Top 4 low cost credit card processing service

Are you a small business owner struggling to keep up with the ever-increasing cost of credit card processing? You’re not alone. With so many options available in the market, it can be overwhelming to choose the right credit card processing service for your business. But worry not, we’ve got you covered. 

In this article, we’ll take a look at the top four low cost credit card processing services that are perfect for small businesses. Additionally, we’ll also explore some easy and effective ways to cut down on credit card processing costs, so you can keep more of your hard-earned profits.

Types of Low Cost Credit Card Processing

When searching for low cost credit card processing solutions for small businesses, it can be challenging to compare apples-to-apples between different payment processors. This is because there is a lot of variation in how these companies charge for their services. However, understanding these differences is crucial in choosing a processor that is cheaper for your business, even if it may not be the cheapest for others. 

There are two main types of credit card processing fees to keep in mind when considering costs. While there may be other fees, these are the ones you will likely encounter the most consistently. Generally, newer and smaller businesses should focus on minimizing administrative fees, while growing and established businesses should prioritize minimizing transaction fees.

Administrative Fees

Typically, account maintenance fees are charged monthly. However, not all processors levy administrative fees. Does this imply that you should always opt for a processor with no administrative fees?

Unfortunately, it’s not that simple. Although it’s advisable to avoid paying administrative fees whenever possible, several payment processors that provide an excellent economy of scale for high-volume merchants do charge administrative fees.

Administrative fees are common among processors that offer interchange-plus pricing and subscription pricing, both of which are ideal for high-volume businesses.

Transaction Fees

Every time a customer swipes their card, they are charged with fees. It is advisable to keep these fees at a minimum level. However, it is important not to only focus on these fees. For small and seasonal businesses, some third-party processors may charge higher flat-rate processing fees but can provide excellent value. Moreover, they have fewer or no administrative fees.

Top 4 Low Cost Credit Card Processing Services

Payment Depot: Best for flat-rate pricing

Payment Depot offers a low cost credit card processing alternative to other payment processors by using a tiered membership platform. You can minimize your costs by subscribing to a membership plan that charges a fixed fee per transaction based on your tier and a monthly fee based on your transaction volume. Moreover, Payment Depot is easy to set up, helping you start collecting payments within 24 hours.

With Payment Depot, you can accept payments online, in person, over the phone, or via invoice. When you sign up for a monthly subscription, you’ll get access to a virtual store, a free setup for your POS (point of sale) equipment, and the ability to process mobile payments using your smartphone. 

Depending on the setup you need and how much you process in payments each month, monthly pricing ranges from $59 to $199. The pricing model referred to as “interchange plus” involves a fixed fee ranging from $0.07 to $0.15.

Payment Depot is ideal for established businesses in the U.S. with a stable transaction volume from month to month.

Square: Another great option

Square is a payment processing platform designed for businesses of all sizes. Similar to ConnectPOS, it offers an affordable and user-friendly POS system that charges only a percentage-based transaction fee, without any monthly subscription fees. 

You can use Square for in-person payments by paying a 2.6% fee plus $0.10 per transaction, or for online sales by paying a fee of 2.9% plus $0.30 per transaction. If you need to manually enter the customer’s card number, such as for phone orders, the fee increases to 3.5% plus $0.15 per transaction. 

Square is ideal for businesses with varying transaction volumes, and its free Square Reader is a great feature for merchants on the go.

Stripe: Best for international payments

Stripe has quickly risen to become a top choice for online businesses since its establishment in 2011. With its global payment system, merchants can accept payments in over 135 currencies with transparent pricing and discounts for high-volume merchants. 

The account setup process is quick and straightforward, allowing most merchants to start accepting payments immediately. Stripe does not charge a monthly fee and customers can pay directly via a Stripe integration on your website or invoicing service. The transaction fee is 2.9% plus $0.30 per transaction.

Stripe is tailored for eCommerce. It seamlessly integrates with popular eCommerce platforms, making it an attractive option for online business owners. Its user-friendly setup process makes it a great choice for startups, while flexible pricing options cater to larger enterprises.

PayPal Zettle: Best for brand recognition

PayPal has been a popular choice for online payments for quite some time, but it may not be the most modern option available. However, it is a reliable and user-friendly platform that offers competitive merchant fees. Zettle, for example, charges between 2.90% + $0.09 and 3.49% + $0.09 per transaction. 

There are no monthly fees associated with using PayPal. It is perfect for online businesses that need to collect payments for eCommerce or invoices. While PayPal does offer in-person swiped transactions through its partner Zettle, other payment processors may be a better fit if you require POS or mobile in-person payment options.

Methods To Reduce The Expenses Associated With Processing Credit Card Transactions

Select the Right Payment Processor

When it comes to payment processors, it’s important to weigh your options before making a decision. To minimize costs for the services you require, it’s best to choose a payment processor that fits your needs. For instance, if you don’t have an online store, there’s no need to pay for Shopify’s monthly fee. Instead, you could opt for free services such as Stripe or PayPal. 

Cut Unnecessary Services

When you subscribe to a service, it’s important to look out for unnecessary services that you may not need. Many subscription-based services offer tiered plans, and if you require only one feature that is available in a higher tier, you may end up spending more money than necessary. So, it’s always wise to evaluate your requirements and select a plan accordingly to avoid overpaying.

Set Purchasing Minimums for Credit Cards

To prevent small transactions from eating into your earnings due to processing fees, you may establish a minimum purchase amount for credit card payments.

In Conclusion,

When it comes to low-cost credit card processing services, it’s important to consider factors such as additional processing fees, mandatory requirements, and flexibility in payment methods. Among the top options available, ConnectPOS stands out for its transparency and affordability. 

ConnectPOS does not charge any additional processing fees other than the ones required by the credit card company. Additionally, ConnectPOS does not have any mandatory processing requirements and does not charge extra fees when customers choose to switch between different payment processing methods. Contact us today!