How we make this list: we compare pricing pages, product documentation and public user reviews. Ratings come from G2, Capterra or Trustpilot, with the date we checked them.
Key takeaways
- Square is the top overall pick for small businesses under 250,000 dollars a year, with flat rate pricing, no monthly fees, no contracts and a free card reader.
- Helcim is the strongest interchange-plus alternative for businesses processing 25,000 to 500,000 dollars a year, with no monthly fee and a margin that shrinks as volume grows.
- Stripe is the best choice for online and software businesses that need developer friendly APIs, at 2.9 percent plus 30 cents online.
- Interchange-plus is almost always cheaper than flat rate above 10,000 to 15,000 dollars a month, while flat rate wins on simplicity below that level.
Quick comparison
| Tool | Best for | Starting price | Free plan |
|---|
 Square | New businesses and simplicity | 2.6% + $0.10 in person | Yes |
 Stripe | Online businesses and developers | 2.9% + $0.30 online | No |
 Helcim | Transparent interchange-plus | Interchange + 0.4% + $0.08 | Yes |
 Stax | High volume subscription pricing | $99 per month | No |
 PayPal | Checkout conversion and trust | 2.29% + $0.09 in person | No |
 Toast | Restaurants | 2.49% + $0.15 in person | Yes |
 Clover | Retail and service POS | 2.3% + $0.10 in person | No |
 Payment Depot | High volume membership pricing | $79 per month | No |
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The best credit card processing companies
#1Square
Best for: New businesses and simplicity4.6/5 on
G2 (1,208 reviews, checked Oct 2026)
Visit squareup.com
Starting price2.6% + $0.10 in person
Free planYes
Square is the top overall pick for small businesses, especially those processing under 250,000 dollars a year, because it combines flat rate pricing, no monthly fees, no contracts and a free POS app and card reader. In person pricing is 2.6 percent plus 10 cents, and online pricing is 2.9 percent plus 30 cents, which makes costs predictable from day one.
Flat rate hides the markup, so at high volume an interchange-plus plan usually wins, and Square paid plans lower the percentage in exchange for a monthly subscription. For a new business that wants to start taking cards today with no monthly bill, Square is the pick.
What we like- No monthly fees and no contracts
- Free POS app and card reader
- Simple flat rate pricing
Watch out for- Flat rate hides the markup and costs more at high volume
- Online rate is 2.9 percent plus 30 cents
- Paid plans needed for lower rates
#2Stripe
Best for: Online businesses and developers4.2/5 on
G2 (462 reviews, checked Oct 2026)
Visit stripe.com
Starting price2.9% + $0.30 online
Free planNo
Stripe is the best choice for online and software businesses that need developer friendly APIs, with online pricing at 2.9 percent plus 30 cents and in person at 2.7 percent plus 5 cents, and no monthly fee. Subscriptions, marketplaces and global payments are built in, which suits software, SaaS and ecommerce teams.
In person selling needs a card reader from 59 dollars, and at high volume interchange-plus beats the flat online rate. For an online business that builds its own checkout, Stripe is the pick.
What we like- Extensive APIs and developer tools
- No monthly fee
- Online first with subscriptions and marketplace support
Watch out for- In person needs hardware at 59 dollars for a reader
- Online rate is higher than interchange-plus at volume
- Support is largely online
#3Helcim
Best for: Transparent interchange-plus3.9/5 on
G2 (19 reviews, checked Oct 2026)
Visit helcim.com
Starting priceInterchange + 0.4% + $0.08
Free planYes
Helcim is the standout for growing businesses that want interchange-plus pricing without negotiating: no monthly fee, and the margin shrinks automatically as volume grows, from 0.40 percent down to 0.15 percent at very high volume. Published in person pricing is interchange plus 0.40 percent plus 8 cents in one comparison and interchange plus 0.30 percent plus 8 cents in another, with online at interchange plus 0.50 percent plus 25 cents, so request an estimate using your actual card mix.
A terminal costs 99 dollars, and POS depth trails Square. For a growing business processing over 10,000 dollars a month that wants transparent pricing, Helcim is the pick.
What we like- No monthly fee
- Interchange-plus with automatic volume discounts
- Margin drops to 0.15 percent above 1 million dollars a month
Watch out for- Terminal costs 99 dollars
- In person rate in some comparisons is interchange plus 0.30 percent plus 8 cents, so confirm your card mix
- Less POS depth than Square
Starting price$99 per month
Free planNo
Stax, formerly FattMerchant, charges a subscription of 99 to 199 dollars a month plus interchange with a small per transaction fee and zero percent markup, which wins for high volume businesses processing 50,000 dollars a month or more. On 50,000 dollars a month volume, the savings versus flat rate can reach 3,000 to 6,000 dollars a year in published comparisons.
The subscription only makes sense above that volume threshold, and the brand is smaller than Square or Stripe. For a high volume business that wants subscription pricing, Stax is the pick.
What we like- Zero percent markup plus 8 cents in person and 15 cents online
- Subscription model wins above about 50,000 dollars a month
- Free terminal on some plans
Watch out for- 99 to 199 dollars a month subscription
- Only makes sense above high volume
- Smaller brand than Square or Stripe
#5PayPal
Best for: Checkout conversion and trust4.4/5 on
G2 (2,751 reviews, checked Oct 2026)
Visit paypal.com
Starting price2.29% + $0.09 in person
Free planNo
PayPal converts well because buyers trust it, with published comparisons crediting a 5 to 10 percent checkout conversion lift. In person pricing is 2.29 percent plus 9 cents, online is 2.99 percent plus 49 cents, and setup is fast with readers from 29 to 79 dollars.
Online fees run higher than Stripe, so run the numbers on your average order value before defaulting to PayPal, and account holds frustrate some sellers. For a business where checkout trust drives sales, PayPal is the pick, ideally alongside Stripe or Square.
What we like- Widely recognized checkout that lifts conversion by 5 to 10 percent in published comparisons
- Fast setup
- Readers from 29 to 79 dollars
Watch out for- Online rate 2.99 percent plus 49 cents is higher than Stripe
- Card and wallet fees run higher than Stripe
- Account holds frustrate some sellers
Starting price2.49% + $0.15 in person
Free planYes
Toast is built for restaurants, with kitchen display, menu management and table tools alongside payments, and a Starter plan at no monthly fee with a free kit. In person pricing is 2.49 percent plus 15 cents, which is competitive for counter and table service.
Online pricing at 3.5 percent plus 15 cents is high, and the restaurant focus suits other businesses less. For a restaurant that wants payments plus restaurant operations in one system, Toast is the pick.
What we like- Built for restaurants with kitchen, menu and table tools
- Starter plan at no monthly fee with a free kit
- In person rate 2.49 percent plus 15 cents
Watch out for- Online rate 3.5 percent plus 15 cents is high
- Restaurant focus suits other businesses less
- Hardware and plan terms vary
#7Clover
Best for: Retail and service POS3.8/5 on
G2 (108 reviews, checked Oct 2026)
Visit clover.com
Starting price2.3% + $0.10 in person
Free planNo
Clover is an all in one retail and service POS, with in person rates from 2.3 to 2.6 percent plus 10 cents and online rates up to 3.5 percent plus 10 cents, plus an app marketplace for add ons like inventory and loyalty. The hardware range covers countertop terminals to full POS stations.
Monthly fees start at 14.95 dollars, terminals cost 599 dollars or more in some comparisons, and online rates are high. For a retail or service business that wants a complete POS with payments built in, Clover is the pick.
What we like- All in one retail and restaurant POS
- In person rates from 2.3 percent plus 10 cents
- App marketplace for add ons
Watch out for- Monthly fees from 14.95 dollars
- Terminals from 599 dollars in some comparisons
- Online rate up to 3.5 percent plus 10 cents
Starting price$79 per month
Free planNo
Payment Depot uses a membership model: 79 to 199 dollars a month plus interchange with a small markup of 0.20 percent online and 0.15 percent in person. That structure suits high volume members processing above 100,000 dollars a month, where the low markup beats flat rate by a wide margin.
Below that volume the membership fee eats the savings, and POS depth trails Square and Clover. For a very high volume business that wants the lowest markup, Payment Depot is the pick.
What we like- Interchange plus 0.20 percent online and 0.15 percent in person
- Membership model suits businesses above 100,000 dollars a month
- Transparent markup
Watch out for- Membership costs 79 to 199 dollars a month
- Only makes sense at high volume
- Smaller brand with less POS depth
How we chose
We compared published in person and online rates, monthly fees, hardware costs and pricing models from vendor pricing pages and independent comparisons checked in October 2026, and we weighed flat rate simplicity against interchange-plus transparency, POS depth, developer tools and volume thresholds. We noted where published rates conflict across sources rather than inventing a single figure. No company was credited with hands-on testing, and no savings figures beyond published comparisons were invented for this guide. Processing fees are business costs, not financial advice, and your effective rate depends on your card mix.
What to check before you pick
First, understand the two pricing models. Flat rate charges one fixed percentage and per transaction fee for all card types, which is simple and predictable but hides the markup. Interchange-plus passes through the wholesale interchange cost, typically 1.3 to 2.3 percent, and adds a transparent markup, which is almost always cheaper above 10,000 to 15,000 dollars a month. The wholesale interchange rate makes up 70 to 90 percent of total fees and is non negotiable; only the processor markup is negotiable.
Second, calculate your effective rate, not the sticker rate: published comparisons note that effective rates usually run 0.20 to 0.60 percent above sticker due to card mix and hidden fees. Compare three or more quotes using your actual statements, since that typically saves 3,000 to 6,000 dollars a year at moderate volume. Finally, check contract terms, hardware costs, chargeback fees and whether rates rise after a promotional period, since those terms can erase a low headline rate.
Frequently asked questions
What is the best credit card processor for a small business?
Square for most small businesses under 250,000 dollars a year, thanks to flat rate pricing, no monthly fees and a free reader. Helcim wins for growing businesses that want transparent interchange-plus pricing, and Stripe wins for online businesses that need APIs.
How much do credit card processors charge?
Typical fees in 2026 range from 1.3 to 3.5 percent per transaction plus 10 to 30 cents per sale. Most small businesses on flat rate pay about 2.6 percent in person and 2.9 percent online, while interchange-plus plans add a transparent markup to wholesale interchange.
What is the difference between flat rate and interchange-plus?
Flat rate charges one percentage for all cards, hiding the markup. Interchange-plus passes through wholesale interchange and adds a visible markup, which is more transparent and usually cheaper above 10,000 to 15,000 dollars a month.
Should I pay a monthly fee for processing?
Only if volume justifies it. Subscription plans like Stax at 99 dollars a month or Payment Depot at 79 dollars a month win above 50,000 to 100,000 dollars a month, but cost more than free plans below that level. Calculate your effective rate at your actual volume before committing.
Do I need separate hardware for in person payments?
Yes for counter sales: Square offers a free reader, Helcim charges 99 dollars for a terminal, and Clover terminals cost 599 dollars or more. Factor hardware into year one cost, not just the processing rate.
Can I negotiate processing rates?
Yes, on the markup only, since interchange is set by the card networks and is non negotiable. Get three or more written quotes using your actual statements, and ask for interchange-plus if your volume exceeds 10,000 dollars a month.
Sources we checked (4)
- https://getholdings.com/resources/guides/best-payment-processing-small-business
- https://www.mypayadvisor.com/comparisons
- https://sidebysidereviews.com/credit-card-processing-reviews/
- https://rankite.com/blog/best-payment-gateway-software
Is your product missing or out of date?
We review this list regularly. Vendors can request a listing, send updated pricing or ask about featured placement.
Shihab Mia · Founder, Rankite
Shihab has 5+ years in B2B and SaaS SEO. He writes Rankite's software buying guides from pricing pages, documentation and public user reviews. More about Shihab.