Which credit card processing is cheapest for small businesses?

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When finding the cheapest credit card processing service, you should consider the features, monthly fees, rate, and ease of use. For small businesses that process $5,000 and below, a company should charge a flat rate on all transactions. If your business processes over $5,000 per month, you need a service that charges low annual fees and interchange-plus pricing. This brings us to the question, which credit card processing is cheapest for small businesses?

The best credit card processing services should provide businesses with the infrastructure to accept credit card payments. However, the price varies from one processor to the next. The cheap ones offer flexible terms and transparent pricing.

Why use a credit card processing service for your business?

Customers prefer to use credit cards to process payments. If you can’t process business cards, you could lose sales to your competitors. Besides convenience, credit card payments improve business cash flow when transactions clear quickly. Of course, when you accept payments, you eliminate bad checks.

Cheapest credit card processing companies

Before you choose a credit card processing company, you ought to factor in what your business requires. Will you accept payments in person? Do you have a dedicated merchant account? You should narrow your search based on the provider for the cheapest payment processing. Doing so will help you find a provider who falls within your budget. Here are the best credit card processors worthy of consideration.

Payline data

Payline Data offers interchange pricing at low rates. It’s ideal for businesses that sell in-store and online stores. In addition, it offers high merchant accounts in industries such as fantasy sports, online gaming, tobacco, and more.

One thing that makes Payline Data stack up against the competition is the transparent pricing model. If you subscribe to the in-person plan, you get an interchange-plus 0.2% and $10 per month. Alternatively, you can go for an online plan at 20 cents per online transaction.

Payline Data is suitable for low-risk businesses.


  • Excellent customer service
  • Transparent pricing
  • Allows over 200 e-commerce integrations
  • No early termination fees
  • The first month is free


  • No 24/7 support
  • One must meet the minimum monthly subscription fees


If you run a high-volume small business, Stax can be a good fit. While you may be turned off by the flat monthly subscription of $99, the low processing monthly fees will help you save money. Unlike most payment processors that offer interchange-plus pricing, Stax only charges 8 cents on swiped transactions and 15 cents or keyed per transaction.


  • Free POS hardware
  • 24/7 support
  • The plans include PCI compliance
  • Offers same-day funding and custom branding


  • The monthly fee can be a roadblock for businesses on a tight budget


Square is a reputable credit card processor for mobile payments. It stacks up against the competition due to low rates and a free e-commerce app. It also includes great security features such as reporting and invoicing.

On your dashboard, you’ll find built-in security, customer directory, and payment links. The company also offers a wide range of equipment and POS hardware.


  • Easy to set up
  • Free dispute management
  • Simple transparent pricing
  • No lock-in contracts


  • You have to pay a fee to access cash

Payment Depot

Payment Depot is one of the cheapest credit card processing companies that suit businesses with a high volume of credit card transactions. Since the membership depends on pricing, you pay a flat rate and a low per-transaction fee.

If your business transacts $25,000 or less, the cost is $79 plus 15 cents per transaction. The most popular membership costs $99 per month or 10 cents per transaction. But what makes Payment Depot unique is the 90-day trial period. If you decide to cancel the subscription during the trial period, you get a full refund.

Once you sign up, you can accept payments in-store and receive a merchant account. The Payment Depot provides integrations with Shopify, QuickBooks, 3dcart, and WooCommerce.


  • The membership pricing is friendly
  • You don’t need a high volume of transactions
  • No cancelation fees
  • Includes PCI compliance
  • You enjoy a 90-day trial period


  • It doesn’t work with high-risk merchants

Cheapest credit card processing rates

If you’re looking for the cheapest credit card processing rate, there are several factors to consider. Part of the reason there are so many players is to cater to different business needs. Some of the factors that will affect the actual processing rates are:

Monthly processing fees

This is trivial for high-volume businesses, but low-volume merchants may want to avoid them.

Processing volume

Credit card processing charges a monthly fee – the cost is offset by savings per transaction. High-volume businesses can take advantage of the interchange-plus plan.

Payment method

A flat-rate payment price helps lower the processing costs of specific cards.

Type of transaction

While most processors special in e-commerce, you should choose the one that supports your sales channel.

The above cheapest credit card processing companies provide great service at an affordable cost. You may want to consider the interchange fees, processing fees, and pricing structure to make your decision.

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