Compare free and low-cost credit card processing for businesses in 2026

Popular free and low-cost credit card processors for business

Several well-known free and low-cost credit card processing solutions for small businesses include Helcim, Square, Stripe, Payment Depot, and Stax.

Here’s a quick breakdown of how they compare. Rates are subject to change and may vary based on industry, transaction type, and processing volume. Always confirm current pricing with the provider.

Helcim: For businesses with $50,000+ in monthly sales

Helcim offers a robust platform with an easy-to-use interface and free point of sale (POS) tools to help you manage inventory, run reports, and process returns. It uses an interchange-plus pricing model and charges 0.4% + 8¢ for in-person transactions and 0.5% + 25¢ for those made online.

If your business processes more than $50,000 in monthly credit card sales, you’ll qualify for a discounted rate. There’s also a unique Fee Saver surcharge feature that lets you pass credit card processing fees to your customers for both in-person and online transactions. 

Square: For startups

Unlike other vendors, Square has a free plan with a flat-rate pricing model, which is ideal for startups who are just getting started with credit card processing. You’ll pay 2.6% + 15¢ for in-person transactions and 2.9% + 30¢ for online payments.

Pricing increases with higher-tier plans but you’ll unlock access to POS features, marketing tools, advanced reporting, and more. As an added bonus, you may receive free hardware, such as a credit card reader.

Stripe: For e-commerce

Stripe is a developer-friendly credit card processor that’s compatible with hundreds of e-commerce apps. Its comprehensive, well-documented API tools are a huge plus as it can allow your developers to customize and integrate the platform quickly and easily. 

When it comes to pricing, Stripe charges the same flat rate as Square of 2.9% + 30¢ per online transaction. Additionally, the platform has a global presence as it’s available in 195 countries and over 135 currencies. 

Payment Depot: For businesses with a high transaction volume

Payment Depot advertises interchange-plus pricing with variable rates as low as $0.2% to 1.95%. As a customer, you’ll enjoy a number of useful features, such as digital invoicing, Text2Pay mobile payments, payment links, hosted payment pages, and one-click shopping with catalog management. 

The provider also sells a variety of equipment, including several POS systems from Clover as well as wireless and countertop terminals from Dejavoo.

Stax: For businesses looking for a customizable, feature-packed solution

Stax has a subscription pricing model that starts at $99 per month and depends on transaction volume. Once you subscribe, you’ll get access to a long list of features like customized invoicing, accounting reconciliation, reputation management, and fraud protection. 

To further customize your experience with Stax, you may add on ACH processing, chargeback protection, terminals, and a terminal protection plan that lets you swap equipment due to accidents, defects, and normal wear and tear.

What is free credit card processing or zero-fee models?

Free credit card processing doesn’t mean there are no fees involved. Instead, it shifts the costs from the business to the customer. In general, there are two primary ways this is done: surcharging programs and cash discount programs.

Surcharging programs

A surcharge is an additional fee customers accept when they decide to pay with a credit card. It’s a separate line item and typically caps out at 3% to 4% of the total transaction cost. 

For example, if you add a 3% surcharge to all credit transactions, a customer that buys a $20 product, would need an additional $0.60, making their total cost $20.60.

As of early 2026, some states restrict or prohibit credit card surcharging, including Connecticut, Maine, and Massachusetts. Laws change frequently, so businesses should verify current state regulations before implementing a surcharge program. If it is legal in your state, you must follow state laws, inform customers in advance, and display the required signage. 

Surcharging might be a good option if your customer base uses credit cards often or you’re in an industry, such as professional services or healthcare where service fees are the norm.

Cash discount programs

A cash discount program offers discounts to customers who pay with cash instead of credit cards. For example, you may decide that a product you have to sell for $20 will be marked as $20.60 for those who pay with a credit card and $20 for customers who go the cash route.

Cash discount programs are generally permitted nationwide, provided they are structured and disclosed properly. The cash discount must be displayed clearly and itemized on the receipt. You’ll also need to post consistent signage so that customers are aware of it.

If you’re a small retailer, restaurant, or service business with many cash-paying customers, a cash discount program may make sense.

What are the different credit card processing pricing models?

Interchange-plus, flat rate, tiered, and subscription or membership pricing models determine how your business pays credit card processing fees. The ideal model depends on factors such as your business type, transaction volume, and the cards your customers usually use.

Interchange-plus pricing

Interchange-plus pricing is when you pay the interchange rate set forth by the credit card issuer, such as Visa or Mastercard plus the markup by the payment processor. Since the interchange rate varies by credit card company, your costs can fluctuate.

For example, let’s say you’re a restaurant owner and a customer spends $200 with a Visa Signature Preferred credit card. You might pay an interchange rate of $1.88% + $0.10 plus a processor makeup of $0.20% + $0.10. In this case, your total cost would be $4.36 or 2.18% of the sale.  

When to consider it: If you’re a high volume business, interchange-plus pricing can be a good option as you may be able to negotiate lower markups with your processor and save money in the long-run.

Flat-rate pricing

Flat-rate pricing is when you pay the same fixed rate for all of your transactions, no matter what type of card a customer uses. For example, you might owe 2.9% on every transaction. With the example above, you’d pay $5.80.

While flat-rate pricing is predictable and easy to understand, the interchange-plus model may save you more money as it can ensure you don’t overpay for smaller transactions. In addition, some payment processors reduce fees as your volume grows.

When to consider it: If you’re a small or newer business with a low transaction volume, flat rate pricing is likely the way to go as there won’t be any confusion or unwanted financial surprises. 

Tiered pricing 

Tiered pricing groups transactions into distinct categories and assigns a set rate to each one. While each credit card processor defines their own tiers, most of them group transactions into qualified (lowest fees), mid-qualified (average fees), and non qualified (highest fees). 

The most significant drawback of tiered pricing is the lack of transparency. Unfortunately, most processors fail to clearly convey how each transaction is categorized, making this model more expensive and less predictable than interchange-plus or flat rate pricing. 

When to consider it: If possible, it’s best to avoid tiered pricing as other pricing models can save you money and reduce uncertainty. 

Subscription/membership pricing

With subscription or membership pricing, credit card processors charge a membership fee instead of taking a percentage of your sales volume. Depending on the company, you might owe a monthly or annual fee plus a small flat fee per transaction. 

When to consider it: If your business has high-volume or typically processes larger transactions, the subscription or membership based model might be a good fit, especially if you perform a break-even analysis and confirm it makes financial sense.

How do credit card processing fees work

In general, there are three types of credit card processing fees you might strive to reduce or eliminate as a small business, including:

Interchange fees

Interchange fees are set by the credit card company and paid to the bank that issues the customer’s credit card. These fees are typically a percentage of the transaction value plus a fixed rate per transaction. Additionally, they’re non-negotiable and vary based on the type of card, type of transaction, and industry. 

Assessment fees

Also determined by the credit card issuer, assessment fees pay for payment routing and processing across the company’s infrastructure. In most cases, they’re a small percentage of the transaction value. Just like interchange fees, assessment fees are firm and not open for discussion. 

Here are a few examples of assessment fees from a few different credit card providers:

• Mastercard: 0.1375% 
• Visa: 0.14%
• Discover: 0.13% 
• American Express: 0.15% 

Assessment fees are subject to change and vary by card network and transaction type.

Payment processor markup

Payment processor markup fees come from the payment processor to cover their work in facilitating the credit card transactions. Also known as merchant service fees, these fees may be a fixed per-transaction fee, a percentage of the transaction value, or a combination of both.

Unlike interchange and assessment fees, payment processor markup fees are non-negotiable. Unlike interchange and assessment fees, which are set by card networks, payment processor markup fees may be negotiable depending on your volume and provider.

How to accept credit card payments as a small business

If you’re a startup or newer business who is ready to accept credit card payments, these steps will steer you in the right direction.

Choose a payment processor

First, think about what you want from a credit card payment processor. Consider the following:

• Pricing model: Do you prefer a flat rate, interchange-plus pricing, tiered, or membership model? If you’re a startup or prefer transparency, for example, you may be better off with flat rate pricing. On the flipside, if you know you’ll process a high volume of transitions, interchange-plus may save you money.
• Contract terms: Are you looking for a longer-term contract or something a bit more flexible? Don’t forget to look into minimum transaction requirements and early termination fees. 
• Hardware costs: Hardware costs vary by product type and processor. You may pay $50 for a no-frills virtual credit card terminal or up to $850 or even more for a robust POS system with all the bells and whistles. 
• Integration needs: If you use a customer relationship management (CRM) and accounting tool, for example, you’ll want to select a processor that seamlessly integrates with them.

Set up your merchant account

A merchant account is a bank account you can use to accept card payments. It will store funds from credit card transactions before transferring them to your business bank account. Note that most credit card processors use an aggregated model that lets you accept credit card payments under their master account eliminating a major barrier. 

In the event you do need to apply for a merchant account, you’ll need to share a business plan, projected sales volumes, and strategies for fraud mitigation. This will show that you’re a responsible company. Approval will depend on several factors like your credit history, industry, and sales volume. 

Select payment hardware & software

There are a number of hardware and software options you may need to successfully accept credit card payments. Be sure to explore the following:

• Terminals: Countertop terminals are machines to process in-store credit card transactions. Virtual terminals let you enter card information manually, turning your computers, phones, and tablets into card readers.  
• POS systems: More advanced than countertop terminals, POS systems can help you track inventory, manage employee schedules, generate reports, calculate taxes, and more.
• Mobile readers: Mobile readers are lightweight, cost-effective devices that allow you to accept credit card payments anywhere. They usually come with an app for your smartphone or tablet that makes it easy to process card transactions on the go.

Configure payment methods

Your business can choose to accept some or all of these payments methods: 

• In-person: Customers use your POS system so they can tap to pay with their credit card or phone.
• Online: Customers make payments through your online store, invoices, or payment links.
• Phone: Customers provide their card information over the phone and you’ll enter it using a POS system or virtual terminal.

Once you hone in on which payment methods will work best for your business, you’ll need to configure any hardware. Don’t hesitate to reach out to your credit card process for support with the technicalities. 

How to lower your credit card processing fees

Once you choose a free or zero-fee credit card processor, these strategies may help you further your savings on credit card transactions.  

Negotiate your rates

To negotiate your credit card processing rates, search for transparent providers who offer interchange-plus pricing or discounts for volume increases. Ideally, you’d get a few written quotes and leverage them to zero in on the best deal for your unique situation. 

Encourage debit card and ACH payments

Debit card and ACH payments usually have lower processing fees than credit cards. While debit card payments are a good option for everyday purchases, ACH payments make sense for larger  or business-to-business transactions. 

To encourage debit and ACH payments, post signage throughout your store and/or website and make them the default option on customer payment portals and online invoices. 

Optimize your transaction methods

Every transaction method has a direct impact on cost. Credit-present transactions, including chip, tap, or swipe transactions, typically come with lower interchange fees than card-not-present transactions that are made online or phone. This is because there is less risk for fraud. 

Additionally, investing in EMV-compliant terminals and ensuring Address Verification Service (AVS) for remote transactions can help reduce your costs and minimize chargeback liability.

Review your statement monthly

Every month, check your credit card processing statement. Look for Payment Card Industry (PCI) noncompliance fees, monthly minimums, payment gateway fees, and batch settlement charges. If you notice too many charges that don’t relate to processing, it might be time to switch providers. 

Ensure PCI compliance

PCI compliance is when you meet the standards outlined by the Payment Card Industry Data Security Standards (PCI DSS). To reduce the risk of noncompliance fees and rate increases, choose a modern credit card processor, install a firewall, and perform antivirus and malware updates regularly. It’s also a good idea to encrypt cardholder information across public or open networks. 

Pros and cons of accepting credit card payments

As with any financial strategy, there are advantages and disadvantages to accepting credit card payments. It’s up to you to determine whether the pros outweigh the cons and make credit card transactions worthwhile for your unique business. 

Frequently asked questions