With the world focusing on digital first, most businesses need to have a payment set up that accepts cards and provides customers the flexibility to pay using their preferred methods. However, for the business, these payments come at the cost of hidden fees, transaction fees, and other fees set by the payment provider.
But each payment method has a separate cost and requirements, so businesses can choose the payment method that suits them and their customers to best accept card payments without paying huge fees to their payment provider.
Let’s break down the options so you know what’s worth your money, and what isn’t.
The True Cost of Accepting Card Payments
Every time you swipe, tap, or insert a card, a few cents (or more) go to payment providers, banks, and card networks. The main fees you’ll see are:
- Interchange fees (set by Visa/Mastercard/Amex, unavoidable)
- Processor markups (added by your payment processor)
- Monthly or hidden fees (terminal rental, PCI compliance, statement fees)
The goal is not to avoid fees altogether (you can’t), it’s to minimize the processor markup and avoid surprise charges.
The Cheapest Methods to Accept Credit Card Payments In Person
Here are the main ways businesses take in-person card payments, and how they stack up on cost:
A) Mobile Card Readers
- Plug your phone in or connect via Bluetooth.
- Great for food trucks, pop-ups, or mobile vendors.
- Typically, a flat per-transaction fee of about 2.6%–2.9%.
The cheapest upfront, but the marginal cost increases as you grow your monthly sales volume.
B) POS (Point-of-Sale) Systems with Transparent Pricing
- Combines hardware, software, and reporting in a single package.
- For retail, restaurants, salon/spa, and multi-location businesses.
- When combined with interchange-plus pricing, a POS terminal is generally cheaper over the long term than mobile readers.
Best balance of affordability and scalability.
C) Payment Terminals from Banks or Merchant Accounts
- Traditional setup with leased hardware and contracts.
- Advertised “low” headline rates often come with hidden monthly fees.
Sometimes viable for very high-volume businesses, but rarely the cheapest for small to mid-size merchants.
D) Cash Discount or Surcharge Programs
- Enables you to pass fees along to customers.
- It could potentially slash your processing costs.
Works in some areas, but not always legal or consumer-friendly.
Bottom line: Mobile readers are cheapest to start, but POS systems with interchange-plus pricing usually win in the long run.
Things to Look for in the Cheapest Card Payment
The cheapest way isn’t always about the lowest headline rate. Look for:
- Interchange-plus pricing instead of flat fees (transparent and fair)
- No monthly or hidden charges (avoid rental and compliance add-ons)
- Free or affordable POS hardware helps you avoid monthly rent
- Discounted rates for debit transactions (lower interchange fees)
- Fast funding so you’re not stuck waiting days for payouts
In short: transparency, not tricks, is what keeps your costs down.
So, What’s the Cheapest Way to Accept Payments in Person?
For most small and medium businesses in 2025, the cheapest way to accept card payments in person is: A transparent, interchange-plus processor with an all-in-one POS or mobile card reader, without extra monthly or compliance fees.
That’s why more businesses are moving away from traditional banks and legacy merchant accounts. They’re choosing modern processors that offer fair pricing, instant setup, and tools built for growth.
How RapidCents Keeps Costs Down
At RapidCents, we built our in-person payments to save you money from day one:
- No monthly minimums, no hidden fees
- Simple, low transaction rates so you keep more of each sale
- Free POS software with powerful features for retail, restaurants, and services
- Fast payouts so your cash flow isn’t tied up
Whether you run a shop, café, or service business, you deserve payment processing that helps, not hurts, your bottom line.
Final Word
The cheapest way to accept card payments isn’t about cutting corners—it’s about choosing a partner who puts your profits first. With the right payment solution, you can keep costs low, check out fast, and keep customers happy.
Looking for the most affordable in-person payments?
Talk to RapidCents today.
