20 Best Ecommerce Credit Card Processing Companies, Reviewed for 2024
The Top 10 Credit Card Processors for Online Small Business
Before we start with everything else, let’s take a look at our top picks for the best credit card processing companies for ecommerce brands and see what each is best for.
Our one-on-one guidance will help you find the perfect fit.
When selling online, you don't usually say, "cash or credit?" It's a digital world, so you take the digital dollars. That means accepting credit cards. But, you need to find a great credit card processing company to give you as much of that sale as possible.
Choosing the wrong solution means you're in for copious fees, at the least. At the worst, you'll get bad customer service, poor security, slow settlement, and sloppy (or no) integration with your existing tools.
So, you want to find an ecommerce credit card processor that'll be transparent and light on the fees, have robust security, seamlessly integrate with your tech stack, support tons of payment methods, be friendly and accessible when you need them, and more.
Well, good for you that you landed here. We've got the ecommerce expertise to point you to the right solutions. And, we've put together a big ol' list of the best credit card processing companies out there.
So, let's get to it.
What is a Credit Card Processing Company?
An ecommerce credit card processing company is a service that enables online businesses to accept payments from customers using credit or debit cards.
It handles the nitty-gritty details of processing payments, so you don’t have to. These companies verify that your customer’s card is legit, keep transactions secure, and transfer the money from your customer’s bank to yours, all in a matter of seconds.
Key functions:
- Payment processing and authorization. Think of this as the “approval dance” where the processor checks if your customer’s card has the funds and gives the green light for the transaction.
- Security and fraud prevention. It’s your digital security guard, using encryption and other techie tools to protect sensitive information and prevent fraudsters from crashing the party.
- Supports multiple payment methods. Beyond just credit and debit cards, they help you accept payments from digital wallets (like Apple Pay and Google Pay) and sometimes even options like Buy Now, Pay Later—because more payment options mean more happy customers.
- Integration with ecommerce platforms. They play nice with popular platforms like Shopify, WooCommerce, and Magento, making it super easy to set up and start taking payments without needing to be a tech wizard.
In short, ecommerce credit card processors are the behind-the-scenes heroes of online shopping, making sure your customers’ payments go through smoothly while keeping everyone’s data safe and secure.
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Comparing the Best Credit Card Processing Software For Ecommerce
First, let’s compare pricing for our top credit card processing companies. But, that isn’t the whole story. Click Compare Software below the table to find even more feature comparisons.
| Tools | Price | |
|---|---|---|
| Stax Pay | From $99/month | Website |
| Shopify POS | Pricing upon request | Website |
| Payment Depot | From $79/month | Website |
| CardX by Stax | From $29/month | Website |
| Swipesum | From $50/hr | Website |
| Square Online | From $35/month and 2.9% + $0.30/transaction | Website |
| Helcim | From 0.50% + $0.25 per transaction | Website |
| Merchant One | From $13.95 plus 0.29% + 1.55% per transaction | Website |
| Clover | From 2.3% + $0.1 per transaction | Website |
| Stripe | From 2.9% + 0.30/transaction | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareHow to Choose a Credit Card Processor for Ecommerce
Choosing the right credit card processing for ecommerce can feel like navigating a maze. To help you find your way, here are some key points to consider as you evaluate your options:
- Identify the problem you’re trying to solve. Pinpoint the specific issues you need to address, like high fees, limited payment options, or inadequate security measures. This will help you focus on processors that can fill those gaps effectively.
- Consider who will need to use it. Determine the scope of users—whether it’s just the ecommerce team or the entire organization. This will influence your decision on ease of use versus advanced features, as well as the number of licenses required.
- Check compatibility with other tools. Make sure the processor integrates seamlessly with your existing systems like your ecommerce platform, CRM, or accounting software. This ensures smoother operations and minimizes the need for manual data entry.
- Define the outcomes you want to achieve. Be clear about the results you're looking for, whether it's reducing costs, increasing transaction speed, or enhancing customer experience. This will guide you in choosing a processor that aligns with your business goals.
- Evaluate how it fits with your business processes. Consider how the new processor will integrate with your current workflows. It should streamline operations, not complicate them. Remember, the most popular tool isn’t always the best one for your unique needs.
With these points in mind, you'll be better equipped to choose a credit card processor that fits your ecommerce business like a glove, supports your growth, and simplifies your operations.
The 10 Best Ecommerce Credit Card Processing Companies, Reviewed
Here, we review our top credit card processing services, including the best use case for each, key features, and pros/cons. You’ll find the remaining picks below that.
Stax Pay is an all-in-one platform that simplifies payment processes for businesses, offering secure in-person and online credit card payment processing.
Why I picked Stax Pay: With a transparent pricing model and comprehensive support system, Stax Pay provides simplicity and clarity for informed decision-making. Its all-in-one business management platform allows for the acceptance of multiple payment types and seamless integration of necessary tools within a single dashboard. This capability is particularly beneficial for ecommerce businesses that require a robust system to handle various transaction methods.
Stax Pay Features and Integrations
Features include payment processing, customized invoicing, subscription billing, a virtual terminal, robust analytics, customer management, a developer-friendly API, inventory tracking, and multi-location support. Stax Pay also provides next-day funding, omni-channel payment solutions, point of sale options, and seamless integration with various business tools and software.
Integrations include Slack, Zapier, Microsoft Office, Google Suite, and CRMs. Additional integrations include mobile software development kits in Javascript and Python and a language-agnostic RESTful API.
Pros and cons
Pros:
- Variety of payment solutions
- Detailed analytics and reporting tools
- Subscription-based pricing
Cons:
- Complex features and navigations
- Limited international functionality
Shopify POS streamlines retail and online sales through a unified system, offering seamless inventory, order, and customer data management. Designed for efficiency, it supports a range of payment methods, enhances customer service with its user-friendly interface, and provides actionable insights through detailed analytics.
Why I PIcked Shopify POS: Shopify POS excels in credit card processing by offering secure, swift, and versatile payment solutions tailored to both merchants and customers. It supports a broad spectrum of credit and debit cards, facilitating transactions through encrypted data handling for enhanced security. The system's integration with Shopify Payments simplifies reconciliation and provides real-time insights into sales and financial health.
Shopify POS Standout Features and Integrations
Features include omnichannel selling, deep ecommerce integration, customizable checkout experience, secure credit card processing, real-time inventory management, unified customer profiles, detailed sales analytics, mobile compatibility, support for multiple payment methods, and loyalty program integration.
Integrations include with a variety of tools, including Shopify Payments, Shopify Shipping, Shopify Email, QuickBooks, Xero, Klaviyo, Google Analytics, Oberlo, Printful, and Gift Cards & Loyalty Program by Smile.io
Pros and cons
Pros:
- Advanced inventory management tools
- Robust omnichannel capabilities
- Seamless integration with Shopify
Cons:
- Shopify POS primarily supports hardware sold through Shopify
- Cost can be a deterrent for small businesses
Payment Depot is a merchant services provider that specializes in credit card processing with a focus on transparent interchange+ pricing. This pricing model is considered best for businesses seeking clarity and cost savings on transaction fees, as it allows them to pay the wholesale rate plus a fixed monthly membership fee, avoiding the markups that are typical in the industry.
Why I Picked Payment Depot: Payment Depot excels in offering a transparent and cost-effective credit card processing solution, particularly suited for businesses with high transaction volumes.The platform provides a comprehensive suite of tools including a free payment gateway, virtual terminal capabilities through partnerships like SwipeSimple, and support for various POS systems including Clover. Payment Depot's user-friendly interface and intuitive reporting dashboard enhance its ease of use, making financial management straightforward for business owners.
Payment Depot Standout Features and Integrations
Features include subscription-based pricing, free payment gateway, virtual terminal through swipesimple, compatibility with pos systems like clover and vital select, user-friendly interface, support for mobile and ach payments, integration with major ecommerce platforms, no hidden fees, and dedicated customer support.
Integrations include OpenCart, PrestaShop, 3dCart, BigCommerce, WooCommerce, Magento, Zen Cart, NCR, Authorize.Net, PayTrace, and others.
Pros and cons
Pros:
- Comprehensive equipment offerings
- User interface is straightforward and intuitive
- Cost-effective for businesses with high transaction volumes
Cons:
- Not ideal for low-volume businesses
- Limited to US-based, non-high-risk merchants
Best credit card processing software for compliantly passing costs to customers
CardX by Stax is a payment processing solution that allows businesses to accept credit card payments without incurring the usual processing fees, as these costs are passed on to the customers.
Why I picked CardX: By passing the credit card transaction fee to the customer, businesses can retain the full sale amount, paying only for debit card transactions. CardX ensures compliance with all relevant regulations through its solution, which automates the compliance process. This service is designed to be customer-friendly, offering a no-fee option for debit card transactions. Additionally, CardX supports various payment methods, including online, in-office, and in-person transactions, making it a versatile option for ecommerce businesses.
CardX Features and Integrations
Features include automated compliance, credit card acceptance, surcharge compliance, fee-free debit for customers, interchange fee elimination, online payments, in-person payments, and payment technology solutions.
Integrations include Stax Pay, Stax Connect, Stax Bill, and Stax API.
Pros and cons
Pros:
- 24/7 customer support is available
- Merchants do not pay any fees for credit card transactions
- CardX manages all compliance requirements related to surcharging
Cons:
- Merchants must pay monthly fees for using CardX's hardware and virtual terminal
- Merchants still pay for debit card transactions.
Swipesum is a payment consulting company that offers flexible payment processing solutions for businesses looking to simplify their transaction management.
Why I picked Swipesum: Unlike many standard processors, Swipesum operates independently from specific providers, allowing you to access top gateways and processing options from their processor-agnostic platform. With Swipesum, you can connect to the top gateways and processors for credit card payments, so you get flexibility in choosing providers tailored to your requirements. Additionally, Swipesum’s platform includes a rate auditing service, which consistently reviews and adjusts rates to lower costs, making it ideal for ecommerce operations that need efficient cost management.
Swipesum Features and Integrations
Features include fraud prevention, dispute management, dedicated account managers, AI-driven fee analysis, tailored setup support, real-time rate alerts, custom-built payment integrations, data-driven reporting, free gateway setup, expert consultations, and technical support for all integrations.
Integrations include Shopify, NetSuite, WooCommerce, Square, Stripe, Clover, Magento, QuickBooks, BigCommerce, Vend, Lightspeed, and Salesforce.
Pros and cons
Pros:
- Processor-agnostic approach allows flexible provider options
- AI-driven statement analysis for transparent fee management
- Supports chargeback management and fraud prevention
Cons:
- Customized solutions can take longer to set up
- Not ideal for businesses preferring a self-service setup
Best credit card processing software for mobile-first shopping experiences
Square Online offers a comprehensive solution for credit card processing for ecommerce, providing businesses with the tools and support they need to securely accept online payments from customers.
Why I picked Square Online: Square Online offers a range of features, including POS systems, online ordering, marketing tools, and payment processing, tailored to different industries such as restaurants, retail, beauty, and professional services. The platform also helps you create mobile-friendly checkout pages without a developer. The software transforms your checkout page into something that’s easy to navigate on every mobile device, reducing any friction associated with the payment process.
Square Online offers native integrations with the world’s most popular ecommerce platforms, allowing you to create a hassle-free payment process with ease. You can also customize your checkout page and buttons to match your brand.
Square Online Standout Features and Integrations
Features include customizable website themes and dynamic styling tools, which allow users to create a unique online presence. The platform also excels in order management by syncing online and in-store inventory, and it supports various payment methods including Square Pay, Apple Pay, and Google Pay.
Integrations include QuickBooks, Xero, Bookkeep, Facebook Ads, Google Ads, Squarespace, Thrive Inventory, Wix, WooCommerce, and more.
Pros and cons
Pros:
- Mobile-friendly design
- Built-in inventory management
- Free plan available
Cons:
- Dependency on Square ecosystem for additional features and services
- Limited design themes
Helcim
Best credit card processing software for good interchange rates
Helcim is a credit card processing software that enables ecommerce business owners to offer multiple payment options while benefiting from reasonable interchange fees.
Why I picked Helcim: Helcim has an easy onboarding process and a smooth learning curve. The solution offers proprietary payment pages, which can simplify the deployment process.
Unlike other credit card processors, Helcim doesn’t charge monthly fees for online transactions, which makes it ideal for startups and small businesses who are just starting out in the ecommerce industry. The software uses interchange plus pricing, which is a transparent model that’s easy to understand.
Helcim Standout Features and Integrations
Features include POS, online checkout, a virtual terminal, recurring plans, payment links, invoicing, QR codes, SMS payments, a physical credit card reader, and a card vault.
Integrations include Great Exposure, Foxy.io, Magento, QuickBooks, WooCommerce, and others.
Pros and cons
Pros:
- Great for startups and small businesses
- Interchange-plus pricing model
- No hidden fees
Cons:
- Some features may lag at times
- Payment processing rates are correlated to your sales volume
Merchant One is a credit card processing solution that’s willing to approve most merchants, including high-risk merchants who don’t have great credit histories.
Why I picked Merchant One: Merchant One enables businesses of all sizes to integrate credit card payments into their online stores. The solution is easy to implement, and the provider also offers card readers and POS systems for physical store owners too.
Merchant One has a simple interface that’s easy to navigate and use. The software enables you to accept multiple types of payment, including recurring, mobile, and contactless payments, and it also allows you to send invoices and receipts.
Merchant One Standout Features and Integrations
Features include gift cards, loyalty programs, text marketing, PCI compliance, fraud protection, data security, mobile payments, invoicing, and billing.
Integrations include BigCommerce, Designcart, Ecwid, Microsoft Dynamics, PrestaShop, Salesforce, Weebly, Wix, WordPress, ZenCart, and others.
Pros and cons
Pros:
- Good for both in-store and online selling
- Helpful support team
- 24/7 support for ecommerce stores
Cons:
- Limited online knowledge base
- Pricing model could be clearer
Clover
Best credit card processing software for brick-and-mortar stores who want to sell online
Clover is an out-of-the-box point-of-sale (POS) system that enables physical stores who want to transition to ecommerce to integrate their payment options into their website.
Why I picked Clover: Clover is more than a credit card processing solution. It’s a complete POS system that comes with its own hardware, enabling you to process payments in physical stores. Clover also syncs your physical and ecommerce sales, making it easy to manage your inventory.
Clover is an adaptable system you can customize with the help of add-ons. Some of the available add-ons are free, while others may cost extra, but you can use them to build a robust solution that’s tailored to your business needs.
Clover Standout Features and Integrations
Features include item and inventory management, stock tracking, loyalty programs, multi-channel selling, a seller dashboard, hotspot payments, and reporting & analytics.
Integrations include Balance Till, Cash Track, Digital Loyalty, Footfall, Invoiss, OrderOut, RewardUp, Thrive Inventory, Time Clock, Stream, and others.
Pros and cons
Pros:
- Detailed reports
- User interface is friendly toward novice users
- Well-designed dashboard that allows you to oversee your store’s financials
Cons:
- Some merchants may find the pricing structure complicated
- Customizing your reports could be easier
Stripe is a credit card processing software that helps ecommerce merchants offer friction-free shopping experiences with multiple payment options.
Why I picked Stripe: Stripe helps ecommerce vendors of all sizes make their payment process easy. The software offers multiple payment options, allowing merchants to sell products, services, and subscriptions without difficulty.
Stripe’s dashboard is easy to navigate and understand. The solution’s reports give a clear overview of how your business is doing and offer insights that enable you to identify in-demand products and pipelines that may need optimization.
Stripe Standout Features and Integrations
Features include embeddable checkout, invoice support, a custom UI toolkit, 135+ currency support, local payment methods, real-time reporting, and iOS and Android mobile apps.
Integrations include 10clouds, 1Password, Accenture, Amazon Web Services, Bonsai, Capital One, Giftpro, HubSpot, Shopify, Squarespace, and others.
Pros and cons
Pros:
- Supports dozens of currencies
- Multiple checkout templates
- Allows you to set up memberships, subscriptions, and free trials with ease
Cons:
- Full customization requires some coding skills
- Deposits take a couple of business days to process
Other Credit Card Processing Software
I didn’t have the space to include full reviews for each of these additional credit card processing for ecommerce but they offer some cool features and functionality that could be exactly what you need.
- Shopify Payments
Credit card processing software for Shopify merchants
- National Processing
Credit card processing software for high-risk ecommerce stores
- Worldpay
Credit card processing software for omnichannel selling
- ProMerchant
For next-day funding for merchant accounts
- Moneris Gateway
Credit card processing software for Canadian stores
- Stax
Credit card processing software for easy shopping cart integration
- PayPal
Credit card processing software for brand recognition
- Fiserv
Credit card processing software for B2B selling
- Verifone
Credit card processing software for branded payment experiences
- Flagship Merchant Services
Credit card processing software for fraud prevention
Related Ecommerce Software Reviews
If you still haven't found what you're looking for here, check out these related ecommerce tools that we've tested and evaluated.
- Ecommerce Platforms
- Inventory Management Software
- Payment Processing Software
- Shopping Cart Solutions
- Order Management Systems
- Warehouse Management Software
Our Selection Criteria for Ecommerce Credit Card Processing Software
Selecting the right credit card processing software for your ecommerce business is more than just checking off features. It's about finding a solution that meets your specific needs, supports your growth, and provides a seamless experience for both you and your customers.
Here’s the criteria we use to evaluate these tools:
Core functionality (25% of total weighting score)
- Acceptance of major credit and debit cards globally. The processor should support a wide range of payment methods, including Visa, Mastercard, and American Express, to cater to customers worldwide.
- Support for recurring billing and subscriptions. Essential for businesses offering subscription services or membership plans.
- Fraud detection and prevention measures. Look for features like AI-powered fraud detection, tokenization, and PCI compliance to protect against fraudulent activities.
- Integration with major ecommerce platforms. Compatibility with platforms like Shopify, WooCommerce, and Magento ensures smooth operation without complicated technical setups.
- Ability to handle high volumes securely. The processor should scale with your business and manage large transaction volumes efficiently without compromising security.
Additional standout features (25% of total weighting score)
- Innovative payment solutions. Support for mobile wallets, cryptocurrency, and alternative payments can set a processor apart and meet the needs of diverse customer preferences.
- Advanced analytics and reporting tools. Insights into sales trends, customer behavior, and performance metrics help you make data-driven decisions.
- Cross-border payments with currency conversion. Enables global expansion by simplifying international transactions and reducing currency exchange friction.
- Customizable checkout experiences. Enhance the customer journey with branded checkout pages, tailored payment options, and seamless user experiences.
- Enhanced security features. Beyond basic compliance, look for end-to-end encryption, 3D Secure, and fraud scoring for an added layer of protection.
Usability (10% of total weighting score)
- User-friendly interface. The software should be intuitive, with dashboards that provide clear views of transactions, refunds, and customer data.
- Streamlined design. It should balance comprehensive features with an uncluttered interface, making it accessible even to non-technical users.
Onboarding (10% of total weighting score)
- Easy setup procedures. Look for processors that offer straightforward onboarding with minimal technical requirements.
- Educational resources. Access to training videos, step-by-step guides, and interactive tours can make the transition smoother.
- Direct support during onboarding. Dedicated account managers or responsive chat support during setup can be a lifesaver.
Customer support (10% of total weighting score)
- Accessibility of support channels. Evaluate the availability of live chat, phone, and email support.
- Knowledgeable staff. Support teams should be well-versed in ecommerce-specific issues and capable of providing quick, accurate solutions.
- 24/7 support availability. Around-the-clock support can be crucial for resolving urgent issues, especially for businesses operating in multiple time zones.
Value for money (10% of total weighting score)
- Competitive pricing structures. Look for clear value in the features offered relative to the cost. Avoid processors with confusing or hidden fees.
- Transparent fee structures. No one likes surprises—ensure that transaction fees, monthly charges, and additional costs are clearly outlined.
- Flexible pricing plans. Options that cater to different business sizes and transaction volumes can provide more tailored value.
Customer reviews (10% of total weighting score)
- Scalability with business growth. Pay attention to reviews from businesses that have scaled their operations using the software without major issues.
- Reliability and ease of use. Look for consistent positive feedback regarding the tool’s performance and usability.
- Customer service responsiveness. Reviews highlighting helpful and prompt customer service are a good indicator of support quality.
Trends in Credit Card Processing for Ecommerce for 2024
As we navigate 2024 and beyond, several key trends are shaping the future of credit card processing for ecommerce. Here’s what to keep an eye on and how these trends might influence your business decisions:
- AI-driven fraud detection and personalized payments. AI is now a staple in payment security, using real-time data to spot fraud while minimizing false positives. It’s also helping businesses offer personalized payment options based on customer behavior, enhancing the user experience with tailored suggestions and alerts.
- The surge in contactless payments. Contactless payments, powered by NFC and mobile wallets like Apple Pay and Google Pay, are expected to account for over 60% of in-store transactions this year. Consumers love the speed and convenience of tap-and-go, and businesses benefit from shorter checkout times and enhanced security.
- Growth of digital wallets and embedded finance. Digital wallets are becoming the go-to for online and in-store payments, simplifying the process by storing multiple cards in one place. Embedded finance, which integrates payment solutions directly into non-financial platforms, is making transactions seamless and often invisible to the user, reducing friction in the buying process.
- Acceptance of cryptocurrency payments. More ecommerce businesses are embracing cryptocurrencies like Bitcoin and Ethereum as viable payment methods. This not only caters to a tech-savvy audience but also provides faster and more secure transactions, with lower fees compared to traditional credit card processing.
- Adoption of omnichannel and cross-border payment solutions. Customers expect a unified shopping experience, whether they’re buying online, in-store, or through social media. Omnichannel payment systems that sync across all platforms and devices are becoming essential. Additionally, real-time cross-border payments are gaining traction, simplifying international transactions and expanding global reach.
- Rise of sustainable and ethical payment options. As consumers become more eco-conscious, businesses are exploring sustainable payment solutions like digital receipts, eco-friendly payment gateways, and initiatives that offset the carbon footprint of transactions. This trend aligns with growing consumer demand for sustainability in all aspects of business.
- Increased use of biometric authentication. Biometrics like fingerprint scans, facial recognition, and even voice commands are being integrated into payment systems to enhance security. These methods provide a higher level of protection than traditional passwords or PINs, reducing the risk of fraud and unauthorized transactions.
Staying ahead of these trends will help ecommerce businesses provide a better customer experience while safeguarding against evolving security threats.
Features of Credit Card Processing Software
Here are the key features that make credit card processing software essential for ecommerce businesses:
- Fraud detection and prevention. Advanced tools like AI-driven fraud detection, tokenization, and 3D Secure help identify and prevent fraudulent activities, protecting both merchants and customers from potential scams.
- Integration capabilities. Seamlessly integrates with major ecommerce platforms, shopping carts, and accounting software, enabling smooth operations and reducing the need for manual data entry.
- User-friendly interface. Offers an intuitive and straightforward experience for both merchants and customers, making the transaction process quick and efficient.
- Mobile compatibility. Ensures transactions are optimized for mobile devices, catering to the increasing number of shoppers using smartphones and tablets.
- Real-time processing. Provides immediate payment confirmation, reducing wait times and improving customer satisfaction by ensuring quick and efficient transactions.
- Reporting and analytics. Delivers comprehensive reports and analytics to help businesses track sales, understand customer behavior, and manage financial performance effectively.
- Global transactions support. Handles international payments, including currency conversion and compliance with local regulations, making it easier for businesses to expand globally.
- Customer support. Offers accessible and reliable support through various channels, ensuring that merchants receive timely assistance and troubleshooting when needed.
These features ensure that credit card processing software not only facilitates secure and efficient transactions but also supports business growth and customer satisfaction.
Benefits of Credit Card Processing for Ecommerce
Credit card processing is a cornerstone of successful ecommerce businesses. Here are five key benefits it provides to online retailers:
- Increased sales conversion. Simplifies the checkout process by providing customers with a secure and familiar payment method. This reduces friction during the buying process, leading to lower cart abandonment rates and higher sales conversions.
- Enhanced security and fraud prevention. Utilizes advanced security measures like encryption, tokenization, and real-time fraud detection to protect sensitive financial data. This helps build customer trust and minimizes the risk of fraudulent transactions, which is crucial for maintaining a good reputation.
- Global market reach. Enables businesses to accept payments in multiple currencies, allowing them to tap into international markets. This capability opens up new revenue streams and makes it easier for businesses to cater to a global customer base.
- Improved cash flow management. Offers quicker access to funds through efficient processing and settlement of transactions. This ensures businesses have the cash flow needed to cover operational expenses, invest in growth, and maintain financial stability.
- Customer convenience and satisfaction. Provides a seamless payment experience with multiple payment options and fast transaction processing. This convenience encourages repeat purchases and enhances customer loyalty, which is key for long-term business growth.
By leveraging these benefits, ecommerce businesses can optimize their payment processes, expand their reach, and ultimately increase their profitability in the competitive online marketplace.
Cost & Pricing for Ecommerce Credit Card Processing Companies
Navigating through the various credit card processing solutions can be challenging, especially with the different pricing models available.
Here’s a comprehensive overview of the common pricing structures, average costs, and additional fees to consider, along with recommendations for the types of businesses each plan is best suited for.
Plan comparison table for credit card processors
| Plan Type | Average Price | Common Features | Best For |
|---|---|---|---|
| Flat-rate | 2.6% - 2.9% + 30¢ per transaction | Predictable costs, no monthly fees, easy setup, covers all card types. | Small to medium-sized businesses wanting simplicity and predictability. |
| Interchange-plus | Interchange + 0.15% - 0.3% markup + 10¢ per transaction | Transparent pricing, customizable for high-volume businesses, lower overall costs. | Growing businesses and those with diverse payment needs seeking cost transparency. |
| Subscription | $59 - $199 per month + 10¢ - 30¢ per transaction | Low per-transaction cost, volume discounts, premium support. | High-volume businesses needing lower transaction costs and premium features. |
| Tiered | Qualified: 1.5% - 2.5%, Non-qualified: 3.0% - 4.0% | Rates vary based on card type and transaction method, less transparent but can work for certain needs. | Businesses with mixed card types and transaction methods that need flexibility. |
Additional costs to consider
- Setup fees: Some providers may charge a one-time fee ranging from $0 to $150 for account setup.
- Monthly fees: Typically $5 to $30, depending on the provider and plan chosen.
- Chargeback fees: Range from $15 to $25 per disputed transaction.
- PCI compliance fees: Annual fees ranging from $75 to $200 for maintaining compliance with payment security standards.
- Batch fees: Fees for processing a batch of transactions, usually $0.10 to $0.30 per batch.
Choosing the right plan
For small to medium-sized businesses, flat-rate plans offer simplicity and predictable costs, making them an ideal choice.
Businesses with higher transaction volumes or diverse card types might benefit more from interchange-plus or subscription plans due to lower overall costs and more flexibility.
By focusing on these primary options, businesses can better navigate the selection process and find a plan that matches their specific needs and transaction volumes.
Credit Card Processors FAQs
OK, last bits of knowledge before you go do your thing.
How do credit card processing fees impact my profit margins?
Processing fees can significantly impact profit margins, especially for businesses with slim margins. Understanding and negotiating these fees is crucial. Flat-rate pricing offers predictability, but might be higher for certain transaction types, while interchange-plus pricing can lower costs for higher transaction volumes. Reviewing and optimizing your payment processor agreement regularly can help manage these expenses effectively.
Can I pass credit card processing fees on to my customers?
Yes, in many jurisdictions, you can pass these fees onto customers, but it’s important to comply with local laws and card network regulations. Some regions and card networks have strict rules on surcharge amounts and how they’re communicated to customers. Always check with your payment processor and legal advisor to ensure compliance before implementing this practice.
What credit card processing features should I prioritize for my specific business type?
Depending on your business, prioritize features like recurring billing for subscription services, high-risk support if you’re in an industry like travel or CBD, or multi-currency processing for international sales. Evaluate what your business needs most and choose a processor that excels in those areas.
How can I ensure my payment processor grows with my business?
Choose a processor with scalable features that can support higher transaction volumes, more complex reporting, and integrations as your business expands. Check for flexible pricing models that can adapt to increased sales without drastically increasing costs, and ensure that the processor’s infrastructure can handle peak times without compromising performance. Opting for a provider with a history of innovation and regular updates can also help future-proof your business.
How much are credit card processing fees typically?
Credit card processing fees can vary widely depending on several factors, including the payment processor, the type of credit card used, and the merchant’s business type. Here’s a general breakdown:
- Percentage fee. Usually ranges between 1.3% to 3.5% of the transaction amount, depending on factors like the card type (credit, debit, rewards), the payment method (in-person, online), and the merchant’s agreement with the processor.
- Per-transaction fee. Typically ranges from $0.10 to $0.30 per transaction, added on top of the percentage fee.
- Monthly or annual fees. Some processors charge service fees ranging from $5 to $30 per month, or an annual fee, which can affect overall costs.
- Incidental fees. Additional costs like chargeback fees, payment gateway fees, and PCI compliance fees can also be applied, depending on the processor and services used.
- Flat-rate pricing. A fixed percentage and transaction fee applied to all transactions, making costs predictable and straightforward.
- Tiered pricing. Categorizes transactions into tiers (qualified, mid-qualified, non-qualified), each with different rates, which can be more complex and sometimes more costly.
Understanding these fees can help you make a more informed decision when selecting a credit card processor that fits your business’s needs and budget
Additional Ecommerce Payment Software Reviews
If you are looking for credit card processing software, you might be interested in these related software reviews, as well. They all focus on ecommerce finances, payments, or tax management.
- Ecommerce Sales Tax Software: Make sure all your tax calculations and payment are above board, and automate what you don't have time for.
- Shopping Cart Solutions: Build the perfect shopping cart page to help get your customers over the finish line.
- Point-of-Sale (POS) Software: Online or in-person, point-of-sale software is what you need to collect payments anywhere.
Get That Digital Cash the Right Way
Now, you know all you need to know to start taking credit card payments in a way that serves you and your customers.
The ecommerce credit card processors we've elevated to the top are worth your consideration. They know what they are doing and top brands trust them to do all the behind-the-scenes payment stuff that you don't need to think about.
You get paid, your customers get an easy checkout experience. LOVELY!
So, that's it! Enjoy your day, I guess.
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