Payment processors let you accept credit and debit cards, digital wallets and bank payments. Fees are the largest ongoing cost for many small businesses, so understanding pricing models is worth an hour of your time.
Flat-rate processors are simple and predictable; interchange-plus pricing is more transparent and often cheaper at higher volume. Contract terms, payout speed and how disputes are handled matter as much as the rate.
What to look for
- Online checkout and payment links
- In-person card readers and POS
- Digital wallets (Apple Pay, Google Pay)
- Recurring billing and invoicing
- Fraud screening and chargeback tools
- Fast or instant payouts
How pricing works
- Flat rate: one percentage plus a fixed fee per transaction
- Interchange-plus: card network cost plus a disclosed markup
- Tiered pricing bundles rates into qualified/non-qualified buckets — the least transparent model
- Watch for monthly minimums, PCI fees, chargeback fees and early-termination fees
Model three-year cost with our total cost of ownership calculator.
Commonly evaluated Payment Processing providers
Selected by our editors as a starting point — not ranked, and not paid placements. Ratings appear only after genuine reviews pass moderation.
Stripe
Square
PayPal Business
Adyen
Helcim
Clover
Questions to ask every vendor
- Is pricing flat-rate, interchange-plus or tiered?
- Is there a contract term or early-termination fee?
- What are the chargeback and refund fees?
- When are funds paid out, and can reserves be held?
- Do we own our card-vault data if we switch?
Red flags
- Tiered pricing with vague rate tables
- Equipment leases you cannot cancel
- Liquidated-damages clauses
- No clear process for account holds or reserves
Frequently asked questions
What is interchange?
Related guides
- How to choose business software: a 7-step buying framework
- CRM buyer's guide for small and mid-sized businesses
- The hidden costs of SaaS: total cost of ownership explained
Editorial content written by the BusinessReviews.com team following our editorial policy. Vendor names are trademarks of their owners. Verify current pricing and features with each vendor.