Best credit card processing companies for small business in 2023

When it comes to accepting credit card payments, small businesses have a variety of options to choose from. In this article, we will outline some of the best credit card processing companies for small businesses.

1.  Square: Square is a popular choice for small businesses because it is easy to set up and use. It offers a range of payment processing solutions, including a mobile card reader, online payment gateway, and in-store point-of-sale system. Square also offers competitive processing rates and has no monthly or annual fees.

2.  PayPal: PayPal is another popular choice for small businesses because it is widely recognized and trusted by consumers. It offers a range of payment processing solutions, including a mobile card reader, online payment gateway, and in-store point-of-sale system. PayPal also offers competitive processing rates and has no monthly or annual fees.

3.  Stripe: Stripe is a popular choice for small businesses because it offers a range of payment processing solutions, including an online payment gateway and in-store point-of-sale system. It also offers competitive processing rates and has no monthly or annual fees.

4.  Shopify: Shopify is a popular choice for small businesses because it offers an all-in-one e-commerce solution that includes credit card processing. It offers a range of payment processing solutions, including a mobile card reader, online payment gateway, and in-store point-of-sale system. Shopify also offers competitive processing rates and has no monthly or annual fees.

5.  Clover: Clover is a popular choice for small businesses because it offers a range of payment processing solutions, including a mobile card reader, online payment gateway, and in-store point-of-sale system. It also offers competitive processing rates and has no monthly or annual fees.

Small businesses have a variety of credit card processing companies to choose from. These companies offer a range of payment processing solutions and competitive rates, making it easy for small businesses to accept credit card payments.

How much does it cost to accept credit cards?

The cost of accepting credit card payments will depend on a number of factors, including the type of business, the volume of transactions, and the types of credit cards being accepted.

Generally, the cost of accepting credit card payments includes two main components: a percentage of the transaction amount, known as the "interchange fee," and a fixed fee, known as the "assessment fee." The interchange fee is set by the credit card networks (such as Visa and Mastercard) and is based on the type of card being used (e.g. consumer credit card, business credit card, rewards card). The assessment fee is a fixed fee set by the credit card networks that covers the cost of operating and maintaining the payment system.

In addition to the interchange and assessment fees, credit card processing companies may also charge additional fees for their services. These fees may include setup fees, monthly fees, gateway fees, and chargeback fees.

The total cost of accepting credit card payments will depend on the specific fees charged by the credit card processing company and the volume and type of transactions processed. Some credit card processing companies offer tiered pricing, where businesses with higher transaction volumes may qualify for lower processing fees. Other companies offer flat-rate pricing, where businesses pay a fixed percentage of the transaction amount regardless of the volume of transactions.

It is important for small businesses to carefully review the fees and terms of any credit card processing agreement to ensure that they are getting the best deal for their business. It may be helpful to compare offers from multiple credit card processing companies to find the best fit for their needs.

What about chargebacks and fraud? How much does that cost?

A chargeback is a request by a credit card issuer to a merchant to refund a transaction that the cardholder disputes. Chargebacks can occur for a variety of reasons, including fraud, unauthorized transactions, or problems with the product or service.

When a chargeback is initiated, the merchant is typically required to refund the transaction amount to the cardholder. The merchant may also be charged a chargeback fee by the credit card processing company, which can range from $20 to $100 or more depending on the company's policies.

Fraud is another potential cost for small businesses. Fraud can occur when a cardholder's information is stolen and used to make unauthorized transactions. Fraud can be difficult to detect and prevent, and it can result in significant financial losses for businesses.

The cost of chargebacks and fraud can vary widely depending on the size and type of business. According to some estimates, small businesses may lose up to 1-2% of their annual revenues to chargebacks and fraud. This can represent a significant financial burden, particularly for businesses with tight margins.

To mitigate the risks and costs of chargebacks and fraud, small businesses can implement measures such as verifying the identity of cardholders, using fraud detection software, and setting limits on the amount and frequency of transactions. Small businesses can also protect themselves by ensuring that their payment systems are secure and following best practices for handling and storing sensitive cardholder data.

Thanks for reading and good luck with your small business!