The cheapest way to accept credit cards depends on your business type, but generally involves mobile readers (Square, PayPal) for in-person sales (low upfront cost, flat fees) or all-in-one providers (Stripe, Square) for online (simple setup, ~2.9% + $0.30/transaction), while for higher volumes, Interchange-Plus pricing (Helcim, Payment Depot) offers lower wholesale rates with monthly fees. Also consider ACH/bank transfers, which are cheaper than cards, or using apps like ChargeStripe to turn a phone into a reader for just card fees.
In-person transactions
In-person card transactions are often priced lower than online payments because there's less fraud risk. If you're running a brick-and-mortar shop, you can accept these payments with a card reader at your checkout counter.
Bank transfers
Bank transfers are a great payment method for large and recurring transactions. This is because they offer low fees; the downside is that it takes a few days to process the payments.
Yes, charging a 3% credit card fee (surcharge) is generally legal in most U.S. states and follows card network rules (like Visa's 3% cap), but it depends heavily on your location and requires strict adherence to rules, such as not surcharging debit cards, capping it at your actual processing cost (not to exceed 3% for Visa/4% for Mastercard), and providing clear customer notification. Some states (like Connecticut, Massachusetts, Texas) may have their own bans or restrictions, so it's crucial to check your specific state laws.
Accepting contactless card payments helps you process transactions faster and keep queues short. Whether your customer pays with a contactless debit card, Chip and PIN, Apple Pay or Google Pay, the process only takes a few seconds.
Option 1: Use a card reader that pays out to a personal account. This is the easiest route for many new entrepreneurs. Card readers like SumUp Air or SumUp Solo let you accept contactless, chip & PIN, and mobile wallet payments. And they can pay out directly to a personal bank account if you're trading as a sole trader ...
No, you generally cannot use a credit card directly with Zelle because it's designed for direct bank-to-bank transfers using linked checking or savings accounts, not credit lines. While you can often use a linked debit card (Visa/Mastercard) if your bank doesn't offer Zelle directly, credit cards (including Amex) are typically ineligible for enrollment.
The most common fees for accepting credit card payments are transaction fees, which are usually a percentage of the payment plus a fixed amount per transaction. You can pass on credit card processing fees to clients by adding a small percentage or flat fee to the invoice to cover those costs.
Yes. U.S. merchants may assess a surcharge on credit card purchases that does not exceed the merchant discount rate for the applicable credit card surcharged*.
The "15/3 rule" for credit cards is a strategy to improve your credit score by making two payments during your monthly billing cycle: one about 15 days before the statement closing date and another three days before, aiming to lower your reported balance and credit utilization. While the specific 15-day/3-day timing isn't magical, making multiple payments to reduce your balance before the statement closes helps lower credit utilization, a key factor in credit scoring, though it doesn't increase the number of on-time payments reported.
PayKun is an Easy, Secure, and Trusted Online Payment Gateway in India. It has among the lowest per-transaction charge (TDR) of flat 1.75% in its standard plan.
The 2/3/4 rule is a guideline, primarily used by Bank of America, that limits how many new credit cards you can get: no more than 2 in 30 days, 3 in 12 months, and 4 in 24 months, helping to prevent over-application and manage hard inquiries on your credit report. While not universal, it's a useful benchmark for responsible card application, though other banks have different rules (like Chase's 5/24 rule).
Yes, you can use a credit card on Venmo to send money, but Venmo charges a 3% fee for credit card transactions, and your card issuer might also add a cash advance fee and higher interest, making it more expensive than using a debit card or bank account, Kiplinger. To add one, go to Settings > Payment Methods > Add bank or card in the app, then select 'Debit or credit card' and enter your details.
Taking card payments without a merchant account
If you don't have your own merchant account, you can still process card payments using a payment facilitator service (also known as an aggregated merchant account).
Nationwide, the surcharge rate for credit card transactions cannot exceed 4% of the total transaction (3% for Visa cards). Businesses must inform customers about the surcharge both online and in-store before payment. The surcharge must only cover processing costs and cannot be a profit-making tool.
The easiest way to avoid card surcharges is to pay by cash. While businesses can charge a surcharge for paying by debit or credit cards, they can't charge a surcharge for paying by cash.
A good credit card APR is generally below the national average (around 20-24%), with rates under 18% considered excellent, especially for those with good credit, while single-digit APRs are fantastic but rare, often found at credit unions, and 0% introductory APRs are great for financing large purchases. What's "good" depends heavily on your credit score, card type (rewards often have higher rates), and whether you pay in full monthly.
As of April 1, 2025, Zelle has officially shut down its standalone app. This decision was driven by the fact that most users already accessed Zelle through their bank or credit union's mobile app.
Sending money with a credit card can be convenient, but it typically comes with fees and higher-than-usual interest rates that can add up for big transactions. Apps like Cash App, PayPal and Venmo allow you to send money through their platforms with a credit card, while Apple Cash, Google Pay and Zelle don't.
Zelle® does not report transactions made on the Zelle Network® to the IRS, including payments made for the sale of goods and services. The law requiring certain payment networks to provide forms 1099K for information reporting on the sale of goods and services does not apply to the Zelle Network®.