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Best Credit Card Processing Companies for Small Businesses 2025

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Updated on October 2025
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Featured Partners

As payment technology continues to change, consumer expectations are changing too. Today's shoppers want flexibility - whether that is with credit cards, mobile wallets, or contactless payments - is important. That's why it is vital to choose a merchant service provider that works with you efficiently and simplifies your ability to accept the payment options your customers prefer to use. To assist small business owners in identifying and comparing their options, we have reviewed and ranked the better merchant service providers.

1. Leaders
2. Paysafe
3. Clover
4. Stax
5. MerchantOne
6. WorldPay
7. Payment Depot

In today's world, accepting credit card payments is essential for nearly all businesses. From mom-and-pop shops and restaurants to online businesses and service businesses, the ability to accept credit cards is key to customer satisfaction and business development. Determining which credit card processing company is best for your business can be confusing, especially when costs, features, and support vary so greatly among the various credit card processing providers.

In this complete guide, we will discuss how credit card processing works, credit card processing fees you can expect, how to compare pricing models, and which considerations to have in mind when selecting a credit card processor for your business. There are comparison tables, quick tips, and frequently asked question guides we include as well.

What Is Credit Card Processing and How Does It Work?

When customers use credit card payments, it seems instantaneous: customers swipe, tap or enter online, and seconds later, that payment is accepted. However, behind this seemingly simple interaction lies a complicated system.

Here’s how things really work: The payment request loops from the merchant to the payment processor, then to the card network (e.g., Visa, Mastercard), and finally, to the customer’s bank, who ultimately approves, or declines, that transaction. If it is approved, the funds then loop back through the same system and eventually hit the merchant account, usually within one to two business days.

In order for all of this to work, several pieces need to work together:

  • The merchant account - this is where the funds will eventually sit.
  • The payment gateway - this is the method of securing online transactions.
  • POS systems/card readers - for in-person sales.
  • The credit card processor - this is how we ensure all of this happens safely and quickly.

In short, credit card processing is the backbone of modern commerce.

How To Choose the Top Credit Card Processor

When selecting a credit card processor for your small business, it is not so much about simply finding the absolute lowest rate. It should be more about finding the best combination of price, convenience, and reliability. The different pricing models could affect what you pay significantly based on your volume of sales. Flat-rate pricing is great for very small or new businesses who prefer a simple and predictable approach. Interchange-plus pricing is transparent and generally cheaper at higher sales volume, but reading through detailed statements could be a lot to digest. Tiered pricing is flexible but typically have vague pricing categories that mask true costs and leave a number of business owners confused and overpaying. 

More than just price, consider how customers want to pay you. It’s no longer just a card. Many people expect to pay with a mobile wallet, QR code, or some form of electronic bank transfer. If you want your customers to be happy, your processor should be equipped to handle them all. 

And lastly, consider the entire business experience. Do you need portable equipment for outside sales? A full POS system for retail? A virtual terminal for phone orders? Don't ignore customer service either. When the credit card payments cease to flow, so will your revenue.

Comparison of Pricing Models

To clarify distinctions, we take a look at three of the primary pricing models small businesses experience.

Pricing Model

Best For Advantages Disadvantages

Flat-Rate

New or low-volume sales

Easy to understand, predictable

Becomes costly at higher scale

Interchange-Plus

Growing businesses

Transparent and fair pricing

Complex monthly statements

Tiered

High-volume merchants

Potential savings if managed well

Often confusing and less transparent

By applying the framework of this table, small business owners will be able to compare the various credit card processing models without the interference of marketing promises.

How Much Does Credit Card Processing Cost?

The true expense of processing credit cards is based on sales volume, the variety of transactions, and the processor’s structure. On average, small-sized businesses incur transaction costs of approximately 2.5% to 3.5%. That may not sound like much, but it will equate to hundreds or thousands of dollars over a year.

The cost of credit card processing will include the interchange rate charged by the networks, the processor’s markup, and possibly monthly fees for maintaining the account. There may also be additional charges such as chargebacks, minimum monthly fees, or equipment rentals.

For instance, if a business is processing approximately $15,000 per month, they would save hundreds of dollars by changing from a flat-rate plan to an interchange-plus plan. This explains the need to consider not just headline rates, but all rates charged by a credit card processor.

Best Credit Card Processing Options for Small Businesses

All businesses don’t need the same solutions. A coffee shop is different from an online subscription service and a mobile food truck will not use the same tools as a B2B wholesaler.

Most retailers use a countertop POS system with inventory. Online sellers are focused on secure payment methods. On-the-go services need a portable reader and easy-to-use apps. Subscription models need to use a recurring billing tool, and B2B companies may save money using ACH payments or a virtual terminal instead of card-not-present payments.

The best solution will depend on where and how you sell, as well as what level of support or flexibility you need as you grow.

How To Reduce Credit Card Processing Fees

Many owners of small businesses contemplate increasing fees. Fortunately, there are ways to control the cost. Some businesses impose a minimum purchase on card transactions. Some businesses incentivize cash payments by offering a lower price. If you have a higher sales volume, above some minimum threshold, you may be able to negotiate rates with your processor. In some cases, using ACH payment methods for larger invoices can reduce transaction costs. 

The main point is to be proactive: regular review of your statements, understand your pricing, and do not be afraid to ask for a better deal.

 

 

FAQs

What is the cheapest solution for small businesses?

For very small or low-volume businesses, a flat-rate pricing structure is probably the least expensive, as it is straightforward and provides pricing predictability. However, when your monthly transactions rise, interchange-plus models usually save you more money because the fees approach wholesale amount card network rates.

When should I be expecting to be funded?

In general, you will see deposits from most credit card payment products within 1 to 2 business days. Depending on the provider, you could also be able to get same-day or next-day funding, although this may come with an additional charge. Please be sure to check with your provider for their schedule of all funding.

Is credit card processing safe?

Yes. All credible processors must follow the PCI DSS (Payment Card Industry Data Security Standard) regulations. Also, card services use cutting-edge tools to keep customer card data secure and to ensure businesses are protected from fraud. These tools include tokenization and end-to-end encryption.

Are transactions processed on the weekend?

Card payments are authorized in real-time 24/7, including weekends and holidays. But, deposits to your bank account typically only happen on business days, which means a Friday evening sale may not be posted in your account until Monday or Tuesday.

What is a virtual terminal?

A virtual terminal is an online portal that allows you to securely enter a customer's card details and process a payment without the physical card being present. A virtual terminal is especially useful for phone orders, invoicing, or as a backup payment option if your regular POS is down.