Are you wondering how to handle your cash and card payments easily? It’s not magic—it’s all about the right business payment services software. Payment processing is the system that helps companies take money from customers, ensuring it moves safely and quickly from your account to the business’s account. The payment gateway market is expected to reach USD 26.7 billion in 2024 and expand to USD 48.4 billion by 2029. 

This process makes it easier for customers to pay for goods or services. Many different business payment services are available, each with its own features—some are great for in-store payments, while others are perfect for online shopping. Comparing these options helps businesses find the best fit for their needs, making transactions smooth and secure.

What to Consider When Choosing a Payment Processing Software

Around 88% of online shoppers are less likely to return to a website after a bad user experience, emphasizing the critical role of intuitive and efficient payment processing software in driving customer satisfaction and retention. Choosing the right payment processing software for your small business can feel like picking the perfect toy from a giant toy store. Let’s break it down into simple steps.

1. Transaction Fees

First, think about the transaction fees. These are the extra costs you pay when a customer uses a card. Credit cards, debit cards, and Automated Clearing House (ACH) transactions all have different fees. Credit card fees are usually higher than debit card fees, and ACH transactions can be cheaper. Understanding these differences is vital when selecting business payment services.

2. Online vs. In-Person Fees

Next, consider the fees for online vs. in-person payments. Some business payment systems charge more for online transactions than for in-person ones. So, if you sell a lot online, look for software with low online fees. This can help save money in the long run.

3. Pricing Structures

There are different pricing structures to consider:

• Flat Rate: You pay the same fee for every transaction.

• Interchange-Plus: You pay the cost from the card network plus a small fee.

• Subscription Models: You pay a monthly fee instead of a per-transaction fee.

Think about which pricing model best suits your business. Different business payment services offer different pricing structures, so choose one that aligns with your sales volume and transaction types.

4. Customer Service

Choose a reliable payment system with 24/7 support that offers great customer service. If something goes wrong, you need help quickly. Good customer service is essential for smooth business operations and promptly resolving issues.

5. Simplicity and Specific Business Needs

Finally, choose software that is simple to use and meets your specific needs. You might not need a complicated system if you have a small store. But if you run an online shop, you need something that handles online payments smoothly. Suitable business payment systems make transactions straightforward and secure for you and your customers.

Now that we’ve covered the basics, let’s explore some top payment processing options that small businesses swear by.

Know more: Efficiency at Every Click: B2B Sales Automation for Time Optimization

Top Payment Processing Software Options for Small Businesses

When choosing business payment services software for your small business, several options stand out with their unique features and benefits. Clover offers versatile POS (point of sale) solutions with customizable hardware and software, while Square provides user-friendly mobile payments and free POS software plans. Stax specializes in transparent pricing and volume discounts, while Stripe offers seamless online payment processing and support for high-risk merchants. 

Payment Depot stands out with its subscription-based pricing model and quick deposit options, and Helcim offers comprehensive omnichannel payment processing with robust security features. Each software option caters to different business needs, from volume discounts to high-risk merchant support, ensuring businesses can find the right fit for their specific requirements. 

With 1.3 trillion non-cash transactions made globally in 2023, it is more crucial than ever to have dependable, secure payment processing software to take online and cashless payments. The business payment services provide a range of features and benefits, allowing small businesses to streamline their payment processes effectively. Here is a detailed discussion of the top payment processing platforms:

1. Clover

Clover, launched in 2012, is a cloud-based business payment services provider and POS system that offers in-store and online payment processing. It utilizes a flat-rate pricing model, charging 2.3% to 2.6% plus 10¢ per transaction for in-person payments and 3.5% plus 10¢ for online payments.

Here are some features

• Mobile device payment capabilities

• Wireless payment processing

• Advanced POS systems

• Virtual terminals for online transactions

• Detailed analytics and reporting tools

• Integrated merchant accounts for streamlined operations

• A broad app marketplace for enhanced functionality

Pros

Clover provides extensive features that support various business operations. It excels in inventory management, employee scheduling, and customer relationship management with integrated CRM and offers advanced analytics for better business insights. This makes Clover a versatile partner for businesses seeking comprehensive payment processing solutions.

Cons

Cost is a significant consideration for small businesses, and Clover can be expensive. Monthly software subscription fees can go up to $69.95, higher than many competitors. Additionally, the cost of POS hardware, ranging from $49 to $1,649, can be prohibitive for small business owners.

2. Square

Square is an affordable business payment services provider that operates on a flat-rate pricing model with no monthly subscription fees. Square charges 2.6% plus 10¢ for in-person transactions and 2.9% plus 30¢ for online transactions.

Here are some features:

• Comprehensive POS systems

• Free invoicing tools

• Complimentary mobile card reader

• API integrations for customization

• Detailed analytics and reporting

• Specialized software solutions for retail and restaurants

Pros

Square’s cost-effective pricing is a significant advantage, with no fees for early termination, activation, refunds, or chargebacks. Additionally, Square does not charge for monthly subscriptions or PCI compliance, which ensures secure payment transactions. Users also benefit from free POS software and a mobile card reader, making it an attractive option for startups and small businesses.

Cons

Square does not support high-risk merchants, limiting its applicability to businesses flagged as having a higher risk of fraud or chargebacks. Furthermore, 24/7 customer support is only available with Square’s paid plan options, which might be a drawback for some users.

3. Stax by Fattmerchant

Stax is a business payment services provider that operates on a membership model, charging businesses a monthly subscription fee between $99 and $199. In addition to this fee, businesses pay interchange fees and a per-transaction fee ranging from 8¢ to 15¢.

Here are some features:

• Round-the-clock customer support for continuous assistance

• Advanced Point of Sale (POS) systems to streamline transactions

• Secure physical credit card terminals

• Complimentary virtual terminal for online transactions

• Versatile payment gateways for various payment methods

• Options for same-day funding to improve cash flow

• Ensured PCI compliance for transaction security

• Fully integrated merchant accounts for seamless operation

Pros

Stax’s key advantages include 24/7 customer service and same-day deposit options. PCI compliance ensures secure transactions. The interchange-plus pricing structure, which avoids additional percentage-based processing fees, can be particularly cost-effective for businesses with high transaction volumes. Additionally, Stax does not require long-term contracts, offering businesses flexibility.

Cons

The flat-rate monthly subscription fee of $99 to $199 may not be economical for businesses with low transaction volumes. Moreover, Stax does not cater to high-risk merchants, limiting its applicability to some business types.

4. Stripe

Stripe is a credit card processing company and payment business services that uses a flat-rate pricing model, charging 2.9% plus 5¢ for online payments and 2.5% plus 30¢ for in-person transactions.

Here are some features:

• Offers a virtual terminal for online payments.

• Provides a physical terminal for in-person transactions.

• Includes a vast library of platforms and extensions.

• Supports international payments in over 135 currencies.

• Provides 24/7 customer service.

• Integrates billing and invoicing capabilities.

Pros:

Stripe doesn’t charge monthly subscriptions or set-up fees and provides 24/7 customer service. It supports payments in 135 different currencies and offers various extensions for sales analytics, inventory management, customer management, and tax calculation. Additionally, Stripe includes invoicing and billing functions within its platform.

Cons:

Stripe isn’t suitable for high-risk merchants. Moreover, its application programming interface (API) requires more software development skills than many competitor platforms.

5. Payment Depot

Payment Depot is a popular business payment service that operates on a membership-based model. It charges interchange fees plus a per-transaction fee ranging from 7¢ to 15¢.

Here are some features:

• Access to a free virtual terminal.

• Provision of physical card terminals for in-store transactions.

• Round-the-clock customer service for your convenience.

• Ensures PCI compliance for secure transactions.

• Provides a payment gateway for online transactions.

• Integrated merchant accounts for seamless processing.

Pros:

Payment Depot offers a risk-free 90-day trial and doesn’t impose cancellation fees. It ensures PCI compliance and provides 24/7 customer service. Unlike other processors, Payment Depot doesn’t discriminate between online and in-person transactions in terms of pricing. Instead, it determines transaction costs based on plan types. For instance, its $79-per-month plan charges interchange fees plus 15¢ per transaction, while its $199-per-month plan charges interchange fees plus 7¢ per transaction.

Cons:

Payment Depot isn’t suitable for high-risk merchants, and its membership-based pricing structure may be better for businesses with lower monthly credit card income. Additionally, cheaper plans come with a maximum monthly transaction limit.

6. Helcim

If you are looking for a business payment services provider, consider Helcim. They charge interchange fees plus 0.3% of your total transaction cost and 8¢ per transaction for in-person payments. For keyed transactions, interchange fees plus 0.05% of the total transaction cost and 25¢.

Here are some features:

• Ensures PCI compliance to keep your transactions secure.

• No monthly fees, ensuring cost-effectiveness.

• Provides integrated merchant accounts for seamless processing.

• Offers a virtual terminal for convenient online transactions.

• Includes a POS system for in-store payments.

• Allows processing through mobile devices for flexibility on the go.

Pros:

Helcim doesn’t charge a monthly subscription, set-up, PCI compliance, or cancellation fees. Plus, if your business processes more than $25,000 in transactions a month, you get discounts.

Cons:

They don’t support high-risk merchants or provide 24/7 support. Also, their volume discounts suit high-volume businesses better than low-volume ones.

7. WizPay by WizCommerce

WizPay by WizCommerce ensures seamless payments and painless profits. Accept payments securely and effortlessly, directly from the app, as your customers prefer.

Here are some features:

• Securely process payments with our industry-leading Level 1 PCI-compliant service.

• Protect your sensitive data with state-of-the-art encryption and tokenization methods.

• Reduce reconciliation effort by integrating with your favorite accounting systems such as QuickBooks, FreshBooks, and Zoho.

• Get the lowest processing rates in the industry, ensuring cost-effectiveness.

Pros:

• WizPay simplifies payments with secure storage of customer details and flexible charging options based on your terms.

• Seamlessly process full or partial refunds directly from the app, with options to return funds or store credits for future orders.

Cons:

WizPay is constantly improving to add more dynamic features.

Special Considerations for Software Selection

Imagine you’re selecting the ultimate payment system that ensures every feature fits perfectly and can be expanded easily as your business grows. Choosing the right business payment services software for small companies is similar to other essential considerations.

1. Ease of Integration

First, consider how easily the software can connect to your current systems. This is called ease of integration. You want business payment services that can easily plug into what you’re already using without causing problems. For example, if you have a website selling products, the payment software should work smoothly with your website.

2. Security Features

Next, consider the security features. Just like you want to ensure the playground is safe for kids, you want to ensure your payment processing is safe for your customers. Look for business payment solutions that offer robust security measures, like encryption and fraud detection, to protect your customers’ information.

3. Compatibility with Existing Systems

Check if the software is compatible with your existing systems. This means it should work well with the tools and software you already use in your business. If you use a specific accounting software, ensure the payment processing software can easily share data. This helps in keeping everything running smoothly and avoids extra work.

4. Scalability and Flexibility

Another essential thing is scalability. This means the software can grow with your business. Imagine your playground needs to get bigger as more kids come to play. Similarly, your business payment services software should be able to handle more transactions as your business grows. 

Flexibility is also crucial. Your business might change over time, like adding new products or services. The best business payment solutions should be flexible enough to adapt to these changes without a complete overhaul.

Armed with this knowledge, let’s address some common questions about payment processing for small businesses.

Payment Processing for Small Businesses FAQ

How Do Small Businesses Handle Payments?

Small businesses process payments in person or online. They often accept various methods, such as cash, checks, ACH transfers, and credit or debit cards. Many use third-party business payment services to handle credit and debit card transactions smoothly.

How Does a Business Handle Payments?

Businesses handle payments both in person and online. They usually use payment processors to accept online payments, including ACH transfers and credit or debit cards. These business payment services make transactions secure and efficient.

How Can Small Businesses Accept Payments Online?

Small businesses can accept online payments using payment processors. These services enable payments via debit cards, credit cards, and ACH transfers. Different payment processors have different fee structures and offer various benefits, such as integrated merchant accounts and payment gateways, making them essential business payment services.

Know more: A Guide To Reducing Wholesale Credit Card Processing Rates

Conclusion

Payment processing is the backbone of your financial transactions, ensuring that payments are handled smoothly, securely, and efficiently. The right business payment services can make a significant difference, streamlining operations and enhancing customer satisfaction. By focusing on the key elements, you can find a solution that meets your unique needs and supports your business as it grows. Remember, the right choice in payment processing facilitates transactions and empowers your business to thrive in a competitive market.

WizCommerce stands out from other POS systems by supporting Level 3 credit card processing. It collects detailed transaction information like item specifics, taxes, and shipping details. By partnering with Level 3-capable gateways and processors, WizCommerce ensures accurate data transmission and lower interchange rates. Ready to see it in action? Book a demo today!