The short answer
No single processor is cheapest for everyone. Flat-rate plans such as Square at 2.6% + 15¢ in person are usually cheapest for small, low-volume sellers. Interchange-plus pricing, such as Helcim from interchange + 0.40% + 8¢, tends to win as volume grows, and subscription models like Stax from $99 a month pay off at higher volume.
What Do the Big Processors Charge?
Published rates from each company's own pricing page, as of October 2026:
| Processor | In person | Online or invoice | Keyed in |
|---|---|---|---|
| Square (Free plan) | 2.6% + 15¢ | 3.3% + 30¢ | 3.5% + 15¢ |
| Square (Plus / Premium) | 2.5% / 2.4% + 15¢ | Lower on paid plans | 3.5% + 15¢ |
| Stripe | 2.7% + 5¢ | 2.9% + 30¢ | 2.9% + 30¢, plus 0.5% |
| PayPal (Point of Sale) | 2.29% + 9¢ | Varies by product | 3.49% + 9¢ |
| Shopify Payments (Basic) | 2.6% + 10¢ | 2.9% + 30¢ | Not covered here |
Is Interchange-Plus Cheaper Than Flat Rate?
Often, once volume is steady. Interchange-plus passes through the card network's actual cost and adds a fixed margin. Helcim, for example, lists interchange + 0.40% + 8¢ in person and interchange + 0.50% + 25¢ keyed or online at its lowest tier, with "built-in volume discounts" and no monthly account fee.
The wholesale cost underneath varies a lot by card. Visa's own table, effective April 18, 2026, lists a regulated debit card at retail at 0.05% + $0.21. A flat rate charges the same 2.6% on that debit card as on a premium rewards card. The full comparison is in interchange-plus vs flat rate.
When Does a Monthly Subscription Become Cheapest?
At higher volume. Stax prices by annual processing: $99 a month up to $150,000 a year, $139 from $150,000 to $250,000, and from $199 above that. It says the subscription does "not include cents per transaction," so each sale still carries a per-transaction fee. A flat fee spread over large volume can beat any percentage markup, and lose badly at low volume.
Why Does Your Average Sale Change the Answer?
Because of the fixed fee. On Square's 2.6% + 15¢, a $5 coffee costs 28¢ to process, an effective 5.6%. A $500 sale costs $13.15, or 2.63%. Stripe's in-person 2.7% + 5¢ is cheaper than Square on that $5 coffee and more expensive on the $500 sale. A coffee shop and a furniture store can reach opposite answers on the same two price lists.
How to work out your own effective rate is in average credit card processing fees.
Why Do Online and Keyed Payments Cost More?
Every published price list charges more when the card is not in the room. Square charges 3.5% + 15¢ for a manually entered card or card on file, and Stripe adds 0.5% for manually entered cards and 1.5% for international cards. A business that takes most payments by phone should price on its keyed rate, not the headline tap rate.
How Do You Find the Cheapest Option for Your Business?
BatchOut runs that comparison across flat-rate, interchange-plus and cash discount pricing, matched to how you take cards. To cut the bill you already have, see how to lower credit card processing fees.
- Pull three months of statements and note total card sales, number of sales, and the split between in person, online and keyed.
- Work out your current effective rate: total fees divided by total sales.
- Price the same months on each quote, using your real average ticket.
- Ask about volume pricing: Square says it can create custom pricing for some businesses processing $250K or more in card sales.
Commonly Asked Questions
Which credit card processor has the lowest fees?
It depends on volume and average sale. Flat-rate plans like Square's 2.6% + 15¢ in person suit small sellers; interchange-plus pricing such as Helcim's interchange + 0.40% + 8¢ usually costs less as volume grows.
Is PayPal cheaper than Square for in-person payments?
On published rates, PayPal Point of Sale lists 2.29% + 9¢ for card-present transactions, compared with Square's 2.6% + 15¢ on its free plan.
Are subscription processors cheaper?
At higher volume they can be. Stax charges from $99 a month by annual processing volume, plus a per-transaction fee, so it pays off only when volume spreads the monthly cost thin.
Why is my effective processing rate higher than the advertised rate?
Because of the fixed per-sale fee. On 2.6% + 15¢, a $5 sale costs 28¢, an effective 5.6%.
Sources
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