15 of the Best Payment Processing Companies That Make Transactions a Breeze
Payment processing is an unavoidable part of business life. From brick-and-mortar retailers and online businesses to small business owners taking payments on the road, everyone needs it.
The use of cash is reducing — particularly since the pandemic — and the demand for digital solutions has skyrocketed. Contactless and EMV technologies are the favorites, and research says that the digital payment industry will reach $6.6 trillion in 2021. Compared to pre-pandemic data, that’s a 40% increase in just two years.
Digital payments already make up the majority of payments in the US. Finding the right payment processor is crucial for small businesses as it impacts the customer experience as well as your bottom line.
These days, the options are endless. From full 360-degree payment processors to fintech companies that facilitate transactions while taking all the risk — you can have it all. No matter the setup of your small business, there’s a solution to suit your needs.
Here’s a rundown of the best payment processing companies you need to know of and what they can do to help your business.
The function of payment processors and credit card processing companies
Merchants new to the world of payment processing may, understandably, be a bit overwhelmed with the technicalities of this sector. Payment processors not only give you a system to accept credit cards or digital payments, but they also take care of the backend process.
Your bank needs to connect with your customer’s bank and the card issuer. Fees need to be distributed to all, and then the money clears and lands in your account. Thankfully, you don’t have to calculate and send these fees off to all the parties involved. Your payment processor, the same as a credit card processing company, does that for you.
Your payment processor is the link that connects software (and sometimes hardware) with bank accounts, card networks, and consumers. This company helps you make this process seamless, convenient, quick, and secure.
Payments could be by traditional credit cards — Mastercard, Visa, Discover, American Express — or through gift cards, eCheck, mobile payments (Apple Pay or Google Pay), and other digital payment types.
All-in-one digital payment and credit card processors for small businesses
The following payment processing companies are the top-notch one-stop shops for payment processing. Accepting credit card payments and other online payments, they handle all payment solutions and processing fees. All meet PCI compliance.
Payment Depot is best for small businesses that see a high volume of credit and debit card transactions each month. The pricing structure is transparent, with interchange-plus pricing, a monthly membership fee, and zero termination fee. They also offer top-notch customer support.
Businesses get a merchant account through Payment Depot that enables payments to be taken online, at a credit card terminal, or via a mobile device. It also integrates with invoicing and bookkeeping solutions like QuickBooks, as well as ecommerce platforms like Shopify, WooCommerce, and 3dcart.
Stax by Fattmerchant has often ranked as one of the best platforms for small businesses, thanks to its transparent pricing and software. The monthly fee is a flat rate, and instead of marking up a percentage on the interchange fee, it simply charges a per-transaction fee.
Through the platform’s merchant account, users can perform customer-first data analysis to assess sales and overall business performance, including order trends.
Square has become a popular option for small businesses still in the startup or early stages of their business. For those with lower volume transactions, Square has low flat rates, and it also offers a free ecommerce app and point-of-sale software.
Square’s software, including its ecommerce API, lets small businesses manage inventory and analyze customer data through its app or desktop software. It also accepts ACH payments via invoices.
Clover is a popular solution for small businesses in retail or restaurants. Its POS system — software and card reader — is one of its selling points as it’s widely available, compatible, and robust. It also offers a virtual terminal for businesses that don’t want hardware.
Clover offers flat-rate pricing with a few plans suited for businesses of different transaction volumes. It integrates with QuickBooks and Xero for finance management and has partnerships with social, ecommerce, and online platforms.
TSYS offers a comprehensive payment processing solution that covers your POS system, merchant acquiring, and issuer bank processing. Pricing is hard to ascertain. Merchants need to submit a request online to receive a quote.
Features of TSYS include time tracking, reporting, invoicing, online payments, acceptance of digital wallets, and more.
6. Payline Data
Payline Data is a payment processor with solutions for merchants wherever they are — on the go, in-store or online. Plans are based on the business type, the payment system type and are charged monthly with no early termination fees.
Ecommerce payment gateway merchant accounts
Ecommerce businesses with lower transaction volumes, such as startups or online pop-ups, may prefer online specialists. These payment processing services are not as comprehensive as those above, but they handle online payment processing and suit some small businesses.
Although PayPal has now expanded to offer a physical terminal solution, it’s still more of an online option than a competitor for in-store payment processing. It’s best suited for online businesses with low-volume sales. This is where its flat-rate pricing is competitive, but it does get expensive as sales volume increases.
PayPal is a favorite for accepting online payments because it is really easy to integrate into most ecommerce platforms, and there are no monthly minimums or setup fees. The pricing model is simply structured with a monthly plan, plus interchange fees and a per-transaction fee.
For online businesses, Stripe is the more comprehensive platform offering lots of integrations. While it’s a bit harder to set up, when compared to PayPal, it offers so much more as a platform.
Pricing is structured as a flat rate of 2.9% plus a per-transaction fee of $0.30. There are no monthly fees or monthly minimums. However, it lacks a virtual terminal.
Stripe lets you customize checkout forms to match your brand. You can accept international transactions, activate recurring billing options, and a whole lot more through their marketplace of integrations.
Buy Now Pay Later merchant services
Buy Now Pay Later (BNPL) services have become extremely popular in recent years. Consumers get what they want without being out of pocket large sums, while merchants can make large ticket sales more easily.
There’s a lot to love about having BNPL as one of your available payment methods. With adoption up 200% since the pandemic, it’s a payment option your customers will soon expect.
The great thing about BNPL services is that these platforms pay merchants and accept the risk. For example, if a customer doesn’t pay on time, they take care of chasing them down and getting them to pay late fees. Here are the major players in the BNPL space:
Afterpay lets consumers buy items when they want and pay the total over six weeks. They have 16 million consumers using their services in the US.
Retailers can set it up at the in-person POS system or online shopping carts. At the same time, consumers can download their mobile app to manage their payments.
Klarna is a global payment system with a similar setup to Afterpay. Through their mobile app, consumers can avail BNPL services anywhere they like.
Small businesses can offer this service at the online virtual terminal or with a QR code at the in-store point of sale.
Affirm is a BNPL service provider for ecommerce platforms. It allows users to buy goods now and pay over four interest-free payments. They have 6.2 million users.
Affirm can be connected with online stores to accept the service at the checkout. Consumers can then manage their payments through their mobile devices with the Affirm app.
Innovative FinTech companies going beyond traditional credit card processing
Every year there are new innovations coming to the world of online payments and processing. Some businesses expand in important niches, and others create brand new solutions that present new worlds of possibility. These are the FinTech innovators to follow:
12. Amazon Pay
Although Amazon has been around forever, it is always developing in the way it supports its merchants. For any merchants that sell almost exclusively with Amazon, this could be a better option than any of those we’ve mentioned above.
Amazon Pay integrates with X-Cart so that merchants can use it as an option on their other websites to keep sales within the Amazon marketplace. Transaction fees start at 1.9% + $0.30, and it’s free to set up.
Dealing in the crypto market, Bitpay helps businesses to accept cryptocurrency, specifically Bitcoin. BitPay is used by thousands of businesses. As a platform that is able to manage tax payments for businesses using cryptocurrency, BitPay is quite a unique solution.
This ability to be able to accept cryptocurrency and still be tax compliant will probably tempt a lot of businesses on board as consumer crypto use increases.
Through the BitPay system, merchants can accept Bitcoin payments online, in person, or even via email. Consumers can also use the platform to manage their Bitcoin and make purchases.
Verifi is a Visa solution fighting online fraud and chargebacks with payment protection solutions for ecommerce businesses.
Through its secure payment gateway, Verifi acts as a middle step to confirm identity and, as a result, reduce the fees of payment processing. It also reduces chargebacks.
SecurePay is a free online payment solution that focuses on making payments extremely secure. Through tools like SecureBill, FraudGuard, Secure Frame, Secure IVR, and others, SecurePay is picking up favor with online businesses.
Through its merchant account, businesses have access to all of its security tools, as well as online payments, reporting capabilities, and integrations. It’s also an add-on for X-Cart allowing merchants to set up preauthorization, 3D Secure, and FraudGuard.
The best payment processing solution for your business
When deciding the best payment processing company for your business needs, you must consider longevity, growth, and far-reaching services. If you’re planning to grow your business, and scale the way you accept payments and interact with customers, you need a payment provider that can grow with you.
Payment Depot can help you grow and scale your business while ensuring that hefty credit card processing fees don’t eat away at your profits. Its wholesale credit card processing rates ensure that the more you process, the more you save. Get in touch with us today to learn how we can help you save up to $400 in credit card processing fees every month!