Anna Lynn Dizon, Author at TechnologyAdvice

4.48

Interchange plus

Automated, Level 2 & 3 B2B optimization

Helcim subscription management service

Stax

4.42

Wholesale interchange

Volume-based subscription

Stax Bill subscription platform

Stax Pay subscription management service

Stripe

4.32

Flat rate, zero monthly fee

Interchange plus by request

Most subscription management software

Braintree

4.16

Flat rate, zero monthly fee

Interchange plus by request

Most subscription management software

Square

4.09

Flat rate, zero monthly fee

Interchange plus by request

Square subscription management service

Helcim: Cheapest subscription payment processing for growing businesses and B2Bs

Overall Score

4.48/5

Pros

Free Helcim subscription management service
Interchange optimization
Automated volume-discounts

Cons

Limited business software integration
Add-on fees for Amex transactions
Exclusive to Helcim subscription management service

Helcim is a traditional merchant account services provider that also provides a subscription payment gateway. It also offers its own subscription management service that supports recurring invoicing, billing, contracts, and a customer self-service portal. Helcim’s automation features make it stand out from other subscription payment processors. It automatically qualifies businesses for volume discounts, zero-cost processing, and level 2/3 interchange optimization for B2B businesses.

Monthly fees: $0
Card-present fee: Interchange plus 0.15% + 6 cents to 0.4% + 8 cents
Card-not-present fee: Interchange plus 0.15% + 15 cents to 0.50% + 25 cents
American Express transactions: + Interchange plus 0.10% + 10 cents
ACH fee: 0.5% + 25 cents
Card-on-file: Interchange plus 0.15% + 15 cents to 0.50% + 25 cents
Chargeback fee: $15 refundable
Funding options: Next-day funding

Subscription payment platform integrations: Helcim subscription management
Payment methods: Credit and debit cards, ACH, Apple Pay, and Google Pay
Supported invoicing tools: One-time and recurring
Card data management: Secure card vault, automated card updater, pre-authorization via invoicing, and customer self-service portal

Stax: Best for large businesses looking for scalable native billing software

Overall Score

4.42/5

Pros

Offers proprietary billing software that’s compatible with third-party payment processors
Wholesale interchange-plus rates
Advanced customization options

Cons

Payment gateway exclusive to Stax Pay
ACH payments are an add-on
Next-day funding for a fee

Stax is a traditional payment processor that offers a wide range of scalable products for large-volume subscriptions. This includes a built-in subscription management feature in Stax Pay — Stax’s payment software for traditional businesses and SaaS platforms, so users do not need to pay for a separate billing software. Stax also has a full-scale native subscription software, Stax Bill, for large-volume subscription transactions that can work with both Stax’s and third-party payment processors.

Stax Pay fee structure: Volume-based wholesale subscription
- Monthly fee: $99-$199
- Transaction fee: Interchange +8 cents (card-present), Interchange+18 cents (card-not-present)
Stax Bill fee structure: Volume-based wholesale subscription
- Monthly fee: $199-$399
- Transaction fee: Custom (contact Stax for pricing)
Chargeback fee: $25
Funding options: Next-day funding with fee

Subscription payment platform integrations: Stax Pay, Stax Bill, Stax Connect
Payment methods: Debit & credit cards, ACH, PayPal, digital wallets like Google Play
Supported invoicing tools: One-time and recurring
Card data management: Secure card vault, automated card updater, pre-authorization via invoicing

Stripe: Best for compatibility with subscription platforms

Overall Score

4.32/5

Pros

Instant approval and no monthly fees
Compatible with most billing platforms
Machine learning-based fraud protection

Cons

Takes time to set up
Limited virtual terminal features
Requires a developer to make the most out of the platform

Stripe is a popular online payment processor used by numerous business systems, including Shopify. It supports invoicing and recurring payments, and provides its own billing management tools for small businesses that do not currently have their own subscription management software. Stripe is known for its variety of pre-made customization tools to tailor everything from language and currency to fraud detection strategy on your payment gateway. It is also a developer-friendly platform, which means it has nearly unlimited potential for integration with any billing platform.

Monthly fee: $0
Card-not-present processing fee: 2.9% + 30 cents per transaction
Keyed-in processing fee: 3.4% + 30 cents per transaction (for first-time recurring payments and card-on-file)
ACH debit payments: 0.8% capped at $5
Invoicing: +0.4%–0.5% per transaction
Recurring payments service fee: +0.5%–0.8% per transaction
Chargeback fee: $15
Funding option: Next-day funding, same-day with fee

Subscription payment platform integrations: Stripe Billing, most billing management platforms
Payment methods: Debit & credit cards, ACH, PayPal, digital wallets like Google Play
Supported invoicing tools: One-time and recurring
Card data management: Secure card vault, automated card updater, pre-authorization via customer self-service portal

Read more: How to accept payments online

Braintree: Best for nonprofits and accepting PayPal payments

Overall Score

4.16/5

Pros

Developer-based integration tools
Full PayPal payment method integrations
Sandbox account for free trial

Cons

Requires some coding skills to customize
Largely depends on PayPal for simple integrations
Requires third-party integration for invoicing

For businesses that have outgrown PayPal’s features, Braintree is the most natural upgrade. Braintree is owned by PayPal and provides a dedicated merchant account in place of PayPal’s aggregate option. Its subscription payment processing service is particularly popular with nonprofits, offering highly customizable recurring payment features that allow users to integrate with any custom billing platform. Braintree’s own subscription management service is also available if you prefer a simpler solution.

Monthly fee: $0
Card-present fee: 2.29% + 9 cents (Zettle)
Card not-present fee: 2.59% + 49 cents
Keyed-in fee: 2.59% + 49 cents (virtual terminal)
Charity rate: 1.99% + 49 cents
International fee: 1%
Chargeback fee: $15
ACH payments: 0.75%
Funding: Next-day, instant via PayPal wallet, same-day with fee

Subscription payment platform integrations: Nonprofit subscriptions and other billing platforms
Payment methods: Debit & credit cards, ACH, PayPal payment methods, mobile wallets
Supported invoicing tools: One-time and recurring
Card data management: Secure card vault, automated card updater, pre-authorization via invoicing customer self-service portal

Square: Best for small and new subscription businesses

Overall Score

4.09/5

Pros

All-in-one business ecosystem
Waived monthly chargeback fees
Developer-based customization for enterprise businesses

Cons

Exclusive to Square billing
Base transaction rates ideal for small businesses
Limited customer support hours

For new and small businesses, using Square is one of the fastest ways to set up a subscription business. Square is an all-in-one POS solution that also offers a payment processing service with a subscription billing feature.

Ease of use is Square’s strongest feature. With Square, users do not need to apply for a merchant account, and its free POS plan is among the most feature-rich in the market. While this makes Square popular among smaller businesses, it also offers developer-based customization for large businesses looking for a tailored billing management solution on the Square platform.

Monthly payment processing fee: $0
Invoice monthly fee: $0–$20
Invoicing transaction fee: 3.3% + 30 cents per transaction
Recurring payment transaction fee: 3.5% + 15 cents per transaction
ACH processing fee: 1% per transaction, minimum $1
Chargeback fee: Waived up to $250 per month
Funding options: Next day, same day with fee

Subscription payment platform integrations: Square Subscriptions
Payment methods: Credit and debit cards, Apple Pay, Google Pay, and Square Pay
Supported invoicing tools: One-time and recurring, progress-based invoices, and multi-package invoices
Card data management: Secure card vault, automated card updater, pre-authorization via customer invoicing and self-service portal

Read more: Best credit card payment apps

Subscription payment processing best practices

Transactions processed through recurring payment gateways are charged higher processing rates than most traditional one-time transactions. This is primarily due to the greater risk of fraud and chargeback claims associated with storing payment data and pre-authorizing remote payments.

To manage the risk and help keep processing rates low, users can implement these best practices and optimizations.

Maintain Payment Card Industry (PCI) compliance

PCI compliance is a requirement by card networks for all businesses that accept credit card payments. This involves regular testing of a merchant’s payment processing system against a set of 12 data security standards (DSS). Subscription-based businesses, in particular, should pay attention to PCI-DSS because regulations around storing customer payment information are strongly emphasized.

Maintaining PCI compliance is tedious work for business owners to do on their own. That said, this is easily manageable by choosing a PCI Level 1-compliant payment gateway provider. These providers have the technology to encrypt and tokenize customer payment data when stored on their own server, so it can easily take on the responsibility of PCI compliance on your behalf.

Document your customer’s payment authorization

This is a non-negotiable task. Remote payments, especially recurring ones for a subscription payment service, are highly susceptible to chargeback claims. Documenting a customer’s payment authorization essentially protects businesses from complaints of unauthorized charges from a customer’s source of funds. This can be in a physically signed document saved in the customer’s profile or an online signup form completed by the customer and recorded on your website.

Create a clear and transparent payment policy

A subscription management platform should have the ability to assist users with creating a payment policy. That said, the content is entirely up to the user, and transparency means ensuring that all necessary information is included, such as:

Upgrading and downgrading subscriptions
Terms and conditions for the subscription plans
Cancellation and refund policies
All relevant fees other than the monthly subscription cost
Guidelines in the event of failed payments

In addition to a detailed document, shortened versions displayed on and around the website can be helpful for customers who find a lengthy payment policy too time-consuming to read. This may be in the form of a payment terms section in the FAQs or a short bulleted list of important terms on the pricing page. If you launch payment policy updates, be sure to highlight these prominently on your website and send out email notifications to all your current subscribers.

Make your billing cycle customer-friendly

When possible:

Provide customers with the option to set their payment dates
Set a manageable payment frequency based on the subscription cost
Create and send out automated email notifications at least a week before the billing cycle

Doing these can potentially prevent payment failures due to insufficient funds, not to mention leave the customer with a good impression.

Use an account updater

The account updater is a payment service feature every business that accepts recurring payments should have. By default, payment details provided by the customer at the time they signed up for a subscription do not change unless they voluntarily access their account and manually update the information. Unfortunately, this setup does not account for when cards expire or bank accounts are closed and can cause failed payments.

With an account updater, the payment processor has access to a central account updater database. The database allows banks to send new information on card renewals and replacements so that customer payment information will be updated automatically.

Provide alternative payment methods

While credit card payments are a popular online payment method, some customers may prefer other payment modes, such as bank transfers, ACH, and digital wallets. Look for the latest statistics showing the preferred payment methods of different age, gender, and income brackets, then find where your target customers fall to determine whether you need to adopt alternative payment options.

Read more: Our roundup of best merchant services providers

FAQs

A subscription payment is a fee users pay to access a product or service for a period of time. This can be one-time or recurring (mostly the case) and is priced based on usage, quality of product or service, or both.

A recurring payment gateway is a payment processing service that allows businesses to accept recurring payments at regular intervals. This involves providing secure storage for customer payment data, generating and storing payment authorizations, and integrating with subscription billing systems.

A subscription billing platform is a system that manages the sale and collection of products or services provided for a period of time. Some popular subscription management platforms include Recurly and Chargebee.

The post Complete Guide to Subscription Payment Gateways (2024) appeared first on TechnologyAdvice.

Best Free Inventory Management Software for 2024

Anna Lynn Dizon — Thu, 05 Sep 2024 23:22:10 +0000

Inventory is at the heart of a company’s income-generating efforts. So, it’s not uncommon for businesses to spend a significant portion of their budget on tools for managing inventory. Some systems can be pricey. However, there are providers that offer inventory management software free of charge.

What is free inventory management software?

Free inventory management software allows budget-conscious businesses to automate the tracking of stock levels, orders, sales, and deliveries without incurring additional costs. These solutions provide essential insights in real-time, streamline operations, reduce manual errors, and help avoid common issues such as overstocking or understocking, making them a key tool for operational efficiency.

This guide covers six of the top free inventory management software options for 2024, tailored for various business needs:

Square: Best for retailers and restaurants
Odoo: Best for automation features
Zoho: Best for large inventories
Boxstorm: Best for warehouse management
SalesBinder: Best for multi location tracking
Sortly: Best free standalone app

September 5, 2024: Anna Dizon re-scored all of the inventory software against our rubric, testing each one. She also added an overview of what inventory management software is, added some FAQs, and re-wrote the product sections based on her latest findings.

In evaluating the best free inventory management software, I considered a dozen POS systems and other software developers that have a forever free plan. I then compared each software’s overall value-for-money, ease of use, and popularity based on our established criteria.

Pricing

For pricing, I scored each provider based primarily on their free plan package. This includes the availability/accessibility of its free inventory management features: Is it a stand alone that can be used with other business programs? Is it included in more than one free plan? I also gave points for cost transparency and providers that offer a free trial.

Cost features

In this criteria, I wanted to determine what users can do with the free inventory management system. I listed key features that all businesses need when tracking inventory — such as variant, batch, and expiry tracking, order processing, and vendor management — then compared these against what each software provided. I also considered scalability and multilocation capabilities here to determine which provider will work best for established businesses.

Usability

With usability, I aimed at gauging the overall ease of use. I looked into what real-life users had to say about onboarding, training, and customer support. I also tested the user interface and the available user settings to determine how much the system can be customized to match different setups a business might need.

Integration and compatibility

Ultimately, we expect the free inventory management software to work seamlessly with a variety of hardware and other business software. I gave high marks for those that can work on multiple platforms, operating systems, and readily available hardware (Android and iOS). I also scored each provider based on integration capabilities such as third-party and APIs.

Security and reliability

I evaluated each software for login protocols, roles and permission settings, and average uptime. High marks are given to cloud-based inventory management software since it is ideal for backup and recovery. I also checked system compliance for software that does more than manage inventory, such as accepting payments, which requires PCI level 1 compliance.

User scores

To evaluate real-life user scores, I referenced popular third-party review sites such as Capterra, G2, and Software Advice. Apart from high scores, I also took into consideration the number of users who gave reviews for better quality of our scores.

Best Free Inventory Management Software Picks

Our Score (out of 5)

Monthly Fee

Software integrations

Mobile app

Scalability

Square

4.69

Free – $89

Excellent

Good

Odoo

Visit Odoo

4.56

Free – $17

Good (cost per integration may incur)

Excellent

Zoho

Visit Zoho

4.44

Free – $299

Excellent

Good

Boxstorm

Visit Boxstorm

4.31

Free – $529

Good

Excellent

SalesBinder

Visit SalesBinder

4.28

Free – $299

Poor

(iOS only)

Excellent

Sortly

Visit Sortly

4.23

Free – $149

Poor

Fair

Looking for more advanced inventory management tools? Check out our complete guide to the Best Inventory Management Software.

Square: Best for retailers and restaurants

Overall Score

4.69/5

Pricing

4.38/5

Cost features

3.25/5

Usability

3.75/5

Integration and compatibility

4.58/5

Security and reliability

5/5

User scores

4.63/5

Pros

Unlimited users, locations, items/products, and transactions
Specialized plans for niche markets
Easy to use
Extensive integrations

Cons

No batch and expiry tracking features
Limited custom reporting
Square ecosystem restriction

Why we chose Square

Square POS is widely known for its user-friendliness and affordability. Its included inventory management solution makes it our top overall pick. It delivers niche-specific features and flexibility in product cataloging that outshines competitors like Zoho. It offers a holistic, secure, and dependable platform that integrates flawlessly with Square’s extensive POS and payment processing services, delivering an all-in-one solution for retail and restaurant operations.

Every Square for Retail account includes essential features like live inventory tracking, ecommerce integration, mobile support, a POS (point-of-sale) system, detailed order management, product variant capabilities, and more.

Unlike most other providers on our list, Square’s forever-free plan has no limits on users, locations, items/products, or transactions. It also features a native ecosystem of retail-oriented hardware and software. This enables it to support businesses as they scale from microbusinesses to mid- and large-scale multi location operations with plans and tools for businesses in a variety of niches.

Read more: Best Free POS Systems

Allowances: Square supports unlimited products, users, and transactions in all its plans, allowing businesses to expand without constraints. However, transaction processing fees apply to both free and paid plans as part of Square’s payment processing services.
Inventory tracking: Create product or item categories, automated low stock alerts, import and manage products in bulk, create product variants and modifiers like size and color, track inventory between location and sales channels.
Tracking and item management: Offering sophisticated product categorization and support for GTIN/SKU barcodes, Square facilitates comprehensive tracking. While the free plan includes essential tools, paid plans expand the system’s capabilities with inventory counting, automatic purchase orders, label printing, and enhanced vendor management.
Integrated ecosystem: Square provides a seamless suite of tools, including payment processing, POS, online sales, and customer management, streamlining operations with less administrative overhead. Its integrated ecosystem simplifies retail business operations but may limit use with certain third-party tools.
Ecommerce and omnichannel: With a free online store builder that integrates directly with Square, businesses can launch a custom-branded store, syncing inventory in real-time across digital and physical storefronts and enabling sales on social channels and various shipping or pickup options.
Mobile app: Square’s mobile app facilitates real-time inventory management from anywhere, featuring stock transfers, purchase orders, label printing, barcode scanning, and receiving low-stock alerts for comprehensive on-the-go management.
Usability: Square’s user-friendly interface is supported by extensive training, support, and compatibility with various hardware, including barcode scanners, printers, and cash drawers, making it accessible and efficient for users.

All Square plans, both free and paid, incur POS processing fees ranging from 2.5% + 10 cents per transaction to 3.5% + 15 cents per sales transaction.

Forever free Plan: Offers essential inventory management, POS, and a complimentary ecommerce site, ideal for startups and small businesses looking to establish their operations without initial costs.
Square Plus for Retail: $89/month per location, with enhanced inventory and sales management features.
Square Premium: $79/month per location, with lower processing rate and enhanced customer support
Square for Restaurants: $69/month per location, includes one countertop POS and supports unlimited kitchen display systems.

Odoo: Best for automation and scalability

Overall Score

4.56/5

Pricing

5/5

Cost features

4.75/5

Usability

2.92/5

Integration and compatibility

2.92/5

Security and reliability

5/5

User scores

4.3/5

Pros

Unlimited users, locations, and products
Advanced automation features
Exceptional vendor management tools
Custom reporting, forecasting, and alerts

Cons

Complex UI with steep learning curve
Integrations may incur added costs
Poorly-rated mobile app

Why we chose Odoo

Odoo leads our list of free inventory management software for automation and scalability. Its free plan comes with generous allowances, offering unlimited users, products, and locations. It is coupled with a suite of advanced features that cater to a wide range of inventory and supply chain needs. Odoo’s biggest strength lies in its automation capabilities, optimizing warehouse operations, replenishments, and vendor management with minimal manual intervention.

We recommend Odoo for businesses seeking comprehensive, highly automated free inventory management software capable of scaling with their growth. Its features, from handling complex warehouse operations to automating replenishments and vendor communications, make Odoo a powerful tool for businesses looking to minimize manual processes and focus on growth. However, Odoo’s complexity and steep learning curve may be better suited for organizations with the technical expertise to fully leverage its capabilities.

Automation features: Odoo streamlines inventory management with robust automation capabilities, including smart replenishment strategies that anticipate stock needs and automatically generate purchase orders to prevent out-of-stock scenarios. Workflow automation further enhances efficiency by setting up custom rules for actions such as order confirmations, stock adjustments, and low stock alerts, significantly reducing manual workload and minimizing human error.
Inventory tracking: With its double-entry system, Odoo offers detailed inventory tracking and full product traceability, from supplier to customer. Features like serial and lot tracking, along with expiration date management, ensure compliance and customer satisfaction with accurate inventory data.
Reporting: Odoo provides detailed reporting tools for inventory analysis, including customizable reports on stock levels, sales trends, and performance. Its analytics support strategic decision-making with insights into inventory valuation, product movement, and forecast accuracy, helping to optimize inventory and increase profitability.
Open-sourced: Odoo’s open-source platform allows for extensive customization and integration, catering to unique business needs.
Warehouse management system (WMS): Odoo’s WMS tools can help support everything from receiving to shipping. It facilitates efficient order processing with barcode scanning, real-time adjustments, and automated warehouse operations, boosting productivity and operational workflows.
Integrations: Odoo offers a variety of pre-built, seamless connections, including ecommerce, HR, finance, and sales platforms, plus shipping carriers. However, many integrations incur a one-time fee ranging from $4.99–$800+.
Customization and reporting: You can tailor Odoo to fit your business needs with custom reporting, alerts, and automation. However, be prepared for a steep learning curve to unlock its full potential.

As your business grows, Odoo offers upgraded paid plan options with better features and additional apps to handle tasks, including marketing, sales, productivity, POS, accounting, and more.

Standard: $11.20/month per user — all Odoo online apps ($9.10/month per user for first 12 months)
Custom: $17/month per user — all Odoo online apps plus Odoo.sh virtual cloud server, Odoo Studio, and external API ($13.60/month per user for first 12 months)

Zoho: Best for large inventories

Overall Score

4.44/5

Pricing

4.38/5

Cost features

2.5/5

Usability

3.75/5

Integration and compatibility

4.17/5

Security and reliability

5/5

User scores

4.43/5

Pros

Robust free plan
Comprehensive purchase orders and vendor management capabilities
Intuitive user interface and highly-rated mobile app
Strong data security with a 99.9% uptime commitment
Excellent software integrations

Cons

Limited automation tools
Limited order fulfillment features
No batch or expiry tracking available without upgrading
Multi-location support not included

Why we chose Zoho

Zoho Inventory is a powerful solution for businesses looking to manage large inventories efficiently. With its structured free plan and excellent scalability, Zoho caters to businesses’ growing needs using advanced inventory categorization, order fulfillment, and centralized multichannel management features. The platform also excels in handling vendor management, composite items, and dropshipping, all within a user-friendly web or mobile app.

Zoho is one of our top picks thanks to its comprehensive set of features that can be used to manage small and large inventories alike — as well as a variety of business models, sales channels, product types, and operational complexities. While the free plan offers a solid starting point, the platform’s scalability ensures that businesses can expand their inventory management capabilities as needed. We also like that it provides an intuitive and eBay-to-learn interface that delivers enterprise-level security and reliability. However, its lack of multi location support and batch tracking impacted our ratings.

Inventory tracking: Zoho Inventory offers real-time tracking, allowing businesses to monitor items individually or by groups and variants with detailed information, including SKU numbers, prices, and quantities. However, its lack of pick lists and batch/expiry support may limit functionality for some operations.
Vendor and purchase order management: Zoho comes with advanced capabilities to manage up to 20 purchase orders and 20 bills per month, vendor credits, and payments, including support for multi-currency vendors.
Scalability: Zoho provides key inventory features without any upfront costs, and allows businesses to seamlessly transition to more advanced paid plans as they grow. These plans provide increased limits and additional functionalities — including batch tracking, multi-warehouse management, and advanced reporting — to support scalability.
Centralized multi-channel management: Zoho excels in managing sales and inventory data across multiple channels, offering integrations with leading platforms like Amazon, eBay, Shopify, and Etsy on a single dashboard to simplify multichannel selling.
Customization and intuitive interface: Zoho’s UI balances customization and ease of use, making it accessible to users with different levels of tech-savvy.
Software integration: Extensive API availability and pre-built integrations with a broad range of software are available, alongside a highly-rated mobile application for both iOS and Android devices.
Security and reliability: Zoho adheres to stringent data security measures with a solid uptime 99% guarantee (unlike many competing providers), ensuring business operations remain uninterrupted.

Beyond its free plan, Zoho offers multiple paid subscriptions. Many of its upgraded options are highly affordable, but the cost of its upper-tier paid subscriptions can make growth expensive for small businesses.

Free: 50 orders/month, 2 users, 1 warehouse
Standard: $39/month ($29/month if paid annually) — 500 orders/month, 2 users, 1 warehouse
Professional: $99/month ($79/month if paid annually) — 3,000 orders/month, 2 users, 2 warehouses
Premium: $159/month ($129/month if paid annually) — 3,000 orders/month, 2 users, 3 warehouses
Enterprise: $299/month ($249/month if paid annually) — 15,000 orders/month, 7 users, 7 warehouses

Boxstorm: Best for warehouse inventory management

Overall Score

4.31/5

Pricing

3.75/5

Cost features

3.5/5

Usability

4.17/5

Integration and compatibility

4.17/5

Security and reliability

4.17/5

User scores

4.9/5

Pros

Top-rated in user reviews
High-quality support
Advanced vendor management and WMS tools
Backed by Fishbowl’s reputable software ecosystem
Robust hardware integrations

Cons

Limited categorization features
Restrictive user, location, item, and transaction allowances
No multi-location support on free plan
System reliability may vary, with no guarantees for uptime

Why we chose Boxstorm

BoxStorm is a cloud-based inventory management system particularly designed for warehouse operations. Developed by Fishbowl, a leader in large-scale WMS and inventory solutions, BoxStorm offers a range of automated features designed to streamline warehouse operations — including purchase orders, vendor management, and stock alerts. Its user-friendly interface, paired with the backing of Fishbowl’s robust software ecosystem, makes BoxStorm a solid choice for businesses looking to manage their warehouse inventories more efficiently.

Given that warehouse management tools, encompassing inventory management solutions, usually come with a high price tag, BoxStorm’s free plan presents an exceptional value. It caters to businesses in search of specialized functions such as advanced vendor management, operational automation, and broad hardware support, all at no cost. Plus, the software has glowing user reviews from satisfied business ideas and comes with high-quality customer service.

Ultimately, BoxStorm’s blend of comprehensive features, scalability, and affordability positions it as a standout solution for effective and economical warehouse inventory management.

Advanced Tracking and Custom Reporting: Boxstorm offers sophisticated tracking for inventory items using lot, expiration, and serial numbers, and allows for detailed categorization through tags. Combined with custom reporting, businesses gain better oversight and insight into their inventory status.
Vendor management: Boxstorm offers vendor portals for streamlined communication, automated purchasing to generate replenishment orders efficiently, and detailed vendor profiles to store essential information and preferences. These features help improve procurement efficiency, supply chain transparency, and vendor relationships.
Scalability: Although the free plan has restrictive allowances, Boxstorm is designed to grow with your business, offering plans that accommodate an unlimited number of users, locations, items, and transactions under the Pro plan, making it an ideal platform for expanding operations.
Integrations: Unique among free inventory management software, Boxstorm is designed to integrate seamlessly with QuickBooks Online, eliminating double data entry and enhancing financial and inventory record accuracy. Its other pre-built integrations are limited to Stripe, Shippo, and BigCommerce, but an open API is available.
Advanced tracking and custom reporting: Boxstorm offers sophisticated tracking for inventory items using lot, expiration, and serial numbers, and allows for detailed categorization through tags. Combined with custom reporting, businesses gain better oversight and insight into their inventory status.

Basic: $229/month ($199/month paid annually) — 2 users, 1 location, unlimited items, 8,000 orders/month
Scaling: $529/month ($476/month paid annually) — 8 users, unlimited locations, unlimited items, 15,000 orders/month

SalesBinder: Best for multi location management

Overall Score

4.28/5

Pricing

4.06/5

Cost features

4/5

Usability

3.75/5

Integration and compatibility

2.92/5

Security and reliability

5/5

User scores

4.7/5

Pros

Multi-currency handling and availability in 130+ countries
Robust multilocation tracking features
Highly affordable paid plans
Barcode scanning and generation

Cons

No pre-built integrations on free plan (API only)
Limited item allowances
Limited training and support options

Why we chose SalesBinder

SalesBinder is an inventory management system with unique features that support businesses managing products across multiple locations. It also provides the accessibility and tools needed for operating internationally. It provides a detailed, real-time overview of stock across various locations and the advantage of integrated CRM features. With highly affordable plans designed to cater to both SMBs and large-scale companies, SalesBinder streamlines inventory control, enhances customer relationship management, and optimizes operational efficiency.

We recommend SalesBinder for its comprehensive approach to inventory management, especially for businesses operating across multiple locations. Its advanced tracking features, coupled with affordable options for growth, make it a leading choice for effectively managing inventory in a multi location or international setup. That said, its lack of pre-built integrations on the free plan makes it a poor fit for multichannel sellers.

Multi Location inventory management: SalesBinder offers robust management for inventories spread across multiple locations. It integrates all location data into a single, purpose-built dashboard for unified tracking, making it easier to oversee stock levels, movements, and adjustments across all operational areas. This ensures efficient inventory distribution and control.
Inventory tracking: The platform updates inventory levels in real-time across unlimited locations, with efficiency tools like barcode generation, printing, and scanning. Automated low-stock alerts and detailed inventory reports also help prevent stockouts and optimize stock levels.
Integrated CRM: Unique to SalesBinder, including CRM (customer relationship management) capabilities within its free inventory management software enables businesses to maintain detailed customer records, including purchase history and contact information, in one place.
Global accessibility: SalesBinder operates in over 130 countries, offering seamless multi-currency handling. This global reach, combined with language customization for documents, ensures businesses can easily manage international operations.
Customization: You can tailor SalesBinder to your operational needs with customizable inventory fields and user permissions. Its comprehensive reporting tools also allow for high levels of customization, providing valuable insights into inventory trends and financial metrics.
Versatile order management: Beyond standard inventory tracking, SalesBinder supports a range of operations such as vendor management, purchase order placement, sales orders, and packing lists creation.

SalesBinder offers the most affordable paid plans on our list, with subscriptions starting at just $9/month. Even the provider’s top-tier plan, which comes with generous allowances, is highly economical.

It’s worth noting that native integrations are only available on certain tiers of the paid plans.

Starter: $9/month — 2,500 active records, 1 user, 0 integrations
Bronze: $19/month — 5,000 active records, 5 users, 1 integration
Silver: $49/month — 25,000 active records, 25 users, 3 integrations
Gold: $99/month — 100,000 active records, 50 users, unlimited integrations

Businesses can also avail of SalesBinder unlimited storage paid plans.

Bronze: $99/month — 5 users, 1 integration
Silver: $199/month — 25 users, 3 integrations
Gold: $299/month — 50 users, 5 integrations

Sortly: Best free standalone inventory app

Overall Score

4.23/5

Pricing

4.38/5

Cost features

1.75/5

Usability

4.17/5

Integration and compatibility

3.33/5

Security and reliability

5/5

User scores

4.47/5

Pros

Excellent standalone app
Simple and easy-to-use
Supports multiple locations
Highly-rated mobile app with offline mode
Very customizable

Cons

Limited core features with no vendor management
Restrictive scalability
Limited customer support options
No built-in ecommerce, shipping, or POS integrations (API only)

Why we chose Sortly

Sortly stands out as the perfect inventory management solution for microbusinesses and small businesses seeking a straightforward, standalone app. Its simplicity and ease of use, combined with a free plan that caters to basic needs, make it a great choice for those just starting out or with minimal inventory management requirements. Although it lacks scalability and some advanced features, its strengths in usability, cost-effectiveness, and mobile accessibility present a solid foundation for businesses prioritizing straightforward inventory management.

Overall, Sortly is an excellent entry point for those looking to organize and track their inventory without the complexity of more extensive systems.

User interface: Sortly’s interface is highly intuitive, making it accessible to businesses of all tech skill levels. Its cloud-based, modern design stands out, especially for small businesses, microbusinesses, and startups prioritizing simplicity with a minimal learning curve.
Mobile app: While many of the providers on our list offer a mobile app, Sortly’s is the only one that ensures uninterrupted inventory management with its offline mode. This feature is ideal for on-the-go inventory tracking across multiple locations, syncing data as soon as an internet connection is re-established.
Hardware compatibility: Sortly excels in barcode and QR code management, supporting the scanning, creation, and printing of labels through a variety of compatible hardware devices, enhancing inventory tracking efficiency.
Customization: Although the free plan is limited to one custom field, Sortly offers significant customization options, including user access, folders, fields, and tags, allowing businesses to tailor the platform to their unique needs.
Integration and compatibility: Sortly offers minimal direct software integrations, but its open API enables businesses to connect with existing systems. Noteworthy pre-built integrations include QuickBooks, Microsoft Teams, and Slack, though creating custom connections may require additional technical resources.

As your business grows, Sortly offers upgraded paid plans with more advanced features to accommodate it. That said, it’s a small business-oriented software that offers significantly less scalability for large companies than competitors like Zoho and SalesBinder.

Free: Up to 100 items, 1 user, 1 custom field —- $0/month
Advanced: Up to 2,000 items, 2 users, up to 10 custom fields — $49/month
Ultra: Up to 10,000 items, 5 users, up to 25 custom fields — $149/month
Enterprise: Customizable for unlimited items and 10+ users — Custom pricing

Looking for something else? For businesses that offer on-site professional and technical services, checkout our guide to the best field management services software.

Choosing the right inventory management software for your business

Finding the right free inventory management software is a critical step for budget-conscious businesses aiming to optimize their inventory control without incurring additional costs. The ideal software should offer a comprehensive overview of your inventory in real-time, reducing the likelihood of stock discrepancies, overstocking, or running out of key items.

It’s essential to assess how well a system can streamline your inventory processes, from tracking stock levels across multiple locations to integrating with sales channels for a unified operational view. This ensures that your business can respond dynamically to customer demands while maintaining efficient inventory levels.

When researching free inventory stock management solutions, consider the unique requirements of your operation. This includes:

the complexity and volume of your inventory
the specific sales channels you use, and
your plans for future growth

The software’s ability to integrate seamlessly with your existing tech stack — such as accounting software or ecommerce platforms — is also crucial. Additionally, look for features that cater to the unique aspects of your business, whether you need support for backordering, dropshipping, multi location management, or handling composite items.

Ultimately, the best free inventory management software is one that not only fits your current operational needs but also supports your growth ambitions. It should enable you to make informed decisions based on accurate, up-to-date inventory data, streamline your order fulfillment process, and improve overall customer satisfaction.

By carefully evaluating your options and choosing a system that offers the right mix of features, usability, and scalability, you can set your business up for success in managing one of its most important assets: its inventory.

FAQs

The best free method for tracking inventory is by using a spreadsheet, where you can log purchase and sale dates, quantities, and prices for each item. It’s essential to update this spreadsheet for accurate stock levels and insights consistently. However, opting for free inventory management software can offer significant advantages— such as automated tracking, reduced errors, and enhanced operational efficiency.

A simple inventory management system has limited automations and functionalities that can be designed using spreadsheets. Start by classifying your inventory to determine variants. Then, decide what features should be included based on your business needs. The basic functions every inventory management system should have are data entry, inventory catalog with proper variant tracking, and vendor/supplier list. Use the formulas in the spreadsheet to automate product count adjustments, generate low-stock alerts, and customize reports.

Free inventory management software works best for small to medium-sized ones. It automates stock tracking, reduces errors, and improves efficiency compared to free alternative methods. However, its effectiveness depends on your business’s complexity, volume of transactions, and specific inventory management needs.

The post Best Free Inventory Management Software for 2024 appeared first on TechnologyAdvice.

The B2B Payments Guide: Overview & Solutions

Anna Lynn Dizon — Thu, 05 Sep 2024 22:27:50 +0000

Key takeaways

B2B payments are characterized by large volume/large ticket items, discounted transaction processing rates, and the use of invoicing for payments.
Popular payment methods for B2Bs include non-card options such as checks, ACH, and wire transfers.
Card networks offer discounted rates for B2B transactions that qualify based on card type and provide level 2 and 3 data.
The best B2B payment processors offer level 2 and 3 data optimization that automates data completion on the payment platform.

What are B2B payments?

Business-to-business (B2B) payments are transactions where one business accepts payments from another in exchange for goods or services. These are generally characterized as large-volume or large-ticket sales over a set of payment terms (accounts receivable) instead of upfront purchases. Traditional payment methods for B2B transactions are cash, checks, ACH wire transfers, and commercial credit cards.

How do B2B payments work?

The B2B payment process significantly differs from the traditional customer “checkout” experience. Unlike in a consumer relationship, where many customers engage with businesses in small purchases, B2Bs deal with large orders that don’t always happen at a storefront.

B2B payments components

B2B payments consist of key components:

B2B seller: The business entity that delivers goods or services to another business.
B2B client: The business entity that receives the goods or services.
Invoice: Document detailing the transaction and terms of payment.
Seller’s accounts receivable team: Prepares and sends the invoice; reconciles and updates the outstanding payment from the client.
Client’s accounts payable team: Verifies the transaction and prepares the necessary documents for payment approval.
Client’s decision maker/s: Individuals within the client’s company that approve payment requests.
Merchant account and payment services: Service providers that have the technology to securely send and receive transaction information to the financial institutions on behalf of the seller and client.
Financial institutions: Entities such as banks and card networks that authenticate and approve the exchange of funds between seller and client.

Stages of B2B payment processing

Below are the stages of B2B payment processing, which starts after the delivery of the product or service:

Invoicing by seller: At this stage, the seller prepares and sends an invoice to the client. The invoice details the goods or services involved, related taxes, and payment terms. Payment processing services often include digital invoicing features to create templates and send invoices.

In cases where the client defaults or misses a payment due date (for transactions with payment terms), a reminder is sent with an updated invoice attached. This is standard procedure done manually or automated via an invoicing management feature.

Approval by client: Unlike consumer transactions, B2B invoices often go through approval levels that begin with the accounts payable department preparing relevant documents. The payment request, including the payment method to be used, goes up the ranks for approval.

Payment by client: After approval, payment is sent to the seller based on the terms set in the invoice. The customer’s payment goes through the relevant channels for authentication, verification, and approval from the customer’s bank, confirming that funds are available.

Regardless of the payment method of choice, the seller is responsible for meeting various compliance requirements, such as:

Data protection: Businesses are expected to meet PCI-DSS compliance to ensure that the exchange and storage of customer and transaction information are protected.
Anti-money laundering: Know Your Customer (KYC) standards require sellers to conduct due diligence to ensure that their customers pay using legitimate sources of funds.

Acceptance by seller: The seller is notified that the transaction is approved and waits to receive the payment. Depending on the mode of payment, clearing can take anywhere from 24 hours to several business days. Funds are credited to the seller’s merchant account and eventually moved to a business bank account.

Reconciliation by seller: The seller’s accounts receivable team records the payment, crediting the client’s records and adjusting the outstanding balance. A receipt is then sent to the client to acknowledge the payment.

B2B payment methods

Traditional B2B payment methods such as paper checks and wire transfers are still used today. Thankfully, payment technology is finally catching up (albeit slowly) with systems that can automate much of the B2B seller’s payment processing and accounts receivable management requirements.

Popular B2B payment technologies

Payment processing solutions are equipped with the technology to create platforms for collecting transaction information online, in person, and over the phone.

Online B2B payment platform: This includes e-commerce website checkouts, customer self-service portals, payment links embedded in digital invoices and emails, via QR code, and more.
In-person B2B payment platform: Payment software built into a standalone payment terminal or web-based payment platform accessible via smartphones and tablets.
Virtual terminal platform for mail order/telephone orders (MOTO): Seller-facing platform accessed via a merchant account where users can manually enter a client’s payment information received via email, over the phone, or live messaging services.

Common B2B payment methods

All of the payment platforms listed above can be configured to accept the most common payment methods used for B2B transactions:

Paper checks: Some B2B companies continue to accept paper checks today. Some payment processors can track check payments the same way they manage cash payments on their platforms.
Credit cards: Credit cards that companies use to make purchases differ from consumer credit cards. These corporate, commercial, or purchase cards have very high limits (at times none) and charge lower interchange rates.
ACH payments: ACH payments are bank-to-bank transactions in the US that go through the ACH network. B2Bs often use ACH payments in the form of eChecks (digital checks) and direct debits or credits. ACH is less expensive than credit cards, and many payment processors are equipped with tools to process ACH payments. But because the funding time takes longer, businesses often prefer credit cards.

Fortunately, payment technology is beginning to catch up with the demands for open banking to provide real-time ACH transfers and, in the near future, securely connect banking systems across the globe.

Wire transfers: Wire transfers are also bank-to-bank transactions, but unlike ACH, these payments are processed directly and do not have an intermediary. It can be used to accept payments from both local and international clients and takes an hour to a few days to receive. The fees for using this payment method, however, are significantly higher than other types, so it is rarely used for regular B2B sales.

B2B Payment Companies Compared

Company

Our score (out of 5)

Monthly account fee

Pricing

Level 2 & 3 data processing

Helcim

4.48

Interchange plus

✓

Stax

4.36

$99–$199

Wholesale subscription

✓

Adyen

4.33

Wholesale subscription

✓

Stripe

4.31

Custom Interchange plus

Via third-party integration

PaymentCloud

4.30

$10–$45

Client preference

✓

Helcim: Best overall B2B payments processor

Overall Score

4.48/5

Pricing

4.69/5

B2B processing features

4.75/5

General features

4.25/5

Support and user experience

4.25/5

Average user review scores

4.20/5

Pros

Automated volume discounts
Level 2 and 3 interchange optimization
HIPAA-compliant for B2B healthcare services
$500 credit if switching from other payment processors

Cons

Additional fees for Amex transactions
Interchange optimization fee
Third-party POS integration requires custom APIs

Why I chose Helcim

Helcim is a traditional merchant services provider that offers interchange-plus rates and complete payment services without any monthly fees. It provides automated volume discounts and built-in free credit card processing programs for businesses that accept ACH payments (for online transactions) and use Helcim’s smart POS terminal (for in-person transactions). Combined with its level 2 and 3 data processing tools, Helcim is an all-around B2B payment processor for businesses of all sizes.

Unlike other merchant services, Helcim’s level 2 and 3 data processing is built-in and available to all of its approved merchants. Helcim also uses AI to provide its users with interchange optimization that automatically retrieves the customer and transaction information needed to qualify for level 2 and 3 discounts. It supports a variety of industries, including healthcare B2B transactions (i.e., filing and receiving reimbursement from health insurance companies), since Helcim is also HIPAA-compliant.

Fees and savings from level 2 and 3 optimizations will be displayed in your Helcim bill. Source: Helcim

Compatible business types: Helcim is ideal for businesses with fast-growing sales. It primarily works with businesses that require subscription management, especially those in the retail, automotive, education, professional and contractor services, healthcare, and education industries.
Payment services: Helcim supports ACH and both card-present and card-not-present transactions. It also comes with a built-in virtual terminal, invoicing, and recurring billing features. Users can also connect a Helcim card reader to a desktop when processing virtual payments as an additional option.
Fee discount types: Helcim offers interchange plus pricing with built-in automated volume discounts and a native level 2 and 3 interchange optimization feature.
Security and fraud protection tools: Helcim comes with a fraud protection service called Fraud Defender that can be customized to reflect the user’s acceptable risk level.
Chargeback management: Helcim has a chargeback management function for monitoring and responding to claims directly from the Helcim dashboard.
Customizations: Helcim offers developer tools to integrate the system with POS platforms and to create customized features for larger businesses.

Monthly account fee: $0
Domestic transactions:
- Card-present fee: Interchange plus 0.15% + 6 cents to 0.4% + 8 cents
- Card-not-present fee: Interchange plus 0.15% + 15 cents to 0.50% + 25 cents
- American Express transactions: Additional 0.10% + 10 cents
- Domestic ACH payments:
  - $25,000 and below: 05% + 25 cents per transaction capped at $6
  - >$25,000: +0.05% per transaction
International transactions: 1% conversion fee plus
- Visa: +1.45% + 4 cents for card-present and card-not-present
- MasterCard: +1.45% for card-present and card-not-present
- Discover: +1% for card-present and card-not-present
- Amex: +1.3% for card-present and card-not-present
Volume discount: Automated
Level 2 and 3 interchange optimization fee: 30% of savings from interchange optimization
Chargeback fee: $15 (refundable)
Hardware cost: $99–$329 or $29 for 12 months
Application/setup fee: $0
Cancellation fee: $0

Stax: Best B2B billing solution

Overall Score

4.36/5

Pricing

4.38/5

B2B processing features

4.25/5

General features

4.75/5

Support and user experience

4.5/5

Average user review scores

3.9/5

Pros

Advanced billing solution
Wholesale subscription rates
Interchange optimization for Level 2 data
No additional cost for B2B payment processing

Cons

Lacks same-day funding option
May require manual input for Level 3 data
ACH payment processing is an add-on

Why I chose Stax

Stax is another leading traditional merchant service provider. Like Helcim, it offers interchange optimization for B2B transactions but combined with wholesale rates instead of interchange plus cost. This arrangement creates even larger discounts for businesses that regularly process large-volume sales. Compatibility sets Stax apart from Helcim, as it can work with most POS systems, including Clover, with simple integration.

That said, I recommend Stax primarily for managing subscriptions for large B2B SaaS businesses. Stax Bill is equipped with everything from pricing and billing models to dunning management and a payment gateway processor to handle one-time and recurring subscription billing. It also provides revenue recovery, revenue recognition, analytics, sales tax automation, accounting tools, and APIs that allow integration with almost any business software.

Stax Bill allows users to customize invoices, packages, catalogs, pricing plans, and more. Source: Stax

Compatible business types: Stax is compatible with most business types, as it can integrate with POS software with ease. It also supports SaaS platforms, with highly customizable features to manage subscriptions and payments.
Payment services: Stax is equipped to process card-present and card-not-present transactions. It offers invoicing, recurring billing, and virtual terminal tools that support both card and ACH payments.
Fee discount types: Stax offers volume-based wholesale subscription rates, surcharging, and additional custom plans for Stax Bill users. It also supports level 2 interchange optimization, which is built into every Stax transaction, including billing. Level 3 data processing is also available.
Security and fraud protection tools: Stax comes with high-level payment processing security that includes encryption, tokenization, 3D secure, and multi-factor authentication.
Chargeback management: Stax also comes with a dispute management platform to handle chargeback claim alerts, responses, and document proof submissions.
Customizations: Stax is built to work with most other business software, including custom business systems for large businesses via a variety of integrations, developer tools, and APIs.

Monthly account fee: $99–$199 (Stax Bill starts at $199 for businesses that process less than $1M in accounts receivable)
Card-present fee: Interchange + $0.08
Card-not-present fee: Interchange + $0.18
ACH payments: $0
Volume discount: Wholesale subscription
Level 2 and 3 interchange optimization fee: $0 for level 2; contact Stax for Level 3 data processing fees (if any)
Hardware cost: Contact Stax for pricing
Chargeback fee: $25
Application/Setup fee: $0
Cancellation fee: $0

Adyen: Best for global B2B payments

Overall Score

4.33/5

Pricing

4.38/5

B2B processing features

4.25/5

General features

4.5/5

Support and user experience

4.5/5

Average user review scores

4.05/5

Pros

Dynamic currency conversion
Single integration for multiple local payment methods
Long list of B2B integration partners
Strong omnichannel payment solutions

Cons

Does not work with high-risk businesses
Invoicing available via integration
May require monthly minimum

Why I chose Adyen

Adyen is a global merchant services provider designed for mid- and large-sized businesses. While Adyen is primarily European-based, it is a popular choice for embedded payments by top online platforms such as Recurly, Salesforce, and eBay. This makes Adyen seem similar to Stripe — another global payment processor on our list — but Adyen offers much stronger support for in-person transactions, making it a more well-rounded option.

Adyen’s expertise in both in-person and online payment services across the globe gives it a special place on our list. It allows businesses to accept 30 currencies from nearly 100 countries, including a long list of local European payment methods. At the same time, it supports unified/omnichannel payment features for brick-and-mortar businesses with a large online presence. Customizable embedded payment flows make Adyen a perfect provider for large B2Bs.

Adyen embedded in SaaS platforms like Recurly can be configured to accept B2B payment services, including MOTO. Source: Recurly

Compatible business types: Adyen is ideal for large B2Bs with both in-person and online presence.
Payment services: Adyen offers omnichannel payment services, connecting in-person and online sales from both local and international locations in one platform. It supports custom POS integrations, subscription management, virtual terminals, and online checkouts, to name a few.
Fee discount types: Adyen offers interchange plus rates that vary per payment method. Level 2 and 3 data processing are available through custom-developed payment tools. Contact Adyen for custom volume-based discounted pricing.
Security and fraud protection tools: Adyen offers a range of risk management tools that employ a combination of machine learning and customizable risk rules. Advanced settings are available for users to conduct A/B testing of fraud detection tools to match their acceptable risk level.
Chargeback management: Adyen allows users to respond to chargeback claims directly from the platform.
Customizations: Adyen provides large businesses with customization features that include simple integrations, developer tools, and open APIs.

Monthly account fee: $0
Monthly minimum: $120
Transaction fees: Interchange + 13 cents for Visa and MC, 3.3% + 23 cents for AmEx, 3%–3.95% + 13 cents for other card brands
ACH payments: 13 cents plus 27 cents markup per transaction
Volume discount: Custom volume-based pricing
Chargeback fee: $5-$100
Application/Setup fee: $0
Cancellation fee: $0

Stripe: Best for custom online payment processing

Overall Score

4.31/5

Pricing

4.38/5

B2B processing features

4.25/5

General features

4.25/5

Support and user experience

4.25/5

Average user review scores

4.47/5

Pros

Custom interchange plus pricing
Instant bank account verifications
Highly customizable features with well-documented APIs
Excellent security and anti-fraud tools

Cons

Lacks built-in level 2 and 3 interchange optimization
Limited virtual terminal functionality
Requires heavy coding for advanced customization

Why I chose Stripe

Stripe is one of the leading online payment processors in the industry, with a long list of simple and advanced customization tools. It offers flat-rate transaction fees for small businesses and custom interchange-plus rates for large-volume and enterprise-level companies. Stripe’s customization capabilities make it possible for businesses to accept a variety of online payments, including multi-currency transactions, with real-time authorization.

These features make Stripe a standout B2B payment processor for online businesses. Stripe has direct integration with global card networks and issuers. For large businesses with custom systems such as SaaS and online platforms, Stripe can be customized to process level 2 and 3 data. Customization options vary from simple third-party integrations to developer tools. Stripe can even connect businesses with partner web developers and integration consultants to get the process started.

SaaS platforms like Chargebee can configure level 2 and 3 data processing with Stripe. Source: Chargebee

Compatible business types: Stripe is compatible with both startups and enterprise-level businesses. It works best for businesses that maintain e-commerce, SaaS, marketplaces, and other platforms.
Payment services: Stripe is an excellent choice for accepting online credit card and ACH payments. It supports payment tools such as invoicing, recurring billing, virtual terminal, multi-currency, cryptocurrency, and embedded finance.
Fee discount types: Stripe offers volume-based custom interchange plus pricing. Level 2 and 3 data processing are available with custom developer tools.
Security and fraud protection tools: Stripe is well-known for its long list of payment security features. It encrypts credit card numbers with AES-256 algorithm and 256-bit encryption for other payment information. It also has a native global ID verification feature and machine-learning fraud prevention tools.
Chargeback management: Stripe provides a platform for managing disputes, allowing users to monitor, respond, and even assess the likelihood of winning against the claim.
Customizations: Stripe is built with customization in mind. It offers simple and advanced customization tools to fit the needs of all types of businesses.

Monthly account fee: $$0
Small business transaction fees:
- In-person: 2.7% + 5 cents (card-present), 2.9% + 30 cents (touchless)
- Online: 2.9% + 30 cents per transaction
- Keyed-in: 3.4% + 30 cents
- Invoicing 0.4% with 25 free invoice processing per month or 0.5% per invoice
- Recurring billing: 0.5% per month or 0.8% per invoice
Large business transaction fees: Custom interchange plus pricing
ACH payments: 0.8%, $5 cap per transaction
International payments: +1.5% fee, 1% currency conversion
Chargeback fee: $15
Application/Setup fee: $0
Cancellation fee: $0

Read more: Stripe alternatives and Square vs Stripe

PaymentCloud: Best for mid- to high-risk B2Bs

Overall Score

4.30/5

Pricing

4.06/5

B2B processing features

4.5/5

General features

4.5/5

Support and user experience

4.25/5

Average user review scores

4.65/5

Pros

Supports high-risk B2Bs
Customizable fee structure
Integrates with most payment gateways
Instant ACH transfers

Cons

Lacks same-day funding
Add-on monthly fees for payment gateways and virtual terminals

Why I chose PaymentCloud

Large-volume and card-not-present transactions are common between high-risk businesses and B2Bs, so our list would not be complete without PaymentCloud. As a leading high-risk merchant services provider, PaymentCloud offers a wide range of payment services that most B2Bs require to run their business. Its expertise in high-risk merchant processing ensures secure and easy-to-use payment solutions for businesses of any size.

What PaymentCloud does best is its ability to work and integrate its system with the most unique business models. PaymentCloud supports B2Bs with a virtual terminal to accept MOTO payments. It is also gateway-agnostic, which means PaymentCloud can work with any payment gateway for seamless migration. PaymentCloud can also provide a payment gateway that can better support a company’s payment processing requirements, such as level 2 and 3 data.

B2Bs that regularly accept payment over the phone can process transactions with PaymentCloud’s virtual terminal. Source: PaymentCloud

Compatible business types: PaymentCloud lists homebuilders, software startups, landscaping, insurance agents, dealerships, manufacturing, nonprofits, general contractors, mechanic & auto repair shops, brokerages, law offices, and logistics and freight as supported B2Bs.
Payment services: PaymentCloud supports both card-present and card-not-present payments. It can process credit card and ACH transactions on invoices, recurring billings, and virtual terminals for MOTO payments.
Fee discount types: PaymentCloud offers custom volume-based pricing. Both virtual terminals and payment gateways can process level 2 and 3 data processing.
Security and fraud protection tools: PaymentCloud provides the highest level of payment security for business clients. It offers strong fraud protection tools to minimize chargebacks and full encryption of payment information.
Chargeback management: PaymentCloud monitors chargeback claims and allows its users to respond to chargebacks without leaving the platform.
Customizations: PaymentCloud offers excellent customization and seamless integration to business systems. It particularly does well in optimizing payment gateways so that users have all the necessary payment tools, such as level 2 and 3 data processing, to maximize their sales.

Please note: PaymentCloud offers fully custom pricing. The figures below are estimates provided by PaymentCloud and can vary significantly depending on your business profile.

Monthly account fee: $10–$45
Card-present fee: 2%–$4.3%
Card-not-present fee: 2%–$4.3%
American Express transactions: $0
ACH payments: Not disclosed
Virtual terminal fee: $15–$45/month
Payment gateway fee: $15/month
Volume discount: Volume-based custom pricing
Level 2 and 3 interchange optimization fee: Included in custom quote
Chargeback fee: $25
Application/Setup fee: $0
Cancellation fee: Waived early termination fee

Pros & cons of B2B payments

Pros

Lower transaction fees
Well-documented transactions
Often cheaper to process than business-to-consumer (B2C) payments

Cons

Typically involves manual processes
Security measures cause slow funding
High risk of late payments

Businesses that sell to other businesses enjoy higher revenue compared to traditional businesses because transactions often involve discounted rates for high-volume or high-ticket sales. Interest rates on accounts receivable also add to businesses’ income. Volume-based discounts in processing fees are also often given for these transactions.

That said, the lack of automation in many B2B payment processes results in overall funding delays. B2B companies still rely, in part, on manual processes to manage their accounts receivable, which can cause human errors and delays in collections. Even traditional B2B payment methods, like wire transfers and paper checks, which are still used today, undergo manual security measures that unnecessarily extend the approval wait time.

What is level 2 and 3 data processing for B2B credit card transactions?

B2B transactions are less frequent than B2C transactions but usually involve large volumes or large-ticket products or services. By this nature, card networks have a separate interchange category for corporate/business/commercial purchase cards, which implements much lower interchange rates.

However, accepting these card types alone does not automatically qualify a transaction for discounted rates. Card networks expect businesses to meet certain requirements; otherwise, transactions are “downgraded” and charged a higher interchange fee.

Expert Tip

Note that interchange fees make up only the portion of a credit card transaction imposed by card networks. Fees can go as high as 4% per transaction after other service fees and markups are added.

This is where level 2 and 3 data processing comes into play. Each data processing level has different requirements. The higher the level, the more requirements there are. However, the higher the level, the lower the processing fees.

The idea is that as more transaction data is collected, the more secure the payment processing becomes. The act of setting up a process to qualify for these rates is referred to as “interchange optimization.” Businesses should look for B2B payment processors that can automate this task.

Here’s a quick breakdown of the different processing levels:

Level 1

Level 2

Level 3

Transaction type

Business-to-consumer

Business-to-business

Business-to-government or business-to-business

Transaction levels

No minimum requirement

Visa and Mastercard: 1-6 million transactions
American Express: Apply for approval

20,000-1 million in e-commerce transactions

Required data

Basic purchasing information

Level 1 data, plus taxes, orders, and invoice information

Level 2 data, plus products, discounts, and shipping information

Average discount on interchange rates

None

0.45%-0.90%

Card network

All major card brands

Visa, Mastercard, American Express

Visa, Mastercard

Required data for level 2 card processing

Merchant name
Merchant category code
Billing zip code
Purchase amount
Purchase date
Purchase order number
Customer code
Destination zip
Destination address
Destination city
Destination state
Invoice number
Merchant tax identification number (TIN)
Sales tax amount
Sales tax indicator

Required data for level 3 card processing

All Level 2 data
Commodity code
Country code destination
Debit/credit indicator
Duty and/or import taxes assessed
Extended price
Freight and/or shipping cost
Item ID or SKU
Item description
Line discount
Unit of measure (each)
Unit price
Unit quantity
VAT information/reference number

How to choose the best B2B payment processors

Consider the following criteria when choosing a B2B payment processor:

Determine what payment methods you want to accept

Choose a provider that can accept B2B payment methods that your business needs — credit cards, ACH payments, and wire transfers; maybe even paper checks. Also, consider payment methods that your company may need in the future. The payment processor should provide you with a custom plan that considers all these factors.

Decide what other tools you need

The best B2B payment processor should provide businesses with the right payment services. This includes virtual terminals, subscription management, and the ability to process cross-border transactions. The most important factor is a payment processor’s ability to automate interchange optimization for level 2 and 3 data processing. Chargeback management and customizable fraud protection are also both crucial B2B payment tools.

Compare pricing

Because B2Bs regularly deal with large-volume and high-ticket sales, the best payment processor should offer cost-saving features. These include being able to offer interchange plus instead of flat fees to qualify for level 2 and 3 interchange rates, free credit card processing programs, wholesale subscription pricing, and custom plans, so you only pay for features that your business needs.

Make sure your specific industry is supported

The best B2B payment processor should support a variety of business types. This can include nonprofits, wholesalers, professional services, and SaaS platforms. These business models may require a level of expertise to get approved for a merchant account, which a payment processor should be ready to provide.

Finding the best B2B payment processor for you

The cost of accepting payments takes away a huge portion of revenue from any business, especially B2Bs. So, when finding the right payment processor, B2Bs should look for a provider that offers cost-saving and customizable payment processing features that will help maximize your savings.

Helcim is our most recommended B2B payment solution if you need a payment processor that combines the most efficient automation with a range of cost-saving features. Stax is your best choice if you want to efficiently scale a subscription-based B2B business. Stripe and Adyen offer the highest level of customization for businesses that are comfortable with web development. But if you run a business that’s been qualified as mid- or high-risk, choose PaymentCloud.

Read more: If you need more budget-friendly recommendations, check out our list of the cheapest credit card payment processors.

FAQs

A B2B transaction is a purchase of goods or services between two businesses. The payment from a B2B customer to a B2B seller is called a B2B payment.

The difference between a B2B and B2C transaction is the end customer, which is also the payment source. In a B2B transaction, the end customer is another business. In a B2C transaction, the end customer is an individual consumer. B2B payments also typically go through an internal approval process with the company decision-makers. B2C transactions are fairly instantaneous and happen at a point of sale.

The B2B payment process typically goes through an invoicing stage from the seller, followed by an approval and preparation of payment on the part of the customer, then the sending of payment through a payment processor where the transaction is validated and authorized. Once the payment is received, the seller then reconciles the payment and updates the customer’s records.

The post The B2B Payments Guide: Overview & Solutions appeared first on TechnologyAdvice.

What Is Square? POS System Explained

Anna Lynn Dizon — Fri, 30 Aug 2024 19:24:03 +0000

Key takeaways

Square is a one-stop-shop for affordable POS and payment solutions
The Square ecosystem features a comprehensive forever-free plan
In addition to being free, Square is one of the easiest POS systems to set up and use
For larger businesses, Square offers custom processing fees, tailored POS solutions, and advanced developer integrations

Managing a business requires tools that can automate repetitive tasks like payment processing, inventory tracking, customer relationship management, and tracking sales. And as a company grows, the same business tools should be versatile enough to scale along with increasing demands. Square is one such provider that offers an entire ecosystem of business management software that is affordable and user-friendly for small businesses but can also grow with your business.

What is Square?

Square is a fintech company offering business solutions like payment processing and point of sale. They are best known for their little “square” card reader.

Square is an all-in-one point of sale (POS) solution with a built-in payment processing service, ecommerce platform, marketing tools, and a long list of native business management tools. The software is app-based, so users can start selling by simply creating an account and downloading the free POS software on any mobile device. It offers a unified platform for selling in-person and online.

Many small and new businesses love Square for its feature-rich free plan. However, it also provides custom POS solutions, making it possible to power businesses of any size with Square. To date, the Square POS software has over 10 million downloads on iOS and Android devices and has hundreds of thousands of high ratings from real-life users.

Square’s Products At-a-glance

Every free Square account comes with:

Standard POS software
Payments processing
Payment gateway
Waived chargeback fees
Mobile POS app
Basic website builder and online store
Online ordering
Basic invoicing
Virtual terminal
CRM
Starter team management plan
First magstripe mobile card reader

Additionally, Square offers other products and add-ons like:

Advanced card readers, POS terminals, and registers
SMS and email marketing
Customer loyalty programs
Customer contract creating and management
Employee shift scheduling
Team communication
Payroll
Checking and savings accounts
Small business loans
And more

Square payment processing

In addition to its well-known “square” mobile card reader, Square has a suite of other card readers and point of sale systems.

Square is a fintech company whose payment processing services are at the core of its offerings.

Square Payments operates as a payment facilitator. It enters into agreements with acquiring banks to create a central merchant account. Every business owner that opens a Square account is provided a sub or aggregate merchant account.

As a payment facilitator, Square assumes the role of holding, receiving, and disbursing funds on your behalf. Square’s merchant account connects it to various payment networks such as the card network and banks for credit and debit card payments, the ACH network for ACH payments. This allows Square to process transactions and transfer funds for its business customers.

With Square, new businesses can avoid the hassle of long and complicated approvals. They can immediately accept different payment methods with competitive terms, zero monthly fees, and no long-term contracts.

Available payment methods

Accepted payment methods:

Cash, cheque, vouchers, and other tenders
Credit & debit card payments (Visa, Mastercard, American Express, Discover)
Digital wallets
HSA and FSA debit cards
ACH
Gift cards
Buy Now, Pay Later (BNPL) with Afterpay
Peer-to-peer payments with CashApp

Supported payment services:

Mobile POS
In-store POS
Online payment gateway
Invoicing
Subscription management
Virtual terminal
CBD program

Payment processing fees

Like most payment facilitators, Square offers flat rate pricing, which may not be the lowest terms but are easiest to manage for small and new businesses. Businesses that process more than $250,000 annually must work with Square to negotiate custom rates, which typically involve volume discounts and likely better pricing models such as interchange plus or subscriptions.

Below are Square’s standard payment processing fees:

Monthly payment processing account fee: $0
Cash, cheque, vouchers, and other tenders: $0
Credit cards:
- In-person transaction: 2.6% + 10 cents
- Online: 2.9% + 30 cents per transaction
- Keyed-in & card-on-file transactions: 3.5% + 15 cents per transaction
- Chargeback fee: Waived up to $250/month
Invoicing: 3.30% + 15 cents to 3.5% + 10 cents per transaction
ACH Payments: 1%, minimum $1
Afterpay: 6% + 30 cents per transaction
CBD program transactions: From 3.5% + 10 cents per transaction
Same-day funding: + 1.5%
Volume discounts: With a paid POS plan, or more than $250,000 in annual sales volume and over $15 in average ticket size

All Square payments processing comes with free dispute management, active fraud prevention, end-to-end encrypted payments, live phone support, and PCI compliance.

Hardware

Square’s software is app-based, however, Square also has a range of proprietary hardware. All of the products are built to function across a range of business types, configurations, and sizes.

It starts with mobile credit card readers, where users get a separate magstripe and contactless device. There is also a versatile iPad stand with a built-in card terminal that can function as a countertop or kiosk. Lastly, Square provides mobile and countertop versions of a stand-alone checkout terminal, complete with a built-in touch screen, customer display, and swipe, chip, and contactless card readers.

Square Magstripe Reader

Square Contactless Reader

Square Stand

Square Terminal

Square Register

Square’s invoicing feature is easy to customize and offers automated tools for alerts and follow-ups. (Source: Square)

Square point-of-sale

All of Square’s POS systems are available on iPads, Android, iPhone, and Square’s proprietary hardware.

Square offers basic and industry-specific POS software. Every software version comes with inventory, ordering, sales, customer management, and reporting tools.

The basic free POS software includes the following features:

Inventory management
Cash, mobile, debit, credit, and gift card payments processing
Invoicing
Website builder
Virtual terminal
CRM
Offline credit card payment processing
Returns and refunds processing
Tip management
Digital and printed receipts

Industry-specific POS software

For more advanced POS features, Square offers industry-specific POS software for retail, restaurants, and professional services. These alternatives come with their own set of free and paid plans. Unique features in industry-specific POS include advanced inventory management for retailers, seat management and a kitchen display system for restaurant owners, and scheduling for professional service providers. Square also offers discounted transaction rates for those who upgrade to a paid POS plan.

Additional features and products

Square offers a full ecosystem of business tools across four main categories: commerce tools like payment processing and point of sale, customer management tools like marketing and CRM, employee management tools like shift scheduling and payroll processing, and banking tools like business checking accounts.

Here’s a full breakdown:

Square commerce products

Square Online comes with a drag-and-drop functionality, making it easy for first-time users to set up their website. (Source: Square)

Square’s mobile-first online menu opens your online ordering website like an app (Source: Square)

Square’s basic invoicing functionality is free and offers a range of customization options such as branding, line items, messaging, and more. It can also be customized for recurring billing and post-payment invoicing for businesses that require pre-authorized recurring payments.

Every Square account comes with a free website builder and management platform. Square ensures that designing a website is easy even for first-time users, complete with guides for customizing every section and page. Businesses can choose which products to sell online from the integrated inventory list on Square’s dashboard. Square Payments also comes built-in. All businesses need to do is choose the payment methods they want to make available to online customers.

Read more: Square vs Shopify

For restaurants, Square’s online ordering system starts by providing users with a mobile-friendly Square online store. It also provides QR codes for digital menus and embedded Square checkout links for social media platforms. Square can be integrated with local delivery service providers, customized from the on-demand delivery setting on the Square dashboard.

Businesses can easily create payment links from the Square dashboard. These payment links are used to send buy buttons for payment requests via email, text messages, messaging apps, or embedded checkouts on social media posts.

Square’s buy buttons can be customized for different events and business types. For example, nonprofits can create a “donate now” button instead, and subscription businesses can customize the button to say “subscribe now” instead. Users can send custom digital receipts after every completed transaction.

Square’s gift cards are available in both physical and digital forms. Like all its other products, creating and launching Square gift cards can be done in minutes. Businesses can sell their gift cards in-store and online, and customers who use them for purchases are seamlessly tracked in the customer directory.

Customers can easily reload and reuse their gift cards and even receive proceeds from approved refunds. Except for processing fees, there are no other costs associated with digital gift cards. However, physical gift cards will cost at least 50 cents each and discounted rates may be available if ordering over 1,000 units.

Square customer management products

Square combines email and text marketing with CRM to nurture your customer base (Source: Square)

Square Messages help businesses efficiently manage customer communications from a single platform. (Source: Square)

Square’s loyalty program tools automatically integrate into the customer directory, tracking purchase history and customer preferences. (Source: Square)

Square’s customer directory is seamlessly integrated with other Square products such as text and email marketing and loyalty tools. (Source: Square)

The Square Photo Studio is integrated with the product catalog, so updates are seamless across all sales channels. (Source: Square)

Square Go lets customers manage their appointments from a mobile app. (Source: Square)

Square offers both email and text marketing features. Users can design and automate one-time and email campaigns, as well as options to save templates for recurring campaigns throughout the year. Text marketing is effective as a stand-alone or a follow-up for email marketing blasts. Like emails, it can be customized with automation and triggered with events such as new customer promotions.

Square Messages allows you to send SMS messages to customers from the Square dashboard. Customer replies will also be visible and managed from the same platform. For professional service businesses, the industry-specific POS can launch an AI-powered online assistant for bookings and reservations.

Square’s loyalty program feature lets businesses create customized loyalty and reward schemes from the Square dashboard. This includes limited-time and recurring promotions, digital loyalty passes that customers can save in their Apple wallet, and customized VIP tiers to encourage engagement. Customers can sign up in person, on the ecommerce website, and on the Square mobile POS app.

Square offers full access to its customer directory at no extra cost. Customer records are integrated with every Square product, especially loyalty and rewards. All profile data can be manipulated to help analyze audience segments, purchasing trends, understand customer behavior, and create timely reports.

Product photos are crucial when selling online, which is why Square now offers a photo studio feature. The Square Photo Studio helps users capture and create professional product images. This app-based tool uses AI to fine-tune lighting, backdrops, framing, and other imaging tools to create eye-catching product photos.

Square Go is Square’s customer-facing marketplace app for professional services that use Square’s Appointment POS software. Customers can download the app for free, search for the nearest service provider, book and manage appointments, create reservations, and communicate with the seller. It also allows customers to leave reviews using the app.

Square Contracts is a free tool for all businesses with a Square account. It can be used to draft service agreements, policies, credit card authorizations, purchase orders, and all types of waivers a business owner may need. The Square Contract is accessible via the Square dashboard and comes with customizable templates that can be modified until the document is signed.

Square staff products

Square Shifts provides automated time cards to show attendance, shift swapping and time-off requests within the app. (Source: Square)

Manage shift swapping and time off requests in the Teams app (Source: Square)

Square Shifts is an app that integrates with the Square POS and merchant account dashboard to handle scheduling, time tracking, and attendance. This product also allows businesses to prepare payroll, manage compensations, and analyze labor costs with timely reports. The basic app is free, but users can get the full version for just $4 per month per team member.

The Square Teams app is a communication platform between the employer and employees. This is where managers can send announcements and share files, staff members can send updates, and everyone can react with emojis within the platform. Users can even send private messages to other team members. The Square Teams app costs $2.50 per month per user with a 30-day free trial.

With Square Payroll, businesses can run payroll in minutes at any given time or set payroll to run automatically every pay period. It pulls information directly from any of Square’s team management tools (Team app, Shifts) for time cards and tips. Square partners with SimplyInsured (for employee medical, dental, and vision insurance) and Guideline (for 401K retirement benefits). Square Payroll is also equipped to easily handle onboarding and tax filing via automation. Businesses can even arrange so employees can instantly get their wages via CashApp.

The Square HR Experts plan is an optional product to help businesses efficiently manage HR functions. It provides built-in resources for HR and compliance, such as an employee handbook builder, pay-as-you-go workers’ compensation insurance, and alerts for changes in employment legislation. This feature offers a variety of HR document templates, such as new-hire forms and performance management check-ins. When in doubt, Square HR Experts also offers a platform to consult certified HR experts for any advice, policy, and documentation questions.

Square banking products

Use Square Savings to set aside funds for sales tax and other business goals. (Source: Square)

Loan application and repayment are easy and done from the Square dashboard (Source: Square)

Square Business Checking offers a fast way to set up a business checking account. Unlike traditional banks, Square does not have opening deposits or balance requirements or charge a monthly service or maintenance fee. There are also zero fees for overdrafts and foreign transactions. Most importantly, a Square Checking account gives businesses instant access to funds from sales at no extra cost.

A Square Business Savings account allows companies to automatically set aside a portion of their sales proceeds for different goals. Funds in the savings account can easily be moved to your Square Checking account for free or to a separate bank account linked to Square Savings for a fee. There are no minimum deposit requirements, and funds in Square Savings earn from Square’s 1.75% APY. Square is also a member of FDIC, meaning accounts are insured up to $2.5 million.

The Square Business Credit Card is linked to your Square Business Checking account. This means businesses are provided a credit line and will not have to wait for sales revenue to pay operating expenses. Using the Square Credit Card also comes with incentives such as points that can be applied against credit card processing fees. Application and repayments can be done from the Square dashboard, and there are no annual fees or late payment fees.

Square offers small business loans from $100-$350,000. The application is fast and easy on the Square dashboard and is based on your average card sales for a specific period. There is no interest on repayments as Square only charges a flat fee for the loans. Repayments are automated, and businesses will only have to pay an amount based on what they earned for the day.

Benefits of using Square

All-in-one business solution

Square offers a complete business ecosystem to support its POS software. A payment processing solution and an ecommerce platform are built into the POS system, while a range of proprietary hardware is available for mobile and brick-and-mortar sales. Square also offers industry-specific software for retailers, restaurants, and professional services.

Native business integration tools such as team management, payroll, and marketing are also available as add-ons. Square also works with a long list of third-party integrations for everything from accounting to delivery apps for users who prefer to keep their current business software tools.

Feature-rich free plan

One of the reasons why Square is popular among small and new businesses is because it offers a feature-rich free plan. This allows merchants to launch their business with Square with zero upfront cost.

Easy to use

Square has a reputation for being incredibly easy to use. Real-life first time users can attest that it will only take minutes to sign up for a Square account. And once you get access to a merchant dashboard, users get a guided tour and set up instructions to upload inventory, create payment options, design invoice templates, and even launch a website.

Multichannel and omnichannel sales platform

Square provides its users with multiple sales channels regardless of plan type. The software is ready to conduct sales and accept payments from a mobile device, in storefronts, and online. Each Square account comes with a built-in ecommerce platform that allows users to set up and manage their ecommerce website. Square’s payment gateway service is accessible from the merchant account dashboard, where users can create payment links and QR codes to embed on invoices and social media posts and send them via email and messaging apps to collect payment.

Seamless ecosystem

All of Square’s business management tools are fully integrated. So, inventory records are always updated in real-time, regardless of whether businesses receive sales online, in-store, or on-the-go. The built-in omnichannel functionality allows users to receive timely low-stock alerts and avoid selling out-of-stock products. It also helps provide a better customer experience by making customer profiles available on every platform.

Read more: Square reviews

Square competitors and alternatives

Square’s main competitors and alternatives are PayPal, Stripe, and Helcim. All three of these companies also offer free accounts with different payment processing tools.

	Square	PayPal	Stripe	Helcim
Best for	Small business	Seasonal, occasional sellers	Online sales	Fast growing businesses & B2Bs
Merchant account type	Aggregate	Aggregate	Aggregate	Traditional/dedicated
Fee structure	Flat rate	Flat rate	Flat rate	Interchange plus
Monthly software fee	$0-$89 (POS+payments)	$0-$30 (virtual terminal)	$0-$10 (Custom domain)	$0
Chargeback fee	Waived up to $250/mo	$20	$15	$15 refundable
Volume discounts	Sales volume > $250,000/year	Upgrade to Braintree for interchange plus rates	Custom interchange plus rates quote for large-volume sales	Built-in volume-based discounts
Scalability	Integrations, Square large business solutions	PayPal for Enterprise + upgrade to Braintree	Coding-based customizations	Developer tools and APIs

Read more: Check out our recommended best alternatives to Square.

PayPal vs Square

PayPal is a pioneer in online payment processing and a trusted brand known for improving online conversion rates. It supports mobile payments via a mobile POS app and proprietary mobile card reader. PayPal offers a wide range of payment solutions and is particularly unique for its proprietary payment methods that make it easy to sell to customers with a personal PayPal account.

Though both PayPal and Square are easy to set up (both are payment facilitators) and essentially mobile-based, PayPal is a better option for occasional sellers because it doesn’t require its users to create a complete POS platform to start selling. And PayPal payment methods can be easily added to any e-commerce website. Square Payments is exclusive to websites created on the Square platform.

Read more: How Square stacks up against Paypal.

	Square	PayPal
Best for	Small business	Occasional sellers and ecommerce businesses
Merchant account type	Aggregate	Aggregate
Fee structure	Flat rate	Flat rate
Monthly software fee	$0-$89 (POS+payments)	$0-$30 (virtual terminal)
Chargeback fee	Waived up to $250/mo	$20
Volume discounts	Sales volume > $250,000/year	Upgrade to Braintree for interchange plus rates
Scalability	Integrations, Square large business solutions	PayPal for Enterprise + upgrade to Braintree

Visit PayPal

Stripe vs Square

Stripe is a popular online payment processor that also serves as a payment facilitator, offering a free merchant account similar to Square. It is a developer-first platform that allows for nearly unlimited customization options via APIs and SDKs. That said, Stripe also offers payment processing services that don’t require coding, such as basic checkout, invoicing, and recurring billing tools.

Stripe’s clear difference from Square is that it has no native POS software (PayPal has Zettle). It requires custom integration to use the system with a business platform but offers huge customization potential. To put it in perspective, Stripe powers Shopify’s payment processing service, Shopify Payments. Stripe also requires users to design a mobile POS app to work with their credit card readers.

	Square	Stripe
Best for	In-person sales	Online sales
Merchant account type	Aggregate	Aggregate
Fee structure	Flat rate	Flat rate
Monthly software fee	$0-$89 (POS+payments)	$0-$10 (Custom domain)
Chargeback fee	Waived up to $250/mo	$15
Volume discounts	Sales volume > $250,000/year	Custom interchange plus rates quote for large-volume sales
Scalability	Integrations, Square large business solutions	Coding-based customizations

Visit Stripe

Helcim vs Square

Helcim is a merchant account provider that offers a variety of payment methods and services. Like Square, Helcim also offers free point-of-sale, invoicing, and ecommerce software. Unlike Square, Helcim supports a number of additional cost-saving features, such as built-in volume discounts, free credit card processing, and level 2 and 3 data processing for B2Bs—all automated so savings are always optimized.

Also, unlike Square, Helcim offers a traditional merchant account. So, while it’s less prone to holds or frozen funds, it requires an approval process, for which most small businesses may not be suitable. The fee structure is also set to maximize savings compared to Square’s.

	Square	Helcim
Best for	Small and new businesses	Fast growing businesses & B2Bs
Merchant account type	Aggregate	Traditional/dedicated
Fee structure	Flat rate	Interchange plus
Monthly software fee	$0-$89 (POS+payments)	$0
Chargeback fee	Waived up to $250/mo	$15 refundable
Volume discounts	Sales volume > $250,000/year	Built-in volume-based discounts
Scalability	Integrations, Square large business solutions	Developer tools and APIs

Visit Helcim

FAQs

The major benefit of using Square is the access to a complete suite of business software solutions to customize and grow a POS system based on your business needs. Square is a one-stop-shop, which makes for an easy set up.

Square works by integrating its core POS software with its in-house payments, ecommerce, and other business management tools. It runs sales and manages inventory across multiple channels from a single POS dashboard and supports real-time inventory and sales information on all of your selling platforms (mobile, in-store, ecommerce, virtual terminal).

Yes. Square provides one of the most feature-rich free plans in the market that includes payment processing, website builder & management, mobile POS app, virtual terminal, and a free magstripe mobile card reader.

Yes, Square is a great POS system that offers the best value-for-money especially for small and new businesses. Square also offers great potential for building a custom POS solution for large businesses.

Yes, you will need to link a business bank account when you sign up for a Square account. Square will send the proceeds of your sales (net of transaction fees) to your business bank account.

Yes, Square is used by many large businesses such as Shake Shack, SoFi Stadium, and Ben & Jerry’s. It utilizes a combination of advanced developer tools and various third-party partnerships to provide tailored solutions.

Square’s POS software is HIPAA compliant. It signs business associate agreements (BAA) with healthcare providers, making handling patient information in the Square POS system legal. Square integrates directly with popular EHRs Remedly and DrChrono, and can process payments using Health Savings Account (HSA) and Flexible Spending Account (FSA) debit cards.

The post What Is Square? POS System Explained appeared first on TechnologyAdvice.

Best Credit Card Payment Apps in 2024

Anna Lynn Dizon — Wed, 31 Jul 2024 22:47:43 +0000

A credit card processing app is mobile software that provides businesses or individuals with the tools to accept credit card payments on a tablet or smartphone. Credit card payment apps work with a payment processor and are often free to download and use.

Based on our evaluation, the best credit card payment apps for 2024 are:

SwipeSimple: Best overall credit card payment app
Stax: Best for large-volume businesses
Square: Best for new and small businesses
Helcim: Best for growing businesses
Shopify: Best for e-commerce
Paysley: Best for integrations
CDGcommerce: Best for restaurants
Stripe: Best for advanced customizations

In evaluating the best credit card payment app, I focused on finding providers with the most flexibility and the right resources to scale with growing and established businesses. I also looked at the cost-effectiveness of payment apps and narrowed down our list to the following:

Square
Stripe
Helcim
Clover
SumUp
Shopify
Nomod
Stax
CDGcommerce
Payanywhere
Adyen
SwipeSimple
iProcess
Paysley
Paysimple

I then hand-picked eight credit card payment apps based on our established criteria:

Pricing 20%: The fee structure should allow users to maximize their savings through volume discounts. The card reader should be affordable, and the payment app should be free.
Mobile App Features 30%: The credit card payment app should provide the widest range of payment methods and features that expand the user’s ability to process payments, such as inventory and customer relationship management. The app should also have customization tools to scale with growing businesses.
Support & Reliability 20%: The app should be reliable and secure, with features to avoid business downtime. It should provide high-level customer support, with live assistance available 24/7. A detailed knowledge base and well-documented developer tools should be accessible.
User Experience 15%: This category takes into account the credit card payment app provider’s overall ease of use and scalability. It also evaluates the user’s application and onboarding experience as well as the flexibility of contract terms.
User Scores 15%: This computes the average review scores provided by iOS and Android users.

Best credit card payment apps compared

Our Score (out of 5)

Monthly Account Fee

Card Reader Options

Mobile App Compatibility

Payment Processor

SwipeSimple

Visit SwipeSimple

4.3

Depends on payment processor

SwipeSimple 2-in-1/ 3-in-1 card readers

iOS and Android

CardFlight or integrate with payment processors

Stax

Visit Stax

4.27

SwipeSimple 3-in-1 card reader

iOS and Android

Exclusive to Stax

Square

4.27

$0–$89 (w/POS)

Square magstripe and contactless $0-$59

iOS and Android

Exclusive to Square

Helcim

Visit Helcim

4.23

Helcim 2-in-1 card reader $99

iOS and Android

Exclusive to Helcim

Shopify

Visit Shopify

4.2

$5+

Shopify 2-in1 card reader $49

iOS and Android

Exclusive to Shopify

Paysley

Visit Paysley

4.26

$69+

SwipeSimple 2-in-1/ 3-in-1 card readers

iOS and Android

Integrate with payment processors

CDGcommerce

Visit CDGcommerce

4.18

$0–$199

AnywhereCommerce Walker 3-in-1 $99

iOS and Android

Exclusive to CDGcommerce

Stripe

Visit Stripe

4.17

Stripe Reader M2 3-in-1 $59

iOS and Android

Exclusive in-house or third-party design

Note that some apps on our list work with multiple payment processors, while others only work with their namesake processors. If you’re just starting out, choosing an all-in-one solution is easiest. However, if you already have a merchant account or are having trouble getting approved for one, a payment app that works with multiple processors offers more flexibility.

SwipeSimple: Best overall credit card payment app

Overall Score

4.3/5

Pricing

4.75/5

Mobile app features

4.25/5

Support & reliability

4.06/5

User experience

5/5

Average user review scores

4.75/5

Pros

Works with popular payment processors
Can process offline payments
Highly rated payment app

Cons

Expensive mobile card readers
Limited app branding/customization
No fee information for standalone option

Why I chose SwipeSimple

SwipeSimple is our top choice for credit card payment apps. It offers a wide range of in-person payment methods, including QR codes, digital wallets, and tap to pay, to name a few. The app also features invoicing, inventory and customer management, advanced tipping, and a card vault. SwipeSimple received the highest ratings from both iOS and Android users.

SwipeSimple’s best asset is its flexibility. It is used by leading merchant acquirers and payment processors like Global Payments, TSYS, Fiserv, Worldpay, National Processing, Stax, and Payment Depot. Multiple payment processors mean merchants can choose a provider with the best rates. As of September 2023, businesses can use SwipeSimple directly via a CardFlight merchant account.

The SwipeSimple mobile app received a rating of 4.8 out of 5 from Apple users and 4.7 out of 5 from Android users. (Source: SwipeSimple)

Payment methods: SwipeSimple’s mobile app can be paired with a mobile credit card reader to accept swipe, EMV, and contactless transactions including tap to pay. It can even manage cash payments. SwipeSimple supports hardware-free payments via manual entry, QR code scanning, and mobile wallet transactions.
App compatibility: SwipeSimple partners with merchant acquirers like TSYS, so any payment processor that uses TSYS to provide merchant accounts can use SwipeSimple. It also integrates with a number of payment processors, like Payment Depot and National Processing.
Mobile card readers: SwipeSimple provides two mobile credit card readers. Both are Bluetooth connection-enabled and one supports tap-to-pay and mobile wallet payments.
Scalability: SwipeSimple provides APIs for customizations, including onboarding automation of partner systems. Users can add multiple merchant IDs and user accounts for employees.

Businesses that would like to sign up directly with SwipeSimple will have to contact CardFlight for pricing. If you choose another payment processor that works with SwipeSimple, that payment processing partner dictates the transaction fees, hardware costs, and any software fees.

Stax: Best for large-volume businesses

Overall Score

4.27/5

Pricing

4.38/5

Mobile app features

4.75/5

Support & reliability

4.69/5

User experience

4.38/5

Average user review scores

2.5/5

Pros

Wholesale payment processing rates
Wide range of enterprise-level customizations
Robust reporting and analytics

Cons

Poor mobile app user ratings
Limited mobile card reader options
Reports of crashes and connectivity problems

Why I chose Stax

Stax is a traditional merchant account that offers wholesale subscription-based pricing ideal for mid-sized and large-volume businesses. It offers a mobile app version of Stax Pay through advanced SwipeSimple customization. Note that while Stax also uses SwipeSimple, I decided to include it separately on our list because of Stax’s versatility and customization capabilities.

Stax is a standout for the system’s ability to scale its features along with any business. This means it can provide simple payment processing solutions, but as a business grows, users can upgrade to any of Stax’s more advanced products such as high-level subscription management with Stax Bill and white label customizations with Stax Processing. The functionalities within the Stax mobile app will also upgrade along with the business needs.

The Stax Pay mobile app received a rating of 2.3 out of 5 from Apple users and 2.7 out of 5 from Android users. (Source: Stax)

Payment methods: The Stax Pay mobile app can process a complete range of credit card payment methods. This includes hardware-free payments such as manual entry, QR code scanning, digital wallet payments, card scanning, and tap to pay.
App compatibility: Stax Pay mobile app is exclusive to Stax merchants. The app can be upgraded to a more customized solution for larger businesses.
Mobile card readers: Stax Pay is used in conjunction with the SwipeSimple B250 mobile card reader, which supports contactless and mobile wallet payments.
Scalability: Stax can be customized and upgraded to support a wide range of businesses. For larger businesses, Stax offers more advanced plans that support developer tools, white-label custom branding, and multiple employee profiles.

Monthly account fee: $99–$199
Mobile app fee: $0
Card-present fee: Interchange plus $0.08
Card-not-present fee: Interchange plus $0.18
American Express transactions: $0
Volume discounts: Volume-based subscription plan
Chargeback fee: $25
Mobile card reader cost: Contact Stax for pricing
Application/set-up fee: $0
Cancellation fee: $0

Square: Best for new and small businesses

Overall Score

4.27/5

Pricing

3.75/5

Mobile app features

4.25/5

Support & reliability

4.38/5

User experience

4.38/5

Average user review scores

4.75/5

Pros

All-in-one POS and payment system
Highly rated mobile pos app
Waived chargeback fees
Large-business solutions

Cons

Limited customer support hours
Reports of frozen funds
Account stability issues

Why I chose Square

Square is an all-in-one POS system with a built-in payment processing service. It also provides a free mobile POS app that’s integrated with Square’s e-commerce and in-store POS platforms. Square does not require merchants to apply for a merchant account. Its pricing structure is ideal for new and small businesses, but it also offers solutions for larger companies.

Square’s standout feature is its feature-rich forever-free plan that includes the mobile POS app. It is designed so that any budget-restrained business can start selling and accepting payments with very little (even zero) upfront cost. Every Square merchant account receives a free magstripe reader, which can be used in conjunction with the mobile app. However, users can also manually process payments without a card reader.

The Square mobile POS app received a rating of 4.8 out of 5 from Apple users and 4.7 out of 5 from Android users. (Source: Square)

Payment methods: Square’s mobile POS app provides a complete range of in-person payment processing methods, including hardware-free payments via manual entry, QR code scanning, tap to pay, and mobile wallet transactions.
App compatibility: Square’s mobile POS app is exclusive to Square users but has one of the highest user ratings for both iOS and Android users.
Mobile card readers: Square offers the first free magstripe card reader for all Square merchants. The Square EMV and contactless card reader allows for dipped and tapped credit card payments.
Scalability: Square offers custom pricing for businesses that process more than $250,000 per year. It also offers customizable and scalable solutions for enterprise-level businesses, including multiple account access and a wide range of business integrations.

Monthly account fee: $0–$89 (including POS software)
Mobile app fee: $0
Card-present fee: 2.6% + $0.10
Card-not-present fee: 3.5% + $0.15
American Express transactions: $0
Volume discounts: By request for businesses with sales volume greater than $250,000/year
Chargeback fee: Waived up to $250 per month
Mobile card reader cost: $0–$59
Application/set-up fee: $0
Cancellation fee: $0

Helcim: Best for growing businesses

Overall Score

4.23/5

Pricing

4.69/5

Mobile app features

4.5/5

Support & reliability

3.75/5

User experience

4.38/5

Average user review scores

3.55/5

Pros

Automated volume discounts
No additional approval for surcharging
Interchange-plus rates

Cons

Low mobile app rating for Android users
Additional cost for Amex transactions
Expensive mobile card reader

Why I chose Helcim

Helcim is a traditional merchant account services provider that comes with its own payment software. It uses a volume-based pricing model with no monthly fees and complete access to all of its payment processing features at no extra cost. Helcim also offers free native e-commerce, mobile app, and POS platforms.

Automation is Helcim’s greatest asset. Helcim offers automated volume discounts that eliminate the hassle of applying for better rates for businesses with fast-growing sales. Surcharging is automatically available for Helcim users who also process ACH payments and use Helcim’s smart terminal. Helcim’s mobile POS app is seamlessly integrated with the merchant account’s inventory catalog, CRM, and secure card vault.

The Helcim mobile POS app received a rating of 4.2 out of 5 from Apple users and 2.9 out of 5 from Android users. (Source: Helcim)

Payment methods: Helcim’s mobile POS app offers tap, chip, and PIN debit in-person credit card payment methods with the help of Helcim’s mobile card reader. Hardware-free payment options include manual entry, QR code, mobile wallet, and tap to pay.
App compatibility: The Helcim mobile POS app is exclusive to Helcim merchants and is available on iOS and Android smart devices. The app is getting better reviews from Apple than Android users.
Mobile card readers: Helcim’s mobile POS app works with the Helcim card reader that collects payments via EMV and contactless, plus a PIN debit option for debit card payments.
Scalability: Helcim’s pricing structure provides automated discounts for growing sales. Developer tools are available for custom branding, white-label embedded payment gateway, multi-currency, and multi-user functionalities.

Monthly account fee: $0
Mobile app fee: $0
Card-present fee: Interchange plus 0.15% + $0.06 to 0.4% + $0.08
Card-not-present fee: Interchange plus 0.15% + $0.15 to 0.50% + $0.25
American Express transactions: + 0.10% + $0.10
Volume discounts: Automated
Chargeback fee: $15 refundable
Mobile card reader cost: $99
Application/set-up fee: $0
Cancellation fee: $0

Shopify: Best for e-commerce

Overall Score

4.2/5

Pricing

3.13/5

Mobile app features

4.75/5

Support & reliability

4.38/5

User experience

4.69/5

Average user review scores

3.8/5

Pros

Full-suite e-commerce solution
Omnichannel features
Accepts PayPal payments

Cons

Requires e-commerce subscription
Reports of frozen funds
Low app ratings from Android users

Why I chose Shopify

Shopify is the leading e-commerce platform in the industry. It has expanded its features over the years with payment processing and point-of-sale and even built in-house business tools for marketing and fulfillment. Today, Shopify is the standard for e-commerce platforms in multichannel and omnichannel solutions.

Shopify joins our list of best credit card payment apps as the best recommendation for e-commerce businesses expanding into in-person sales. Its POS software is app-based, so it’s compatible with smart devices such as tablets for in-store setup and smartphones for selling on the go. Shopify’s pricing plans are designed to include features for businesses of all sizes.

The Shopify mobile POS app received a rating of 4.5 out of 5 from Apple users and 3.5 out of 5 from Android users. (Source: Shopify)

Payment methods: Shopify’s POS app supports a full suite of in-person payment methods, including hardware-free payments such as QR codes, mobile wallet, and tap to pay.
App compatibility: Shopify is an exclusive mobile POS app that’s compatible with both Apple and Android users. However, the iOS app is getting significantly better reviews from real-life users than the Android version.
Mobile card readers: Shopify provides an affordable proprietary mobile card reader that can process tap and chip payments as well as mobile wallet transactions. Swipe transactions are possible with the Shopify standalone terminal.
Scalability: Shopify offers an enterprise program that supports high-level customization for B2C, B2B, and large retail businesses. The developer tools can be used to create custom branding, multi-user profiles, and other POS functions that will also be reflected in the mobile app.

Shopify’s mobile POS Lite is free with any of Shopify’s e-commerce plans. Large businesses can upgrade to the paid POS plan to access advanced features.

Monthly account fee: $0–$89 (POS plans) + $25–$399 (ecommerce plans)
Mobile app fee: $0
Card-present fee: 2.4% + $0.10 to 2.6% + $0.10
Card-not-present fee: 2.5% + $0.30 to 2.9% + $0.30
American Express transactions: $0
Volume discounts: Via paid plans + custom plans for enterprise-level businesses
Chargeback fee: $15 refundable
Mobile card reader cost: $49
Application/set-up fee: $0
Cancellation fee: $0

Paysley: Best for growing your business with integrations

Overall Score

4.19/5

Pricing

3.54/5

Mobile app features

4.25/5

Support & reliability

4.69/5

User experience

4.38/5

Average user review scores

4.25/5

Pros

Compatible with popular payment processors
Two-way QuickBooks Online integration
Supports surcharging and level 2 and 3 data processing

Cons

Limited mobile card reader options
Merchant account services not included
Limited support hours

Why I chose Paysley

Paysley is a mobile-first payment processing platform that, like SwipeSimple, works with multiple merchant account service providers. It offers feature-based plans to fit small, mid-sized, and large businesses. Paysley’s features are designed primarily for contactless and remote payments, but it does support mobile card readers and payment terminals.

The standout feature of Paysley is its ability to scale with any business via integrations. It supports a two-way connection with QuickBooks Online and a direct integration with Planning Center, one of the most popular CRM software for nonprofits, particularly religious organizations. Paysley is commonly used by mid- to high-risk businesses such as property management companies, education, and consultation services. Leading payment processors like PaymentCloud and National Processing integrate with Paysley to provide mobile payment solutions.

The Paysley mobile app has yet to receive reviews from Apple users and 5 out of 5 from Android users. (Source: Paysley)

Payment methods: Paysley works with BBPOS mobile credit card readers for swipe, EMV, and contactless payments. Hardware-free payments on Paysley include manual entry, virtual terminal, QR code, tap-to-pay, and mobile wallet payments.
App compatibility: Paysley works with most payment processors and merchant account service providers.
Mobile card readers: Paysley can be connected to BBPOS mobile card readers and programmed into standalone card terminals. It also works with Ingenico, DejaVoo, Pax, and IDTech terminals.
Scalability: Custom plans are available for businesses that process high-volume transactions. Paysley also provides developer tools for customized payment processing, such as multi-currency payments. Large businesses can have multi-user access and custom analytics on their Paysley mobile app.

Note that Paysley’s pricing is only for its mobile payment processing platform. Businesses will need to sign up for a separate merchant account services provider that will have its own fees. The alternative is to sign up with a merchant service that already uses Paysley, which may give users better rates.

Monthly account fee: $69/$99/Custom
Mobile app fee: $0
Credit card transaction fee: Depends on payment processor
Platform fees:
- $0.20 per transaction
- $0.03 per text (SMS)
- $0.05 per picture text (MMS)
- $0.02 per email
Volume discounts: Depends on payment processor
Chargeback fee: Depends on payment processor
Mobile card reader cost: Contact Paysley for pricing
Application/set-up fee: $0
Cancellation fee: $0

CDGcommerce: Best for restaurants

Overall Score

4.18/5

Pricing

4.38/5

Mobile app features

4/5

Support & reliability

4.06/5

User experience

4.38/5

Average user review scores

4.25/5

Pros

Flexible volume-based pricing
Offline payment processing
24/7 customer support

Cons

Add-on fee for Amex transactions
Product catalog only by integration
Non-refundable chargeback fee

Why I chose CDGcommerce

CDGcommerce is a traditional merchant account services provider that offers credit card payment processing, including mobile payments. Its pricing structure is volume-based and caters to retail, restaurants, B2Bs, and nonprofits of all sizes.

Of all its compatibilities, CDGcommerce is ideal for growing restaurants—from kiosks to concession stands, food trucks, and other food businesses. It supports a range of restaurant POS systems, such as TouchBistro, Lightspeed, and HarborTouch, that can seamlessly integrate with CDGcommerce’s mobile payment app. The flexible pricing plans make it easy for businesses to upgrade their systems without needing to migrate to a different processor.

The CDGcommerce mobile payment app received a rating of 5 out of 5 from Apple users but has yet to receive reviews from Android users. (Source: CDGcommerce)

Payment methods: CDGcommerce supports a full suite of in-person payment methods, including hardware-free payments such as manual entry, QR code, and mobile wallet transactions.
App compatibility: The CDGcommerce mobile payment app is exclusive to CDGcommerce merchants. It received high user ratings from iOS users.
Mobile card readers: Users can swipe, dip, and tap credit cards on an AnywhereCommerce mobile card reader that’s linked to the CDGCommerce mobile payment app.
Scalability: CDGcommerce pricing is designed to provide the best transaction rates for businesses of all sizes. Developer tools can customize payment features for nonprofits, B2Bs, manufacturers, and more.

Monthly account fee: $0–$199
Mobile app fee: $0
Transaction fees:
- For businesses processing $1,000–$10,000 monthly
  - Card-present fee: 2.75% + $0.30
  - Card-not-present fee: 2.90% + $0.30
  - American Express transactions: +0.25%
- For businesses processing $10,001–$200,000 monthly
  - Card-present fee: Interchange plus 0.25% + $0.10
  - Card-not-present fee: Interchange plus 0.30% + $0.10
- For businesses processing $200,000+ monthly
  - Card-present fee: Interchange plus $0.05–$0.10
  - Card-not-present fee: Interchange plus $0.05–$0.10
Volume discounts: Volume-based pricing
Chargeback fee: $25
Mobile card reader cost: $99
Application/set-up fee: $0
Cancellation fee: $0

Stripe: Best for advanced customizations

Overall Score

4.16/5

Pricing

2.5/5

Mobile app features

4.5/5

Support & reliability

4.69/5

User experience

4.69/5

Average user review scores

4.45/5

Pros

Integrates with other payment platforms
Advanced customization features
Custom pricing for large businesses
Industry-leading API and developer documentation

Cons

Add-on fees for invoicing and recurring billing
Limited in-person payments for native mobile app
Requires third-party or custom developer for card-reader payments

Why I chose Stripe

Stripe is a payment services platform that also comes with a merchant account. It is developer-friendly payment software known for its advanced customization features. Stripe’s payment processing service also powers Lightspeed, Shopify, WooCommerce, and other popular business tools.

It wasn’t until recently that Stripe launched its native mobile app, Stripe Dashboard. The app is highly rated by both iOS and Android users, despite its limited in-person payment capabilities. That said, third-party Stripe apps are available to be used in conjunction with Stripe’s mobile card reader. For larger businesses, Stripe offers well-documented APIs and developer tools to create a mobile app customized to their needs.

Stripe’s mobile dashboard app received a rating of 4.7 out of 5 from Apple users and 4.2 out of 5 from Android users. (Source: Stripe)

Payment methods: Stripe’s mobile dashboard app can process hardware-free payments such as manual entry, QR code, and tap to pay. Users can also accept swipe, chip, and tap credit cards if they use a third-party or custom-developed mobile payment app.
App compatibility: The Stripe mobile app is compatible with iOS and Android devices and is exclusive to Stripe users.
Mobile card readers: Stripe offers a 3-in-1 mobile credit card reader that can process magstripe, EMV, and contactless payments, including mobile wallet transactions.
Scalability: Stripe’s well-documented APIs and advanced developer resources power its potential for growing with a business. Businesses can customize their mobile payments app, and Stripe provides a list of developer solutions (e.g., Ciklum and Happy Cog), enterprise POS and PMS integrations (e.g., Microsoft Dynamics and Adobe Commerce), and Stripe Professional Services.

Monthly account fee: $0
Mobile app fee: From $0 (for custom-designed apps); third-party mobile payment apps will charge anywhere from 1% to 1.5% per transaction.
Card-present: 2.7% + $0.05
Keyed-in: 3.4% + $0.30
Touchless: 2.9% + $0.30
Tap-to-pay on mobile: +$0.10 per authorization
Volume discounts: Custom interchange-plus pricing for larger businesses
Chargeback fee: $15
Mobile card reader cost: $59
Application/set-up fee: $0
Cancellation fee: $0

What to look for in a credit card payment app

To get the most out of a credit card payment app, businesses need to consider the cost-effectiveness of each option. This helps ensure that users choose a provider that can maximize savings while also providing features they need and with room to grow.

Flexible pricing structure

As businesses grow, the priority in pricing shifts from minimal upfront costs to volume discounts. The ideal credit card payment app should support flexible pricing that will allow businesses to upgrade their services without interrupting business operations.

Variety of payment methods

The best credit card payment app should provide a full suite of in-person payment methods. This means it should be able to work with a card reader that supports swipe, EMV, and contactless payments. Hardware-free payment methods should also be available for businesses that prefer not to invest in a credit card reader for one reason or another.

Level of customization

Credit card payment apps should be equipped with a variety of customization options. This includes additional payment processing services such as invoicing, payment links, card vault, and surcharging tools. It should also provide customizations that support business growth, such as developer tools to create industry-specific features and various integrations with business systems.

Security measures

Every payment processing service should be level 1 PCI DSS compliant. Users should also look for available tokenization and encryption tools. Ideally, payment processors should also offer chargeback management and customizable fraud protection features.

App and card reader reliability

It’s important that a credit card payment app and a card reader are reliable. The best option should not disrupt business operations with bugs resulting from app updates or card readers that often get disconnected. It’s also ideal for the app to be able to process credit card payments even without an internet connection. Users should also check real-life user reviews for any complaints about frozen funds or failed transactions.

Find the right credit card payment app

The best credit card payment app will depend on a merchant’s business needs. And because not all businesses are the same, choosing the right payment app differs as sales volume size and industry change.

We recommend:

SwipeSimple for businesses that require flexibility and want a reliable brand. It works with popular payment processors and is highly rated by real-life users.

Stax is the best option for large-volume businesses. It provides robust payment services with native customization features and developer tools that allow the system to grow along with the business.

New businesses will find Square’s credit card payment app the best value for money, especially for those working on a budget. Its forever-free features, which include the mobile POS app, make Square the easiest choice if you are building a business from the ground up.

Choose Helcim if you have a fast-growing business. Its automation tools allow users uninterrupted access to payment services as well as fee-saving features such as volume discounts, surcharging, and level 2 and 3 data processing.

For ecommerce businesses, Shopify is the best option. Not only is it the leading ecommerce platform in the industry, Shopify also provides a POS solution (including a mobile POS app) and robust omnichannel tools.

We also recommend Paysley for businesses that value integrations. Paysley is a popular credit card payment app used by payment processors like PaymentCloud and National Processing.

CDGcommerce is the best credit card payment app for restaurants of all sizes. Aside from flexible pricing plans, CDGcommerce integrates with a variety of restaurant POS and works alongside the mobile app ideal for kiosks, concessionaire stands, and sit-down restaurants.

Last but not least, Stripe is our choice for businesses that look for highly customized payment solutions. This includes a choice of basic, custom-designed, and third-party Stripe mobile POS app.

Frequently asked questions (FAQs)

Yes, most payment processors provide a free mobile POS or payment app. These payment apps are compatible with tablets and smartphones and can be connected to a mobile credit card reader that can process swipe, chip, and tap payments.

Most credit card payment apps are free to use unless they come from a third-party app developer. The only monthly fees involved are the costs to process transactions.

The best credit card payment app is one that provides payment methods and features that match your business needs. Also, consider your business sales volume and choose a payment processor with a free payment app that can offer you the most savings.

The post Best Credit Card Payment Apps in 2024 appeared first on TechnologyAdvice.

Ecommerce Payment Processing: The Complete Guide for 2024

Anna Lynn Dizon — Wed, 31 Jul 2024 22:27:37 +0000

Key takeaways

Ecommerce payment processing is a seamless integration of payment services within an online seller’s website.
Multiple online payment methods are necessary to minimize cart abandonment.
Businesses need to identify the right combination of online payment methods in order to maximize their sales.

One key factor of growing business is expanding to multi channel sales. Retailers, restaurant owners, and service professionals that start transacting in-person would eventually want to reach remote customers to build a wider client base. An ecommerce channel allows these businesses to sell online but would not be complete without having the ability to efficiently and securely accept payments.

What is ecommerce payment processing?

Ecommerce payment processing is the process that allows businesses to accept payments online. It consists of a checkout platform for entering payment details, a payment software that securely sends and receives transaction details between merchants and financial institutions, and the banking service that holds the source of funds for the customer.

Ecommerce payment processing vs. traditional online payment processing

The difference between ecommerce vs traditional payment processing is the payment gateway.

In traditional online payment processing flows, customers are redirected to another site or subdomain to complete the transaction. This third-party payment gateway website, despite being secure, doesn’t make customers feel secure about their purchase and creates opportunities for cart abandonment.

In contrast, the ecommerce payment processing flow integrates the payment gateway service within the seller’s website. This means that once customers click the “Checkout” button, the payment form is hosted within the same site, minimizing the risk of cart abandonment and improving the likelihood of completing the purchase.

Ecommerce payment methods

As with in-person transactions, businesses should provide customers with a variety of payment methods to use online. The availability of options increases the business competitiveness and maximizes sales opportunities. Popular online payments include:

Credit and debit cards: A line of credit approved by financial institutions and card networks based on an individual or a company’s credit standing. Customers enter their credit card information on an online checkout form.
Digital Wallets: Digital wallets securely store credit/debit card and banking payment information. Sellers can integrate with digital wallet brands as an alternative to integrating with bank or card networks one-by-one.
Buy now, pay later (BNPL): BNPL services allow customers to make online purchases on an installment basis, while the seller still receives the payment upfront. There are many BNPL providers and sellers will need a payment integration to offer this payment option.
Bank transfer: A payment that transfers directly from a customer’s bank to the seller. Online banking can be from an app on a customer’s smartphone or a web-based platform where customers can log in to send payments for an online purchase. The seller’s website will need a payment integration with the customer’s bank.

How does ecommerce payment processing work?

Ecommerce payment processing begins with a combination of key elements. Each one serves a function that contributes to the secure and efficient transmission of transaction and payment information between customer and seller’s financial institutions.

This includes:

Payment gateway

A customer-facing software that provides a platform where customers can enter their payment information. It is connected to the payment processor where the payment sends the data after encryption.

Payment processor

A payment processor serves as the middleman for the customer and the seller’s financial institutions. It provides the technology to process different payment methods and securely send both transaction payment data in the proper format for authentication, authorization, processing, and settlement of online payments.

Merchant account

A merchant account is where the proceeds of the seller’s sales are deposited after transactions are settled. It’s common for merchant account providers to have payment processors as agents in issuing merchant accounts to businesses.

Financial institutions

These are organizations that provide businesses and customers with instruments to initiate transactions as well as approve or deny payments.

Merchant acquirers: Are banks that approve a business for a merchant account. This comes after the bank evaluates the risk of suffering chargebacks and shut down based on the nature of the business.
Card issuer: Are banks that approve a customer for a credit card. This also comes after the bank evaluates the risk of a customer’s inability to pay based on their creditworthiness.
Card networks: Are institutions that provide banks with the ability to approve customers with a credit line to make purchases in-person and online. (Visa, MasterCard, American Express, Discover)
ACH: An intermediary organization in the US that regulates transactions processed via direct-to-bank deposits such as e checks and ACH debits/credits. Similar financial organizations exist in other countries.

Security and compliance

Ecommerce payment processing adheres to strict standards for handling sensitive payment information. This includes implementing fraud prevention and detection tools, as well as encrypting processed and stored data. The Payment Card Industry Data Security Standard (PCI DSS) for example, is a regulatory body that sets the standards for handling transaction information.

Step-by-step ecommerce payment process

The ecommerce payment process involves the customer, the seller’s website, the website’s payment gateway, and payment processor.

How to choose the best ecommerce payment processor

Not all ecommerce payment processors are built the same so it is up to the business owner to look for a provider that best matches their payment processing needs. That said, there are some common features to look for when choosing an ecommerce payment processor.

PCI compliance

Businesses that accept credit card payment are expected to comply with Payment Card Industry Data Security Standard (PCI DSS). This is particularly important when accepting payments online and storing customer payment data for future use. By default businesses have the responsibility to meet this compliance but the best ecommerce payment processors would offer services that relieves the business owner from many of these tasks such as encryption and secure card vaults.

Chargeback management tools

Remote, including ecommerce, payments are riskier than in-person transactions which is why online transaction rates are more expensive. Some ecommerce businesses even struggle getting approved for a merchant account. To mitigate the risk, choose an ecommerce payment processor that offers native chargeback management features, allowing businesses to monitor and promptly respond to chargeback claims.

Variety of payment methods and services

Every business has different payment method requirements based on its target customers’ preferences. As we have listed above, accepting credit card payments is just one option, and the other alternatives offer a combination of options. Payment services such as invoicing, virtual terminal, and subscriptions should also be taken into consideration. Read more: Our picks for top virtual terminal providers.

Value-for-money

The cost of payment processing can take a huge portion of your revenue, so maximizing the features and services you get from an ecommerce payment processor is an important step. Consider a pricing structure that will provide the most savings based on your processing volume and look out for additional costs involved in using payment services that’s most important to earning your revenue. Last but not the least, consider working with an ecommerce payment processor that already provides an ecommerce platform.

Read more: Our recommendations for cheapest credit card payment processors

Ability to grow with your business

Scalability should be a key factor when choosing an ecommerce payment processor. Choose a provider that supports a variety of integrations and developer tools. Ecommerce payment processors that offer low rates and a set of payment plans providing access to advanced customization features may be a better choice than free plans with limited upgrade options.

FAQs

Payment processing for ecommerce involves the transmission of transaction and payment information through an online payment gateway. This platform is connected to a payment processor that facilitates the validation, authorization, approval, and settlement of ecommerce transactions.

Any purchase and payment of goods or services from an online platform such as a website is an ecommerce transaction. Examples of these are customers buying clothes from GAP’s online store and ordering food delivery from McDonald’s website.

Credit cards, digital wallets, and BNPL are the most popular online payment method for individual customers. ACH bank-to-bank transfers and digital checks are commonly used in B2B transactions on top of credit cards.

The post Ecommerce Payment Processing: The Complete Guide for 2024 appeared first on TechnologyAdvice.

5 Best High-Risk Merchant Account Providers in 2024

Anna Lynn Dizon — Fri, 26 Jul 2024 15:18:27 +0000

When evaluating the best high-risk merchant account providers, I focused on finding those that offer a wide range of payment methods and payment processing tools. I looked into each provider’s cost-effectiveness and ability to scale with fast-growing businesses and narrowed down our list to the following:

PaymentCloud
First Card Payments
Payline Data
Durango Merchant Services
Bankful
Host Merchant Services
PayKings
Flowhub Pay
National Processing
High Risk Pay
Shift4
Easy Pay Direct

I then hand-picked six stand-out systems based on unique features that offer different business types the best value. Specifically, I considered 20 data points across the categories of Pricing, Features, Support and Stability, User Experience, and User Reviews.

A high-risk merchant account is a service that allows high-risk businesses to process credit card transactions. Businesses are considered “high-risk” if they operate in a highly regulated industry, use a business model that is highly susceptible to chargebacks, or have a poor credit history.

Most high-risk merchant account services charge higher-than-average payment processing fees and have stricter application processes. However, there are providers that offer cost-effective plans and features tailored to each business’s needs.

Based on our evaluation, the best high-risk merchant account providers for 2024 are:

PaymentCloud: Best overall high-risk merchant account
Durango Merchant Services: Best for difficult-to-place high-risk business
First Card Payments: Best for high-risk B2B transactions
High Risk Pay: Best for businesses with bad credit history
Flowhub Pay: Best for cannabis payment processing

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 high-merchant account providers compared

Our Rating (Out of 5)

Monthly Account Fee

Works with MATCH List*

High-Risk Account Approval Rate

Approval Processing Time

PaymentCloud

4.57

$10–$45

Yes

98%

48 hours

Durango Merchant Services

4.33

$30

Yes

Not disclosed

4–6 business days

First Card Payments

4.23

Custom

Yes

Not disclosed

24–48 hours

High Risk Pay

4.21

$9.95

Yes

99% (95% for bad credit)

24–48 hours

Flowhub Pay

4.13

Not disclosed

1 business day

*The Member Alert to Control High-Risk Merchants (MATCH) list is a register of all merchants that have had their accounts terminated in the past. Previously known as terminated merchant file (TMF) list, these businesses were found to be in violation of their merchant services agreement. Businesses remain on the MATCH list for a period of seven years.

PaymentCloud: Best overall high-risk merchant account provider

PaymentCloud supports a wide range of high-risk industries (Source: PaymentCloud)

Overall Score

4.57/5

Pricing

4.38/5

Features

4.75/5

Support & Reliability

4.69/5

User Experience

4.38/5

Average User Review Scores

4.65/5

Pros

Customizable fee structure
Payment gateway agnostic
Free credit card processing
Works with MATCH list businesses

Cons

Monthly fees
Lacks same-day funding option

Why I chose PaymentCloud

PaymentCloud is a high-risk payment processor known for its white-glove account management service. It supports a long list of high-risk industries, offering top-notch application and onboarding assistance to potential clients. PaymentCloud specializes in working with businesses included on the MATCH list. Other payment processors, including Payline Data, partner with PaymentCloud to offer high-risk merchant services.

I like PaymentCloud’s versatility and overall highly customizable payment processing tools, which allow the provider to tailor services specifically to what a business needs. PaymentCloud can customize its pricing structure according to what clients are used to. It can also integrate with any payment gateway, so companies can continue using their current platform and avoid unnecessary business interruption.

PaymentCloud is compatible with most popular point-of-sale (POS) systems like Clover and offers a free smart terminal for every merchant account.

Payment gateway agnostic: PaymentCloud works with all payment gateways, so businesses can continue using their current platforms and avoid downtime. It also means PaymentCloud can recommend and migrate the business to an alternative software that can provide payment services tailored to their business requirements.
Customized fee structure: PaymentCloud offers completely customized pricing for each of its clients. Not only does it provide transaction rates based on business profiles, but PaymentCloud can also adjust to the pricing structure (interchange, subscription-based, flat rate, tiered) that potential clients are most familiar with.
Hands-on onboarding support: PaymentCloud is known for its hands-on approach to client onboarding service. From providing detailed cost analysis to help businesses maximize their savings to customizing high-risk payment services, PaymentCloud’s experts assist their clients every step of the way.
Free credit card processing: PaymentCloud supports online and in-person free credit card processing for high-risk merchants via a process known as credit card surcharging, which essentially passes on the fees to customers. It offers month-to-month contracts, surcharge-compliant card terminals, and 24/7 customer support.

Read more: Ultimate guide to payment processing

PaymentCloud is compatible with all payment gateway platforms. (Source: PaymentCloud)

Start your high-risk merchant application with PaymentCloud’s quick online application form. (Source: PaymentCloud)

PaymentCloud offers custom pricing based on the client’s business profile. The figures below are average fees provided by a PaymentCloud representative. Contact PaymentCloud for a custom quote.

Monthly Fee: $10–$45
Mid-risk Transaction Fee: 2.3%–3.4%
High-risk Transaction Fee: 2.7%–4.3%
Early Termination Fee: Waived
Payment Gateway Fee: $15
Virtual Terminal Fee: $15–$45
Rolling Reserve Requirement*: 0–10%
Chargeback Fee: $25
Free smart wireless terminal

*A rolling reserve requirement is part of the merchant account agreement where merchants will be required to set aside a portion of their sales for a specific period. This policy is imposed by merchant account service providers as a buffer or safeguard from chargebacks. The rate of rolling reserve depends on the acquiring bank’s assessed risk of a business. While rolling reserves aren’t typical for low-risk merchant accounts, they are a common practice for high-risk merchant accounts.

Durango Merchant Services: Best for businesses in hard-to-place industries

Partial list of high-risk businesses supported by Durango Merchant Services (Source: Durango Merchant Services)

Overall Score

4.33/5

Pricing

4.38/5

Features

4.5/5

Support & Reliability

4.38/5

User Experience

4.38/5

Average User Review Scores

4/5

Pros

Specializes in hard-to-acquire credit card processing
Supports omnichannel payments
Local and international banking relationships
Dedicated account managers

Cons

Lacks same-day funding option
Does not work with marijuana-related businesses

Why I chose Durango Merchant Services

With over 25 years in the industry, Durango Merchant Services (DMS) has developed a reputation for successfully providing merchant accounts to hard-to-place businesses such as auction houses, art dealers, adult content services, money remittances, and payday loans. It provides potential clients with dedicated high-risk expert account managers, plus a long list of local and international banking relationships, to increase their chances of getting approved for a merchant account.

Durango Merchant Services has had great success with providing merchant accounts to businesses that have already been declined by other providers. Like PaymentCloud, it works with businesses on the MATCH list and offers customized pricing based on a combination of factors such as risk, credit, and payment collection method.

Recurring billing services: Durango Merchant Services provides recurring billing and subscription management features. It also comes with a customer vault where client payment information is securely stored in a level 1 Payment Card Industry (PCI)-certified data storage facility.
Authorize.net emulator: The Authorize.net emulator is an optional integration available for businesses already using this payment gateway and migrating to Durango. With an emulator, your new payment gateway can be configured to handle transaction processing in the Authorize.net format, allowing you to continue using your current shopping carts and other integrations linked to your Authorize.net account.
Fraud protection: Durango Merchant Services provides businesses with fraud protection/fraud management tools that allow the business to set rules based on its acceptable risk level. It also helps users track and manually review every transaction to minimize the risk of chargebacks.
Multicurrency support: Durango Merchant Services offers a multicurrency merchant account that allows businesses to accept 26 international currencies from more than 200 countries. Its proprietary payment gateway can be configured to display in 15 different languages based on the customer’s location. Businesses can choose between fixed and variable currency exchange rates from their dashboard settings.

Durango’s payment gateway includes recurring billing and virtual terminal tools (Source: Durango Merchant Services)

Call or fill out the online form to start your merchant account application with Durango Merchant Services (Source: Durango Merchant Services)

Note that Durango Merchant Services offers custom pricing. The figures below are an average of fees provided by a DMS representative. Contact Durango Merchant Services for a personalized quote.

Monthly fee: $30
Ecommerce/MOTO: Interchange plus 0.25%
Payment gateway: 10 cents per transaction
Authorization fees: 15–25 cents
Rolling reserve requirements: 0%–10%
Chargeback fee: $25
Early termination fee: $0

First Card Payments: Best for high-risk B2B transactions

First Card Payments Supports a wide list of high-risk industries (Source: First Card Payments)

Overall Score

4.23/5

Pricing

4.38/5

Features

4.5/5

Support & Reliability

4.38/5

User Experience

4.38/5

Average User Review Scores

3.5/5

Pros

Flexible rates
Mostly month-to-month contract
Works with MATCH list businesses

Cons

May not be the best option for new businesses
Long-term contract for certain cases
Not a lot of information on the website

Why I chose First Card Payments

First Card Payments is a one-stop-shop payment solution for high-risk merchant accounts. With over two decades in the industry, First Card Payments has built relationships with over 30 banks and independent sales organizations (ISOs) to provide in-person and online payment processing services as fast as 24 hours. First Card Payments also claims that it can ensure at least 25% savings on a company’s current fees for 99% of its clients.

First Card Payments works with businesses on the MATCH list and companies with at least six months of credit card processing history. It specializes in B2Bs, providing tailored payment processing services, competitive pricing, and advanced fraud protection features. There are no application fees, set-up fees, or long-term contracts for 90% of their clients.

Customer-centric: First Card Payments offers a customer-centric approach to its merchant account services. Each client is provided with a suite of payment solutions specifically tailored to their business needs. While they generally offer interchange-plus rates, First Card Payments’ pricing structure can also be customized to the client’s preference.
Custom integration with any business software: First Card Payments provides full custom integration with any CRM, accounting, POS, and other business systems. So once a client is approved for a merchant account, First Card Payments can integrate its payment gateway service into the client’s current business software.
Web development services: One of First Card Payments’ unique services is its own web development service through its partnership with Zulushack Digital. With this, high-risk businesses can get a custom website designed to its specific requirements. If you already have a website, First Card Payment can help with any redesign, repairs, plugin installation or updates, migration, site management, and more.

Start your merchant application with First Card Payments by filling out the online form (Source: First Card Payments)

Please note that like most of the other high-risk merchant providers in our list, First Card Payments offers custom pricing. The figures below are estimates provided by a First Card Payments representative. Contact First Card Payments for a personalized quote.

Monthly Fee: Custom
Transaction Fees: Interchange plus 0.25%–2.5% + 10–20 cents
Rolling Reserve Requirements: Not specified
Chargeback Fee: $15–$35
Application and Setup Fee: $0
Early Termination Fee: $0

High Risk Pay: Best for businesses with poor credit history

High Risk Pay provides fast approvals for businesses classified as high-risk. (Source: HighRiskPay)

Overall Score

4.21/5

Pricing

4.06/5

Features

4/5

Support & Reliability

4.38/5

User Experience

4.69/5

Average User Review Scores

3.9/5

Pros

Approvals as fast as 24 hours
High approval rate for businesses with bad credit rating
Low monthly fee

Cons

Not a lot of available information on its payment services
Less competitive rates
Lacks same-day funding option

Why I chose High Risk Pay

High Risk Pay is a leading provider of merchant accounts for businesses with bad credit ratings. It boasts a 95% approval rate for businesses with bad credit and 99% approval rate for all other high-risk merchant accounts.

Aside from high approval rates, High Risk Pay is also known for its fast turnaround time for approvals. Businesses can be approved for a merchant account in as fast as 24 hours. High Risk Pay also works with businesses in the adult entertainment, CBD, and travel industries, as well as with startups, e-commerce, and subscription-based businesses that have been declined a low-risk merchant account.

High Risk Pay offers the same pricing structure to all businesses, which is unique. Most processors offer custom rates for high-risk businesses, depending on each business’ specific risk level. While this offers a lot of transparency, the flat rates offered by High Risk Pay might not be as competitive as what you may find elsewhere.

Supports businesses regardless of credit history: Businesses that have been declined a low-risk merchant account due to poor credit scores can get approved to accept credit cards by matching them with one of High Risk Pay’s banking relationships. High Risk Pay will assist in collecting information that can help increase a business’s chances of getting approved for a merchant account.
Works with most payment processors and technology: High Risk Pay partners with most payment processors and can provide businesses with the ability to accept credit card payments in-person, online, from overseas, and through subscriptions. Once approved, High Risk Pay can set your business up with ready integrations so you can start accepting payments in as fast as 48 hours.
High-risk payment gateway: Compared to other providers on our list, High Risk Pay does not offer much customization. However, it does provide a payment gateway designed specifically for high-risk businesses. In addition to the standard payment links, shopping carts, and invoicing tools, this payment gateway is equipped with load balancing features, multi-currency, subscription management, and built-in fraud management services.

High Risk Pay supports even some businesses in high-risk industries that are typically not served by payment processors (Source: HighRiskPay)

High Risk Pay website includes a simple online sign-up form. (Source: HighRiskPay)

Monthly Fee: $9.95
Transaction Fee: From 1.79% + 25 cents to 2.95% + 50 cents
Early Termination Fee: $0
Rolling Reserve Requirement: Not specified

Flowhub Pay: Best for cannabis payment processing