Best Credit Card Processing Companies In 2023

These credit card payment processors offer merchant services with reasonable costs, accessibility, transparency, and good overall value.

  • Frank has been writing about payment processing and business services since 2015. He is a retired Air Force officer and a former practicing attorney. He has a Bachelor of Science degree in Psychology from The Pennsylvania State University and a Juris Doctorate degree from the Ventura College of Law, and currently resides in Paso Robles, California.
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Credit card processing for small businesses is essential to boost overall sales and offer convenient payment methods for your customers. Unfortunately, it’s a rather complex subject, making choosing a great payment processor challenging.

Making the best choice for your business comes down to more than just overall cost. Hardware and software compatibility, flexible terms on your merchant agreement, and high-quality customer support are also essential features.

We recommend choosing the provider that offers the most overall value for your credit card processing needs. This means understanding the features and credit card processing rates and fees associated with each provider.

This article will review our top recommendations for credit card processing and explain how to find the best provider for your business.

Learn More About Our Top Picks

Read more below to learn why we chose these options.

What Is Credit Card Processing?

Credit card processing refers to the sequence of steps for approving and processing credit and debit card transactions. Merchants can accept payments in person, online, or by manually entering a customer’s card information. The credit card processing network checks for indicators of possible fraud and ensures that merchants get paid for approved transactions.

In today’s complex and competitive payments environment, almost all providers offer a variety of services in addition to basic credit card processing. The following products and services are typically offered through either a proprietary, in-house product, or a third-party partnership:

  • Payment gateway for e-commerce transactions
  • Virtual terminal for manually keying in payments
  • Processing hardware (mobile card readers, credit card terminals, or point-of-sale (POS) systems)
  • Online analytics and reporting
  • Support for alternate payment methods (ACH transfers, digital wallets, payment links, QR codes, cryptocurrency, etc.)
  • Online shopping cart integration or webstore builder
  • Inventory management features
  • Invoice generation & payment tracking

Compare Best Credit Card Payment Processing Companies For Small Businesses

Company Account Type Monthly Fee Processing Rate Plan(s) National Processing Merchant Account $9.95 Interchange-Plus or Membership Square Aggregated Account $0.00 Flat-Rate PaymentCloud Merchant Account Varies Varies CDGcommerce Merchant Account $0-199 Flat-Rate, Interchange-Plus, or Membership Clover Aggregated Account $0.00-$94.85 Flat-Rate Host Merchant Services Merchant Account $14.99 Interchange-Plus Stripe Aggregated Account $0.00 Flat-Rate Dharma Merchant Services Merchant Account $25 ($20 for nonprofits) Interchange-Plus Helcim Merchant Account $0.00 Interchange-Plus Chase Payment Solutions Merchant Account $0.00 Flat-Rate or Interchange-Plus

A Closer Look At 10 Best Small Business Credit Card Payment Processing Companies

The best payment processors for small businesses offer a combination of affordable costs, flexible contract terms, and transparent sales practices. High-quality customer support sets them apart from their competitors. Here are our picks for the best credit card processors for small businesses:

  • National Processing: Best For Low-Cost ACH/eCheck Processing
  • PaymentCloud: Best For High-Risk Businesses
  • Square: Best For New Startups
  • CDGcommerce: Best For eCommerce Startups
  • Clover POS: Best For Sophisticated Processing Hardware
  • Host Merchant Services: Best For Mid-Sized High & Low-Risk Businesses
  • Stripe Payments: Best For eCommerce-Only Businesses
  • Dharma Merchant Services: Best For Nonprofits & Charitable Giving
  • Helcim: Best For International Businesses
  • Chase Payment Solutions℠: Best For Low-Cost, Full-Service Merchant Accounts

1. National Processing: Best For Low-Cost ACH/eCheck Processing

National Processing

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2. PaymentCloud: Best For High-Risk Businesses

PaymentCloud

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3. Square: Best For New Startups

Square

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4. CDGcommerce: Best For eCommerce Startups

CDGcommerce

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5. Clover: Best For Sophisticated Processing Hardware

Clover POS

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6. Host Merchant Services: Best For Mid-Sized High & Low-Risk Businesses

Host Merchant Services

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7. Stripe: Best For eCommerce-Only Businesses

Stripe Payments

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8. Dharma Merchant Services: Best For Nonprofits & Charitable Giving

Dharma Merchant Services

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9. Helcim: Best For International Businesses

Helcim

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10. Chase Payment Solutions: Best For Low-Cost, Full-Service Merchant Accounts

Chase Payment Solutions℠

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Our Methodology For Choosing The Best Credit Card Processing Companies For Small Businesses

In evaluating credit card processing companies and selecting the best ones for small businesses, we focused on four main considerations: pricing, contract terms, features, and customer support. For serving the needs of the small business community, the best credit card processing companies will offer either flat-rate or interchange-plus pricing, month-to-month billing with no long-term contracts, a variety of essential hardware and software features, and excellent customer support.

How Credit Card Processing Works

The credit card transaction process usually takes place so quickly that most merchants and consumers are unaware of how many things have to happen before a transaction can be completed. This process includes three sequential stages, each of which involves multiple steps. The three stages of credit card processing include:

  1. Authorization
  2. Authentication
  3. Settlement

Costs Associated With Credit Card Processing

Credit card processing has a well-deserved reputation for being an expensive, but necessary option for most businesses. However, there is a lot of variability among providers when it comes to costs, making it possible to save money by choosing a good provider and avoiding unnecessary optional add-ons.

How To Choose The Best Credit Card Payment Processing Company

Determining the best credit card processing company for your business involves evaluating many factors to narrow your search down as much as possible before reaching out to a provider’s sales department. Here are the primary factors to consider when choosing a credit card processor, along with brief explanations of how they will affect your final choice:

The first (and perhaps most important) factor to consider will be whether your business needs a full-service merchant account for payment processing or if you’d be better served by signing up with a payment service provider (PSP), such as Square. For very small or newly launched businesses, PSPs offer an easy and affordable way to begin accepting credit cards without the confusing pricing and extensive onboarding requirements of a full-service merchant account. At the same time, account stability can be a concern, as you’re more likely to experience sudden account issues. You will want to avoid merchant account holds, freezes, and terminations.

Full-service merchant services for small businesses are more stable and offer many additional features, but they tend to be more expensive and take longer to set up. Your monthly processing volume will be the main factor in choosing between these two options. Generally, PSPs are a better choice if your processing volume is less than $5,000 per month. However, this “tipping point” can be anywhere from $1,500/month to $10,000/month, depending on the nature of your business and the processing rates your merchant account provider offers.