4 Payment Processing Providers We Recommend
It’s basically impossible to run a product-based business these days without accepting credit card payments from your customers.
You want to accommodate all of your customers, but a lot of these payment processing providers charge crazy fees for each transaction!
There are a ton of options out there, so we whittled down the list to our top faves. These are the payment processing providers we recommend because we know will give you the best bang for your buck without breaking the bank.
But first --- let’s cover what exactly payment processing is for small businesses and what kind of features you should be looking for.
Payment Processing for Small Businesses 101
When a customer makes a payment at your online store, it’s usually a 2-second. This is true on the business’s side, too! But within those 2 seconds, a bunch of different processes are happening.
Your product-based business’s payment processor is communicating with the credit card company, who is talking with the customer’s bank, who ultimately approves or denies the transaction. It’s a process of authenticating the customer’s card, authorizing the money, and settling the transaction --- all to get their cash into your pocket.
What You Should Look Out For
In order to pick the right payment processing provider for your business, you will want to look at three main pillars: fees, complexity, and customer service.
Fees
There are a lot of different fees and fee structures that various providers use. Typically, you will be charged a small fee per transaction that may change depending on the transaction type – credit, debit, or ACH (which is a direct transfer from a bank account). These charges can be a percentage of the total transaction or a flat fee. Some companies offer a subscription model where some or all transaction fees are waived and instead you are charged a flat monthly fee.
Picking which scheme is right for you depends on your business. If you are a female entrepreneur with high volume, low price sales, the subscription model might work best for you. If you have only a few high-dollar transactions each month, you’ll probably want to avoid the percentage-based fees and opt for the flat fee per transaction.
Complexity
Of course, no one wants to deal with a highly complex app. Especially when it comes to your income! The less cluttered mess on the home screen the better, right?
But some companies may offer extra services on top of payment processing that may be worth a little extra complexity. Physical payment terminals and fully integrated merchant accounts are some cool, techy extras some companies offer.
Choose the payment processing provider that will get you all the features you want without sacrificing simplicity.
Customer Service
Finally, you want to pick a processor with a good reputation for good customer service. You will probably have to ring them up at least once to deal with things like a complicated customer refund. You don’t want to have to deal with 8 hours of phone trees while you are handling an irate customer! We personally love to use online support chats, so be sure whichever company you pick has the support you need in the way you like.
The Payment Processing Providers We Recommend
Now to the fun stuff --- the reviews!
Square
Good for: The every(wo)man --- low to medium transaction volume businesses looking for a quick and easy processor with quick startup times. No monthly subscription fees, fast set up, and you get a free mini card reader that plugs right into your phone. Love a free gadget!
Not so good for: High volume businesses. There are per-transaction fees that vary per type. They are pretty standard as far as pricing goes, but those fees do add up if you have a ton of transactions each month. They also do not offer 24/7 support and do not work with high-risk merchants.
Clover
Good for: The female entrepreneur who wants all the things! In addition to payment processing, Clover offers add-ons like inventory management, cool analytics, employee scheduling, and customer relationship management services, all for a reasonable fee.
Not so good for: Boss babes on a budget. Their per-transaction fees are pretty middle of the road, but they have a steep subscription and physical POS rental fees.
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Stripe
Good for: International superstars. Stripe takes payments in over 130 different currencies! If you have customers all over the world patronizing your product-based business, this one’s for you. They also have 24/7 stellar customer service and no monthly subscription fees.
Not so good for: Not-so-tech-savvy business owners. Integrating their virtual application definitely requires some software developing skills. If you like this one a lot but lack the high-tech touch, you can always outsource the setup!
Helcim
Good for: High-volume businesses! Helcim uses what is called interchange-plus pricing, making it cheaper to process as your transaction volume goes up. This processor is definitely the pick for our female entrepreneurs with those big sales numbers! They have high-rated customer service and they sync up directly with QuickBooks Online.
Not so good for: Low-volume businesses. They also do not work with high-risk merchants, such as those in the cannabinoid, adult, or debt collection industries.
We hope this list helped you narrow down your choice of payment processing providers! If you have more questions, don’t hesitate to drop us a line.
