Best Credit Card Processing Options for Small Businesses in 2025

In 2025, small businesses will be in dire need of a good and cheap credit card processing system. Using a good payment processor, companies can ensure an awesome customer experience, very low transaction charges, and an improvement in cash flow down the line. Here is a study into the best credit card processing systems for small businesses in 2025, weighing such factors as features, pros, and cons of each option so that you can make the best informed choice.

Square: Simple and Affordable for Small Businesses

Square is perhaps the easiest and most popular credit card processing for small business services, with no frills, low cost, or hidden charges. From a smartphone or tablet, small business owners can process customer payments through Square’s freely downloaded point-of-sale application. Card-present payments come with an easy 2.6% + 10¢ flat rate per transaction, providing easy cost prediction.

With payments made online, invoicing, and even eCommerce plugins from Square, it becomes more suitable for businesses equally selling online and offline. Because there are no monthly fees, Square is most favorable for small businesses, primarily those with a low number of sales. However, for higher transaction volumes, businesses might find Square’s fees comparatively higher. 

PayPal: Trusted Payment Processor for Online and In-Person Sales

PayPal has always been a time-honored name in trustworthy online payments, and the PayPal credit card processing is phenomenal for a small business that wants to take payments over the internet or in their office. Its fees are competitive, including a standard 2.9% + 30¢ for online payments and 2.7% for in-person. PayPal integrates seamlessly with online e-commerce platforms like Shopify, thus well-fitted for companies with an online presence.

The downside is that PayPal international transaction fees are on the high side, and now and then, accounts will get frozen. Still, based on reputation, security features, and a massive network, it is a good choice for small businesses that value ease of use and international reach.

Stripe: Flexible and Developer-Friendly for Tech-Savvy Businesses

For flexible, developer-friendly credit card processing for small businesses, Stripe is the go-to application. For e-commerce, subscription services, and payment through mobile applications, Stripe provides an arsenal of tools involving API access for flexibility, recurring billing, and international payments.

Its powerful features make it a perfect pick for technically inclined small business owners or companies that have a dev team to support their back. Setup, albeit it involves some technical know-how, comes in handy for complicated projects like SaaS providers and large e-commerce stores, making it a scalable and customizable option.

QuickBooks Payments: Best for Businesses Using QuickBooks for Accounting

QuickBooks Payments is a credit card processing solution that works well for small business that already utilizes Intuit’s QuickBooks for accounting. Because QuickBooks could track payments, work with invoices, and manage assignments, this connection is key. The fee structure is also very competitive-great rate for QuickBooks merchants at 2.9% + 25¢ per transaction for online payments.

Though the system makes reconciliation seamless, it suits businesses reliant on integrated payment and accounting systems. However, QuickBooks Payments does not customize as well as others and hence should not be used for businesses with highly specialized payment needs.

Fattmerchant: Transparent and Subscription-Based Pricing

Fattmerchant offers a completely transparent subscription-based pricing model that fits businesses processing higher transaction volumes. Instead of receiving a percentage of every transaction, they will charge a fixed monthly fee, allowing the business to save money while increasing its transaction volumes. A flat monthly fee starting at $99 is charged by Fattmerchant with rates of 0.15% + 7 cents per transaction.

This pricing structure can be a huge boon for small enterprises that have to process a lot of payments each month. Fattmerchant also includes all the features, including advanced reporting, invoicing, and recurring billing, which makes it suitable for more heavy-duty payment processing businesses.

Helcim: Cost-Effective with Transparent Pricing

He is another big name in small businesses doing credit card processing. Offers no hidden fees and clear, competitive pricing- 1.92% + 10¢ transactions for high, moderate to high transaction amounts. Small businesses will be able to do everything that a much bigger competitor offers, but at a lower price because of the access to reporting tools, invoicing, and subscription billing now offered via Helcim.

Helcim has effective online and offline payment facilities, making it a preferred choice for those businesses looking for a very straightforward but scalable solution. And as icing on the cake, the excellent after-sales service from Helcim ensures that all businesses will have the support they need when they need it.

Shopify Payments: Best for E-Commerce Stores

Shopify Payments is for those businesses that go primarily online and have already adopted Shopify as their e-commerce platform. A business can easily integrate Shopify Payments with their store, making the acceptance of credit cards free of any third-party processor. Transaction fees start at 2.9% + 30¢ per online transaction.

For companies that heavily utilize Shopify for their website, Shopify Payments can help decrease overall transaction costs and ease accounting. Nevertheless, Shopify Payments is not available for applications other than Shopify, thus not appropriate for those using various e-commerce platforms.

Conclusion: Choosing the Right Credit Card Processor for Your Business

When choosing the best credit card processing for small businesses in 2025, hold transaction volume, online versus in-person, fees, and integration with other tools in mind. Square and PayPal work fine for small businesses just getting started, but for established, growing companies, Stripe and QuickBooks Payments offer the advanced features that companies may need. Processing businesses like Fattmerchant and Helcim give cost-effective pricing for higher transaction volumes, while Shopify Payments goes to e-commerce-related businesses.