Best tools to process credit card payments online
Article by Chris Costi, Last update at September 3, 2025
Best tools to process credit card payments online For 2023
Credit card processing is the most important aspect of online trading. Which company you choose depends on finding the best rates and the features you need. The merchant account or Credit Card Processing (CCP) Company you deal with will have to be compatible with your website and offer cost effective rates. They must also offer reliability, service and the features you will need to run your online business efficiently. There are many options available and you can choose a traditional merchant account or a 3rd party pay as you go processor. Key features are mobile processing of all types of cards and e-wallets so that you do not lose any sales. Most Point of Sale systems offer advanced features for mobile payments together with inventory management and key features needed to keep track of sales and customers.
Flagship merchant services
Multiple payment methods
Compatible rates
Business Management Portal
Square
Set processing rates
Online ordering platform
Advanced processing solutions
PayPal
Widely accepted
Easy to use and set up
Flat-rate pricing
Choosing the best rates
When looking at the processing rates and fees of different CCP companies it might seem a bit confusing. You will find terms like ‘tiered pricing’ or ‘interchange pricing’ and other companies who offer set and predictable pricing. Tiered pricing charge different fee levels for each transaction, depending on the card used, most merchants do not prefer this method because it is often expensive and holds hidden fees that are unpredictable. Interchange pricing has two processing rates, the markup fee and the transaction fee. With this method, merchants pay a flat fee plus a small percentage on each transaction. Merchants often prefer the interchange method as it is consistent. The most important factor is transparency and you should choose a company that is up front with rates and fees with not hidden costs. Avoid long term commitments and choose a month to month contract so that you have the flexibility to switch to another company. Signing a contract can lead to expensive cancellation fees.
Flagship merchant services
There are no long term contracts with Flag Merchant Services. They offer a tiered and interchange plus rate with multiple pricing options that are aimed at helping new businesses. Their tiered rates start at 0.38% + $0.19 per transaction for debit cards and 1.58% for credit cards. This is considered to be a very good rate when compared to other credit card processing companies.
Square
The Square pricing structure automatically deducts a standard 2.75% from every swiped transaction and 3.5% plus 15 cents from every keyed in payment. The other standard charge is 1% which is deducted from each deposit. You will receive a Magstrip reader free, and if you do not need any extras, this is the amount you can expect to pay.
PayPal
With PayPal, there is no contract or monthly fees charged for payment processing but you will be charged 2.9% + $0.30 per transaction for online payments. All plans include e-Commerce integrations and unlike other merchant accounts you can implement PayPal as your exclusive means of accepting payments, or as a supplement to your existing payment platform
Stripe
Stripe is primarily used by online businesses of all kinds including fund raising and non-profit institutions. Stripe charge 2.9% + 30 cents per successful transaction and 3.9% on international sales. There are no lengthy contracts to sign. With Stripe you will have access to a complete platform of online payments and pay as you go pricing.
Paysafe.com
Paysafe do not advertise their prices online and you would need to request a quote. Prices depend on the type of business and the volume. Their software can be used for online e-Commerce businesses. They offer alternative payments through Omni-channel and secure cross-border transactions with white label credit solutions, mobile and delivery platforms, in an all in one solution.
What to consider when choosing an online payment processor
Rates and Fees
The most important consideration is cost. As all transactions online are conducted with cards, what you get charged will impact on the bottom line. All credit card processing companies take a percentage of every sale and this varies from company to company. Some charge monthly fees as well as rates while others work on a transaction fee only.
The difference between CCP and POS
Credit card processing terminals have only one use and that is to process credit card transactions. Point of Sale systems offer advanced features which include CCP but also offer management features like inventory and cash drawer management. Using a POS system that also offers credit card processing is costlier but the benefits offered will help you keep track of all sides of your business in the long run.
Security
All payment processing companies use a high standard of security measurements to ensure safe online payments. Global security measures bring an added layer of security due to cryptographic processing. It is important to ensure that your customers are protected and that their personal information and financial details are secure. Some CCP companies also make sure that you are PCI compliant which provides a framework for merchants to process and store card information securely. In most cases this information is not stored on the merchants’ server for security reasons.
Managing an online store
There are many e-Commerce platforms online that support stores of all sizes. You can use these sites to develop your website, with multiple templates to choose from. Most of these platforms include a shopping basket and a checkout system that is integrated with a payment processor. This can be a CCP that is part of the package offered or links to 3rd party credit card processing companies.
