ACH processing included with every account
  • Square Online Store for eCommerce businesses
  • Basic Square Invoices feature included at no extra cost
  • 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
  • 2.9% + $0.30/invoice paid via credit or debit card
  • 3.5% + $0.15/invoice paid via card on file
  • 1%/ACH transaction (minimum $1 charge)
  • No ACH reject or chargeback fees
  • Square Contactless & Chip Reader: $49 each
  • Square Stand With Contactless & Chip Reader: $169
  • Square Terminal: $299
  • Square Register: $799 (or $39/month for 24 months)

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

  • Cheap interchange-plus pricing
  • Low-cost ACH payment processing
  • Good online reputation

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-Frill 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 at competitive rates -- which makes it an excellent choice for businesses that don't need the software suites and extended services offered by many of its competitors.

While many prominent flat-rate processing services have no monthly fees, National Processing does charge $12 per month for the service. In exchange, you'll get lower flat rates on in-person transactions. Just note that there are no comparable savings on online transactions.

National Processing Features

National Processing offers a lean but solid feature set.

  • “Free” credit card terminal available
  • Offers ACH and echeck processing as an add-on
  • Offers mobile processing with a Clover Go card reader
  • Offers a choice of plans
  • No long-term contract if processing hardware is purchased outright

National Processing Pricing

  • $12 or $19/month account fee
  • $7.95/month 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 echeck processing (optional)
  • 2.9% + $0.30 per online transaction
  • 2.5% + $0.10 per in-person transaction (at the $12/monthly fee)
  • 2.41% + $0.10 per in-person transaction (at the $19/monthly fee)
  • 3.5% + $0.15 per manually keyed-in transaction

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 & Services5.0

Contract2.8

Sales & Advertising Transparency3.9

Customer Service4.2

User Reviews4.0



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 are available
  • 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)

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

  • It 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, including high-risk businesses (which should expect higher fees, of course).

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 are 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
  • $5.00/month gateway fee (optional)
  • $15 chargeback fee
  • No PCI compliance fee
  • No early termination fee

Get Started With Host Merchant Services

Read our in-depth review

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Dharma Merchant Services: Best for 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 Reviews4.5



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.

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 $12-$15 (additional fees may apply if you need a payment gateway), 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

  • $25/month account fee ($20/month for nonprofits)
  • 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

Get Started With Dharma Merchant Services

Read our in-depth review

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Helcim: Best for interchange-plus pricing with no monthly fee

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 No Monthly Fee Interchange-Plus Pricing

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. And it has a respectable international reach to boot.

Helcim's POS system runs on most devices, 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 for in-person payments
  • Helcim Payments app for mobile processing
  • Virtual terminal included with each account
  • Helcim POS software (requires tablet, laptop, or desktop computer)
  • Access to Helcim API for customized credit card payments

Helcim Pricing

  • Interchange + 0.40% + $0.08/card-present transaction (volume discounts available)
  • Interchange + 0.50% + $0.25/card-not-present transaction (volume discounts available)
  • Helcim Card Reader: $109/unit
  • No monthly or annual account fees
  • No PCI compliance fees
  • No monthly minimum

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 Robus APIs

What is Stripe, and how does it work? Like Square, Stripe 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
  • 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
  • $1.50/instant bank account validation
  • Additional fees for optional add-on services

Get Started With Stripe Payments

Read our in-depth review

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Chase Payment Solutions℠ : Best for cheap flat-rate pricing

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
  • Predictable flat-rate pricing

Cons

  • Free credit card terminal requires a long-term contract
  • Limited pricing information disclosed

Why We Chose Chase Payment Solutions For Its Cheap Flat-Rate Processing

Chase Payment Solutions is one of the largest processors in the United States and is a direct processor. 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 with no long-term contracts
  • Choice of proprietary Orbital payment gateway or Authorize.Net
  • Virtual terminal included with each account
  • Chase Mobile app and QuickAccept card reader for mobile payments
  • Next-day funding for Chase business bank account holders
  • Choice of processing hardware, including Chase Smart Terminal or 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% + $0.15/card-not-present transaction
  • 3.5% + $0.10/keyed-in transaction
  • $0 monthly fee
  • No PCI compliance fee
  • No gateway fee
  • Chase QuickAccept contactless mobile card reader: $49.95
  • Ingenico Desk/5000 countertop terminal: $299
  • Ingenico Move/5000 wireless terminal: $399
  • $10/chargeback

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.

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


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 between 1.29% +$0.05 to 3.29% + $0.10. 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 Much Does A Credit Card Machine Cost Per Month?

The monthly costs for a credit card machine can range from $0 to $60 or more depending on the software chosen. Smart credit card terminals that run POS software often require subscription fees. However, some providers, such as Square, offer free software plans for their hardware. The monthly cost is in addition to any credit card processing fees incurred for sales.

5 Ways To Get The Cheapest Credit Card Processing For Small Business

Credit card processing fees are an expense, and, as a savvy merchant, you want to minimize unnecessary costs. (Learn more about how to lower or offset your credit card processing fees.)

Since not accepting credit cards is presumably out of the question, let’s look at ways to avoid spending too much on credit card processing.

Make Sure That Monthly Fee Is Worth It

Gone is the era where accepting credit cards meant paying a monthly administrative fee or signing a long-term contract. New businesses with low transaction volumes, particularly, should be wary of monthly fees, as they can easily become unnecessary. Third-party processors and similar services aimed at newer businesses can take monthly fees out of the equation entirely.

That doesn’t mean monthly fees are always bad, however. Higher-volume businesses can take advantage of pricing models such as interchange-plus and subscription pricing, which offer cheaper transactions in exchange for monthly fees.

Watch Out For Miscellaneous Fees

Like your cell phone service provider, credit card services can dream up almost any fees they want and bury them deep in your merchant services agreement. You want to have as few of these fees as possible.

Dealing with a credit card processor that is transparent and upfront about all of its costs can eliminate a lot of nasty surprises down the road. You can learn more about common fees, some legitimate and some not, with our merchant services fee guide.

Avoid Processors With Monthly Minimums

With monthly minimums, if you don’t process enough money in a given month to meet the minimum amount you have to pay your processor, you’ll be charged the difference between your monthly minimum and your actual processing fees for that month. Thankfully, most of our preferred providers don’t impose monthly minimums.

Seek Transparent Merchant Services

While this may not be possible for high-risk merchant account providers that price on a case-by-case basis, it’s generally best to work with a payment processor that lays all of its cards on the table. Hidden terms and clauses often obfuscate higher costs.

Don't Be Afraid To Negotiate With Your Current Provider

There’s a lot of competition in the merchant account provider space, which means you may have more leverage than you think you do when it comes to service costs. If you’re outgrowing your plan, check with your provider to see if they can offer you one that better fits your sales volume and the types of transactions your customers make.

While you may be a bit more constrained when looking for high-risk merchant services, you still shouldn’t assume that the first offer on the table is the best you can do.

With the cost of everything going up, it’s also important to know how inflation can affect businesses and find ways to mitigate those increases for your small business.

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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Chris Motola

Chris Motola

Senior Staff Writer at Merchant Maverick
Chris has been writing about small business topics since 2003. In 2015, he joined Merchant Maverick, where he writes about business financing, payment processing, and demographic trends in entrepreneurship. Chris has been featured in Fox Business, ABC News, Yahoo Finance, GoBankingRates, Newsweek, BizJournals, and other publications. He has a Bachelor’s of Arts in English Writing Arts from SUNY Oswego, and a Masters of Science in Interactive Media from the University of Central Florida. He currently resides in the Hudson Valley region of New York.
Chris Motola
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Chris Motola

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