Andrea Herrera, Author at TechnologyAdvice https://technologyadvice.com/blog/author/andrea-herrera/ We help B2B tech buyers manage the complex & risky buying process. Fri, 06 Sep 2024 17:22:25 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 https://assets.technologyadvice.com/uploads/2021/09/ta-favicon-45x45.png Andrea Herrera, Author at TechnologyAdvice https://technologyadvice.com/blog/author/andrea-herrera/ 32 32 Toast vs Square: Best Restaurant POS System in 2024 https://technologyadvice.com/blog/sales/toast-vs-square/ Fri, 06 Sep 2024 17:22:23 +0000 https://technologyadvice.com/?p=130152 Both Square and Toast have taken sizeable bites out of the POS market share. But which one is right for your business? See our in-depth comparison below.

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  • Toast and Square are among the most popular POS systems for restaurants, offering a range of features and capabilities to suit different business needs.
  • Toast is ideal for mid- to large-sized restaurants due to its comprehensive, restaurant-specific features, and advanced hardware designed to handle complex operations and high-volume environments.
  • Square is suitable for small food businesses with its affordable pricing, straightforward setup, and versatile hardware, making it a cost-effective solution for small restaurants, food trucks, and cafes.

Square and Toast are two of the most popular restaurant point-of-sale (POS) systems in the market. They are considered among the best restaurant POS systems because of their ease of use, comprehensive restaurant-specific features, and excellent hardware options.

When comparing Square vs Toast, it’s important to compare their pricing and features and look at their key differences to know which would be best for your restaurant business. 

Toast vs Square: Key differences

Square logo.
Toast logo.

Contract length

Month-to-month

2 years

Plan structure

Simple plan structure

More complex plan structure (Pay-as-you-Go and Standard)

POS software starting cost

$0+

$0+

Features

Basic included, need to upgrade to a paid plan for many necessary tools

Robust base plan

Industries

Any small business

Specifically for restaurants

Customer support

  • Mon to Fri phone support
  • 24/7 automated chat support
  • 24/7 phone, email, and in-app support
Toast logo.

Toast: Best for mid- to large-sized restaurants

Pros

  • Robust restaurant-specific features
  • Industry-grade hardware
  • Extensive integrations
  • 24/7 customer support

Cons

  • 2-year contract for all plans
  • Add-on fees for most features
  • Higher processing fees

Why I chose Toast

Toast is the top choice for mid- to large-sized food businesses due to its powerful, restaurant-specific features and durable hardware. Tailored exclusively for the food service industry, Toast excels in supporting various dining establishments—from bustling cafes to multi-location fine dining restaurants—with advanced tools for order management, payroll, and scheduling. 

The robust hardware, including the versatile Toast Flex and portable Toast Go, is designed to withstand the demands of high-volume environments, offering features like spill-resistant designs and self-service options such as the Toast Kiosk to enhance operational efficiency.

It offers flexible pricing plans, including $0 upfront hardware options in exchange for higher processing fees. Overall, Toast’s all-in-one approach, combined with its continuous enhancements, makes it the ideal choice for mid- to large-sized food businesses aiming to streamline and scale their operations.

Toast is specifically designed for food businesses, offering an extensive range of restaurant-specific features that cater to the unique needs of dining establishments. Overall, Toast provides a comprehensive suite of tools to enhance operations.

Below is a list of some of the key features that make Toast a powerful solution for restaurants.

  • Table management
  • Menu management
  • Order and course management
  • Kitchen display system (KDS)
  • Integrated online ordering
  • Delivery management
  • Loyalty programs
  • Gift cards
  • Employee management
  • Inventory management
  • Reporting and analytics
  • Customer relationship management
  • Self-service kiosks
  • Mobile POS (Toast Go)
  • Dark mode
  • Guest feedback
  • Extensive integrations

Starter KitPay-as-you-Go CorePay-as-you-Go GrowthPoint-of-sale (Standard)Build Your Own
Monthly Fee$0$0$0$69Custom-quote
Payment Processing Fee3.09% + 15 cents3.39% + 15 cents3.69% + 15 cents2.49% + 15 centsCustom-quote
Hardware (Handheld Kit)IncludedIncludedIncluded$799.20Custom-quote
Hardware (Countertop Kit)IncludedIncludedIncluded$1,024.20Custom-quote
Square logo.

Square: Best for small food businesses

Pros

  • Always free POS software with good features
  • Free online ordering
  • Quick and easy sign-up and set-up
  • No contracts, cancel anytime

Cons

  • Users reported occasional outages
  • Fewer integration options
  • Limited customer support hours

Why I chose Square for Restaurants

Square is the best choice for small food businesses due to its affordability, ease of use, and versatility. It offers a range of hardware options, from the compact Square Terminal to the iPad-compatible Square Stand, making it easy for cafes, food trucks, and small restaurants to find the right setup for their needs. 

Each Square account includes a free POS plan and a mobile card reader, allowing small businesses to start processing payments with minimal upfront investment. Its all-in-one system covers everything from order management to inventory tracking, ensuring that even the smallest businesses can operate efficiently.

Square’s transparent pricing, no-contract approach, and free plan options add to its appeal for small food businesses looking to manage costs while still benefiting from a robust and reliable POS system. While Toast may offer more specialized features, Square’s flexibility, comprehensive functionality, and ease of use make it the ideal choice for small food businesses looking to get up and running immediately.

Square offers a variety of restaurant-specific features that cater to the needs of small food businesses, helping them streamline operations and manage their day-to-day tasks efficiently. However, note that the free POS subscription does not support some basic functions you might expect a restaurant POS to include, like reopening closed checks, custom user permissions, custom floorplans, and end of shift reports.

Here’s a list of key features available depending on plan:

  • Menu management
  • Table management
  • Order management
  • Kitchen display systems
  • Online ordering through Square Online
  • Delivery management
  • Loyalty programs
  • Gift cards
  • Employee management
  • Inventory management
  • Reporting and analytics
  • Self-serve ordering
  • Mobile POS
  • Fewer integrations

  • Monthly fee (per location):
    • Free
    • Plus: $69
    • Premium: $165
  • Processing fee:
    • In-person: 2.6% + 10 cents
    • Online: 2.9% + 30 cents
  • Hardware:
    • Magstripe reader: Free
    • Contactless and chip reader: $59
    • Terminal: $299 or $27 for 12 months
    • Register: $799 or $39 for 24 months
    • Stand: $149 

Square vs Toast: A detailed comparison

Square logo.
Toast logo.

Contract length

Month-to-month

2 years

Monthly fee

Starts at $0

Starts at $0

Payment processing fees

  • In-person: 2.6% + 10 cents
  • Online: 2.9% + 30 cents
  • Keyed-in/Invoices: 3.5% + 10 cents
  • Pay-as-you-Go: 3.09% + 15 cents
  • Pay-as-you-Go Core: 3.39% + 15 cents
  • Pay-as-you-Go Growth: 3.69% + 15 cents
  • Standard: 2.49% + 15 cents

Hardware options

  • Free magstripe reader
  • Tap to Pay on iPhone and Android
  • Standalone terminal starts at $299 (Square Terminal)
  • Free hardware kit with Pay-as-you-Go plans
  • No Tap to Pay on mobile device option
  • Handheld kit with Standard plan: $799.20

Customer support

  • 24/7 support for paid subscribers
  • Monday – Friday phone support from 6am – 6pm PT for free subscribers.
  • 24/7 phone, email, and in-app support

Looking for other options? Both Square and Toast are included in our list of the best restaurant POS systems.

Pricing: Square is the most affordable option 

When it comes to pricing and affordability, Square wins over Toast. Square is known for its zero-initial-cost affordability, making it an attractive option for small food businesses or those on a tight budget. It offers a free POS plan with basic functionalities, a free magstripe reader, the ability to accept contactless payments with just a compatible iPhone or Android mobile device, and a low flat-rate card-present processing fee of 2.6% + 10 cents per transaction. 

While Square’s costs are generally lower than Toast’s, the basic functionality is still enough for quick service operations. Additional features like payroll, marketing, and advanced reporting can be added for a fee, but even with these add-ons, Square tends to be more cost-effective for smaller businesses. Unlike Toast, Square’s pricing is straightforward, with no long-term contracts, making it easier for small businesses to start with minimal financial commitment.

On the other hand, Toast’s pricing model is structured to cater specifically to established food businesses, especially with its standard 2-year contract. Although it offers a Pay-as-You-Go option with no monthly fees and a free hardware kit, it comes with processing fees much higher than Square’s standard processing fees. Also, while Toast’s basic plan includes essential POS features, many of Toast’s most sought-after features, like online ordering, gift cards, and loyalty programs, require additional fees.

If your main priority for a restaurant POS system is affordability, you’d get the lowest cost with Square’s basic setup. It gives you essential, basic functionalities for quick-service restaurants while only paying for processing fees per transaction. However, for mid- to large-sized food businesses, Toast’s higher upfront and ongoing costs may be justified by its extensive restaurant-specific features, making it a better fit for full-service that are willing to invest in a more specialized system.

Hardware: Toast is built for a kitchen environment

Both Square and Toast offer a range of devices designed to cater to the needs of restaurants, but they differ significantly in terms of customization, durability, and overall cost.

Toast’s hardware is specifically built for the restaurant environment, offering durability and functionality that aligns with the demands of busy kitchens, dining areas, and mobile food services. 

Key Toast hardware devices include:

Toast Flex

Toast Go

Toast Kiosk

Toast Flex.
Toast Go.
Toast Kiosk.

Outright purchase: $1,024.20

Outright purchase: $799.20

Outright purchase: $1,339.20

On the other hand, Square offers a variety of hardware options that are more generalized but still very effective for small food businesses. 

Key Square hardware devices include:

Square Magstripe Reader

Square Contactless and Chip Reader

Square Stand

Square Terminal

Square Register

Square Magstripe Reader.
Square Contactless and Chip Reader.
Square Stand.
Square Terminal.
Square Register.

1st one: Free

Additional reader: $10

1st generation: $49

2nd generation: $59

$149 or $14 per month for 12 months

$299 or $37 per month for 12 months

$799 or $39 per month for 24 months

Square’s hardware is more affordable and versatile, designed to be easy to set up and use across various business types. It’s also more flexible, as it can be used with existing devices like iPads, reducing the need for significant upfront investment. However, Square’s hardware does not offer the same level of durability as Toast’s.

For small food businesses, Square’s hardware offers affordability, flexibility, and ease of use. It’s ideal for businesses that need a reliable system without making a large investment. 

However, for mid- to large-sized restaurants, or simply those that want hardware that can endure drops, spills, and heat, Toast’s restaurant-specific hardware is better suited, offering the durability and advanced features necessary for high-volume, fast-paced environments.

Features: Toast is more robust

Square logo.
Toast logo.

Table management

✔*

✔

Menu management

✔

✔

Order and course management

✔*

✔

Kitchen display system

Add-on fee

Add-on fee

Online ordering

Per-order add-on fee

Add-on fee

Delivery management

Via integrations

Add-on fee

Loyalty programs

Add-on fee

Add-on fee

Gift cards

Add-on fee

Add-on fee

Employee management

Add-on fee

Free for basic tools;
Add-on fee for advanced tools

Inventory management

Ingredient-level tracking requires a third-party integration

Available through xTraCHEF for an add-on fee

Reporting and analytics

✔*

✔

Restaurant CRM

✔

✔

Restaurant Marketing

Add-on fee

Add-on fee

Mobile POS

✔

On Toast devices only

Guest feedback

✔

✔

Third-party integrations

30+ integrations

120+ integrations

*Not included in the free plan; access to this feature requires a paid subscription.

When it comes to restaurant-specific features, Toast, which is purpose-built for the restaurant industry, offers a deeply integrated suite of tools tailored to the unique needs of food service establishments. While Square provides many of the same features, its offerings are more basic in comparison. Toast’s features are more robust and designed to meet the heavier demands of larger and more complex food businesses, making it a better fit for restaurants requiring advanced capabilities.

Square, while not exclusively focused on restaurants, offers a versatile platform with many essential, very basic features included at no extra charge, making it an attractive option for small food businesses. Square provides over 30 restaurant-specific integrations to expand their capabilities. 

However, Toast leads in third-party integrations with over 120 options, giving it an edge for larger or full-service establishments seeking a more tailored solution. Overall, Toast’s extensive feature set and deep industry integration make it better suited for larger restaurants looking for a more comprehensive, all-in-one system.

Toast vs Square: Which is best?

Choosing between Toast and Square ultimately depends on the specific needs of your food business. Toast is the clear winner for mid-to large-sized restaurants that require a comprehensive, restaurant-specific POS system. Its robust features, designed specifically for the food service industry, provide the depth and functionality needed to manage complex operations, from advanced inventory and employee management to integrated CRM and detailed reporting. Toast’s specialized restaurant-grade hardware and extensive integrations also make it an excellent choice for businesses with higher demands and the need for tailored solutions.

On the other hand, Square is best suited for small food businesses that prioritize affordability, ease of use, and flexibility. With its no-cost basic features, simple setup, and versatile hardware, Square offers a more accessible entry point for smaller operations or new businesses. While it may lack the advanced capabilities of Toast, Square provides enough functionality to efficiently run day-to-day operations, making it an ideal choice for cafes, food trucks, or small restaurants looking for a reliable and budget-friendly POS system.

If you’re running a small food business with straightforward needs, Square offers an excellent balance of functionality and cost-effectiveness. For larger, more complex restaurants, Toast provides the specialized tools and scalability required to support your growth and enhance your operations.

Frequently asked questions (FAQs)

Toast and Square are not the same, although they both offer point-of-sale systems for restaurants. Toast is specifically designed for restaurants with advanced, industry-focused features, while Square is a more versatile POS system used across various industries. Square offers basic restaurant tools, but Toast provides a more comprehensive solution tailored to the needs of food businesses.

The main disadvantage of Toast is its cost, as many of its advanced features and hardware require additional fees, and a two-year contract, making it more expensive than some other POS systems.

Aside from Square, Clover, TouchBistro, and Lightspeed are some of Toast’s biggest competitors. Each of these POS systems offers robust features tailored to the restaurant industry, with varying strengths in areas like hardware flexibility, user interface, and pricing options.

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square toast logo toast toast handheld Toast’s Handheld Starter Kit includes a Toast Go handheld device, wireless access point, data security router, POS software, and free setup and installation. (Source: Toast) toast countertop Toast’s Countertop Starter Kit includes a Toast Flex terminal, Toast Tap device, data security router, POS software, and free setup and installation. (Souce: Toast) toast kitchen display Toast’s kitchen display system comes with restaurant-grade hardware which are highly durable and rated for higher temperature. (Source: Toast) toast kiosk Toast offers self-ordering kiosks for customers to easily customize and place their orders without queuing up. (Source: Toast) square square pos Square offers a free magstripe reader, a contactless and chip reader, and a standalone POS terminal. (Source: Square) square stand restaurant station The Square Stand Restaurant Station includes a cash drawer, receipt printer, kitchen printer, paper, and an optional iPad. (Source: Square) square kitchen display Square’s kitchen display system is compatible with a list of Android devices. (Source: Square) square kiosk Square’s self-ordering kiosk allows easy ordering and speedy payments. (Source: Square) square toast logo toast flex toast go toast kiosk square magstripe reader square contactless and chip reader square stand square terminal square register square toast logo
What is a POS System? Overview, Meaning & Best Practices https://technologyadvice.com/blog/sales/what-is-pos/ Thu, 05 Sep 2024 23:41:34 +0000 https://technologyadvice.com/?p=130307 A point-of-sale (POS) system is a software and hardware bundle that acts as the nerve center of brick-and-mortar businesses. POS systems improve operational efficiency and customer satisfaction and offer data for informed decision-making.

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  • A POS system integrates hardware and software to streamline transactions, manage inventory, and provide valuable business insights.
  • To make the most of your POS system, utilize available reporting features to help maintain system reliability, safeguard data, and provide valuable business insights.

In any business, managing transactions manually can lead to errors, slower service, and unhappy customers. A point-of-sale (POS) system is a valuable and practical tool to avoid the drawbacks of manual processes. POS systems speed up transactions and reduce the risks of human error. They also streamline business operations by making inventory management easier, providing quick access to business data, and integrating with your other business systems.

What is a POS system?

A basic POS system is a combination of hardware and software that allows businesses to accept payments efficiently. Beyond just processing payments, a POS system may also complete or help coordinate key business functions like inventory management, customer relationship management (CRM), and sales reporting. 

In essence, a POS system is the nerve center of any brick-and-mortar business, and there are different types of POS systems to fit different business needs. 

Key components of a POS system

Several essential components make up a POS system. These components work together to facilitate seamless transactions:

Hardware components

Square Register Retail POS system.
A full POS setup from Square has dual screens, a cash register, a receipt printer, a card reader, and a barcode scanner. (Source: Square)
  • POS terminal: The POS terminal is the main device that processes sales transactions. This device may be a computer, a tablet, a mobile phone, or a specialized POS terminal. It runs the POS software and connects to other hardware components.
  • Card reader: A device that accepts payments by reading card information by swiping, tapping, or dipping the card into the device. Some POS terminals may also function as card readers, and some POS software can use mobile phones to function as card readers.
  • Receipt printer: Provides printed receipts for customers, confirming their purchase details. Many newer systems also offer digital receipts via email or SMS.
  • Barcode scanner: Helps quickly input product information into the system by scanning barcodes, speeding up the checkout process and reducing errors. 
  • Cash drawer: Securely stores cash transactions. It connects to the POS terminal and opens automatically when a cash payment is processed.

Although some POS set-ups have these components as separate devices, many providers also offer all-in-one terminals that function as a card reader, a receipt printer, and a barcode scanner.

Software components

Helcim POS software.
Helcim POS software helps merchants ring up a sale. (Source: Helcim)
  • POS software: The application that runs the entire POS system. It can be installed locally on the device/terminal or cloud-based.
  • Sales reporting: Provides detailed reports on sales trends, employee performance, and other key metrics. Most POS systems have reporting capabilities, only differing in the complexity and level of insight the reports can provide. This can range from basic daily sales reports and product performance to more complex summaries.
  • Inventory management: Not all POS systems have inventory management capabilities. However, those that do can typically track stock levels, update quantities as sales are made, and generate low-stock alerts.
  • Customer relationship management (CRM): Stores customer data, including purchase history, preferences, and contact information, enabling personalized service and targeted marketing efforts.

How does a POS system work?

A POS system makes sure that a sales transaction proceeds smoothly from start to finish. Here’s how it typically works:

  1. Customer initiates the purchase: The process starts when a customer decides to purchase a product or service. The cashier or store employee scans the items using a barcode scanner or manually enters the product details into the POS system.
  2. Total amount calculated: The POS system automatically calculates the total amount due, including any applicable taxes or discounts.
  3. Payment is processed: Once the total is calculated, the customer may choose the payment method they’d like to use from the options accepted by the POS system. Some common payment methods are cash, credit or debit card, and mobile wallet. 
  4. Transaction is completed: After the payment is approved, the POS system finalizes the sale. If the POS system has inventory management, the inventory is updated as well. A receipt may also be printed out or sent digitally to your customers.
  5. Transaction is recorded: The POS system records all transaction details, storing them in the system’s database, which may be accessed and analyzed at any time. This information is then available for generating sales reports, tracking employee performance, processing future returns or refunds, and providing insights into customer behavior.   

Benefits of a POS system

Using a POS system offers numerous advantages that extend beyond basic transaction processing. These benefits can significantly enhance the efficiency, accuracy, and overall management of your business operations:

  • Improved efficiency: A POS system speeds up sales processes by automating tasks like price calculation, inventory updates, and payment processing. This reduces customer wait times and frees staff to focus on other important aspects of the business.
  • Decreased errors: Automating data entry and calculations will help improve accuracy and lessen human errors that often happen with manual processes. 
  • Easier inventory management: Even a POS system’s most basic inventory management feature can significantly improve inventory efficiency and accuracy. 
  • Enhanced business insights: POS data helps provide quick access to reports and analytics, provides better insights into your business, and helps you make more informed decisions.
  • Better customer experience: Speeding up transactions, reducing errors, and offering features like digital receipts and loyalty programs will help improve the overall customer experience. 
  • More streamlined operations: Many POS systems can integrate seamlessly with other business tools, such as accounting software, ecommerce platforms, and CRM systems. This integration streamlines operations and ensures all your business systems work cohesively.

POS software features

Software is the backbone of any POS system. While features can vary depending on the specific software and industry, here are some of the most common POS software features:

  • Sales and transaction management: At its core, POS software handles sales transactions efficiently, processing payments, applying discounts, calculating taxes, and generating receipts. It ensures that every sale is accurately recorded and streamlined.
  • Payment processing: POS software supports various payment methods, including credit/debit cards, mobile payments, gift cards, and more. Some systems also allow for split payments, installments, and deposits.
  • Ecommerce integration: For businesses with an online presence, POS software can integrate with ecommerce platforms to manage online orders and accept online payments.
  • Inventory management: POS software often includes robust inventory management features for tracking stock levels in real-time, setting reorder alerts, and managing supplier information. This helps prevent stockouts and overstocking.
  • Customer relationship management (CRM): Many POS systems integrate CRM tools to manage customer data, track purchase history, and implement loyalty programs. These features help businesses personalize the customer experience, promote repeat business, and improve customer satisfaction.
  • Employee management: POS software often includes features for managing employee schedules, tracking work hours, and monitoring performance. POS software also typically allows businesses to assign different access levels to employees, ensuring that sensitive data is protected while allowing staff to perform their duties efficiently.
  • Sales reporting and analytics: Advanced POS software provides detailed reporting and analytics on various aspects of your business, including sales trends, top-performing products, and employee performance. These insights enable you to make data-driven decisions that can boost profitability and operational efficiency.
  • Multi-channel integration: Modern POS software can integrate with other sales channels, such as online stores or mobile apps. This ensures that your inventory, sales data, and customer information are synchronized across all platforms.
  • Mobile POS capabilities: Many POS software solutions offer mobile POS capabilities that allow you to accept payments and manage sales from a smartphone or tablet. This is particularly useful for businesses that operate in multiple locations, offer on-the-go services, want to take payments on the sales floor, or sell at events.
  • Security features: POS software often includes built-in security measures, such as encryption, user authentication, and fraud detection, to protect sensitive data and ensure compliance with industry standards, such as PCI DSS.

How to choose a POS system for your business

Selecting the right POS system for your business is a critical decision that can significantly impact your operations, customer experience, and profitability. Here are key considerations to guide you in choosing the best POS system for your business:

1. Assess your business needs 

Start by evaluating your business’s specific needs. Consider factors such as the size of your operation, your industry, and the complexity of your sales process. For example, a retail store might prioritize inventory management features, while a restaurant might need robust table management and quick service capabilities.

2. Determine your budget

Establish a budget that includes the POS system’s initial cost and ongoing expenses like monthly fees, transaction fees, and add-on features. Understanding your budget constraints will help narrow your options and ensure you choose a system that provides good value without overspending.

3. Consider ease of use 

The POS system should be user-friendly, with an intuitive interface that’s easy for you and your staff to learn and use. An overly complex system can slow down operations and lead to frustration. Look for a system that offers a clean, straightforward design and has adequate help and training resources.

4. Check for essential features 

Make a list of your business’s must-have features, such as inventory management, sales reporting, CRM, and multi-channel integration. Ensure that the POS system you choose offers these features and aligns with your business needs and goals.

5. Evaluate flexibility and scalability

As your business grows, your POS system should be able to scale with you. Choose a system that offers flexibility, such as adding new locations, integrating with additional software, or handling increased transaction volume. This ensures that your POS system can support your business as it expands.

6. Ensure security and compliance 

Security is critical when choosing a POS system. To protect customer payment data and personal information, ensure that the system complies with industry standards, such as PCI-DSS and GDPR. Additionally, look for features like encryption, user authentication, and fraud detection to safeguard your business.

7. Research customer support

Reliable customer support is essential for addressing any issues that may arise with your POS system. Check the availability and quality of customer support services, including hours of operation, response times, and support channels (phone, email, chat). A system with strong customer support can minimize downtime and ensure that your business continues to run smoothly and you have access to support if anything goes wrong.

Best practices for using a POS system

To maximize the effectiveness of your POS system and ensure smooth operations, it’s crucial to follow these best practices:

  • Regularly update software and hardware: Ensure that both POS software and hardware are up-to-date with the latest features and security patches to maintain optimal performance and protect against vulnerabilities.
  • Train staff thoroughly: Provide comprehensive training for all employees on how to use the POS system efficiently. Proper training minimizes errors and maximizes the system’s capabilities.
  • Back up data routinely: Implement a routine backup process for all data stored in the POS system to prevent loss in case of system failures or other issues.
  • Monitor and analyze reports: Review sales reports, inventory levels, and customer data to make informed business decisions and identify areas for improvement.
  • Integrate with other systems: Integrate the POS system with other business tools, such as accounting software and CRM systems, to streamline operations and ensure consistency across platforms.
  • Implement strong security measures: Use encryption, strong passwords, and access controls to safeguard sensitive information and comply with industry security standards.
  •  Review system performance: Evaluate the POS system’s performance periodically to ensure it meets your business needs and consider upgrades or changes if necessary.

Future trends in POS systems 

The POS landscape has already seen significant shifts due to technological advancements and changing consumer behaviors. Cloud-based POS systems and mobile POS solutions are becoming the standard as they offer flexibility and allow businesses to process payments on the go. The mPOS market value in 2023 is $34.72 billion, while the cloud POS market is growing at a rate of almost 25%.

Additionally, there is a growing demand for integrated omnichannel experiences, where POS systems synchronize data and functionality across online, in-store, and mobile platforms. Around 71% of merchants consider integration with other systems as a top functionality they look for in their POS.

Contactless payments are also widely adopted, driven by the need for faster and more secure transactions. These developments have set the foundation for the possible next wave of innovation in POS systems.

AI-driven personalization and automation

The future of POS systems will increasingly rely on artificial intelligence (AI) to deliver personalized customer experiences and automate routine tasks. AI is a top priority for 57% of businesses when choosing POS systems. 

AI will enable POS systems to analyze vast amounts of customer data, predict preferences, and offer personalized recommendations. This will enhance customer satisfaction and increase sales and loyalty. 

AI-driven chatbots will automate tasks such as inventory management, reordering, and even customer support, further streamlining business operations.

Advanced data analytics and predictive insights

According to a Grand View Research report, the global advanced analytics market will grow at a CAGR of 21.1% from 2022 to 2030. While basic reporting is now standard, future POS systems will offer more advanced data analytics, providing businesses with predictive insights. These systems will analyze historical sales data, market trends, and customer behavior to forecast demand, optimize inventory, and even predict staffing needs. This level of foresight will allow businesses to make proactive decisions.

Biometric and blockchain security enhancements

Security will remain a top priority. To secure transactions, future POS systems will incorporate cutting-edge technologies like biometric authentication (e.g., fingerprint or facial recognition) and blockchain. The biometric market is expected to grow 19.7% from 2020 to 2025, while the global blockchain technology market is expected to grow roughly 68% from 2022 to 2030.

These technologies provide an additional layer of protection against fraud and data breaches, ensuring that customer information is kept safe.

Self-service and autonomous checkout

The self-service kiosk market is expected to grow by 5.6% from 2024 to 2036. This trend will continue to grow, with future POS systems incorporating more advanced autonomous checkout solutions. Technologies such as computer vision and AI will allow customers to check out by simply placing items in their cart and walking out. This will reduce wait times and enhance the shopping experience, particularly in high-traffic retail environments.

Voice-activated POS systems

The global voice recognition tech market is expected to reach $50 billion by 2029. With the rise of voice-activated technology, future POS systems may incorporate voice commands for tasks such as ringing up sales, managing inventory, or generating reports. This hands-free functionality could speed up operations and make POS systems more accessible for businesses with busy environments or those looking to reduce physical contact points.

Frequently asked questions (FAQs)

A POS system facilitates payment processing, records sales, manages inventory, and provides insights through reporting. It integrates key business functions to streamline operations and enhance the customer experience.

One POS system example is Square. Square offers both hardware like card readers and software to process payments, manage inventory, and generate sales reports for businesses.

POS is an acronym for point-of-sale. It refers to where a transaction occurs between a customer and a business, typically involving exchanging goods or services for payment.

POS systems come in several types to suit different business needs. Traditional POS systems typically include dedicated hardware like cash registers and barcode scanners designed for use in physical stores. On the other hand, mobile POS (mPOS) systems run on smartphones or tablets, allowing businesses to process transactions anywhere, such as at events or remote locations. 

Cloud-based POS systems are hosted online, providing flexibility and real-time updates from any device with internet access. Finally, self-service POS systems include kiosks or terminals where customers can independently complete transactions, commonly found in fast-food restaurants and retail environments.

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square pos setup A full POS setup from Square has dual screens, a cash register, a receipt printer, a card reader, and a barcode scanner. (Source: Square) helcim pos software Helcim POS software helps merchants ring up a sale. (Source: Helcim)
Best Credit Card Readers for Small Business (2024) https://technologyadvice.com/blog/sales/card-reader-for-small-business/ Thu, 15 Aug 2024 20:44:39 +0000 https://technologyadvice.com/?p=129134 Credit card reader technology has rapidly evolved over the past several years. Today, the best options are all-in-one smart terminals that affordably combine the latest processing technology with a user-friendly touchscreen.

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Choosing the right credit card reader is essential for small businesses looking to streamline their payment processes and scale efficiently. The best credit card readers for small businesses combine advanced capabilities with portability, support a range of payment methods, offer robust security features, and have seamless integration with other business systems.

In this article, I evaluate the best credit card readers for small businesses based on their hardware features, payment processing, pricing, features, and user experience. 

Based on my evaluation, the best credit card readers for small businesses for 2024 are:

Best credit card readers comparison

Card Reader

Our score (out of 5)

Hardware Features

Price

Accepted Payment Types

4.49

  • Receipt printer
  • Barcode scanner
  • Offline mode
  • Wifi, LTE
  • 6” touchscreen
  • $599 or
  • $35 per month for 36 months
  • Swipe
  • Dip
  • Tap
  • QR code
  • Apple Pay, Google Pay, Samsung Pay

4.44

  • Receipt printer
  • Offline mode
  • Wifi
  • 5.5” touchscreen
  • $299 or
  • $27 per month for 12 months
  • Swipe
  • Dip
  • Tap
  • QR code
  • Apple Pay, Google Pay, Samsung Pay

4.30

  • Offline mode
  • Wifi
  • 7.5” touchscreen
  • Pay-as-you-go plan: Free or 
  • Standard plan: $799.20
  • Swipe
  • Dip
  • Tap
  • QR code
  • Apple Pay, Google Pay, Samsung Pay

4.20

  • Barcode scanner
  • Wifi, 3G/4G
  • 9” touchscreen
  • $199 or
  • $239 (with built-in barcode scanner)
  • Swipe
  • Dip
  • Tap
  • QR code
  • Apple Pay, Google Pay, Samsung Pay
  • PayPal and Venmo

4.16

  • Receipt printer
  • Wifi
  • 5.5” touchscreen
  • $329
  • Swipe
  • Dip
  • Tap
  • QR code
  • Apple Pay, Google Pay, Samsung Pay

For this list, I specifically targeted smart terminals. These readers conveniently combine advanced capabilities with portability, making them ideal for small businesses that are ready to scale their business and looking for efficient, versatile, and user-friendly payment solutions. 

Smart terminals support a range of payment methods, offer robust security features, and often integrate seamlessly with other business systems like inventory management and e-commerce platforms. This evaluation focused on identifying the top smart terminals that provide the best balance of functionality, ease of use, and affordability for small businesses.

I took advantage of free trials and demos to get a first-hand user experience of available solutions. 

Finally, I built an internal algorithm to rate over ten readers based on my evaluation of its hardware and payment features, cost, and user experience. Each category also includes my expert score, which contributes to its overall score.

Here’s a breakdown of how I evaluated each card reader: 

Hardware features

I first considered the hardware features. I assessed the physical aspects of the credit card readers, such as multiple device setup, warranty, connectivity, battery life, screen quality, user interface, charging options, receipt printing capabilities, and overall durability. These factors determine the device’s usability, reliability, and adaptability to different business environments. 

Payment processing

I evaluated the range of payment types accepted (swipe, dip, tap, QR), the transaction speed, the variety of processors supported, and the integration of ecommerce systems. Efficient and versatile payment processing is crucial for providing a smooth customer experience and managing sales data effectively.

Pricing

The overall cost of using the reader was also considered. I looked at the overall cost structure, including initial setup costs, hardware and software costs, and contract length. I prioritize solutions that offer flexible and transparent pricing models, with minimal upfront costs and no long-term commitments, making them suitable for budget-conscious small businesses.

Other features

I examined additional functionalities that enhance the utility of the smart terminals, such as offline mode capabilities, developer tools, security and PCI compliance, and system reliability. These features ensure the device can operate effectively under various conditions and maintain high security standards.

User experience

I also looked at the ease of use, scalability, user reviews, and the application and onboarding process. A user-friendly interface, smooth onboarding experience, and positive user feedback are essential for ensuring that small businesses can quickly adopt and benefit from the technology.

Clover logo.

Clover Flex: Best for growing businesses

Overall Score

4.54/5

Hardware features

4.44/5

Payment processing

4.69/5

Pricing and costs

4/5

Features

4.69/5

User experience

4.88/5

Pros

  • Built-in printer, scanner, camera
  • All-in-one device with inventory, employee management, reports
  • 4G and WiFi connectivity
  • Can work with different payment processors

Cons

  • Higher upfront cost
  • Higher processing fees

Why I chose Clover Flex

Clover Flex’s comprehensive features and versatility make it an excellent credit card reader for small businesses, especially for those on the brink of scaling up. It’s all-in-one design, which includes a built-in printer and scanner, combined with its essential backend tools, such as reporting, online ordering, and inventory tools, give it the flexibility to accept payments on-the-go or at small bazaar stalls or integrate with an extensive point-of-sale (POS) system in brick-and-mortar stores.

The combination of 4G and WiFi connectivity ensures reliable performance, while the offline mode maintains functionality during internet outages. Clover Flex is also available from different resellers, so if your business already has a merchant account, check if they are a Clover partner, as you might get a better package from your provider. 

Despite the higher initial costs, these features, along with the device’s ease of use and robust security measures, make Clover Flex a suitable choice for growing businesses looking for an all-in-one credit card reader.

  • Seamless integration with other Clover devices
  • Built-in receipt printer
  • Offline mode
  • All-in-one system
  • 4G and WiFi connectivity
  • Pre-loaded apps
  • Passcode to unlock device
  • Tipping option
  • Employee log-ins
  • Inventory management

Clover offers an assortment of other hardware products, from simple card readers that pair with a smartphone to full-blown countertop register kits.

Down

  • Clover Go card reader: $49
  • Tap to Pay on iPhone

Up

  • Clover Mini: $799
  • Clover Station Solo: $1,699
  • Clover Station Duo: $1,799
  • Clover Kiosk: $3,499

PlanPaymentsEssentialsRegister
Device Fee599$599$599
Software Fee$0$14.95 per month$49.95 per month
Card-present transaction fee2.6% + $0.102.6% + $0.102.3% + $0.10
Keyed-in transaction fee3.5% + $0.103.5% + $0.103.5% + $0.10

Clover’s pricing is relatively standard. Though, note, the prices we include in this guide are if you purchase the Flex through Clover directly. If you purchase the Clover Flex through a reseller or other merchant service provider, the hardware pricing, contract terms, and transaction fees will vary.

Square logo.

Square Terminal: Best for new businesses

Overall Score

4.44/5

Hardware features

4.58/5

Payment processing

4.06/5

Pricing and costs

4.25/5

Features

4.38/5

User experience

4.92/5

Pros

  • Seamless ecosystem integration
  • Built-in receipt printer
  • Inventory management

Cons

  • No built-in barcode scanner
  • No 4G support

Why I chose Square Terminal

Square Terminal has a comprehensive and user-friendly ecosystem. It is cost-effective with its low device cost and zero monthly fees, making it the best credit card reader for new businesses. Its all-in-one design includes a built-in receipt printer and robust inventory management capabilities, making it easy for businesses to get started without additional equipment. 

The seamless integration with other Square devices allows for smooth scalability, whether you’re upgrading to more advanced POS systems or adding simple card readers. Square’s consistent transaction fees, even for the free plan, further enhance its appeal to new businesses looking for cost-effective and highly functional solutions.

  • Seamless integration with other Square devices
  • Built-in receipt printer
  • Offline mode
  • WiFi connectivity
  • Long battery life
  • Employee log-ins
  • Inventory management
  • Optional accessories: countertop mount, belt clip, barcode scanner, cash drawer

Like Clover, Square also offers a variety of hardware options, including several card readers that can pair with smartphones for mobile payments. The Square app can also accept Tap to Pay payments for a hardware-free setup. 

Additionally, Square offers several countertop hardware options, including iPad stands, built-in readers, touchscreen registers with a customer-facing display, and card readers. 

Down

  • Square magstripe reader: free
  • Square Contactless and chip reader: $59
  • Tap to Pay on iPhone
  • Tap to Pay on Android

Up

  • Square Stand: $149
  • Square Register: $799
  • Square Kiosk: $149

Most Square hardware purchases can qualify for interest-free payment plans. 

  • Square Terminal: $299 or $27 per month for 12 months
  • Software fee: Free
  • Card-present transaction fee: 2.6% + $0.10
  • Keyed-in transaction fee: 3.5% + $0.15

Square’s pricing is also fairly standard. It offers transparent flat fees; however, unlike Clover, Square’s POS software is free to use. Square also offers custom pricing to qualifying businesses processing over $250,000 annually.

Toast logo.

Toast Go: Best for restaurants

Overall Score

4.30/5

Hardware features

4.58/5

Payment processing

4.38/5

Pricing and costs

3/5

Features

4.69/5

User experience

4.85/5

Pros

  • Restaurant-grade (spill proof, drop proof, dust proof)
  • Offline mode
  • Pay-as-you-go plan with zero monthly fee and free device

Cons

  • No built-in receipt printer
  • No built-in barcode scanner

Why I chose Toast Go

Toast Go stands out for its restaurant-specific design and comprehensive integration with a full restaurant management system. Its durability, long battery life, and offline mode make it highly reliable in busy, demanding environments. 

The fully integrated system, which includes features like a kitchen display system, online ordering, team management, and inventory tracking, enhances operational efficiency. Additionally, the pay-as-you-go plan with no upfront device cost makes it an attractive option for restaurants looking for flexibility without a hefty initial investment.

  • Restaurant-grade durability
  • Fully integrated with restaurant management system, which includes the kitchen display system, online ordering, team management, and inventory tracking
  • Up to 24-hour battery life
  • Employee log-ins
  • Tipping option
  • Optional accessories: receipt printer, kitchen printer, cash drawer, label printer, kitchen display screen

Toast Go 2 is Toast’s entry-level card reader. Like Square and Clover, Toast also offers countertop solutions and customer-facing displays. Toast also excels in restaurant-specific hardware solutions like kitchen display systems (KDS) and self-service kiosks. 

Unique to this list, Toast hardware kits also come with routers for setting up a local network for maximum device security and stability. 

Down

  • None

Up

  • Toast Flex with Tap: $719.10
  • Toast Flex with Tap and Guest Facing Display: $944.10
  • Kiosk with Tap: $1,034.10

Toast offers relatively standard software and payment processing pricing. However, Toast does offer an attractive Pay-as-you-Go plan that enables restaurants to get started with industry-grade card readers for no upfront cost. 

As your business grows, you may qualify for customized transaction and software rates.

PlanPay-as-you-Go*Standard
Device Fee$0$799.20
Software Fee$0$69 per month
Card-present transaction fee3.09% + $0.152.49% + $0.15
Keyed-in transaction fee3.09% + $0.153.50% + $0.15

*With $85/mo inactivity fee if there is no card transaction for 90 days.

Zettle logo.

PayPal Zettle Terminal: Best for PayPal and Venmo payments

Overall Score

4.20/5

Hardware features

4.86/5

Payment processing

4.38/5

Pricing and costs

4/5

Features

3.44/5

User experience

4.35/5

Pros

  • Low processing fees
  • Pre-loaded SIM card at no cost
  • Accepts PayPal and Venmo payments

Cons

  • No magstripe reader
  • No offline mode

Why I chose PayPal Zettle Terminal

The PayPal Zettle Terminal works seamlessly with PayPal and Venmo transactions, making it an excellent choice for businesses already utilizing these platforms. Its low processing fees and the inclusion of a pre-loaded SIM card at no extra cost enhance its value. Although Clover Flex processes PayPal and Venmo payments, it requires a higher Clover paid subscription. 

The terminal’s built-in barcode scanner and optional charging dock with a built-in receipt printer provide essential functionality for retail environments. Among the card readers on this list, the PayPal Zettle Terminal has the lowest flat-rate processing fees. This combination of affordability, ease of use, and specialized payment acceptance makes the Zettle Terminal particularly advantageous for businesses looking to streamline their payment processing with PayPal and Venmo.

  • Built-in barcode scanner
  • Charging dock with built-in receipt printer
  • Pre-loaded SIM card included at no cost
  • Accepts PayPal and Venmo payments 
  • Inventory management
  • Tipping option
  • Optional accessories: dock+printer, barcode scanner, cash drawer, receipt printer

PayPal has two core hardware products — the Terminal we recommend in this guide, and the Card Reader, which is a basic PIN-enabled card reader that pairs with the PayPal POS mobile app. Both offer charging docs, but the Terminal also has optional accessories available in Kit bundles. 

Like Square, PayPal also offers a hardware-free option with Tap to Pay payments on iPhone and Android. 

Down

  • Card Reader: $29 for the first reader, $79 for succeeding readers
  • Tap to Pay on iPhone
  • Tap to Pay on Android

Up

  • Store Kit Mini: $229
  • Store Kit Standard: $479
  • Store Kit Plus: $679
  • Store Kit Portable: $339

PayPal’s hardware fees are comparable to the other options on this list. However, its card-present transaction fees are much lower than our other recommended options, which is ideal for businesses of any size looking to maximize profit margins. 

  • Device fee: $199 device only, $239 device with barcode scanner, $309 with dock and built-in printer
  • Software fee: Free
  • Card-present transaction fee: 2.29% + $0.09
  • Keyed-in transaction fee: 3.49% + $0.09
Helcim logo.

Helcim Smart Terminal: Best for interchange-plus pricing

Overall Score

4.16/5

Hardware features

4.86/5

Payment processing

4.06/5

Pricing and costs

4/5

Features

3.13/5

User experience

4.73/5

Pros

  • Interchange-plus pricing
  • Built-in receipt printer
  • Automatic volume discounts
  • Surcharging option

Cons

  • Limited other hardware options
  • No offline mode

Why I chose Helcim Smart Terminal

The Helcim Smart Terminal is the only card reader on this list that offers a transparent interchange-plus pricing model, which offers small businesses a clear and competitive fee structure. Its built-in receipt printer and automatic volume discounts provide added value, particularly for growing businesses. 

The surcharging option allows merchants to pass processing fees to customers, reducing costs. Additionally, Helcim’s terminal supports inventory tracking and employee log-ins, enhancing operational efficiency. The competitive pricing, combined with zero monthly fees and surcharging option, makes this credit card reader among the most cost-effective for small businesses.

Did you know? Helcim is also the cheapest credit card processor for most businesses.

  • Interchange-plus pricing
  • Built-in receipt printer
  • Inventory tracking
  • Automatic volume discounts
  • Surcharging program
  • Employee log-ins
  • Tipping option
  • Optional accessories: countertop printer, barcode scanner, cash drawer

Similar to PayPal, Helcim has two card reader options: one that pairs with a smartphone and a standalone all-in-one terminal. 

Down

  • Helcim Card Reader: $99
  • Tap to Pay on iPhone

Up

  • None

Helcim’s hardware is on the pricier side. But, it’s the only option on this list that offers interchange-plus transaction fees, which almost always end up being cheaper for businesses than flat-rate transaction fees. 

Uniquely, Helcim also automatically adjusts its pricing as your transaction volume increases, charging fewer and fewer fees as you grow. 

  • Device Fee: $329
  • Software Fee: Free
  • Transaction fees:
Monthly transaction volumeCard-present transaction feeKeyed-in translation fee
$0 to $50,000Interchange + 0.40% + $0.08Interchange + 0.50% + $0.25
$50,000 to $100,000Interchange + 0.35% + $0.08Interchange + 0.45% + $0.20
$100,000 to $500,000Interchange + 0.25% + $0.07Interchange + 0.35% + $0.20
$500,000 to $1,000,000Interchange + 0.20% + $0.06Interchange + 0.25% + $0.15
$1,000,000+Interchange + 0.16% + $0.06Interchange + 0.15% + $0.15

What is a credit card reader?

A credit card reader is a device that enables businesses to accept payments from customers via credit and debit cards. These readers can be standalone units or part of a larger POS system. They read the card’s information through magnetic stripe, EMV chip, or contactless technology (NFC) to process transactions securely. Credit card readers are essential for modern businesses as they facilitate quick and secure payment processing.

Related: Best Mobile Credit Card Processing

How do credit card readers work?

Credit card readers work by capturing and transmitting card information to a payment processor. When a card is swiped, dipped, or tapped, the reader retrieves the card’s data (magnetic stripe, chip, or NFC signal). This data is encrypted and sent to the payment processor, which verifies the card details and checks for available funds. Once approved, the transaction is completed, and funds are transferred to the merchant’s account. This process happens in seconds, ensuring fast and secure payments.

Types of credit card readers

Credit card readers come in various forms to meet different business needs. These types include magstripe readers, EMV chip readers, NFC (contactless) readers, and smart terminals, each offering distinct features and security levels to cater to diverse payment processing requirements.

  • Magstripe readers: Basic devices that read the magnetic stripe on the back of cards, offering straightforward but less secure transactions.
  • EMV chip readers: Devices that read the embedded chip in cards, providing enhanced security against fraud.
  • NFC (Contactless) readers: Readers that accept contactless payments from cards or mobile wallets, enabling fast and convenient transactions.
  • Smart terminals: Advanced, multifunctional devices that support magstripe, chip, and contactless payments, often integrated with POS systems.

Simple credit card readers, like ones that just perform the functions listed above, typically require integration with a different device (computer, tablet, or mobile device) where the POS app is installed. These simpler readers are in contrast to all the smart terminals discussed above – our recommended options are all standalone terminals and do not require any other integration to accept card payments.

Frequently asked questions (FAQs)

The best card reader for a small business depends on specific needs, such as budget, payment types, and business environment. For growing and scaling businesses, my evaluation shows that Clover Flex is the best credit card reader.

A simple card reader costs anywhere from $0 to $100 while a standalone card reader costs anywhere from $200 to $800. Some payment solutions providers may also have card readers for monthly rent.

Yes, you can use your phone as a card reader. Newer options like Tap to Pay on iPhone and Android allow you to accept contactless payments directly through your phone without any additional hardware.

The post Best Credit Card Readers for Small Business (2024) appeared first on TechnologyAdvice.

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clover flex square terminal toast go paypal zettle terminal helcim smart terminal clover clover flex magstripe reader Clover Flex has a built-in magstripe reader, EMV chip reader, NFC reader, receipt printer, camera, scanner, and a 6” touchscreen. (Source: Clover) clover flex starter kit The Clover Flex starter kit includes the Clover Flex card reader, silicone protective sleeve, charging cradle, power brick, power cord, paper roll, screwdriver, and quick start guide. (Source: Clover) square square terminal magstripe reader Square Terminal has a built-in magstripe reader, EMV chip reader, NFC reader, and receipt printer. (Source: Square) square terminal starter kit The Square Terminal comes with the Square Terminal card reader, power adapter, power adapter cable, and paper roll. (Source: Square Terminal) square terminal complete pos setup Other Square devices can be connected to the Square Terminal for a complete POS setup. (Source: Square) toast toast go magstripe reader The Toast Go has a built-in magstripe reader, EMV chip reader, and NFC reader. (Source: Toast) toast go starter kit The Toast Go starter kit includes the Toast Go card reader, wireless access point, and data security router. (Source: Toast) toast go links and syncs The Toast Go links and syncs with other Toast products for a unified restaurant platform. (Source: Toast) zettle paypal zettle terminal emv chip reader The PayPal Zettle Terminal has an EMV chip reader, NFC reader, optional barcode scanner, and optional dock with printer. (Source: PayPal Zettle) paypal zettle starter kit The PayPal Zettle Starter Kit includes the Zettle Terminal card reader, USB-C cable, power supply adapter, and a getting started guide. (Source: PayPal Zettle) output-onlinepngtools helcim smart terminal magstripe reader The Helcim Smart Terminal has a magstripe reader, EMV chip reader, NFC reader, and receipt printer. (Source: Helcim) helcim smart terminal starter kit The Helcim Smart Terminal kit includes the Smart Terminal card reader, USB charging cables, and paper roll. (Source: Helcim)
What is Recurring Payment? Overview, Types & Best Practices https://technologyadvice.com/blog/sales/recurring-payments/ Thu, 15 Aug 2024 21:14:33 +0000 https://technologyadvice.com/?p=129221 Recurring payments can streamline operations and create stable, predictable cash flow.

The post What is Recurring Payment? Overview, Types & Best Practices appeared first on TechnologyAdvice.

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  • Recurring payments are automatic payments made at regular intervals for ongoing services or subscriptions.
  • Effective management of recurring payments can enhance customer retention, provide predictable cash flow, and improve operational efficiency.
  • Choosing the right payment processor and ensuring data security and compliance are crucial for successfully implementing recurring billing systems.
  • Offering multiple payment options and providing clear communication and self-service portals can significantly enhance the customer experience.

What are recurring payments?

Recurring payments, also sometimes called recurring billing or subscription payments, are automatically charged or deducted at regular, predetermined intervals, such as weekly, monthly, quarterly, or annually. These payments are facilitated by an agreement between a customer and a business, where the customer authorizes the business to automatically charge their credit card, debit card, or bank account on a recurring basis for products or services received.

The use of recurring payment processing has grown over the years, along with the growth of the SaaS industry. Recurring payments facilitate payments for streaming services, gym memberships, subscriptions, education websites, and SaaS products. They are also often used for large-ticket items such as rental fees, mortgage payments, monthly car payments, and wholesale recurring orders.

Recurring payment methods

Here are some of the most common payment methods used for recurring payments:

  • Credit and debit cards: Most customers have access to credit and debit cards, making this method highly accessible. Card transactions are processed quickly, but card details can expire or be replaced. Recurring credit card processing is the most common recurring payment transaction.
  • ACH payments: Automated Clearing House (ACH) payments are transfers from one bank account to another. These typically have lower processing fees compared to credit and debit card transactions, and account details are less likely to change compared to card details. However, processing times are longer than card transactions.
  • Digital wallets: Digital wallets like Apple Pay or Google Pay are becoming increasingly popular among younger demographics.

Each method has its unique advantages and potential drawbacks, and selecting the right one depends on your business needs and customer preferences. Additionally, having a payment processor that supports a variety of payment methods is crucial for maximizing convenience and ensuring a seamless payment experience.

How do recurring payments work?

The two main components of a recurring payment system are the authorization from the customer and the payment platform used by the business. Recurring payments involve a series of automated steps that streamline the billing process for both businesses and customers. Here’s a detailed breakdown of how recurring payments work:

1. Payment processor integration and setting up recurring billing

To accept recurring payments, a business needs to sign up with a payment processor or gateway that supports recurring billing. The recurring billing plans will need to be set up on the payment platform. This includes determining the frequency of payments and the amount to be charged for each billing cycle.

2. Customer authorization

When customers want to subscribe to a product or service, they need to authorize the recurring billing schedule. This can be done through online signup forms or agreements. With online signup forms, customers provide their payment details, such as credit card, debit card, or bank account details, and consent to the recurring charges. With agreements, customers sign a service agreement that outlines the recurring payment terms.

Here’s a sample authorization form you can use to get started:

Download our authorization form for free:

Once authorized, the payment details are saved and secured by the payment gateway. The same payment details are used for succeeding payments.

3. Payment execution

On the predetermined billing date, the payment processor automatically charges the customer’s payment method. This process includes transaction authorization and funds transfer.

The payment will continue to be automatically deducted from the customer according to the agreed-upon schedule until the customer cancels the agreement. After every payment, receipts will be generated and sent to the client.

4. Reconciliation and account updates

To ensure accuracy and continuity, businesses must regularly reconcile payments and update customer account information. This involves verifying that payments have been successfully processed, addressing any failed transactions promptly, and updating expired or changed payment details. Maintaining up-to-date customer account information minimizes disruptions and enhances customer satisfaction.

A seamless and continuous recurring payment process hinges on the accuracy of the customer’s payment details. It is crucial to keep the payment details up to date so that succeeding payments are successfully processed without any issues.

Types of recurring payments

Recurring payments can be categorized based on their nature and frequency. Understanding the different types can help businesses choose the most suitable billing model for their products or services.

Fixed recurring payments

Fixed recurring payments involve charging a consistent, predetermined amount at regular intervals. This type is commonly used for services or products with a stable cost, providing predictability for both the business and the customer.

Some examples of fixed recurring payments are monthly streaming service subscriptions, gym memberships, monthly or annual fees for SaaS products, and subscription boxes.

Variable recurring payments

Variable recurring payments involve charges that fluctuate based on usage or consumption. This type is suitable for services where costs vary over time.

Some examples of variable recurring payments are payments for utilities, telecommunications, and other consumption-based services.

Hybrid recurring payments

Finally, Hybrid recurring payments combine elements of both fixed and variable payments. They involve a base fee with additional charges that vary based on usage or other factors.

Some examples of hybrid recurring payments are mobile phone plans with a fixed monthly fee and additional charges for extra consumption or services, and utility services that charge a base fee plus usage-based costs.

Benefits & challenges of recurring payments

Recurring payments offer numerous advantages for businesses, but they also come with certain challenges. Understanding both can help you effectively implement and manage recurring billing systems.

Benefits

Here are some of the benefits of recurring payments:

  • Predictable cash flow: Recurring payments provide a reliable and consistent revenue stream. This predictability allows businesses to better forecast their financial health, manage budgets, and plan for future growth. Knowing that a certain amount of revenue will be received regularly helps in maintaining a stable cash flow, which is crucial for long-term sustainability.
  • Improved customer retention: By offering recurring payments, businesses can enhance customer loyalty and retention. Customers who sign up for recurring billing are less likely to cancel their services, especially when they appreciate the convenience and consistent value. This steady engagement can lead to longer customer lifecycles and increased lifetime value.
  • Operational efficiency: Automating the billing process reduces the administrative burden on businesses. Recurring payments eliminate the need for manual invoicing and follow-ups, freeing up resources to focus on other critical aspects of the business. This efficiency can also minimize errors associated with manual billing processes.
  • Enhanced customer experience: Recurring payments offer a seamless and hassle-free payment experience for customers. They don’t have to remember to make a payment each billing cycle, reducing the risk of late payments and service interruptions. This convenience improves overall customer satisfaction and can lead to positive word-of-mouth referrals.

Challenges

Here are some of the challenges of recurring payments:

  • Payment failures and retries: One of the main challenges with recurring payments is dealing with payment failures. These can occur due to expired credit cards, insufficient funds, or technical issues. Businesses must have a robust system to handle retries and communicate with customers to update their payment information promptly.
  • Managing customer data and security: Handling recurring payments requires storing sensitive customer information, such as credit card details and bank account numbers. Ensuring the security of this data is paramount to preventing breaches and fraud. Businesses must invest in secure payment processing systems and comply with industry standards like PCI DSS (Payment Card Industry Data Security Standard).
  • Handling cancellations and refunds: Customers may choose to cancel their subscriptions or request refunds for various reasons. Efficiently managing these cancellations and refunds while maintaining a positive customer relationship can be challenging. It’s essential to have clear policies and automated processes in place to handle these scenarios smoothly.
  • Compliance and regulatory considerations: Different regions have varying regulations regarding recurring payments, data protection, and customer rights. Businesses must stay informed about these regulations to ensure compliance. This includes adhering to laws like GDPR (General Data Protection Regulation) in Europe or CCPA (California Consumer Privacy Act) in the United States, which govern data privacy and customer consent.

How to accept recurring payments?

Implementing a recurring payment system requires careful planning and execution. Here are the essential steps to ensure a smooth and effective setup:

1. Choose the right payment processor

Selecting the right payment processor is crucial for managing recurring payments effectively. Make sure to consider the following factors:

  • Compatibility: Ensure the payment processor supports recurring billing and integrates well with your existing systems.
  • Fees: Compare processing fees to find a cost-effective solution that doesn’t compromise on features.
  • Security: Choose a processor with strong security measures, including PCI compliance.
  • Customer support: Reliable customer support is essential for resolving any issues that may arise with transactions.
  • Recurring billing tools: Look for a provider that has recurring billing tools such as billing templates, subscription management, customer portal, card vaults, and card auto-updater features to make automatic billing seamless. 

2. Set up a recurring billing system

Once you’ve chosen a payment processor, the next step is to set up your recurring billing system. This involves:

  • Defining billing cycles: Determine the frequency of payments (e.g., weekly, monthly, annually).
  • Setting payment amounts: Establish whether payments will be fixed or variable.
  • Creating customer profiles: Collect and securely store customer payment information.
  • Automating invoicing: Ensure your system automatically generates and sends invoices to customers.

3. Integrate with existing systems

To streamline operations, integrate your recurring billing system with your existing business systems. Some key systems to consider include:

  • ERP (Enterprise Resource Planning): Sync billing data with your ERP system for comprehensive financial reporting and management.
  • CRM (Customer Relationship Management): Integrate with your CRM to manage customer relationships and track billing histories.
  • Accounting software: Ensure seamless data transfer to your accounting software for accurate bookkeeping.

4. Ensure security and compliance.

Securing customer data and complying with regulations are crucial for managing recurring payments effectively. Follow these best practices:

  • PCI compliance: Adhere to the Payment Card Industry Data Security Standard (PCI DSS) to protect cardholder data.
  • Data encryption: Use strong encryption protocols (e.g., AES-256) to secure data during transmission and storage.
  • Tokenization: Replace sensitive payment information with unique tokens to reduce breach risks and simplify PCI compliance.
  • Data protection regulations: Ensure adherence to data protection regulations like GDPR and CCPA.
  • ASC 606 compliance: Businesses that enter into contracts with customers should adhere to the Accounting Standards Codification (ASC) 606.

Related: How to Accept Payments Online

Best practices for managing recurring payments

Managing recurring payments effectively requires implementing strategies that enhance customer satisfaction, ensure security, and streamline operations. Here are some best practices to consider:

  • Transparent communication: Clearly communicate billing terms and conditions to your customers. Ensure they understand the billing frequency, amount, and the process for updating payment information or canceling subscriptions. Transparent communication helps build trust and reduces disputes.
  • Simplify signup and billing processes: Make it easy for customers to sign up for recurring payments. Use user-friendly interfaces and straightforward forms. Automated invoicing and billing processes reduce administrative burden and ensure timely payments.
  • Offer multiple payment options: Provide a variety of payment methods to accommodate different customer preferences. Accept credit/debit cards, bank transfers, and digital wallets. Offering multiple options can improve customer satisfaction and reduce churn.
  • Ensure data security: Protect customer data by complying with PCI DSS standards and using encryption and tokenization. Regularly update your security protocols to safeguard against breaches. Secure data handling builds customer trust and minimizes risks.
  • Implement automated dunning management. Automated dunning management helps address failed payments by sending reminders and retrying transactions. This reduces manual intervention and improves recovery rates for missed payments.
  • Provide self-service options: Enable customers to manage their subscriptions through a self-service portal. Allow them to update payment information, view billing history, and make changes to their subscription plans. Self-service options enhance the customer experience and reduce support requests.

Top payment processors for recurring payments

Choosing the right payment processor is crucial for effectively managing recurring payments. Here are some payment processors known for their robust features, security, and ease of use.

Stax

Stax offers a subscription-based pricing model, beneficial for high transaction volumes. It has its dedicated billing platform, Stax Bill, which simplifies invoice and subscription billing management by automating financial processes. Stax is ASC 606-compliant, easy to use, and provides a self-service portal for customers to manage their subscriptions. And, It has an auto-updater to ensure that expired card details are updated.

Additionally, Stax has an auto-updater to ensure that expired card details are updated. Stax is highly scalable, supporting businesses as they grow by offering advanced analytics, custom reporting, and integrations with various ERP and CRM systems to streamline operations.

Helcim

Helcim offers the Helcim Subscription Manager, a user-friendly and transparent solution for managing recurring payments. Its platform allows businesses to easily create and customize recurring billing plans, adjusting for various billing frequencies and amounts. Helcim uses interchange-plus pricing for its card processing fees, making it a cost-effective recurring billing solution. 

It is designed to scale with businesses of all sizes, especially with its automatic volume discounts. It also provides features like customizable payment pages and comprehensive reporting tools. Large businesses can benefit from Helcim’s advanced security features and API integrations for seamless system connectivity.

Zoho

Zoho Books has its own subscription billing software called Zoho Subscriptions. Zoho Subscriptions comes pre-integrated with Zoho Books and can handle multi-currency accounting. It also supports a variety of payment gateways, has advanced reporting tools to help track subscription metrics, and includes features like automated invoicing, dunning management, and customizable billing cycles.

Zoho Subscriptions is highly scalable, offering tiered pricing plans that accommodate growing businesses. It provides robust API integrations, advanced analytics, and customizable workflows, making it suitable for large enterprises looking to automate and optimize their billing processes.

Frequently asked questions (FAQs)

A recurring payment is an automatic transaction where a customer authorizes a business to charge their credit card, debit card, or bank account at regular intervals for ongoing services or subscriptions.

Examples of recurring payments include monthly subscriptions to streaming services like Netflix, gym memberships, magazine subscriptions, software as a service (SaaS) products, and utility bills such as electricity or internet services.

To stop a recurring payment, you can typically cancel the subscription through the business or service provider’s website or contact their customer support. Additionally, you may contact your bank or credit card company to block the payment.

The post What is Recurring Payment? Overview, Types & Best Practices appeared first on TechnologyAdvice.

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5 Best Merchant Services for 2024 With No Monthly Fees https://technologyadvice.com/blog/sales/best-merchant-services/ Tue, 06 Aug 2024 14:56:22 +0000 https://technologyadvice.com/?p=128428 We’ve researched the best merchant services offering secure and stable payment processing at low, affordable rates.

The post 5 Best Merchant Services for 2024 With No Monthly Fees appeared first on TechnologyAdvice.

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A merchant service provider is vital for facilitating seamless payment transactions for businesses. Choosing the best merchant services is crucial for mid- to large-sized businesses looking to optimize their payment processing efficiency and business operations.

In this article, I evaluate the top free merchant account providers based on their affordability, scalability and performance, support and service, security and compliance, and ease of use and integrations. All of my picks have no minimum monthly fees and offer competitive rates. 

Based on my evaluation, the best merchant services for 2024 are:

Best merchant services comparison

Providers

Our score (out of 5)

Processing fee structure

Quick integrations

Customer Support

Helcim logo.

Helcim

4.48

  • Interchange-plus
  • Surcharging
  • Automatic volume discounts

Limited

Monday – Friday:  7am – 5pm MT

Saturdays:  9am – 5pm MT

Braintree logo

Braintree

4.33

  • Flat rate
  • Interchange-plus (custom for large-volume businesses)

Extensive

24/7

Payment Depot logo.

Payment Depot

4.22

  • Interchange-plus (custom add-on rate)
  • Surcharging

Good

24/7

Square logo.

Square

4.13

  • Flat rate

Good

Monday – Friday: 6am – 6pm PST

Stripe logo.

Stripe

4.09

  • Flat rate
  • Interchange-plus (custom for large-volume businesses)

Extensive

24/7

For this list, I considered dozens of credit card processing providers for mid- to large-sized businesses and then narrowed it down to those that do not charge any monthly fees. Next, I evaluated nine in detail for affordability, scalability and performance, support and service, security and compliance, and ease of use and integrations. 

To perform this evaluation, I took advantage of free trials and demos to get first-hand experience when possible. I also did extensive research on each option, including reaching out to the processors, reading user reviews, and testing them first-hand.

I then scored each option based on an algorithm I created that evaluates 20 different data points across five categories. Here’s a detailed breakdown of the criteria I used:

Affordability

I first considered the providers’ affordability. Although all of them offer a free merchant account, I looked at other payment processing costs, such as processing fee structure and limit, volume discounts, and chargeback fees. Providers that offer surcharging or interchange-plus fee structures get the highest points, with those that provide both options getting extra points for flexibility. 

Scalability and reliability

I evaluated scalability and performance to ensure the providers can handle the growth and transaction volumes typical for mid- to large-sized businesses. I examined the available hardware options, system reliability, and international capabilities. Providers with extensive hardware options, excellent system reliability, and robust international transaction handling scored the highest. Additionally, I considered the inclusions in their free plans, focusing on features that support business growth. 

Support and service

Support and service are crucial for businesses that require reliable assistance and resources. I assessed the setup and onboarding process, the availability of a dedicated account manager, and the quality of training and documentation provided. Providers offering free setups with comprehensive support, dedicated account managers, and extensive training resources received the highest marks.

Security and compliance

Security and compliance are paramount in payment processing. I evaluated the providers based on their fraud protection tools, PCI compliance, and data encryption. Providers that included robust fraud protection tools, were fully PCI compliant, and offered end-to-end data encryption scored highest in this category.

Ease of use and integrations

Finally, I assessed the ease of use and integration capabilities of each provider. This included the application process, user interface, integration with other systems, and availability of custom APIs. Providers with an intuitive user interface, extensive integration options, comprehensive custom APIs, and a straightforward application process received the highest scores. 

Additionally, user reviews from third-party software platforms Capterra, G2, and Software Advice were also included in my evaluation. These review sites offer real-world experience from actual users, and they were significant in bridging the gap between what providers present and what was delivered to their clients. 

Helcim logo.

Helcim: Best overall merchant service

Overall Reviewer Score

4.48/5

Affordability

5.31/5

Scalability and Performance

4.25/5

Support and Service

3.75/5

Security and Compliance

5/5

Ease of Use and Integrations

4.08/5

Pros

  • Interchange-plus pricing
  • Automatic volume discounts
  • Instant approval and quick set-up

Cons

  • Limited integrations
  • Limited customer support hours
  • Limited hardware options

Why I chose Helcim

Helcim emerged as the overall best merchant service due to its exceptional affordability, comprehensive security measures, and robust international transaction capabilities. It is the only provider in this guide that has automatic volume discounts and one of two providers that offer both surcharging and interchange-plus pricing. 

Its pricing structure ensures businesses can scale without worrying about escalating fees, and companies that want to scale globally can do so without any add-on processing fees. Aside from these, Helcim’s robust security features, such as fraud protection tools and end-to-end data encryption, provide a high level of trust and reliability.

Despite some limitations in hardware options and customer support availability, Helcim’s overall performance in key areas such as scalability, performance, and security makes it the top choice for mid-market to large enterprises looking for a cost-effective, secure, and versatile free merchant account provider.

  • Interchange-plus pricing
  • Surcharging via the Helcim Fee Saver program
  • Automatic volume discounts
  • Refundable chargeback fee
  • Instant online application
  • Helcim Fraud Defender
  • Integrated multichannel payment solutions
  • Customer management tools such as invoicing and recurring billing
  • Processing fee: The rates below are added to the interchange-plus rate applicable to the transaction.

Monthly Transaction Volume

Online and Keyed-In Transaction Rates

In-Person Transaction Rates

$0–$50,000

+ 0.50% + $0.25

+ 0.40% + $0.08

$50,001–$100,000

+ 0.45% + $0.25

+ 0.35% + $0.08

$100,001–$500,000

+ 0.35% + $0.25

+ 0.25% + $0.08

$500,001–$1,000,000

+ 0.25% + $0.25

+ 0.20% + $0.08

$1,000,001 up

+ 0.15% + $0.25

+ 0.15% + $0.08

  • ACH payments: 0.5% + $0.25 ($6 cap per transaction)
  • Chargeback fee: $15, refundable for disputes won
  • Hardware costs: $99–$329

Did you know? Helcim also tops our list as the cheapest credit card processor.

Braintree logo

Braintree: Best for white-glove support

Overall Reviewer Score

4.33/5

Affordability

4.06/5

Scalability and Performance

3.50/5

Support and Service

4.58/5

Security and Compliance

5/5

Ease of Use and Integrations

4.5/5

Pros

  • White-glove support and PayPal brand recognition
  • Extensive integrations
  • Custom interchange plus pricing for high-volume merchants
  • Sandbox environment for testing

Cons

  • Limited hardware options
  • In-person capabilities may require API/SDK integrations
  • No native invoicing tool

Why I chose Braintree

Braintree stood out as a top contender for best merchant account providers due to its white-glove support, extensive integration capabilities, and tailored pricing for high-volume merchants. One major advantage of Braintree is that it is a PayPal company, so you get the easy recognition and the extra perk of being able to accept PayPal and Venmo payments.

However, if your business does a lot of heavy in-person payment processing, using Braintree will require API/SDK integrations. This inconvenience of not having an out-of-the-box in-person payment solution is eased by its white-glove support from start to finish. The platform also provides a sandbox environment for testing, which allows businesses to thoroughly evaluate and fine-tune their payment processes before going live.

The platform’s extensive integrations mitigate the lack of a native invoicing tool, enabling seamless connections with other business systems. Braintree’s high-touch support, affordability, scalability, and integration capabilities make it a reliable choice for mid to large-sized businesses.

  • Flat-rate fee
  • Custom interchange-plus pricing by request
  • Sandbox environment 
  • Accepts card, ACH, PayPal, Venmo, and mobile wallet payments
  • Local payment methods
  • Strong fraud protection tools
  • Extensive integrations
  • Well-documented API/SDK integrations
  • Payment processing fee: 2.59% + $0.49
  • Charity rate: 1.99% + $0.49
  • International fee: 1%
  • Chargeback fee: $15
  • ACH payments: 0.75% 
  • Venmo payments: 3.49% + $0.49
  • Hardware costs: $239–$600
Payment Depot logo.

Payment Depot: Best for custom pricing

Overall Reviewer Score

4.22/5

Affordability

4.38/5

Scalability and Performance

4/5

Support and Service

3.75/5

Security and Compliance

5/5

Ease of Use and Integrations

3.96/5

Pros

  • Custom interchange-plus pricing
  • Surcharging program
  • 24/7 customer support

Cons

  • No instant or same-day setup
  • Limited online support resources
  • Only for businesses in the US

Why I chose Payment Depot

Payment Depot earns its place in this list of the best merchant services due to its custom interchange-plus pricing and surcharging program. Its 24/7 customer support and hardware options make it an excellent option for businesses that need both in-person and online payment processing solutions. 

However, Payment Depot’s setup process is not instant or same-day, which may be a drawback for businesses needing quick implementation. Additionally, its online support resources are somewhat limited, and it is only available for businesses in the US. Despite these limitations, Payment Depot’s cost-effective pricing structure and reliable support make it an excellent choice for US-based businesses seeking a transparent and supportive merchant account provider.

  • Custom interchange-plus rates
  • Surcharging program
  • 24/7 support
  • Integrations with other major platforms
  • Full POS system
  • Custom processing rates: 0.2%–1.95% on top of interchange fees
Square logo.

Square: Best out-of-the-box solution

Overall Reviewer Score

4.13/5

Affordability

2.50/5

Scalability and Performance

4.75/5

Support and Service

3.75/5

Security and Compliance

5/5

Ease of Use and Integrations

4.67/5

Pros

  • Seamless omnichannel payment solutions
  • User-friendly intuitive interface
  • Offers a full POS system
  • Custom rates for businesses processing over $250,000 monthly

Cons

  • Limited customer support hours
  • Has a processing limit for the free plan
  • Flat-rate fees only

Why I chose Square

Square stood out for its seamless omnichannel payment solutions, offering an integrated system that works effortlessly across in-store, online, and mobile platforms. This comprehensive ecosystem allows businesses to manage all payment processes in one place, enhancing efficiency and customer experience. Additionally, Square’s out-of-the-box solution and user-friendly interface ensure that both tech-savvy and less experienced users can navigate the system with ease.

Although it has limitations like flat-rate fees, which are very expensive for large-volume transactions, and restricted customer support hours, Square’s robust POS system and intuitive design make it an excellent choice for businesses seeking versatile and reliable payment solutions.

  • Flat rate processing fees
  • Omnichannel payment solutions
  • Full POS system
  • User-friendly platform
  • Website builder
  • Waived chargeback fee
  • API integrations
  • Has various native business tools such as Square Appointments, Square Staff, and Square Payroll

Did you know? Square tops our lists of the Best POS Systems for Small Businesses and the Best Mobile POS Systems

  • Processing fees:

Plan

Monthly Fee

In-person Transaction Fee

Keyed-in Transaction Fee

Online Transaction Fee

Square Online Free Plan

$0

2.6% + $0.10

3.5% + $0.15

2.9% + $0.30

Square Online Plus Plan

$29

2.6% + $0.10

3.5% + $0.15

2.9% + $0.30

Square Online Premium Plan

$79

2.6% + $0.10

3.5% + $0.15

2.9% + $0.30

Square for Retail Plus Plan

$89

2.6% + $0.10

3.5% + $0.15

2.9% + $0.30

  • ACH payments: 1% (minimum of $1 per transaction)
  • Hardware costs: $0–$799

Related:

Stripe logo.

Stripe: Best for custom solutions

Overall Reviewer Score

4.095/5

Affordability

3.75/5

Scalability and Performance

3.75/5

Support and Service

4.17/5

Security and Compliance

4.17/5

Ease of Use and Integrations

4.64/5

Pros

  • Robust developer tools and powerful APIs
  • Quick instant set-up
  • 24/7 support

Cons

  • Requires integration for in-person payment processing
  • Additional fee for fraud protection tools
  • Account freezes

Why I chose Stripe

Stripe stands out as the best option for custom payment solutions due to its robust developer tools and powerful APIs. These tools allow businesses to create highly tailored payment processing systems, fitting unique needs and workflows seamlessly. The platform’s quick, instant setup ensures that businesses can start accepting payments with minimal delay, while its 24/7 support provides continuous assistance.

However, Stripe requires integration for in-person payments, which might not suit every business. Additional fees for fraud protection tools and potential account freezes are considerations to remember. Despite these drawbacks, Stripe’s flexibility and powerful customization capabilities make it an excellent choice for businesses seeking a custom payment processing solution tailored to their specific needs.

  • Flat-rate processing fees
  • Interchange-plus pricing by request for high-volume businesses 
  • Instant setup
  • Powerful APIs
  • Customizable checkout process
  • 24/7 customer support
  • Card-present transaction fee: 2.7% + $0.05
  • Online transaction fee: 2.9% + $0.30
  • Manually keyed-in: 3.4% + $0.30
  • Recurring payments: Additional 0.5% per transaction
  • ACH payments: 0.8% ($5 cap per transaction)
  • International processing fee: + 1.5% 
  • Invoicing: Additional 0.4% per transaction
  • Hardware costs: $59–$249

Benefits of merchant services

Merchant services provide businesses with tools to process payments efficiently and securely. These services enhance operational capabilities, boost customer satisfaction, and support business growth. Here are some key benefits:

  • Accept various payment methods, including credit and debit cards.
  • Enhance customer convenience and satisfaction.
  • Secure transaction processing to reduce fraud risk.
  • Detailed transaction reporting for better financial management.
  • Tools for invoicing, recurring billing, and customer management.
  • Streamline business operations and improve cash flow.
  • Support business growth and scalability.

How to choose the best merchant account provider

Selecting the best merchant account provider for your business involves careful consideration of several factors to ensure the provider meets your specific needs. Here are some key steps to guide you in making the right choice:

  • Identify your business needs: Determine what features and services are essential for your business, such as in-person payments, online transactions, recurring billing, or mobile payment options.
  • Compare pricing structures: Evaluate the cost-effectiveness of different providers by comparing processing fees, setup fees, monthly fees, and any hidden charges. Look for providers with transparent pricing models, such as interchange-plus pricing.
  • Check for scalability: Ensure the provider can support your business as it grows, with the ability to handle increased transaction volumes and offer advanced features.
  • Evaluate security and compliance: Prioritize providers that offer robust security measures, including PCI compliance, end-to-end encryption, and fraud protection tools to safeguard your transactions.
  • Assess customer support: Consider the quality and availability of customer support. Look for providers that offer 24/7 support, dedicated account managers, and comprehensive onboarding assistance.
  • Examine integration capabilities: Ensure the provider can seamlessly integrate with your existing business systems, such as POS systems, accounting software, and e-commerce platforms.
  • Read user reviews: Look for feedback from other businesses similar to yours to gauge real-world performance and customer satisfaction.

Which is the best merchant service provider?

The best merchant service provider depends on specific business needs, such as transaction volume, required features, and payment methods. However, in our evaluation, Helcim stands out as the best overall due to its comprehensive affordability, robust security, and scalability. With automatic volume discounts, both surcharging and interchange-plus pricing, and extensive fraud protection tools, Helcim offers a versatile and cost-effective solution. Despite some limitations in hardware options and customer support hours, Helcim’s exceptional performance in key areas makes it ideal for businesses of all sizes, from small businesses to mid-market and large enterprises.

Frequently asked questions (FAQs)

A merchant service is a financial service that enables businesses to accept and process payments, typically through credit and debit cards. This includes the necessary infrastructure for handling transactions, such as payment gateways, point-of-sale (POS) systems, and payment processors. Merchant services ensure secure and efficient payment processing, helping businesses manage sales, reduce fraud, and improve customer experience.

A merchant account is essential for businesses that want to accept credit and debit card payments. It facilitates smooth and secure transactions, helping increase sales by providing customers with multiple payment options. Additionally, a merchant account can offer fraud protection, better cash flow management, and improved customer satisfaction by streamlining the payment process.

Merchant services typically include several types of fees, such as transaction fees (a percentage of each sale plus a fixed amount), monthly fees, setup fees, and chargeback fees. Some providers also charge fees for specific services like fraud protection or advanced reporting. It’s important to review and understand all potential fees to compare costs across providers accurately.

The post 5 Best Merchant Services for 2024 With No Monthly Fees appeared first on TechnologyAdvice.

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helcim Braintree logo paymentdepot square stripe logo helcim unnamed – 2024-08-05T163823.484 The Helcim dashboard allows users to view customers, products, integrations, and back-office tools. (Source: Helcim) unnamed – 2024-08-05T163826.556 Helcim’s virtual terminal is free to use for Helcim customers (keyed-in card processing fees apply). (Source: Helcim) unnamed – 2024-08-05T163829.488 Helcim’s chargeback dashboard allows businesses to see and manage all their chargebacks easily. (Source: Helcim) unnamed – 2024-08-05T163832.337 Helcim businesses can quickly view their sales when they log in to their dashboard. (Source: Helcim) unnamed – 2024-08-05T163835.294 Helcim has a card reader and a smart terminal as point-of-sale hardware for in-person credit card processing. (Source: Helcim) Braintree logo unnamed – 2024-08-05T164704.422 The Braintree dashboard shows all transactions. (Source: Braintree) unnamed – 2024-08-05T164710.900 Braintree allows merchants to create custom checkout solutions. (Source: Braintree) unnamed – 2024-08-05T164713.829 Braintree accepts a wide range of payment methods. (Source: Braintree) unnamed – 2024-08-05T164716.756 Braintree’s dashboard allows easy subscription management. (Source: Braintree) paymentdepot unnamed – 2024-08-05T165326.783 Payment Depot uses Clover POS devices for its in-person payment processing. unnamed – 2024-08-05T165329.354 Payment Depot uses Swipe Simple for mobile credit card processing. (Source: Payment Depot) unnamed – 2024-08-05T165332.427 Payment Depot has a support ticket form for help or any support needed. (Source: Payment Depot) square unnamed – 2024-08-05T170319.641 Users can see their sales, inventory, upcoming deposits, and customers through the Square dashboard. (Source: Square) unnamed – 2024-08-05T170323.083 Users can see all their deposits through the Square dashboard. (Source: Square) unnamed – 2024-08-05T170326.944 Square does not have a chargeback fee and has a dispute dashboard to make it easy for businesses to manage chargebacks. (Source: Square) unnamed – 2024-08-05T170334.296 The Square Register and Square Terminal are Square’s all-in-one POS solutions. (Source: Square) unnamed – 2024-08-05T170336.858 Square card readers that can be used at the counter or on the go. (Source: Square) stripe logo unnamed – 2024-08-05T171216.502 Stripe allows businesses to easily create and customize a one-page checkout page. (Source: Stripe) unnamed – 2024-08-05T171220.318 Stripe’s invoicing tool is easy to customize. (Source: Stripe) unnamed – 2024-08-05T171224.110 Stripe offers several hardware options for in-person payment processing. (Source: Stripe)
How to Accept Payments Online https://technologyadvice.com/blog/sales/accept-payments-online/ Wed, 31 Jul 2024 22:39:54 +0000 https://technologyadvice.com/?p=128086 As consumer preferences evolve, accepting payments online is crucial for business success in 2024. Yet, implementing the technology doesn’t have to be complicated or costly.

The post How to Accept Payments Online appeared first on TechnologyAdvice.

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  • Learning how to accept payments online is essential for expanding market reach and providing convenience to customers.
  • Choosing a provider that offers both a merchant account and a payment gateway simplifies the setup process.
  • Adopting different payment methods, such as payment links, invoicing, and subscriptions, can improve customer satisfaction while also increasing conversion and minimizing outstanding balances.
  • Offering different payment methods such as credit and debit cards, ACH payments, digital wallets, and cryptocurrency helps your business cater to diverse customer preferences.

What is online payment processing?

Online payment processing is a system that enables businesses to accept payments over the internet. This process involves various technologies and financial institutions that ensure funds are securely transferred from the customer’s account to the merchant’s account.

Here are some of the main components of online payment processing:

Merchant account

A merchant account is a type of business bank account that allows businesses to accept and process electronic payments. It temporarily holds the funds from a transaction before they are transferred to the business’ bank account. Setting up a merchant account involves signing up with a merchant service provider or a payment processor. 

Payment processor

Payment processors handle the transactions between the customer’s bank and the merchant’s bank. They facilitate the communication and transfer of funds, ensuring that the payment is authenticated and processed correctly. Payment processors also manage the settlement of funds and handle any issues that arise during the transaction. 

Related: See the best payment processors and the cheapest payment processors to find one for your business.

Payment gateway

A payment gateway is a technology that captures and transfers payment data from the customer to the acquiring bank. It acts as an intermediary between the merchant’s website and the payment processor, ensuring that the transaction data is transmitted securely. Payment gateways play a critical role in authorizing payments and providing a seamless checkout experience for customers.

In many cases, a single provider can handle all the functions of a merchant account, a payment processor, and a payment gateway. This consolidation simplifies the setup process for businesses, reduces the complexity of managing multiple accounts, and often leads to cost savings through bundled services. 

How does online payment processing work?

Online payment processing involves a series of steps that ensure secure and efficient transactions. Here’s a concise breakdown of how it works:

  1. Customer prepares to make a payment: The customer initiates a payment on a website, through an invoice, a payment link, or other digital methods.
  2. Payment information is entered: The customer enters their payment details, such as credit card information or digital wallet credentials.
  3. Data is encrypted and sent: The payment gateway encrypts the payment data and sends it to the payment processor.
  4. Transaction is authorized: The payment processor communicates with the customer’s bank (issuing bank) to verify the payment details and authorize the transaction.
  5. Transaction confirmation: The payment gateway sends a confirmation to both the customer and the merchant, finalizing the purchase.
  6. Funds are transferred: Once authorized, the funds are transferred from the customer’s bank to the merchant account (acquiring bank) via the payment processor.

This process typically occurs within seconds, providing a seamless and secure payment experience for both parties.

4 steps to accept payments online

Setting up online payment processing is essential for any business. Here are four steps to start accepting online payment effectively:

1. Set up a merchant account and payment gateway. 

Choose a provider that offers both a merchant account and a payment gateway. This will simplify the setup process and streamline your payment operations. Providers like Stripe and PayPal offer comprehensive solutions that bundle these services together, making it easier for businesses to get started. 

If you already have a merchant account, ask your merchant service provider which payment gateway they work with or choose a compatible payment gateway to integrate with your existing setup.

2. Integrate with your platform

Connect the payment gateway to your website or application. Some platforms like Shopify also offer a built-in payment gateway which does not require any integrations. If you prefer to use a third-party gateway, most provide APIs, plugins, and integration tools that work seamlessly with popular e-commerce platforms and custom websites. Ensure the integration is smooth and the checkout process is user-friendly to minimize cart abandonment. 

3. Ensure security and compliance

Implement necessary security measures such as SSL certificates and encryption to protect sensitive payment information. Additionally, ensure compliance with industry standards like PCI-DSS to safeguard your customers’ data and build trust.

4. Test and optimize

Thoroughly test your payment system to identify and fix any issues before going live. Once the system is operational, continuously monitor transactions and gather data to optimize the payment process. Regularly update your security measures and adjust your setup based on customer feedback and transaction performance.

Best ways to accept payments online

Choosing the right methods to accept online payments can significantly enhance the customer experience and streamline your business operations. 

Here are some of the best ways to accept payments online and the different use scenarios for each one:

On your website

Integrating a payment gateway directly into your website is one of the most seamless ways to accept payments. This allows customers to complete their purchases without being redirected to another site. Popular e-commerce platforms like Shopify, WooCommerce, and Magento offer easy integration with various payment gateways. Custom solutions using APIs are also available for businesses with unique requirements.

Using payment links

Payment links are versatile tools that enable businesses to request payments through various digital channels. They are particularly useful for businesses that do not have an online store but still need to accept payments online. Here are some ways businesses can use payment links:

  • In an email: Businesses can create and send payment links directly to customers through email. This method is convenient for both parties and ensures a secure payment process.
  • In a text message: Merchants may use SMS to send payment links to customers’ mobile phones. This is especially effective for on-the-go payments and quick transactions.
  • Through messaging apps: This method allows businesses to accept payments through popular messaging apps like WhatsApp, Facebook Messenger, and WeChat.
  • In social media posts: Payment links can be embedded in social media posts on platforms like Instagram, Facebook, and X. This allows followers to make purchases directly from your social media pages.

Sending an invoice or setting up subscription

For businesses that rely on invoicing and recurring payments, setting up an online invoicing system is crucial.

  • Creating and sending online invoices: Use tools like QuickBooks, FreshBooks, or Xero to generate and send professional invoices to customers. These platforms often integrate with payment gateways, enabling customers to pay directly from the invoice.
  • Setting up recurring payments: For subscription-based businesses, recurring billing is essential. Platforms like Helcim and Stax offer robust solutions for managing subscriptions and automated billing cycles, ensuring consistent cash flow and customer retention.

To cater to diverse customer preferences and provide convenience, offer multiple payment methods such as credit and debit cards, ACH payments, digital wallets like Apple Pay and Google Pay, and even cryptocurrency. Determine the payment methods you want to offer and ensure that your chosen payment gateway or processor can accommodate your preferred payment methods.

Best payment processors for accepting online payments

Choosing the right payment processor is crucial for optimizing your online payment strategy. The best payment processors offer a combination of competitive pricing, robust security, and seamless integration with your existing systems. Here are some top payment processors to consider:

Helcim

Helcim is known for its transparent pricing and excellent customer service. It offers a variety of payment processing solutions, including online payments, in-person payments, and invoicing. Helcim supports a wide range of payment methods and provides features such as recurring billing and subscription management. It also offers seamless integration with popular e-commerce platforms.

Shopify Payments

Shopify Payments is a built-in payment processor for Shopify users, offering a seamless and fully integrated payment solution. It supports various payment methods, including credit and debit cards, digital wallets, and local payment options. Using Shopify Payments eliminates the need for third-party payment gateways and simplifies transaction management for Shopify store owners.

Stax

Stax offers a subscription-based pricing structure and interchange-plus pricing with no percentage add-on, which helps significantly reduce transaction costs. It provides a comprehensive suite of tools, including advanced reporting, seamless integration with major e-commerce platforms, and robust security features. 

Stripe

Stripe is known for its powerful API and ease of integration, making it a favorite among developers and tech-savvy businesses. It supports a wide range of payment methods, including credit and debit cards, ACH payments, and digital wallets. Stripe also offers advanced features like subscription billing, fraud detection, and international payments.

Pros and cons of accepting payments online 

Accepting payments online offers numerous benefits for businesses, but it also comes with some challenges. Here’s a look at the key pros and cons:

Pros

  • Increased sales: It is convenient and gives businesses a wider market reach.
  • Improved customer experience: Seamless checkout, variety of payment methods.
  • Better record-keeping: All transactions are automatically tracked and recorded.

Cons

  • Higher transaction costs. Online transactions are generally more expensive than in-person ones.
  • Technical challenges: Online payment systems are subject to integration issues and downtimes.
  • Regulatory compliance: Subject to more complex PCI-DSS compliance and data privacy laws.

Choosing the right online payment solution

Selecting the appropriate online payment solution is crucial for your business’s success. The right solution will meet your needs, provide security, and offer a seamless experience for your customers. Here are key factors to consider when choosing an online payment solution:

Assess your business needs

Evaluate the specific requirements of your business. Consider factors such as the volume of transactions, the types of payments you need to accept (e.g., one-time payments, subscriptions), and any industry-specific needs. Understanding your business’s unique requirements will help you narrow down the options and choose a solution that fits.

Compare transaction fees and costs

Transaction fees can vary widely between payment processors. Compare the fees charged for different types of transactions, including fixed fees, percentage-based fees, and any additional costs for features like chargeback protection or international payments. Opt for a solution that offers transparent pricing and fits your budget.

Consider security and compliance

Security should be a top priority when selecting any payment solution. Ensure the provider complies with industry standards like PCI-DSS, which is essential for protecting payment data. Look for additional security features such as encryption, fraud detection, and two-factor authentication to further safeguard transactions.

Look for integration capabilities

The payment solution should easily integrate with your existing systems, including your website, e-commerce platform, and accounting software. Seamless integration ensures a smooth customer experience and simplifies your backend processes. Many payment providers offer APIs, plugins, and extensive documentation to facilitate integration.

Check for scalability and flexibility

Your payment solution should be able to grow with your business. Consider whether the provider can handle increased transaction volumes and whether they offer additional features that you might need in the future, such as support for multiple currencies or additional payment methods.

Evaluate customer support and service

Reliable customer support is essential, especially when dealing with online payment processing issues. Choose a provider that offers robust customer support, preferably 24/7, and has a reputation for responsive and helpful service. Good customer support can save you time and prevent revenue loss in case of technical difficulties.

Read reviews 

Research reviews from other businesses similar to yours to get an idea of the provider’s reputation. Look for testimonials that mention reliability, ease of use, and customer service. Additionally, seek recommendations from industry peers or business networks to find a trusted solution.

Frequently asked questions (FAQs)

To start accepting digital payments, set up a merchant account and integrate a payment gateway with your website. Customize payment options to include credit/debit cards, digital wallets, and bank transfers to cater to customer preferences and streamline transactions.

The costs of online payments typically include transaction fees, which are usually a percentage of each sale plus a fixed fee per transaction. Additionally, there may be monthly fees for using a payment processor or gateway, setup fees, and charges for additional services like fraud protection or currency conversion. It’s important to review and compare these costs across different providers to find the most cost-effective solution for your business.

The safest way to accept payments online is to use a reputable payment processor that complies with PCI-DSS standards, implements encryption for data security, and offers fraud detection features. Additionally, ensure your website has an SSL certificate to protect sensitive customer information and regularly update your security measures to guard against vulnerabilities.

Payment processing times vary depending on the payment method and provider. Credit and debit card transactions are typically processed within a few seconds to a few minutes, while bank transfers (ACH) may take 1-3 business days. Some payment processors offer instant or same-day settlement options, but this can depend on your specific account setup and the payment provider’s policies.

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5 Best Healthcare Payment Processing Solutions for 2024 https://technologyadvice.com/blog/sales/healthcare-payment-processing-solutions/ Fri, 26 Jul 2024 15:07:43 +0000 https://technologyadvice.com/?p=127977 Learn about the best healthcare payment processing providers and how to choose the right one for your business.

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At TechnologyAdvice, we assess a wide range of factors before selecting our top choices for a given category. To make our selections, we rely on our extensive research, product information, vendor websites, competitor research, and first-hand experience. We then consider what makes a solution best for customer-specific needs. 

For this list, I considered various credit card processing providers for mid- to large-sized healthcare businesses. I evaluated Health Insurance Portability and Accountability Act (HIPAA) compliance, electronic health record (EHR) and patient management system (PMS) integrations, payment methods, and initial and ongoing costs. Customer reviews, deposit speed, and customer support are also assessed in the selection process. 

TechnologyAdvice writers will often take advantage of free trials and demos to get a first-hand user experience of available solutions. Finally, we curate a comprehensive list based on the previously stated factors, ensuring readers have the necessary tools to make an informed decision.

We rely on an internal algorithm to calculate star ratings, which are based on many factors. Below is a breakdown of the categories I used to grade each platform. Each category also includes my expert score, which contributes to its overall score.

Healthcare-specific tools

I first considered the providers’ capability to handle the needs of a healthcare business. Providers with multiple payment methods, fraud protection, EHR and PMS integrations, and FSA/HSA card support received the highest scores. Since payment processing alone is not required to be HIPAA-compliant, I gave bonus points to providers that are fully HIPAA-compliant. Solutions that provide signed Business Associate Agreements (BAA) to help healthcare businesses become fully compliant also received high scores.

Pricing and features

I considered various fees that may be incurred, such as setup and monthly fees, processing fees, chargeback fees, and hardware costs. Other integrations, security, and Payment Card Industry Data Security Standard (PCI DSS) compliance are also considered.

User experience

The ease of user experience is an important consideration when choosing a payment solutions partner. I looked at various factors that affect the overall user experience of using the payment processing platform, such as customer support, deposit speed, system reliability, application and onboarding, contract terms, and scalability.

User reviews from third-party software platforms Capterra, G2, and Software Advice were also included in my evaluation of user experience. These review sites offer real-world experience from actual users, and they were significant in bridging the gap between what providers present and what was delivered to their clients.

Healthcare providers and businesses need payment processing solutions that cater to their unique needs. This involves compliance with regulations, seamless EHR and PMS integrations, and the ability to handle various payment methods, including government-issued debit cards like FSA and HSA.

In this article, I looked at the top healthcare payment processors and evaluated them based on their healthcare-specific tools, pricing, features, and user experience.

Based on my evaluation, here are the best healthcare payment processing providers for 2024:

  • Chase: Best for healthcare integrations
  • Square: Best for comprehensive business tools
  • Stax: Best for large-volume healthcare transactions
  • PaymentCloud: Best for telemedicine practice
  • Podium Payments: Best for patient engagement and lead management

Best healthcare payment processing comparison

Providers

Our Score (out of 5)

Monthly Fee Starts At

Processing Fee Structure

HIPAA/BAA

EHR Integration

4.60

$0

Flat-rate

InstaMed, 40+ other integrations

Square logo.

Square

4.57

$0

Flat-rate

Remedly, DrChrono, ClinicSense, EZDerm

4.33

$99

Interchange-plus

X

Aesthetics Record EMR, Psyquel, OptiMantra, DrChrono

PaymentCloud logo.

PaymentCloud

4.32

$10

Flat-rate

Signed BAA

Not specified

Podium Payments logo.

Podium Payments

4.27

$399

Flat-rate

40+ integrations

Chase logo.

Chase Payment Solutions: Best for easy EHR and PMS integrations

Overall Score

4.6/5

Healthcare-specific tools

5/5

Pricing and features

3.93/5

User experience

4.61/5

Pros

  • Native integration with InstaMed
  • Fully HIPAA-compliant
  • Integrates with many EHR and PMS

Cons

  • Possible tiered pricing with InstaMed
  • Only for businesses in the US
  • Does not support high-risk businesses

Why I chose Chase Payment Solutions

Chase Payment Solutions stands out for healthcare providers due to its robust integration capabilities and comprehensive compliance features. One of the key reasons for choosing Chase is its native integration with InstaMed, a leading healthcare payment processing platform that is fully HIPAA-compliant. This integration simplifies the connection with electronic health records (EHR) and patient management systems (PMS), ensuring secure and efficient transactions.

It supports various payment methods, including in-person card payments via Tap-to-Pay on iPhone, credit and debit cards, Apple Pay, and Google Pay. It also features same-day deposits, providing quick access to funds. The platform is PCI-DSS compliant and offers secure storage of patient card details for automatic payments. Additionally, Chase provides detailed reporting tools and 24/7 customer support.

While Square offers a versatile ecosystem with competitive pricing and extensive tools, Chase’s InstaMed integration specifically targets healthcare needs. Stax provides customizable solutions and transparent pricing, but Chase’s same-day deposit and easy EHR integrations offer a distinct advantage for healthcare providers. For those requiring high-risk merchant support, PaymentCloud might be more suitable, but Chase’s overall feature set makes it a top choice for secure and efficient healthcare payment processing.

  • Native fully HIPAA-compliant integration with InstaMed
  • Quick access to funds through same-day deposits 
  • Accept in-person card payments using Tap-to-Pay on iPhone
  • Supports credit and debit cards, Apple Pay, Google Pay, and government-issued FSA and HSA debit cards
  • PCI-DSS-compliant
  • Store patient card details for automatic and instant payments
  • Reporting tools and insights
  • 24/7 customer support
  • Monthly fee: $0 ($15 if with Chase Business Checking account and the balance lower than $2,000)
  • In-person processing fee: 2.6% + $0.10
  • Online processing fee: 2.9% + $0.25
  • Keyed-in processing fee: 3.5% + $0.10
  • Custom pricing: Available upon request and depends on processing volume 
Square logo.

Square: Best for comprehensive business tools

Overall Score

4.57/5

Healthcare-specific tools

5/5

Pricing and features

4.29/5

User experience

4.18/5

Pros

  • Fully HIPAA-compliant
  • Robust omnichannel payment processing tools
  • Free website builder

Cons

  • Limited customer hours
  • Account stability issues
  • Expensive for high-volume transactions

Why I chose Square

Square is perfect for healthcare providers due to its full HIPAA compliance and versatile payment tools. It supports FSA/HSA debit cards, credit/debit cards, and ACH payments, providing patients with flexibility in terms of payment methods. The free website builder and virtual terminal save costs and simplify payment management.

It provides easy integration with various healthcare software like Noterro, DrChrono, and EZDERM, plus you can create custom solutions with API integration. Square is also PCI-DSS-compliant and its Risk Manager helps lower and manage fraud risk.

However, Square’s flat rate pricing can be expensive for high-volume transactions. Although it can offer custom rates for businesses transacting more than $250,000 a month, you will need to contact Square and negotiate for it. Limited customer support hours may be a drawback, but Square’s user-friendly tools and comprehensive features make it a top pick for many healthcare providers. It’s great for small to mid-sized practices, whereas Stax might be better for higher volumes.

  • Full HIPAA-compliance
  • No monthly fees with free use of the virtual terminal, website builder, and invoicing tools
  • Supports government-issues FSA and HSA debit cards, credit and debit cards, and ACH payments
  • Accepts in-person payments through Tap-to-Pay on iPhone and Android, card readers, and smart terminals
  • Easy integration with Noterro, Reference Health, Remedly, DrChrono, ClinicSense, and EZDERM
  • API integration for custom solutions
  • Has Square Appointments for managing appointments, Square Payroll for quick and simple payroll processing, and Square Staff for managing team schedules and communication
  • Monthly fee: $0–$60
  • In-person processing fee: 2.6% + $0.10
  • Online processing fee: 2.9% + $0.25
  • Keyed-in processing fee: 3.5% + $0.15
  • Invoicing: 3.3% + $0.30
  • Recurring billing/card on file: 3.5% + $0.15
  • ACH payments: 1% ($1 min)
  • Custom pricing: Available by request for annual processing volume above $250,000
Stax logo.

Stax: Best for large-volume healthcare businesses

Overall Score

4.33/5

Healthcare-specific tools

4.5/5

Pricing and features

3.93/5

User experience

4.55/5

Pros

  • Interchange plus pricing
  • 24/7 customer support
  • Designed to handle high volume of transactions

Cons

  • Monthly fees
  • Expensive for low-volume businesses
  • Only available for businesses in the US

Why I chose Stax

Stax is perfect for large-volume healthcare businesses because it handles high transaction volumes smoothly. Its transparent interchange-plus pricing means you know exactly what you’re paying, which is great for managing costs.

Stax integrates effortlessly with various EHR and EMR systems like Aesthetic Record EMR, Psyquel, and DrChrono, making it super convenient. It also supports a wide range of payment methods, including FSA/HSA debit cards, credit/debit cards, and ACH payments. Security is top-notch with PCI-DSS compliance, stored card payments, and automatic updates. Plus, their 24/7 customer support ensures you get help whenever you need it.

Compared to other providers, Stax’s edge is with its clear pricing, interchange-plus pricing structure, and high transaction capacity. While Square offers extensive tools, Stax’s focus on high-volume transactions and healthcare-specific integrations make it the better choice for big healthcare operations.

  • Interchange-plus pricing
  • Integrates with various EHR and EMR systems such as Aesthetic Record EMR, Psyquel, OptiMantra, DrChrono, and other apps via API
  • Accepts government-issued FSA and HSA debit cards, credit and debit cards, and ACH payments
  • PCI-DSS-compliant
  • Stored card payments
  • Automatic stored card update
Monthly Transaction VolumeMonthly FeeCard-Present Transaction FeeCard-Not-Present Transaction Fee
Up to $150,000$99Interchange + $0.08Interchange + $0.18
$150,000-$250,000$139Interchange + $0.08Interchange + $0.18
$250,000 and above$199Interchange + $0.08Interchange + $0.18
  • Custom pricing: Available by request for higher processing volume
PaymentCloud logo.

PaymentCloud: Best for telemedicine and high-risk healthcare businesses

Overall Score

4.32/5

Healthcare-specific tools

5/5

Pricing and features

4.29/5

User experience

3.67/5

Pros

  • Supports high-risk merchants
  • Free card reader
  • Tailored solutions

Cons

  • No publicly disclosed pricing
  • Longer approval times
  • Additional fee for virtual terminal

Why I chose PaymentCloud

PaymentCloud is the only provider on this list offering support for high-risk businesses. Although most healthcare merchants are not in the high-risk category, telemedicine is still often considered a high–risk industry. If you run a telemedicine practice, PaymentCloud is a highly suitable healthcare payment solution.

Although it may have a slightly longer approval process than other providers, PaymentCloud has a very high 98% merchant approval rate. It can work with any payment gateway and tailor custom solutions based on your needs, which means it can work with almost any EHR, EMR, or PMS platform.

One of the best things about PaymentCloud is you will get a dedicated account manager to help you right from the start so you can rely on having a specific person to get in touch with if you need any support. Its focus on high-risk merchants also necessitates heavy emphasis on fraud prevention, which is provided through its strong fraud protection tools.

  • HIPAA-compliant merchant account
  • Custom monthly fees and transaction rates
  • Supports low-risk to high-risk merchants
  • Free credit card terminal 
  • Accepts government-issued FSA and HSA debit cards, credit and debit card payments, and ACH and echeck payments
  • Dedicated account manager
  • PCI-DSS-compliant
  • Custom pricing for all businesses
  • Monthly fee: $10–$45
  • Processing fee:
    • Low-risk: 2%–3.1%
    • Mid-risk: 2.3%–3.4%
    • High-risk: 2.7%–4.3%
  • Virtual terminal: $15–$45 per month
Podium Payments logo.

Podium Payments: Best for patient engagement and lead management

Overall Score

4.27/5

Healthcare-specific tools

5/5

Pricing and features

3.57/5

User experience

3.98/5

Pros

  • Robust communication tools
  • AI-powered lead management platform
  • HIPAA-compliant

Cons

  • Higher cost
  • Limited customer support hours
  • Added fee for premium fraud protection

Why I chose Podium Payments

Podium is unique compared to other providers on this list. It is the only one mainly designed for patient engagement and lead management. It uses Stripe as its embedded payment processor which converts its robust communication tools and AI-powered lead management tools into a platform that seamlessly combines patient interactions and payment processing.

Aside from its text-to-pay capability, Podium also has Tap-to-Pay on mobile so you can turn your mobile phone into your card reader. It also allows installment payments through Affirm.

Despite higher costs and limited support hours, Podium’s secure payment processing and comprehensive engagement tools make it a top choice for healthcare providers aiming to improve patient experience and manage leads efficiently. Compared to Square and Stax, Podium’s emphasis on patient engagement provides an added layer of value.

  • HIPAA-compliant
  • Integrated messaging system
  • AI-powered lead management and conversion tools
  • Ability to request reviews from patients  
  • Accepts payments through Text-to-Pay, Tap-to-Pay on iPhone and Android, mobile app, card readers, invoicing, and recurring billing/subscription
  • Supports payments using credit and debit card, ACH, Apple Pay, Google Pay, and Affirm
  • Strong fraud protection 
  • Stored card payments
  • Automatic card-on-file payments
  • Has an option to allow tipping
PlanCoreProSignature
Monthly fee$399$599Custom
Text-to-pay2.6% + $0.302.55% + $0.302.55% + $0.30
In-person2.2% + $0.152.15% + $0.152.15% + $0.15
Manually entered2.9% + $0.302.9% + $0.302.9% + $0.30
Card-on-file2.6% + $0.302.55% + $0.302.55% + $0.30

Choosing the best healthcare payment solution for your business

Selecting the right healthcare payment processor is crucial for ensuring smooth, secure, and efficient transactions. The best choice depends on your specific needs, such as the volume of transactions, required integrations, and budget. If seamless EHR and PMS integration is essential, Chase Payment Solutions, with its InstaMed integration, could be the perfect fit. 

For comprehensive business tools and HIPAA compliance, Square stands out. Stax is ideal for large-volume transactions, while PaymentCloud caters to high-risk and telemedicine practices. Finally, Podium Payments is unparalleled in patient engagement and lead management. Consider these options carefully to find the solution that best supports your healthcare business needs.

Frequently asked questions (FAQs)

Any processes that involve the transmission or storage of protected health information need to be HIPAA-compliant. Payment processors that handle PHI must adhere to HIPAA standards to protect patient privacy and comply with the law. For pure payment processing that does not involve PHI, providers do not need to be HIPAA-compliant.

HIPAA regulates the protection of PHI within healthcare settings to ensure patient privacy and security, overseen by the U.S. Department of Health and Human Services (HHS). In contrast, PCI DSS sets standards for securing payment card data to prevent fraud and breaches, managed by the PCI Security Standards Council. HIPAA applies specifically to healthcare organizations handling PHI, while PCI DSS is relevant to any entity processing payment card information, each with distinct compliance requirements and enforcement mechanisms.

The penalties vary based on the severity and circumstances of the violation but can include fines ranging from $100 to $50,000 per violation, with a maximum annual penalty of $1.5 million per violation category. In addition to financial penalties, HIPAA violations can result in criminal charges in cases of deliberate negligence or intentional misuse of protected health information (PHI). Entities found to be in violation may also be required to implement corrective action plans to address deficiencies in their HIPAA compliance practices.

The post 5 Best Healthcare Payment Processing Solutions for 2024 appeared first on TechnologyAdvice.

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chase square logo stax paymentcloud podium payments chase chase integration Healthcare providers can easily accept online payments from patients through the Chase integration with InstaMed. (Source: InstaMed) chase tap to pay Chase’s Tap to Pay on iPhone allows healthcare merchants to accept in-person card payments with just an iPhone. (Source: Chase Payment Solutions) chase dashboard Chase offers complete business solutions and merchants can easily access all information on their dashboard. (Source: Chase Payment Solutions) square logo square hipaa Square is fully HIPAA-compliant and can be adapted for different types of healthcare practice. (Source: Square) square pos Square Point of Sale can be used for handling healthcare inventory and orders, setting appointments, and managing employees. square devices Square devices for taking in-person payments. (Source: Square) stax stax integration Stax integrates with Aesthetic Record EMR through Zapier. (Source: Zapier) stax dashboard The Stax dashboard provides access to reports, invoices, payment links, disputes, and customers, among others. (Source: Stax) stax hardware Stax offers a wide range of hardware options from SwipeSimple, Dejavoo, and Clover. (Source: Stax) paymentcloud paymentcloud checkout page PaymentCloud allows you to create a customized checkout page. (Source: PaymentCloud) paymentcloud chargeback management PaymentCloud offers comprehensive chargeback management to help prevent and manage disputes. (Source: PaymentCloud) paymentcloud dashboard PaymentCloud’s dashboard allows businesses to quickly see their sales, activity, tools, and analytics. (Source: PaymentCloud) podium payments podium payments messaging tool Podium Payments lets you take payments directly from the messaging tool. (Source: Podium) podium mobile app Accept payments using a card reader by connecting one to the Podium mobile app. (Source: Podium) podium transaction fees Transaction fees may be paid per day or deducted per month. (Source: Podium)
7 Best Nonprofit Payment Processing Tools in 2024 https://technologyadvice.com/blog/sales/best-nonprofit-payment-processing-tools/ Thu, 25 Jul 2024 12:55:41 +0000 https://technologyadvice.com/?p=127775 The best nonprofit payment processing tools should offer secure online transactions, low fees, and allow multiple donation methods.

The post 7 Best Nonprofit Payment Processing Tools in 2024 appeared first on TechnologyAdvice.

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At TechnologyAdvice, we assess a wide range of factors before selecting our top choices for a given category. To make our selections, we rely on our extensive research, product information, vendor websites, competitor research, and first-hand experience. We then consider what makes a solution best for customer-specific needs. 

For this list, we considered various credit card processing providers for mid- to large-sized nonprofit businesses and charities. We evaluated initial and on-going costs, discounted nonprofit rates, payment processing features, and nonprofit tools. Customer reviews, deposit speed, and customer support are also assessed in the selection process. 

TechnologyAdvice writers will often take advantage of free trials and demos to get a first-hand user experience of available solutions. Finally, we curate a comprehensive list based on the previously stated factors, ensuring readers have the necessary tools to make an informed decision.

We rely on an internal algorithm to calculate star ratings, which are based on many factors. Below is a breakdown of the categories I used to grade each platform. Each category also includes my expert score, which contributes to its overall score.

Pricing

Providers with no initial and ongoing costs and discounted rates for nonprofits received the highest scores. I also considered cancellation and chargeback fees.

Features

Some of the important features of a credit card processor that I considered in my rating are the availability of different payment methods, fundraising tools, and integrations. 

Support and reliability

Customer support is a crucial consideration when choosing a credit card payment processor. I also looked at security and system reliability, deposit speed, and security and PCI compliance.

User experience

The ease of user experience is an important consideration when choosing a payment solutions partner. I looked at the application process, contract terms, ease of use, and scalability.

User reviews

User reviews from third-party software platforms Capterra, G2, and Software Advice were included in the overall score. These review sites offer real-world experience from actual users and they were significant in bridging the gap between what providers present and what was delivered to their clients.

Choosing the best credit card processing for nonprofits can make a significant impact on fundraising efforts and donor satisfaction. This involves balancing cost-effectiveness, user-friendly features, and specialized tools tailored to the unique needs of nonprofits.

In this guide, we looked at the best nonprofit payment processing solutions and evaluated them based on pricing, features, support and reliability, user experience, and user reviews.

Based on our evaluation, here are the best nonprofit credit card processors for 2024:

  • Helcim: Best for transparent low-cost processing
  • Givebutter: Best for free nonprofit platform
  • Stripe: Best for technical flexibility and customization
  • PayPal: Best for global reach and donor familiarity
  • Square: Best for in-person donation and sales
  • iATS: Best for integrated nonprofit solutions
  • Donorbox: Best for flexibility of donation options
SPONSORED

Software Spotlight: PaymentCloud

Flexible payment processing for any business
  • 98% of applications are approved for a merchant account
  • Wide range of payment options – including no-cost (surcharging)
  • Month-to-month contract
  • No setup, application, or annual fees

Visit PaymentCloud

Best nonprofit payment processing providers compared

Providers

Our Score (out of 5)

Monthly Fee Starts At

Nonprofit Processing Rate

Deposit Speed

Helcim logo.

Helcim

4.32

$0

  • Interchange + 8% for online transactions
  • Interchange + 18% for in-person transactions
  • Visa and Mastercard Charity Interchange Rates apply for MCC 83981

1-2 business days

GiveButter logo.

Givebutter

4.30

$0

  • 2.9% + $0.30 for cards and digital wallets (donors have the option to cover this fee if Add tips is enabled)
  • 1.9% + $0.30 for ACH payments 
  • Additional platform fee if tips are disabled: 1%-5%

3-5 business days

Stripe logo.

Stripe

4.29

$0

  • 2.2% + $0.30 for businesses with 501(c)(3) status

Same-day to 2 business days

PayPal logo.

PayPal

4.29

$0

  • 1.99% + $0.49 for businesses with 501(c)(3) status

Same-day to 2 business days

Square logo.

Square

4.22

$0

  • 2.6% + $0.10 for in-person transactions
  • 2.9% + $0.30 for online transactions
  • 3.5% + $0.15 for keyed-in transactions

Same-day to 2 business days

4.12

Not disclosed

  • 2.49% to 3.2%

1-2 business days

Donorbox logo.

Donorbox

3.99

$0

  • 2.2% + $0.30 (Stripe)
  • 1.99% + $0.49 (PayPal)
  • Platform fee: 1.75%-2.95%

1-3 business days

1MCC 8398 is Merchant Category Code 8398, which card networks assign to charitable or social services organizations.

Helcim logo.

Helcim: Best for transparent low-cost processing

Overall Score

4.32/5

Pricing

4.75/5

Features

4.22/5

Support and reliability

3.75/5

User experience

4.69/5

User scores

4.2/5

Pros

  • Discounted interchange rates for qualified charities
  • Automatic volume discount
  • Option for donors to cover processing fee

Cons

  • No nonprofit platform discount
  • Limited integrations
  • No dedicated fundraising tools

Why Helcim is good for nonprofits

With zero monthly fees and interchange-plus pricing, Helcim stands out as one of the best payment processors for nonprofits. This pricing model ensures that nonprofit organizations benefit from lower Visa and Mastercard interchange fees if they qualify for the Merchant Category Code (MCC) 8398, designated for Charitable and Social Services Organizations. This can result in significant savings on transaction costs. However, regular interchange rates will apply to organizations not classified under MCC 8398.

Helcim offers automatic volume discounts, further reducing costs for high-volume transactions. Its adaptable tools, like the CRM system for managing donor information, surcharging to pass processing fees onto donors, and subscription management for recurring donations, are valuable for nonprofits. Despite lacking specific nonprofit discounts and dedicated fundraising tools, Helcim’s cost-effective and versatile features make it a top choice for nonprofits.

Payment methods

  • Credit and debit cards
  • ACH payments
  • Digital wallets (Apple Pay and Google Pay)

Ways to accept donations

  • Online donations: Easily add a “Donate” button to your website or create a single payment page for accepting donations and payments.
  • In-person: Accept donations using Helcim’s virtual terminal or card readers for face-to-face transactions.
  • Over the phone or email: Securely process donations via phone or email through Helcim’s virtual terminal.
  • Recurring donations: Manage and facilitate recurring donations seamlessly with Helcim’s subscription management feature.

Key features

  • No monthly fees: Helcim does not have setup, monthly, and cancellation fees, making it a budget-friendly option for nonprofits.
  • Interchange plus pricing: Transparent pricing structure allows nonprofits to avail of the lower network interchange fees for qualified nonprofits.
  • Automatic volume discounts: Nonprofits can enjoy additional savings as donation volumes increase.
  • Surcharging option: Option to pass processing fees onto donors.
  • CRM system: Efficiently manage donor information and relationships with Helcim’s integrated CRM system, enhancing engagement and retention.
  • Subscription management: Facilitate and manage recurring donations seamlessly, ensuring steady support for nonprofit activities.
  • Security and compliance: PCI-DSS compliance and advanced security features protect donor data, ensuring trust and reliability in donation processing.
  • Discounted Visa and Mastercard interchange fees for businesses with merchant category code 8398 (Charitable or Social Services Organizations):
    • Visa Canada 0.98% to 2.00%
    • MC Canada 0.92% to 1.80%
    • Visa US 0.65% + $0.15 to 1.35% + $0.05
    • MC US 1.45% + $0.15 to 2.00% + $0.10
Monthly Transaction VolumeOnline and Keyed-In Transaction RatesIn-Person Transaction Rates
$0–$50,000+ 0.50% + $0.25+ 0.40% + $0.08
$50,001–$100,000+ 0.45% + $0.25+ 0.35% + $0.08
$100,001–$500,000+ 0.35% + $0.25+ 0.25% + $0.08
$500,001–$1,000,000+ 0.25% + $0.25+ 0.20% + $0.08
$1,000,001 up+ 0.15% + $0.25+ 0.15% + $0.08
  • Hardware: $99–$329
GiveButter logo.

Givebutter: Best for free nonprofit platform

Overall Score

4.3/5

Pricing

4/5

Features

4.22/5

Support and reliability

4.06/5

User experience

4.38/5

User scores

4.83/5

Pros

  • Multiple fundraising tools
  • Free donor management system for tracking and engagement
  • Zero platform fees if tips are enabled

Cons

  • Dependence on donor tips
  • Limited in-person fundraising tools
  • Additional platform fee if tips are disabled

Why Givebutter is good for nonprofits

Nonprofits looking for a cost-effective platform dedicated to them will find Givebutter suitable and easy to use. Aside from using Helcim’s surcharging tool, this is the only provider on the list that offers the potential of zero platform fees with full nonprofit functionalities. Its extensive fundraising tools include donation forms, auctions, events, and other campaign types. 

Additionally, the built-in CRM system helps manage donor relationships efficiently and integrations with over 1,000 third-party apps enhance functionality. It also has real-time engagement tools like personalized emails and video messaging that boost donor interaction and support. Overall, Givebutter’s user-friendly and feature-rich platform makes it an excellent choice for nonprofits.

Payment methods

  • Credit and debit cards
  • ACH payments
  • Digital wallets (Apple Pay, Google Pay, Venmo, PayPal)
  • Donor-advised fund (DAF)

Ways to accept donations

  • Fundraising pages: Create your own fundraising pages with stories, photos, and videos to connect with donors and keep track of progress in real time.
  • Donation forms: Embed customizable donation forms on your website to make donating easy and gather important donor details.
  • Mobile app: Take donations on-the-go using the Givebutter mobile app, which supports Tap to Pay, so you can accept in-person payments even without a card reader.
  • Auctions: Host online auctions effortlessly with Givebutter’s tools, allowing supporters to bid on items from any device.
  • Events: Plan and organize fundraising events, sell tickets, and collect donations with Givebutter’s event management tools.
  • DAF donate button: Add a DAF donate button to your site, allowing donors to give directly from their donor-advised funds.

Key features

  • Built-in CRM: Manage donor relationships effectively with donor segmentation, contact management, donation tracking, and detailed reporting to optimize fundraising strategies.
  • Marketing and engagement tools: Engage donors with branded emails, text messages, and letters tailored to specific donor segments. Utilize built-in design tools from Canva, facilitate social sharing, and automate reminders and receipts to enhance donor communication and retention.
  • Integrations: Seamlessly connect with over 1,000 third-party applications through native integrations and Zapier automations. Utilize the API for custom integrations, ensuring flexibility and scalability in fundraising operations.
  • Fundraising widgets: Enhance fundraising campaigns with dynamic widgets like fundraising thermometers, progress bars, team pages, and ticket sales functionalities, empowering supporters to track and contribute to campaign goals effectively.
  • Donation matching: Maximize fundraising impact with donation matching capabilities, encouraging corporate and individual donors to double their contributions effectively.
  • Peer-to-peer fundraising: Empower supporters to fundraise on your behalf with peer-to-peer fundraising tools, enabling them to create personalized campaigns and mobilize their networks to support your cause.
  • Option to require fees: Have the option to require your donors to cover the processing fees.
  • Monthly fee: $0
  • Processing fee
    • 2.9% + $0.30 for cards and digital wallets (may be covered by donor via tips)
    • 1.9% + $0.30 for ACH payments
  • Additional platform fee
    • When tips are disabled
      • Form: 1%
      • Page: 3%
      • Event: 5%
      • Auction: 5%
    • When tips are enabled: $0
Stripe logo.

Stripe: Best for technical flexibility and customization

Overall Score

4.29/5

Pricing

4.5/5

Features

3.75/5

Support and reliability

4.38/5

User experience

4.38/5

User scores

4.47/5

Pros

  • Discounted processing rate for nonprofits
  • Robust developer tools and API
  • 24/7 customer support

Cons

  • No dedicated fundraising tools
  • Requires 80% of donations to be processed on Stripe
  • Nonprofit rate only applies to 501(c)(3) businesses

Why Stripe is good for nonprofits

Stripe is an excellent choice for nonprofits due to its discounted processing rate for 501(c)(3) organizations, which helps minimize costs, especially with its zero monthly fee. Its robust developer tools and API allow nonprofits to customize their payment solutions and integrate them seamlessly with their existing systems. 

The platform also offers 24/7 customer support, ensuring that any issues can be resolved promptly. Although it lacks dedicated fundraising tools, Stripe’s flexibility and powerful features make it a strong option for tech-savvy nonprofits seeking a tailored payment processing solution.

Payment methods

  • Credit and debit cards
  • ACH payments
  • Digital wallets (Amazon Pay, Apple Pay, Cash App Pay, Google Pay, Venmo, PayPal)

Ways to accept donations

  • Embedded payment pages: Create your payment form or checkout page that you can embed on your website or on a website hosted by Stripe and accessible by your donors through a payment link.
  • Invoices: You may use Stripe’s invoicing tool to send an invoice to collect donations. 
  • Recurring donations: Set up recurring donations with the use of Stripe’s recurring billing tool. 
  • In-person payments: Using Stripe Terminal API, you may accept in-person donations using a card reader or a mobile phone compatible with Stripe’s Tap to Pay feature.

Key features

  • No monthly fees: Stripe has no setup or monthly fees, so you only pay for what you use.
  • Flat-rate pricing: Enjoy transparent flat-rate pricing, with special discounts for 501(c)(3) nonprofits.
  • Easy integrations: Connect Stripe seamlessly with various platforms, making donations a breeze. 
  • Developer-friendly tools and powerful APIs: Customize your payment solutions with Stripe’s top-notch developer tools and APIs.
  • Fraud protection tools: Transactions and your donors’ information are kept safe with Stripe’s advanced fraud detection and prevention features.
  • 24/7 customer support: Get help whenever you need it with Stripe’s round-the-clock support.
  • International reach: Nonprofits outside of the U.S. may also use Stripe for their payment processing needs.
  • Monthly fee: $0
  • Processing rate: 2.2% + $0.30
  • Hardware: $0 to $249
PayPal logo.

PayPal: Best for global reach and donor familiarity

Overall Score

4.29/5

Pricing

4.5/5

Features

4.22/5

Support and reliability

3.44/5

User experience

4.69/5

User scores

4.6/5

Pros

  • Global reach
  • Donor familiarity
  • Discounted charity rates

Cons

  • Account holds
  • Limited fundraising tools
  • High currency conversion fee

Why PayPal is good for nonprofits

PayPal is a standout choice for nonprofits due to its global reach and donor familiarity. With zero monthly fees, nonprofits only pay per transaction, which helps manage costs effectively. It offers a discounted charity rate of 1.99% + $0.49 per transaction for 501(c)(3) organizations, helping to reduce processing costs. 

The familiarity of many donors with PayPal increases the likelihood of contributions. It supports multiple payment methods, including credit/debit cards, PayPal balance, and Venmo, providing flexibility for donors. The quick setup process allows nonprofits to start accepting donations swiftly, making it a convenient and efficient option for organizations of all sizes.

Payment methods

  • Credit and debit cards
  • Venmo

Ways to accept donations

  • Donate buttons: Add a simple, customizable donate button to your website or emails, making it easy for donors to contribute with just a click.
  • Donation pages: Create donation pages with options of letting your donors give fixed donation amounts or a custom amount of their choosing.
  • Campaign page: Create dedicated campaign pages to showcase your fundraising efforts, share your mission, and collect donations all in one place.
  • QR code: Generate a QR code for your campaign that donors can scan with their smartphones to quickly and easily make donations.
  • Invoice: Easily send invoices to donors for larger contributions or specific fundraising campaigns, providing a professional and organized payment process.
  • Payment links: Create and share payment links through social media, emails, or text messages to reach donors wherever they are.
  • Recurring donations: Allow supporters to set up automatic, recurring donations to provide ongoing support for your cause.
  • International payments: Expand your reach by accepting donations from supporters around the globe in multiple currencies.

Key features

  • No monthly fees: PayPal doesn’t charge any setup or monthly fees, so you only pay for the transactions you process.
  • Discounted charity rate: Special rate of 1.99% + $0.49 per transaction for 501(c)(3) organizations helps reduce costs.
  • Easy integrations: Seamlessly integrates with various platforms and fundraising tools, making it simple to add PayPal as a payment option.
  • Multiple payment methods: Accepts credit/debit cards, PayPal balance, and alternative payments like Venmo, offering donors flexibility.
  • Fraud protection tools: Advanced security features to protect your transactions and donor information.
  • 24/7 customer support: Round-the-clock support ensures help is available whenever you need it.
  • International reach: Accept donations from over 200 countries, making global fundraising a breeze for nonprofits.
  • Monthly fee: $0–$30
  • Virtual terminal monthly fee: $30
  • Processing rate for charities: 1.99% + $0.49
  • Zettle in-person rate: 2.29% + $0.09 
  • Venmo payments: 3.49% + $0.49
  • Hardware: $0 to $199
Square logo.

Square: Best for in-person donations and sales

Overall Score

4.22/5

Pricing

4/5

Features

4.06/5

Support and reliability

4.06/5

User experience

4.38/5

User scores

4.6/5

Pros

  • Flexible hardware options
  • Omnichannel capabilities
  • Easy set-up

Cons

  • No nonprofit discounts
  • Limited dedicated fundraising tools
  • Limited customer support

Why Square is good for nonprofits

Square is an excellent choice for nonprofits, especially those with a focus on in-person donations and sales. Its flexible hardware options, including contactless chip readers and POS systems, make it easy to accept payments at events or in physical locations. 

Its no monthly fees and easy setup help nonprofits get started without upfront costs. Robust reporting tools provide valuable insights into donations and sales, while omnichannel capabilities support both in-person and online transactions, offering nonprofits the flexibility they need to manage their funds effectively.

Payment methods

  • Credit and debit cards
  • Digital wallets (Apple Pay, Google Pay, Samsung Pay)
  • ACH payments

Ways to accept donations

  • Card readers: Use Square’s contactless chip readers and POS systems to accept credit and debit card donations at events or in-person fundraisers easily and securely.
  • Online: Set up an online store or donation page, enabling supporters to contribute through your website with just a few clicks.
  • Recurring donations: Allow donors to set up automatic, recurring contributions, providing a steady stream of support for your nonprofit.
  • Invoice: Send customized invoices to donors for larger contributions or specific fundraising initiatives, streamlining the donation process.
  • Virtual terminal: Accept donations over the phone or by mail with Square’s virtual terminal, offering flexibility for donors who prefer these methods.

Key features

  • No monthly fees: No setup or monthly fees mean you keep your costs low and manageable.
  • Flexible hardware options: Pick from a variety of cool hardware like contactless chip readers and POS systems to accept in-person donations effortlessly.
  • Omnichannel capabilities: Handle both in-person and online transactions smoothly, giving you flexibility in how you collect donations.
  • Robust reporting tools: Get detailed insights with Square’s analytics and reporting to track donations and sales easily.
  • Quick setup: Start accepting donations in no time with a super easy setup process.
  • Mobile payments: Accept donations on the go with Square’s mobile payment options, allowing you to securely process transactions anywhere using your smartphone or tablet.
  • Monthly fee: $0–$29
  • Virtual terminal monthly fee: $0
  • In-person processing rate: 2.6% + $0.10
  • Online processing rate: 2.9% + $0.30
  • Virtual terminal rate: 3.5% + $0.15
  • Invoices: 3.3% + $0.30
  • Hardware: $0 to $299
iATS logo.

iATS: Best for integrated nonprofit solutions

Overall Score

4.12/5

Pricing

4.5/5

Features

4.69/5

Support and reliability

3.44/5

User experience

3.75/5

User scores

4.23/5

Pros

  • Specialized nonprofit focus
  • Integrated solutions
  • Dedicated support

Cons

  • For nonprofits only
  • Limited customization
  • Fees are not disclosed

Why iATS is good for nonprofits

iATS is an excellent choice for nonprofits seeking integrated payment solutions tailored to their specific needs. With a specialized focus on nonprofits, iATS offers dedicated donation management and fundraising solutions. The platform seamlessly integrates with leading nonprofit management software, ensuring smooth data synchronization and simplifying administrative tasks. Additionally, iATS prioritizes donor data protection with robust security measures and PCI-DSS compliance, instilling trust among supporters.

Support for recurring donations is a key advantage, enabling nonprofits to manage predictable revenue streams for long-term sustainability. iATS also provides dedicated customer support that understands the unique challenges of nonprofit operations, offering knowledgeable assistance tailored to the sector’s needs.

Payment methods

  • Credit and debit cards
  • ACH payments

Ways to accept donations

  • Online donations: Easily set up a secure donation page on your website, allowing supporters to contribute directly online.
  • Recurring donations: Manage and process recurring donations to provide consistent support for your nonprofit.
  • Event payments: Collect payments for fundraising events, ticket sales, and auctions effortlessly.
  • Direct debit/ACH: Offer direct debit or ACH options for donors who prefer bank transfers.
  • Mobile payments: Accept donations on the go with mobile payment solutions, making it convenient for donors at events or in the field.

Key features

  • Nonprofit-focused: Specifically designed for nonprofits, offering various tools for fundraising.
  • Integrated CRM solutions: Easily sync with popular CRMs like Salesforce and Blackbaud, making donor management a breeze.
  • Secure payment processing: Enjoy top-notch security for safe and compliant transactions, keeping donor info protected.
  • Recurring donations management: Effortlessly set up and manage recurring donations for ongoing support.
  • Comprehensive support: Get help from a support team that understands nonprofit challenges.
  • Monthly fee: Not disclosed
  • Processing fee: Estimated to be around 2.4% to 3.2%
Donorbox logo.

Donorbox: Best for donor management

Overall Score

3.99/5

Pricing

4.5/5

Features

3.75/5

Support and reliability

2.81/5

User experience

4.06/5

User scores

4.8/5

Pros

  • Uses both Stripe and PayPal for payment processing
  • Donor control over donation frequency
  • Accepts stock or crypto donations

Cons

  • Has an additional platform fee
  • Pricing can be confusing
  • Can be expensive

Why Donorbox is good for nonprofits

Donorbox is ideal for small nonprofits looking for flexibility in payment processing. It uses both Stripe and PayPal/Venmo, giving better control over operating costs. Its donor management tool gives more control to its donors. Donors can easily log in and manage their settings and payment methods, providing a smooth and user-friendly experience. 

Its free plan is feature-rich and allows you to start accepting donations right away without any upfront costs. Its higher plan also accepts crypto or stock donations — something that other providers on this list don’t have.

Payment methods

  • Credit and debit cards
  • ACH payments
  • PayPal
  • Venmo
  • Cryptocurrency 
  • Stock donations

Ways to accept donations

  • Donation forms: Create and customize donation forms that can be embedded on your website. 
  • Text-to-give (text-to-pay): Enable donors to give via text message, making donations quick and convenient directly from their mobile devices.
  • Payment links/donation buttons: Generate unique payment links and buttons to include in emails, social media, or your website.
  • Crowdfunding: Set up crowdfunding pages to engage your community in specific fundraising campaigns, complete with progress tracking.
  • Event ticketing: Sell tickets for fundraising events directly through Donorbox, managing event registration and payments in one place.
  • Recurring donation/memberships: Allow supporters to set up recurring donations or memberships.
  • Peer-to-peer (Venmo): Accept peer-to-peer donations through Venmo.

Key features

  • No monthly fees: Start with Donorbox’s free plan, making it accessible for nonprofits of any size without initial costs.
  • Flexible payment processing: Works seamlessly with both Stripe and PayPal, giving you options to manage processing costs effectively.
  • User-friendly interface: Simplifies the donation process for both donors and administrators with its intuitive user interface.
  • Recurring donations: Allows you to set up and manage recurring donations easily.
  • Donor management tools: Robust tools allow donors to log in, manage their settings, and update payment methods effortlessly.
  • Customizable donation forms: Create forms that match your branding and embed them on your website.
  • Text-to-Give: Offer donors the convenience of contributing via text message, enhancing mobile donation capabilities.
  • Event ticketing: Sell and manage event tickets, streamlining the process for fundraising events.
  • Crowdfunding pages: Launch crowdfunding campaigns with ease, engaging your community and tracking progress.
  • Monthly fee:
    • Standard Plan: $0 per month
    • Pro Plan: $139 per month
    • Premium: Custom
  • Processing fee: 
    • Stripe: 2.2% + $0.30
    • PayPal: 1.99% + $0.49
    • ACH: 0.8% (capped at $5 pre transaction)
  • Platform fee:
    • Standard Plan: 1.75%-2.95% 
    • Pro Plan: 1.5% 
    • Premium: 1.5% 

What are nonprofit businesses?

Nonprofits exist to serve public or mutual benefits rather than to generate profits for owners. It is important to be categorized correctly as a nonprofit business because of several advantages it offers:

  • Tax exemptions: Nonprofits, especially those with 501(c)(3) status, often qualify for federal and state tax exemptions.
  • Eligibility for grants and donations: Only recognized nonprofits can receive certain grants and donations.
  • Public trust: Official status enhances credibility and attracts more supporters.
  • Discounted rates: Many service providers, including payment processors, offer discounted rates to nonprofits.

Nonprofit status, particularly 501(c)(3), and the Merchant Category Code (MCC) 8398 affect payment processing:

  • Discounted processing rates: Nonprofits often receive lower rates, reducing transaction costs. Stripe, PayPal, and Donorbox all offer lower processing rates for 501(c)(3) businesses, while Helcim passes on lower interchange rates for businesses with MCC 8398.
  • Waived fees: Set-up and monthly fees may be waived.
  • Favorable terms: More flexible contract terms are often available when negotiating custom plans and rates, like with iATS.

Which is the best nonprofit payment processing provider?

Selecting the best credit card processing provider for your nonprofit hinges on specific needs and operational goals. 

Helcim stands out for its transparent interchange-plus pricing and donor management tools, ideal for organizations prioritizing clear financial oversight. Givebutter provides a comprehensive nonprofit platform, potentially free for nonprofits if donors cover fees, offering customizable donation pages and event ticketing for effective supporter engagement. 

Stripe provides global accessibility and robust API integration, making it scalable for online payments. PayPal has a user-friendly interface and extensive user base, while Square offers excellent tools for in-person donations. IATS and Donorbox round out the options with specialized features for nonprofits, such as recurring donations and international payment capabilities.

Frequently asked questions (FAQs)

The best payment system for nonprofits depends on your needs. Platforms like Donorbox offer flexible payment options, while PayPal and Stripe are great for their global reach and robust tools. Helcim provides transparent low-cost processing, and Givebutter is excellent for its free nonprofit platform. Each system has its strengths, so choose one that aligns with your organization’s goals.

Yes, nonprofits typically pay credit card processing fees, although some platforms offer discounted rates. For example, PayPal and Stripe offer reduced fees for registered 501(c)(3) organizations. Additionally, the best nonprofit credit card processing platforms allow donors to cover these fees, potentially reducing costs for the nonprofit.

Yes, Square charges a fee for nonprofits, typically at the same rate as for-profit businesses. This includes a standard transaction fee for in-person, online, and keyed-in transactions.

The post 7 Best Nonprofit Payment Processing Tools in 2024 appeared first on TechnologyAdvice.

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helcim givebutter stripe paypal square logo iats donorbox helcim helcim payment page Helcim makes it easy to create a payment page without any programming required. Source: Helcim helcim customer manager Helcim’s Customer Manager serves as the donor relationship management tool. Source: Helcim helcim subscription manager Helcim’s Subscription Manager is suitable for creating and managing recurring donations. Source: Helcim helcim virtual terminal Helcim’s virtual terminal may be used for donations over the phone or email. Source: Helcim givebutter givebutter custom pages Create custom fundraising pages with various widgets. (Source: Givebutter) givebutter donation forms Nonprofits can create and share custom donation forms that give the option of recurring donations. (Source: Givebutter) givebutter software solution Givebutter is also a free auction software solution that lets you host online auctions for fundraising. (Source: Givebutter) stripe stripe dashboard It’s easy to start collecting donations from the Stripe dashboard. (Source: Stripe) stripe invoicing tool Stripe’s invoicing tool is easy to customize for donations. (Source: Stripe) stripe billing tool Stripe’s recurring billing tool may be used for recurring donations. (Source: Stripe) paypal paypal donation pages PayPal makes it easy to create donation pages with options for donors to cover the fees or make it recurring. (Source: PayPal) paypal campagin page maker PayPal’s campaign page maker lets you easily create and customize campaign pages. (Source: PayPal) square logo square website builder Square’s website builder has donation as a product type. (Source: Square) square donation page You can set custom donation amounts when setting up your donation page. (Source: Square) square pos The Square Register and Square Terminal are Square’s all-in-one POS solutions. (Source: Square) square card reader Square card readers that can be used at the counter or on the go. (Source: Square) iats iatf donation form Accept online donations with iATF’s donation form. (Source: iATS) iatf customer vault iATS has a customer vault where you can view all the details for each customer and set their default payment methods. (Source: iATS) donorbox donorbox donation settings Donorbox allows donors to log in and manage their donation settings and payment methods. (Source: Donorbox) donorbox dashboard You can create events and set up ticketing from the Donorbox dashboard. (Source: Donorbox) donorbox payment connect You can connect two payment processors to Donorbox: Stripe and PayPal. (Source: Donorbox)
7 Cheapest Credit Card Processing Providers for 2024 https://technologyadvice.com/blog/sales/cheapest-credit-card-processing/ Mon, 08 Jul 2024 17:47:46 +0000 https://technologyadvice.com/?p=126036 Discover the cheapest credit card processing services, including Helcim, Stax, and Square. Save on fees with our top picks.

The post 7 Cheapest Credit Card Processing Providers for 2024 appeared first on TechnologyAdvice.

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Finding the cheapest credit card processor is crucial for any business looking to maximize savings and efficiency. Aside from fixed monthly costs, processing fees can quickly add up, and choosing the least expensive credit card processing solution is essential to maintaining healthy profit margins. 

In this guide, we evaluated low-cost credit card processing companies in the market and scored them based on pricing, features, support and reliability, user experience, and user reviews. 

Based on our evaluation, here are the cheapest credit card processing providers for 2024:

  • Helcim: Cheapest overall
  • Stax: Best for large-volume businesses
  • Square: Best for new and small businesses
  • PayPal: Best as an additional payment method
  • Stripe: Best for online businesses
  • PaymentCloud: Best for high-risk businesses
  • CardX: Best for surcharging
SPONSORED

Software Spotlight: PaymentCloud

Flexible payment processing for any business
  • 98% of applications are approved for a merchant account
  • Wide range of payment options – including no-cost (surcharging)
  • Month-to-month contract
  • No setup, application, or annual fees

Visit PaymentCloud

Cheap credit card processing compared

Our Score (out of 5)

Monthly Fee Starts At

Processing Fee

Chargeback Fee

Deposit Speed

Helcim logo.

Helcim

4.23

$0


Interchange + (0.15% + $0.06 to 0.50% + $0.25)

$15 (refundable)

1-2 business days

Stax logo.

Stax

4.21

$99

Interchange + (8% to 18%)

$25 (non-refundable)

1-2 business days; Instant: with fee

Square logo.

Square

4.21

$0

2.5% + $0.10 to 3.5% + $0.15

$0 (waived up to $250)

1-2 business days; Instant: 1.75% fee

PayPal logo.

PayPal

4.11

$0

2.29% + $0.09 cents to 3.49% +$0. 49

$20 (non-refundable)

1-2 business days; Instant: 1.5% fee

Stripe logo.

Stripe

4.02

$0

2.7% + $0.05 to 3.4% + $0.30

$15 (non-refundable)

1-2 business days; Instant: 1.5% fee

PaymentCloud logo.

PaymentCloud

3.96

$10

2% to 4.3%

$25 (non-refundable)

1-2 business days

CardX logo.

CardX

3.99

$29

0%

$0

Next business day

At TechnologyAdvice, we assess a wide range of factors before selecting our top choices for a given category. To make our selections, we rely on our extensive research, product information, vendor websites, competitor research, and first-hand experience. We then consider what makes a solution best for customer-specific needs.

For this list, we considered the overall pricing and fees for mid- to large-sized businesses to process credit card payments. We evaluated initial and ongoing costs, as well as the different features and if there are additional fees to use them. Our selection process also assesses customer reviews, deposit speed, and customer support. 

TechnologyAdvice writers often take advantage of free trials and demos to get a first-hand user experience of available solutions. Finally, we curate a comprehensive list based on the previously stated factors, ensuring readers have the necessary tools to make an informed decision.

We rely on an internal algorithm to calculate star ratings, which are based on many factors. Below is a breakdown of the categories I used to grade each platform. Each category also includes my expert score, which contributes to its overall score.

Pricing

Providers with no setup costs, transparent pricing, and low processing fees received the highest scores. I also considered cancellation and chargeback fees and whether the provider offers volume discounts, which may matter for businesses processing larger transaction volumes every month. I also heavily considered the fee structures, awarding points to processors with either flat-rate, subscription, or interchange plus pricing. 

Features

Some of the important features of a credit card processor that I considered in my rating are the availability of different payment methods, hardware availability and costs, deposit speed, and reporting and analytics tools. 

Support and reliability

Customer support is a crucial consideration when choosing a credit card payment processor. I also considered security and system reliability, developer tools and customizability, chargeback protection, security and PCI compliance, and system reliability.

User experience

The ease of user experience is an important consideration when choosing a payment solutions partner. I looked at the application process, contract terms, ease of use, and scalability.

User reviews

User reviews from third-party software platforms Capterra, G2, and Software Advice were included in the overall score. These review sites offer real-world experience from actual users, and they were significant in bridging the gap between what providers present and what was delivered to their clients.

Helcim logo.

Helcim: Cheapest credit card processor

Overall Reviewer Score

4.23/5

Pricing

4.75/5

Features

4.25/5

Support and reliability

3.25/5

User experience

4.69/5

User scores

4.2/5

Pros

  • Interchange-plus pricing model
  • Automatic volume discount
  • Surcharging option

Cons

  • Limited integrations
  • Charges extra for Amex transactions
  • Only for businesses in US and Canada

Why I picked Helcim

Helcim’s fees are no fuss — no monthly, set-up, or cancellation fees. This means monthly credit card processing costs are limited to the payment processing fees. Aside from this, Helcim uses an interchange plus pricing structure, which often incurs lower costs compared to flat-rate or tiered pricing structures.

There is also an automatic volume discount, meaning the fees Helcim charges automatically decrease per transaction as you scale. This isn’t something we’ve seen elsewhere. Usually, volume discounts are by request only.

Helcim also has a surcharging option for passing on processing fees to customers, potentially further reducing expenses for businesses where surcharging is allowed.

When we simulated processing fees for certain total monthly volumes and average transaction values, Helcim has one of the cheapest total processing fees for a total monthly transaction volume of up to around $40,000. If your business processes higher total monthly amounts than this, Stax will be a cheaper option.

  • No monthly fees: No set-up, monthly, or cancellation fees, making it a cost-effective choice.
  • Interchange plus pricing: Transparent pricing structure, often leading to lower costs than flat-rate or tiered pricing.
  • Automatic volume discounts: Additional savings as your transaction volumes increase.
  • Surcharging option: Ability to pass processing fees onto customers, reducing business expenses.
  • Integrated payment solutions: Includes in-person, online, and mobile payment processing.
  • Comprehensive reporting: Detailed transaction and financial reports to help manage your business.
  • Customer management tools: Features like invoicing, recurring billing, and customer relationship management (CRM) tools.
  • Security and compliance: PCI-DSS compliance and advanced security features to protect sensitive data.
Monthly Transaction VolumeOnline and Keyed-In Transaction RatesIn-Person Transaction Rates
$0–$50,000+ 0.50% + $0.25+ 0.40% + $0.08
$50,001–$100,000+ 0.45% + $0.25+ 0.35% + $0.08
$100,001–$500,000+ 0.35% + $0.25+ 0.25% + $0.08
$500,001–$1,000,000+ 0.25% + $0.25+ 0.20% + $0.08
$1,000,001 up+ 0.15% + $0.25+ 0.15% + $0.08
  • Hardware: $99–$329
Stax logo.

Stax: Cheapest credit card processor for large-volume businesses

Overall Reviewer Score

4.21/5

Pricing

4.5/5

Features

3.75/5

Support and reliability

4.5/5

User experience

4.06/5

User scores

3.9/5

Pros

  • Interchange-plus pricing model
  • 24/7 customer support
  • Automatic updates for stored credit cards

Cons

  • Monthly fee starts at $99
  • Only for businesses in the US
  • Customization tools and ACH payments are add-ons

Why I picked Stax

Although Stax charges a distinctly higher monthly fee than other providers in this guide, it offers low interchange-plus transaction fees with no percentage markup. Even when factoring in the monthly fee, Stax offers the lowest credit card transaction fees for any business processing around $50,000 and above. This makes Stax particularly advantageous for businesses with higher transaction volumes, where the savings on transaction fees can quickly offset the monthly costs.

Additionally, Stax provides a range of value-added features, including robust analytics and reporting tools, seamless integration with various POS systems, and excellent customer support. With its transparent pricing model and complete credit card payment processing solution, Stax is a powerful option for high-volume businesses.

  • No percentage markup: Low interchange-plus transaction fees without any percentage markup, making it cost-effective for high-volume businesses.
  • Transparent pricing: Clear and straightforward pricing model, helping businesses understand their costs easily.
  • Robust analytics and reporting: Comprehensive tools for detailed financial and transaction reporting.
  • Seamless POS integration: Compatibility with various POS systems for smooth and efficient operations.
  • 24/7 customer support: Reliable and responsive customer service is available around the clock.
  • Recurring billing and invoicing: Convenient features for managing subscription services and regular billing cycles.
  • API access: Developer-friendly APIs for easy integration with existing business systems and applications.
  • Automatic update to stored credit cards: Ensures stored customer credit card information is kept current, reducing transaction declines and improving customer experience.
Monthly Transaction VolumeMonthly FeeCard-Present Transaction FeeCard-Not-Present Transaction Fee
Up to $150,000$99Interchange + $0.08Interchange + $0.18
$150,000-$250,000$139Interchange + $0.08Interchange + $0.18
$250,000 and above$199Interchange + $0.08Interchange + $0.18
  • Hardware: $49–$1,799
Square logo.

Square: Best for small and new businesses

Overall Reviewer Score

4.21/5

Pricing

4.25/5

Features

4.25/5

Support and reliability

3.5/5

User experience

4.38/5

User scores

4.67/5

Pros

  • No starting and ongoing fees
  • Instant approval
  • Free magstripe reader

Cons

  • Account stability issues
  • Expensive for monthly processing volume higher than $10,000
  • Limited customer support hours

Why I picked Square

For new and small businesses processing only up to around $10,000 or businesses with average transaction amounts of up to $50, Square is the best option for an all-in-one solution. 

Its flat-rate pricing simplifies payment processing, making it easy for businesses to predict and manage their monthly costs without dealing with complex interchange fees. Square’s transparent fee structure eliminates the guesswork, allowing for straightforward financial planning.

Square offers a comprehensive suite of tools, including point-of-sale (POS) systems, invoicing, and e-commerce capabilities, all seamlessly integrated into one platform. This integration streamlines operations, allowing businesses to efficiently manage sales, inventory, and customer data in one place. Additionally, Square provides robust analytics and reporting features, offering valuable insights to help businesses make informed decisions.

With no monthly fees, Square is an attractive option for businesses that seek flexibility without long-term commitments. Its user-friendly interface and excellent customer support ensure that even those new to payment processing can easily adopt and utilize its features. For small businesses looking for an affordable, all-in-one solution, Square is a suitable choice.

  • Flat-rate pricing: Simple and predictable pricing structure, ideal for businesses with low transaction volumes.
  • No monthly fees: No setup, monthly, or cancellation fees, providing flexibility without long-term commitments.
  • Integrated POS systems: Comprehensive point-of-sale solutions for in-person transactions.
  • E-commerce capabilities: Website builder to easily set up and manage online stores.
  • Invoicing: Convenient invoicing features for efficient billing and payment collection.
  • Robust analytics and reporting: Detailed insights and reports to help businesses make informed decisions.
  • Inventory management: Seamless integration to track and manage inventory in real-time.
  • Customer relationship management: Tools to track customer interactions and build loyalty.
  • Mobile payment options: Ability to accept payments on the go with mobile devices.
  • User-friendly interface and quick approval: Intuitive design and easy sign-up process that allows businesses to get started immediately.
PlanMonthly FeeIn-person Transaction FeeKeyed-in Transaction FeeOnline Transaction Fee
Square Online Free Plan$02.6% + $0.103.5% + $0.152.9% + $0.30
Square Online Plus Plan$292.6% + $0.103.5% + $0.152.9% + $0.30
Square Online Premium Plan$792.6% + $0.103.5% + $0.152.6% + $0.30
Square for Retail Plus Plan$602.5% + $0.103.5% + $0.152.9% + $0.30
  • Hardware: $0–$799
PayPal logo.

PayPal: Cheap additional payment method

Overall Reviewer Score

4.5/5

Pricing

3.75/5

Features

3.25/5

Support and reliability

4.25/5

User experience

4.69/5

User scores

4.6/5

Pros

  • Quick and easy sign-up and widely popular
  • Flat-rate pricing with no monthly fees
  • Easy integrations

Cons

  • Complicated pricing structure
  • Account stability issues
  • Add-on fees for virtual terminal

Why I picked PayPal

PayPal is an excellent choice for businesses looking to add a cost-effective, additional payment method. With its global recognition and trusted reputation, PayPal can help businesses increase customer trust and conversion rates. It does not charge any monthly fees and has no monthly minimum transaction volume.

PayPal is particularly beneficial for online transactions and international sales, offering a secure and familiar option for customers worldwide. Most ecommerce platforms and POS systems offer one-click PayPal integrations that make it easy for businesses to add PayPal as a payment option for their customers. The ease of integration with various e-commerce platforms and POS systems makes it a convenient addition to any existing payment processing setup. 

Additionally, PayPal’s robust security features and buyer protection policies benefit both businesses and customers. It also allows businesses to accept Venmo and PayPal Credit payments, which are not available through the other payment providers in this guide.

  • Global recognition: Trusted and widely used payment method, increasing customer confidence.
  • Flat-rate pricing: Simple and predictable fees, making cost management straightforward.
  • No setup or monthly fees: Cost-effective for businesses looking to add an additional payment option.
  • Ease of integration: Seamlessly integrates with various e-commerce platforms and POS systems.
  • Secure transactions: Advanced security measures and buyer protection policies to safeguard transactions.
  • International payments: Supports multiple currencies, making it ideal for businesses with global customers.
  • Customer convenience: Offers various payment methods, including credit cards, debit cards, PayPal balance, PayPal Credit, and Venmo.
  • Monthly fee: $0–$30
  • PayPal Zettle in-person transaction fee: 2.29% + $0.09
  • Online checkout transaction fee: 2.99% + $0.49
  • Keyed-in transaction fee: 3.49% + $0.09
  • Invoicing: 3.49% + $0.09
  • QR code payments: 2.29% + $0.09
  • Venmo payments: 3.49% + $0.49
  • Hardware: $0–$269

Find the complete list of PayPal Business fees.

Stripe logo.

Stripe: Best for online businesses

Overall Reviewer Score

4.02/5

Pricing

3.75/5

Features

3.25/5

Support and reliability

4.25/5

User experience

4.38/5

User scores

4.47/5

Pros

  • Quick instant sign-up
  • Robust developer tools and powerful APIs
  • Transparent pricing with no monthly fees

Cons

  • Requires integration for in-person payment processing
  • Account freezes

Why I picked Stripe

Stripe is the best choice for small online businesses. It offers a powerful and flexible payment processing solution. Its competitive, transparent pricing model makes it easy for businesses to predict and manage their costs. 

Stripe excels in online payment processing, with extensive developer tools and APIs that allow businesses to customize their payment solutions to fit their specific needs. This flexibility is ideal for small online businesses looking to scale and adapt quickly. Additionally, Stripe supports a wide range of payment methods and currencies, making it easier for businesses to cater to a global customer base.

In our estimates of monthly costs, Stripe landed with Square for businesses that process up to around $10,000 in total monthly transaction volume and around $50 in transaction amount. If your business processes higher monthly volumes or average transaction amounts, then Helcim could be a cheaper option. However, Stripe does offer custom pricing options, including interchange-plus and volume discount pricing, upon request.

  • Transparent pricing: Competitive, straightforward pricing with no hidden fees.
  • Developer-friendly tools: Extensive APIs and developer resources for custom payment solutions.
  • Seamless integration: Easily integrates with various e-commerce platforms and business applications.
  • Global payment support: Accepts a wide range of payment methods and currencies, ideal for international sales.
  • Advanced security: PCI-DSS compliance and advanced security measures to protect transactions.
  • 24/7 customer support: Reliable support to assist with any issues or questions.
  • Monthly fee: $0
  • Card-present transaction fee: 2.7% + $0.05
  • Online transaction fee: 2.9% + $0.30
  • Recurring payments: additional 0.5% per transaction
  • Invoicing: additional 0.4% per transaction
  • Hardware: $59–$249
PaymentCloud logo.

PaymentCloud: Best for high-risk business

Overall Reviewer Score

3.96/5

Pricing

3.5/5

Features

3.75/5

Support and reliability

4.75/5

User experience

4.69/5

User scores

4.47/5

Pros

  • Supports high-risk business
  • Free card reader
  • High approval rate

Cons

  • Pricing is not publicly disclosed
  • Longer application and approval process
  • Higher fees for high-risk businesses

Why I picked PaymentCloud

PaymentCloud is the best choice for high-risk businesses, offering specialized services and solutions tailored to these industries. None of the other providers included in this guide offer support for high-risk businesses, while PaymentCloud excels at navigating the complexities and challenges associated with high-risk payment processing.

The pricing is not readily available on the website, especially since actual processing rates depend on the business’s risk status. Despite the seeming lack of readily available fees, PaymentCloud’s range of rates is cost-effective, and it has a high approval rate for all kinds of businesses. Additionally, PaymentCloud’s expertise in fraud prevention and chargeback management helps high-risk businesses mitigate potential risks and protect their revenue.

Like most high-risk merchant account providers, the application and setup process can take longer than that for low-risk businesses. But PaymentCloud’s dedicated support team ensures that high-risk businesses receive personalized assistance throughout the application and set-up process.

  • Specialized high-risk services: Tailored solutions for businesses in high-risk industries.
  • Extensive experience: Proven track record in managing high-risk business accounts.
  • Fraud prevention and chargeback management: Tools and support to mitigate risks and protect revenue.
  • Competitive pricing: Wide range of rates but relatively cost-effective for high-risk businesses.
  • High approval rate: Strong approval rates for various high-risk business types.
  • Dedicated support team: Expert assistance to help navigate the complexities of high-risk payment processing.
  • Seamless integration: Easy integration with various e-commerce platforms and business applications.
  • Monthly fee: $10–$45
  • Low-risk transaction fee: 2%–3.1%
  • Mid-risk transaction fee: 2.3%–3.4%
  • High-risk transaction fee: 2.7%–4.3%
  • Virtual terminal fee: $15–$45 per month
  • Hardware: $0–$2,068
CardX logo.

CardX: Best for zero-cost credit card processing

Overall Reviewer Score

3.99/5

Pricing

4.38/5

Features

3.33/5

Support and reliability

4.25/5

User experience

4.69/5

User scores

3/5

Pros

  • Fully compliant automatic surcharging
  • No-cost credit card processing
  • Quick integration with ecommerce websites

Cons

  • Limited hardware options
  • Only available for businesses in specific locations
  • Higher monthly fees at higher monthly transaction volume

Why I picked CardX

If your business is located in one of the 48 states that CardX serves and you want free credit card payment processing, CardX is the best choice for zero-cost credit card processing. It offers businesses a unique solution to eliminate processing fees entirely by passing the processing costs to the customer through surcharges. This can significantly enhance profit margins, especially for businesses with high transaction volumes.

CardX provides a surcharging solution that’s fully compliant with all state and federal regulations to ensure that businesses can confidently implement this zero-cost solution. Businesses can also expect training and signage that will make it easier for them to implement surcharging for their business.

  • Zero-cost credit card processing: Eliminates credit card processing fees by passing costs to customers via surcharges.
  • Fully compliant: Adheres to all state and federal regulations for surcharging in 48 states plus the District of Columbia.
  • Transparent pricing: Clear and straightforward pricing model with no hidden fees.
  • Ecommerce integration: Easy-to-generate payment button that allows you to link a checkout page to your website.
  • Virtual terminal: Process credit card payments with zero cost through your virtual terminal. 
  • Billing and invoicing: Accept credit card payments with surcharging by creating and sending one-time or recurring invoices. 
  • Fraud protection: PCI-DSS compliance and robust security features to protect transactions.
Monthly Transaction VolumeMonthly Fee
$0–$120,000$29
$120,000–$250,000$69
$250,000–$500,000$99
$500,000–$1,000,000$199
  • Hardware: $375–$540

How to lower credit card processing fees

Lowering credit card processing fees is essential for maximizing your business’ profitability. Aside from looking for the cheapest credit card processors, there are effective strategies that will help you save on credit card processing fees.

Negotiate with providers

Discuss your rates with your payment processor to see if you can secure a better deal based on your transaction volume. While some processors, such as our cheapest option in this guide, Helcim, provide automatic volume discounts, other options, such as Stripe and Square, also offer volume discounts upon request. 

Additionally, if you receive a quote for a lower rate, ask your current processor if they’ll match it. 

Consider interchange-plus pricing

It’s no surprise that when considering just the monthly and credit card processing fees, the cheapest credit card processing options in this guide, Helcim and Stax, both offer interchange-plus pricing. This pricing model can often be more cost-effective than flat-rate or tiered pricing, especially for higher transaction volumes.

Reduce chargebacks

Aside from the chargeback fees that most processors charge, you will also lose revenue from sales and transaction fees, which are typically not returned to the business in the event of a chargeback. Implementing fraud prevention measures and choosing a provider with strong fraud protection tools will help minimize chargebacks.

Use surcharging

If it is legal in your state to pass on credit card fees to your customers and you are willing to have your customers shoulder the processing fees, choose a credit card processor that allows surcharging. While CardX offers a fully compliant surcharging program, other providers in this guide, such as Helcim, Stax, and Stripe, also allow surcharging.

Review your card processing fees regularly

As your business grows, regularly review your credit card processing fees. The cheapest credit card processor will often depend on your business volume. 

Based on the estimates we made for the providers in this guide, Stripe and Square offer the most cost-effective rates for small businesses with low monthly transaction volumes and whose typical transaction amount is just around $50 and below. If your business processes higher volumes and amounts than these, Helcim and Stax will be better options. 

Regularly reviewing your fees will allow you to determine whether it is time to switch to a different provider or re-negotiate with your current one.

Encourage other payment methods

The cheapest credit card processing is no processing at all. This means encouraging your customers to use other payment methods that will incur lower to no fees for you, such as cash payments or ACH payments.

Which is the cheapest?

Choosing the cheapest credit card processing provider depends on your business’s specific needs and transaction volumes. For businesses processing up to $10,000 monthly, Square and Stripe offer a cost-effective solution with no monthly fees and a flat-rate fee structure, while Helcim is ideal for those processing up to $40,000 monthly due to its transparent interchange-plus pricing with no monthly fees.

Stax is the most economical for high-volume businesses, providing low transaction fees without a percentage markup despite a higher monthly fee. If you need a zero-cost credit card processing option, CardX can help by passing processing fees to customers, significantly reducing expenses for businesses in states where surcharging is allowed.

Frequently Asked Questions (FAQ)

Helcim and Stax are among the credit card processors with the lowest rates. Helcim offers transparent interchange-plus pricing and no monthly fees, while Stax provides competitive rates and a subscription-based model that can be cost-effective for businesses with higher transaction volumes.

Zero-cost credit card processing is a payment model where the processing fees are passed on to the customer, meaning the business does not incur any fees for credit card transactions. Companies like CardX specialize in offering this service, allowing businesses to avoid paying traditional credit card processing fees.

Credit card processing fees typically range from 1.5% to 3.5% per transaction, depending on the payment processor and the type of card used. Some processors may also charge additional fees, such as monthly service charges or setup fees. It’s important to compare different providers to find the most cost-effective option for your business.

The post 7 Cheapest Credit Card Processing Providers for 2024 appeared first on TechnologyAdvice.

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helcim stax square logo paypal stripe paymentcloud cardx helcim-svg helcim card reader Helcim has a card reader, a smart terminal, and other point-of-sale hardware for in-person credit card processing. Source: Helcim helcim dashboard The Helcim dashboard allows users to view customers, products, integrations, and back-office tools. Source: Helcim helcim virtual terminal Helcim’s virtual terminal is free to use for Helcim customers (keyed-in card processing fees apply). Source: Helcim helcim chargeback dashboard Helcim’s chargeback dashboard allows businesses to easily see and manage all their chargebacks. Source: Helcim helcim business sales Helcim businesses can quickly view their sales when they login to their dashboard. Source: Helcim stax stax dashboard The Stax dashboard provides access to reports, invoices, payment links, disputes, and customers, among others. Source: Stax stax hardware Stax offers a wide range of hardware options from SwipeSimple, Dejavoo, and Clover. Source: Stax square sales square dashboard Users can see their sales, inventory, upcoming deposits, and customers through the Square dashboard. Source: Square deposit square dashboard Users can see all their deposits through the Square dashboard. Source: Square square chargeback Square does not have a chargeback fee and has a dispute dashboard to make it easy for businesses to manage chargebacks. Source: Square square register terminal The Square Register and Square Terminal are Square’s all-in-one POS solutions. Source: Square square cardreader Square card readers that can be used at the counter or on the go. Source: Square paypal paypal transaction dashboard PayPal users may easily view all their transactions from their dashboard. Source: PayPal paypal business tools PayPal Business offers other tools for business such as PayPal Checkout for accepting payments on a website, subscription plans, and insights on shoppers. Source: PayPal paypal checkout button PayPal Business users can easily integrate a PayPal button on their checkout page. Source: PayPal Business paypal zettle PayPal offers PayPal Zettle’s POS solutions for accepting in-store payments. Source: PayPal Stripe_Logo stripe onepage checkout Stripe allows businesses to easily create and customize a one-page checkout page. Source: Stripe stripe invoicing tool Stripe’s invoicing tool is easy to customize. Source: Stripe stripe hardware Stripe offers several hardware options for in-person payment processing. Source: Stripe paymentcloud paymentcloud checkout page PaymentCloud allows you to create a customized checkout page. Source: PaymentCloud paymentcloud chargeback PaymentCloud offers comprehensive chargeback management to help prevent and manage disputes. Source: PaymentCloud paymentcloud dashboard PaymentCloud’s dashboard allows businesses to quickly see their sales, activity, tools, and analytics. Source PaymentCloud cardx cardx lightbox CardX allows you to add a Lightbox payment button to your website. Source: CardX cardx receipts CardX receipts clearly show the credit card fee passed on to the customer. Source: CardX cardx fraud protection CardX’s fraud protection tools allow businesses to set AVS and CVV settings. Source: CardX
Top 6 Stripe Alternatives 2024 https://technologyadvice.com/blog/sales/stripe-alternatives/ Wed, 06 Mar 2024 20:00:40 +0000 https://technologyadvice.com/?p=119574 Need a credit card processing solution but don't want to use Stripe? See our list of top Stripe alternatives that are powerful, easy to use, and affordable.

The post Top 6 Stripe Alternatives 2024 appeared first on TechnologyAdvice.

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At TechnologyAdvice, we assess a wide range of factors before selecting our top choices for a given category. To make our selections, we rely on our extensive research, product information, vendor websites, competitor research, and first-hand experience. We then consider what makes a solution best for customer-specific needs. 

By defining business needs, we can determine the essential features organizations in various sectors require, and select platforms that will cover all bases. For this list, we considered what would be essential for ecommerce businesses and online entrepreneurs. Reputable providers known for their ease of use and customer satisfaction are added to our compilation list for further analysis. We then evaluate each solution on the list based on the features they offer, considering the platform’s usability, integration capabilities, customization options, mobile access, and any other relevant functionalities. 

Price plans, hidden fees, customer reviews, and customer support are also assessed in the selection process. TechnologyAdvice writers will often take advantage of free trials and demos to get a first-hand user experience of available solutions. Finally, we curate a comprehensive list based on the previously stated factors, ensuring readers have the necessary tools to make an informed decision.

We rely on an internal algorithm to calculate star ratings, which are based on many factors.  

My research focused on your top-of-mind concerns for digital businesses like price, core and advanced features, security, ease of use, and user experience. Below is a breakdown of the categories I used to grade each platform. Each category also includes my expert score, which contributes to its overall score.

​​As the market changes, we reevaluate our choices so you always receive the best insight for your purchasing decision.

Pricing

Providers with no setup costs, transparent pricing, and low processing fees received the highest scores. I also considered ongoing costs and hardware costs, which may matter for businesses looking for an omnichannel solution.

Hardware

Although I mainly evaluated these providers for ecommerce businesses and online entrepreneurs, I also looked at hardware options for each provider since some of these businesses looking for Stripe alternatives do so for easier in-person payment processing with their online payment solution. Among the factors I considered are durability, ease of setup, and design of the devices.

Features

Some of the important features of an online payment processor that I considered in my rating are the availability of different payment methods, ecommerce integrations, chargeback management, and developer tools. 

Support and Reliability

Customer support is a crucial consideration when choosing an online payment processor especially for online businesses. I also looked at security and system reliability which is equally important when running a digital business.

User Experience

The ease of user experience, from signup and onboarding to growing their ecommerce business, is an important consideration when choosing a payment solutions partner. I looked at the application process, contract terms, ease of use, and scalability.

User Reviews

User reviews from third-party software platforms Capterra, G2, and Software Advice were included in the overall score. These review sites offer real-world experience from actual users and they were significant in bridging the gap between what providers present and what was delivered to their clients.

Stripe is a popular online payment processor because of its ability to accept a wide range of payment methods, its top-notch security features, and its customizability. However, online businesses looking for an ecommerce payment processor may look for Stripe alternatives that are easy to use, are competitively priced, and offer seamless in-person payment processing.

Our team compiled a list of some of the top Stripe alternatives for ecommerce businesses and looked at their pricing, features, ease of integration, security, and customer support quality. Here are our top 6 picks: 

SPONSORED

Software Spotlight: Helcim

Want to reduce – or eliminate – processing fees?

In addition to free cloud POS software, Helcim offers some of the lowest payment processing fees on the market. With Helcim, you’ll get:

  • Free POS software and low, interchange-plus pricing
  • Options to pass processing fees on to your customers
  • Dedicated merchant account with greater security and stability

Visit Helcim

Top alternatives to Stripe in 2024

Although Stripe is an excellent payment processor for online businesses, it may not be the best option for those needing a “plug-and-play” option or an easy-to-use point-of-sale (POS) system. Here are some of our top Stripe alternatives:

Provider

Starting Price per Month

Online Transaction Fee

Ecommerce Tools

Customer Support

Square logo.

Square

$0

2.9% + 30 cents

Website builder, payment links, ecommerce platform integrations, virtual terminal

Extended business hours

Shopify POS logo.

Shopify

$5

2.9% + 30 cents

Shopify store

24/7 chat, email, phone

Helcim logo.

Helcim

$0

Interchange plus 0.15% + 15 cents to 0.50% + 25 cents

Website builder, payment links, ecommerce platform integrations, virtual terminal

Extended business hours

PayPal logo.

PayPal

$0

2.99% + 49 cents

PayPal Checkout integration, one-click integrations, virtual terminal

Extended business hours

PaymentCloud logo.

PaymentCloud

$10

2% to 4.3%

Ecommerce platform integration, payment links, virtual terminal

Monday to Friday, 7 a.m. to 6 p.m. Pacific time

CardX logo.

CardX

$29

Credit card: 0%

Debit card: Starts at 2.91%

Website integration

Business hours

Square: Best overall Stripe alternative


Pros

  • No monthly fees
  • Omnichannel payment processing tools
  • Easy to set up

Cons

  • Does not support high-risk merchants
  • Available only to merchants in limited countries
  • Can be costly for high-volume businesses
Square logo.

Our Rating: 4.28/5

  • Seamless omnichannel payment solution: Square’s strongest feature is its omnichannel capability, which makes it easy and convenient for businesses that sell online and at physical locations. Both online and in-store systems sync, making it easy to track sales, inventories, and transactions.
  • Free basic plan: Whether you need an online payment solution or a physical POS system, you can start and use Square with zero costs. The Square Online website builder is free to use, there is a free magstripe reader, and it supports Tap to Pay on iPhone and Android devices. These inclusions mean you can start accepting payments without upfront payment.
  • Add-on tools to scale up: While Square makes it easy for startups and small businesses to start accepting payments, it also provides growing businesses with various tools and options for scaling up. Aside from the free POS software and website builder, it also comes with free invoicing, a virtual terminal, social selling, and a team management system. Businesses may also create a loyalty program for their customers, offer subscription plans, and sell gift cards.

Square Online PlansFree PlanPlus PlanPremium Plan
Monthly Fee$0$29$79
Online Transaction Fee2.9% + 30 cents2.9% + 30 cents2.6% + 30 cents
Keyed-in Transaction Fee3.5% + 15 cents3.5% + 15 cents3.5% + 15 cents
In-person Transaction Fee2.6% + 10 cents2.6% + 10 cents2.6% + 10 cents

Square stands out for its ability to effortlessly integrate online and in-store payment processing, letting businesses manage transactions and inventory across multiple channels. This comprehensive approach ensures a smooth and unified customer experience, regardless of where the purchases take place.

Square’s pricing structure, with no monthly fees for basic services and free essential tools like the Square Online website builder, appeals to businesses of all sizes, particularly startups and small enterprises. With customizable solutions such as invoicing and social selling, Square caters to the evolving needs of growing businesses.

In addition to its user-friendly setup and integration process, Square’s intuitive interface makes it accessible to businesses with limited technical expertise. Businesses can easily adopt Square’s payment solutions and begin accepting payments. 

Square Online is an excellent option for startups that need an easy and quick website, and bigger ecommerce businesses may also use Square for their websites hosted on other platforms such as WooCommerce, Ecwid, BigCommerce, and Magento. Overall, Square’s omnichannel capabilities, transparent pricing, scalability, and ease of use make it an outstanding choice for ecommerce businesses seeking a reliable alternative to Stripe.

Pricing: 4.25/5

Hardware: 4.5/5

Features: 4.17/5

Support and reliability: 3.75/5

User experience: 4.38/5

User scores: 4.67/5

Square Payments is a complete payment processing platform that enables businesses to accept various forms of payments through several channels—inperson, online, and mobile. Square provides hardware like card readers and terminals, as well as software solutions for POS systems and online payment processing. Square’s zero initial cost makes it a viable and attractive option even for startups, and it also offers easy integration with many popular ecommerce platforms for larger online businesses. 

As a Stripe alternative, Square Payments offers several comparable features and functionalities. Both platforms let businesses accept payments easily and securely, with transparent pricing structures and straightforward setup processes. Square Payments may appeal to businesses seeking a simple all-in-one solution, as it integrates hardware and software seamlessly. Online businesses that also need in-person payment processing capabilities will find Square’s user-friendly POS systems highly suitable. Moreover, Square Payments is designed to adapt and grow alongside businesses, providing scalability and flexibility to accommodate changing demands.

Shopify Payments: Best for Shopify websites


Pros

  • Full integration with Shopify platform
  • No Shopify Payments transaction fee for higher Shopify plans (card transaction fee still applies)
  • Powered by Stripe

Cons

  • Only available on Shopify
  • Requires at least a Shopify Basic plan for waived transaction fee
  • Reports of frozen and held funds
Shopify Payments logo.

Our Rating: 4.16/5

  • Waived transaction fees: If you are already using Shopify as your ecommerce platform, switching to Shopify Payments gives you the advantage of waived transaction fees (which range from 0.5% to 2% when using third-party payment processors). Powered by Stripe, Shopify Payments gives you the same reliability and security—without the additional cost. 
  • Hardware for in-person selling: Like Square, Shopify Payments offers seamless omnichannel selling through its available POS devices. 
  • 24/7 customer support: Among Shopify’s strongest features is its 24/7 customer support, which extends to any issues or concerns specific to Shopify Payments.

Shopify PlanStarterBasicShopifyAdvanced
Monthly Fee$5$39$105$399
Online Transaction Fee2.9% + 30 cents2.9% + 30 cents2.6% + 30 cents2.4% + 30 cents
In-Person Transaction FeeN/A2.7%2.5%2.4%
Waived Shopify Transaction FeeN/A2%1%0.5%

We chose Shopify Payments as the top choice for Shopify websites due to its seamless integration with the platform and cost-effectiveness. Its full integration simplifies operations, eliminating the need for third-party processors and ensuring compatibility with other Shopify tools. 

Additionally, with no additional transaction fees for most Shopify plans and the elimination of Shopify’s add-on fees, businesses can save on processing costs while benefiting from Stripe’s reliable infrastructure. The availability of 24/7 customer support makes it even more suitable as a Stripe alternative for Shopify websites.

Pricing: 3.5/5

Hardware: 4.25/5

Features: 4.17/5

Support and reliability: 4.17/5

User experience: 4.38/5

User scores: 4.50/5

Shopify Payments is an integrated payment processing solution offered by the ecommerce platform Shopify. Businesses can accept credit card payments directly through their Shopify stores without needing to set up a separate payment gateway. With Shopify Payments, sellers can manage their entire online business, from product listings to order management and payment processing, all within the Shopify dashboard.

As a Stripe alternative, Shopify Payments offers several advantages. Firstly, it provides a seamless integration with Shopify’s platform, eliminating the need for third-party plugins or additional setup. This reduces complexity and potential technical issues throughout the process. 

Additionally, Shopify Payments offers competitive pricing, often matching or even undercutting Stripe’s fees, especially for users who are already leveraging Shopify’s services. Moreover, Shopify Payments provides unified support and assistance, letting sellers resolve payment-related issues without having to coordinate between multiple service providers.

Overall, Shopify Payments presents a robust and user-friendly alternative to Stripe for merchants operating within the Shopify ecosystem. Its simplicity, and competitive pricing make it an attractive option for businesses looking for a hassle-free payment processing solution tightly integrated with their Shopify ecommerce operations.

Helcim: Best for interchange pricing


Pros

  • Interchange-plus pricing
  • Automatic volume discount
  • No monthly fees and minimum contract length

Cons

  • Limited integrations
  • Higher fee for AMEX cards

Our Rating: 4.13/5

  • Interchange-plus rates with automatic volume discounts: Helcim’s processing rates are among the cheapest processing rates on this list. Besides offering interchange-plus rates instead of flat rates, it also offers automatic volume discounts depending on your monthly transaction volume.
  • Option to pass on credit card fees to customers: The Helcim Fee Saver is a feature that Helcim merchants can choose to turn on. This tool lets merchants pass on the credit card fees to their customers, a practice called surcharging.
  • Customer management portal: Helcim’s customer management portal is robust and does not incur any additional fees. It helps to effectively manage customer lists and track profiles and transaction history.

Monthly Transaction VolumeOnline and Keyed-In Transaction RatesIn-Person Transaction Rates
$0–$50,000+ 0.50% + 25 cents+ 0.40% + 8 cents
$50,001–$100,000+ 0.45% + 25 cents+ 0.35% + 8 cents
$100,001–$500,000+ 0.35% + 25 cents+ 0.25% + 8 cents
$500,001–$1,000,000+ 0.25% + 25 cents+ 0.20% + 8 cents
$1,000,001 up+ 0.15% + 25 cents+ 0.15% + 8 cents

We chose Helcim as a Stripe alternative due to its competitive rates and transparent features. Its interchange-plus pricing model offers direct pass-through of fees without markups, while automatic volume discounts further optimize costs as businesses grow. 

Helcim matches Stripe when it comes to the number of different ways ecommerce businesses can accept payments. Online businesses may key in payment information on a virtual terminal, create a hosted payment page, add a buy button to their checkout page simply by pasting a code, send an invoice with a “Pay Now” button, or set up recurring payment plans. 

Additionally, Helcim’s Fee Saver facilitates surcharging, potentially reducing processing costs. With a robust customer management portal included at no extra cost, Helcim provides effective tools for tracking transactions and managing customer profiles. Despite limitations in integrations and potential higher costs for low-volume or AMEX transactions, Helcim is a solid Stripe alternative for businesses prioritizing cost-effectiveness and transparency.

Pricing: 4.75/5

Hardware: 4/5

Features: 3.75/5

Support and reliability: 3.75/5

User experience: 4.38/5

User scores: 4.17/5

Helcim offers a robust payment processing solution for all kinds of businesses. It provides a range of features including payment gateways, virtual terminals, and POS solutions. Helcim distinguishes itself by offering transparent pricing with interchange-plus pricing models and automatic volume discounts, meaning businesses pay the actual interchange fees set by card networks plus a small markup rather than flat rates. This can potentially result in lower costs for businesses processing a high volume of transactions.

Compared to Stripe, Helcim offers similar functionalities but with focus on a more competitive pricing structure. While Stripe is widely popular for its developer-friendly APIs and extensive integrations, Helcim appeals to businesses looking for straightforward payment solutions with lower processing fees.

Like Stripe, Helcim is known for its strong commitment to security and compliance, offering features like tokenization and Payment Card Industry (PCI) compliance to ensure the safety of transactions. Overall, businesses considering Helcim as a Stripe alternative may find its cost-efficiency and simplicity in their payment processing solutions appealing.

PayPal: Best for easy integration


Pros

  • Widely available and easy online checkout integration
  • Well-known and trusted by consumers
  • Easy to use

Cons

  • Complicated pricing structure
  • Extra fee for virtual terminal
  • Account holds
PayPal logo.

Our Rating: 4.12/5

  • Wide and easy integration: PayPal is simple and easy to use, and the best part is it provides integration with almost any online platform. Many ecommerce platforms already offer a one-click PayPal integration—with this feature, you only need to provide your PayPal account details and toggle it on to make it an available payment method on your website. 
  • Cryptocurrency payment processing: PayPal is one of two providers on this list that offers cryptocurrency payment processing. Online businesses that want to accept cryptocurrencies will find PayPal an easy and suitable payment processor option.
  • Buy Now, Pay Later (BNPL) options: PayPal is the only provider on this list that offers a native buy now, pay later option. The other providers that have this option, including Stripe, partner with BNPL apps.

  • Online transaction fee: 2.99% + 49 cents
  • PayPal Checkout transaction fee: 3.49% + 49 cents
  • In-person transaction fee: 2.29% + 9 cents   

Find the complete list of PayPal business fees.

PayPal comes out as a top alternative to Stripe in our evaluation for its unmatched ease of integration and widespread consumer trust. Its seamless online checkout integration simplifies the payment process across various platforms, making it appealing for both merchants and customers. PayPal’s popularity instills confidence in buyers, driving higher conversion rates and increased sales. 

Despite its complex pricing structure and additional fees for services like virtual terminals, PayPal offers unique features such as cryptocurrency payment processing and BNPL options, enhancing flexibility for businesses. PayPal’s simplicity, consumer trust, and innovative features make it an excellent choice for businesses seeking a reliable Stripe alternative.

Pricing: 4.25/5

Hardware: 4/5

Features: 4.17/5

Support and reliability: 3.33/5

User experience: 4.38/5

User scores: 4.60/5

PayPal is a digital payment platform that allows users to send and receive money securely online. It helps businesses manage their finances, accept payments, and facilitate transactions. 

It offers various features such as invoicing, payment processing, customizable checkout options, and business analytics. With PayPal Business, merchants can accept payments from customers globally through multiple channels, including credit/debit cards, PayPal accounts, and more.

As a Stripe alternative, PayPal Business provides similar functionalities in terms of payment processing and online transactions. Both platforms offer easy integration into websites and applications, allowing businesses to accept payments seamlessly. However, PayPal is more widely recognized, which may provide a sense of trust and familiarity to customers.

PaymentCloud: Best for high-risk merchants


Pros

  • Accepts high-risk merchants
  • High approval rate
  • Offers cryptocurrency payment processing

Cons

  • Longer application and approval process
  • Extra fee for virtual terminal
  • Pricing is not publicly disclosed
PaymentCloud logo.

Our Rating: 3.31/5

  • High-risk merchant support: PaymentCloud is one of the top payment service providers for high-risk merchants. If your business is in the medium- and high-risk industries, you will not be accepted by most payment processors, including Stripe. PaymentCloud, on the other hand, supports businesses in these industries with a high approval rate.
  • Cryptocurrency payment processing: Aside from supporting high-risk merchants, another uncommon feature with PaymentCloud is its cryptocurrency payment processing. Businesses that would like a Bitcoin checkout option for Bitcoin and other cryptocurrencies such as Ethereum, Litecoin, Tether, and XRP will find PaymentCloud a suitable option. 
  • Chargeback and fraud protection: PaymentCloud puts heavy importance on chargeback and fraud protection, especially since it caters to high-risk businesses. It has partnered with a specialized chargeback protection provider to help detect, track, and resolve disputes.

PaymentCloud rates depend on the risk assessment of your business. High-risk merchants are assigned higher rates than mid- and low-risk businesses.

  • Monthly fee: $10–$45
  • Low-risk transaction fee: 2%–3.1%
  • Mid-risk transaction fee: 2.3%–3.4%
  • High-risk transaction fee: 2.7%–4.3%
  • Virtual terminal fee: $15–$45 per month

For high-risk merchants looking for a Stripe alternative, PaymentCloud is a suitable choice. With its high approval rate for businesses in medium- and high-risk industries, PaymentCloud offers a lifeline where other processors, including Stripe, may decline. 

It offers flexible payment processing with its wide array of payment methods, including its support for cryptocurrency payment processing. PaymentCloud’s commitment to chargeback and fraud protection further solidifies its reliability for high-risk merchants, making it the preferred choice despite a longer application process and undisclosed pricing.

Pricing: 3.75/5

Hardware: 3.5/5

Features: 3.54/5

Support and reliability: 3.75/5

User experience: 3.75/5

User scores: 1.57/5

PaymentCloud is a payment processing solution designed for high-risk businesses, offering services like credit card processing, ACH processing, and e-check processing. It caters to industries such as CBD, vape, adult entertainment, and other businesses typically considered high-risk by traditional payment processors. PaymentCloud provides specialized solutions tailored to the needs of these industries, including fraud prevention tools and chargeback management.

As a Stripe alternative, PaymentCloud distinguishes itself primarily by its willingness to work with high-risk businesses that may struggle to get approved by Stripe or to secure payment processing services elsewhere. 

While Stripe is a popular choice for many businesses due to its user-friendly interface, extensive features, and wide range of integrations, it may not be suitable for industries considered high-risk. PaymentCloud fills this gap by offering reliable payment processing solutions with an emphasis on industries facing challenges in obtaining payment services.

CardX: Best for zero credit card processing


Pros

  • Auto surcharging
  • Fully compliant credit surcharging
  • Auto-detection of debit and credit cards

Cons

  • Limited POS integrations
  • Does not accept cross-border payments
  • Underwriting requires at least $5,000 in monthly sales
CardX logo.

Our Rating: 3.27/5

  • Auto surcharging: CardX offers auto surcharging, which allows businesses to pass on the transaction fees for credit card payments to their customers, in 48 states and the District of Columbia. 
  • Fully compliant with federal and local regulations: Businesses will need to register with card brands and comply with requirements set by these brands to pass on fees. CardX makes surcharging easy for businesses completing the registration on behalf of businesses and making sure their payment solution is compliant with relevant rules and regulations.
  • Merchant training: Since surcharging is different from the usual card payment processing, CardX offers a merchant training session to make sure you and your employees learn the system as well as the required protocols for surcharging.

  • Virtual terminal+Online credit card processing: Starts at $29/month
  • In-person credit card processing: Starts at $35/month
  • Debit card processing: Starts at 2.91%/transaction

If you’re looking to save on credit card processing fees, consider passing on the fees to your customers. We selected CardX as a Stripe alternative for businesses seeking zero credit card processing due to its innovative features and compliance with surcharging regulations. 

It offers auto surcharging and is fully compliant with federal and local regulations, enabling merchants to pass on credit card transaction fees seamlessly. Unlike Stripe, which does not have a compliant surcharging capability, CardX prioritizes compliance and offers streamlined registration processes. Comparatively, Helcim also offers surcharging but it is not a fully compliant out-of-the-box surcharging solution. Helcim leaves some requirements such as proper disclosures and signage up to the merchant. 

Businesses using CardX may accept payments through a virtual terminal, on their website through a Lightbox integration, or in-store using Dejavoo card readers. Additionally, CardX provides merchant training sessions for smooth implementation. 

Despite limitations in POS integrations and cross-border payments, Helcim’s focus on zero credit card processing and compliance makes it a suitable choice for online businesses looking to save on transaction fees.

Pricing: 4.25/5

Hardware: 3/5

Features: 4.17/5

Support and reliability: 4.17/5

User experience: 4.06/5

User scores: 0/5 (There are no user reviews for CardX on the review sites we considered.)

CardX is a payment processing solution designed to help businesses accept credit card payments and pass on credit card processing fees to customers. This approach aims to help businesses save on processing costs by shifting the burden of fees to the cardholder. Additionally, CardX emphasizes compliance with regulations surrounding credit card surcharging, ensuring that businesses can implement surcharges legally and transparently.

Compared to Stripe, CardX offers a distinct approach to pricing and fee management. While Stripe typically charges businesses a percentage of each transaction along with a flat fee, CardX’s model allows businesses to potentially save on processing costs by passing fees directly to customers.

Its range of payment processing solutions includes in-person payment processing for accepting card payments at physical locations, use of a virtual terminal for processing payments over the phone or mail, and online for integrating a payment solution into ecommerce platforms or websites.

Still not seeing the right solution for your business? Check out our full Retail POS Software Buyer’s Guide for more solutions.

TechnologyAdvice is able to offer our services for free because some vendors may pay us for web traffic or other sales opportunities. Our mission is to help technology buyers make better purchasing decisions, so we provide you with information for all vendors — even those that don’t pay us.

Featured Partners: POS

FAQ

Based on a Statista report, as of December 2023, PayPal has the biggest market share of online payment processing worldwide with 40.52%, followed by Stripe with 20.52%.

Stripe is often favored by developers for its flexibility and robust API, making it a preferred choice for businesses seeking customization and integration options. PayPal, on the other hand, offers a user-friendly interface and broader consumer recognition, making it easier for non-technical users to set up. Ultimately, the choice between the two depends on your specific needs, technical expertise, and preference for ease of use versus customization.

Both PayPal and Stripe prioritize security and offer robust measures such as encryption, fraud detection, and compliance with industry standards. Both platforms are generally considered secure and trusted by many businesses worldwide.

The post Top 6 Stripe Alternatives 2024 appeared first on TechnologyAdvice.

]]> square logo shopify pos helcim paypal paymentcloud cardx square Square dashboard Users can see their sales, inventory, upcoming deposits, and customers through the Square dashboard. (Source: Square) Sales deposits view on the Square dashboard Users can see all their deposits through the Square dashboard. (Source: Square) Item library on the Square dashboard Users can create, view, and edit their item library through the Square dashboard. (Source: Square) Square Register and Square Terminal The Square Register and Square Terminal are Square’s all-in-one POS solutions. (Source: Square) Square reader for contactless and chip and Square magstripe reader Square card readers that can be used at the counter or on the go. (Source: Square) shopify Shopify overview dashboard The overview of the Shopify dashboard shows quick totals for the day such as total sales, online visitors, average order value, and number of orders. (Source: Shopify) Shopify view of orders to be fulfilled Shopify store owners can easily view orders and fulfillment status. (Source: Shopify) View of Shopify dashboard showing inventory Shopify store owners may view products and available stocks from the dashboard. (Source: Shopify) Shopify point-of-sale devices There are POS devices available for Shopify merchants who also want to accept payments in-store. (Souce: Shopify) helcim-svg Helcim dashboard showing back office tools The Helcim dashboard allows users to view customers, products, integrations, and back office tools. (Source: Helcim) Helcim customer portal showing customer information Helcim enables merchants to have a customer portal available for their customers. (Source: Helcim) Helcim sales view on the dashboard Helcim merchants can quickly view their sales when they login to their dashboard. (Source: Helcim) Helcim POS devices Helcim also offers POS solutions suitable for online businesses that want to expand to in-store sales. (Source: Helcim) paypal PayPal Business transactions view PayPal users may easily view all their transactions from their dashboard. (Source: PayPal) PayPal Business offers tools such as subscription plans and customer insights PayPal Business offers other tools for merchants such as PayPal Checkout for accepting payments on a website, subscription plans, and insights on shoppers. (Source: PayPal) Online store checkout page that shows a PayPal checkout PayPal Business users can easily integrate a PayPal button on their checkout page. (Source: PayPal Business) PayPal POS solutions through PayPal Zettle PayPal offers PayPal Zettle’s POS solutions for accepting in-store payments. (Source: PayPal) payment-cloud PaymentCloud checkout page PaymentCloud allows you to create a customized checkout page. (Source: PaymentCloud) PaymentCloud dispute management dashboard PaymentCloud offers comprehensive chargeback management to help prevent and manage disputes. (Source: PaymentCloud) View of PaymentCloud dashboard PaymentCloud’s dashboard allows businesses to quickly see their sales, activity, tools, and analytics. (Source PaymentCloud) cardx View of CardX dashboard showing deposits and sales The CardX dashboard shows a quick view of deposits and sales. (Source: CardX) CardX virtual terminal The CardX virtual terminal allows merchants to key in the card details. (Source: CardX) CardX card reader CardX allows businesses to accept payments in-store using Dejavoo card readers. (Source: CardX)