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Cheapest Credit Card Processing Companies

Our Top Picks for Cheapest Credit Card Processors

  1. Easy Pay Direct
  2. Helcim
  3. Dharma Merchant Services
  4. Mynt POS
  5. Bank Associates Merchant Service (BAMS)

1. Easy Pay Direct

Easy Pay Direct works well with high risk merchant accounts. They will cater to your specific business needs by getting to know what your business is about. EPD has worked with 60,000 merchant accounts. They believe that finding a merchant processor shouldn't be a difficult job for any type of business. EPD accepts payments online, in store, and on mobile devices.

2. Helcim

Helcim has pride in its amazing and responsive customer service. They also have 100% transparent pricing with no hidden fees. With Helcim you get unlimited access to any tool you may need for easy credit card processing. You will get the lowest interchange rate for every transaction processed. No contracts, no hidden fees, and no hidden charges to worry about.

3. Dharma Merchant Services

Dharma works hard to provide you with the tools you need for seamless credit card processing. There are no contracts or hidden fees when working with this company. Dharma offers 24 hour funding and 24 hour customer service. They pass 100% of processing fees to credit card paying customers. Dharma makes merchant services a simple process.

4. Mynt POS

Mynt POS will accept all forms of modern payment when completing a transaction. Every Mynt subscription is protected by a lifetime warranty. Mynt offers dedicated remote installation support and live training. Every Mynt POS subscription also comes with a lifetime warranty and free service. Mynt is optimized for your business.

5. Bank Associates Merchant Services (BAMS)

4.9 out of 5 BAMS clients report lower stress levels when working with this company. They will provide you with transparent payment processing services. BAMS has worked with non-profit, auto repair, retailers, and salons. Whatever your industry may be BAMS can get you taken care of with a merchant processor right away. BAMS's mission is to eventually be nationally recognized.

Employees of non-profit organizations, restaurants, and retail shops.

It has been ranked and assessed to determine the most cost-effective credit card processors.

It is not always a good idea to save money on credit card processing. There must be a catch because you can save money on payment processing fees. The good news is that you can get a low merchant account rate while still receiving high-quality goods and services.

What is Credit Card Processing?

As a business owner or "merchant," you get money from customers in exchange for the goods and services you provide. Accepting a variety of payment methods allows you to serve more customers and enhance your revenue.

Accepting credit cards is not an easy task. This will necessitate the use of a payment processing system.

A credit card processing service transfers funds from the customer's credit card (or, if they paid with a debit card, the customer's bank account) to your business account. A lot can happen between those two points, which is why you need a payment processor.

Here are the basic steps that are taken from start (customer pays) to finish (you get paid):

Step 1: Authorization and Payment

It is passed from the acquiring to the issuing bank, which then passes it on to the intended recipient. Following the completion of the following step, the bank that owns the funds will either approve or deny your request.

Step 2: Payment Authentication

When you make a payment, the issuing bank double-checks that all of the information is correct. They're looking for CVV, AVS, and other methods to confirm that you are who you claim to be.

Individuals who use credit cards can buy items as long as they follow all applicable rules. Following the transaction, the funds in their account are subject to an account hold.

Step 3: Batching and Settlement

A batch of approved transactions is transferred to the merchant's account every day. The funds are released once any transaction expenses have been removed.

Step 4: Merchant Receives Funds

The deposit will be made into the merchant's business bank account by the acquiring bank. They will be able to notice it.

What’s the Difference Between a Merchant Account Provider and a Payment Processor?

To begin accepting payments, you must first open a merchant account. This is different from having a business bank account, which you will also need.

This is unique. In this case, your acquiring bank will hold the account. It serves as a holding place for money that individuals pay you before it reaches your corporate bank account.

There is no getting around the need for a merchant account. A merchant account provider is a company that offers you one and works for you.

In addition to payment processing services, some companies provide merchant accounts. Many others are experts in either one or both.

Why Would You Want a Cheap Payment Processing Company?

A business cannot be run on a shoestring budget. Throughout, there are several hidden fees. The more money you are able to save, the better. Some high-priced payment processing firms may try to entice you.

You may be unsure what to look for and fall victim to their deceitful marketing practices. I believe it is vital that you understand which pricing strategies to pursue and which to avoid.

Types of Pricing Plans

There is no such thing as a one-size-fits-all payment processing system. The pricing options available to you are as follows.

Flat-Rate Pricing

The term "flat-rate pricing" refers to the fact that you pay the same rate for all of your transactions, with some variation depending on how the payment information was input. A fixed charge may be charged to all swiped transactions and another to all transactions entered one at a time, among other things.

This distinguishes between transactions involving a present card and transactions involving a card that is not present. While flat-rate pricing is simple, it is not always transparent, and it may end up costing you much more in the long run.

Tiered Pricing

Non-qualified, medium qualified, and qualified individuals are those who are not qualified for a transaction. They obtain the greatest rates due to the low risk associated with qualified transactions (such as card-present transactions, debit cards, and non-reward cards).

Transactions made using a card that is not present, membership reward cards, and loyalty cards, on the other hand, are taxed at the highest rates. This method obscures what is going on. If you're looking for the cheapest way to process credit cards, this isn't the model for you.

Interchange-Plus Pricing

Because of its clarity, interchange-plus pricing is typically the best solution for any business owner. Interchange fees are determined by the main credit card companies twice a year. These are known as "interchange fees" (in April and October). Individuals that process payments add a "plus," which is a service fee.

For each transaction, it may cost as much as 2.2 percent + $0.15. However, keep in mind that the type of card used and whether the payment is card-present or card-not-present also play a role. This is a variable that can be used to change interchange-plus.

Surcharge Pricing and Cash Discounts

While some individuals confuse surcharge pricing and cash discount schemes, there are a few key differences between the two. Surcharge pricing happens when businesses charge clients who pay with a credit card a fee to conduct the transaction.

The charge covers processing fees, thus the merchant is not liable for any of the sales. It offers a cash discount to customers who pay in cash (or check or debit card). Users who pay with a credit card are charged an extra fee.

Many business owners prefer these models because they allow them to pass on payment processing costs to their customers.

What’s the Difference Between a Merchant Services Provider and a Payment Aggregator?

At some point, payday payment aggregators may convince you to use them instead of a merchant service provider. When you deal with a company like Square or Stripe, it may be much quicker to start processing payments because they almost usually supply you with a new account almost instantly.

These are not interchangeable, and they might set you back a lot of money. Payment aggregators make money by charging a fee for each transaction. When a consumer pays for an order, the money are moved to a single account that is shared by several businesses. Send it from there.

Working with payment aggregators is unique and riskier for you as a business owner because you do not have your own merchant account, or even many merchant accounts.

If you receive an unusually high number of chargebacks, your funds may be frozen and you may be unable to access them for several months. When you engage with a merchant account provider, you own your merchant account/account.

As a result, some suppliers set up separate accounts for each retailer. You will not lose anything if there is a problem with the funds.

What to Consider Before Choosing the Cheapest Payment Processing Company

Consider the following factors before selecting a low-cost merchant service provider:

The Cost of Hardware or Software

How will you collect funds? If you plan to use a POS system or credit card terminal, do you have them, or do you need to purchase them? 

Pro Tip: Avoid leasing products if you want to save money. This can become excessively expensive very fast.

Do you have everything you need to process online using a payment gateway or virtual terminal? Are you incorporating a shopping cart? These are all things to think about so that you know which companies to approach to meet your needs. 

Your Processing Volume

It's vital to know how many items you process on a monthly basis. You should also be informed of the price of your tickets on any given day. Provide a number that is neither lower nor higher than the genuine value.

If your company is likely to grow in the following year, make sure every processor you deal with is aware of it.

Monthly Maintenance Fees

Certain payment processors have reasonable monthly costs. Choose one of them, and if it matches the other criteria you set, you'll save money. In general, you should plan on paying a monthly maintenance fee.

Questions to Ask Before Making a Commitment

However, do not give up. Begin by getting in touch with the processors on our list. There are a few questions you should ask before signing any contracts.

What Is the Meaning of "Insert Payment Processing Term Here"?

When you begin researching the processing of credit cards, you will come across a slew of unfamiliar terms. In this case, don't be afraid to ask a direct question, such as:

  • What does it mean to remain PCI Compliant, and what if I’m not?
  • What does interchange-plus mean?
  • What is a chargeback?

Getting these answers now can clear up a lot of confusion later. 

What Happens When My Business Grows?

Last year, your company processed a million dollars in transactions. You, on the other hand, are on track to more than quadruple that figure this year. What will happen if this happens? You should keep track of the costs that will apply when your company grows so that you know how much you will have to pay when things change.

What is Your Customer Service Like?

Your business, like every other aspect of your life, will face challenges at some point. This could be anything from your payment gateway not working properly on a consistent basis to transactions being approved that should not have been.

In any event, you'll want to make sure that your CPU can help you. Customers may desert your company if you do not make it easy for them to get what they need.

Additional Tips

Here are a few more things to think about:

Try to Avoid Monthly Minimums

Keep an eye out for credit card processors that charge a monthly fee. In this circumstance, you are expected to perform a certain amount of labor each month. You will be charged if you do not comply.

Paying additional fees may have a detrimental influence on your bottom line if you manage a small business, even if the charges appear to be tiny (such as $25 per month).

Seek Out “Hidden” Fees

There may be various costs in your contract that are not stated at all. The following are a few examples:

  • Annual fees
  • Retrieval fees
  • Return fees

Determine what those other charges are if your contract includes the words "other fees." If you don't understand something or believe something is inaccurate or unjust, always ask questions.

Add ACH as a Payment Option

Individuals can use ACH to pay using funds from their bank. In general, this method saves retailers money because transaction fees are lower. If you have this option, you may be able to save a large amount of money on fees, resulting in much lower payment processing costs.

Shop Around to Find the Best Deals

There are many credit card processors accessible, and many of them claim to have the best rates and fees. Complete your homework and keep doing your homework. Avoid speaking with the first person you meet. Divide and conquer to find out who has the best rates and services for you.

Don’t Agree to Long-Term Contracts

When you start working with a payment processor, you will sign a contract for a set amount of time. Contracts of five years and contracts of one month are both sorts of contracts.

It will be exceedingly difficult to terminate a long-term contract, and it will almost definitely cost a lot of money to do so. Indeed, if you are compelled to leave a five-year contract after the first year, you may be subject to significant early termination fines and expenses.

Individuals should pay on a monthly basis instead. It will ensure that you do not enter into a contract that is difficult to cancel and will cost you a lot of money to get out of.

The Best Cheap Credit Card Processors

  1. Easy Pay Direct
  2. Helcim
  3. Dharma Merchant Services
  4. Mynt POS
  5. Bank Associates Merchant Services (BAMS)

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