Table of Contents Hide
- Top 10 Payment Processing Companies
- What Factors Should Be Taken Into Account While Selecting Payment Processing Companies?
- What is Payment Processing?
- What is a Payment Processing Company?
- How Do Payment Processing Companies Operate?
- What Does a Payment Processing Company Do?
- What are the Price Structures of Payment Processing Companies?
Are you prepared to advance your company? To assist you, you’ll need a reliable payment processor. Here’s what you look for when comparing the best payment processing companies, as well as our top picks.
- The customer is provided with a payment interface by the payment processor. The payment processor provides a payment gateway, which is a channel through which a customer can execute a sale using numerous payment methods. For in-person sales, this is commonly a physical point-of-sale terminal that accepts credit cards, debit cards, contactless tap-to-pay mobile wallet apps, cash, and occasionally gift cards. The payment gateway is a digital application programming interface (API) that allows a customer to enter payment information during the checkout process for online payments. The payment processor is responsible for safeguarding the customer’s financial information and ensuring a safe checkout procedure.
- The payment provider provides the merchant with an easy and safe method of receiving payment. A payment processor primarily serves as a credit card processor for the majority of merchants. It enables a small company owner to accept credit and debit card payments, as well as payments through mobile wallets (such as Apple Pay), and then have the payment amounts transferred to the business owner’s bank account. For this service, the payment processor charges a transaction fee. Most are roughly 3% of the overall transaction price. Some may also demand monthly account maintenance fees.
Payment processing companies have mushroomed on the market in recent years, providing small business owners with a plethora of options for directing consumer payments into their own business bank accounts.
Yet, because there are hundreds of payment processing options, here are ten of the finest to consider.
Top 10 Payment Processing Companies
Since its inception in 1998, PayPal has shown to be a good solution for merchants searching for a low-volume payment processor. PayPal, in addition to having inexpensive prices, operates in over 200 countries and 26 currencies, allowing users to integrate PayPal checkout on their websites, process payments through a browser, app, or reader, and extend credit to clients.
Due is a full-service billing and payment solution for freelancers, small business owners, and companies. Aside from time monitoring, project management, and customized online invoicing, the corporation understands that your business may span the globe.
More than 100 languages, currencies, and tax systems, as well as international credit card processing, are supported by the invoicing and payment processing functions.
There is no “one-size-fits-all” payment processor for internet retailers. Stripe, on the other hand, comes quite close because it is a customizable payment solution.
Stripe was created for developers to explore the company’s APIs to create the product that best meets their needs. The payment processor enables you to accept credit card, debit card, and bitcoin payments in over 130 currencies. There is also flexible pricing and a low 2.9 percent + 30 percent fee for successful card charges.
#4. Flagship Merchant Services
Flagship Merchant Services is perhaps the best option if your site receives a big volume of credit card transactions. Being an all-in-one credit processor, the company provides inexpensive, adjustable monthly rates to businesses rather than requiring them to sign a long contract.
In-person, internet, and mobile credit card processing are all available. Flagship is also noted for its excellent customer service and simple application process.
#5. Payline Data
Payline Data is one of the most well-reviewed payment processors on the market today. They offer cash advances, customer insights, QuickBooks integration, and an interchange-plus pricing structure with no cancellation charge to merchants in addition to the ability to collect payments in-store, online, and via a mobile app.
When you need help, there is also excellent customer service.
Square’s revolutionary products, such as its magstripe reader, contactless + chip reader, and stand that transforms your mobile device into a one-of-a-kind payment processor, enable you to accept payments wherever you are.
Square is also adaptable, so it has options for a wide range of enterprises, including restaurants, beauty specialists, transportation companies, and professional services.
Adyen is an Amsterdam-based global multichannel payment corporation that was founded in 2006. The company allows consumers to accept and transfer money electronically in real-time online, through mobile, or in person.
This platform is one of the main processors for anyone involved in worldwide commerce because it links with over 250 payment methods in North America, South America, Europe, and Asia.
BitPay, which was formed in 2011, is one of the leading bitcoin payment services in the world. In reality, the company is in charge of over $1 million in transactions every day.
BitPay allows consumers to instantaneously convert bitcoin payment into their choice of nine currencies in 38 countries to minimize volatility. The business has also collaborated with PayPal and Merchant Acquirers such as Global Payments and Alternet Systems.
GoCardless is an online direct debit provider with its headquarters in the United Kingdom. With GoCardless, users may not only accept payments through an easy setup, but also automate payments, follow the status of a payment, and integrate the service into their site using their REST API.
The best part? With a 1% fee ceiling of £2, GoCardless is less expensive than PayPal.
Cayan, formerly known as Merchant Warehouse, rebranded in 2015 to emphasize capabilities such as online payments and point-of-sale transactions, as well as providing developers with access to NFC (near-field communication) and EMV (chip technology) payments via a configurable API (application programming interface).
The Boston-based payment processing company offers competitive tiered and interchange-plus rates, as well as a low monthly cost of $4.95.
What Factors Should Be Taken Into Account While Selecting Payment Processing Companies?
When selecting payment processing companies, small-business owners often consider two factors:
Accepting any sort of payment other than cash costs businesses money. As a result, small business owners must decide how much of their sales revenue may go toward payment processing expenses. Individuals who can tolerate greater commissions in exchange for user familiarity may prefer PayPal, but those who require the lowest commissions possible may prefer Square.
Retailers can also pay a premium for support services provided by companies such as Clover and Shopify. These subscription-based solutions provide much more than just payment processing, they must be compatible with a business owner’s monthly budget.
#2. Customer requirements.
To avoid the biggest issue for an online seller—the abandoned shopping cart—merchants must make the checkout process as simple as feasible. This entails accepting a wide range of payment methods, most notably credit card and debit card transactions. Merchants may find themselves appealing to younger customers by embracing purchase now, pay later payment methods, which can be handled by platforms such as Shopify, Stripe, and PayPal. The more payment methods you accept, the more customers you may reach.
What is Payment Processing?
Payment processing is a business-to-business (B2B) service that allows small business merchants to take payments from a variety of sources, including debit cards, credit cards, mobile wallets, ACH bank transfers, and buy now, pay later (BNPL) transactions. They offer payment services to both the client and the merchant.
What is a Payment Processing Company?
Credit card processors, also known as merchant service providers or acquiring service providers, provide a service that allows your organization to accept credit card payments.
Merchant providers provide software that allows you to view transactions, fees, chargebacks, and other information on a single dashboard. A credit card processing company frequently sells or leases hardware to business owners, such as card terminals or mobile readers.
How Do Payment Processing Companies Operate?
A payment processing firm transfers funds from a customer to a merchant. This is accomplished by accepting payment at the point of sale (POS) through a procedure similar to charging a credit card or debiting a bank account. It then sends the money to an aggregate merchant account, which is a sort of bank account that manages money from multiple companies. The payment processor then delivers funds to individual business checking accounts, with fewer commissions and fees.
What Does a Payment Processing Company Do?
A payment processing firm acts as a go-between for a customer and a merchant. It manages the financial backend necessary to transfer funds from a customer’s payment source (such as a credit card or digital wallet) to a merchant’s business checking account.
What are the Price Structures of Payment Processing Companies?
Flat-rate fees, interchange-plus fees, and tiered rates are the most typical payment processing structures for small businesses. Finding the best service and processing rates for your specific need requires an understanding of the benefits and drawbacks of each.
#1. Flat-Rate Pricing
Flat-rate pricing is the simplest price structure, charging a single low rate for all credit card transactions, regardless of the type of card used. Many flat-rate payment processing companies also offer free sales tools including POS software, card readers, and integrated web gateways for e-commerce sales.
With flat-rate pricing, businesses pay a single low rate dependent on the type of sale, with fees typically ranging from 2.5% plus 10 cents to 3.5% plus 30 cents for each transaction. Flat-rate structures have lower fees than online purchases, but fees do not change based on card brands or rewards programs, and there are no additional fees for PCI compliance or monthly statements.
Flat-rate pricing might be a smart alternative for businesses with modest average transaction amounts, especially when free benefits like POS systems, online gateways, and card readers are taken into account. But, higher-volume sellers can save money on credit card processing fees by using interchange-plus or tiered pricing.
#2. Interchange-Plus Pricing
The small business-friendly programs provided by Helcim, Payment Depot, and Stax are major factors in the popularity of interchange-plus pricing.
The base interchange rates provided by the card associations are increased by a little amount by interchange-plus payment providers.
Some, like Helcim, mark up the interchange rate with a modest percentage and per-transaction cost but have no monthly fees. Depending on the type of sale, markup costs might range from 0.10% plus 5 cents to 0.50% plus 25 cents for each transaction. Some do not mark up the interchange rate, including Payment Depot and Stax. Instead, they charge a monthly subscription fee in addition to a small per-transaction cost that ranges from 5 cents to 15 cents per charge.
While comparing providers, keep in mind that markup charges are in addition to base interchange rates, which vary depending on transactional circumstances. Yet, interchange-plus models are very transparent and frequently the most cost-effective option for organizations processing more than $10,000 in monthly card transactions.
#3. Tiered Pricing
Tiered pricing is a price structure that is commonly utilized by traditional merchant account providers and business banking services. To set tiered plan pricing, providers must first examine your business strategy and transaction history, thus this sort of plan requires more effort to implement. Most tiered plans have lengthy contracts and impose early termination penalties if you want to switch plans or providers.
Tiered plans divide card processing rates into three categories: qualified, mid-qualified, and non-qualified. The rates for each tier are determined by a merchant’s total processing volume, industry, and usual transaction types, such as online or in-person sales.
Each sale’s tier is decided by the type of transaction, the payment card used, and whether or not the cardholder’s billing address is validated. Qualified transactions often have the lowest rates, whereas non-qualified transactions typically have the highest rates.
Tiered rates can be difficult to grasp, and monthly statements can be highly complex. For the majority of small enterprises, flat-rate or interchange-plus contracts are more cost-effective and simpler to maintain. Yet, a tiered card processing strategy can save higher-volume enterprises in some industries, such as wholesalers and multi-store retail stores.
To summarize, one of these ten payment processing companies will undoubtedly assist you in keeping your online transactions running smoothly and securely.
The blog’s goal is to show the audience the quality and variety of payment gateways available. From the aforementioned 10 payment processing companies, you can choose the finest one. Buy the best e-commerce software to create an SEO-friendly online business. Bought Commerce will provide you with a variety of customized plans to help you find the best e-commerce platform for your business.
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