A reliable payment processing company is necessary for smoother business operations in the dynamic business sector. However, with so many payment processing companies available, you may need help deciding the right one for you and your business, which is why this article will list the best payment processing companies for your online and offline transactions. Also, we will give an overview of their features, allowing businesses to make better decisions.
What Is a Payment Processing Company?
A payment processing company is a service provider that simplifies financial transactions between business owners and customers. It generally acts as a mediator between the business owner and the bank involved in the transaction, validating and authorizing payments and transferring funds from the customer’s account to the merchant’s account.
What Does a Processing Company Do?
A payment processor company manages the logistics of accepting card payments and ensures the security of online and offline financial transactions between business owners and customers.
Best Payment Processing Company
Each payment processing company offers different features to help you simplify your transaction processes. The best ones include the following:
#1. Stripe
Stripe is an online credit card processing company that offers a range of features and solutions for businesses to handle payment. Features of the stripe include:
- Stripe supports various payment options, including credit card payments from major card brands like Visa, Mastercard, American Express, and Discover. It also supports alternative payment methods like ACH, mobile wallets, and international ones like Alipay.
- Stripe provides in-house gateway services that offer businesses a streamlined and consistent brand experience.
- Stripe offers an easy onboarding process and extensive documentation for developers. It provides a seamless checkout experience for customers and offers an informative UI with graphs and charts.
- Stripe provides various developer tools and APIs, allowing for extensive customization options.
- Stripe also supports open-source plugins for popular eCommerce platforms like Drupal, Magento, Shopware, WooCommerce, and WordPress.
- Stripe offers advanced security features, including TLS (SSL) encryption, which is included with every account at no charge. It also provides additional security features like Stripe Radar for anti-fraud services.
#2. PayPal
It is an online payment processing company that offers various features and services for individuals and businesses. Features of Paypal are:
- PayPal allows users to make both online and offline payments securely.
- PayPal offers branded credit and debit cards that can be used for payments and transactions.
- PayPal is known for its secure payment system, which protects its users’ privacy and financial information.
- It offers tools and services specifically designed for small businesses, including invoicing, product shipping, marketing insights, working capital, and business loans for scaling businesses.
- It partners with brands to provide various payment options for businesses and integrations with other platforms and systems.
- PayPal allows businesses to customize their checkout pages and offers free analytics and tracking services for businesses to gain insights into consumer behavior
#3. National Processing
National Payment Processing is the best credit card processing company for Low-Volume Rates. It offers credit card processing services to various businesses, including stores, online stores, restaurants, and mobile businesses. Its features include:
- Low fees and price transparency make it budget-friendly for small business owners.
- They also offer a range of payment methods, including credit cards.
- They also offer payment gateways through platforms like Authorize.net, NMI, eProcessing Network, and Sage.
- National Payment Processing provides live phone and email support for clients aiming for good customer service.
- They partner with Clover to provide a range of Clover equipment, such as Clover Go, a mobile card reader that works with your phone.
- The company offers various payment processing options, including online, mobile, and virtual terminal services.
#4. PaymentCloud
PaymentCloud is a payment service provider that offers a range of features and services for businesses, particularly those considered high-risk. Its features include:
- PaymentCloud integrates with Shopify, enabling businesses to create full shopping carts and leverage PaymentCloud’s merchant services.
- PaymentCloud offers various POS options for businesses, including in-person, online, mobile, and automatic payments.
- They also offer virtual terminals, e-commerce platform integrations, and phone ordering services.
- PaymentCloud offers PCI-compliant payment gateways from Authorize.Net, a widely used and trusted provider.
- PaymentCloud allows businesses to accept payments through alternative methods. Hence, giving flexible payment options to customers and merchants alike
- They also provide additional services to support high-risk industries and improve the overall payment processing experience. These services include:
- Customized Application Guidance
- Cryptocurrency Processing
- Contactless Payment Requests
- Data Migration
- Personalized Deployment
- Chargeback & Fraud Prevention
- Merchant Cash Advances
#5. Helcim
Helcim is the best credit card payment processing company for fast-growing businesses. It offers various features to businesses, such as:
- Helcim has a fast and easy setup
- Mobile app for smartphones and tablets that allows businesses to connect to the Helcim Card Reader.
- Merchant accounts allow businesses to accept credit and debit card payments from customers. This feature enables businesses to process payments seamlessly.
- Hosted payment pages enable businesses to accept payments, register customers, add QR codes, save cards, and subscribe to users, integrating with shopping carts and billing systems.
- Support for international payments and allows businesses to accept payments from anywhere in the world with built-in payment options.
- Transparent, competitive pricing with interchange-plus rates and built-in volume discounts.
#6. Melio
Melio is an online payment processing company that offers various features to businesses to manage their accounts payable and pay vendors. The features include:
- Melio allows businesses to pay vendors, suppliers, and contractors using different payment methods.
- They enable businesses to split bills into multiple payments and payment methods, providing flexibility in managing expenses.
- Melio seamlessly syncs with QuickBooks, automatically adding payment transactions to be processed and recorded.
- Melio offers free services for small businesses, including opening and maintaining an account, ACH bank transfers, and debit card transactions.
- If you choose to pay vendors using a credit card, Melio charges a transaction fee of 2.9%.
- Melio ensures the security of sensitive data by using cryptographic algorithms for data transmission and storage. They are also PCI compliant and do not store sensitive information on their servers.
#7. Square.
Square is a popular credit card payment processing company for small businesses. It offers several features and services to process payments, manage inventory, and more. Its features include:
- Provision of online payment processing services for businesses, allowing them to accept credit card payments securely.
- It offers transparent and affordable pricing with no monthly fees, statement fees, or monthly minimums.
- It is easy to use and has a quick setup process. However, as a third-party payment processor, it may have stricter risk assessment and account termination policies.
- It offers a comprehensive POS system that integrates with its payment processing services.
- Provision of built-in tools for sending invoices to customers. Thus, businesses can create one-time or recurring invoices and accept installment payments.
- Square offers a payment gateway that allows businesses to process payments online. Also, it allows integration with a business domain or e-commerce platform.
- It also offers business analytics, financing, and payroll services for small businesses through Square Capital and Square Payroll.
#8. Payanywhere
Payanywhere is a payment processing company that offers various features and solutions for in-person and online transactions. Its features include:
- Payanywhere allows merchants to generate and send invoices to their customers, making it convenient to request and collect payments.
- They provide tools for managing inventory and employee information. Hence, merchants can keep track of their stock levels and monitor employee performance.
- They offer free same-day funding, allowing merchants to access their funds quickly and efficiently.
- Payanywhere enables merchants to process split checks and open tabs, making it easier for customers to divide payments or keep a running tab.
- They support tipping functionality, allowing customers to add gratuities to their transactions.
- They provide merchants with detailed reporting and analytics tools to track sales trends. Also, they offer customer support through various channels, including phone, email, and live chat.
#9. Payment Depot
Payment Depot, an online payment processing company, is best known for its low credit card processing rates. Its features include the following:
- Payment Depot can integrate a payment gateway into your website, with Authorize.Net being the most popular option.
- Payment Depot offers merchant cash advances for businesses that need immediate funds. You can receive funding up to $500,000 in as little as 24 hours, with repayment terms as long as 18 months.
- They offer products and services particularly suitable for certain industries, such as restaurants and healthcare professionals.
- Payment Depot offers integration with online shopping carts and developer tools for web designers.
However, Payment Depot is not a direct processor but partners with Fiserv and TSYS, two of the largest credit card processors in the country, to provide processing services.
#10. Gumroad
Gumroad is an online payment processing company. Its features include the following:
- A customizable page editor that allows creators to create a compelling storefront with custom branding.
- Integration of the payment platform and follow button on your existing website.
- Flexibility to use your domain name while using Gumroad’s functionality by linking your domain to Gumroad and customizing it to your brand.
- Integration with various payment options, including major credit cards like American Express, Discover, Mastercard, and Visa.
- Gumroad enables you to set up customer accounts with different membership and subscription structures.
- Gumroad supports payments from a global audience by allowing you to sell products in different currencies.
Other features include VAT collection, license key generation, shipping, and inventory tracking for physical products.
#11. Amazon Pay.
Amazon Pay is an online payment processing service that allows users to make purchases on external merchant websites using their Amazon accounts. Some of the features of Amazon Pay include:
- Amazon Pay accepts credit and debit cards, including Visa, Mastercard, Discover, American Express, Diners Club, and JCB.
- When paying with Amazon Pay, your personal details are not shared with merchants. Only the necessary payment information is shared.
- Using Amazon Pay incurs no fees for the customer. There are no transaction, membership, currency conversion, or foreign transaction fees. However, your card issuer may add a foreign transaction fee if your card was issued in a different country from the merchant’s.
- Amazon Pay can be easily integrated into websites and mobile apps. Merchants must have an Amazon Seller account and embed a plug-in or code on their e-commerce platform to enable Amazon Pay as a payment system.
- Amazon Pay provides user-friendly merchant tools and resources to help businesses manage their payments.
#12. Stax
Stax is the best credit card payment processing company for high-volume sellers. Its features include:
- Stax offers an all-in-one payment platform that allows businesses to accept most payment types anytime, anywhere, and manage their business from a single dashboard.
- Stax provides subscription-based payment technology that saves businesses money and allows them to get paid faster.
- Stax Pay allows swiping cards for card-present transactions, providing businesses with the lowest interchange rates possible.
- They provide dashboards and analytics features that allow businesses to gain insights into their payment transactions.
- They offer transparent pricing with no contracts or hidden fees. Businesses will always know what they are paying and why.
- They also include ACH processing and surcharging as part of their payment solutions. This allows businesses to accept ACH payments and implement surcharges if needed.
#13. QuickBooks Payments
This is the best credit card for QuickBooks users. It has the following features:
- Multiple payment options
- Automatic recording and matching of transactions ensure that your books stay organized without any extra effort.
- Provision of payment links that allow you to send invoices with a payment link. Customers can click on the link to make a payment online.
- Transparent pricing option
- Specific features tailored to specific industries.
What Is a Credit Card Payment Processing Company?
A credit card processing company, also known as a merchant service provider or acquiring service provider, is a company that administers a service to enable businesses to accept credit card payments. These companies offer software and hardware solutions that allow businesses to view transactions, fees, chargebacks, and more on a single dashboard. They also provide devices like card terminals or mobile readers that businesses can purchase or lease.
How to Choose the Best Credit Card Processing Company
To choose the best credit card processing company, consider the following factors:
- Determine your business needs
- Compare fees and pricing
- Consider tokenization and card-not-present processing rates
- Evaluate account setup speed and flexibility
- Consider funding and deposit times
- Research customer support and overall value
Nevertheless, there are better choices than every credit card processing company for all businesses. Hence, evaluating each company’s features and overall value is important to select the best choice for your business needs.
How To Start a Payment Processing Company
To start a payment processing company, there are several options and steps you can consider based on the search results
#1. Research the Market and Craft a Business Plan
Before you start a payment processing company, it’s essential to research the market and understand the payment processing industry. This includes identifying your target market, analyzing competitors, and determining the services you will offer. Then, craft a business plan that outlines your functionality, pricing, and how you will attract clients.
#2. Register Your Business and Trademark
Once you have a clear plan on how to start a payment processing company in place, register your business and trademark according to the requirements in your jurisdiction.
#3. Partner with a Bank and Get an Account
As a payment processing company, you’ll need to partner with a bank and get an account for your activity. Your business plan will be helpful when approaching banks for partnerships.
#4. Acquire the Necessary Equipment
Depending on your funds, you can buy, rent, or lease the equipment needed for your payment processing company. This includes servers, security appliances, and payment processing equipment.
#5. Obtain PCI DSS Certification
You’re subject to PCI DSS certification as a payment processing company dealing with card transaction processing. It is a complex process that includes complying with 12 main requirements and over 250 sub-requirements.
#6. Partner and Integrate with Banks, Payment Providers, Gateways, and Systems
To start a payment processing company is no easy feat. Hence to succeed, make your offering competitive. Consider partnering with and integrating with banks, payment providers, gateways, systems, processors, and other solutions.
#7. Promote Your Services and Attract Clients
Once your payment processing company is operational, it’s time to start promoting your services to potential clients. This includes creating marketing materials, attending industry events, and networking with potential partners. Remember that there is competition in the credit card processing market, so it’s important to differentiate your services and offer a compelling value proposition.
How Much Does It Cost To Start a Payment Processing Company?
Starting a payment processing company can involve various costs and factors to consider. The cost of starting a payment processing company can vary depending on the features you want to offer, equipment prices, software development, regulatory compliance, and more.
- Estimates range from $250,000 to $1 million for a self-developed payment solution.
- White-label solution vendors may have set prices starting at $5,000.
- Affiliate models, where you refer clients to a payment provider, may have lower upfront costs but do not make you the owner of a payment company.
How Much Do Payment Processors Make?
The global payment processing solutions market was valued at $39.57 billion in 2020 and is projected to reach $146.45 billion by 2030, growing at a CAGR of 13.7% from 2021 to 2030. The payment processing industry is big business, with about 470 billion credit card transactions per year globally. In the USA alone, there are about 40 billion credit card transactions per year, with Visa holding roughly 40% of the market share. The payment processing fees add up to around $85 billion per year.
The payment processing value chain works together to enable merchants to accept credit cards and ensure consumers have a safe, efficient, and secure way to pay. Companies in the value chain split up an overall fee of around 2.3% of the transaction amount, although merchants can pay as little as 2% and as much as 8–10% in some cases. The credit card issuer receives most of the fees (roughly 67%), the service provider comes in second (roughly 16%), and the acquirer and credit card brand split the remaining amounts.
How Do Payment Processors Get Paid?
Payment processors generate revenue by charging a transaction fee, a percentage of the transaction, plus a fixed price per transaction in dollars. The fee is typically calculated based on various factors, such as the type of credit card, the amount of the sale, and the type of business. The fee includes components charged by the merchant’s bank, the card network, the acquiring bank, and the payment processor. The fees in percentage are usually combined and listed as one rate, while the dollar amount is listed separately.
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