Picking a payment processor is really two decisions bundled together: which software takes the card, and which account the money lands in. Both matter, and both affect how fast you get paid and how much you keep. Compare processors by how your customers pay, how each pricing model works, and how payouts land in a business checking account like Novo. Payment processing is one part of our guide to the best software for small business.

What does payment processing software actually do?

Three things sit between a customer's card and your bank account, and they are commonly confused:

• Payment gateway: the software that captures the card details at checkout (online form, tap-to-pay, POS terminal). It encrypts the data and sends it to the processor.
• Payment processor: the company that routes the transaction through the card networks (Visa, Mastercard, Amex), pulls funds from the customer's issuing bank, and deposits them into your account.
• Merchant account: a holding account the processor uses to receive funds before paying them out to your business checking account. Most modern SMB tools (Stripe, Square, PayPal) bundle the merchant account inside the product, so you don't have to open one separately.

The flow, end to end: customer taps or types a card, the gateway captures it, the processor authorizes with the card network and issuing bank, funds land in the merchant account, and the payout hits your business bank account.

PCI DSS compliance, the security standard for handling card data, is largely handled by the processor when you use a hosted checkout or their SDK. You are still on the hook for the paperwork (an annual Self-Assessment Questionnaire), but you are not storing card numbers yourself.

Novo is a fintech offering banking solutions, not a payment processor. Novo holds the funds your processor deposits; it does not process card transactions.

How should you choose a processor based on your business model?

The right processor depends less on which one has the flashiest homepage and more on where and how your customers pay you.

Online-only sellers

If you sell through a website, a checkout page, or an API, look at Stripe, Shopify Payments, or PayPal. Stripe is a common default for developers and SaaS. Shopify Payments is built into Shopify stores and skips the third-party integration step. PayPal reduces checkout friction because millions of buyers already have accounts.

In-person retail

For a storefront, a salon, or a service counter, look at Square, Clover, or (for restaurants) Toast. These come with hardware: card readers, receipt printers, iPads, and software that ties into inventory and staff management. Square can be a simple starting point because its basic plan has no monthly fee and its card readers are widely available.

Mobile and trades

Plumbers, electricians, HVAC techs, contractors, and mobile service providers need to take a card at a job site or send an invoice from a truck. Square Reader, Stripe Terminal, and QuickBooks GoPayment all handle this. QuickBooks is the natural pick if you are already invoicing in QuickBooks; Square is the pick if you want the cheapest reader and no monthly fee.

Cash-heavy businesses

If more than a small share of your revenue is cash, you need a two-part setup: a card processor for the card sales and a bank that accepts cash deposits for the rest. Novo does not accept cash deposits, so cash-heavy merchants need a secondary deposit path. Common approaches are a local credit union for cash and Novo for everything else, or a cash-management service that converts deposits into ACH transfers.

B2B and high-ticket

If your average transaction is $500+ or you invoice other businesses, flat-rate card fees add up fast. Look at processors that offer ACH (bank transfer) at a flat few-dollar fee and interchange-plus pricing for cards. Helcim and Stax both fit this profile.

How do flat-rate, interchange-plus, and subscription pricing compare?

Every processor uses one of three pricing structures. Which one saves you money depends on your monthly volume, average ticket size, card mix, and whether transactions are keyed or swiped.

Flat-rate (Square, Stripe, PayPal)

You pay one predictable rate on every transaction. Flat-rate pricing (around 2.6%–2.9% plus a fixed per-transaction fee) is predictable but often costs more than interchange-plus once monthly volume grows. It is a common pick for businesses under roughly $10,000 in monthly card volume because the simplicity is often worth more than the small savings.

Interchange-plus (Helcim, Stax, Payment Depot)

You pay the actual card network's interchange cost (which varies by card type, from about 1.5% for a basic debit card up to about 2.5% for a premium rewards card) plus a small fixed markup, often 0.2–0.5% and a few cents. It is more transparent and often cheaper once you cross roughly $10,000/month in card volume, though the break-even point depends on card mix, average ticket, and keyed vs. swiped transactions.

Subscription / membership pricing (Stax)

A flat monthly fee (often $99–$199) in exchange for interchange-only card processing plus a small per-transaction fee. It generally only pencils out at high volume, roughly $20,000/month and up.

When flat-rate quietly costs more

As an illustrative example: a retailer doing $30,000/month at a 2.9% + $0.30 flat rate pays roughly $870 in percentage fees plus per-transaction cents. On interchange-plus at a 0.3% markup plus interchange, the same volume might cost $500–$600 depending on card mix. The gap tends to grow with volume.

What is the best payment processing software for small business?

The shortlist below covers established processors and newer payments companies small businesses may encounter. Each name links to its pricing page.

Here’s how the main processors compare (rates as of July 2026):

| Processor | Pricing model | Online rate | In-person rate | Monthly fee | | --- | --- | --- | --- | --- | | Stripe | Flat-rate | 2.9% + $0.30 | 2.7% + $0.05 | $0 | | Square | Flat-rate | 2.9% + $0.30 | 2.6% + $0.15 | $0 (paid tiers available) | | PayPal | Flat-rate | 3.49% + $0.49 | 2.29% + $0.09 | $0 | | Helcim | Interchange-plus | +0.50% + $0.25 | +0.40% + $0.08 | $0 | | Stax | Subscription | 0% markup + $0.15 | 0% markup + $0.08 | From $99 | | Clover | Reseller / quote | ~2.3–2.6% + $0.10 | Varies | $14.95–$84.95 software | | Finix | Full-stack (quote) | Contact sales | Contact sales | Contact sales |

Stripe: best for online businesses and developers

Stripe is a common choice for API-driven businesses, including SaaS companies, marketplaces, subscription products, and custom checkout flows.

It integrates directly with Novo, so payout records land in your Novo dashboard automatically.

Square: best for in-person retail and mixed online/offline

Square gives you a free reader, a POS app, and no monthly fee for the basic plan.

It also does online checkout, invoicing, and appointment booking. Integrates directly with Novo.

Shopify Payments: best for Shopify store owners

If your store runs on Shopify, using Shopify Payments (rather than a third-party processor on top of Shopify) removes the extra transaction fee Shopify charges non-Shopify-Payments users. Integrates directly with Novo for payout tracking.

PayPal / Braintree: best for marketplaces and quick checkout

PayPal can be a quick way to add a familiar checkout button for customers who already use PayPal. Braintree (PayPal's developer-focused product) supports marketplaces and split payouts.

Helcim: best for transparent interchange-plus pricing

Helcim publishes its markup and rebates volume discounts automatically. Reasonable pick for B2B and merchants above roughly $10k/month. See its Trustpilot page for current user reviews:

.

QuickBooks Payments: best for businesses already running QuickBooks

If your books live in QuickBooks Online, QuickBooks Payments turns any invoice into a "Pay Now" link and marks it paid automatically. QuickBooks Payments may cost more than some alternatives, but it can reduce manual invoice reconciliation if you already use QuickBooks Online.

Newer VC-backed processors worth knowing

• Finix: a full-stack payment processor small businesses can use directly. Finix has raised significant venture funding from Acrew Capital and others. Pricing is contact-sales.
• Rainforest: an embedded-payments (PayFac-as-a-service) provider backed by Matrix Partners, aimed at software companies that want to add payments to their product. Not for direct SMB use; relevant if your SaaS vendor uses it.
• Payabli: an AI-native embedded payments platform (pay-in and pay-out through one API) backed by Fika Ventures and QED Investors. Also embedded, so you will typically see it inside vertical SaaS tools rather than sign up directly.

How does your payment processor connect to your business bank account?

The processor is only half of the money flow. The other half is where the payout lands.

Payouts deposit directly into your business checking account on a 1–2 day cycle. Novo integrates directly with Stripe, Shopify, and Square so payouts and sales data flow into the Novo account automatically. Reconciliation is easier because individual transactions appear labeled with the customer, invoice, and fee, not just a lump-sum ACH deposit.

Novo charges no monthly fees and offers free incoming wires, meaning processor payouts arrive without account-side deductions. That matters because some traditional business accounts charge monthly maintenance fees or incoming wire fees. Confirm ACH and wire fees before choosing an account.

Tradeoff: Novo does not accept cash deposits, so cash-heavy merchants need a secondary deposit path.

What payment processing red flags should small businesses watch for?

Legacy merchant services and even some newer processors bury real costs in the fine print. Things to ask before signing:

• Long-term contracts and early termination fees. Common with legacy merchant services (traditional-bank merchant accounts and independent sales organizations). Modern processors like Stripe, Square, and Helcim are month-to-month.
• Fund holds and rolling reserves. New accounts, especially in higher-risk categories (travel, coaching, digital goods), sometimes have 10–30% of each transaction held for 90+ days. Ask about thresholds upfront.
• Hidden PCI compliance fees, statement fees, batch fees. Buried in interchange-plus quotes from older processors. A "2.5% + interchange" rate that also charges $30/month PCI, $10/month statement, and $0.25 per batch adds up.
• [Chargeback](/business-banking-security/chargebacks) fees of up to about $25 per dispute (typically $15–$25).

Ask how the processor handles evidence submission and whether it auto-refunds below a threshold.

User review ratings (Trustpilot)

Trustpilot scores as of July 2026 — click any tool for its current rating.

| Tool | TrustScore | Reviews | | --- | --- | --- | | Stripe | 1.7 | 17,296 | | Square | 3.9 | 7,377 | | PayPal | 1.3 | 39,856 | | Helcim | 4.1 | 1,055 | | Stax | 4.5 | 1,199 | | Clover | 2.1 | 2,156 |

Finix, Rainforest, and Payabli do not have Trustpilot profiles yet.

What questions do small businesses ask about payment processors?

What is the cheapest payment processor for a small business?

Under $10,000/month in card volume, flat-rate processors like Square and Stripe are often easy to model because they have no monthly fees and predictable transaction rates. Above $10,000/month, interchange-plus processors like Helcim often cost less because you pay closer to the actual card network cost plus a small markup.

How long does it take to get paid after a customer swipes a card?

Most SMB processors settle funds to a business bank account in 1–2 business days. Some processors offer instant payout options for an added fee if you need the money the same day.

Do I need a merchant account or is a processor enough?

For most small businesses, the processor is enough. Modern processors (Stripe, Square, PayPal) include a merchant account inside the product. You only need to open a separate merchant account if you are using a legacy processor or you are in a category with underwriting requirements.

Can I switch payment processors without disrupting my business?

Yes, and it is more common than owners expect. The steps are: sign up with the new processor, connect it to your website or POS, run both in parallel for a week, then turn off the old one. For recurring billing, ask the new processor about token migration and card account updater tools before switching.

Does Novo process payments directly?

No. Novo is a fintech offering banking solutions, not a payment processor. Novo holds the funds your processor deposits, but it does not process card transactions. You use Stripe, Square, Shopify Payments, PayPal, or another processor to accept cards, and Novo is where the payouts land.

How can you compare payment processors in a spreadsheet?

If you are evaluating two or three processors, drop your numbers into this template and paste it into an LLM to build a working spreadsheet:

``` Payment Processor Comparison — [Your Business Name]

Monthly card volume: $[amount] Average transaction size: $[amount] Mix: [_]% online / []% in-person / [_]% invoiced

For each processor, fill in:

• Processor name:
• Pricing model (flat-rate / interchange-plus / subscription):
• Card-present rate:
• Card-not-present (online) rate:
• ACH rate:
• Monthly fee:
• Chargeback fee:
• Payout speed (business days):
• PCI/statement/batch fees (yes/no + amount):
• Contract length or termination fee:
• Bank integration with Novo (yes/no):

Estimated monthly cost = (volume × applicable rate) + monthly fee + estimated chargeback cost ```

If you use an AI tool to build a spreadsheet from the template, remove customer names, account numbers, and any other sensitive business data before pasting it in. Then ask the tool to output a working sheet with formulas that calculate the estimated monthly cost for each processor and highlight the cheapest option.

Which payment processor should a small business choose?

Match the processor to how you actually take money. Stripe for online and developers. Square for in-person and mixed. Shopify Payments if you are on Shopify. Compare Helcim once your monthly card volume is high enough that interchange-plus pricing may offset any added complexity. QuickBooks Payments if your books already live there. Then send payouts to a business checking account with $0 monthly fees and processor integrations. Novo fits that setup, but cash-heavy businesses still need a separate cash deposit path.

Disclosures

Novo Platform Inc. ("Novo") is a fintech, not a bank. Banking services provided by Middlesex Federal Savings, F.A., Member FDIC. Eligibility subject to final Novo determination.

Novo Platform Inc. ("Novo") strives to provide accurate information but cannot guarantee that this content is correct, complete, or up-to-date. This page is for informational purposes only and is not financial or legal advice nor an endorsement of any third-party products or services. All products and services are presented without warranty. Novo Platform Inc. does not provide any financial or legal advice, and you should consult your own financial, legal, or tax advisors.