Most businesses need to accept credit cards—a practice that can come with interchange costs, assessment fees, the processor’s markup, and hidden charges. In 2025, US businesses paid over $198 billion in card processing fees. But there are ways to minimize costs, such as switching providers, choosing an in-person system for some transactions, storing payment info for repeat customers, and remaining on top of dispute prevention.

Below, we’ll explain how to accept card payments affordably while still providing a dependable experience for customers who expect quick, secure checkouts. Here’s what you should know.

What’s in this article?

• What are the cheapest methods to accept credit card payments?
  
• How do payment gateways compare in terms of cost?
  
• What are hidden fees to watch for?
  
• What strategies can reduce processing costs?
  
• What is the trade-off between cost and quality in credit card processing?
  
• How Stripe Payments can help
  

What are the cheapest methods to accept credit card payments?

The cheapest ways to accept credit card payments are typically in-person transactions, which carry lower fees due to reduced fraud risk, or online payments through an all-in-one provider that bundles gateway, processing, and merchant account fees.

Different ways of accepting cards come with different price points. One business might deal only with web-based transactions, while another might do nearly all sales in person. Choosing the right method, or combination of methods, can save you money. While fees for card-not-present (CNP) transactions are typically higher due to the perceived risk, here are some options that tend to come with lower costs.

In-person transactions

In-person card transactions are often priced lower than online payments because there is a lower risk of fraud. If you’re running a brick-and-mortar shop, you can accept these payments with a card reader at your checkout counter. Payment can be completed by swiping or inserting the physical card or by tapping your card-connected device to make a contactless payment.

Online transactions through an all-in-one provider

Internet-based businesses usually need a payment gateway, a payment processor, and a merchant account. They pay a fee to each of these providers, either monthly or per transaction. All-in-one services combine those separate pieces so you pay one rate rather than multiple bills.

ACH or direct bank payments

Offering a bank transfer option (e.g., an e-check or ACH payment) typically costs less than card-based transactions. This can be a good option for large invoice payments, subscriptions, and any scenario that involves repeat customers who don’t mind the extra step of entering bank details.

How do payment gateways compare in terms of cost?

A gateway is a combination of software and infrastructure that transmits transaction details after someone hits “pay now” on a site or taps a card in a store. Some providers are all-in-one gateways that include everything for a single fee: the gateway, payment processing, and a merchant account. With other providers, you’ll use their gateway while keeping your merchant account separate. This can be a good option if you have an existing deal with a specific merchant services provider or you want extra control over the payment stack, but it can mean paying additional fees.

Payment gateways usually offer one of two billing setups: a flat rate (a consistent percentage plus a small flat fee) or an interchange-plus model (the actual interchange cost plus a markup). Flat rate is predictable, and it’s a good option if your average ticket size is fairly steady. Interchange plus can be cheaper for certain businesses, especially at higher volumes or if their cards run at lower-than-typical interchange categories. The best choice depends on which pricing model suits your daily flow of transactions.

Comparison of payment gateway billing models

The right solution depends on the specific needs of your business, but interchange plus is typically available to enterprise businesses and requires a negotiated arrangement with your payment provider.

What are hidden fees to watch for?

Here are some hidden fees to watch for when accepting credit card payments.

• Monthly minimum: Some processors require you to meet a minimum charge total each month. If you fall short, you pay the difference.

• Statement fee: Some providers bill you for generating statements. You can sometimes avoid this fee by going paperless, but check the contract.

• Early termination: Some providers charge an early termination fee if you decide to switch to a new provider before the contract term expires.

• Chargeback: Disputes happen when customers challenge a transaction. Even if you win the dispute, you might pay a fee.

• Batch: Some providers charge a small amount each time you finalize the day’s transactions.

• Account maintenance: Some providers charge a monthly account maintenance fee to cover administrative overhead.

What strategies can reduce processing costs?

Reducing the cost of accepting credit cards doesn’t necessarily mean changing providers. Sometimes, you can get to your goal by tightening procedures or exploring creative ways to handle payments. Here are some strategies to reduce processing costs.

Shop around for better rates

Payment providers want your business. Reaching out to compare rates can lead to lower markup fees if you’re doing consistent or high-volume transactions. If you’re in a flat-rate deal and your numbers have grown significantly since you first signed up, point it out to your processor and see if you can get a better rate.

Encourage in-person swipes when possible

In-person transactions generally cost less. If you run a hybrid store that sells online and in a physical space, consider ways to route local buyers to your in-store setup instead of steering them toward online checkouts. Even a pop-up or local kiosk can help reduce some of the more expensive card-not-present fees.

Use stored payment methods

For businesses with frequent repeat transactions, storing card details through a secure token system can reduce friction for returning customers, cut down on failed payment attempts, and possibly lower the risk profile. That can mean fewer penalties or declines that require manual fixes.

Stay current with security

Fraud can lead to lost revenue, plus dispute fees that pile up. Many providers have built-in tools to help flag suspicious charges. It’s a good idea to implement these settings, even if it feels like an extra step. If you’re slammed with too many disputes, your processor might raise your rates or push you into a higher-risk category.

Evaluate cross-border expenses

If you do business internationally, your provider could be adding a surcharge for each foreign card or currency conversion. Stripe, for instance, discloses extra cross-border or currency conversion fees. Confirm if these fees exist, and see if you can offset them by opening local entities or using a provider with more favorable international coverage.

Fight for lower chargebacks

Improving your checkout flows, ensuring your product descriptions are accurate, and providing responsive customer service can reduce your number of disputes. Each dispute, no matter the outcome, usually comes with a fee. Fewer disputes means fewer needless charges on your statement.

What is the trade-off between cost and quality in credit card processing?

A fraction of a percentage point can have a big impact on your monthly bill once you start reaching higher volumes. But the cheapest possible option isn’t always the smartest choice. Here’s what you might lose if you consider only the up-front cost of your card processing options.

Uptime and support

Think about how often you might need technical help from your processor. If something goes wrong and it takes a long time to get a response, that downtime could cost more than what you saved on transaction rates. Check reviews to understand how reliable the platform is.

Fraud protection

Cheap providers might skimp on built-in features that prevent fraudulent transactions. Dealing with disputes is stressful, and the associated fees can pile up. A few extra basis points on each transaction might be worth it if it reduces your fraud risk by a significant margin.

Added features

Some payment companies toss in subscription billing, analytics, invoice generation, or other extras. Even if those features each tack on a small add-on cost, they might replace separate software systems you’d otherwise pay for. This can save you money, or at least centralize the processes so you’re not juggling separate bills and log-ins.

Customer confidence

A stable, user-friendly checkout that includes recognizable payment methods can reduce cart abandonment. If your payment page looks unprofessional or clunky, you could lose business—and sometimes, losing that business does more damage than a small difference in processing fees.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.
  
• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
  
• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.