Which Credit Card Processing Is Cheapest For Small Business?

For small businesses, the cost of credit card processing can vary widely - depending on factors like the nature of your business, your sales volume, the types of credit cards you accept, and the payment processing provider you choose. 

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If you want to find the cheapest credit card processing, you’ve got to take into account what works for your business.

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Here are some considerations to help you find an affordable credit card processing solution for your small business:

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• Flat-Rate Processors: Some payment processors, like Square and Stripe, offer flat-rate pricing. In flat-rate pricing contracts, you pay a fixed percentage of each transaction - plus a per-transaction fee. This pricing structure is an excellent option for small businesses since it’s straightforward and cost-effective, as long as your business has relatively low transaction volume and consistent sales. 
• Interchange-Plus Pricing: Interchange-plus pricing contracts offer a highly transparent fee structure that passes the credit card processor’s interchange and assessment fees directly to the business. Businesses who sign these contracts also pay a markup issued by the processor. While interchange-plus pricing may seem more complex, it’s a cost-effective option for businesses with higher transaction volumes and large ticket sizes.
• Volume Discounts: If your business has a high transaction volume, you may be able to negotiate with your payment processor for a lower rate - known as a “volume discount.”  
• Online vs. In-Person Transactions: Your options to lower fees will depend on whether most transactions are conducted online, in-person, or a mix of both. Some processors offer different pricing for in-person transactions than online transactions. 
• Industry-Specific Solutions: In some cases, there may be specialized payment processors, like Seamless Chex, that offer competitive rates and features for businesses in your specific industry. Examples include restaurants and hospitality businesses, which typically benefit from POS systems that account for and support their particular industry requirements. 
• No Monthly Fees: To lower costs, look for a processor that doesn’t charge monthly fees, or that charges low monthly fees, which is especially important if your business has irregular sales volumes.
• Equipment Costs: If you need to rent or buy equipment like payment terminals or equipment, ensure you understand the costs associated with doing so since this can affect your overall processing costs.
• Hidden Fees: Be cautious of hidden fees, such as early termination fees, PCI compliance fees, and statement fees. Read the terms and conditions carefully so you can make sure you understand all the fees you’re going to be paying. 

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To find the processor that will offer the cheapest fees for you, compare multiple payment processing providers, request quotes, and carefully review all pricing structures and terms. Remember that what works best for your small business will depend on your specific circumstances and needs. 

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