10 Best Credit Card Processing Companies 2024 (2024)

• Stripe: Best for Omnichannel Businesses
• Fattmerchant (Stax): Best for High-Volume Sellers
• Square: Best for Mobile Transactions
• PayPal: Best for PayPal and Venmo
• Clover: Best for Specialty POS Needs
• Payment Depot: Best for Lowest Card Processing Rates
• Helcim: Best for Fast-Growing Businesses
• Gravity Payments: Best for Niche Industries
• Merchant One: Best for Tiered Processing Fees
• Elavon Payment Processing: Best for International Businesses

Forbes Advisor analyzed many factors to determine these rankings for the best credit card processing companies. We narrowed our field of contenders to 15 finalists that we scored across six categories of features with 31 different metrics. These were weighted to favor features that benefit small business owners. We then ranked each credit card processor using a five-star rating system, with five out of five being the highest.

Here are more details about the features we researched.

Please note: While we gathered data on pricing and fees, these factors did not directly contribute to the scoring due to the non-uniformity of pricing structures among providers. Therefore, pricing is not listed as a separate category in our methodology.

Expert Score

The expert score forms 20% of our overall evaluation. In this section, we consider various factors that reflect the overall quality and value of the credit card processing company. These factors include standout features that distinguish the company from its competitors, value for money in terms of service provision relative to cost, the company’s popularity in the market and the ease of using its services. These combined aspects create a comprehensive picture of what each provider brings to the table and how they compare to others in the industry.

Payment Options

Payment options form another 20% of our evaluation criteria. Here, we assess the variety and flexibility of payment methods that the company supports. We consider support for modern, contactless payment solutions, such as Apple Pay and Google Pay, integration capabilities with point-of-sale (POS) systems, and whether major credit cards, such as Visa, Mastercard, Discover and American Express, are accepted. Providers that support a broad range of payment methods scored higher in this category as they demonstrate their adaptability to different business and customer needs.

General Features

In this category, which constitutes 35% of our overall score, we focus on the core and additional features the company offers. Features under review include the availability of a comprehensive reporting dashboard, invoicing capabilities, options for data exports, support for contactless payments, possibilities for software integrations, PCI compliance for data security and volume-based discounts that can benefit larger businesses. This in-depth examination of features allows us to assess the depth, breadth and utility of the services each provider offers.

Customer Reviews

This section, accounting for 10% of our evaluation, considers the company’s reputation among its users. We take into account reviews and ratings from trusted review platforms such as Trustpilot, G2 and Capterra. We also include the Better Business Bureau (BBB) rating and examine the ratio of BBB complaints to reviews. This allows us to gauge customer satisfaction levels and provide a real-world perspective on the services offered.

Mobile App

The mobile app category, which contributes 5% to the overall score, evaluates whether the company offers a mobile app and considers the app’s rating on both the iOS App Store and Google Play. This evaluation helps us understand how well the company adapts its services to the mobile platform and whether they meet users’ expectations.

Customer Support

Our final category, contributing 10% of the overall score, looks at the company’s customer support capabilities. We examine the availability of live chat, a knowledge base or help center, phone support and 24/7 customer support availability. Providers that offer extensive and readily available support scored higher, reflecting their commitment to ensuring a smooth user experience and addressing customer issues promptly.

Credit card processors make it possible for you to take credit card payments by connecting the various services involved in the process. These include credit card networks, issuing banks and your own payment processing account.

When a customer swipes their credit card at a store or pays online, a credit card processing company enables the secure transfer of customer data for payment approval, collects the funds from the issuing bank and deposits those funds to the merchant’s account within one to two business days.

The best credit card processing company for your business strikes the right balance of cost, functionality and support. Processing fees and monthly costs are the obvious starting points when comparing providers. However, considerations such as ease of use, support, integrated sales features and free software can help you spot the best value for your specific needs.

Here are a few questions to keep in mind when you shop for card processing services.

• What is your average sales volume per month? Higher transaction volumes equal lower processing fees. A good rule of thumb is once you reach $10,000 in monthly transactions, you can benefit from an interchange-plus or tiered processing service. Before then, a flat-rate service such as Square, Stripe or PayPal is very economical.
• Do you sell in-person, online, mobile or combined channels? Where you sell determines your processing hardware and system needs. If you sell in-store, you need checkout registers. If you sell on the go, you need mobile card readers and a mobile processing app or mobile POS. If you sell online, you need a secure payment gateway. If you combine sales methods, you need a payment processing service that seamlessly connects all of your sales within an integrated system.
• Do you need free equipment and POS systems? Free equipment and POS software add value to a service, even when paired with higher processing fees. When comparing services, consider what any free perks would cost if you went with a lower-fee processor that doesn’t provide them.
• Do you already have registers, terminals and POS software? A processing service that integrates with registers, terminals, POS systems or accounting software that you already use can save in upfront costs and minimize business interruptions.
• Is your business high-risk? High-risk merchants generally find the lowest fees with traditional merchant accounts with tiered pricing.
• Are you selling restricted items? Many popular card processing services limit what you can sell. If your business falls outside of their approved list, you’ll need a traditional merchant account provider.
• How fast do you need your funds? Virtually all card processing companies deposit funds within one to two business days, but charge an added fee for same-day deposits. If you need quick access to funds, look for a provider that offers this for free.
• Do you need 24/7 support? Most providers offer 24/7 service for network outages and other business-critical events, however, a few limit support at lower plan levels.
• Do you sell globally? You need a processing service that supports international cards and exchange rates.
• Do you use QR codes, payment links and online invoicing? You need a card processing service with an online portal feature that supports these cutting-edge payment methods.
• Do you want to accept e-checks and bank transfers? Look for card processing services that support ACH payments.
• Is your customer data going to be secure?It should go without saying that safely transmitting credit card information to your payment processor needs to be handled securely. Make sure that whatever company you choose adheres to payment card industry (PCI) compliance standards to keep these details safe.

The cost of credit card processing depends on various types of fees and individual companies’ pricing structures.

Credit Card Processing Fees

Understanding credit card processing fees is important for selecting the appropriate service. These fees typically include:

• Interchange Fees: Set by card brands such as Visa and Mastercard. These base costs of processing credit cards generally range from 1% to 2%. Factors influencing these rates include transaction type (higher for online sales), card type (lower for debit cards) and card brand (varying rates for different brands).
• Assessment Fees: Fixed per-transaction fees, usually between 1 to 5 cents, added to interchange fees. These are paid to card associations such as Visa and Mastercard.
• Processor Markup Fees: Charges by processing companies for their services. Varies based on fee structures such as interchange-plus, tiered rates or flat-rate fees.
• Monthly Fees: For additional services such as online gateways or PCI compliance. Some processors offer no monthly fees but incorporate higher flat-rate processing fees.
• Other Costs: Additional fees to consider include chargeback fees (vary among services), batch processing fees (charged by some providers), setup or termination fees (common in tiered rate plans), monthly minimum fees (if contracted volumes aren’t met) and same-day funding fees (for immediate access to funds).

Read more: Credit Card Processing Fees

Credit Card Processing Company Pricing Structures

Different pricing models cater to varying business needs. Key structures include:

• Flat-Rate Pricing: Offers a single rate for all transactions, typically ranging from 2.5% plus 10 cents to 3.5% plus 30 cents per transaction. Suitable for businesses with lower average transactions, it offers simplicity and often includes free tools such as POS software and card readers. In-person sales generally incur lower fees than online sales, with no variation based on card type or reward programs.
• Interchange-Plus Pricing: Adds a minimal fee to the base interchange rates. For instance, Helcim charges an added percentage and per-transaction fee, without monthly fees. Rates can be around 0.10% plus 5 cents to 0.50% plus 25 cents per transaction. Providers such as Payment Depot and Stax offer a monthly subscription with a minimal per-transaction fee. This model is transparent and often economical for businesses processing over $10,000 monthly.
• Tiered Pricing: Common in traditional merchant services, tiered plans categorize transactions into qualified, mid-qualified and non-qualified tiers based on various factors. Rates vary, with qualified transactions generally costing less. While detailed and complex, tiered pricing can be beneficial for high-volume businesses in specific industries.

How to Reduce Your Credit Card Processing Costs

Minimizing the impact of processing fees involves understanding and employing various strategies:

• Know Your Effective Rate: Calculate this by dividing total card processing fees by total card sales. Include all fees, such as monthly and statement fees. Understanding your effective rate helps assess if your current processing service is cost-effective.
• Negotiate Card Processing Rates: Regularly audit and negotiate your rates, especially if your processing volume has increased or you’ve expanded sales channels. Providers may offer better rates to retain high-volume merchants.
• Review Your Statement: Scrutinize each line item on your monthly statement. Understanding the specifics of interchange-plus and tiered statements ensures you’re aware of what you’re paying for, helping to identify any inconsistencies or areas for cost reduction.
• Reduce Fraudulent Charges: Implement security measures such as address verification for online sales and ID checks for in-person transactions. Enhanced security lowers the risk of fraud, thus reducing related fees.
• Consider Zero-Fee Processors: Some companies transfer processing fees to customers through a convenience fee. This model eliminates processing costs for the merchant and is effective in certain retail settings, particularly when combined with cash discount options.

Terminals, POS apps, store registers, online gateways and virtual terminals are a few of the many types of hardware and systems that enable card processing. Some credit card processing companies provide their own branded equipment. Others integrate with popular e-commerce platforms, payment gateways, card terminals and retail registers.

The right setup for your business depends on how and where you complete sales and collect payments—in-store, online, via mobile in-person sales or a combination of these.

Physical Card Processing Equipment

In-store and in-person sales settings use terminals and other processing hardware to physically swipe, dip or tap cards at checkout. Since the card is present, these types of sales are considered low-risk and carry the lowest processing fees:

• Point-of-sale (POS) store registers: These systems pair inventory, customer and sales management software with card readers, store registers and touchscreen terminals to complete a sale.
• Smart terminals: Compact all-in-one card processing terminals can be used in-store and in mobile settings via Wi-Fi and cellular connections.
• Basic registers and terminals: No-frills cash registers with card processing terminals work well for basic in-store retail and countertop services.
• Self-serve kiosk checkouts: Customer-facing touchscreen checkouts with built-in card readers are ideal for quick-serve cafes and other self-serve settings.
• Mobile card readers: Paired with a mobile app on a tablet or cell phone, mobile card readers physically process cards for all types of in-person mobile settings, such as fairs and markets, food trucks and mobile service calls.

Virtual and Online Credit Card Processing Systems

Online payments and virtual credit card sales require cloud-based systems called online portals or payment gateways to securely collect and transmit customers’ payment information. Since the card isn’t physically present and staff can’t verify identification, these types of sales are considered higher-risk and carry the highest card processing fees:

• E-commerce payment gateways: Payment gateways are secure online checkout systems that connect your online store to your card processing service to verify and complete online transactions.
• Online payment portals: Some processors have secure online portals that enable a range of modern online payment options including online invoice payments, automated recurring and subscription payments, QR code payments and payment links sent via text or email.
• Virtual terminals: Nearly all card processing services support keyed-in payments through a cloud-based online dashboard, typically called a virtual terminal.
• Mobile terminal or POS app: Many card processing services provide a mobile payment app that enables virtual keyed-in payments using tablets and smartphones. Some providers include this in a POS app that supports both keyed-in and card reader payments.

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