What a Credit Card Processing Setup Includes
Before you compare plans, learn the two pieces Authorize.net's pages describe and the fees each one carries.
You have decided to take cards at your small business. Now the quotes start arriving, each with its own percentages and monthly charges. Before you compare them, learn what a credit card processing setup is. Learn what fees ride on it. Then check what each company's own pricing page says today.
The two pieces: merchant account and payment gateway
Authorize.net's pages describe a setup in two parts, and its All-in-One plan sells them as one bundle.
Authorize.net's pricing page says a merchant account is a type of bank account that lets businesses accept payments by debit or credit cards. Authorize.net's pricing page says the account holds the money from card sales. From there, the funds move into your business bank account. The same page says you must have a merchant account in order to accept credit cards. When you apply for a merchant account, Authorize.net's pricing page says an underwriter looks at your industry, processing history, personal credit, and business creditworthiness.
Authorize.net's pricing page says a payment gateway securely transmits payment data between a customer, your website or terminal, and the payment networks.
Authorize.net's pricing page says its All-in-one plan includes both a payment gateway and a merchant account. Authorize.net's page says its All-in-One plan bundles a payment gateway and a merchant account. The same page says its Gateway Only plan connects to an existing merchant account without replacing it.
The fee types that make up your costs
Authorize.net's page lists the fee types a merchant account can carry. They include:
- Percentage-based fees
- Fixed per-transaction fees
- Monthly service or gateway fees
- Batch or settlement fees
- Cross-border surcharges
- PCI compliance fees
The same page says these fee types set the total cost of taking payments. They also shape which pricing model fits a business.
What processors' own pricing pages state
Here is what five companies publish, in their own words. Published prices change, so confirm on each page before you sign up.
Stripe's pricing page says its standard online rate is 2.9% + 30¢ per successful transaction for domestic cards. The same page says in-person card payments cost 2.7% + 5¢ per successful transaction for domestic cards. The page says its standard plan has no setup fees, monthly fees, or hidden fees. It also says Stripe offers custom pricing for businesses with large processing volumes, and eligibility varies by market.
Square's pricing page says with Square Free there are no monthly subscription costs, and you only pay processing fees when you take a payment. In-person card payments run from 2.6% + 15¢ to 2.4% + 15¢, depending on the plan. Online and invoice card payments run from 3.3% + 30¢ to 2.9% + 30¢, depending on the plan. The monthly fee per location is $0, $49 or $149, and Square Plus and Square Premium charge it per location. The page says you can cancel or switch plans anytime. It also says businesses that process over $250,000 per year can talk to its team about custom pricing.
Shopify's pricing page says the Basic plan is $29 a month and card rates start at 2.9% + 30¢ USD. The Grow plan is $89 a month with rates starting at 2.7% + 30¢. The Advanced plan is $359 a month with rates starting at 2.5% + 30¢. Monthly pricing is $39, $105 or $399 USD, against $29, $89 or $359 when paid yearly. The page also lists third-party transaction fees of 2%.
PayPal's fee page says standard credit and debit card payments cost 2.99% plus a fixed fee. The page says the fixed fee for commercial transactions received in US dollars is 0.49 USD. PayPal Checkout and PayPal Guest Checkout cost 3.49% plus a fixed fee. PayPal Point of Sale card present transactions cost 2.29% + 0.09 USD.
Authorize.net's page says the All-in-One plan is $25 per month plus 2.9% plus 30 cents per transaction. The Gateway Only plan is $25 per month plus 10 cents per transaction and a 10 cent daily batch fee. The page says it charges no setup fees and no early termination fees. You can cancel your gateway subscription at any time with no penalty.
How your sales mix changes what you pay
Each processor's page lists different rates for different ways a payment comes in.
Square's pricing page says manual entry or card on file payments cost 3.5% + 15¢.
Debit can cost less than credit. Authorize.net's page says debit interchange fees are lower than credit card fees, reducing merchant costs.
Authorize.net's page says ACH bank transfers are best for large invoices. Stripe's pricing page says ACH Direct Debit costs 0.8% with a $5.00 cap. PayPal's fee page says its domestic ACH Services rate is 0.80%, capped at $5.00 per transaction. Square's pricing page says ACH bank transfers on invoices cost 1% with a $1 minimum. Authorize.net's page says ACH payments, also called eChecks, typically involve low-percentage fees because funds move directly between bank accounts. Its eCheck processing is an add-on at 0.75% per transaction. The same page says ACH bank transfers are best for large invoices, recurring payments, subscriptions, and B2B transactions.
Cash sits outside all of this. Authorize.net's page says cash payments involve no processor and merchants pay zero processing fees.
Monthly plan or pay only when you take a payment?
Square's pricing page says its plans start at no cost and have no hidden fees or locked-in contracts. Shopify's pricing page says the Basic plan is $29 a month when paid yearly. Authorize.net's page says the included lower transaction rates typically offset the monthly fee for businesses processing more than a certain amount per month.
What to check before you sign up
Work through this list on each processor's own page:
- The rate for each way you take money: at the counter, over the web, typed in, or billed by invoice
- Any monthly fee, and whether it is per location
- Setup fees and early termination fees
- The ACH or eCheck rate, if you bill large invoices
- Whether custom pricing exists at your volume
Curious how a single sale compares across processors? Read a forty dollar sale at the counter. For what it costs to get your money faster, see paying to be paid tonight.
Weigh each page against your own numbers, and confirm every price on the day you sign.