In today’s modern consumer landscape, cash is no longer king. Consumers are increasingly gravitating towards cashless payment options, including debit card and credit card payments, as well as online payments, contactless payments, and mobile credit card processing services.
As such, it’s essential to choose a vendor that enables you to accept payments with ease and provides you with payment solutions that meet the needs of modern shoppers.
In this article, we’ll help you figure out which of them may be the best credit card processing companies for your business needs.
Let’s get started.
TL;DR
- Processors act as the middleman between your customer’s card and your bank, but not all are created equal—some offer better service, pricing, and tools than others.
- Follow a 6-step process to choose the right provider: map your payment needs, shortlist vendors, compare features, request demos, test support, and check scalability.
- Review factors like fees, contract terms, supported payment methods, and business fit—especially if you’re high-volume, high-risk, or multi-location.
Understanding Credit Card Processing Companies
At a high level, a credit card processor acts as the middleman between your customer’s card issuer and your business bank account. When a customer pays with a credit or debit card, the processor routes the transaction through various networks, verifies the payment details, and ensures the funds are settled into your account.
But not all processors operate the same way, and choosing the wrong one can create unnecessary friction in your customer experience and backend operations.
Why the right processor matters
- Cash flow depends on it. A good processor ensures you get paid quickly and predictably. Some even offer instant payouts or same-day funding.
- The checkout experience is everything. A smooth, secure payment experience builds customer trust. Laggy terminals or limited payment methods can lose you the sale.
- Hidden fees can eat into margins. Between processing fees, monthly fees, and other charges, the wrong provider can cost more than it’s worth.
- Scalability is key. Whether you’re selling in person, online, or across multiple locations, your processor should support your growth.
- Support matters. When a transaction fails or a chargeback hits, you’ll want responsive phone support, not a ticket number and a 3-day wait.
Types of credit card processing companies
There are two general types of payment processors:
- Direct processors (like Stax) offer businesses a dedicated merchant account, with more control and often lower costs at scale.
- Third-party processors are easier to get started with, but may come with limitations especially as your processing volume grows.
The best payment processing solutions align with your unique business model and offer transparent pricing and the flexibility to accept payments however your customers prefer—credit card, mobile wallets, or recurring payments.
How to Choose the Best Credit Card Processing Company: A Step-by-Step Guide
Finding the right credit card processor doesn’t have to be overwhelming. Here’s a simple, step-by-step process to help you evaluate your options and choose a provider that aligns with your business goals and payment processing needs.
Step 1: Map out your payment workflows
Start by defining how your business accepts payments today—and how you want to accept them in the future. Ask yourself:
- Do you need to accept payments in person, online, or both?
- Will you need tools for mobile payments, recurring payments, or contactless payments?
- Are you planning to sell through an online store, multiple locations, or via invoice and payment link?
Understanding your payment flows upfront will help you identify which payment solutions are most critical.
Step 2: Create a shortlist of reputable providers
Search for well-reviewed credit card processing companies with a strong track record in your industry. Look for mentions of:
- Ease of setup
- Fast onboarding
- Positive reviews around live phone support and dispute resolution
Providers like Stax and Payment Depot often top the list, but the best fit depends on your unique business.
Step 3: Evaluate platform features and tools
Once you’ve narrowed your list, compare what each provider actually offers. Consider features like:
- Integrated payments with your POS, eCommerce, and CRM tools
- Virtual terminal access for remote sales
- Mobile apps for on-the-go transaction tracking
- Instant payouts or next-day funding
Be sure the processor supports the payment types your customers prefer and makes it easy to seamlessly integrate with your systems.
Step 4: Request transparent quotes and demos
Reach out to each provider to:
- Get a detailed quote (look for transparent pricing with no hidden fees)
- Confirm whether they charge monthly fees, gateway fees, or have a free plan
- Ask for a product demo or trial
This step helps you compare credit card processing services apples-to-apples and flag any fine print you might otherwise miss.
Step 5: Test the customer experience
Before committing, test how responsive each company is. Reach out to their support team and ask:
- Is phone support available 24/7?
- Do they help with PCI compliance and dispute management?
- How quickly do they respond to questions?
You’ll get a feel for how well they’ll support you when something goes wrong.
Step 6: Match the solution to your growth plan
Your business might be small now, but think long-term:
- Will this processor scale with your processing volume?
- Do they offer payment terminals, card readers, and features for multiple locations?
- Are they a trusted partner that can support expansion—whether that means new products, new markets, or new sales channels?
Choosing a scalable platform now saves you the headache of switching later.
Factors to Consider When Choosing the Right Payment Processor for Your Business
Picking a merchant services provider out of all available credit card processing companies can be difficult. Different credit card processors might offer tiered pricing, flat-rate pricing, or interchange-plus pricing. And, depending on the payment processing company, you might get locked into a contract or be subject to things like an early termination fee or a monthly minimum processing requirement.
That’s a lot of information to consider for a new business. To make it a little easier, here’s a list of all the things you need to consider when choosing the best credit card processing service for your business.
Processing fees
Compare the different credit card processing fees charged by different credit card processing service providers before you sign up with one. Look for a credit card processor that offers transparent pricing and does not tack on any unnecessary fees (e.g., statement fees, chargeback fees, PCI compliance fees, monthly minimum fees, early termination fees, payment gateway fees, etc.)
While assessment and interchange fees are non-negotiable (these are set by card associations), processor markups vary widely from company to company, so make sure you get the most favorable rates.
Pricing structure
You also need to make sure the processor’s pricing model suits your business needs. For example, flat-rate pricing is best suited only for businesses that process very low volumes. Both interchange-plus and membership pricing may be better suited for businesses that need to process a high number of transactions every month. Finally, it’s best to steer clear of tiered pricing due to its lack of transparency.
Payment methods
Ensure that your payment processor supports all major credit and debit cards (Visa, Mastercard, Discover, American Express) as well as digital wallets (like Apple Pay, Google Pay, PayPal, etc.) and online payments. Depending on the nature of your business, you may even need support for invoicing, recurring billing, or Text2Pay, so look for a processor that offers all that.
Integrations
Make sure that the solution integrates with your existing systems (e.g., your CRM system, accounting software, POS system, etc.). Also, check the kind of APIs and documentation they offer as this will go a long way in making sure you can offer a host of different services to your customers.
Business type
Do you primarily run an eCommerce business or a brick-and-mortar store? Payment processors are typically geared more towards one or the other, so you’ll need to factor that into your choice.
Or perhaps you’re planning to add an online store to your existing physical locations. To start accepting payments online, you’re going to need a payment gateway, so check if your payment processing service offers one.
You’ll also need to consider your average monthly credit card payment processing volumes before you choose a payment processor. This is important because some companies specifically cater to high-volume merchants while some cater to low-volume businesses and will usually have very different processing fees.
Finally, if your business belongs to a high-risk businesses industry (e.g., CBD, e-cigarettes or vape, credit repair, online gaming, casinos, etc.), a regular payment processor may not be suitable for you.
Customer support
Excellent and timely customer support is essential to ensure that your business runs smoothly. Your payment processor should be able to provide access to a knowledgeable customer service representative—a real person—whenever you need it. So check if your payment processor has an in-house support team. Are they available only during business hours or round the clock? Poor service can result in the loss of business—especially if your customers run into issues that can’t be resolved quickly. So choose wisely.
Security
When you’re handling the payment information of your customers, security is of utmost importance. Make sure your processor can help with PCI compliance and uses tokenization to protect sensitive cardholder data. It’s also a good idea to choose a payments partner that offers fraud protection services as well.
Type of processor
Depending on your unique business needs, decide if a direct processor like Stax or a third-party processor may be better suited for you. Although you may get approved quicker with a third-party processor, you’ll run a greater risk of unexpected account holds and freezes (as explained below).
Contracts
Some processors may lock you into long-term contracts with hefty cancellation fees that will make it impossible for you to switch providers. Look for a processor that offers month-to-month contracts with no cancellation fees, so you can switch at any time.
Choosing the Best Credit Card Processing Company
Most credit card processing companies will claim to be the best at what they do. But choosing a credit card processor that’s the right fit for your business could mean you need a suite of products or just a mobile reader. The best payment processing companies for you should be transparent and serve your business needs.
While it’s certainly advisable to look into each company’s pricing and compare quotes, you must also look beyond processing fees and features. You will want to choose a payment processing provider that gives you access to a knowledgeable customer service and tech support team. No merchant wants to experience issues around credit card payment processing, so having a provider that has your back is a must.
Stax uses a subscription-style pricing model to give business owners flexibility and convenience. You’ll also have access to a top-rated customer success team whenever you have questions or concerns. If you need a terminal or mobile reader, Stax offers a host of products to choose from.
Quick FAQs about Best Credit Card Processing Companies
Q: What are the top factors to consider when choosing a credit card processing company for my business?
– Processing fees
– Pricing structure
– Supported payment methods
– Integration ease with existing systems
– Suitability for your business type (eCommerce, brick-and-mortar, etc.)
– Customer support
– Security
– Type of processor
– Contract terms
Q: What are the key differences between direct processors and third-party processors?
Direct processors provide a dedicated merchant account and follow a strict vetting process before approving these accounts. Third-party processors, on the other hand, aggregate merchant accounts into an existing pool, which may lead to a faster approval process but also a higher risk of sudden account freezes or holds.
Q: What are the processing fees charged by popular credit card processing companies?
Fees vary widely among different companies. For example, here are some starting prices:
– Stax: $99/month + transaction fees + interchange
– Stripe: 2.9% + 30¢ per transaction (includes interchange)
– Square: 2.6% + 10¢ per transaction (includes interchange)
– PayPal: 2.29% + 9¢ / transaction for in-person payments; 3.49% + 49¢ for key-in and scanned cards
– Banks: Typically varies between 1.8-3.5% per transaction +15-30¢ per transaction.
Q: What are the additional benefits offered by credit card processing companies?
Many companies offer additional services like next-day funding, ACH processing, QuickBooks Online Pro Sync, recurring billing support, invoicing support, and more. They also offer integration with various hardware options and POS systems, mobile credit card readers, and eCommerce integrations.
Q: What are the security measures I should look for in a credit card processing company?
Your chosen processor should be able to help with PCI compliance and use tokenization to protect sensitive cardholder data. It’s also a good idea to choose a payments partner that offers fraud protection services.
Q: What are some of the best credit card processing companies for small businesses?
Some of the top-rated companies include Stax, Stripe, Square, PayPal, and various banks. The best fit for your business will depend on your specific needs, transaction volumes, and preferences for pricing structure and customer support.
Q: Why are some businesses considered high-risk in the credit card processing industry?
Businesses in industries such as CBD, e-cigarettes or vape, credit repair, online gaming, casinos, etc., are often considered high-risk due to their risky nature. Regular payment processors may not be suitable for these businesses, and they may need to work with a processor that specializes in working with high-risk merchants.
Q: What are the reviews for Stax, Stripe, Square, and PayPal?
Stax, Stripe, Square, and PayPal all have varying ratings across different review platforms. While Stax consistently ranks as one of the best payment processors, Stripe and Square have had some complaints about their tech support teams and account holds. PayPal’s ratings aren’t as high as other credit card processors, with many merchants complaining about high fees and long fund holding periods.
Q: Why is it crucial for a credit card processing company to provide strong customer support?
Excellent and timely customer support is essential to ensure that your business runs smoothly. Poor service can result in the loss of business—especially if your customers run into issues that can’t be resolved quickly.
Q: What are the potential drawbacks of using bank merchant services for credit card processing?
Bank merchant services are usually the most expensive option for businesses. Many banks use a third-party company for the actual payment processing, which can make it harder to identify the source of extra fees. Furthermore, choosing a larger bank for a processor can also mean your account probably won’t have a dedicated support team, which may affect the level of customer service you receive.
