What Are The Best Ways for Small Businesses to Process Credit Cards?
Credit card processing is always a little tricky for small businesses. But if you’re looking for solutions, this guide will show you the best ways to process credit cards.
Did you know the average monthly spend on credit cards for people in the United States is anywhere from $639 to $1687?
With stats like that, you can’t afford to not process credit cards in your small business.
But what’s the best way for your small business to process credit cards for both you and your customers?
It needs to be fast, have good rates, and ultimately allow you to accept all types of cards.
Check out our list of the best options, based on all these factors, to find the one that is the best fit for your business.
The 7 Best Credit Card Processing for Small Business Applications
When it comes to online credit card payment processors, Stripe is one of the most popular.
And for good reason — It connects to e-commerce platforms, websites, and apps with ease making it flexible to meet all business type’s needs.
It’s easy to set up and requires no programming or software expertise. You simply make an account, integrate it with your bank, and connect it to your store.
You can also set Stripe up to automatically deposit funds into your account without you having to do anything. The money you receive from credit card transactions can get deposited into your account daily, weekly, or monthly.
It also integrates with a ton of applications. Here are a some of the popularly used platforms Stripe can easily connect to:
- 3D Cart
And when it comes to taking payment on your website, Stripe has you covered.
There are plugins to integrate it with your site. And short html codes you can copy and paste to put a ‘Buy Now’ button on your website, too.
Paypal is convenient for both small business and consumers alike, making it an extremely popular online credit card payment processor.
Case in point: It has over 237 million active accounts listed in 2018.
It also works on pay-as-you-go terms, meaning it’s great for businesses who will be processing low volumes of credit card payments. No minimum is required each month.
They’re extremely transparent about their pricing. Here’s a fee breakdown based on transactions:
- Use the Paypal Here app to process in-person payments for a 2.7% fee per transaction
- Invoice and e-commerce transactions processed online cost 2.9% + $0.30 per transaction
- Cards using Paypal’s online terminal cost 3.1% + $0.30 for each transaction
- Any card you manually key in cost 3.5% + $0.15
Some other key benefits of Paypal include:
- Easy to set up — There are no hoops to jump through when you set up an account and it doesn’t require any technical software skills
- Businesses and individuals can use the platform
- Connects directly to your bank account and you control how much you deposit and when
- You can set up a ‘Buy Now’ button directly on your website that links to a Paypal payment portal for credit card processing
When it comes to credit card processing cost, Helcim is one of the best with rates as low as 0.25%.
And they also ensure they’ll lock in your rates for the life of your account. So whatever great rate you get when you sign up, it’s locked in.
The margins you receive are based on:
- Your industry
- Your monthly processing volume
- The average transaction amount
On Helcim’s website, the pricing to process credit cards for your business is extremely transparent, with a complete breakdown with cost and what’s included.
Another bonus: If you decide to cancel there’s no termination fee as Helcim is based on a month-to-month agreement.
This could be the best choice for you if you’re processing more than $3,000 in credit card transactions every month.
5. First Data
This is one of the largest and best credit card processing for small business options out there.
First Data is serving businesses in over 100 countries. These businesses are at over six million locations, keeping First Data busy processing over 33 billion credit card transactions every year.
It’s obvious they’re a leader in the industry and they’re well known for being one of the best companies to use to process credit cards.
They are a great choice if you are processing a high volume of credit card transactions.
The pricing is customized based on your industry and unique needs.
First Data also offers their own line of POS equipment and software called Clover. So they can take care of your business when it comes to setting up your in-store register, too.
Flagship offers affordable POS software at a price of $148 to set your business up for credit card processing.
When you purchase this POS equipment from them, you are free of a locked-in term contract. You’ll receive access to month-to-month pricing and no termination fee if you decide to cancel the service.
Some other great features they offer are:
- A credit card terminal that allows you to accept in-person credit card payments
- A mobile credit card reader you can connect to your mobile devices — such as a smartphone or tablet — for when you take your business on the go
- A virtual terminal that allows you to take credit card payments over the phone or by mail order
Authorize.net has built a great reputation focused on security. They even offer a verification badge you can add to your website to increase customer confidence.
Some other great features include:
- Advanced Fraud Detection
- Sync with Quickbooks to easily track your money and tax information
- Automated recurring billing
- Acceptance of eChecks
According to their website, Authorize.net is a trusted credit card processor handling over 430,000 merchants and 149 billion dollars worth of transactions every year.
Next Steps to Process Credit Cards
Cash is so yesterday… In fact, 33% of consumers report credit cards are their preferred way to pay.
It’s important your business can process credit cards so you don’t lose out on a third of the market’s business.
Want to do more comparisons? If you have any questions about what the best options are for your business, we’ve got you covered at Buyer Zone.
Visit our buyer’s guide to compare more credit card processors and more.