Best Payment Processing for Small Businesses

Every

small
business
has
to
get
paid
somehow.
That’s
the
whole
point
of
running
a
business,
right?
But
a
thrift
store
and
an
insurance
company
get
paid
in
different
ways.
Retail
outfits,
like
thrift
stores,
are
just
one
of
many
types
of
businesses
that
need
payment
processing
solutions.

Payment
processing
for
small
businesses
is
an
essential
component
of
day-to-day
operations,
especially
if
you
use
point
of
sale
tools
like
a
cash
register
or
iPad.
Setting
your
business
up
for
credit
card
processing
and
online
payment
processing
will
help
you
accept
a
wider
variety
of
payment
methods
and
make
it
easier
for
your
customers
to
buy
your
products
or
services.

Don’t
know
how
to
accept
credit
card
payments?
That’s
okay.
Here,
we
break
down
the
best
payment
systems
for
small
businesses,
highlighting
some
of
the
best
payment
processing
companies.

In
this
article:

Why
Do
You
Need
a
Payment
Processor?

A
payment
processing
company
is
an
entity
that
allows
small
businesses
to
accept
credit
cards
and
other
similar
payment
methods
from
customers.

Businesses
accept
payments
in
many
ways,
which
facilitate
their

cash
flow.
Many
contract-
or
invoice-based
businesses
receive
money
through
wire
transfers
or
automated
clearing
house
(ACH)
payments.
They
may
not
need
credit
card
processing.

Recent
research
by
the

Federal
Reserve
shows
that
just
16%
of
transactions
in
2024
were
done
in
cash.
That
number
is
down
from
20%
in
2021
and
projects
to
continue
declining.
Businesses
that
sell
directly
to
customers
through
a
point-of-sale
service,
like
retail
stores
and
restaurants,
and
companies
that
sell
products
or
services
online
need
a
payment
processor.
Americans
are
simply
carrying
cash
less
and
using
credit
cards
or
online
payment
tools
more.

What
to
Consider
When
Choosing
a
Payment
Processor

Entrepreneurs
have
many
options
when
it
comes
to
payment
processing
for
small
business.
The
best
payment
processor
for
one
business
may
not
be
the
best
for
another.
There
are
a
number
of
considerations
to
bear
in
mind
when
choosing
between
payment
processing
companies.

Fees
and
Pricing
Structure

Payment
processing
companies
make
money
by
charging
processing
fees
on
each
transaction.
Fees
generally
range
between
1%
to
5%
of
the
transaction
amount.
If
you’re
selling
in
large
volume,
those
percentage-based
fees
can
add
up
fast.
Alternatively,
some
payment
processors
may
offer
flat
transaction
fees.

On
top
of
fees,
many
payment
processing
companies
also
charge
monthly
fees,
like
a
subscription
cost.
Typically,
processors
that
charge
monthly
fees
have
lower
transaction
fees,
but
not
by
much.

Ease
of
Use
and
Integrations

There’s
a
good
chance
you’ve
been
selling
products
already
without
a
payment
processor,
so
you
want
to
ensure
any
new
payment
systems
for
small
business
fit
into
your
existing
model.
Seamless
integration
with
your
bank
account,
website,
e-commerce
platform,
and
point
of
sale
system
will
ensure
you
don’t
miss
a
beat
while
getting
set
up.
Likewise,
you’ll
also
save
a
headache
if
your
payment
processor
integrates
with
your
accounting
software
or
customer
relationship
management
system
(CRM).

Payment
Methods

How
will
your
customers
pay
you?
How
many
locations
do
you
need
to
accept
payments?
Restaurants
are
increasingly
letting
diners
pay
at
their
tables,
meaning
they
need
many
more
payment
gateways.
A
clothing
store
probably
only
has
one
or
two
point
of
sale
systems
in
a
central
location.
A
small
dog
food
company
may
focus
primarily
on
selling
online,
while
supplementing
the
e-store
by
setting
up
at
farmer’s
markets.

Every
business
has
a
different
sales
strategy,
which
will
impact
what
kind
of
payment
methods
you
need
to
accept.
The
most
popular
payment
methods
today
are
credit
and
debit
cards,
e-wallets,
and
mobile
payments.
You’ll
want
to
find
a
company
that
supports
online
payment
processing
for
small
business,
as
well
as
the
payment
options
your
customers
most
often
use.

Customer
Service

If
a
payment
processor
glitches
or
stops
working,
you
can’t
sell
your
products.
That’s
very
bad
for
business.
The
best
payment
processing
for
small
business
is
payment
processing
that

works.
While
the
top
companies
have
reliable
tech,
you’ll
want
to
verify
that
their
customer
service
is
reliable,
too.
Should
a
problem
arise,
you
need
to
be
able
to
reach
customer
service
and
have
it
resolved
quickly.

Top
Payment
Processors
for
Small
Businesses

The
best
payment
systems
for
small
business
can
make
your
life
easier
and
help
your
company
grow.
We
breakdown
some
of
the
top
options
below.

Square

One
of
the
most
popular
choices
for
small
businesses
due
to
its
flat-rate
pricing
and
no
subscription
fee,
Square
offers
user-friendly
features
to
help
small
business
owners.
Square’s
payment
processing
supports
both
online
payment
processing
and
POS
systems
to
support
business
that
make
both
online
and
in-person
sales.

Square
doesn’t
have
any
early
cancellation,
activation,
refund,
or
chargeback
fees,
making
it
very
appealing
for
small
businesses
working
on
thin
profit
margins.

Another
cool
perk?
Square
offers
free
POS
software
and
includes
a
free
mobile
device
card
reader
to
support
in-store
credit
card
processing.

Pricing:

• 6%
  plus
  10
  cents
  for
  in-person
  transactions
• 9%
  plus
  30
  cents
  for
  online
  transactions
• No
  monthly
  fee

Stripe

Another
company
known
for
flat-rate
pricing,
Stripe
is
one
of
the
best
online
payment
processors
for
small
business.
Stripe’s
features
are
tailored
to
e-commerce
and
retail
companies,
offering
both
virtual
and
physical
terminals,
integrated
invoicing
and
billing,
and
a
wide
range
of
platforms
and
extensions
to
work
with
your
business’s
existing
tech
tools.

Stripe
also
accepts
payment
in
135
currencies,
making
it
a
great
choice
for
small
businesses
making
international
sales.

Pricing:

• 5%
  plus
  30
  cents
  for
  in-person
  transactions
• 9%
  plus
  5
  cents
  for
  online
  transactions
• No
  monthly
  fee

PayPal

PayPal
is
a
giant
that
more
or
less
paved
the
way
for
online
payment
processing.
Today,
PayPal
supports
online
payment
processing
for
small
businesses,
charging
customers
with
invoices,
and
in-person
payments.
It’s
a
versatile
payment
processing
solution
that
lets
small
businesses
accept
credit
and
debit
cards,
contactless
payments
like
Apple
Pay
and
Google
Pay,
and
PayPal
direct
payments.

One
bonus
of
using
PayPal
is
that
if
you
also
implement
their
traditional
payment
solutions
like
PayPal
Checkout
and
PayPal
Payments
Standard,
you’ll
pay
lower
fees.

Pricing:

• 29%
  plus
  9
  cents
  for
  in-person
  transactions
• 89%
  plus
  49
  cents
  for
  online
  transactions
• No
  monthly
  fee
  ($5/month
  for
  Payments
  Standard,
  $30/month
  for
  Payments
  Pro)

Shopify

One
of
the
best
online
payment
processors
for
small
business
is
one
of
the
world’s
largest
e-commerce
platforms.
Shopify
is
a
comprehensive
e-commerce
solution
that’s
uniquely
suited
to
helping
online
businesses
thrive.
Primarily
known
as
a
platform
to
build
online
stores,
Shopify
also
hosts
stores
and
processes
payments.
Payment
processing
for
small
business
is
a
breeze
if
you’ve
already
built
a
Shopify
store.
(Even
more
so
when
you
consider
that
using
outside
processors
incur
extra
fees.)

Shopify
payment
processing
offers
24/7
customer
support,
fraud
analysis,
shipping
discounts,
and
support
for
dozens
of
currencies.

Pricing:

• 4-2.9%
  plus
  30
  cents
  per
  transaction
• Starts
  at
  $29/month
  paid
  annually

Helcim

Helcim
is
a
merchant
services
provider
that
uses
an
interchange-plus
pricing
model,
which
means
your
business
saves
when
a
customer
uses
a
card
with
low
interchange
rates.
Not
only
that,
but
Helcim
also
offers
discounts
if
you
process
more
than
$25,000
monthly,
making
it
a
good
choice
for
businesses
that
are
growing
rapidly.

Helcim
provides
mobile
device
processing,
a
POS
system,
a
virtual
terminal,
and
integrated
merchant
accounts.

Pricing:

• Interchange
  fees,
  plus
  0.3%
  of
  total
  transaction
  cost,
  plus
  8
  cents
  for
  in-person
  payments
• Interchange
  fees,
  plus
  0.05%
  of
  total
  transaction
  cost,
  plus
  25
  cents
  for
  keyed
  transactions
• No
  monthly
  fee

Conclusion

Every
business
needs
to
find
ways
to
get
paid
for
products
and
services
as
efficiently
as
possible.
Payment
processing
for
small
businesses
is
a
vital
consideration
for
any
entrepreneur.

Whether
your
business
needs
to
accept
credit
card
transactions
in-person
or
process
online
payments,
there
are
many
payment
processing
tools
to
support
your
business.

The
best
payment
processing
companies
can
support
your
business
operations
from
point
of
sale
through
accounting
challenges,
making
it
easier
to
collect
payments
and
manage
your
finances.

FAQs

1. 
   What
   is
   a
   payment
   processor
   for
   small
   businesses?

   A
   payment
   processor
   is
   a
   company
   that
   allows
   businesses
   to
   take
   digital
   payments.
   This
   includes
   credit
   and
   debit
   cards,
   mobile
   wallet
   payments,
   online
   payments,
   and
   more.

2. 
   How
   does
   a
   small
   business
   use
   a
   payment
   processor?

   Every
   small
   business
   may
   use
   a
   payment
   processor
   in
   different
   ways.
   For
   instance,
   a
   food
   truck
   may
   use
   a
   payment
   processor
   at
   a
   physical
   point
   of
   sale
   terminal
   while
   set
   up
   at
   a
   music
   festival.
   A
   small
   business
   that
   sells
   phone
   chargers
   online
   may
   only
   use
   a
   payment
   processor
   on
   its
   e-commerce
   website.
   A
   small
   business
   that
   sells
   clothes
   in
   both
   a
   brick-and-mortar
   store
   and
   online
   can
   use
   a
   payment
   processor
   in
   both
   places.

3. 
   What
   are
   the
   top
   online
   payment
   processors
   for
   a
   small
   business?

   Two
   of
   the
   leading
   online
   payment
   processors
   for
   a
   small
   business
   are
   Shopify
   and
   PayPal.
   Shopify
   makes
   it
   very
   easy
   to
   build
   an
   online
   store
   and
   accept
   online
   payments,
   while
   PayPal
   offers
   many
   digital
   payment
   solutions
   to
   support
   online
   businesses.

4. 
   What
   are
   the
   top
   payment
   processor
   providers
   for
   a
   small
   business?

   Some
   of
   the
   best
   payment
   processors
   for
   small
   business
   include
   Square,
   Stripe,
   PayPal,
   Shopify,
   and
   helcim.