Credit Card Processing for Small Business: Best Picks for 2025

Whether you're ringing up lattes, managing online bookings, or scaling your ecommerce business, choosing between small business payment options is a big move. One game-changing decision you’ll face? Whether it’s time to start accepting credit cards. Or if you already are, whether your credit card processing setup is actually working for you. 

Let’s dive into the best credit card processing for small business in 2025. We’ll break down what to look for in merchant services for small businesses and how to compare them.

Jump down for our full list, or check our quick rundown to get you started.

TL;DR: What’s the best credit card processing for small business in 2025?

Here are our top picks for credit card processing for small business owners at a glance:

• Best for on-the-go? Go with Square or Clover. Easy, mobile-friendly, and made for moving around and moving fast.
• Best for ecommerce? Stripe or Shopify are your best bet. Seamless integrations and built to grow online.
• Best for service businesses with tipping? Toast is your best friend. Especially if you're in food service or hospitality.
• Best for high-risk industries? PaymentCloud covers your bases best. They specialize in businesses that other processors might shy away from.
• Best for lowest fees or high volume? Check out Helcim or Stax. Transparent pricing, competitive rates, and perfect for businesses that process a lot of transactions.

What is credit card processing (and why does it matter for small biz)?

Credit card processing is what lets small businesses like yours accept credit card payments from customers—whether in person, online, or over the phone. Your credit card processor is the behind-the-scenes tech that makes sure the money goes from your customer’s bank into your business account.

Even though it takes just a few seconds, it’s a bit more complicated than just “swipe and done.” Here’s who’s involved in each transaction:

• The Cardholder – Your customer.
• The Credit Card – Your friends at Visa, Mastercard, Amex, etc.
• The Merchant – That’s you!
• The Point-of-Sale System – The tool you use to take the payment (card reader, online checkout, mobile device).
• The Issuing Bank – Your customer’s bank (the one that issued their card).
• The Acquiring Bank – Your business’s bank (where the money ends up).
• The Merchant Services Provider – The company that connects it all and makes sure the payment goes through (who we’re talking about here).

Every time a customer swipes, taps, or types in their card, here are the three steps that happen behind the scenes:

• Authorization – The card is swiped or entered, and your system asks the customer’s bank, “Is there enough money?” If yes, it’s approved.
• Clearing – The transaction details get sent through the network and matched between banks.
• Settlement – The customer’s money is officially moved from their account to yours.

For small businesses, credit card processing isn’t just about convenience—it’s about survival. You’re working with tighter margins, you’re often relying on quick cash flow, and you can’t afford long deposit delays or hidden fees. 

The wrong credit card provider can drain your budget without you even noticing. Whether it’s hidden fees, glitchy hardware, or poor support, they can slow you down, frustrate your customers, and eat away at your profits.

But the right credit card provider? Fast deposits and transparent pricing can make a huge difference—they can save you serious money, speed up your checkout process, and even help you scale. 

What to look for in a credit card processor for small business

Always read the fine print. Choose a provider whose pricing aligns with your volume and needs. Here’s what to keep in mind:

Processing fees and total cost

Looking for the cheapest credit card processing, and trying to avoid processing fees entirely? Not gonna happen, sadly. But choosing the right pricing model can help you minimize what you pay and keep you from getting hit with surprise charges. 

The three main pricing structures are:

• Flat rate – Simple and predictable. Great for businesses processing under $5K/month, with one consistent rate across all payment types.
• Interchange plus – Ideal for higher-volume businesses. You pay the interchange fee set by the card network plus a small markup from your processor.
• Membership/tiered pricing – Includes a monthly fee, but often lower per-transaction rates. Best if you process a lot and don’t mind committing.

Then, look into any costs beyond the rates. Watch out for these extras:

• Transaction fees – Usually 1–4% + up to 50¢ per sale, depending on card type and how the payment is taken.
• Service fees – Monthly or annual fees for using the service, plus PCI compliance charges.
• Setup/termination fees – You might pay for hardware setup or to cancel your account early.
• Incidentals – One-off fees for things like chargebacks, refunds, or special verifications.

Contracts and hidden fees

Keep your escape route open, especially if you’re just getting started. When you're launching or growing your small business, the last thing you need is to be trapped in a long-term contract with a processor that’s not pulling its weight. Skip the ones that lock you into annual commitments or slap you with hefty cancellation fees.

Instead, look for flexible, no-strings-attached options like month-to-month plans, no subscriptions, and no early termination penalties. If things don’t work out, you should be able to walk away without any surprises.

Hardware needs

Credit card terminals for small business aren’t one-size-fits-all. Depending on how you sell—online, in person, or both—you might need hardware like a card reader or POS system, or a virtual terminal for online payments.

And a heads-up: buying your equipment outright is usually cheaper in the long run than leasing it (even if the monthly payments seem tempting at first).

Online payment capabilities

Online credit card payment processing is pretty much non-negotiable in 2025—even for brick-and-mortar shops. The best credit card processors for small business make it easy to accept payments through your website, send invoices, offer subscriptions, or get paid via email. 

Look for tools that integrate with your ecommerce platform and offer secure, user-friendly checkout options. The easier it is for your customers to pay online, the faster your cash flow.

Integrations with payroll, tip management, POS, or booking tools

Look for smart integrations. The best credit card processing systems don’t just handle payments—they should also work with the other tools you use every day. 

Whether that’s your payroll software, tip management system, POS, or booking platform, solid integrations save you time and cut down on mistakes. The more connected your tools are, the smoother your operations will be.

Customer service and dispute resolution

Think about the kind of support you’ll actually need when things go sideways (because they will). Do you want 24/7 live phone support? Or are you okay with email or chatbot help during business hours? 

If you run a business with late nights, weekends, or off-hours, make sure your processor’s support team is available when you need them, not just 9 to 5.

The best credit card processing options for small business (2025)

Alright (*rubs hands*), let’s get into it. What’s the best credit card processor for your small business? It’s all about matching your needs with factors like clear and fair pricing, ease of use, quick access to your funds, flexible options that grow with you, and strong customer support.

Here’s a look at the software that’s making life easier for SMBs in 2025. Whether you’re a solo shop or scaling fast, you’ll find something here that fits your style and budget.

Best for on-the-go: Square or Clover

‍Square is used by tons of small businesses for good reason: it’s affordable, it’s user-friendly, and its free credit card reader connects to smartphones and a free POS app. A great choice for small businesses on the go, like pop-up shops or market vendors.

Monthly fee:

• Starting at $0 for unlimited devices and locations

Payment processing fees:

• In-person – 2.6% plus 10 cents
• Online – 2.9% plus 30 cents
• Keyed-in – 3.5% plus 15 cents

Pros:

• Free to start with no setup or chargeback fees
• Basic plan offers no monthly fees
• AI-powered features like a menu generator, image creator, and content generator
• Integration with ecommerce platforms and many other third-party apps
• Instant access to funds for a 1.5% fee

Cons:

• 24/7 customer support is only available for paid subscribers
• Not cost-effective for businesses with high-volume transactions
• Incompatible with Windows devices
• Not available to all industries

‍Clover is great for brick-and-mortar businesses that need more robust POS hardware. Think retailers, restaurants, and field service businesses like landscaping companies.

Clover stands out for its customizable POS systems, built-in features like inventory and employee management, and sleek hardware that fits right into a busy storefront.

‍Monthly fee:

• $14.95 and up

‍Payment processing fees:

• In-person – 2.3% plus 10 cents
• Online – 3.5% plus 10 cents

‍Pros:

• POS integrates with its mobile app and virtual terminal
• Predictable transaction fees
• 24/7 customer support
• Integrates with Quickbooks Online and Xero

‍Cons:

• Most expensive online processing fees
• Only available in select countries
• Added costs include a monthly platform and application fee

Best for ecommerce: Stripe or Shopify

‍Stripe is a solid choice for ecommerce businesses of all sizes—it’s a global payment system accepting over 135 currencies. It’s built for developers, tech-savvy businesses, and custom platforms. 

It’s ideal if you want full control over your payment flow, especially for online businesses, SaaS companies, subscription models, or marketplaces. Stripe shines when you have (or want to hire) a developer to tailor your checkout experience.

Monthly fee:

• Starting at $0

‍Payment processing fees:

• In-person – 2.7% plus 5 cents
• Online – 2.9% plus 30 cents

Pros:

• No monthly or setup fees
• Option for instant payouts for 1% fee
• Advanced reporting and fraud protection tools
• 24/7 phone, chat, and email support
• Seamlessly syncs with Quickbooks Online

Cons:

• Extra cost for hardware and POS software
• Advanced features require technical knowledge
• Not available to all industries

‍Shopify is a fantastic pick for product-based small businesses, giving you a ready-to-go online store with everything you need to sell online. Credit card processing, inventory tracking, and a slick storefront. It’s got all the tools to run your shop, in one place. 

It’s an easy, visually appealing way to launch and grow online without juggling a bunch of different platforms—no coding required.

Monthly fee:

• $5 for Starter plan and up to $399 for Advanced plan

‍Payment processing fees:

• In-person – 2.7% plus 10 cents
• Online – 2.9% plus 30 cents

‍Pros:

• Accepts a wide variety of payment methods and currencies
• Competitive and transparent transaction rates
• Customizable checkout page
• Automatic setup with Shopify stores

‍Cons:

• Monthly plan is required
• Only available in select countries
• Extra fee for use of third-party payment gateway

Best for service businesses with tipping: Toast

‍Toast is an awesome choice that’s purpose-built for restaurants, cafes, and bars—it’s a full-service POS and payment system to handle your menus, orders, tips, and tables, all in one spot. 

It’s especially great for businesses where tipping matters, offering built-in tools for tip prompts, pooling, and payout management to keep both your staff and your customers happy.

‍Monthly fee:

• $0 for Starter Kit and up

‍Payment processing fees:

• 2.49% plus 15 cents if you buy hardware upfront
• 3.09% plus 15 cents for pay-as-you-go

‍Pros:

• Sturdy, spill-resistant hardware
• Free plan offers up to 2 POS terminals
• Integration with their payroll and team management software
• Seamless tip management solution

‍Cons:

• Requires a 2-year contract with early termination fees
• Pricy payment processing fees
• Extra charges for setup

Best for high-risk industries: PaymentCloud

‍PaymentCloud is a go-to option for high-risk businesses that traditional processors might shy away from—think industries like supplements, adult services, or CBD products. 

If you've had trouble getting approved elsewhere, PaymentCloud works with a large network of banks to help you get set up, plus they give personalized support and tools for both online and in-person payments.

Monthly fee:

• Ranging from $0 to $50

‍Payment processing fees:

• From 2.4% plus 10 cents to 3.5% plus 25 cents

‍Pros:

• Highly tailored contracts
• Free hardware for the duration of the contract
• Free, same-day e-commerce setup
• QuickBooks Online integration

‍Cons:

• Pricing is not available online
• Approvals can take a long time
• Early termination fee

Best for lowest fees or high volume: Helcim or Stax

‍Helcim is perfect for small to mid-sized businesses looking for transparent, volume-based pricing that gets cheaper as you grow. It’s great for retailers, service providers, and nonprofits who want simple, no-hidden-fee pricing, easy-to-use tools, and solid customer support that actually listens.

‍Monthly fee:

• None

‍Payment processing fees:

• In-person – 1.76% plus 8 cents
• Online and Keyed-in – 2.39% plus 25 cents

Pros:

• Free software for merchants
• No contracts or hidden fees
• Low interchange fees for each credit card type
• Free PCI Compliance
• Seamlessly syncs with Quickbooks Online and Xero to

‍Cons:

• No option for same-day deposit
• Not cost-effective for businesses with low-volume transactions
• Limited hardware offerings
• Not available to all industries

‍Stax is great for high-volume businesses that want to save on processing fees—it uses a subscription-style pricing model, so you keep more of each sale. 

It’s a smart choice for professional services, healthcare providers, and growing retail or e-commerce businesses processing $10,000+ per month. Thumbs up for their transparent pricing, detailed reporting, and integrations that scale with you.

Monthly fee:

• $99 and up

‍Payment processing fees:

• In-person – 0% plus 8 cents
• Online – 0% plus 15 cents

‍Pros:

• Transparent and reliable pricing
• 0% markup on top of interchange fees
• Option for same-day payouts for 1% fee
• 24/7 in-house customer support
• Lowest-tier plan includes a free terminal or mobile reader

‍Cons:

• Low-volume sales will result in higher cost
• Limited integration options for lower tier subscriptions
• Minimum 48-hour setup time

How payment processing connects to payroll and tip management

Accepting card payments is just one piece of the puzzle. The real challenge? Figuring out how to split that income, especially when you’ve got tipped staff or a crew working all kinds of hours.

Payment processors like Toast, Square and Clover are built with these kinds of businesses in mind, giving you features to track tips, manage shifts, and streamline payouts. 

And if you’re juggling schedules, time tracking, and payroll on top of that—don’t worry, there’s help for that too…

Turn payments into paychecks with less hassle

Struggling with more than just credit card processing fees? Homebase has your back. We’re an all-in-one app designed to help with all things finance, especially when it comes to small business payroll, tipping, and taxes. 

‍"Homebase helps us run a much smoother operation amongst our always changing and growing market & restaurant - with key elements of scheduling, time cards, internal messaging, and documenting cash tips. It makes these critical pieces of the operation much easier to keep organized and current." — Ashlea Hogancamp, owner of Herban Market

Here’s why Homebase means way less hassle across the board:

• Track hours, calculate wages, and easily distribute tips. Homebase keeps track of who worked when, how much they earned, and how tips should be split. No spreadsheets. No stress.
• Make payroll processing automatic. When it’s time to run payroll, just click a few buttons. Homebase handles hours, wages, and taxes for you.
• Get built-in tip tracking and management tools. Tips don’t have to be a guessing game. Homebase makes it easy to track and divide them fairly.
• Time tracking + wage calculation = fewer payroll errors. When your time clocks and pay rates are connected, payroll gets way more accurate and a whole lot easier.

If you’re ready to ditch the chaos and make payday a breeze for your hourly team, Homebase might just be your new secret weapon. Hire, schedule, track time, pay your team, and stay compliant—all in one simple mobile app. 

Curious how Homebase can help your team? Try it free and see why so many small businesses rely on us every day.

Credit card processing for small business FAQ

‍What is the best credit card processing for a small business?

It depends on how you run your business—things like how much you sell, whether it’s in-person or online, and what you’re willing to spend. 

Some folks love Square for its affordable simplicity, while others go with Stripe or Clover if they need more customization. The best choice is going to be the one that fits your workflow, your budget, and how your customers like to pay.

What is the cheapest way of taking card payments?

The cheapest way to take card payments depends on your sales volume and how you accept payments. 

For small or mobile businesses with low-volume or in-person sales (think pop-up shops and market vendors), Square is a great low-cost option with no monthly fees. For higher-volume businesses, Helcim can be cheaper thanks to pricing that gets better as you grow.

‍How much does credit card processing cost for a small business?

Credit card processing costs for small businesses can vary quite a bit depending on your sales volume and how you take payments. Here’s a quick look at some popular providers:

• Square is a popular, low-cost option with no monthly fees and a 2.6% plus 10 cents rate for in-person transactions. 
• For businesses with higher volume, Helcim offers lower rates starting at 1.76% plus 8 cents.
• Clover and Toast give more advanced features but come with higher fees, around 2.3–2.5%, plus a small per-transaction cost.

‍Can you pass credit card processing fees to customers?

Yes, in many states you can pass credit card processing fees to your customers—it’s called surcharging. Just make sure you check local laws and let customers know upfront so there aren’t any surprises at checkout.

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