The Best Online Credit Card Processing Services of the Year 2020

Choosing the right credit card processing service is essential for all e-commerce businesses. However, with the mass availability of processing solutions, it can be difficult to pick the right option that proves to be the perfect match for your business.

What Is an Online Credit Card Processing Service?

While more and more consumers are using different and newer ways to pay for their goods and services

While more and more consumers are using different and newer ways to pay for their goods and services, especially through fast online mobile payments, even credit card payments are getting old. However, they still remain the most popular method for online transactions.

However, for business owners taking payments from customers involves their business to route the transactions via a credit card processing system, which is usually a series of channel established between a bank, payer, merchant, and a gateway.

Since competition in this field has increased, these services have become more intricate and complex, with more hidden charges. Most of the time, small business owners fall prey to such practices since they have lesser knowledge about the market. Experienced and predatory salespeople often take advantage of such circumstances and even make claims that are beyond the purview of legal considerations.

Whether your business functions physically, or has a digital presence, it needs the facility to process online payments for your everyday business transactions, Payment processing serves as a crucial tool for transactions between banks, business, card networks and the issuing user.

As an entrepreneur and business owner, it is doesn’t require you to know the depths of credit card processing to have a successful business. Only a handful of people outside of the world of finance and banking can understand the technical process of payment and transactions. However, it is essential to know the basic factors when comparing the advantages of credit card services available in the market.

Online credit card processing service is still complicated, despite the years of work that has been put into this field. Even many of the stakeholders are not fully aware of the intricacies involved in the process of online transactions. This is mainly due to the number of stakeholders embedded in the channel, and the ever-changing transaction rates accompanying the service providers. Since rates and contracts vary by customer, it’s difficult to make a direct comparison between these providers.

Fortunately for business owners, smart and convenient processors are emerging that offer you fair fees, excellent customer service and transparency. This is not only true for e-commerce business owners but also for physical stores.

How to Choose a Credit Card Processor?

To make it simple, there are two main options to pick an online credit card processing service

To make it simple, there are two main options to pick an online credit card processing service:

  • No holding of funds
  • Low transaction fees

The difference between the two is key to deciding which is the best option for you.

The general option indicates that the credit card processor is working effectively and acts as a seamless middleman between the user and the banks. They will take care for authorizations and transactions and transfer the money from your customer’s account to your business’s account.

This is an ideal option for start-ups and other relatively low volume sales businesses that need an affordable and reliable solution.

The merchant account option lets the credit card processor act as a middleman, by transferring the money directly from the customer’s bank account to yours, while still taking care of authorizations and transactions. This offers the following key benefits:

  • General processing
  • Merchant processing

The first is implemented because the processor doesn’t require authorization to fund itself, as it is already done by the bank you have your merchant account with. This means you will only have to pay for interchange fees, which is not more than thirty cents per transaction. This is cheaper than percentage-based fees for general payment processing solutions.

However, the big disadvantage of merchant accounts is the fact that some banks can be distrustful of new startups and small businesses as they regard them as a risky venture as compared to retail shopping and established banks. So, don’t be disappointed if you are asked to prove your business’s worth over a couple of years before they open this option for you.

Still, some merchant services providers will offer you both types of services, so you can start from the general processing platform, then eventually upgrade to a merchant account if required.

Following are the best online credit card processing services that have established a rapport in the payment processing industry in 2020

Best Online Credit Card Processing Services For 2020

Following are the best online credit card processing services that have established a rapport in the payment processing industry in 2020


WePay was launched in 2008, and was designed for money pooling initiatives and donation collection. It has a very manageable and user-friendly payment process for a wide range of businesses. It is available on mobile with a charge of 2.9% and 30 cents on all successful debit and credit card transactions. It is undoubtedly one of the most reliable online credit card payment processing services.


Empire Paytech

If you’re a new or a small business owner, then Empire Paytech is the most affordable and feasible option available. The transaction fees are one of the lowest and no charges are transacted for canceled transactions. The payment platform also has no hidden fees for fraud payment corrections. The business model is built solely to help small business owners by minimizing their costs for all the e-commerce payment processing solutions they have.


Plus, the super incredible team of customer support is available 24/7 to help you out with any queries.



An Iowa based company, Dwolla is a money transfer service company that established itself as a big competitor for PayPal right after its launch in 2010. Opening an account with Dwolla is free and users can use it to make substantial recurring payments other than transferring funds. It is available on android and IOS apps, making it a viable option for your business.



Stripe is considerably new and has managed to capture a huge market in a very small amount of time. Its success is credited to its affordable pricing model and flexible policies.

They charge 2.9% and 30 cents per all debit and credit card transactions. Plus, it has no monthly or an initial setup fee that you need to worry about. Stripe accepts payments in over 100 currencies and even processes ACH and bitcoin transactions for a five-dollar payment.

Recently, stripe also launched Stripe Atlas, which enabled business owners all over the world belonging to different industries to open a bank account in US with a US company. They can easily process payments, get legal guidance from Stripe’s partners and receive and pay tax. You can download stripe on the phone and use it on the web.



ZipBooks is free professional accounting software and an online credit card payment processing service that is extremely successful among midsize and small business owners and freelancers. It has a range of financial statement tools, cash flow statement management tools and invoicing features. It was initially built to help business owners when their cash flow ran low and the company could only afford to pay small fees for these services.

Plus, they offer traditional payment tools like debit/card processing and other financial integrations. They also transfer the money within the next day into a company’s bank account. ZipBook is an organized and a sophisticated tool that will increase the productivity through time tracking, bank account integration and recurring invoices, making it one of the best online credit card payment processing services.



Initially called Beanstream, Bambora was launched in 2000 and had since then made its way into being one of the most versatile omnichannel platforms that have a wide range of transactions, services such as mobile transactions, e-commerce, EMV, and other modes of payments. Bambora charges just 2.8% plus 30 cents for non-credit payments and only 2.9% plus 30 cents for completed transactions.


Braintree Payments 

Braintree payments was launched in 2007 but was later taken over by PayPal in late 2013. It lets merchant process payments by using Paypal, apply Pay, Bitcoin, Android Pay along with other kinds of debit and credit cards. It caters to a wide range of business audience including marketplace-based merchants, service-based businesses, online businesses, direct sales etc. The pricing meter is very transparent and starts at just 2.9% plus 30 cents per successful credit and debit card payments for digital cards and wallets.


Concluding Note

The payment processing market is evolving drastically with the growing demand for online businesses and cashless transactions. The above-listed payment processors are the safest options for small to medium sized enterprises, as they offer the best possible combination of functionality, operational wherewithal, and flexible pricing options.

Still not sure regarding the choice of your gateway? Let us handle this conundrum for you! Call our 24/7 representative now, and get a professional opinion on what payment mechanism can work best for you!

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