Processor Selection
- Under $50K/month online: Stripe or Braintree, both month-to-month, no negotiation needed. They're the same price, so choose on features.
- Under $50K/month in person: Square if you need the POS, Helcim for the lowest published cost above about a $19.53 ticket. Below that, PayPal Zettle's 9-cent fixed fee wins. It keeps winning up to $500,000 a month at a $15 ticket. Helcim is $0/month with no contract, so the old advice to stay on flat rate until you hit some volume doesn't hold. Ticket size and card mix decide this, not volume (the assumptions behind those figures).
- $50K-$500K/month: get three bids off the same transaction data set. Effective rate comparison only works when everyone quotes on identical volume and mix.
- Over $500K/month: negotiate interchange-plus pricing, dedicated account management, and custom reserve terms. Flat-rate at this volume costs thousands a month extra.
- You can start that conversation much earlier than people say. Square's own page invites custom pricing talks above $250,000 a year, or about $21K/month.
- PayFac (Stripe, Square) versus a direct merchant account is the key decision. PayFac is faster to start and easier to use. A direct account is cheaper at scale and gives you more control.
Choosing a processor isn't about the lowest rate. It's about fit: your volume, your risk profile, and where you're heading.
All rates verified against each vendor's own pricing page on 2026-08-02, with Stripe's US figures read from a US connection on 2026-08-04.
If you're selling online/e-commerce → Stripe or Braintree
- Braintree publishes 2.89% + $0.29. Stripe publishes 2.9% + 30c. Both in USD, both confirmed.
- That's 1.25 cents apart on a $25 order and 1.5 cents on a $50 one, with no crossover in either direction. Domestically there's no cost argument between them. Pick Braintree for native PayPal and Venmo, Stripe for the broader product surface and docs.
- Selling internationally changes it. Braintree adds +1% on cards issued outside the US; Stripe adds +1.5%. That half-point dwarfs the domestic gap and is the only real cost difference between the two.
If you're card-present retail/restaurant → Square, Helcim or PayPal Zettle
- Square: 2.6% + 15c on the Free plan, $0/month, the strongest POS here, 15-minute setup.
- Helcim: interchange + 0.40% + 8c in the entry band, also $0/month, no setup fee, no PCI fee, no cancellation fee, and $0 on chargebacks you win.
- PayPal Zettle: 2.29% + 9c. That's the lowest published fixed fee among the US flat rates this site could verify, and it's exactly why Zettle wins on small tickets.
- Helcim beats Square above a $9.23 ticket on this site's blended card mix. The real crossover runs $7.94 to $12.20, depending on which card the customer hands you: $8.46 on regulated debit, $7.94 on exempt debit, $9.09 on no-rewards credit, $12.20 on standard rewards credit. On premium rewards and commercial cards there's no crossover at all, and Square is cheaper at every ticket.
- Helcim beats Zettle above a $19.53 ticket in the entry band. That drops to $15.64 and $13.96 as Helcim's volume bands step down. So below about $19.53, Zettle is the cheapest of the three.
- None of the three charges a monthly fee, so volume isn't the deciding variable here. Ticket size and card mix are. Work it out on your own mix with the card-mix test and the interchange assumption these crossovers rest on.
If you don't know your model yet → Stripe
- More flexible while you figure things out.
- Anything is fine under $100K/month. Don't overthink this.
If you're on Shopify → Use Shopify Payments
- The reason is the third-party gateway fee, not the card rate. 2% on Basic, 1% on Grow, 0.6% on Advanced, 0.2% on Plus, charged on every order if you process elsewhere.
- Shopify's US card rates are confirmed: online 2.9% / 2.7% / 2.5% + 30c, in person 2.6% / 2.5% / 2.4% + 10c by plan. There's no shopify.com/us/pricing path, because Shopify resolves country by connection rather than by URL. The widely repeated "no per-transaction cent charge in person" claim is Canada only. The US charges 10 cents.
See full Processor Profiles for detailed comparisons.
The 3-Bid Method
Get three bids. Not one. Not two. Three.
Why this works:
- Processors assume you're not shopping.
- Rates are negotiable, especially above $50k/mo.
- You learn what's standard and what's padding.
How to run it:
- Request pricing from your top 3 candidates.
- Get everything in writing. Verbal quotes mean nothing.
- Compare all-in cost, not the interchange-plus rate.
- Use the lowest bid to negotiate with your preferred choice.
Don't spend more than a week on this. Paralysis costs more than a few basis points.
What to Include in Your Request
When requesting quotes, provide:
- Monthly volume and transaction count
- Average transaction size
- Card-present vs card-not-present split
- Chargeback ratio (if you have processing history)
- Current processor and rates (optional, but helps)
The more context you give, the more accurate the quote.
What to Demand Back
Get all five in writing. A percentage on its own tells you almost nothing.
- Effective rate on your actual mix, not a headline rate.
- Per-transaction fixed fee. On a $20 ticket, 30c is 1.5% on its own.
- Monthly, minimum and PCI fees. Helcim publishes $0 for all three, so you have a benchmark.
- Chargeback fee, and whether it comes back when you win. The published US range is $0 to $30. Square charges $0 outright. Helcim charges $0 on a win. Most charge $15. PayPal's high-volume tier at $30 is the worst published figure. Stripe charges $15 to receive and $15 to counter, and returns neither on a partial win.
- Contract term and the early termination fee.
"Is hardware leased or purchased, and what happens to it if I leave?" Then: "if I switch processors, does anything in your contract stop me?" Clover's leases and Toast's payments lock-in are where these deals get costly. Neither one shows up in a rate quote.
SMB Stack Recommendations by Volume
Under $100k/mo
Use an aggregator. Stripe, Square, Braintree, PayPal. Don't overthink it.
- Instant approval, no underwriting friction.
- All-in pricing, published and easy to compare: Braintree 2.89% + $0.29 online, Square 2.6% + 15c in person and 3.3% + 30c online on the Free plan, PayPal Checkout 3.49% + $0.49.
- You're paying for simplicity, and that's fine.
- Focus on running your business, not optimizing payments.
One caveat at this size. PayPal Checkout is the most expensive published option here, by a wide margin. On a $20 order it's 5.94% against Braintree's 4.34%. If PayPal is a button next to your card form, that's fine. If it's your only processor, price the alternative.
What to watch:
- Reserve holds if you're in a risky-looking category.
- Account stability at scale, the "PayPal freeze" problem.
Under $100k/mo: don't spend time optimizing payments. The savings aren't worth the effort. Use an aggregator and grow revenue instead.
$100k-$1M/mo
Time to shop. You have negotiating power.
- Interchange-plus pricing starts making sense.
- A dedicated merchant account may beat aggregator pricing.
- Account manager access starts to matter.
- You can negotiate reserves and terms.
What to ask:
- "What's my all-in effective rate including assessments?"
- "What triggers a reserve on my account?"
- "What's the early termination fee?"
$100k-$1M/mo: shop for rates, negotiate reserves, and consider a direct merchant account.
What "good" looks like at this size, from published rates. Flat rate at 2.89% + $0.29 on a $75 ticket is an effective 3.28%. Any target under 2.5% all-in means moving to interchange-plus. Helcim publishes interchange + 0.35% + 20c online for the $100K-$500K band, and interchange + 0.25% + 7c in person, with no monthly fee (source, verified 2026-08-02). On this site's blended online pass-through of 1.50% + $0.172, that band is 1.85% + 37.2c all-in. On the same $75 ticket, that's 2.35% (assumptions). Use it as your benchmark. If a bid can't beat a published, no-contract, no-monthly-fee rate, it isn't a good bid.
Over $1M/mo
You're enterprise now. Different game.
- Custom pricing is standard.
- Multiple processor redundancy gets smart.
- Direct Visa and Mastercard relationships are possible for the largest.
- Dedicated support and SLAs.
What changes:
- Processor negotiation and redundancy planning become real work.
- Token portability is non-negotiable.
- A payments consultant may earn their fee on the contract alone.
Over $1M/mo: custom pricing, processor redundancy, and token portability are non-negotiable. A payments consultant may pay for themselves in savings.
PayFac vs. Direct Merchant Account
When Aggregators Work (PayFac Model)
- Under $50k/mo volume.
- Simple business model, retail or basic e-commerce.
- You need to accept payments today.
- Low tolerance for paperwork.
Examples: Stripe, Square, PayPal for most uses.
Tradeoff: higher rates, instant setup, minimal underwriting.
When to Graduate to Direct
- Volume above $50k/mo, where negotiating power starts.
- High-risk MCC: adult, CBD, travel, nutraceuticals.
- International volume that needs local acquiring.
- Chargeback ratio concerns. Aggregators have lower tolerance.
- You need processor redundancy.
Migration friction:
- Expect 2-4 weeks for underwriting.
- Documentation: bank statements, processing history.
- Token migration if you have stored cards (see Integration & Exit).
PayFac vs Direct Comparison
| Factor | PayFac/Aggregator | Direct Merchant Account |
|---|---|---|
| Setup time | Minutes to hours | 2-4 weeks |
| Underwriting | Minimal | Full review |
| Pricing | Fixed and published (Braintree 2.89% + $0.29; Square 2.6% + 15c in person) | Interchange-plus, negotiable. Helcim publishes its schedule; most others quote |
| Account stability | Lower tolerance for risk | More flexibility |
| Support | Self-service / email | Dedicated account manager |
| Token portability | Usually supported | Varies by processor |
| Best for | Under $50k/mo | Over $50k/mo |
Processor Comparison Factors
Weight these by what your business actually needs:
| Factor | Under $100k/mo | $100k-$1M/mo | Over $1M/mo |
|---|---|---|---|
| All-in rate | Less important | Important | Critical |
| Setup speed | Critical | Moderate | Less important |
| Underwriting friction | Critical | Moderate | Expected |
| Token portability | Nice to have | Important | Critical |
| Redundancy support | Not needed | Nice to have | Critical |
| International | Rarely needed | Sometimes | Often critical |
| Support quality | Email is fine | Important | Critical |
When to Hire Help
When a Payments Consultant Is Worth It
- Negotiating enterprise-level contracts ($1M+/mo). The savings justify the fee.
- Migrating off a legacy processor with complex integrations. You're buying project management.
- High-risk MCC needing a specialist broker. They know who will approve you.
What to Ask Before Hiring
- "What's your fee structure?" Avoid percentage-of-savings for simple work.
- "Can you show me comparable deals you've negotiated?"
- "What happens if we don't save money?" No-results-no-fee is a good sign.
Caution
Avoid retainers with no measurable outcome. Somebody wants $5k/mo to "manage your payments"? Ask what they'll do, and how you'll measure it.
Test to Run
2-week exercise:
- Pull your last 3 months of statements.
- Calculate your true all-in rate: total fees divided by total volume.
- Get one competitive bid.
- Compare.
Success criteria: you either confirm you're well-priced, or you find savings worth chasing.
Next Steps
- Know your volume tier → Match your approach to your scale
- Use the 3-bid method → Get competitive quotes in writing
- Review contracts and underwriting → Understand what you're signing
- Consider integration requirements → Plan your technical approach
See Also
- Contracts & Underwriting - What to negotiate beyond rates
- Integration & Exit - Technical and exit considerations
- Payment Provider Types - Gateway vs processor vs ISO vs PayFac
- Cost Model Assumptions - The interchange blend every crossover on this page is computed from
- Processor Management - Ongoing relationship management
- Reading Statements - Understanding your current costs