Best Payment Processing Services for Small Businesses: Brief Comparison

Best Payment Processing Services for Small Businesses: Brief Comparison

Payment processing services are a completely separate product from POS systems. You didn’t think so, did you?

Even though many companies offer processing services together with a POS or Point of Sale system, others specialize in payment processing only.

Whether you are a brick-and-mortar store or an ecommerce business looking for ecommerce payment processing, you will need to make sure that your business has a secure way to process website payments.

In this article, we will review all the best payment processing companies and offer you some great tips on how to choose the right company for your business’s needs.

Top Payment Processing Companies

Payment processing companies refer to all processes that occur after your customer providers their card data for a transaction.

Whether your customer manually inputs the card information or swipes the card, the processes like encrypting the information, directing their information to the bank and back to your business’s bank occur.

Payment processing may look different in practice and how it actually works will depend on the type of payment processing service you are currently working with.

Online Payment Processing Services

If you are running an ecommerce store, you might be looking for online payment processing companies.

There are many online payment services for you to choose from. The wide range of services available will include payment gateway providers and money wiring services.

When it comes to such services, there are three standouts:

  1. Authorize.Net – Authorize.Net allows your website to accept payments from customers directly on your site. If you already have a merchant account, you can immediately access the online payment processing system by signing up for their payment gateway plan. If you don’t have a merchant account, you may get a combination plan which includes both a payment gateway and a merchant account.
  2. Shopify Payments – Shopify’s credit card payment processing system helps you capture payments instantly. This system is perfect for all Shopify users and for those who are interested in creating online stores and selling online. With Shopify, you can turn on your website into an actual store and start taking payments immediately. Shopify Payments gateway is automatically approved for your store and accepts all major credit cards. Shopify POS helps you manage your orders, inventory, and payments easily. The sales transactions meet the world’s highest security standards for card processing or Level 1 PCI Compliance. You can track all your card payment on your mobile app. In other words, you can turn your phone into a cash register.
  3. Veem – Veem offers free online money wiring for all business transactions. Whether you need to pay a vendor for an invoice or inventory shipment, Veem processes these payments through blockchain technology. Just be sure that any global wires you send are accepted in local currencies/ Otherwise, the payment processing company will charge $20 fee.

Just Payment Processing Service Providers

If you are looking for payment processing companies online – you should consider QuickBooks Payments for your needs.

This payment processing service provider will give you access to both an online and desktop version that will integrate with its version of QuickBooks accounting software.

You have two options – you can pay as you go or pay monthly.

If you decide to pay as you go, here is how the costs will be structured:

  • Free bank transfers
  • No monthly fee
  • Online invoice card payments (2.9% + $0.25)
  • Keyed in card payments (3.1% + $0.25)

If you pay monthly, these will be your expenses:

  • Free bank transfers
  • $16/month
  • Online invoice card payments (2.75% + $0.25)
  • Keyed in card payments (2.9% + $0.25)

If you choose QuickBooks Payments Desktop as an option, you will have to decide how your payments are going to be structured. 

POS (Point of Sale) and Payment Processing Companies: All-in-One Solution

QuickBooks won’t include a POS system (a system that helps you take in-person payments). If you are looking for an all-in-one solution, you need to look for companies that offer POS systems and payment processing as packages.

If you are running a physical store, considering online payment service providers like Authorize.Net or Shopify Payments could be the best option for your business.

Payment processing companies that offer POS systems will provide an all-in-one experience and you will be able to take advantage of a better deal. This is due to economies of scale – getting all services from one place will save you both time and money.

Square POS system, for example, is one of the best companies on the market that offers all-in-one services.

Square POS system come at different sizes, shapes, and prices. The payment processing fees you will access through Square will depend on which Point of Sale system you use.

Usually, for every Square system, the transactions will be priced in this order

  • 75% of the transaction value for every chip, magstripe or contactless payment transaction
  • 5% of transaction value + $0.15/keyed-in payments.

Clover POS system is another great option for simplifying your business’s transactions. Clover is also an all-in-one solution, however, unlike Square, Clover offers more integrated POS systems.

The POS systems are functional on their own whereas many of Square’s systems require smart devices.

Also, most of Clover’s Point of Sale systems come with a receipt printer included. This is a huge advantage for brick-and-mortar businesses.

What Kind of Service Does Your Small Business Need?

Yes, we know – it is easy to feel overwhelmed by the options ahead of you.

You as a business owner and a person who knows your company best will have to be the decision-maker.

Envision your checkout process and make your decision based on the process. Who is your typical purchaser? Where do your average transactions take place? How will your customers want to pay for the products or services you sell?

Ask yourself these questions and based on the answers choose from one of the top payment processing companies.

By following our advice – it will be hard to go wrong.