Coastal Pay | Payment Processor, Payment Gateway & 2000+ Software Integrations

Credit Card Processing

Credit Card Processing for Software Companies & B2B Businesses

Fast, Reliable Payment Processing Built for High-Growth Companies

Coastal Pay delivers enterprise-grade credit card processing without the enterprise headaches. Whether you’re a SaaS platform processing subscriptions, a marketplace managing vendor payments, or a B2B business handling large transactions, our payment solutions scale with your growth while keeping costs transparent and support responsive.

Process All Major Credit Cards: Visa, Mastercard, American Express, and Discover
Competitive Rates: Interchange-plus pricing with no hidden fees
Fast Approval: Most businesses approved within 24-48 hours
Expert Support: Direct access to payment specialists, not call centers

What is Credit Card Processing?

Credit card processing is the service that allows businesses to accept credit and debit card payments from customers. When a customer swipes, dips, or enters their card information, the payment processor securely transmits that data through the card networks (Visa, Mastercard, etc.) to the customer’s bank for approval. Once approved, funds are transferred from the customer’s account to your merchant account, typically within 1-2 business days.

For software companies and B2B businesses, choosing the right credit card processor impacts everything from your profit margins to customer experience to cash flow predictability.

Credit Card Processing Services

Online Credit Card Processing

Accept payments through your website, mobile app, or software platform. Our payment gateway integrates seamlessly with your existing tech stack, supporting one-time purchases, subscription billing, and usage-based invoicing.

Best for: SaaS companies, e-commerce businesses, digital service providers, online
marketplaces

Features:

Secure payment gateway with PCI Level 1 compliance
Tokenization and secure card storage for recurring billing
Fraud detection and chargeback prevention tools
Support for 3D Secure and strong customer authentication
Real-time reporting and transaction analytics

In-Person Credit Card Processing

Accept credit cards at your physical location with modern point-of-sale equipment. EMV chip readers, contactless payments (Apple Pay, Google Pay), and mobile card readers for payments anywhere.

Best for: Retail stores, restaurants, service businesses, mobile professionals, event vendors

Features:

EMV chip card readers for secure transactions
Contactless and mobile wallet acceptance (NFC)
Portable wireless terminals for mobile businesses
Integration with point-of-sale software
Tip adjustment and signature capture

Mobile Credit Card Processing

Turn your smartphone or tablet into a payment terminal. Accept credit cards on-the-go with mobile card readers and apps that work with iOS and Android devices.

Best for: Field service businesses, contractors, delivery services, trade show vendors, mobile retailers

Features:

Bluetooth card readers compatible with smartphones
Accept payments anywhere with cellular or WiFi connection
Digital receipt delivery via email or text
Inventory tracking and invoicing capabilities
Offline mode for areas with poor connectivity

Phone/Mail Order (MOTO) Processing

Manually enter card information for phone orders, mail orders, or situations where the customer isn’t present. Includes virtual terminal access and recurring billing capabilities.

Best for: Call centers, subscription businesses, B2B companies, professional services, catalog sales

Features:

Secure virtual terminal accessible from any web browser
Address verification service (AVS) for fraud prevention
Recurring billing and subscription management
Custom authorization rules and velocity controls
Customer vault for storing payment information

High-Volume Credit Card Processing

Specialized processing solutions for businesses handling significant monthly volume. Custom pricing structures, dedicated account management, and advanced reporting tools.

Best for: Enterprises, established SaaS platforms, large marketplaces, high-volume retailers

Features:

Volume-based pricing discounts
Dedicated merchant support team
Advanced fraud prevention and risk management
Custom integration and API development support
Priority funding and extended processing hours

Credit Card Processing Rates & Fees Explained

Our Transparent Pricing Model: Interchange-Plus

Unlike processors that hide costs in tiered pricing or confusing rate structures, Coastal Pay uses interchange-plus pricing—the most transparent model in the industry.

How It Works:

Interchange Fee: Set by Visa/Mastercard (typically 1.5-3.5%), passed through at cost
Our Markup: Small fixed percentage plus per-transaction fee
Total Cost: You see exactly what Visa/Mastercard charge vs. what we charge

Example Transaction ($100 purchase):

Interchange fee: $2.20 (set by card brands)
Our markup: $0.30 + 0.30% = $0.60
Your total cost: $2.80 (2.80%)

This means you never pay more than necessary, and as interchange rates drop (which happens), so does your cost.

Factors That Affect Credit Card Processing Rates

Card Type

Debit cards: Lowest rates (1.5-2.0%)
Consumer credit cards: Mid-range rates (2.0-2.5%)
Premium rewards cards: Higher rates (2.5-3.5%)
Corporate/business cards: Highest rates (2.5-3.5%)

Transaction Method

In-person (card present): Lowest risk, lowest rates
Online with verified address: Moderate risk, moderate rates
Phone/mail order: Higher risk, higher rates
International cards: Additional fees apply

Business Type & Risk Level

Low-risk industries (retail, restaurants): Standard rates
Software/SaaS companies: Standard to mid-range rates
High-ticket B2B: May require specialized underwriting
High-risk industries: Higher rates and reserves may apply

Monthly Processing Volume

Higher volume typically qualifies for better rates
Consistent processing history improves pricing over time
Volume discounts available for $100K+ monthly processing

Common Credit Card Processing Fees

Transaction Fees (Per Swipe/Transaction)

Standard: Interchange + our markup (typically 2.5-3.5% total)
No hidden “qualified/mid-qualified/non-qualified” tiers

Monthly Fees

Account maintenance: $0 (included at no cost)
Gateway fees: $0 (included at no cost)
Statement fees: $0 (included at no cost)

Equipment Fees (If Needed)

Terminal purchase: One-time cost or low monthly rental
Mobile readers: Often provided free with qualifying accounts
No mandatory equipment purchases

Other Potential Fees

Chargebacks: $15-25 per dispute (industry standard)
Early termination: None (no long-term contracts required)
PCI compliance: Included with compliant processing practices
Batch settlement: $0 (included at no cost)

What We DON'T Charge:

❌Setup fees or application fees
❌Cancellation fees or early termination penalties
❌Monthly minimum processing requirements
❌Annual fees or membership fees
❌Hidden “service fees” or “regulatory fees”

Credit Card Processing for Different Business Types

Credit Card Processing for SaaS Companies

Accept recurring subscription payments with automatic billing, dunning management, and support for multiple pricing tiers. Our gateway handles:

Monthly, annual, and custom billing cycles
Usage-based and metered billing
Automatic retry logic for failed payments
Card updater service to reduce involuntary churn
Support for trial periods and freemium models
Proration and mid-cycle upgrades/downgrades

Average savings for SaaS: $800-2,000/month compared to processors with gateway fees and monthly minimums.

Credit Card Processing for Marketplaces

Split payments between platform and vendors automatically. Support complex payment flows with:

Multi-party split funding
Vendor payout management
Platform fee collection
Support for different vendor pricing structures
Compliance with platform payment regulations
Real-time reconciliation and reporting

Key benefit: Monetize your platform while we handle payment complexity and risk management.

Credit Card Processing for B2B Companies

Handle large transaction amounts and invoice-based payments with features built for business-to-business sales:

Level 2 and Level 3 processing for lower B2B rates
Net terms and invoice payment options
ACH and card payment flexibility
Purchase order integration
Multi-user authorization controls
Detailed transaction data for accounting

Rate optimization: Level 2/3 data can reduce your B2B transaction costs by 0.2-0.5%.

Credit Card Processing for Restaurants

Purpose-built features for the food service industry:

Tip adjustment capabilities
Split check and partial payment support
Integration with restaurant POS systems
Quick service and table service solutions
Contactless payment for faster transactions
Online ordering and delivery payment processing

Credit Card Processing for Retail

Traditional and modern retail payment solutions:

EMV chip card acceptance (required for liability protection)
Contactless/NFC for Apple Pay and Google Pay
Gift card and loyalty program support
Inventory management integration
Multiple location support with consolidated reporting
Returns and refund processing

Credit Card Processing for Professional Services

Payment solutions for consultants, agencies, law firms, and service providers:

Invoice and retainer payment processing
Client payment portal with saved payment methods
Recurring billing for ongoing engagements
Text and email payment requests
Trust account compliance support (for legal/professional requirements)
Detailed reporting for client billing

Merchant Account vs. Payment Service Provider

Traditional Merchant Account (What We Offer)

A dedicated merchant account in your business name with direct relationships with acquiring banks.

Advantages:

Better rates for established businesses
More control over funds and processing
Dedicated support and custom solutions
Lower risk of account freezes or holds
Scalable as your business grows

Best for: Established businesses, growing software companies, businesses processing $5K+ monthly

Payment Service Provider (Square, Stripe, PayPal)

Aggregate merchant account where you share an account with other businesses.

Advantages:

Quick setup (sometimes same-day)
No underwriting for very small businesses
Simple flat-rate pricing

Disadvantages:

Higher rates (often 2.9% + $0.30 minimum)
Account holds and freezes more common
Limited support and customization
Rolling reserves for growing businesses
Harder to scale as volume increases

Best for: Very small businesses, temporary needs, ultra-low volume

How Credit Card Processing Works: The Payment Flow

Step 1: Authorization (2-3 seconds) Customer provides card information → Your system sends to payment gateway → Gateway routes to card network → Card network contacts issuing bank → Bank approves or declines → Response returned to your system

Step 2: Batching (End of business day) Approved transactions are grouped together and submitted for settlement

Step 3: Clearing & Settlement (1-2 business days) Card networks facilitate fund transfer from customer banks to acquiring bank

Step 4: Funding (Next business day) Funds are deposited into your business bank account

Total time: Most businesses receive funds within 24-48 hours of the transaction.

Credit Card Security & Fraud Prevention

PCI DSS Compliance

Payment Card Industry Data Security Standard compliance is required for all businesses that accept credit cards. Coastal Pay helps you maintain compliance with:

Secure payment gateway (we handle the sensitive data)
Tokenization (replace card numbers with secure tokens)
Encrypted transactions (end-to-end encryption)
Regular security scans and updates
Compliance validation tools and support

Fraud Detection Tools

Address Verification Service (AVS) Matches billing address with card issuer’s records. Reduces fraud by up to 30%.

Card Verification Value (CVV) Requires 3-4 digit security code from card. Proves customer has
physical card.

Velocity Controls Limit transaction frequency and amounts to detect suspicious patterns.

Geolocation Filtering Block or flag transactions from high-risk countries or unusual locations.

Device Fingerprinting Identify and track devices used for transactions to spot fraudulent
patterns.

3D Secure / Strong Customer Authentication Additional verification layer required for certain transactions, especially international.

EMV Chip Card Processing

EMV (Europay, Mastercard, Visa) chip cards create unique transaction codes that can’t be reused, dramatically reducing counterfeit fraud.

Liability shift: If you don’t accept EMV chip cards, you become liable for counterfeit fraud. We
provide EMV-capable terminals at competitive prices.

Chargeback Protection

Chargebacks occur when customers dispute transactions with their bank. We help you minimize chargebacks through:

Real-time fraud screening
Clear billing descriptors
Detailed transaction documentation
Rapid response tools for disputes
Chargeback alerts (resolve before they become formal chargebacks)
Best practice guidance for your industry

Standard chargeback fee: $15-25 per dispute (we work to keep this as low as possible)

Choosing the Right Credit Card Processor

Questions to Ask Before Signing

About Pricing:

What pricing model do you use? (Avoid tiered pricing, look for interchange-plus)
What’s your markup over interchange?
Are there any monthly fees? (Gateway, statement, minimum processing, etc.)
What equipment costs should I expect?
Are there early termination fees?
What triggers rate increases?

About Service:

How do I reach support? (Phone, email, chat, hours available)
Who will be my main point of contact?
What’s your average response time for issues?
Do you provide integration support?
How quickly do you resolve funding holds?

About Funding:

How quickly do I receive funds?
Are there any rolling reserves or holdbacks?
What’s your policy on account holds?
How are refunds and chargebacks handled?

About Technology:

Does your gateway integrate with my platform/software?
What API documentation and developer resources do you provide?
Do you support the payment methods I need?
What reporting and analytics tools are included?

Why Software Companies Choose Coastal Pay

Built for Modern Software Businesses

Unlike traditional processors built for retail, we understand software business models—subscriptions, usage-based billing, marketplace payments, and API-first integration.

No Hidden Fees

Interchange-plus pricing with no monthly gateway fees, no statement fees, no PCI fees, no “service charges.” Just transparent, honest pricing.

Support That Actually Helps

Direct phone and email access to payment experts who understand your business. No phone trees, no overseas call centers, no ticket systems—just real help when you need it.

Fast, Reliable Funding

Funds in your account within 24-48 hours with minimal holds. We don’t play games with your cash flow.

Developer-Friendly

Modern RESTful API, comprehensive documentation, sandbox environment, and webhook notifications. Built by developers who actually use APIs.

Room to Grow

Start processing today and scale to millions in monthly volume. Our infrastructure and pricing grow with you.

Credit Card Processing Setup Process

How much does credit card processing cost?

Credit card processing typically costs 2.5-3.5% of the transaction amount plus $0.10-0.30 per transaction. The exact rate depends on your business type, average transaction size, monthly volume, and the types of cards you accept. Coastal Pay uses interchange-plus pricing, which means you pay the actual interchange rate (set by Visa/Mastercard) plus a small, transparent markup.

What's the difference between a payment gateway and a payment processor?

A payment gateway is the technology that securely transmits payment information from your website/app to the payment processor. A payment processor (also called a merchant acquirer) is the company that actually handles the transaction authorization and settlement. Coastal Pay provides both—an integrated payment gateway at no extra cost and full payment processing services.

How long does it take to get approved for credit card processing?

Most businesses are approved within 24-48 hours. Software companies, SaaS businesses, and standard retailers typically see the fastest approvals. Higher-risk industries or businesses with complex models may take 3-5 business days for underwriting review.

When do I receive my funds?

Funds are typically deposited into your business bank account within 1-2 business days after the transaction. For example, sales processed on Monday are usually in your account by Wednesday. Some high-volume or established businesses may qualify for next-day funding.

Do I need to sign a long-term contract?

No. Coastal Pay doesn’t require long-term contracts or charge early termination fees. We earn your business every month by providing excellent rates and service, not by locking you into multi-year agreements.

What equipment do I need to accept credit cards?

For online/software businesses: Just our payment gateway (included free) and your existing website or application.
For in-person businesses: You’ll need a card terminal or mobile reader. We offer competitive equipment pricing with purchase or rental options.
For phone orders: Access to our virtual terminal through any web browser (no special equipment needed).

Can I accept credit cards with bad credit?

Personal credit is one factor in underwriting, but it’s not the only consideration. Many businesses with less-than-perfect credit are approved based on business strength, processing history, and business type. We look at the complete picture, not just credit scores.

What's the difference between interchange-plus and tiered pricing?

Interchange-plus (what we use): You pay the actual interchange rate set by Visa/Mastercard plus our small, transparent markup. You can see exactly what each party charges.

Tiered pricing (what many processors use): Transactions are grouped into “qualified,” “mid-qualified,” and “non-qualified” tiers with opaque rates. You never know the actual cost breakdown, and processors can manipulate which tier your transactions fall into.

Bottom line: Interchange-plus is always more transparent and usually cheaper.

How do I prevent chargebacks?

Use AVS (address verification) and CVV verification
Provide clear billing descriptors
Respond quickly to customer inquiries
Keep detailed transaction records
Ship to verified addresses only
Get signature confirmation for high-value items
Use our fraud detection tools

Coastal Pay provides chargeback alerts that let you resolve disputes before they become formal chargebacks, often avoiding the chargeback fee entirely.

Can I accept American Express?

Yes. Coastal Pay supports all major card brands including Visa, Mastercard, American Express, and Discover. American Express typically has slightly higher interchange rates (around 2.5-3.5%) compared to Visa/Mastercard.

What's PCI compliance and do I need to worry about it?

PCI DSS (Payment Card Industry Data Security Standard) is a set of security requirements for any business that accepts credit cards. By using Coastal Pay’s secure payment gateway, most of the PCI compliance burden is handled for you. You’ll need to complete an annual Self-Assessment Questionnaire (SAQ), which we help you with.

Our gateway is PCI Level 1 compliant—the highest level of certification—so you can accept payments confidently.

Can I process credit cards internationally?

Yes. Our gateway supports international transactions and multiple currencies. However, international cards typically carry higher interchange rates and may trigger additional fraud checks. If you process significant international volume, contact us about multi-currency settlement accounts.

What happens if my business is high-risk?

Some industries or business models are considered “high-risk” due to higher chargeback rates or regulatory concerns. High-risk merchants typically face:

Higher processing rates
Rolling reserves (a percentage of sales held for 6-12 months)
More stringent underwriting requirements
Monthly or weekly payout schedules

We work with select high-risk businesses. Contact us to discuss your specific situation.

How do refunds work?

Refunds are processed through the same system as charges. When you issue a refund:

The customer’s card is credited (usually within 3-5 business days)
The original transaction fees are not refunded to you
The refund amount is deducted from your next settlement

Example: You charged $100 (paid $2.90 in fees). You refund $100. You’ve now paid $2.90 for a net-zero transaction.

Can I accept payments without a website?

Yes. You can accept payments via:

Virtual terminal (type card info into a web form)
Mobile card reader (attach to smartphone/tablet)
Physical card terminal (countertop or wireless)
Invoice with payment link (sent via email or text)
Phone orders (keyed into virtual terminal)

A website helps with risk assessment, but it’s not required for approval.

Get Started with Coastal Pay Credit Card Processing

Ready to Reduce Processing Costs and Improve Service?

Most software companies save $800-2,000 per month by switching to Coastal Pay. No hidden fees, no long-term contracts, no runaround when you need support.

What happens next:

Get a custom quote based on your actual processing volume and business type
Compare your current rates side-by-side with our pricing
Simple application takes 15 minutes, approval in 24-48 hours
Integration support from our technical team
Start processing within 1-2 weeks

Still Have Questions?

Our payment experts are standing by to answer your questions about credit card processing, compare your current rates, or discuss your specific business needs.

No sales pressure. No obligation. Just honest answers.

Local Credit Card Processing Services

Coastal Pay serves businesses nationwide with specialized expertise in credit card processing for:

California credit card processing
Texas credit card processing
New York credit card processing
Florida credit card processing

Serving businesses in all 50 states with the same transparent pricing, expert support, and fast funding.