Best Credit Card Processing Companies For Startups

U.S. Bank Merchant Services has month-to-month contracts, with pricing ranging from $0 to $99+ depending on how many POS features you need. New brick-and-mortar businesses that just need a smart terminal with basic POS features will only pay $15/month.

As for payment processing, businesses will pay the following rates:

• In-person transactions (swipe, tap, insert): 2.6% + $0.10
• Manually keyed-in transactions: 3.5% + $0.15
• Online payments: 2.9% + $0.30
• Invoiced payments: 2.9% + $0.30

U.S. Bank is currently offering a promotion in which they will refund up to $1,000 in processing fees for any new business that signs up for a merchant services account online before 1/15/25.

U.S. Bank Merchant Services offers the following features, among others:

• Dedicated merchant account
• Same-day transfers
• Accept Zelle payments from customers
• POS software and hardware (provided via talech)
• Large in-person branch network
• Free mobile plan
• Mobile payments via card reader or Tap to Pay for iPhone
• eCommerce (also provided via talech)

CDGcommerce offers multiple plan tiers depending on your business’s processing volume, including:

• Flat-Rate Payment Processing: $0/month; 2.9% + $0.30 for in-person payments; 3.5% + $0.30 for online payments
• Interchange-Plus Payment Processing: Monthly fee not disclosed; 0.25% + $0.10 for in-person payments; 0.30% + $0.15 for online payments; 0.20% + $0.10 for nonprofits (CDG’s rates on top of interchange fees)
• Wholesale Membership: $49-$199/month (billed annually) + interchange + $0.06-$0.15 per transaction

Flat-rate payment processing plans are for businesses processing less than $10,000 per month.

Note: While CDG’s flat-rate payment processing is higher than other providers, you do get lots of freebies like a loyalty program, eCommerce store, invoicing, credit card terminal, and nonprofit campaign management that other providers do not offer. You get these free features on all plans.

Businesses processing between $10,000 and $200,000 per month will benefit most from interchange-plus payment processing. Interchange-plus payment processing is a payment processing model where you pay a provider a per-transaction fee in addition to interchange fees, which are charged by card issuers like Visa and Mastercard. It’s more transparent than flat-rate payment processing and works better for midsized businesses.

Large businesses processing over $200,000 per month can get a membership-based pricing plan that eliminates the per-transaction percentage fee in exchange for a single monthly subscription fee.

CDGcommerce has also eliminated many of the excessive fees that other providers charge, including account setup fees, PCI compliance fees, and monthly minimums. The company charges no fees beyond the transaction fee and a fixed monthly or yearly fee. Other services, such as invoicing, subscription billing, and similar options, are also available for an added fee.

New businesses will find that CDGcommerce offers comprehensive processing services, including those for eCommerce and brick-and-mortar businesses. Here’s a look at CDGcommerce’s services and features:

• Offers membership, interchange-plus, and flat-rate pricing
• Full-service merchant accounts
• Support for some high-risk industries
• Free virtual terminal (with an annual maintenance fee of $79)
• Free payment gateway options for eCommerce via the company’s proprietary Quantum Gateway or Authorize.Net, and a virtual terminal
• $100,000 breach protection plan options
• Customer management and tracking reports
• Integrated scheduling and appointment-setting tools
• Support for nonprofit donations and campaigns
• Customer loyalty management, including promotional texts and emails
• Built-in customer invoicing

Square offers free and paid plans. Paid plans have more POS features and lower payment processing fees, so businesses with steady sales should upgrade to a paid plan.

Square offers the following payment processing rates, all with no monthly fee:

• In-Person Payments: 2.5%-2.6% + $0.10 (2.5% rate applies to Square Appointments POS payments only)
• Online Payments: 2.6%-2.9% + $0.30
• Invoice Payments: 3.3% + $0.30 (on free plan)
• Keyed-In Transactions: 3.5% + $0.15

For same-day deposits with Square, you’ll be charged 1.75%.

Square also offers custom pricing for businesses processing over $250,000 in annual sales with a $15.00 or over-average ticket size. You’ll also have the option to purchase Square’s hardware or add-on features.

There’s no monthly minimum amount you must charge through Square.

For startups with physical locations, Square offers a solid entry into the world of payment processing. Here’s a look at Square’s most notable payment processing features:

• Distinct POS software plans for retail, restaurant, and service-based businesses
• Robust analytics and reporting dashboard
• Multiple Square POS hardware options
• Square Online store for online businesses
• Card readers that can read both NFC and EMV chips
• ACH payment processing
• Afterpay buy-now-pay-later app and cryptocurrency payment acceptance
• PCI compliance
• Create and verify new accounts on the same day

Related: Read our Square POS hardware guide to help you decide which Square card reader and POS display options are right for your startup.

Wave has a two-tier pricing model, which includes a $0/month Starter plan and a $16/month Pro plan.

Payment processing fees are as follows:

• Online Credit Card Payments (Visa, Mastercard, Discover): 2.9% + $0.60 on Starter plan; 2.9% + $0.00 for the first ten transactions per month (and 2.9% + $0.60 after that) on Pro Plan
• Amex Payments: 3.4% + $0.60 on Starter plan; 3.4%  + $0.60 for the first ten transactions per month (and 3.4% + $0.60 thereafter) on Pro Plan
• ACH/ETF Transfers: 1% of the transferred amount (minimum fee of $1)
• Instant Payouts: 1% of the transferred amount (minimum fee of $1)
• Chargebacks: $15 per chargeback
• Late Payment Fee: $25 per late payment

Some of Wave’s notable features are as follows:

• Built-in accounting tools
• Unlimited invoicing  (even on free Standard plan)
• ACH transfers (ETF transfers in Canada)
• Recurring payments (Pro plan only)
• Invoice payment reminders
• Shopping cart software integrations
• Instant payouts (for added fee)

In general, high risk credit card processors do not publicly disclose pricing their information, and PaymentCloud is no exception.

Rates and terms will vary from one business to the next, depending on your specific industry’s risk profile and other factors.

However, we do know that unlike a lot of high-risk merchant account providers, PaymentCloud does not charge an application fee or account setup fee.

Some of PaymentCloud’s primary features include:

• Free credit card terminal available with each account
• MOTO payments
• Mobile processing solutions
• Alternative payment support, including ACH payments, eChecks, and more
• Virtual terminal
• Text-to-pay
• Authorize.Net, NMI, and USAePay payment gateway integrations
• Paysley QR-code payment service

As to pricing, Stripe charges 2.9% + $0.30 per transaction for online transactions, with no monthly fee on the basic plan. All contracts have month-to-month billing and no long-term obligation.

Stripe also offers the option to purchase the hardware for in-person transactions outright instead of having to deal with leases that ultimately cost more. Best of all, because the hardware is not proprietary, you might be able to reuse it if you change processors.

In-person payments through Stripe Terminal cost 2.7% + $0.05 per transaction. Stripe’s other account add-ons and fees are well documented on its website, so you’ll be able to estimate those costs before settling on Stripe.

Stripe is one of the biggest players in the payments industry and has been for quite some time. During its long reign at the top, Stripe has accumulated a full suite of payment tools, software, and hardware for both brick-and-mortar and eCommerce businesses of all sizes. Here’s a look at some of Stripe’s standout features:

• Flat-rate pricing and flexible pay-as-you-go billing
• Developer tools and Stripe APIs for customizable payment flows
• ACH payment processing on every account
• Fully integrated Stripe Payments platform
• Stripe Virtual Terminal for eCommerce
• Anti-fraud protection through Stripe Radar
• Optional instant payout
• Stripe Terminal POS
• Range of unique payment options including Buy Now, Pay Later, international payments, and 3D Secure authentication