Choosing the right credit card processing service is a decision every small business owner will have to make at some point. Research by NRF shows that 67% of retailers now accept some form of cashless payment, and 81% of consumers use some form of non-cash payment.
If you want to accept debit cards and credit cards as payment for your products, you need a reliable credit card processor. There are multiple credit card processing companies, but this article will focus on PaySimple and Stax.
We take a look at both providers and evaluate their offerings to help you select the right payment processor for your business. We will evaluate both providers by the following factors:
- Features
- Cost of credit card processing service
- Customer support
- Pros and cons
- Customer reviews
PaySimple vs Stax: Features
Both PaySimple and Stax provide users with the tools to accept payments, invoice customers, set up recurring payments, and generate reports. However, the set of features provided by PaySimple makes it more ideal for service providers, while the more extensive feature set of the Stax platform makes it suitable for businesses of all types.
PaySimple Features
Signing up for the PaySimple payment gateway is easy, and you don’t require any specialized knowledge to set it up. After signing up, you will be assigned a dedicated merchant account and onboarded through the company’s backend processor.
Key features like recurring billing, CRM tools, and appointment scheduling tools make PaySimple an ideal platform for service industries.
Its range of features and hardware is not as extensive as that of Stax, but it has everything you need from a solid credit processing company. Its features include:
Point of Sale (POS): the PaySimple POS includes a mobile POS app and a card reader for taking in-person payments. The platform lacks advanced features like inventory tracking, dispute management, and advanced analytics.
Virtual Terminal: the virtual terminal lets you take electronic payments by phone, email, or in person.
Mobile Point of Sale (mPOS): to take payments on the go, you can order a PaySimple mobile card reader for $30 to be paired with the PaySimple mobile app.
ACH/eCheck Payments: PaySimple processes ACH payments even if you don’t accept cards, and your customers can pay with direct debit instead of making card payments. The major benefit of this is that ACH payments are significantly cheaper to process than card payments.
Online Store: the PaySimple online store is built with service providers in mind. It allows you to create custom payment forms for each of your services, and to set up one-time or recurring payments for those items.
BookSimple: this appointment booking and scheduling tool lets your clients make appointments via web or email. You can easily manage your schedule on the backend and send reminders to clients.
Stax Features
Stax operates a membership pricing model that gets users a payment terminal of their choice as well as the company’s integrated payment platform — Stax Pay. The payment platform is loaded with tools and features to help small businesses accept and process a wide variety of payments.
Stax supports all the major debit and credit cards. It also supports ACH payments, Text2Pay, and all forms of contactless payments.
The platform provides users with a wide range of tools and features including:
Credit card terminals: Stax Pay will integrate seamlessly with most payment terminals on the market, including those that support EMV chip cards, NFC contactless payments, and mobile payments.
Virtual terminal: turn any device into a payment payments device. With the Stax virtual terminal, all you need to do is log in using a web browser and enter the customer’s payment details.
eCommerce: Stax provides customizable one-click shopping carts, checkout pages, and payment gateway integrations for eCommerce businesses. Stax Pay integrates seamlessly with popular eCommerce platforms like WooCommerce, Shopify, and more.
Analytics and Reporting: monitor customer data, inventory, business growth, and more directly from your dashboard.
Integrations: Stax supports a wide range of third-party integrations including MailChimp, WordPress, QuickBooks, Microsoft Dynamics 365, and more.
Stax Dispute Manager: you will be notified of chargebacks in real-time and the company will facilitate its resolution.
PaySimple vs Stax: Cost of Credit Card Processing
Pricing is one of the most important factors to consider when selecting a payment processing company. There are major differences between the pricing models of both companies, particularly in the area of pricing transparency.
PaySimple Pricing
PaySimple charges a monthly subscription fee for the use of the PaySimple software plus an interchange fee for every transaction. There are also extra processing fees associated with your merchant account ownership.
PaySimple’s payment processing fees are based on an opaque tiered pricing structure. The information on the company’s website states that rates start from 2.49% per transaction plus monthly fees, and 0.10% plus $0.60 for ACH/eCheck transactions.
This model is more opaque than interchange-plus pricing models and flat-rate models. You know your starting processing rate, but it’s difficult to track which transactions will cost more and which will be cheaper.
The company offers three subscription packages:
- Starter Package (ACH transactions only): $24.95 per month
- Standard Package: $59.95 per month
- Enterprise Plan: it is offered to businesses that need higher levels of integrated support, and pricing information is not available on the company’s website
Stax Pricing
Stax charges a monthly subscription for use of the company’s payment terminal and other tools. The company is a vast improvement on PaySimple in the area of pricing transparency. Stax charges businesses the interchange rate with zero markup plus processing fees that come to a few cents per transaction.
There are no hidden fees, and the processing rate rounds up to 8 cents for in-person transactions and 15 cents for other transactions where card information is entered manually.
Stax subscription plans include:
- Growth: $99 per month
- Pro: $159 per month
- Ultimate: $199 per month
The Growth plan is designed for small businesses that only need one payment processing method, the Pro plan is ideal when you need multiple payment processing methods, while the Ultimate plan is for businesses that need Stax’s eCommerce tools and other advanced features.
PaySimple vs Stax: Customer Support
Reliable customer support is crucial for those periods when you may be having technical difficulties, have questions about your billing statement, or the payment processing service is down.
Fortunately, both companies have excellent customer support ecosystems.
PaySimple Customer Support
PaySimple customer support services include:
- In-depth training and support for new users and their employees
- Customer service live chat available 9 AM-7 PM EST Monday through Friday
- Support e-Tickets
- Online Help Center
- Online documentation for developers
Stax Customer Support
Stax customer support services include:
- Online knowledgebase
- FAQ
- 24/7 technical support via the e-ticketing system
- Dedicated account manager for Pro plan subscribers
- Company blog
PaySimple vs Stax: Pros and Cons
Both payment processing companies offer comprehensive features and services to their customers, but they are not perfect. Below are the headline strengths and weaknesses of each payment processor.
PaySimple pros and cons
The primary advantages and disadvantages of using PaySimple include:
Pros
- Suitable for service providers
- Good invoicing tools
- Decent customer support
Cons
- Opaque pricing model
- A relatively limited set of features
- Not suitable for international merchants
Stax pros and cons
The primary advantages and disadvantages of using Stax by Fattmerchant include:
Pros
- Robust platform features
- Zero markup on interchange fees
- Transparent membership pricing
- Extensive support for third party integrations
- No early termination fee
Cons
- High monthly subscription cost makes it unsuitable for small businesses with low volumes of card transactions
- It is limited to US-based merchants
PaySimple vs Stax Customer Reviews
Both companies have largely received positive reviews from customers with very few complaints. The nature of the positive comments from the customer base of each platform reflects the strengths of each provider.
Customers praise the ease of use, scheduling and billing features, affordability, and customer training program of PaySimple, while the Stax users praise the transparent pricing model, analytics reporting, and the usability of the platform.
However, there are still a few negative customer complaints about each provider, and we will list them below.
PaySimple
The few negative complaints from PaySimple users revolve around:
- Expensive processing rates
- Hidden fees
- Held funds
- Merchant account confusion
Stax
The few negative complaints from Stax users revolve around:
- Billing issues
- Customer support issues
Which Should You Choose?
Your choice of credit card processor is very important to the smooth running of your business, and you must select the provider that offers the most feature-relevant, reliable, and cost-efficient service for your needs.
PaySimple’s features make it ideal for service providers that are interested in recurring billing, customizable payment forms, scheduling tools, and an online store for service offerings. The platform also has a few drawbacks including the opaque pricing system and its limited set of features.
Stax, on the other hand, is suitable for a wide swath of businesses. It offers 0% markup on interchange fees, and its processing fees are by far the lowest in the industry. However, Stax’s flat subscription model means it’s more suitable for high-volume businesses.
If you are a low-volume business that is processing less than $5,000 per month, Stax may not be the ideal payment processor for you.
It offers outstanding value for users and its feature-packed integrated payments platform meets the needs of most small businesses.
