Cheapest Credit Card Processing Services

There are a lot of costs that come with running a small business, but the fees you have to pay to accept credit and debit cards are likely the most frustrating. To avoid these fees and protect your profit margins, you might want to work with one of our in-house account executives. We will find you the cheapest credit card processing services that meet your needs. We chose these banks and processor services based on service, fast payouts, pricing and fees, reputation, support, and more.

Average Costs of Taking Credit Cards

Depending on how you accept credit and debit card payments in your business and which service you use, you may have to pay the following fees:

• Fees for transactions. Pay these every time a customer uses their card to buy something, whether they swipe the card or type in the information online. Most fees are a percentage of the sale, between 1% and 4%, plus a small fee of less than $0.50. Some processors charge a flat fee for every transaction, while others change the percentage and fee based on things like the type of credit card used or the membership plan you’re on.
• Fees for services. In addition to transaction fees, some processors charge a monthly or annual subscription fee to use the service.
• Equipment setup. If you need a POS station and a credit card reader, you may have to buy or rent them, or pay a deposit that you can get back. Some companies that handle payments give you free equipment if you sign up for a monthly plan.
• Incidental fees. You pay these one-time fees for things like chargebacks, not having enough money in your account, or special verification services.

Fees for processing credit cards

Payment processors charge fees based on one of these three models:

• Flat rate. Every transaction costs the same rate, which is usually a percentage plus a small fee. This is usually the best way to run a small business with low-priced tickets or less than $5,000 in sales per month.
• Exchange and plus. Pay a flat fee per transaction (the processor’s cut) plus a different percentage of the transaction that matches the amount charged by the credit card company (interchange fee). This is a good model for businesses that process a lot of credit card transactions every month because they can negotiate the processor’s fee to save money.
• Prices in tiers. The processor groups interchange fees together and sets prices in three tiers, so you don’t have to pay different rates for each credit card. Instead, you pay a variable rate in three tiers. Most experts don’t recommend using a servicer with this model because pricing isn’t clear, which can make it expensive and hard to negotiate.

Use eDataPay as your Merchant Service Provider.

Payment processing companies and major banks offer many of the same services, but payment processing companies tend to charge less. For better rates, you should go with a dedicated merchant services provider like eDataPay. ad: If you have an online business or sell things online, you should use the eDataPay Payment Gateway to make the most money and keep control of your customers’ information.

Any Bank and Processor can use eDataPay Gateway Mobile Payment.

Start with a mobile payment processor like Square if your business is small or brand new. These services charge a flat rate and don’t need much equipment, so you don’t have to worry about a contract, a monthly fee, or any costs to get started.

Most mobile payment processors let you use a free swipe attachment for your phone or tablet and a free app. And apps like Square can grow with your business, so you can always add more tools or features by upgrading.

Stay away from long contracts.

Especially if you’re new to business, a traditional payment processor could lock you into rates that don’t work for your business in the long run if you sign a long-term contract with them. And it can be hard to get out of them, and there are often high fees.

Use a payment processor that lets you pay month-to-month or doesn’t require a subscription at all. This will save you money and give you more freedom.

Don’t pay for things you don’t need.

If you want to sign up for a service that requires a subscription, shop around to make sure you don’t pay too much for a bunch of services you don’t need. Subscriptions usually come in tiers, and if you only need one feature from a company’s second tier but not the rest, your costs can add up quickly.

Try to get discounts.

If your business processes a lot of credit card purchases, you may be able to negotiate the processing fee if you use a subscription-based service. You will use the eDataPay payment gateway, and we can connect to all US banks, so why not try to negotiate better rates? Less time on contracts, etc… Most of the time, you’ll have to pay the interchange fee, which is set by the credit card company. But you could ask the processor to take a smaller cut of the fee.

Opt for Flat-Rate Pricing

We always tell merchants at eDataay to avoid tiered pricing, which is hard to understand and negotiate. If your business is small or new, choose a service that charges a flat rate. If your business is well-known and you make a lot of purchases, choose a service that uses interchange plus pricing to get the best rates.

Limit the cards you’ll take.

Visa and Mastercard are accepted at most stores. But it may be harder to find a store that takes Discover or American Express. This is because the last two charge higher interchange fees than the first two because they give their customers more benefits. But now, eDataPay can give all US cards the same price.

If you don’t take payments from networks with higher fees, you could save money. But keep in mind that you might lose some customers who prefer to pay with those methods.

Set minimums for purchases made with credit cards.

You could set a minimum purchase amount before you’ll accept a credit card payment. This will stop processing fees from cutting into your profits on small-dollar items.

The Dodd-Frank Act The Wall Street Reform and Consumer Protection Act of 2010 (also called the Dodd-Frank Act) lets stores set a minimum credit card purchase of up to $10. You might not be able to do the same with debit cards, though. Credit card network rules might prevent minimums, and Dodd-Frank doesn’t affect debit purchases.

Cash discounts are the new best way.

You can make your customers pay for the fees you pay to process credit cards by raising your prices and giving those who pay cash a discount.

Or, if your state lets you (and most do), you could add a surcharge to each card transaction at the point of sale. Check the rules of the credit card networks you use to make sure that surcharging is allowed.

Questions People Usually Ask

What is the best way for small businesses to accept payments?

The best credit card processing company for your business will find a good balance between price, features, and customer service. You should think about how many transactions you make each month to figure out if a per-transaction model or a monthly subscription model will save you more money in the long run. In eDataPay Advisors, we consider direct to bank and two large PSPs to be good choices.

How can I get paid with credit cards without having to pay fees?

Credit card networks and payment processors need to be paid for the services they provide to merchants, so you can’t completely avoid fees. You can avoid fees and keep making money, though, if you add a surcharge to credit card payments or raise prices and offer a Cash Discount.

What is the best way for a small business to take credit card payments?

Try to get interchange plus models for your business if you want to accept credit cards at the best price. In some cases, it depends on what you sell, where you sell it, how much you sell, and how your customers like to pay. Flat-rate processors are best for businesses that make less than $5,000 in sales per month, while interchange plus models are best for businesses that make a lot of sales.

How much does it cost a small business to take credit cards?

Payment processing fees are different and include an interchange fee set by the credit card network (Visa, Mastercard, etc.) and a processing fee set by the processor (PayPal, Square, etc.). Interchange fees are usually between 1 and 4 percent of the sale price, and processing fees are usually between 10 and 30 cents per transaction. Some payment processors charge a single rate that covers the interchange fee and their cut, while others charge a rate that changes based on the interchange fee.

Why does my business need to process credit cards?

In 2020, there were more than 320 million active credit card accounts in the United States, according to a study done by the American Bankers Association in May 2021. This means that almost all adults in the United States have at least one account, if not more. Because credit cards are so common, not being able to accept them means you could lose a lot of sales.

Is it safe to use a credit card?

Yes. Credit card processors are PCI-compliant and use advanced encryption methods to keep transactions safe because so much sensitive information is being sent over these networks.

Choose eDataPay as your business’s payment processor.

Before you choose a bank or PSP payment processor, you should think about your options. An eDataPay account executive can and will show you the two best options for your business type and volume. We can also help you choose the one that gives you the services you need at the lowest cost. For example, if you don’t need an online store, you don’t have to pay the monthly fee to use Shopify, Woocommerce, or other carts. Instead, you could use one of our direct-to-bank agreements, or if you need or want basic free POS, eData has the vendor for free. Also, think about the size and number of your sales to choose the fee structure that will save you the most money.

Some of the most expensive companies are:

• Square charges all card types the same flat rate of 2.6% plus 10 cents per transaction.
• Paypal charges 2.9% plus 30 cents per transaction for most cards. Some cards have lower rates.
• Stripe charges 2.9% plus 30 cents per transaction for most cards. Some types of cards have lower rates.

They have a big budget for advertising online, but that doesn’t mean they will give you the best rates and service, including the personal service your business needs to succeed.

Rates can be different depending on the type of business and the number of transactions, so it’s important to compare rates and fees from several providers before choosing one.

The work will be done by an eData account executive consultant, who will also think about your business’s specific needs. Before making a decision, the consultant will compare the rates and fees of several providers. All of our providers offer the best customer service and support they can, as this can be a big deal in the long run.

In conclusion, it can be hard to find the cheapest credit card processing service for your business. However, if you think about the different options and the number of transactions you expect, you can make an informed choice that can save you money and help your business grow.