There is a moment in the life of every small business when the owner realizes that “cash or check only” is costing more than it saves. Customers don’t carry cash the way they used to, online buyers expect a checkout button, and a business that can’t take a card looks like a hobby. Accepting credit cards is one of the simplest ways to signal that you are open, legitimate, and ready to be paid.
The good news is that getting set up has never been easier or cheaper to start. The less obvious news is that the fees vary more than most people realize, and the right choice depends on how and where you sell. This article walks through the main options, what they charge, and how to sign up.
How credit card fees work
- Every card transaction has a cost, and someone has to pay it. Most of that cost is called interchange, a fee set by the card networks (Visa, Mastercard, Discover, American Express) and paid to the bank that issued the customer’s card. On top of interchange, your processor adds its own markup.
- Processors package these costs in one of two ways. Flat-rate pricing gives you one simple number, such as a percentage of the sale plus a small fixed fee per transaction. You always know what you’ll pay, which makes it ideal for new and smaller businesses. Interchange-plus pricing passes the actual interchange cost through to you and adds a published markup. It is more transparent and usually cheaper at higher volumes, but your monthly bill will vary depending on which cards your customers use.
- One more distinction matters a great deal: in-person payments (card tapped, dipped, or swiped) are cheaper than online or manually keyed payments, because the card is physically present and fraud risk is lower. Expect to pay noticeably more for every sale made through a website or typed in by hand.
Square
Website: https://squareup.com
Square is the default starting point for many small businesses, especially those that sell in person at a shop, market, or event. On Square’s Free plan, US rates are 2.6% plus 15 cents in person, 3.3% plus 30 cents online, and 3.5% plus 15 cents for keyed payments. Upgrading to Square Plus lowers in-person processing to 2.5% plus 15 cents, and Square Premium to 2.4% plus 15 cents, with both paid tiers charging 2.9% plus 30 cents online instead of 3.3%. Square Plus runs $49 per month per location. Square fees: every rate for in-person, online, and keyed payments in 2026 +2
Be aware that Square raised its online rates this year. Online fees on the Free plan rose as high as 3.3% plus 30 cents on January 13, 2026. If you sell mostly online, compare carefully before choosing Square for your website checkout. Also note that when you refund a customer, Square returns the sale amount but keeps the original processing fee. swipesimplekoronapos
Stripe
Website: https://stripe.com
Stripe is the go-to choice for online businesses, subscription services, and anyone building a custom checkout. It integrates with WordPress, WooCommerce, and most website builders. Stripe’s Standard plan has no monthly platform fee and charges 2.9% plus 30 cents per successful domestic transaction regardless of volume. Other costs to know: manually entered cards run 3.4% plus 30 cents, and in-person Stripe Terminal payments are 2.7% plus 5 cents. Chargeback fees are $15 per dispute, and instant payouts cost 1% with a 50-cent minimum. # Stripe Pricing 2026: Total Transaction & Add-on Costs +2
Stripe also negotiates. For higher-volume businesses, Stripe offers custom pricing with interchange-plus rates and volume discounts. If your business processes significant monthly volume, it is worth asking. costbench
PayPal
Website: https://www.paypal.com/us/business
PayPal’s biggest advantage is customer trust. Many buyers will complete a purchase simply because they see the PayPal button. That convenience comes at a price. PayPal’s US merchant fees, last updated July 15, 2026, put PayPal Checkout at 3.49% plus 49 cents, standard credit and debit card payments at 2.99% plus 49 cents, and card-present or QR code transactions at 2.29% plus 9 cents. Expanded Checkout card processing starts at 2.89% plus 29 cents, and Pay Later costs 4.99% plus 49 cents. PayPal also charges a $20 dispute or chargeback fee per case on many merchant transactions. Credit Card Processing for Small Business: 2026 Rates +2
That 49-cent fixed fee hurts most on small sales. If your average order is under $20, PayPal can take a surprisingly large bite.
Clover
Website: https://www.clover.com
Clover, owned by Fiserv, is a full point-of-sale system with countertop terminals, handheld devices, and an app marketplace. It is popular with restaurants and retail shops. Clover transaction fees are 2.3% to 2.6% plus 10 cents for card-present sales and 3.5% plus 10 cents for keyed-in transactions. Hardware is a real upfront cost: $199 for the Clover Go card reader, $349 for a countertop reader, $749 for the Clover Flex with receipt printer, and $849 for the Clover Mini. koronaposnerdwallet
One important caution: Clover is distributed through banks, processors, and resellers, so the same hardware can come with very different processing rates, monthly fees, PCI fees, and contract terms. Read every page of the agreement before you sign, and avoid long-term equipment leases. adtribute
Helcim
Website: https://www.helcim.com
Helcim is a good example of interchange-plus pricing without the paperwork headache of a traditional merchant account. Helcim runs an interchange-plus model with no monthly fee, no contracts, and no minimums. Its pricing starts at interchange plus 0.40% plus 8 cents in person and interchange plus 0.50% plus 25 cents online, with average effective rates around 1.93% in person and 2.49% online. Helcim’s margin shrinks automatically as monthly card volume grows. Its card reader costs $199 upfront. Best Merchant Account Solutions for 2026 +3
Helcim tends to make the most sense once your card volume has grown beyond a few thousand dollars a month and flat-rate fees start to feel heavy.
Shopify Payments
Website: https://www.shopify.com/payments
If your store runs on Shopify, its built-in processor is usually the cheapest path. US online rates through Shopify Payments are 2.9% plus 30 cents on Basic, 2.7% plus 30 cents on the Shopify plan, and 2.5% plus 30 cents on Advanced. The catch: if you use an outside gateway instead, Shopify adds its own fee on top of that gateway’s charges, 2% on Basic, 1% on the Shopify plan, and 0.6% on Advanced. launchmystorelaunchmystore
What a $100 sale actually costs
Putting the numbers side by side makes the differences clear. On a $100 sale taken in person through Square’s Free plan, you pay $2.75. The same $100 sold online through Square costs $3.60. Through Stripe or Shopify Basic online, it costs $3.20. Through PayPal’s standard card flow, it costs $3.48, and through the PayPal Checkout button, $3.98.
A dollar or less per sale may not sound like much, but at 200 sales a month, the gap between the cheapest and most expensive option is roughly $150 a month, or nearly $2,000 a year. That is real money for a small business.
How to sign up
- The signup process is similar across nearly every modern processor and usually takes 15 to 30 minutes online. Have the following ready before you start.
- Your legal business name and structure (sole proprietor, LLC, corporation). Sole proprietors can often sign up with their own name.
- Your tax ID. This is your EIN if you have one, or your Social Security number if you operate as a sole proprietor. Getting a free EIN from the IRS at https://www.irs.gov is worth doing, since it keeps your SSN off more forms.
- A business bank account with routing and account numbers for deposits. Keeping business deposits out of your personal account makes bookkeeping and taxes far easier.
- A description of what you sell, your website if you have one, and an estimate of your average sale and monthly volume.
- Personal identification for the owner, typically name, date of birth, and home address.
- Most processors approve you instantly or within a day or two. Some will hold your first payouts briefly or ask for extra documents if your business type is considered higher risk. Deposits generally arrive within one to two business days, with instant transfers available for an extra fee.
Things to watch for
- Refunds usually don’t return your processing fee. Most processors keep the fee from the original sale even when you refund the customer.
- Chargebacks cost money. When a customer disputes a charge, expect a fee of around $15 to $20 per case, win or lose. Clear receipts, good product descriptions, and responsive customer service reduce disputes.
- Contracts and leases. Flat-rate processors like Square, Stripe, and PayPal let you leave anytime. Some traditional merchant accounts and resellers lock you into multi-year contracts with early termination fees or equipment leases that cost far more than buying the hardware outright. Never sign an equipment lease.
- Surcharging rules. Passing card fees on to customers is allowed in many cases, but there are card network rules and state laws governing how you do it, including disclosure requirements and caps. Debit cards generally cannot be surcharged. Check the rules before adding a fee at checkout.
- Tax reporting. Processors report your card sales to the IRS on Form 1099-K. Keep your own records so the numbers match your tax return, and remember that processing fees are a deductible business expense.
Which one is right for you?
If you sell mostly in person, at a shop, a farmers market, or events, Square or Clover is a strong fit. If you sell mostly online or through a WordPress or WooCommerce site, Stripe is hard to beat. If your customers are used to paying with PayPal, offering it alongside a card option can lift sales despite the higher fee. If you run on Shopify, use Shopify Payments to avoid the outside-gateway surcharge. And once your monthly card volume grows, look at an interchange-plus provider like Helcim, or ask your current processor for custom pricing.
Many businesses use more than one. A Square reader for in-person sales and Stripe for the website is a common and sensible combination.
The bottom line
Taking credit cards is no longer a luxury reserved for big retailers. With a phone, a bank account, and half an hour, almost any business can be accepting payments by tomorrow. Treat your payment processing the way you’d treat any other business expense: understand what you’re paying, compare your options once a year, and don’t be afraid to switch when the numbers say you should. That is what treating your business like a business looks like.
Rates in this article reflect published pricing as of October 2026. Processors change their fees periodically, so confirm current rates on each provider’s website before signing up.