The Cheapest Third-Party Online Credit Card Processors in 2023

The choice of the cheapest third-party online credit card processor can vary based on your business needs, transaction volume, and specific requirements.

Popular Options for Competitive Pricing

As of August 2023, several third-party online credit card processors stand out for their competitive pricing, making them ideal choices for businesses of different sizes. Below are some options that top the list:

Square

Square charges a flat rate of 2.6% plus 10 cents per transaction for online payments. This straightforward pricing makes it user-friendly and particularly suitable for small businesses. Square also offers a wide range of features, including mobile point-of-sale options, inventory management, and marketing tools, which can be invaluable for startups and entrepreneurs.

PayPal

PayPal is another popular choice with competitive rates starting at 2.9% plus 30 cents per transaction for online sales. PayPal's broad user base and widespread recognition can help increase customer trust and make it a valuable tool for businesses. Its ease of integration and user-friendly interface contribute to its popularity, especially among those who already have existing relationships with other PayPal services like payroll or accountants.

Stripe

Stripe charges the same competitive rate of 2.9% plus 30 cents per transaction, but what sets it apart is its robust API and extensive customization options. This makes it an excellent choice for tech-savvy businesses that require flexibility and control over their payment processing system. Stripe is particularly favored by developers and e-commerce businesses that need advanced features, such as recurring billing and subscription management.

is another reliable option that charges a monthly fee of around $25 plus 2.9% plus 30 cents per transaction. This pricing model makes it a solid choice for businesses that need additional features and support, such as recurring payments, fraud protection, and advanced analytics. is particularly favored by businesses that require a high level of control and integration capabilities with their existing systems.

Braintree

Braintree, a PayPal service, charges 2.9% plus 30 cents per transaction and is known for its mobile payment capabilities. It is an excellent choice for businesses that need flexibility in accepting payments from mobile devices or want to leverage PayPal's extensive network. Braintree's API is well-documented, making it easy to integrate into a wide range of applications.

Adyen

Adyen offers custom pricing based on transaction volume, which can be advantageous for larger businesses. With Adyen, businesses can benefit from a scalable solution that can grow with their needs. Adyen is renowned for its robust payment processing infrastructure, fraud protection, and advanced analytics tools, making it a top choice for businesses with high transaction volumes and stringent compliance requirements.

Factors to Consider When Choosing a Processor

To determine the cheapest option that suits your specific needs and business model, consider the following factors:

Transaction Fees: Each processor charges different rates, and understanding these can help you save money over time. Check the specific fees for both online and offline transactions. Monthly Fees: Many processors also charge monthly fees, which can add up over time. Ensure that the overall cost does not exceed your budget. Additional Costs: Be aware of any additional charges for specific services, such as fraud protection, chargeback fees, and other support services. Transaction Volume: If you have a high volume of transactions, custom pricing options can be beneficial. Smaller businesses might benefit more from fixed flat rates. Customer Support: A processor with responsive and knowledgeable support can be crucial, especially during peak usage periods or when troubleshooting issues. Security Features: Look for processors that offer advanced security measures to protect your business and customers from fraud and data breaches. Promotions and Discounts: Some processors offer promotional rates for new sign-ups or seasonal discounts, which can be a significant cost-saving measure.

Conclusion

Choosing the cheapest third-party online credit card processor requires careful consideration of your business needs and transaction volume. While each processor has its strengths, Square, PayPal, Stripe, , Braintree, and Adyen all provide excellent options for businesses of different sizes. By evaluating these factors, you can select the most cost-effective and reliable processor for your business, ensuring efficient and secure online payment processing.