7 Cheapest Payment Processing Services for Small Businesses

When it comes to managing online transactions, small business owners look for a reliable and affordable payment processor that makes it a breeze. However, it’s not easy to browse through hundreds of payment services with varying pricing models and hidden markups.

The best payment processing service is the one that offers cost-effectiveness without compromising its functionality. It should also have a transparent and flexible pricing model, responsive customer service and support for scalability.

We have created our list of seven top cheapest payment processing companies based on all these factors, so you can find one that fits your business needs.

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Comparison Table: The Cheapest Payment Processing Companies

Provider	Pricing Model	Monthly Fee	Transaction Fees (Typical)	Unique Features
Finix	Subscription + Custom flat/interchange	Starts at $250	Flat-rate ~2.75% + $0.30; or interchange-plus + 0.3% + $0.30	Low-code, no-code payment solution; supports high-risk sectors
Stax	Subscription + tiered flat fees	Starts at $99	Tiered pricing varies by volume	Free payment gateway
Payment Depot	Wholesale interchange + monthly	None	Interchange rates, no markup	Transparent, no hidden fees
Helcim	Interchange plus tiers	None or low	~1.83% + $0.06 (in-person avg.)	Automatic volume discounts
National Processing	Subscription + varied pricing	Starts at $14.95	Starts at 2.5% + $0.1 per transaction	Free equipment offers
Stripe	Flat-rate per transaction	None	2.9% + $0.30 (online standard)	Global payments; developer APIs
Square	Flat-rate per transaction	None	2.6% + $0.15 per swipe	Free POS app, fast deposits

7 Most Affordable Payment Processing Services

Below are the best payment processing services that offer the right balance between cost-effectiveness and performance:

1. Finix: Ideal for Platforms & Marketplaces

Finix is an easy-to-use payment processor with a flexible and transparent pricing model. Depending on your business structure, you can choose from its flat-rate, dynamic and custom plans, which are clearly defined on the company’s website.¹ This keeps business owners aware of all the costs upfront with no surprises later on.

Finix is primarily preferred by business owners who run platforms or marketplaces. It gives them a sense of ownership that they’re in charge of their transactions, thanks to its customizable fee structure and support for high-risk industries. You can even build on a flexible API and brand your interface as you like.

If you don’t have a dedicated development team yet, Finix can take care of it. The company positions itself as a “low-code, no-code payments solution,” meaning they will take care of all the technical stuff on your behalf.²

Pros:

• No prior technical expertise needed
• Well-defined pricing model with transparent fees
• Fraud monitoring AI identifies fraudulent transactions
• Direct integrations with e-commerce plugins, including WooCommerce
• Available payment methods include credit card payments, ACH/EFT and digital wallets (Google Pay, Samsung Pay and Apple Pay)

Cons

• The starting price of $250/mo for Direct Merchants might be too high for small businesses.³
• Additional costs for advanced features
• Not ideal for businesses without developer resources

Pricing

• Instant payouts: 1.50%
• Merchant onboarding: $5 one-time fee
• Flat rate processing: 2.75% + $0.30 per transaction
• ACH processing: 0.75% per transaction ($0.25 min, $5 max)
• Amex fees: 0.3% + $0.30 per transaction

The dynamic pricing model is based on interchange-plus card brand fees and a 0.3% + $0.30 per transaction fee. You can also get custom pricing.¹

2. Stax: Ideal for High-Volume Businesses

Stax is a flexible payment processor geared towards businesses with higher sales volumes. It offers flat and tiered pricing that adjusts according to your transaction volume.

The platform skips percentage markups, which gives it a unique edge over other cheapest payment processing services. It offers subscription-based pricing, along with other alternatives like Interchange Plus, for businesses seeking custom plans.⁴

However, this pricing model is more beneficial for businesses with steady revenue. If you run a startup or a small company with inconsistent or low monthly profits, it will be better to look for other options on this list.

If you’re looking for a centralized platform, Stax can be your right choice. It comes with automated invoicing, detailed analytics, recurring payments and catalog management in one dashboard.

Pros

• Three payment options: online, in person and mobile
• Surcharging option eliminates credit card processing costs
• In-house support available
• Next-day funding
• Robust analytics and reporting
• Easy-to-use and automated invoicing tools

Cons

• Final pricing varies, no simple flat rate
• A monthly subscription may not be ideal for low-volume sellers

Pricing

• Starts at $99/mo, varies by transaction volume.⁵
• Processing up to $150,000 per year: $99/mo
• $150,000-$250,000 in processing per year: $139/mo
• $250,000+ in processing per year: $199+/mo

3. Payment Depot by Stax: Best for Steady-Volume Businesses

If you want to ditch the flat-rate pricing model and pay at interchange-plus rates, Payment Depot could be your best bet. It offers a clear, no-hidden-fee plan by combining the base interchange rate with a fixed percentage markup. This structure lets you save a lot in transaction processing fees, as it separates the wholesale card network fees from the payment service’s margin.⁶

This way, Payment Depot keeps business owners aware of what, why and where their money is going. This keeps things quite simple for those who frequently deal with moderate to high transactions.

Besides pricing, Payment Depot provides robust support for mobile payments, inventory management, invoicing and recurring billing. You can also use reporting, data tracking and payment monitoring features. The platform is ideal for businesses with steady monthly volume.

Pros

• Wholesale interchange pricing with no extra percentage markup
• $0 setup fees and no penalties on cancellation
• Surcharging option eliminates credit card processing costs (where eligible)
• Unlimited access to the all-in-one payment software
• Responsive customer support

Cons

• Hardware is excluded from base pricing

Pricing

Variable rates as low as $0.2% - 1.95%.⁷

4. Helcim: Best for Interchange-Plus Pricing

Like Payment Depot, Helcim is one of the cheapest payment processing services that stands out for its interchange-plus pricing model.⁸ With this platform, you will know why and where your payments are going, as well as the actual transaction cost and the fixed markup.

To further reduce this markup, you just have to process more and more. According to Helcim, you can save 25% on average on in-person and online credit card processing by switching to the platform.⁸

Other benefits include invoicing, a no-code online store, a virtual terminal, a point-of-sale (POS) system and no hassle with contracts. If you want the hardware with the base offering, you can get it at a reasonable price.

If you’re looking for a payment processor with basic features, efficient tools and clear pricing, Helcim can be a good choice.

Pros

• Seamless integration with QuickBooks, Xero and third-party apps
• POS system with hardware sold separately
• No contract and a monthly fee
• Volume-based automatic discounts

Cons

• Fewer advanced features than bigger processors

Pricing

• No fixed monthly fee.⁹
• Average In-Person Rate: 1.83% + $0.06
• Keyed/Online Rate: 2.27% + $0.25

5. National Processing: Suitable for High-Risk Businesses

National Processing supports high-risk merchants working in hospitality, retail, e-commerce or service-based industries.¹⁰ It features a subscription-based pricing structure, comprising three plans: Basic In-person, Basic Online and Premium. The monthly fee starts from $14.95/mo, which may be ideal for high-volume businesses but not for those with low revenue.¹¹

Additionally, you will get efficient POS systems from companies like Clover and SwipeSimple and a payment gateway (Authorize.net). Some other benefits for high-risk businesses include fraud monitoring, risk mitigation and chargeback management tools.¹⁰

If you need the cheapest merchant services for a short period, National Processing comes with no long-term contract commitments.

Pros

• Transparent, flexible pricing options
• Specialized high-risk industry support
• Handheld terminals and mobile readers with some plans
• Integration with QuickBooks, WooCommerce, BigCommerce and more
• Accepted payment methods: Cash, credit and debit cards, digital wallets and ACH transfers
• Technical support is available 24/7

Cons

• Pre-determined features in each plan leave no room for customization
• Monthly fee on top of transaction fees

Pricing

Processing Rates:

• Basic In-Person Package: 2.5% + $0.1 per transaction.¹¹
• Basic Online Package: 2.9% + $0.3 per transaction
• Premium Package: 2.41% + $0.1 per transaction

Monthly Fees:

• Basic In-Person Package + Basic Online Package: $14.95
• Premium Package: $19 and up

6. Stripe: Best for Customized Payment Solutions

Stripe is known for its smooth online payments and developer-friendly features. If you’re running an online platform, SaaS-based business or a marketplace, Stripe supports 135+ currencies and 100+ payment methods, including international cards and wallets.¹²

It supports a wide range of branding features, as well as split payments, payout automation and tax management.

However, the platform appears to be more focused on customization than on functionality or ease of use. Although Stripe claims to be “low code, no code,” the setup and overall management do require you to have prior technical or development experience. That said, if you have a developer in your team, Stripe offers you all the features you need in an efficient yet cost-effective payment processing service.

Pros

• Good API flexibility for custom payment flows
• Wide global and payment method support
• No monthly fees or setup costs

Cons

• Higher transaction fees for low volumes
• Can be complex without developer experience
• Not ideal for those looking for a plug-and-play solution

Pricing

2.9% + $0.30 per transaction standard; negotiable for volume.¹³

7. Square: Best for Simplicity & Ease of Use

Square is a favorite for small businesses and those just starting out. You don’t need any prior technical expertise to run this platform. It sets up quickly and allows you to leverage its POS app and hardware within a few minutes. Square’s interface is also super easy to use, with everything well-explained through the dashboard.¹⁴

Moreover, there are no monthly fees. You just have to pay on a flat-rate pricing basis plus a transaction fee per swipe. Many businesses, especially those operating in retail or service industries, prefer Square for its fast deposit capability.

However, this payment processor might not be as affordable and flexible as other platforms. The rates can get high for many small operators, and the options may feel too limited outside the Square environment.

If you want an option that’s just easy to use and has basic features, Square can be your best pick.

Pros

• Quick account setup and free POS app
• No monthly fees, easy flat pricing
• Fast deposits
• No cancellation fees

Cons

• Less cost-effective at high volumes
• Limited hardware flexibility

Pricing

2.6% + $0.15 per swiped transaction, no monthly fee.¹⁵

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Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers

• Global Account: Send money to countries and hold multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local

• Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account

• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

• Free invoicing tool: Generate and send professional invoices

• No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here

Use Wise Business >>

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How To Select the Cheapest Payment Processing Service

Choosing a payment processor is about more than just picking the lowest rate. What really matters is how well that platform fits your business model and supports your goals. Here’s what to look for:

Basic Features

First, make sure the provider supports the types of payments your customers prefer. The most common options include in-person swipes, chip readers, contactless/mobile payments or online and recurring payments.

Next, look for Payment Card Industry Data Security Standard (PCI DSS) compliance and strong security features, such as end-to-end encryption, to protect sensitive data. Also, check if the processor integrates smoothly with your current POS system, e-commerce platform or accounting software. You may not realize it in the early days of your business, but automation can save you considerable time and resources.

Value for Money

Value means more than low transaction fees. Pay attention to monthly fees, chargeback costs, setup and cancellation charges, as well as hardware costs.

Some companies prefer a straightforward flat-rate pricing model, while others offer interchange-plus or tiered pricing that might save you money if you process high volumes. Simply assess your average monthly sales and transaction volume to pick a pricing structure that minimizes your overall cost.

Pricing Model

Pricing can be confusing because providers combine different fees: per transaction, monthly subscriptions, hardware rental, batch fees and more.

Flat-rate models offer predictability. You pay the same percentage regardless of card type. Interchange-plus pricing breaks down the cost per card brand plus a percentage markup, often cheaper at scale but less predictable.

Understand what’s included in each plan, be wary of hidden fees and make sure you know how fees can change seasonally or with usage.

Business Niche or Industry

Some payment processors specialize in specific industries or high-risk businesses. If you’re selling CBD products, running a subscription service or operating in a vertical with higher fraud risk, picking a processor with relevant expertise ensures smoother approvals and better support.

Processors tailored to your industry understand your unique challenges and can customize solutions accordingly.

Customer Service

Good customer support can be a lifesaver, especially if you run into technical issues or disputes. Look for processors that offer 24/7 support and multiple contact options (phone, chat, email).

Quick response times and knowledgeable reps can boost your confidence and reduce downtime.

Which Payment Processing Company Should You Pick?

Choosing the best payment processor boils down to your unique business needs. If you’re new or have low volume, Square’s simple flat rates and free tools make starting easy. For those scaling quickly and wanting deep customization, Finix and Stax offer robust API and app integration options.

Medium-volume merchants seeking transparent, wholesale fees may find their best fit with Payment Depot or Helcim. On the other hand, for high-risk businesses, National Processing can be an ideal option.

As a business owner, understand your transaction volume, preferred payment methods, risk profile and integration needs at an early stage. Pair that with this expert guide, and you’ll confidently pick the processor that helps your business thrive in the long run.

Frequently Answered Questions

What is the cheapest way to accept card payments?

Using interchange-plus pricing through providers like Payment Depot provides direct access to wholesale rates, often making it the cheapest option for medium-to-high volume merchants. Subscription models with volume discounts, like Helcim, also reduce costs as your payments increase.

Is it illegal to charge 3% credit card fee?

Charging customers a 3% surcharge to cover credit card fees is not illegal in the U.S. if it is for the actual transaction cost. You must also disclose it to the customer beforehand. As a business owner, you must stay up to date on your state laws and card network rules to know if there are any surcharge restrictions.

Which payment provider has the lowest fees?

Payment Depot offers the lowest fees by charging direct interchange rates without markups. For small businesses, Helcim's automatic volume discounts can also deliver low effective fees.

What is zero-fee merchant processing?

Zero-fee merchant processing means the business doesn’t pay credit card processing fees directly. Instead, the cost is passed on to customers with a surcharge added at checkout, covering the transaction fees and allowing the merchant to receive the full sale amount.

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Sources:

1. Pricing for Platforms | Finix
2. Finix for Businesses | Finix
3. Pricing for Direct Merchants | Finix
4. Pricing | Stax
5. Simplified payments for your business | Stax
6. Payment Depot Homepage | Payment Depot by Stax
7. Pricing | Payment Depot by Stax
8. Helcim Homepage | Helcim
9. Pricing | Helcim
10. National Processing Review 2024: Fees, Features and Alternatives | Nerd Wallet
11. Pricing | National Processing
12. Stripe Homepage | Stripe