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Online credit card processing for small business

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Online credit card processing for small business is how an e-commerce store accepts card payments at checkout and gets paid, and Avendo lowers its cost by routing each online payment to the best available rate.

What is the best online credit card processing for small business?

The best online credit card processing for small business pays the lowest available rate on each sale, keeps the checkout you already have and gives you reports you can read. Avendo does all three: it routes 100% of online transactions to the lowest available processor rate in real time, works with existing checkout pages and does not bill merchants directly.

What is online credit card processing?

Online credit card processing is the chain of services that takes a card number entered on a website, asks the card network and issuing bank to approve it, and later settles the money into the merchant's account. A payment gateway carries the card data securely and a processor moves the transaction and settles it.

Avendo sits between an online checkout and multiple processors, choosing the processor with the best available rate for each transaction.

How does online credit card processing work?

  1. Checkout

    The customer enters card details on your store checkout page.

  2. Gateway

    A PCI DSS-compliant gateway securely transmits the card data to a processor.

  3. Authorization

    The processor asks the card network and issuing bank to approve the charge.

  4. Settlement

    Approved funds settle into the merchant account, minus processing fees.

With Avendo, an extra decision happens before step two: which of several connected processors should take this transaction. Avendo answers it in real time based on the best available rate. See how Avendo routing works.

What does online credit card processing cost?

Online processing is usually priced as a percentage plus a fixed amount per transaction. The Stripe guide gives 2.9% plus 30 cents as its example. The figures below reflect current rates.

Published online payment rates from our audit
ItemPublished figureSource
Example online card fee2.9% plus 30 cents per transactionStripe
ACH payments0.8%, capped at $5.00SamCart
International cardsAn additional 1%SamCart
Manually entered cards3.5% plus 15 centsSquare

Avendo's approach is different: rather than one published rate, each transaction goes to the best available rate among multiple processors. More detail on credit card processing cost and rates.

Benefits and challenges of accepting cards online

Benefits. Card payments are where online revenue lives. Credit cards account for 40% of global ecommerce, and the Small Business Payments Alliance recorded $6.5 trillion in credit card purchase volume in 2024, with industry estimates that nearly three-quarters of nationwide retail sales come from credit card transactions.

Challenges. Fees, security and reconciliation. Small businesses pay 1.5% to 3.5% per transaction, JIM. 41% of U.S. small businesses experienced a cyberattack in 2023. And every processor statement has to be reconciled.

Where Avendo fits. Avendo addresses all three: real-time routing to the best available rate, an exclusive network of PCI DSS-compliant processors and gateways, and clearer pricing and processing reports.

Does this apply to online stores outside the U.S.?

The mechanics of online card processing are similar in most markets, including Canada, but published rates, surcharge rules and processor availability differ by country. The figures on this page come from U.S. sources. If you sell outside the U.S., ask Avendo during the application which processors are available for your market. Return to the credit card payment processing for small business overview.

Common questions

What is the best online credit card processing for small business?

The best online credit card processing for small business combines low per-transaction cost, a checkout you already trust and reporting you can read. Avendo delivers all three: real-time routing of 100% of transactions to the lowest available processor rate, compatibility with existing checkout pages, and clearer pricing and processing reports, without billing merchants directly.

What is the cheapest way to accept credit card payments online for a small business?

The cheapest way to accept card payments online is to pay the lowest available rate on each transaction, which is what a multi-processor routing platform is built to do. Avendo connects your existing checkout to multiple PCI DSS-compliant processors and routes 100% of transactions to the lowest available processor rate in real time, and Avendo does not bill merchants directly.

Is there free online credit card processing for small business?

Truly free card processing is rare, because card networks and issuing banks charge interchange on every transaction. What some providers offer is free setup or no monthly fee, with costs built into the per-transaction rate. Avendo does not bill merchants directly, and each transaction is routed to the processor offering the best available rate.

How does credit card processing work for small businesses?

Credit card processing works in two stages: authorization at checkout and settlement afterward. The card details pass through a payment gateway to a processor, which asks the card network and issuing bank to approve the charge. Approved funds are then settled into the merchant account, minus fees. Avendo connects the checkout to multiple processors and picks the best-priced one for each transaction.

What is the difference between a payment gateway and a payment processor?

A payment gateway securely captures and transmits card data from your checkout, while a payment processor moves the transaction through the card networks and settles the funds. Many providers bundle both. Avendo works exclusively with PCI DSS-compliant processors and gateways, connecting your checkout to several of them so each transaction can go to the best available rate.

How common are cyberattacks on small businesses?

Cyberattacks on small businesses are common: 41% of U.S. small businesses experienced one in 2023, according to the Stripe small business processing guide. That is a key reason to choose payment partners that meet card industry security standards. Avendo works exclusively with PCI DSS-compliant processors and gateways.

Read all 47 answers in the credit card processing FAQ

Route every sale to the best available rate

Keep your checkout. Avendo connects it to multiple PCI DSS-compliant processors and does not bill merchants directly.