The best payment processor for a small business is the one that matches where you take money: in person, online, by invoice or on a repeat schedule. Check how fast funds reach your bank, what hardware you need and who handles card security. This page lists ten providers in no particular order, then shows how to choose.
Most small businesses don't pick a payment processor so much as inherit one. You open a shop, someone hands you a card reader, and three years later you're still on it without knowing whether it suits the way your customers now buy. That's worth fixing, because the processor touches every single sale you make.
Below are ten payment processors and gateways, listed alphabetically and in no particular order. They range from big names with free starter accounts to smaller providers built for service practices and B2B invoicing. Each description comes from the provider's own website, re-checked today. I haven't included any processing terms here: they change often and depend on your volume, so get them in writing from each provider you shortlist.
Ten card payment providers side by side
In the free plan column, Yes means the provider's own site describes a free account or a plan you can start on without an ongoing subscription, Trial only means a time-limited trial, and No means you'll speak to sales or choose a plan from the start.
| Tool | Type | Good for | Free plan |
|---|---|---|---|
| Authorize.net | Payment gateway | Businesses wanting a long-established gateway | No |
| Helcim | Card processing with software | Businesses wanting no-contract card processing | Yes |
| PayJunction | Payment processing platform | Auto, vet and dental style practices | No |
| Payment Depot | Merchant account | Established merchants with several users | No |
| PayPal | Checkout and payments | Online sellers wanting a free business account | Yes |
| Paystand | B2B payment platform | B2B firms collecting invoice payments | No |
| Square | POS and card processing | Shops and restaurants starting on a free plan | Yes |
| Stax | Subscription payment processing | Steady-volume merchants wanting one platform | No |
| Stripe | Online payments platform | Developers and online businesses | Yes |
| SumUp | Card readers and POS | Small retailers wanting simple card readers | Yes |
Small business payment processors, A to Z
Authorize.net
Best for: Built for small businesses that want a payment gateway with all-in-one or gateway-only plans and no early termination.
Helcim
Best for: Businesses that want card processing with no contracts, plus a virtual terminal, a card vault and deposits by the next business morning.
PayJunction
Best for: Service practices such as auto repair, vet and dental clinics that want terminals, invoices and recurring billing joined up through no-code integration.
Payment Depot
Best for: Established small merchants who want unlimited users, recurring billing and next business day funding in one platform, without long-term lock-in.
PayPal
Best for: Online sellers who want checkout buttons, payment links, QR codes and subscriptions, with customers able to pay without an account of their own.
Paystand
Best for: Companies collecting large B2B invoice payments who'd rather move them bank to bank than through card charges, on a subscription-based platform.
Square
Best for: Shops, restaurants and appointment businesses that want in-person and online payments with a POS, starting on the free plan and upgrading as they grow.
Stax
Best for: Teams with steady card volume who want invoicing, ACH and recurring billing included in one subscription-style platform rather than bolted on.
Stripe
Best for: Developers and online businesses who want a complete payments platform with payment links and prebuilt checkout, ready to build on.
SumUp
Best for: Small retailers who want card readers and a simple POS they can start on without a monthly subscription or hardware rental.
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The card security duty that stays with you
Here's the part many owners miss. The PCI Security Standards Council, which looks after the card industry's data security standard, says PCI DSS is a baseline set of technical and operational requirements for every business that stores, processes or transmits cardholder data, or could affect its security. It also says each card brand runs its own compliance programme, so the brands themselves are the place to go for the detail.
What that means for you: choosing a processor doesn't hand your card security duties to someone else. A good provider will take on a lot of the heavy lifting, especially if card details never touch your own systems, but you'll still have a part to play. So ask every provider the same question: which parts of PCI compliance do you handle for me, and what am I still responsible for?
Picking a processor in six steps
- Write down every way customers pay you now: counter, website, phone, invoice or repeat billing.
- Rank those channels by how much of your sales they bring in, so the main one drives the decision.
- Check what hardware each provider needs for in-person sales, and whether you buy it or rent it.
- Ask how quickly funds reach your bank account and whether weekends and bank holidays count.
- Ask how card security and PCI compliance are split between you and the provider.
- Get the full processing terms in writing for your volume, then compare like with like.
Matching the provider to how you sell
- Mostly in person: a POS with a card reader keeps the counter quick, and a free starter plan lets you try it on real customers.
- Mostly online: look for payment links, hosted checkout and recurring subscriptions you can switch on without a developer.
- Invoices to other businesses: bank transfer and ACH options often suit big invoices better than card charges.
- Practices and clinics: integration with your practice software saves double entry at the front desk.
What to ask before you sign anything
- Contract length: is there a minimum term, and what happens if you leave early?
- Support hours: who picks up the phone when a card reader fails on a Saturday?
- Disputes: how are chargebacks handled, and what evidence will you need to send?
- Holds: in what situations might the provider hold back funds?
- Moving on: can you take saved customer card details with you if you switch providers later?
If most of your sales happen online, the processor is only half the story. My guide to raising conversions on an online store covers the checkout habits that lose sales before payment even starts. And if you're still setting up, it's worth opening a business bank account online first, so payouts land somewhere separate from your personal account.
Do you make payment processing software for small businesses? Tool makers can ask to be considered for a featured place on this list.
My plain advice on picking a payment processor
Start with the channel that brings in most of your sales and choose for that. A shop that takes the odd online order needs a great counter experience first; an online business that occasionally sells at an event needs a great checkout first. Trying to optimise for everything at once is how people end up with three providers and no clear picture of their takings.
Then ask the security question above before you look at anything else, and get every term in writing. Don't sign a long contract until you've run real sales through the system, and keep your customer data portable so switching later stays an option rather than a project.
Frequently asked questions
What does a payment processor do?
It moves a customer's card or bank payment from their bank to yours, checks it's authorised and settles the funds into your account, usually within a few business days.
What's the difference between a payment gateway and a processor?
A gateway securely passes payment details from your website or terminal, while the processor handles authorisation and settlement. Many providers now offer both together.
Do I need to be PCI compliant if I use a processor?
Yes. The PCI Security Standards Council says its standard applies to any business that stores, processes or transmits cardholder data, so ask your provider which parts they cover for you.
Can I use more than one payment processor?
You can, and some businesses use one for in-person sales and another online. It does mean more reporting to reconcile, so only add a second when there's a clear reason.
Is a free business account enough to start?
For many small sellers, yes. A free starter account lets you take payments straight away, and you can move to a fuller plan once your volume or needs grow.
How long do payouts take?
It depends on the provider and your account. Some offer next business day funding, so ask each one and check whether weekends and holidays count.
