Merchant services allow businesses to accept credit and debit card payments at a point-of-sale (POS) system, online, or through invoices. Technically, there is no way to accept card payments for free. However, there are free merchant services and payment service providers with no setup fees, contracts, or monthly fees that offer more affordable payment options.
The best free merchant accounts are as follows:
- Square: Best overall free merchant account
- PayPal: Best for solopreneurs and occasional sellers
- Helcim: Best for lowest transaction fees
- Stripe: Best for online businesses
- Braintree: Best for subscriptions and nonprofits
- Chase Payment Solutions®: Best for free and fast access to funds
- Wave: Best for free invoicing and accounting tools
Accept payments anywhere customers are; In-person, Online, Remote, Buy Now Pay Later |
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Best Free Merchant Accounts Compared
Our Score (out of 5) | In-person Transaction Fee | Online Transaction Fee | Chargeback Fee | |
|---|---|---|---|---|
 | 4.6 | 2.6% +10 cents | 2.9% + 30 cents | Waived up to $250/month |
 | 4.28 | 2.29% + 9 cents (Zettle) | 2.99% + 49 cents | $20 |
 | 4.15 | Interchange plus 0.15% + 6 cents to 0.4% + 8 cents | Interchange plus 0.15% + 15 cents to 0.50% + 25 cents | $15 refundable |
 | 4.15 | 2.7% + 5 cents | 2.9% + 30 cents | $15 |
 | 4.09 | 2.29% + 9 cents (PayPal Zettle) | 1.99% + 49 cents (nonprofits) | $15 |
 | 3.93 | 2.6% + 10 cents | 2.9% + 25 cents | From $25 depending on volume |
 | 3.83 | No in-person payments | 2.9% + 30 cents (invoiced) | $15 refundable |
Note that all the providers on our list offer $0 monthly fees, startup costs, no monthly minimums, and no long-term contracts.
Our free merchant account recommendations are ideal for startups and low-volume merchants. For businesses with larger monthly sales volume, payment processors that offer very low transaction rates in exchange for a monthly fee are more cost-effective solutions.
Another alternative for free merchant processing is to pass along the credit card transaction fees to customers via credit card surcharging, convenience fees, or cash discounting. Learn more about free credit card processing.
Why You Can Trust Fit Small Business
I have nearly seven years of experience evaluating dozens of merchant account services and payment processors, plus a background in finance and payment technology. To recommend the best answer, I tested 13 providers based on 21 data points that considered value-for-money, versatility, and ease of use. See my full methodology below.
- Nearly seven years evaluating payment systems
- Tested 13 free merchant accounts on 21 data points
- Observed Fit Small Business’ editorial policy
Square Payments: Best Overall Free Merchant Account
Pros
- Free, instant setup
- Chargeback protection up to $250 per month
- Free POS and ecommerce tools
Cons
- Automated clearing house (ACH) processing only in invoicing
- Account stability issues
- Limited live support
Overview
Who should use it:
New and small businesses that need a POS system
Why we like it:
Square is an all-in-one payment and POS solution for small businesses. It does not charge monthly fees for payment processing and offers the most robust free plan that allows small businesses to launch their business with very little to zero upfront cost. Square’s software is highly rated and well-reviewed by real-life users, making it one of the most popular POS and payment services on the market.
While not the lowest, Square’s transaction processing rates are competitive, especially considering the free POS and ecommerce tools available to its users. Its low startup costs, competitive processing rates, sleek interface, and advanced POS features also make Square our consistent pick for the best overall merchant services.
What You Get With a Square Free Merchant Account:
Fees:
- In-person transaction: 2.6% + 10 cents
- Ecommerce and invoice transactions: 2.9% + 30 cents per transaction
- Keyed-in and card-on-file transactions: 3.5% + 15 cents per transaction
- ACH Payments: 1%, minimum $1
- Afterpay: 6% + 30 cents
- Instant Transfer: Plus 1.75%
- Hardware costs: From $0 to $799
- Chargeback fee: Waived up to $250/month
- Same-day funding: Plus 1.5%
Upgrade Cost:
- Paid POS plans: $29-$89
- Ecommerce tools: $29-$79
- Invoicing: $30
- Payroll: $35
- Team management: $35
- Marketing: $15 to at least $425 (email), $10 to at least $3,760 (SMS)
See our guide on Square pricing and fees.
Merchants who use Square find the system easy to use, with reasonable fees and great value. Although one downside is that Square Payments does not integrate other merchant platforms.
- Capterra rating: 4.7 out of 5; 2,300 reviews
- G2 rating: 4.6 out of 5; 150 reviews
What Users Like: | What Users Don’t Like: |
|---|---|
PayPal: Best Free Merchant Account for Solopreneurs & Occasional Sellers
Pros
- Easy to use
- Instant access to PayPal funds
- Free invoicing and POS software
Cons
- Monthly fee for virtual terminal and recurring payments
- Three to five business days for a bank deposit
- $20 chargeback fee
Overview
Who should use it:
Solopreneurs, occasional sellers, businesses that sell with PayPal customers
Why we like it:
PayPal Business offers low-cost, user-friendly payment processing for individuals and small businesses. It has a sleek mobile POS app with additional payment methods exclusive to PayPal users.
PayPal’s One Touch technology creates a faster checkout experience that leads to higher conversion rates for your online store. It offers affordable mobile and online transaction fees, plus a free mobile POS app and invoicing software. Its online payments also work with just about any website or software.
Solopreneurs, hobbyists, and occasional sellers will find its rates and peer-to-peer payment tools an ideal solution.
What You Get With a PayPal Free Merchant Account:
Fees:
- In-person processing fees: 2.29% + 9 cents
- Online processing fees: 2.99% + 49 cents
- Keyed-in processing: 3.49% + 49 cents
- E-check fees: 3.49% capped at $300
- Micropayments: 4.99% + 9 cents
- Hardware costs: PayPal Zettle reader $79 (first reader discounted, $29)
- Chargeback fee: $20
- Same-day funding: Plus 1.5%, instant via PayPal balance
Upgrade Cost:
- Virtual terminal: $30
- Recurring billing services: $10
- Recurring payment tools: $30
- Advanced payment gateway: $25
Like Stripe, users find PayPal easy to use, particularly for online payments with a wide range of integrations. Meanwhile, the majority of customer complaints are about frozen accounts.
- Capterra rating: 4.7 out of 5; 25,000 reviews
- G2 rating: 4.4 out of 5; 2,000 reviews
What Users Like: | What Users Don’t Like: |
|---|---|
Helcim: Best Free Merchant Account With Low Transaction Fees
Pros
- Interchange-plus pricing
- Automated volume discounts for businesses processing over $25,000 per month
- Automated free credit card processing
Cons
- Limited business integration
- Longer application process
- Extra fees for Amex payments
Overview
Who should use it:
For busy small businesses—retailers, restaurants, professional services
Why we like it:
Helcim offers interchange-plus transaction fees and automatic volume discounts for sales above $50,000/month. It also comes with free POS, inventory, invoicing, customer management, and ecommerce features to launch a multichannel business easily. The system can easily be adapted for various industries, including retail and subscription-based service businesses.
However, Helcim’s auto-applied volume discount favors businesses with larger monthly transactions, which makes it best suited for retailers. If your business mostly accepts remote payments (invoice and on websites), you can save on credit card processing fees with Helcim’s automated zero-cost processing program.
What You Get With a Helcim Free Merchant Account:
Fees:
- In-person processing fees: Interchange plus 0.15% + 6 cents to 0.4% + 8 cents
- Online and keyed-in processing fees: Interchange plus 0.15% + 15 cents to 0.50% + 25 cents
- American Express transactions: 0.10% + 10 cents
- ACH processing fees: 0.5% plus 25 cents per transaction
- Recurring billing: $0
- Monthly fees: $0
- Hardware costs: $99 per card reader
- Chargeback fee: $15, which will be refunded for every dispute you win
- Same-day funding: N/A
Upgrade Cost: No paid upgrade options, Helcim’s features are available entirely at no extra monthly cost.
Online user reviews for Helcim are mixed but mostly positive since it launched new features. Merchants also like Helcim’s transparent fees and automatic discounts.
- Capterra rating: 4.1 out of 5; 25 reviews
- G2 rating: 4.2 out of 5; 15 reviews
- Trustpilot rating: 4.2 out of 5; 350 reviews
What Users Like: | What Users Don’t Like: |
|---|---|
Stripe: Best Free Merchant Account for Online Businesses
Pros
- Free account with instant setup
- Works with any website or online store
- Instant payout options available
Cons
- Complex setup process
- $15 chargeback fee
- First deposit payout takes up to 14 days
Overview
Who should use it:
Online businesses that require customizations including platform language and ID verification
Why we like it:
Often compared to Square and PayPal (see our comparison of the three), Stripe offers basic and customizable online checkouts with instant setup and no application process. It can also manage subscriptions and recurring fees and store card data with a range of customization options. Detailed online features, zero startup and monthly fees, and competitive processing rates make Stripe a solid choice for ecommerce businesses and business-to-business (B2B) sellers.
I tested the system by opening a Stripe account upon hearing that it now offers basic checkout options. However, I still find the setup process too complicated for simple mom-and-pop shops or occasional sellers.
What You Get With a Stripe Free Merchant Account:
Fees:
- In-person processing fees: 2.7% + 5 cents
- Online processing fees: 2.9% + 30 cents
- Keyed-in processing fees: 3.4% + 30 cents
- ACH processing fees: 0.8% per transaction with a $5 cap
- ACH: 0.8%, $5 cap
- Invoicing: Plus 0.4%-0.5%
- Recurring Billing: Plus 0.5%-0.8%
- BNPL: 5.99% + 30 cents
- International payments: Plus 1% + 30 cents fee, 1% spread for currency conversion
- Hardware costs: From $59
- Same-day funding: Plus 1.5%
- Chargeback fee: $15
Upgrade Cost:
- Custom domain: $10
- Stax Connect (for platforms): $2
- Advanced billing: 7% of total billing or $620/year
- Tax management: $90
- Advanced fraud protection: 2-7 cents/transaction
- Analytics: $10
Overall, merchants who use Stripe like the system’s ability to work with most ecommerce platforms. One interesting issue raised by a few merchants is that, despite being a payment facilitator, Stripe would take time to verify and approve a merchant account.
- Capterra rating: 4.7 out of 5; 3,000 reviews
- G2 rating: 4.3 out of 5; 290 reviews
What Users Like: | What Users Don’t Like: |
|---|---|
Braintree: Best Free Merchant Account for Subscriptions & Nonprofits
Pros
- Significant discount for nonprofits
- Dedicated merchant account
- Built-in PayPal payment methods
Cons
- Account takes longer to approve
- Platform not as user-friendly as PayPal
- Poor customer reviews
Overview
Who should use it:
Nonprofits that prefer a traditional merchant account with a scalable platform for donation and donor subscriptions
Why we like it:
Braintree is PayPal’s sister service and a good fit if you need a free traditional merchant account with affordable nonprofit rates and the ability to manage donor subscriptions. It also lets you accept donations through ACH payments and comes with PayPal payment methods built into its features. Instant approval for some merchant account applications is possible.
Aside from providing dedicated merchant services for small businesses, Braintree is also the better choice over PayPal if you need to manage subscriptions. It offers more advanced and even free customization tools (PayPal charges for recurring billing) such as payment gateways with customizable checkout interfaces and a PCI-compliant customer credit card data vault if you want to set up automatic recurring payments.
What You Get With a Braintree Free Merchant Account:
Fees:
- In-person payments: PayPal rates
- Online card and digital payments: 2.59% + 49 cents
- Venmo payments: 3.49% + 49 cents
- Nonprofit payments processing: 1.99% + 49 cents
- ACH processing: 0.75% per transaction capped at $5 per transaction
- Chargeback fee: $15
Custom interchange-plus pricing for merchants that process $80,000 per month
Upgrade Cost:
- Payment gateway: $49/month (with non-Braintree merchant account) + $10 (additional merchant account) + 10 cents per transaction
There are mixed reviews of Braintree online. While most users love Braintree’s integration capability and ability to offer PayPal as a payment method without the need for additional integration, other Braintree merchants are concerned about its limited customization and instances of frozen accounts.
- Capterra rating: 3.9 out of 5; 65 reviews
- G2 rating: 3.4 out of 5; 90 reviews
What Users Like: | What Users Don’t Like: |
|---|---|
Chase Payment Solutions®: Best Free Merchant Account for Free & Fast Access to Funds
Pros
- Direct processor
- Compatible with most card terminals
- Free gateway integrations offered
Cons
- Contract and monthly minimums on some accounts
- Extra costs for dispute management feature
- Long-term contract for some accounts
Overview
Who should use it:
Small businesses looking for a traditional merchant account with free POS and same-day funding
Why we like it:
You can sign up for a free Chase merchant account with or without a Chase bank account, although having one qualifies you to use Chase payment methods that support same-day access to funds. There is no fee for opening a business checking account with Chase, and maintaining one is also free for merchants with a minimum $2,000 balance.
Apart from being one of the big names in the banking industry, Chase Payment Solutions® has also acquired key subsidiaries to become one of the most versatile merchant service providers in the market. So, unlike most of its contemporaries, Chase works directly with small businesses, offering in-person, online, and mobile sales with strong banking infrastructure.
What You Get With a Free Chase Merchant Account:
Fees:
- In-person processing: 2.6% + 10 cents
- Online processing: 2.9% + 25 cents
- Keyed-in processing: 3.5% + 10 cents (requires a Chase Business Complete Account)
- ACH: 1%, capped at $25 (instant or same-day), $2.50 for first 10 and 15 cents each for additional (standard)
- Hardware costs: From $49.95 or free with a long-term contract
- Same-day funding: Free for Chase bank account holders
- Chargeback fee: From $25, depending on sales volume
Upgrade Cost:
- BigCommerce: $29.95-$299.95
- FreshBooks: Contact FreshBooks
- Authorize.net: $25
Except for Trustpilot, there are no other user reviews for Chase Payment Solutions® online. However, Chase’s proprietary virtual terminal, Orbital, received generally positive feedback about how the system is easy to use and integrates with most ecommerce platforms.
Trustpilot rating: 4.4 out of 5; 60 reviews
What Users Like: | What Users Don’t Like: |
|---|---|
Wave: Best Free Merchant Account With Invoicing & Accounting Tools for Solo Professionals
Pros
- Easy to use
- Free accounting and invoicing software plus mobile app
- Fast deposit turnaround time
Cons
- Invoice payments processing only
- Very limited live support
- Standalone product (lacks integrations)
Overview
Who should use it:
Businesses that only need an online invoicing solution to run their business
Why we like it:
Wave is a free accounting and invoicing tool for freelance workers, contractors, and small businesses. Like Square, it can create, customize, and send invoices (even estimates) on your computer and from the mobile app and offer a variety of payment methods, including adding a Pay Now button. However, it’s important to note that Wave does not provide you with a full-service online merchant account.
That said, Wave can let you track and manage your invoices with an accounts receivable (A/R) system integrated with your merchant account (by comparison, you can only do this with Square through an accounting software add-on).
What You Get With a Wave Free Merchant Account:
Fees:
- In-person processing fees: N/A
- Credit card processing (online invoice payments): 2.9% + 30 cents; 3.4% + 30 cents for American Express cards
- ACH processing fees: 1% with a $1 minimum
- Hardware costs: N/A
- Same-day funding: N/A
- Chargeback fee: $15, refunded if the dispute is decided in your favor
Upgrade Cost:
- Paid plan: $16
- Digital capture of unlimited receipts: $8
- Payroll: $20
- Hiring a bookkeeper: $149
A growing number of Wave users generally have positive reviews of Wave. Merchants like the free, full-featured accounting and invoicing tools, while others complain about the complicated setup that involves setting up a chart of accounts before you can start accepting payments.
- Capterra rating: 4.4 out of 5, 1,500 reviews
- G2 rating: 4.6 out of 5; 15 reviews
What Users Like: | What Users Don’t Like: |
|---|---|
Methodology: How We Evaluated Free Merchant Accounts
Since there are no “free” merchant accounts, we considered companies that don’t lock you into a contract or have monthly fees, startup costs, and monthly minimums, which considerably narrowed our list. We then tested each software ourselves to identify the most small business-friendly payment processors, evaluating their ease of account application, quality of services offered with their free plan, transaction fees, and payment processing.
We also looked at the overall transparency of each company’s pricing structure, affordability, reputation, customer reviews, and integrations. Finally, we considered the value of each provider’s paid plans and the cost of add-on features in this update. Based on these criteria, Square received the highest rating, with an overall score of 4.60 out of 5.
Click through the tabs below to see our specific evaluation criteria:
30% of Overall Score
20% of Overall Score
30% of Overall Score
20% of Overall Score
How to Choose the Best Free Merchant Account
When choosing free merchant providers, you need to consider the terms and conditions that come with signing up for one. You will also need to look at what each provider can potentially offer as your business grows.
Consider the following guide questions:
- Are there any startup costs? The best free merchant account does not require you to spend anything upfront.
- Do I need to sign up for a long-term contract? If a free merchant account comes with free or leased hardware, chances are that it comes with at least a one-year contract and sometimes even a cancellation fee.
- Are there any incidental costs? Look out for fine print that enumerates incidental fees such as compliance fees, monthly minimums, inactivity fees, and chargebacks. Some payment service providers do not charge for these incidentals.
- What features are available in the free plan? Be sure that the free plan does not heavily limit your ability to process transactions every month. Know the payment methods you need and confirm that they not only are available, but also do not charge you extra to use them.
- What does the provider offer growing businesses? Migrating from one merchant services provider to another can interrupt your day-to-day operations. So find out from the start what the possibilities are for growing your business with this provider.
For additional guidance on getting signed up for a merchant account, check out our detailed guide:
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Frequently Asked Questions (FAQs)
These are some of the most common questions we encounter about free merchant services.
A free merchant account is a merchant account service that does not charge you a monthly account maintenance fee. It does, however, charge merchants with transaction fees that are billed monthly or annually.
The cost of maintaining a merchant account ranges from $0 to $199, often referred to as plans or a subscription cost. Your merchant services or payment services provider determines the basis for the plans. Some providers charge higher monthly merchant account fees for higher sales volume limits, while others use monthly merchant account fees to gate their more advanced features.
Most payment services providers offer merchant accounts free of charge, particularly to small businesses. Unless you only accept cash payments, transaction fees are unavoidable. This is because card networks and acquiring banks will always impose fees whenever they process non-cash payments on the merchant’s behalf.
A free merchant account is the simplest to create as there is no application process. All you need to do is head on to your preferred merchant services or payment services provider’s website and click on the sign up button. Follow the prompts and provide your business profile and personal information. You will also need to link a bank account to start accepting payments.
Bottom Line
Although there are no true merchant services that are 100% free, many options have no monthly fees, startup fees, or processing minimums and come with competitive pay-as-you-go transaction processing fees.
Square is our top recommendation for free merchant services for small businesses because in addition to having no application process, monthly fees, setup fees, and minimal hardware fees, it has all the basic tools that you need to run a mobile, in-store, online, or multichannel retail business. Square comes with a free, top-of-the-line mobile payments app and has other business solutions you can add for a truly affordable, all-in-one payment and POS solution.