In the market for a new credit card payment processor? The devil is in the details — specifically the fees.
Hidden fees are some of the biggest concerns for small business owners, and credit card processing is one of the biggest offenders. If you’re considering signing up for a new payment processor or making the switch from your current one, you’re probably curious about whether you’ve found the best deal.
That’s why we’re breaking down some of the most common payment processors along with some of the lesser-known options (many of which offer as good or even better rates — like our own payment processor Schedulicity Pay!), so you can make the decision with a clear head and conscience.
How This Comparison Chart Works
(Or just skip straight to the chart)
The Payment Processors We Looked At
- Schedulicity Pay
- Quickbooks Payment Processing
How We Organized
For the sake of your sanity, we’ve summarized the payment processors with the best and worst option(s) at the start of each section, then broken down the details in a chart below. Beyond standard processing fees, we’ve also compared:
- Whether processing equipment is complimentary
- Contract requirements
- Hidden fees / costs
- Easy access to customer support
- Next-day funding
Acknowledgment of Bias
This article was written by the team at Schedulicity, which owns Schedulicity Pay. We are absolutely biased towards our own payment processor because we’re so dang proud of it. That said, we love and respect small business owners, so we believe in honest reporting, transparency, and helping you make the right decision for you by giving you all the facts. This payment processor comparison chart is meant to do just that.
One Final Caveat
We updated these comparisons in mid-December 2020 and check and revise them every few months. That said, some data may become outdated between revisions (we’re only human!).
For the most accurate details, check the pricing pages of each payment processor. You can find links to all of the pricing and fees pages for each of the payment processors (i.e. the sources of the data we’ve shared here) at the end of this article.
Credit Card Payment Processors: Comparison Chart
1. Processing Fees
The cost for credit card transactions (i.e. “swipe, dip, tap”). Note that some processors have separate fees for in-person transactions. We’ve included those details in our full table breakdown.
Lowest: Schedulicity. $1.99% + $0.10 for credit card dips, swipes, or taps.
Highest: Shopify, Stripe, and PayPal. Too close to call. 2.9% + $29 a month for Shopify (lower rates if you pay a higher monthly premium), 2.9% + $0.30 for Stripe or 2.9% + a fixed fee for PayPal.
|Stripe||2.9% + $0.30 (additional fees / rates apply for other processing, including terminal and recurring billing)|
|PayPal||Online transactions: 2.9%, plus a fixed fee based on currency (for the U.S., it’s + $0.30). In-store transactions: 2.7%.|
|Shopify||Tiers: 2.4% + 30¢ + $299 per month, 2.6% + 30¢ + $79 per month, 2.9% + 30¢ + $29 per month.|
|Mindbody||2.75% (qualified), 3.5% + $0.15 (non-qualified) and a $15 monthly minimum fee applies if you process less than $550/month.|
|Vagaro||2.75% for “small businesses”, i.e. any business processing less than $4,000 per month.|
|Square||Flat rate of 2.75% to 2.6% + $0.10|
|QuickBooks||2.4% swiped, 2.9% invoiced, 3.4% keyed-in + 25¢ per transaction.|
|Schedulicity Pay||$1.99% + $0.10 for credit card dips, swipes, or taps.|
2. Additional Costs for Card Readers
Some companies either sell businesses their card readers or POS systems or charge a rental fee.
Lowest: Schedulicity and Vagaro. We send you a free card reader — recently improved for 2021. Vagaro also offers free card readers.
Highest: Paypal and Stripe. PayPal’s reader will set you back almost $100. Stripe offers a more affordable $49 option but some of its highest-priced reader costs $299.
|Stripe||$59-$299 for readers (to use them you’ll pay the increased terminal rate of 2.7 + $0.15).|
|PayPal||$99.99 for the PayPal payment chip reader.|
|Shopify||Buy a “retail kit” for $280 or a tap and dip card reader for $49.|
|Mindbody||$40-$119 for card readers.|
|Vagaro||Free card reader provided, POS systems starting at $74.|
|Square||Free magstripe reader, $49 for a contactless & chip reader.|
|QuickBooks||$19-49 for card readers.|
|Schedulicity Pay||No, we send them to you free!|
3. Hidden Fees / Costs
Some credit card processors add fees behind the scenes, which you don’t always catch unless you read the small (small!) print. While this isn’t as quantitative as other details, we’ve broken down some possible pricing gray zones below.
Transparent fees: Schedulicity Pay, Quickbooks, Square, Vagaro, Mindbody.
Harder to figure out: Shopify, PayPal, Stripe.
|Stripe||Additional fees for international cards.|
|PayPal||Additional fees for international cards.|
|Shopify||You’ll need to do some careful calculations to determine which plan is the most cost-effective for you.|
4. Contract / Subscription Requirements
Are you require to commit to a set period of time using this payment processor? What happens if you decide to leave before that period is over? Breaking a contract, or getting stuck paying higher rates than you’d like for longer than you expect, can affect your bottom line.
No contract: As of December 2020, every platform but Mindbody allows businesses to cancel at their convenience.
Contract required: Mindbody has “subscription terms”. While it’s unclear from Mindbody’s site how long these subscriptions last, in its terms and conditions, Mindbody includes the following: YOU ARE RESPONSIBLE FOR ALL SUBSCRIPTION FEES FOR THE ENTIRE SUBSCRIPTION TERM.
5. Live Customer Support
Let’s face it: Whether it’s faulty WiFi or human error, lots can go wrong with payment processing. That’s why it’s essential that there’s a great Support team behind your credit card payment processor.
Best customer support: Schedulicity Pay. Not only are we known for our fantastic human support (read the reviews here), our dedicated Schedulicity Pay will work with you any time you receive a chargeback notification — hugely important when you’re a small business. Here are some additional notes about the little-known perks of Schedulicity Pay.
Worst customer support: Subjective. That said, Stripe charges $1,800 per month for “Premium Support” while Shopify limits live support to only its higher tier monthly plans. Other platforms make it difficult to reach a person, pushing you to their documentation and support articles first.
|Stripe||24/7 phone, chat, and email support.|
|PayPal||Phone support available.|
|Shopify||Only for the higher tier monthly plans.|
|QuickBooks||Some phone support.|
|Schedulicity Pay||Yes, our full-time customer support team is available to you via phone and email.|
6. Next-Day Funding
You want your payment F-A-S-T. Here’s how various credit card payment processors stack up.
|Stripe||Offers an “instant payout” option for an additional fee.|
|PayPal||Offers an instant transfer option for an additional fee.|
|Vagaro||No, but Vagaro promises payments within 24-48 hours.|
|Schedulicity Pay||Yep! We offer a next-day payment option.|
7. Independent Payment Processor?
Is this payment processor a separate account you can sync with other business platforms, or are you required to sign up for an account with, say, an online scheduler? (Note: This is how we do it at Schedulicity.) Both of these approaches have their pros and cons, but it’s good to know before you pick.
Just a payment processor: Stripe, PayPal, Shopify, Square, Quickbooks.
Connected to another platform (such as online scheduling): Mindbody, Schedulicity, Vagaro.
|Mindbody||No, you’ll need a Mindbody account.|
|Vagaro||No, you’ll sign up for a Vagaro account, which includes appointment booking.|
|Schedulicity Pay||You’ll need a Schedulicity business account, which also gives you access to appointment and class booking!|
Best-of-All-Worlds Option: Us (Schedulicity Pay!)
If you’re a service-based business and interested in seamless payment processing, Schedulicity Pay really is the most affordable in your industry.
We did this intentionally because we know how quickly fees can affect a small business’ budget. As a Schedulicity user, you’ll have instant access to all our booking and marketing tools. Adding Schedulicity Pay is the cherry on top — it means that you can run the entire process from a new client first booking to checkout (including selling products) from one account.
Curious to learn more? Here’s an article breaking down why we’re the cheapest credit card payment processor in the biz, plus additional details about Schedulicity Pay features.