Every small business needs to accept credit cards — but the processor you choose determines how much you pay in fees, how smooth your checkout is, and whether your monthly statement is readable or a puzzle. We compared the top credit card processors for small businesses on pricing transparency, processing rates, hardware options, and which types of businesses they actually serve well.

Quick Comparison

1. Square — Best for Retail and Food Service

Square is the default choice for small businesses that need to accept cards in person — and for good reason. The hardware works out of the box, the POS software is free, and you can be up and running in under an hour. No monthly fee, no contract, no surprises on your bill.

Pros:

• No monthly fees, no contracts, no hidden charges
• Free POS software with inventory, employee management, and reporting
• Excellent hardware ecosystem (Reader, Terminal, Register, Stand)
• Built-in invoicing, online store, and appointment scheduling
• Handles restaurants well (tip handling, kitchen display, table management)
• Instant deposit available
• Strong app marketplace for integrations
• Predictable flat-rate pricing — easy to understand

Cons:

• Flat-rate pricing is more expensive at higher volumes
• Limited customization for complex businesses
• Customer support is primarily chat and email — phone support is slow
• Higher-tier software features (Square for Restaurants, Retail) cost extra
• No interchange-plus pricing option
• Chargeback fees are steep ($25 per dispute)

Pricing: In-person 2.6% + 10¢; Online 2.9% + 30¢; Manual entry 3.5% + 15¢. Square for Restaurants adds $0/mo (Free) or $60/mo (Plus). Square for Retail adds $0/mo (Free) or $60/mo (Plus).

Best for: Retail shops, food trucks, restaurants, and any small business that needs a reliable in-person card acceptance system with no monthly commitment.

Try Square →

2. Stripe — Best for Online and Tech-Forward Businesses

Stripe is what you use when your business lives on the internet. The API is developer-friendly, the documentation is best-in-class, and it integrates with virtually every e-commerce platform, subscription tool, and SaaS product. If you’re building an online store, running a subscription service, or want maximum control over your payment flow, Stripe is the clear choice.

Pros:

• Best-in-class API and developer tools
• Supports 135+ currencies and dozens of payment methods
• Built-in support for subscriptions, invoicing, and marketplace payments
• Connect platform for multi-party payments
• Extensive integration library (Shopify, WooCommerce, BigCommerce, etc.)
• Transparent flat-rate pricing with no monthly fee
• Excellent fraud prevention (Radar)
• Real-time dashboards and reporting

Cons:

• In-person hardware options are limited compared to Square
• Not designed for non-technical users — setup requires some comfort with APIs
• No built-in POS software for traditional retail
• Customer support is email-only for basic plans
• Chargeback fees of $15 per dispute
• Not ideal for businesses that primarily need countertop card acceptance

Pricing: Integrated checkout 2.9% + 30¢; Customized checkout 2.7% + 5¢ (in-person), 2.9% + 30¢ (online); Interchange+ available for high-volume businesses (custom pricing).

Best for: E-commerce businesses, SaaS companies, online service providers, and any business that wants developer control over its payment experience.

Try Stripe →

3. PayPal — Best for Occasional and Side Businesses

PayPal’s biggest advantage is that everyone already has an account. If you’re running a small side business, doing occasional in-person sales, or selling at craft fairs and markets, PayPal (with its Zettle card reader) gets you accepting cards with almost zero setup. The tradeoff is that PayPal’s fee structure is less competitive as you grow.

Pros:

• Virtually everyone has a PayPal account — reduces checkout friction
• Free Zettle POS app for mobile point-of-sale
• No monthly fees or long-term contracts
• Accepts PayPal, Venmo, credit/debit cards, and buy-now-pay-later
• Built-in invoicing and payment links
• Fast setup — you can start accepting cards today
• Strong buyer and seller protection
• Works well for occasional sales and seasonal businesses

Cons:

• Higher online transaction rates than Square or Stripe (2.59% + 49¢)
• PayPal holds and freezes are common and can lock up your funds
• Customer service is notoriously difficult to reach
• Not designed for full-scale retail operations
• Limited hardware options
• Chargeback fee of $20
• Zettle in-person rate (2.29% + 9¢) is competitive but not the cheapest
• Account limitations and rolling reserves can disrupt cash flow

Pricing: In-person (Zettle) 2.29% + 9¢; Online 2.59% + 49¢; QR code 1.5% + 0¢; Donations 2.89% + 49¢.

Best for: Side businesses, occasional sellers, craft fair vendors, and small businesses that want the fastest possible setup with universal customer recognition.

Try PayPal →

4. Stax — Best for Higher-Volume Businesses

Stax (formerly Fattmerchant) flips the traditional pricing model on its head. Instead of marking up every transaction, Stax charges a flat monthly subscription and passes interchange rates through at cost. If you process more than about $10,000/month, the savings on interchange-plus pricing can easily exceed the $99/month subscription fee. The catch: you need enough volume to make the math work.

Pros:

• True interchange-plus pricing with 0% markup on transactions
• Subscription model means savings scale with volume
• Transparent billing — no hidden fees or tiered rate surprises
• Built-in invoicing, recurring billing, and virtual terminal
• Strong reporting and analytics dashboard
• Good hardware options including mobile and countertop terminals
• No contracts (month-to-month)
• Dedicated account representative for support

Cons:

• $99/month minimum makes it expensive for low-volume businesses
• Requires roughly $10K+/month in processing to justify the cost
• Interface is less polished than Square or Stripe
• Fewer integrations than Stripe
• Limited free POS software — leans third-party
• Not ideal for businesses processing under $5K/month
• Setup is more involved than plug-and-play options

Pricing: $99/month subscription + interchange cost on transactions (no percentage markup). Effective rate depends on your card mix but typically works out to 2-3% total for in-person, 2.5-3.5% for online.

Best for: Established small businesses processing $10K+/month that want to reduce their effective rate by eliminating per-transaction markups.

Try Stax →

5. Helcim — Best Transparent Interchange-Plus Pricing

Helcim offers what most processors promise but rarely deliver: truly transparent interchange-plus pricing with no hidden fees, no contracts, and no monthly minimums. You see the exact interchange cost plus Helcim’s fixed markup on every transaction. If you’ve ever been burned by a processor’s teaser rate that ballooned after month one, Helcim is the antidote.

Pros:

• Fully transparent interchange-plus pricing — you see every cost
• No monthly fees, no contracts, no minimums
• Volume discounts automatically reduce your rate as you process more
• Excellent Helcim Smart Terminal and Helcim Reader hardware
• Free virtual terminal, invoicing, and recurring billing
• Strong customer support (real humans, based in North America)
• Built-in surcharging tool (pass fees to customers where legal)
• Automatic billing adjustments as your volume grows

Cons:

• Less brand recognition than Square or Stripe
• Smaller app marketplace and fewer integrations
• Not designed for purely online/e-commerce businesses
• POS software is functional but less feature-rich than Square
• Limited restaurant-specific features
• No built-in online store capability
• Fewer payment method options than Stripe

Pricing: In-person: interchange + 0.5% + 8¢; Online: interchange + 0.5% + 25¢; Keyed: interchange + 0.5% + 25¢. Volume discounts kick in automatically at $10K, $25K, $50K, $100K, $250K, $500K, and $1M+ monthly thresholds.

Best for: Growing small businesses that want transparent, fair pricing and are tired of hidden fees and rate surprises from traditional processors.

Try Helcim →

How to Choose

1. Where do most of your sales happen?

Mostly in-person (retail, restaurant, service) → Square or Helcim. Mostly online → Stripe. Mix of both → Square (if in-person is primary) or Stripe (if online is primary).

2. What’s your monthly processing volume?

Under $5K/month → Square or PayPal (flat-rate, no monthly fee keeps it simple). $5K–$10K/month → Helcim (interchange-plus starts saving you money). Over $10K/month → Stax or Helcim (subscription or volume-discounted interchange-plus will save you hundreds per month).

3. How technical is your business?

Not technical at all → Square (plug in and go). Somewhat technical → Helcim or PayPal. Developer on the team → Stripe.

4. What’s your business type?

Retail store → Square (best hardware + POS). Restaurant → Square (dedicated restaurant POS). E-commerce → Stripe (best API and integrations). Service business (HVAC, landscaping, consulting) → Helcim (good invoicing + virtual terminal) or Square. Craft fair / occasional → PayPal Zettle. Higher-volume established business → Stax.

5. How much do hidden fees bother you?

If you’ve been burned by a processor’s teaser rate or mysterious surcharges, Helcim is the most transparent option available. You’ll see exactly what interchange costs and exactly what Helcim charges — nothing hidden, ever.

Our Top Pick

For most small businesses, Square is the best starting point — it’s free to get started, the hardware is excellent, and the POS software handles retail and food service out of the box. If you’re processing more than $10K/month, switch to Helcim to save money with interchange-plus pricing. And if your business lives online, Stripe is the obvious choice.

The best processor is the one that matches how your business actually takes payments. Start simple, track your effective rate, and upgrade when the fees justify it.

SoftDecide helps churches, nonprofits, and small organizations find the right software. Our comparisons are independently researched. We may earn a commission if you purchase through links on this page — at no extra cost to you.