Skip to content
MerchantFindUSA
Menu

Payment Processing for Small Business

Rasika Lakshan ·

Last updated:

This is general information, not legal or tax advice.

Payment processing is how a business gets paid by card, bank transfer or wallet. This guide explains the moving parts and where to compare providers. It is general information, not financial advice.

Ways to take payments

  • In person: a card reader or POS system. Square, Stripe, Clover and others publish in-person rates.
  • Online: a checkout, payment links or invoices. Stripe, PayPal and Square list online rates.
  • Bank payments: ACH or bank transfer, often cheaper on large invoices where offered, as on Stripe’s fee page.
  • Wallets: PayPal and Venmo appear in PayPal’s fee table.

What you pay

Most providers charge a percentage plus a fixed fee per sale. Many add plan fees, hardware costs, fees for keyed-in or international cards and dispute fees. Some use interchange-plus pricing; see interchange-plus vs flat rate.

How to choose

Estimate your monthly sales and average sale, then compare effective cost with the processing fee calculator. Read contract terms: some providers publish no locked-in contracts, others list non-cancelable subscriptions. Check support options and funding speed.

Where to go next

See our ranking, the compare pages, and the steps in how to accept credit card payments. For POS systems see Best POS for small business.

Frequently asked questions

What is payment processing?

It is the process that authorizes a customer's payment, moves the money and deposits it with the business. Providers charge fees for it.

What does it cost?

Usually a percentage plus a fixed fee per sale, plus any plan, hardware or dispute fees. Pricing models differ.

Which payment methods should I accept?

Cards, and where you sell online or invoice, bank payments and wallets. Check each provider's listed methods and fees.

How do I choose a processor?

Compare effective cost at your volume, contract terms, funding speed and support, and read the limitations we list.

Is there a free way to compare?

Yes: our calculator and comparison pages use only published information.

Keep reading

Sources