Credit card processing companies carry out the transactions behind the scenes of a business’ point-of-sale (POS) system or website. The following are the two types of small business credit card processing companies mentioned.
(a) All-in-one processors with POS functions, and
(b) Processors that connect POS to the interchange
Whether you decide to take on credit card processing capabilities from the get-go, or you gradually build your way up to it, it is certainly a valuable step toward preparing your business for major growth. This exciting moment will come with a weighty question, though—which credit card processing companies are worthy of processing your business’s transactions?
As it is known to the world that the market is full of credit card processors vying for your business, these questions will be tough to answer on your own. That’s why we have compiled the ultimate list of credit card payment processing companies for small businesses.
Square is a prominent cloud-based credit card processing and point-of-sale (POS) system. Square is considered the best choice for small businesses because it is easy to use, is competitively priced and comes with a free POS system. It offers and provides the best of the best lowest processing rates for businesses with an average sale below $20.
And surely, has no contract or monthly fee is to set up and comes with a free magstripe card reader to start accepting payments right away. Also, the top 5 square competitors for small business assist you in accepting the credit card payment processing.
Square has a flat-rate fee structure. There is no contract and no minimum or monthly fees. Businesses pay a flat rate for each transaction.
Following are mentioned the fee for square’s credit card processing
Square has made some alterations on its flat-rate fee of 2.75% to 2.6% + 10 cents per transaction.
Square can be used to accept credit card payments in-person, through your phone, via professional invoices, and on your website. Businesses receive funds from credit card payments less the flat-rate processing fees in their bank accounts the next day. Businesses can also pay an additional 1% fee to receive funds the same day.
Additional Square features include
Square has filled with various different hardware options to choose from. Every free Square account comes with a free magstripe card reader that can accept card payments on any iPad, iPhone, or Android device. It also has Square Terminal for $399, and Square Register for $999, all of which have monthly payment plan options.
Square makes it super easy to accept mobile payments. Square’s mobile credit card processing features include:
Square has a lot of different options for businesses looking to accept payments online, including:
Square is blessed with its own free proprietary POS system that we recommend using with Square Payments. The free system has features such as basic inventory management, product and menu management, sales data and a customer directory.
Businesses can purchase additional features like loyalty programs and e-mail marketing. In addition, Square also has POS solutions for retail and restaurants, which are both $60 per month.
Square is free to set up and does not require any hardware purchases. The platform also includes a free POS system. It is a great option for any small business or businesses that are just getting started and want to keep costs low.
PayPal is one of the top-leading credit card processing companies that offer a credit card processing solution for businesses to accept payments online, in-store and over mobile and it is great for online sellers because it also allows businesses to accept PayPal payments, which can increase overall sales.
PayPal is a favorite payment method for many online shoppers and accounts for 20% of all e-commerce transactions.
PayPal has flat-rate payment processing fees which are quite similar to Square has. However, PayPal comes up with more payment options for online businesses, including PayPal, PayPal Credit, and Venmo.
PayPal fees include
PayPal is an ideal option for online businesses because customers can pay without entering any card information if they already have a PayPal or Venmo account set up.
This option helps to eliminate and minimize security concerns and stress and also provides a more seamless checkout process with fewer clicks.
Therefore, small to a well-established business often prefer using Paypal is among the best credit card processing companies.
Additional PayPal features include
PayPal Here hardware options include
Just as same as square, PayPal has a free app with a basic POS interface, called PalPal Here, for accepting payments on the go. However, unlike Square, PalPal does not come up with online mode. So, in order to accept mobile payments with PayPal, you need an internet connection.
PayPal is a fantastic option for e-Commerce businesses. It offers plenty of different payment options in addition to standard credit cards. In addition, the online transaction fees are comparable to the other solutions on our list, such as Square and Cayan.
As similar to Square, PayPal also has its own free basic POS system. PayPal is used just as a credit card processor within other points of sale systems like Vend, Lavu, TouchBistro and more.
PayPal is free to use and is a great asset to your online store. Set up your free account today to offer customer-friendly payment options for your online business.
Stripe is a cloud-based payment processing system that allows small businesses to accept payments online. With the aim of handling more complex payments, A stripe was designed to handle more complex payment situations including subscriptions, recurring fees and storing card data. Stripe is the ideal option and solution for businesses that process or execute recurring payments for subscriptions or memberships.
Stripe offers two kinds of pricing named pay as you go and enterprise. The pay as you go plan charges 2.9% plus 30 cents per transaction, which is consistent with what most companies charge for online payments. For enterprise plans, businesses must contact Stripe for a custom quote. Except for the transaction fee, Stripe is free to use and set up.
Stripe accepts credit and debit card payments, ACH credit and debit payments, Apple and Google Wallet payments, AliPay and international credit cards.
Additional Stripe features include:
Stripe is only for online payments and has no requirement of hardware as this certainly keeps costs low, Stripe’s inability to work with mobile payments or POS systems could easily rule it out as a card processing option for businesses who have the desire to sell via multiple channels using the same credit card processing company.
Stripe is an online-only card processing solution and does not offer any mobile features. For mobile payments, we suggest using Square because it has a free POS-point of sale which is popularly known as a point of sales, card reader and can accept payments offline.
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Stripe is capable of offering plenty of developer tools that make it easy for companies to build subscription and automatic billing solutions with solid fraud protection. It also has the capability of accepting ACH payments, which is an ideal option for memberships and recurring fees. Stripe can be used with just about any major e-Commerce platform or on any custom website.
Stripe was only made for online payments so that does not have compatibility to work with any in-store POS systems. For businesses that will primarily sell in-store, look for Square, Cayan, Chase, or Dharma.
Stripe is free, easy to set up and requires no contract; businesses simply pay as they go. Stripe is the ideal credit card processing company for businesses with recurring online payments.
Chase Merchant Services basically is known as formerly Chase Paymentech which is a part of JPMorgan Chase, one of the largest banks in the country. Chase has features to collaborate with both processor and receiving bank in a transaction, which can provide business owners peace of mind and allow business owners faster access to transaction funds.
Entirely, Chase is a good option for businesses that have a wish and desire to work with a traditional bank for their payment processing task.
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Chase Merchant Services Pricing
Chase Merchant Services pricing is entirely quote based that means there will be some flexibility when it comes to payment structure and pricing. Chase offers both interchange-plus pricing and flat-rate pricing. We recommend opting for interchange-plus pricing if possible.
Chase Merchant Services Features
Chase Merchant Services is a direct processor, meaning there is no middleman between the merchant account and the bank. It is a good alternative for businesses that do not want to use a third party, and would rather work directly with a bank, especially if they already have a Chase Business account. Additional Chase Merchant Services features include
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Chase Merchant Services Equipment
Chase has unique offerings for business owners such as the option of buying payment terminals outright or renting them on a month-to-month basis. Their selection of terminals include EMV-compliant Verifone terminals. So, here businesses have got a job to contact Chase for particular pricing, as it is not publicly available.
Chase is not only restricted to just a company or bank but has a well-developed app that can be used with iOS and Android, and an eDynamo card reader that is EMV compliant. Chase Merchant Services includes sometimes the free mobile reader, make sure to ask about that when negotiating plans and pricing.
For those who sell things online, Chase has brought a proprietary Orbital Payment Gateway with great ease. Chase also works with many other third-party gateways such as Authorize.net. So, Chase should work just fine with any major e-Commerce platform or website.
Chase does not have any built-in POS functions (aside from the separate mobile checkout app) and is designed to be used with a POS system or other business management software. Chase Merchant Services can work with the most popular and top-rated POS systems.
Chase Merchant Services is a great option for small businesses that want a streamlined, behind-the-scenes process with their payments and bank.
Dharma is a merchant services provider that allows businesses to accept credit card payments in-store and online. Dharma stands out for offering the most competitive interchange-plus pricing available, which is a good fit and match for businesses that have average sales of more than $20. True, Because of its reputed standard and rapidly growing popularity, Dharma only works with businesses that do $10,000 or over in monthly sales.
Dharma grants you interchange-plus pricing like Cayan, but Dharma’s fees are actually lower.
Other Dharma fees include
As we have known Dharma provides low fees and a transparent pricing structure that is a great option for businesses that can meet the $10,000 monthly minimum but has the considerable capability to integrate with various card readers, terminals, and POS systems.
Additional Dharma features include
Since Dharma is a merchant service provider, it is majorly used for in-store, mobile and online sales. Their recommended hardware includes the following options
Dharma effectively works with Clover Go, the mobile version of Clover POS System, to accept mobile payments on the go. However, Clover requires an internet connection. Our top pick for mobile payments is Square.
Dharma integrates with many popular e-Commerce platforms via API connections. Online sellers can pair Dharma with Authorize.net to easily accept payments on nearly all e-Commerce platforms.
POS – Point of Sale Compatibilities
Since Dharma is a merchant service provider it works well with many POS – point of sales systems along with ShopKeep such as Cayan, Dharma does not have any inbuilt POI functions as Square has. And also has the functionality to be used with another POS -point of sale or business managing-like software.
Dharma certainly may not be the right choice for everyone, but their low prices are a great option for established businesses that process over $10,000 per month and are looking to cut down on card processing fees. Visit Dharma to learn more and start the approval process.
TSYS is a merchant services provider that allows small businesses to process credit and debit cards in-person through card terminals, via mobile processors and online with payment gateways.
TSYS has competitive processing rates and a tiered pricing structure. Overall, TSYS is a good option for businesses with a monthly sales volume of over $30,000 because they can save money with lower processing fees.
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Like many credit card processing companies, TSYS does not disclose any specific rates on their website. However, here is an estimate of some of their fees:
TSYS has lower processing rates than Square, but it also has statement fees, PCI fees, and monthly minimums that Square does not have, which is why TSYS is only a good option for larger businesses. According to our research on Best Merchant Services, TSYS is the best option for businesses with a monthly sales volume greater than $30,000.
Although it has the lowest pricing rates, TSYS offers around-the-clock customer service, including phone support, whereas Square only offers phone support to customers between 6 a.m. and 6 p.m. Pacific Time.
Additional TSYS features include:
Like Square, TSYS also provides a free magstripe card reader that is ideal for mobile payments. Additional readers are available for $25 each. Businesses also purchase in-store credit card terminals starting at $149 each. As entirely different from Square, TSYS does not offer payment plans for the hardware equipment.
TSYS also offers online card processing with their payment gateway with 100 percent complete security. TSYS e-Commerce features include:
TSYS works with most top-rated point of sale (POS) systems and business management software, so business owners can use the software they like best. It is quite contradicting and different from Square, purely a payment processor and does not have POS functions and designed to be used with another system.
TSYS is a great card processing company for businesses with high sales volumes because they can save money with lower processing fees. TSYS has a variety of solutions dedicated to small business owners.
Processing companies charge a fee for every transaction they process, so even small differences can add up, which is why we heavily weighted fees in our comparison. Also, we take care of whether each processing company offers mobile solutions and e-Commerce integrations or not so small businesses can accept payments online and with their phones.
The criteria and standard we used to evaluate and calculate the best credit card processing companies for small businesses include
1. Fees along with its gross potential cost –We looked at transaction fees, whether or not each company offers volume discounts, and how much their card readers cost.
2. Customer support –We give preference to what level of support each company offers: phone support, email, what hours they are available, and whether or not support is free.
3. Ease of use –Businesses should be able to rely on the fact that their card processor will work seamlessly every time.
4. Mobile functionality –We also look after whether or not each processing company provides mobile payment solutions.
5. E-commerce capabilities –We looked at whether or not each processing company offers online payment solutions.
6. Integrations and features Of Point of sale–We looked at how each processing company integrates with popular POS systems.
Based on the above-mentioned qualifications, Square is among the top choice or preference for small businesses and their owners. It is super simple to set up and to use for in-store, mobile, and online payments and also comes with a free POS system. Square’s credit card processing rates are not the lowest, but there is no contract and the flat-rate fee structure is very transparent.
Selecting a credit card processing company that you trust and are comfortable with, and credit card transactions play such a big role in every business. Card transactions are likely the major source of your income, so it’s important to have a system that is easy to use, cost-effective, and transparent.
Square is among the great credit card processing company for small businesses as it provides a streamlined, all-in-one system that is easy for both business owners and customers to use.
Entirely, and it is a feature-rich platform that provides an excellent value for a low price. Furthermore, businesses just use what they pay for and are never locked into a contract. Visit Square today for having a free set up an account!