Credit Card Processing for Small Business: Accept Every Payment and Keep More of Your Sales
Through our credit card processing partners you can get a free point-of-sale terminal and processing built around your business. Send us your current statement and we will compare the costs for you.
WRITTEN AND REVIEWED BY Anthony Collin, CEO, Smart Business Funding. $500M+ funded since 2014. Published February 26, 2021. Updated October 2026. See all options on business financing.
Free point-of-sale terminal through our partners
What is credit card processing?
Credit card processing is the service that lets a business accept card payments and receive the money in its bank account. A processor handles each transaction, and the business pays processing fees. Through our partners, qualifying businesses can receive a free point of sale terminal, with pricing aimed to be competitive with, or better than, what you pay today. Savings vary by business.
Credit card processing made simple
What business owners ask about first when they look at a new processor.
Credit card processing for every kind of business
Whether customers pay at a counter, a table, a stall or a checkout page, our partners have a way to take the payment.
Retail Point-of-Sale Systems
Countertop and tablet POS systems with a card reader, receipt printer and cash drawer. Manage sales, inventory and receipts in one place.
Retail funding
Restaurant and Tableside Payments
Wireless terminals let guests pay at the table, which speeds up turns and makes tipping simple.
Restaurant funding
Online and E-Commerce Checkout
Secure online checkout, payment links and invoices, so you can sell wherever your customers are.
Online retail funding
Mobile and On-the-Go Payments
Pocket-size card readers for food trucks, markets, pop-ups and mobile services.
Browse industries
Salon, Spa and Service Businesses
Take deposits, tips and card-on-file payments at the front desk, with terminals that fit a polished space.
Salon and spa fundingCafes and Quick-Service Counters
Fast tap, chip and mobile wallet payments that keep the line moving at the counter.
Restaurant fundingTap, chip, swipe and mobile wallets such as Apple Pay and Google Pay are typically supported. Ask your funding specialist what fits your business.
Find your effective processing rate
Your effective rate is one of the clearest ways to compare processors. Enter two numbers from your latest statement and see what you really pay.
- Add up every fee on the statement, not just the headline rate
- Divide by your total card sales for the month
- Send us the statement and we will compare it
Effective rate calculator
Use the totals from one monthly statement.
Example values shown. Enter your own numbers. This is an estimate for comparison only.
How credit card processing works
Every card payment follows the same path in a matter of seconds.
The customer pays
The customer taps, dips, swipes or enters their card at your terminal or online checkout. The details are encrypted and sent to your processor.
The payment is authorized
Your processor checks with the card network and the customer's bank. If the funds and card are good, the sale is approved in seconds.
You get paid
Approved sales are batched and settled to your business bank account, minus processing fees. Many businesses see deposits within one to two business days.
Understanding credit card processing fees
Every processing statement is built from the same three pieces.
Interchange
Paid to the bank that issued your customer's card. It varies by card type, such as debit, rewards or corporate, and by how the card is accepted.
Card network assessments
Small fees charged by the card networks. They are generally the same no matter which processor you choose.
Processor markup
What your processor adds on top, plus monthly, PCI and other fees. This is the part you can negotiate and compare.
Interchange-plus vs. flat-rate vs. tiered pricing
How a processor charges matters as much as the headline number.
| Interchange-plus | Flat-rate | Tiered | |
|---|---|---|---|
| How it works | Interchange and assessments passed through, plus a clear markup | One percentage for most transactions | Transactions grouped into qualified, mid-qualified and non-qualified buckets |
| Strength | Transparent, and often better for established volume | Simple to understand | Looks simple on the surface |
| Watch for | Extra monthly and PCI fees | Can cost more as volume grows | Buckets can hide higher costs |
Send us a statement and we will show you which model you are on today and how our partners compare.
Questions to ask any credit card processor
Use this list with us or with anyone else you are considering.
Processing from partners, with a team that knows small business
Free point-of-sale terminal
Our processing partners offer a free terminal, with the equipment depending on the partner and your business.
Free statement review
We review your current statement, find your effective rate and compare it with what our partners can offer.
Pricing that competes
Our goal is pricing that is competitive with, or better than, what you pay today. Savings depend on your volume and contract.
Partner network
We work with processing partners so we can match you with the right fit instead of one size for all.
One team
The same team can also help with merchant cash advances, lines of credit and equipment financing.
Work with us directly
Reach out and you work with us, with a funding specialist to guide you.
Credit card processing questions, answered
Does Smart Business Funding offer credit card processing?
Yes, through our credit card processing partners. We do not process cards in house. You work with us, and we connect you with a partner that fits your business.
Is the point-of-sale terminal really free?
Our processing partners offer a free point-of-sale terminal. Availability and the exact equipment depend on the partner and your business, and your funding specialist will confirm the details before you sign anything.
How do you compare costs with my current processor?
Send us a recent processing statement. We will review your fees, work out your effective rate, and compare it with what our partners can offer. Our goal is pricing that is competitive with, or better than, what you pay today. Savings depend on your volume, card mix and current contract, and we cannot guarantee them.
What is an effective rate?
Your effective rate is your total monthly processing fees divided by your total monthly card sales. It is the clearest way to compare processors, because it includes every fee on the statement. Use the calculator on this page to find yours.
What are interchange, assessments and markup?
Interchange is the fee paid to the bank that issued your customer's card. Assessments are fees charged by the card networks. Markup is what your processor adds on top. Interchange and assessments are largely the same for every processor, so the markup and the extra fees are where you can compare.
What types of pricing models do processors use?
The most common are interchange-plus, flat-rate and tiered pricing. Interchange-plus shows the underlying cost and a clear markup. Flat-rate is simple but can cost more at higher volumes. Tiered pricing groups transactions into buckets that can be hard to follow.
Can I accept cards in store, online and on the go?
Yes. Processing options typically include countertop and tablet point-of-sale systems, wireless terminals for table service, mobile card readers, online checkout and payment links. Ask your funding specialist what is available for your business.
How fast will I receive my money after a sale?
Deposit timing depends on the processor, your bank and your account. Many businesses see deposits in one to two business days. Ask for the exact settlement schedule in writing.
Does processing help me qualify for funding?
Processing history can be a helpful view of your sales. We can also help with business funding, including merchant cash advances, when you need working capital. Learn more about funding on our How It Works page.
More from Smart Business Funding
Ready to see what you could save?
Send your current statement for a free review, and ask about a free point-of-sale terminal through our partners.
Credit card processing is provided through Smart Business Funding's processing partners. Pricing, terminal availability and terms depend on the partner and your business. Savings are not guaranteed. Images and the calculator are illustrative.
