Top Payment Processing Platforms for Small Businesses

The smell of sweet cake icing fills a small bakery as the owner collects payment for a custom birthday treat. A payment processing platform would benefit the business and its customers. Still, they must find time on their never-ending to-do list for an affordable and reliable option. The store needs a better method to collect payments. The slow process often charges hidden fees, eating into slim profit margins. The solopreneur jots down a note to refer to later, “What are the top payment processing platforms for small businesses?”

Most small business owners want more than another tool for which they must pay monthly fees. Owners want a payment processing system that keeps customers happy, is convenient during busy periods and provides additional tools to help them scale up.

What to Look for in a Payment Processing Platform

Before you can determine the top payment processing platforms for small businesses, you have to know what excellent systems look like. One thing that confuses people is the difference between a payment processor and a point of sale (POS) system. Think of the payment processor as the thing that completes the transactions and works with finances. POS is the vehicle for collecting and organizing information. Many companies offer a unified approach, giving you both elements.

Small businesses have unique considerations that big box stores might not. If you’re running a startup, you might be tight on funds or have fewer transactions than a company with multiple locations. The list of top payment processing platforms considers a few factors that impact your bottom line.

1. Pricing

Additional fees can reduce profits and may put you in the red. Small businesses often undercut established competition by lowering prices until developing a following. Smaller profit margins mean less wiggle room if hit with an unexpected expense.

The best companies are clear about charges and why. You can always set policies with your customers to avoid situations that result in overcharges.

2. Low Learning Curve

Ideally, the payment processing system you choose will be intuitive. Business owners and their employees should be able to pick up the software in a single training session. Many third-party platforms offer online training or customer support until you become familiar with the program.

3. Easy Checkout

Your customers will grow aggravated if they have to fumble around and figure out how to run a payment. Look for a company that offers mobile payments and simple machines for in-store purchases.

4. Speed

Seek a platform that has high uptime rates. The payments should go through in milliseconds, so your customers can be on their way. It might not be the best fit for a busy, growing brand if you notice lag times or the system going down.

5. Integrations

If you’ve already invested in hardware from a point of sale company, make sure the payment processing platform integrates with what you have. Some also work alongside inventory, accounting and e-commerce programs.

What Are the Top Payment Processing Platforms for Small Businesses?

Only the best are on the list of two dozen processing systems researched. The weight of consideration was 40% pricing models, 20% ease of setup, 20% customer support reputation, 20% security and integrations.

If you want to streamline transactions, finding the best payment processing platform is critical. When things flow smoothly, you’ll create a more positive customer experience (CX) and increase sales. The best ones have a few things in common, but each is as unique as the entrepreneurs who utilize them. What are the top payment processing platforms for small businesses?

1. CSG Forte

If you’re looking for a flexible platform designed to help small companies scale without making payment processes too complex, CSG Forte strongly focuses on user-friendliness. It concentrates on omnichannel payment options, including ACH. This platform lets you accept credit and debit cards or electronic checks online or in person. It even have an option for phone orders, which is an excellent add-on for customizations.

CSG Forte works with a network of over 20 banks to allow business owners to access their revenue more quickly, often on the same day they receive the payment. You’ll save stress worrying about cash flow issues.

Key Features

The software offers encryption, validation and fraud detection. Customers praise their personalized support and scalability. Company representatives consult with each client to offer custom pricing and onboarding help. You can get up and running quickly with CSG Forte.

2. Adyen

A Dutch payment company, Adyen offers payment processing for medium and midsize businesses. The service allows companies to accept payments via mobile, online and at physical locations. If you need a single place to keep track of sales, you’ll find Adyen, which provides payment processing, risk management, and financial recordkeeping.

Top clients include McDonald’s, Uber and eBay. You can collect payments and ask the tool to analyze past purchases and buyer behavior. Its Revenue Protect feature taps in to the power of machine learning (ML) and automatically searches for anomalies in real time. If any unusual patterns appear, the program automatically shuts them down and ramps up security measures.

Key Features

The processor automatically retries failed payments. The system also channels payments through the fastest channel for a seamless user experience. Offers a versatile system that can handle business growth.

3. Clover

Clover is another payment processing system used by small businesses. It is known for integrating with other business tools. Payment options include online, mobile and in-person. Users can pay with credit, debit and chip cards. The systems also offer tap-and-go payments via mobile wallets like Apple Pay and Google Pay.

Create a complete POS system by selecting a plan, then adding the devices used to collect payments. Clover offers both card readers and full stations. Something interesting the company features is an app market. Customers can search for and install apps to expand the functionality of their POS system. Think loyalty programs and customer relationship management (CRM) tools.

Key Features

Clover is easy to use and offers various plans to match any business’s budget. It does charge a bit more upfront for hardware, but their processing fees are around 2.3% plus 10 cents per transaction.

4. Square

Online merchants are likely familiar with Square as a payment processing gateway. The company also offers hardware solutions so you can accept credit cards anywhere. Imagine you sell clay earrings and go to local craft fairs. With the Square Handheld, the person can tap their card to the screen and pay you.

You can also choose from a tablet-style reader that prints receipts or a reader for magstripe that works with your smartphone. Pricing is around 2.6% plus a 15-cent per-transaction fee for in-person payments.

Key Features

Square excels in quickly getting a payment processing option in the hands of merchants. The affordability and convenience make it ideal for solopreneurs.

5. Heartland

For a POS, payment processing and payroll system in one, Heartland offers numerous options. It gives clients an account representative to work with them to select the best equipment for their needs and tie it to Heartland’s payment processing software.

In addition to offering hardware and POS machines, the provider processes online and mobile payments. If you need an invoicing solution, the company offers that as well. The company is known for stellar security, ensuring compliance through Heartland Secure, and focusing on Payment Card Industry Data Security Standards (PCI DSS).

Key Features

Something rather unique Heartland offers is business loans and lines of credit. If you want to expand your company or get through a dry patch, Heartland can fill nearly every monetary gap.

6. CardConnect

CardConnect works with startups to enterprise-level clients. Their payment processing solutions allow you to accept credit cards, debit cards and ACH payments. The system works online and at brick-and-mortar stores. Payments accepted via an online portal, mobile app or POS system.

CardConnect is adaptable, integrating with CRM and accounting tools seamlessly. Some of the security measures employed include tokenization and point-to-point encryption. Cybersecurity may be crucial in sensitive industries like medicine and finance. The system supports scheduling payments if you offer a monthly service or have recurring billing.

Key Features

If your payment processing system goes down, you can lose a lot of revenue from people who only have a card for payment. Getting linked back to your payment process is time-sensitive. CardConnect offers 24/7 customer support.

7. PayPal

A familiar name in the online world, PayPal offers payment processing, invoicing and POS solutions for small business owners. The company is known for its commerce solutions and can process credit card, debit card and ACH payments.

Pricing is straightforward without hidden fees. The fee can vary depending on transaction type, but it is between 2.99% plus a small per-transaction fee for credit cards. In-person payments are 2.29% plus 9 cents per transaction. Imagine you’re selling at a pop up event. You could take along a cell phone, laptop or tablet and log into your account via an internet connection to use a virtual terminal. You can also use the PayPal Here app and a card reader supplied by PayPal.

Key Features

PayPal is well-known among merchants and customers. Familiarity may make buyers more comfortable sharing information via a card reader or online.

Comparing the Top 7 Payment Processors

Each of the options made the list because they provide similar services. Deciding which is best for your company may seem impossible. A side-by-side comparison in a table may help clarify which works for your business model.

Now that you know what are the top payment processing platforms for small businesses, seek out the one offering the obscure features you most need. Most payment processing companies charge basic rates and have similar features. To determine which is best for you, think about how you collect payments daily.

If most of your sales are at craft fairs, you’ll need a provider offering an on-the-go POS integration. On the other hand, if you need a payment processing company for an online e-commerce store or brick-and-mortar location, mobile payments may not be as necessary. List the key elements you need and compare them with the top options.

The Right Processor for Your Business

When first opening your business, any of the options may work. However, as you grow and scale up, you’ll likely need additional options and better reporting for analysis. Create a checklist of your musts like same-day funding, global currency support and low transaction fees. Talk to the ones that match your needs and see if you can secure a free trial.

Once you try the software, you’ll be able to see how it works with systems you already have in place. As your business grows, you may find the initial provider no longer meets your needs, or you need to upgrade to another plan. Reanalyze your usage every quarter and determine if the payment processing company still works for you.

Devin Partida writes about investor technologies, big data and apps. She is also the Editor-in-Chief of ReHack.com.