If you’re a very small or brand-new business, start with a mobile payment processor like Square. Go with a dedicated merchant services provider, like PayPal or Stax, for better rates. Major banks provide many of the same services as payment processing companies, but they tend to charge more. On ProMerchant's Website Use a Merchant Services Provider Related: Best Credit Card Processing Companies Experts generally advise against using a servicer with this model because pricing isn’t transparent, so it can be costly and difficult to negotiate. Tiered pricing: The processor bundles interchange fees and tiers pricing, so you pay a variable rate in three tiers, rather than different rates for each credit card.This is a good model for businesses that process a lot in credit card transactions each month because they can negotiate the processor’s fee to save money. Interchange plus: Pay a flat fee per transaction (the processor’s cut) plus a varying percentage of the transaction that matches the amount charged by the credit card company (interchange fee).This is usually the best model for small businesses that have low-priced tickets or process less than $5,000 per month. Flat rate: Pay the same rate for every transaction, usually a percentage plus a small fee.Payment processors use one of these three pricing models to charge fees: Related: Best 0% APR Business Credit Cards Types of Credit Card Processing Fees Incidental fees: You pay these one-time fees in specific situations, such as chargebacks, nonsufficient funds or special verification services.Some payment processing companies give you equipment for free with a monthly subscription. Equipment setup: If you have to get a POS station and a credit card reader, you may have to purchase or lease those or pay a refundable deposit to use them.Service fees: Some processors charge a monthly or annual subscription fee to use the service, on top of transaction fees.Some processors charge a flat fee that’s the same for every transaction, and some vary the percentage and fee depending on factors like which credit card is used or which membership plan you’re on. Fees are typically charged as a percentage of the sale, ranging between 1% and 4%, plus a fee of less than $0.50. Transaction fees: Pay these each time a customer checks out with their card, whether they swipe or enter the information online.Payment Depot is for U.S.-based companies and is best suited for established businesses with a stable transaction volume from month to month.ĭepending on how you accept payments in your business and which service you use, you may pay these fees to accept credit and debit card payments from customers: Learn More: Read our full Payment Depot review. Interchange plus pricing includes a flat fee of between 7 cents and 15 cents. Monthly pricing is between $99 and $199, depending on the setup you need and how much you process in payments each month. A monthly subscription includes an online store, free POS equipment setup and mobile payment processing with your smartphone. With Payment Depot, you can accept payments online, in person, over the phone or via invoice. Payment Depot is quick and easy to set up, which helps you get up and running collecting debit and credit card payments in as little as 24 hours. You pay a monthly fee based on your transaction volume, plus a flat per-transaction fee based on your membership tier. If you’re a merchant on the go, the free Square Reader that connects to your smartphone is a nice perk.Ĭompared with the high transaction fees of well-known payment processors, Payment Depot keeps its fees low by using a tiered membership platform. It charges no monthly fee, and you’ll only pay for the transactions you process. Square is best suited for businesses with a variable monthly transaction volume. If you need to manually enter the customer’s card number, such as if they call to place an order over the phone, the rate increases to 3.5% plus 15 cents per transaction. If you opt to use Square for online sales, you can expect to pay a higher rate of 2.9% plus 30 cents per transaction. In-person payments cost the merchant a fee of 2.6% plus 10 cents per transaction. There’s much to like in this affordable, user-friendly POS. It charges no monthly subscription, just a percentage-based transaction fee, regardless of the size of your business. Square is an online and mobile payment processing and point-of-sale (POS) platform for businesses of all sizes, from startups to small brick-and-mortar shops to large, multi-store operations.
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