The best online payment processing companies provide merchants with online checkout pages that can accept credit card payments through websites, digital invoicing, and virtual terminals. Top online payment processors also integrate with social selling tools and other payment apps such as buy now, pay later (BNPL), and digital wallet platforms.
We’ve reviewed dozens of payment processors over the years and found the best 10 for small businesses.
- Stripe: Best overall
- Chase Payment Solutions: Best for fast deposits
- Helcim: Best for automated volume discounts
- Square: Best for retailers wanting to add an online option
- Shopify: Best for ecommerce merchants
- PayPal: Best for selling on social media (and as an additional payment option)
- Authorize.net: Best payment gateway
- CardX: Best for free online credit card processing/surcharging U.S. businesses only
- Wave: Best for gig workers and solo professionals
- QuickBooks Payments: Best for QuickBooks Online users
Accept payments anywhere customers are: In-person, Online, Remote, Buy Now Pay Later |
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Best Online Credit Card Processing Companies Compared
Monthly fee | Online payment fee | Chargeback fee | Invoices | Virtual terminal | Integrations | |
---|---|---|---|---|---|---|
$0 | 2.9% + 30 cents | $15 | Costs extra | ✓ | Excellent | |
From $0 | 2.9% + 25 cents | $25–$100 | Single and recurring | ✓ | Good | |
$0 | Interchange plus 0.15% + 15 cents to 0.50% + 25 cents | $0–$15 | Single and recurring | ✓ | Good | |
From $0 | 2.9% + 30 cents | Waived up to $250 per month | Single and recurring | ✓ | Some | |
From $5 | 2.9% + 30 cents | $0–$15 | Single and recurring | ✓ | Excellent | |
$0 | 2.99% + 49 cents | $0–$20 | Recurring costs extra | Costs extra | Some | |
$25 | 2.9% + 30 cents | Varies | Single and recurring | ✓ | Excellent | |
From $29 | 2.91% (debit cards) | N/A | Single and recurring | ✓ | Some | |
$0 | 2.9% + 60 cents | $0–$15 | Single and recurring | ✓ | Some | |
From $30 | 2.9% + 25 cents | $25 | Single and recurring | ✓ | Excellent | |
How Online Payment Processing Works
In order to accept credit cards online you will need to set up a merchant account with a payment processor. The payment processor will then provide you with tools to create an online checkout link for your website as well as a hosted payment link that you can add to your digital invoice or anywhere you sell your product such as on social media platforms, digital flyers, and newsletters.
The process starts when:
- Your customer clicks on the “buy now” or “checkout” link
- Your customer is redirected to your online checkout page
- Customer is prompted to provide their payment information
- Customer reviews the products and terms and confirms the payment
This initiates the transaction processing from the backend where:
- Through its security features, your payment processor verifies that the card is valid and forwards the payment request to the card network.
- The card networks forward the payment information to your customer’s bank (issuing bank).
- The customer’s bank verifies if the customer is within their card limit to fund the transaction and responds to the card network with either an approved or declined payment request.
- The card network relays the result of the payment request to the merchant processor.
- The merchant processor approves or rejects the transaction based on the result.
Note that this happens in mere seconds and your customer is notified through the same checkout page whether the transaction has been approved or declined. Transactions can also be rejected if your customer’s credit card information fails your merchant processor’s authentication process in Step 1.
- If the purchase is successful, the merchant processor sends your customer a digital receipt on your behalf
- Otherwise, your customer can add a different credit card information on the checkout page and retry the transaction.
For an in-depth guide, read our article on guide to payment processing for small businesses.
Stripe: Best Overall Online Credit Card Processor
Pros
- Extremely flexible
- Hundreds of of integrations, great API
- 135+ currencies, local payment methods
Cons
- Service fee for invoicing and recurring billing payments
- Requires some technical expertise and resources
- Many small additional fees for features
Stripe is a highly popular credit card processor that often makes our lists of the best merchant services and payment gateways, specifically for its online payment processing tools. Its invoicing and inexpensive ACH transaction fees also make it a good choice for B2B payment processing. Stripe has the most integrations of any software on our list, and its detailed help sections make it a favorite for websites and other software developers.
With Stripe’s free account, online merchants get access to all of its payment processing tools including advanced payment gateway and fraud management, a virtual terminal, an account updater, and 25 invoices per month. However, it charges extra for some services and lacks ready-to-use mobile payment apps. If you like Stripe for its developer-friendly customization features but prefer a dedicated merchant account, consider Braintree.
- Monthly fee: $0
- Transaction processing fees:
- Ecommerce: 2.9% + 30 cents
- Card-present: 2.7% + 5 cents
- Keyed-in: 3.4% + 30 cents
- Touchless: 2.9% + 30 cents
- Tap-to-pay on mobile: +10 cents per authorization
- Virtual terminal: 2.9% + 30 cents
- ACH: 0.8%, $5 cap
- Invoicing: + 0.4%–0.5%
- Recurring Billing: + 0.5%–0.8%
- International payments: + 1.5% fee, 1% spread for currency conversion
- Stripe Checkout: $10 per month if using custom domain
- Chargeback fee: $15
- Deposit speed: 2 business days, or 1%, minimum 50 cents for instant payout
Chase Payment Solutions: Best for Fast Deposits
Pros
- Free same- and next-day funding
- Faster approval of international payments
- Access to all payment types
Cons
- Monthly fee for ACH transactions
- Maintaining bank balance required for same-day funding
- Chargeback fee can increase based on volume
Chase is one of the few large financial institutions in the US that directly works with small merchants, providing traditional merchant account services. This means that having a merchant account with Chase gives businesses access to fast deposits, as well as higher chances of approval in accepting cross-border payments with Chase’s strong connections to global banks.
Most traditional merchant account service providers provide a wide range of payment services, but funding times take at least two business days, some with an option for next-day funding with a fee. Chase offers the fastest deposit times for free as long as you sign up for a Chase business checking account. You also get access to free invoicing, virtual terminal tools, advanced customer insights, and hundreds of integrations.
- Monthly fee: $0–$15*
- Card-present: 2.6% plus 10 cents
- Card-not-present: 2.9% plus 25 cents
- Keyed-in transaction fee: 3.5% + 10 cents
- Automated clearing house (ACH) processing fee: $25/month for 25 transactions, $0.15 for additional
- Chargeback fee: $25 to $100 per transaction depending on dispute volume
*Access to same-day funding with a Chase Business Checking account requires a $2,000 monthly maintaining balance or a monthly service fee of $15 will be imposed.
Helcim: Best for Automated Volume Discounts
Pros
- No monthly fees or long-term contracts
- Interchange + pricing, with automatic volume discounts
- Free access to payment processing tools and customer self-service portal
Cons
- Charges extra for Amex payments
- Limited business integrations
- Can be expensive for businesses processing under $50,000/month
If you don’t need all the versatility and integrations Stripe can provide, Helcim is a cheaper alternative that offers high-quality credit card processing service. Helcim provides the best value for high-volume businesses, with interchange-plus pricing, automated volume discounts, and smart zero-cost processing. In addition, it offers free tools for invoicing, recurring payments, ecommerce, and a virtual terminal.
Other than the reasonable rates, Helcim has few additional charges. Even the chargeback fees are refunded to you if you win the dispute. It also works for international credit card processing and has Level 2 or Level 3 processing capability for B2B sales.
Since our last update, Helcim has updated its pricing with processing fees that now range from interchange plus 0.15% + 6 cents to 0.4% + 8 cents for card-present transactions, and interchange plus 0.15% + 15 cents to 0.50% + 25 cents for card-not-present transactions. Automatic discount now begins at $50,001 in monthly sales volume so merchants that process smaller volumes per month should consider better alternatives.
Monthly Sales Volume | Card-Present Rate Interchange plus | Keyed and Online Rate Interchange plus |
---|---|---|
$0–$50,000 | 0.4% + 8 cents | 0.50% + 25 cents |
$50,001–$100,000 | 0.35% + 7 cents | 0.45% + 20 cents |
$100,001–$500,000 | 0.25% + 7 cents | 0.35% + 20 cents |
$500,001–$1,000,000 | 0.20% + 6 cents | 0.25% + 15 cents |
$1,000,001+ | 0.15% + 6 cents | 0.15% + 15 cents |
Other transaction fees:
- American Express transactions: 0.10% + 10 cents
- Domestic ACH Transfers: 0.5% + 25 cents per transaction
- Chargeback fees: $15 (refundable)
Square: Best for Retailers Also Needing Online Payment Processing
Pros
- No monthly processing fees
- Free POS software and website builder
- Multiple add-on tools to grow your business
Cons
- Locked into Square’s ecosystem
- Not for high-risk markets
- Limited international scope
Square often tops our lists for credit card processors for retail, mobile, and more. Here, we find it the best for retailers that may have a physical store but are expanding online, or those looking to start an online store with the option of selling at physical locations as well. Its online and physical systems sync, making bookkeeping a breeze, and it offers excellent tools that can grow with your business.
With free POS software, payment processing, website builders, invoicing, virtual terminal, and team management, merchants can set up a business with practically zero upfront or monthly software costs. However, Square Payments is locked into Square’s ecosystem, where scalability is limited for larger volume merchants that need to manage complex inventory. For example, merchants dealing primarily with cross-border sales should look at other options like Stripe, while those who need B2B payment processing should consider Helcim instead.
- Card-present transaction fee: 2.6% + 10 cents per transaction
- Online transaction fee: 2.9% + 30 cents per transaction
- Keyed-in payments and card-not-present: 3.5% + 15 cents per transaction
- Invoice payments: 3.3% + 30 cents per transaction
- Recurring billing and card-on-file transactions: 3.5% + 15 cents per transaction
- Volume discounts: Square will create custom pricing packages for any business processing over $250,000 in credit card sales.
Shopify: Best for Ecommerce Merchants
Pros
- Easy signup
- Fully integrated with Shopify platform
- Shop Pay one-click checkout
Cons
- Locked into Shopify POS system
- Limited multi currency options
- Accepting cross-border payments requires higher Shopify plan
Shopify is a well-known name in the ecommerce industry. Sign-up is easy and every merchant account comes with Shopify Payments for payment processing. By itself, Shopify Payments offers the usual payment methods you would find in most popular merchant processors. It’s the built-in ecommerce tools that make it stand out from the rest of the providers in our list. As a fully equipped ecommerce platform, it allows merchants to accept cross-border sales as well as bulk orders for business clients.
With Shopify, merchants can create a fully customizable website with checkout functionalities that already incorporates shipping management. Shopify also comes with both merchant and customer-facing mobile apps that significantly boost remote, mobile sales.
Shopify Plan | Monthly Subscription Fee | Online Transactions (Domestic) | In-person Transactions | Waived Shopify Transaction Fee** |
---|---|---|---|---|
Starter* | $5 | 2.9% + 30 cents | N/A | N/A |
Basic | $39 | 2.9% + 30 cents | 2.7% | 2.0% |
Shopify | $105 | 2.6% + 30 cents | 2.5% | 1.0% |
Advanced | $399 | 2.4% + 30 cents | 2.4% | 0.5% |
There are no monthly fees to use Shopify Payments as it comes free with any type of Shopify ecommerce account. While it’s possible to use other payment methods other than Shopify Payments on the platform, merchants will be imposed with a commission fee for each transaction.
Learn more about Shopify Payments:
PayPal: Best for Selling on Social Media & as an Additional Payment Option
Pros
- Free invoicing and POS software
- Known and trusted platform by consumers
- Seamless online checkout integration
Cons
- Complex pricing
- Monthly fee required for virtual terminal and recurring payments
- High e-check processing fees
PayPal is one of the most popular payment methods today, often used in conjunction with other payment types. In fact, studies have shown that offering PayPal as an option can increase the number of completed sales online by an average of 28%. PayPal also offers easy-to-use “buy now” buttons for social media and hosting for product information, so you can sell on social media without an ecommerce platform.
As a payment processor itself, it offers excellent online rates and its own BNPL tool. It can also accept cryptocurrency, something we did not find in Helcim or Authorize.net. We don’t recommend it for virtual terminals or invoicing, however, because of the extra fees attached and the high cap on echeck processing.
PayPal’s transaction fees are a little complicated essentially because it charges different transaction rates for credit card payments depending on which PayPal method is being used. This is unlike most merchant processors that simply vary based on card-present or card-not-present method.
- Via PayPal Checkout methods: 3.49% + 49 cents per transaction
- Via QR code: 2.29% + 9 cents per transactions
- Via credit card: 2.99% + 49 cents per transaction
- Chargeback protection: + 0.4% per credit card transaction
- Card-present including Apple Pay and Google Pay: 2.29% + 49 cents per transaction
- E-check fees: 3.49% capped at $300
- Chargeback fees: $20 for transactions not processed through a buyer’s PayPal account or through guest checkout.
- Same-day funding: 1.50% of the amount transferred
- Recurring billing service: $10/month optional service available for PayPal Online Card Payment Service and Payment Gateway users
- Recurring payment tool: $30/month optional service available for PayPal Online Card Payment Service users
Learn more about PayPal for Business:
Authorize.net: Best Online Credit Card Processing Payment Gateway
Pros
- Discounted rates available for nonprofits
- Pays out in 1 day
- Can work as a payment gateway or a full payment processing solution
Cons
- Customer support is hard to reach
- Monthly fee
- Lacks some reporting and in-person payment features
CardX: Best for Free Online Credit Card Processing
Pros
- Fully compliant credit surcharging
- Turnkey solution
- Mastercard Click-to-pay
Cons
- Lacks invoice customization tools
- Does not accept cross border payments
- Requires minimum $5,000 in sales volume for underwriting/approval
CardX is the leading credit surcharging platform in terms of compliance. We love how CardX provides merchants with easy-to-use and highly customizable online checkout pages that integrate with most popular website builders, while also providing payment link solutions for merchants selling in other online platforms. The CardX merchant dashboard comes with built-in invoicing, recurring billing, and virtual terminal features.
Recently acquired by Stax, CardX is fully compliant with federal and local regulations in all states where credit surcharging is legal. Mastercard has awarded CardX as its official surcharging partner and provides merchants with the Mastercard Click-to-pay feature for their website checkout.
While merchants can pass on their transaction fees to customers who pay with a credit card, merchants shoulder the cost of debit card payments. Monthly fees start at $29 and increase based on sales volume, but users are free to cancel at any time with a 30-day notice.
Wave: Best for Gig Workers & Solo Professionals
Pros
- Full (and free) invoicing features
- Supports multiple profiles
- Mobile app for invoicing
Cons
- Limited integrations
- Higher transaction rate for AmEx
- Highest fixed per-transaction fees
Wave is primarily an accounting platform for small businesses but it comes with payment processing tools to accept online credit card transactions. Wave payments’ free account can handle invoicing, recurring billing, and cross-border payments. It also comes with a virtual terminal and customizable links you can share online with your customers to collect payments. Wave can even be used to process ACH transactions.
Along with these payment processing options, Wave offers its free accounting platform. You can create multiple profiles in a single account, which, combined with the zero monthly fees and month-to-month contract, makes Wave a perfect option for gig workers and solo professionals who are always on the go.
- Monthly account fee: $0
- Online credit card fees: 2.9% + 60 cents
- Amex Online credit card fees: 3.4% + 60 cents
- ACH: 1% ($1 minimum fee)
- Chargeback fee: $15 (refundable)
- Instant payout: Not disclosed (typically 1%–1.5%)
QuickBooks Payments: Best for QuickBooks Online Users
Pros
- Transparent, flat-rate pricing
- Automatic bookkeeping
- Built-in invoicing and recurring billing tools
Cons
- Must have QuickBooks Online account
- No phone customer support
- Lacks multicurrency processing
If you are already using QuickBooks Online to manage your business finances, then QuickBooks payments is a natural choice for your payment processing needs. Using QuickBooks’ built-in payment processing feature ensures that your sales and business expenses are automatically tracked for reporting purposes, giving you more time to focus on your day-to-day business activities. It comes with customizable tools for invoicing and recurring billing, as well as integration with top point-of-sale (POS) providers.
Service professionals and merchants who heavily rely on invoicing, or run a subscription service will find QuickBooks Online a reliable accounting solution, and therefore, benefit most from QuickBooks payments. Online merchants using BigCommerce or WooCommerce can use QuickBooks to process payments through its QuickBooks Online integrations.
- QuickBooks Online monthly fee: $30–$200
- QuickBooks Payments monthly fee: $0
- Online transactions: 2.9% + 25 cents
- Keyed-in transactions: 3.4% + 25 cents
- Invoicing: 2.9% + 25 cents
- ACH payments: 1% (max $10)
- Chargeback fees: $25
- Instant deposits: 1%
QuickBooks Online also integrated with Shopify, however, Shopify charges a commission fee per transaction on merchants who use a payment processor other than Shopify payments.
How to Choose the Best Online Credit Card Payment Processing Companies
Value for money, ease of use, and reliability are essential characteristics when choosing online credit card payment processors. Finding the best match in terms of payment types, features, pricing, and security will ensure that you can maximize the cost of accepting credit card payments online.
- Payment Types: As your business grows, you need a merchant processor that can scale with your payment processing needs. So while credit card payments are the focus of this guide, it’s important to also look into other payment methods available from merchant processors.
- Features: Identify how you want to accept credit card payments and match your requirements against what merchant processors can provide. Watch out for merchant processors that charge an additional monthly fee or a per-transaction rate for certain payment services.
- Value for money: Not all free merchant account providers are created equal. If you are working on a budget, compare your payment processing requirements against what you get from a free merchant account. Also, high-volume businesses can potentially save more with merchant processors that offer interchange-plus pricing with a small monthly fee.
- Security: Online credit card payments are highly susceptible to fraud and chargebacks. Make sure to consider only merchant processors that offer the highest PCI security compliance and those that offer fraud protection and detection tools with your merchant account.
How We Evaluated Online Payment Processors
We began with the dozens of credit card processors and merchant services that we’ve reviewed for various lists. Then we considered those that were especially suited for online sales. Most provide in-person and mobile payment processing, too, but for this list, we looked specifically at online features like checkout pages, invoices, and online rates.
It’s no surprise, then, that Stripe, which usually gets a callout for its online solutions, placed first on this list. Its programmability, tools, and plethora of integrations make it the top choice.
Click through to see the scoring criteria:
20% of Overall Score
We graded based on monthly fees, online rates, chargebacks, and whether or not you could get volume discounts.
30% of Overall Score
Online payments are more than website checkouts. We looked for invoices, recurring billing, and virtual terminals. We also gave points for stored payments and Level 2 and 3 processing for B2B sales. Stripe had a clear lead with 4.63.
25% of Overall Score
This score took into account sales tools like customer management features, BNPL, fraud prevention, and developer tools for customizations. We also considered deposit speed, giving the most points for same-day processing, and customer service. Stripe again took the lead with 4.63 out of 5.
25% of Overall Score
Here, we scored based on our own experience of ease of use, plus research into account stability. The number and ease of integrations contributed to this score. Finally, we gave some weight to the input of real-world users as recorded in third-party user review sites like Capterra. Square also did well in this category.
Best Online Credit Card Processing Companies Frequently Asked Questions (FAQ)
Online credit card processing is simply the ability to accept credit card payments online—on your website, through an invoice sent by email, or even via social media sites like Instagram. Most merchant services can process credit cards online as well as in person.
In general, the steps are the same—submission, authorization, and funding. However, the main difference is that you never see the actual credit card. Also, there is a higher risk of credit card fraud (because you are not able to verify the user in person) and of friendly fraud, where someone may forget an online purchase or not recognize your business name on their bill. Thus, it’s important to look for strong fraud prevention tools and low chargeback rates.
Rates for in-person payment transactions are usually cheaper than online or keyed-in rates, as well.
You need a credit card processor that handles online payments. Then you need the tools for accepting payments online, such as an ecommerce site or digital invoicing. Most online payment processors offer such tools, but their exact offerings vary widely.
Most provide the basics: a payment button you can code onto your website or ecommerce platform or an actual checkout page. Nearly all have invoice software that lets you send an invoice with a link or button to pay online; a few charge for this, however. The best also have tools for recurring billing, website or web page creation, and of course, integrating into other software that take payments online.
The price varies by processor, but in our research, we’ve seen prices from around 2.4% + 8 cents to 3.49% + 49 cents. Some payment processors charge monthly fees in return for lower rates, while others have fees for specific services like invoicing or virtual terminals.
When considering price, do your research. Those that charge fees, like Stax (not on our list), offer lower rates that save you more than the fee. Others, like Square, offer an excellent range of free tools that can make the slightly higher rate worthwhile. Regardless, always check the fine print for contract obligations and “hidden fees” like cancellation fees, batch processing, and the like. The services on our list do not have these.
Learn more about credit card processing fees.
Bottom Line
When choosing the best online payment processing company for your business, price is the first consideration, but it’s not the only one. You should consider how easy it is to incorporate the credit card processor into your website and whether you need additional tools like payment buttons, social selling, or more. Fortunately, nearly all payment processors have online tools, and some are especially adept at ecommerce.
Stripe was designed for online environments, with great rates and amazing integration capabilities. If you just need simple checkout and invoicing tools, it has those, too. Stripe only charges by transaction, so sign up for an account and get started accepting credit cards online today.