In the ever-evolving world of card acceptance, the cost-effectiveness of payment processing systems are a primary factor most businesses consider when selecting a credit card processor. Recognizing the importance of this aspect and how it is often difficult to compare, we embarked on a comprehensive journey to evaluate the costs of top credit card processors in the market. Specifically, we zeroed in on credit card processors that offer the flexibility of charging no monthly fees or locking business owners into contracts or long-term equipment leases.
Methodology
This investigation was tailored to uncover a realistic view into what business can expect to pay at varying levels of processing. Our methodology was meticulous and thorough, ensuring that each processor was tested under uniform conditions to extract data that is both reliable and comparable. The calculations are based upon each processors advertised rates and transaction fees with each tier assuming a $50 average transaction. In a few cases, such as will Helcim, wherein the processor passes through the wholesale Interchange cost with a fixed markup, we averaged the Interchange rate at 1.7% + $0.05, plus the processor's advertised markup.
Card Present Results
In our first set of tests, we used the quoted rates and fees of each processor for standard retail, in-person transactions wherein the card it transacted at the the business' location using a card reader. In the left column are the processors that we tested. The top row is the amount of processing tested and the intersecting cells are how much the processing costs including the rate and transaction fees.
$5,000 and $10,000
Processor
$5,000
$10,000
Square
$175
$350
Stripe
$175
$350
Bank of America
$142.50
$285
Helcim
$117
$234
PayPal
$198.50
$397
Chase
$140
$280
$50,000 and $100,000
Processor
$50,000
$100,000
Square
$1,750
$3,500
Stripe
$1,750
$3,500
Bank of America
$1,425
$2,850
Helcim
$1,135
$2,100
PayPal
$1,985
$3,970
Chase
$1,400
$2,800
$500,000 and $1,000,000
Processor
$500,000
$1,000,000
Square
$17,500
$35,000
Stripe
$17,500
$35,000
Bank of America
$14,250
$28,500
Helcim
$10,350
$21,000
PayPal
$19,850
$39,700
Chase
$14,000
$28,000
Card Present Cost Summary
Our findings indicate the lowest costs across all processing level were with Helcim followed by Chase Merchant Services. The most expensive was PayPal with Square and Stripe sitting in the middle of the pack. It is important to note that real world results may vary from our finding above as rates and fees can be affected by numerous factors including, but not limited to, the type of cards your customers use. Additionally, PayPal offers lower fees when both users have a PayPal account with funds transferring between accounts.
Cost For E-Commerce and Card-Not-Present
Is your business online, or do you key card information instead of swipe the card? The costs for these transactions are different. Let us know in the comment section below if you would like to see a breakdown of card-not-present transaction costs. Subscribe to be notified of follow-up comments and we'll let you know when we publish it!
Disclaimer
The above article is for illustration and educational purposes only. Please always do you own due diligence before signing up with any credit card processor.
In the late 2000s, as a broke college student struggling to make ends meet, I was contacted by a merchant services company after uploading my resume to a job listings website. This company promised substantial commissions and ongoing residual income for simply persuading businesses to accept credit card payments. It seemed straightforward enough—after all, what business doesn’t need to process credit card payments? Following a phone interview with a persuasive “sales director,” I found myself embarking on what I believed would be an easy job that would significantly boost my bank account with reliable monthly income and large sales commissions. However, the lessons I learned would profoundly change my life in ways I could never have imagined.
After completing my sales training, I hit the ground running, eager to make sales. This broke college student was determined to improve his financial situation! My first attempt at a cold call, with no prior appointment, ended with a burly man in his 50s yelling at me to leave, claiming he had been “totally robbed” by someone like me before. As I hastily exited, puzzled and intimidated by his reaction, I couldn’t help but wonder what he meant. Throughout the day, I encountered similar hostility from other business owners, all expressing disdain for the industry I had been so excited to join that morning. Confused and curious, I decided to shift my approach from selling to listening.
I quickly uncovered that the merchant services sector was riddled with unethical practices, including hidden fees, deceptive marketing, fine-print traps, and much more. It dawned on me that I had nearly been tricked by a dubious company into selling overpriced services under contracts with long-term commitments, all without being fully aware of what I was promoting. Outraged, I resigned from that company but learned that there were indeed ethical credit card processing companies that treated their clients fairly. Over the next four years, I worked for one such company, assisting hundreds of businesses in securing cost-effective processing solutions. Yet, I also met many more who had been misled and trapped in onerous service agreements. Determined to help people steer clear of these unscrupulous providers, I launched this website in my spare time, dedicating myself to researching and sharing my findings on every merchant account provider I could investigate.
Gradually, more and more business owners began to discover my articles. As word spread, search engines started to rank my content highly, amplifying its reach. My efforts were making a difference! Eventually, the website garnered enough traffic to enable me to leave my job and focus on it full-time, a journey that has now spanned over a decade. This path has not been without its challenges; unscrupulous company owners have tried to intimidate and sue me into silence on several occasions. Yet, I have stood firm against each threat. Here I am, continuing to publish reviews and articles, hoping to safeguard others from the pitfalls of the credit card processing industry.
If you believe in my mission and wish to contribute, please share my articles on your websites and social media. Thank you for visiting!
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Reader Comments
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2 User Reviews
Blaine Dunn
Casual Living Wicker & Rattan Furnishings, LLC
We are a 20 year old small retail business. Most of our transactions are keyed in. Our average ticket is $1,000.00 with a annual total of $100,000.00 approximately.
We are looking for a processor that charges a flat rate, no contract and low monthly fees. A company that is transparent with no surprise PCI or annual fees. Can you suggest a good company for us?
Phillip CPO
Hi Blaine,
This may depend on a couple factors related to how you process sales. Are you taking deposits before you fulfill the orders, or do you send the furniture as soon as the order is placed?
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Blaine Dunn
We are a 20 year old small retail business. Most of our transactions are keyed in. Our average ticket is $1,000.00 with a annual total of $100,000.00 approximately.
We are looking for a processor that charges a flat rate, no contract and low monthly fees. A company that is transparent with no surprise PCI or annual fees. Can you suggest a good company for us?
Phillip CPO
Hi Blaine,
This may depend on a couple factors related to how you process sales. Are you taking deposits before you fulfill the orders, or do you send the furniture as soon as the order is placed?