Merchant services, also referred to as payment processors, are a necessary but frustrating part of running a business. We list 10 providers that offer fair and transparent pricing
10 Best Merchant Services for 2024
This article is part of a larger series on Payments.
Merchant services The main role of a merchant services provider is to set up merchant accounts that businesses need to start accepting credit cards and other types of payments. This is why merchant services providers are also often called payment processors even though there are some differences in the type of merchant account they provide. allow businesses to accept credit and debit card payments. Many also offer additional tools such as payment gateways, virtual terminals, and point-of-sale (POS) systems. The best solutions offer competitive rates, month-to-month contracts with no cancellation fees, and flexible solutions for processing in-person and online transactions.
Note that there are several pricing structures for merchant account providers. To truly compare pricing side-by-side, you should request a quote or use a tool like our calculator below.
The best merchant services for small businesses are:
- Square: Best overall
- Helcim: Cheapest merchant services provider
- Payment Depot: Best for growing businesses For US Businesses Only
- Chase Merchant Services: Best direct processor
- Stax: Best for large-volume businesses For US Businesses Only
- QuickBooks: Best for QuickBooks users
- U.S. Bank Merchant Services: Best for same-day funding
- PayPal: Best for occasional sales
- Stripe: Best for online payments
- PaymentCloud: Best approval odds
Accept payments anywhere customers are: In-person, Online, Remote, Buy Now Pay Later |
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Best Merchant Services Compared
Quiz: Which Payment Processor Is Right for You?
Which Payments Provider is Right for You?
Square: Best Overall Merchant Services Provider
Pros
- Transparent, predictable pricing
- Free, user-friendly software & card reader
- No application, contract, monthly fees, or minimum requirements
Cons
- Account stability issues
- Limited or inconsistent support
- Interchange plus rates only for large enterprise clients
Overview
Who should use it:
Small businesses that want low fees and a free subscription, a flexible set of features, compatibility with many industries, and easy setup and use will find Square a great fit.
Why we like it:
Square is an all-in-one merchant services provider, meaning it can process payments in-store and online as well as via mobile, virtual terminal, invoice, and even quick response (QR) code. The simplest merchant account provider to get started with, Square is free to use except for pay-as-you-go transaction fees.
Easy, low-cost, and flexible merchant services, combined with the best free POS software, make Square the best value for new and small businesses that want lots of payment options, easy setup, and low fees. It is also our leading free merchant account and our top choice among retail credit card processors.
As soon as you create your free Square account, you can accept credit card payments, record cash and check sales, process invoices, set up an online checkout or ordering system, and accept contactless payments.
- Monthly fee: $0 to $89 (Square for Retail Plus plan)
- Card-present transaction fee: 2.6% + 10 cents
- Ecommerce and invoice transaction fee: 2.9% + 30 cents
- Card-not-present transaction fee: 3.5% + 15 cents
- Contract length: Month-to-month
- Early termination fee: $0
- Chargeback fee: Waived up to $250 per month for chargeback protection
- Card reader: $59
Magstripe Reader | Contactless and Chip Reader | Square Terminal |
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First free, additional $10 | $59 | $299 or $27 per month for 12 months |
Accepts payments via magstripe (swiped), available in jack or lightning connector. | Bluetooth reader that accepts EMV (chip), and near-field communications (NFC), such as Apple Pay and Google Pay payments. Optional countertop dock and phone case mount. | Stand-alone mobile POS that can take orders, accept card payments, and issue receipts with built-in printer. |
- Free plan and affordable upgrades: Square has a forever-free plan that contains lots of tools for point of sale, ecommerce, and payments. If you decide to upgrade, higher plans are within reach even for small and new businesses.
- Multiple payment methods and services: Square gives you great flexibility in accepting various payment methods. Customers can buy and pay via credit card (in-person and via manually-keyed payments), through online stores and social media, ACH bank transfers, buy now, pay later (BNPL), recurring payments, and more. Square also has an online CBD program that lets you sell hemp and hemp-derived products—something unique among the providers in this guide.
- Chargeback policy: Square waives up to $250 per month for chargeback disputes—a generous policy compared to other merchant services.
- Affordable hardware: Square hardware covers a wide range of prices and devices, so you’re sure to find what you need. You get one free card reader upon signing up, and financing is available for most hardware purchases.
Helcim: Cheapest Merchant Service Provider
Pros
- Interchange-plus pricing with no monthly fee
- Free POS, customer relationship management (CRM), invoicing, and online store software
- Options to pass processing fees onto customers
Cons
- Limited third-party integrations
- Charges extra for Amex transactions
- Strict approval process
Overview
Who should use it:
We recommend Helcim for small businesses prioritizing low cost and businesses preferring to avoid monthly payments and pass fees onto customers.
Why we like it:
Helcim is an all-in-one merchant account provider. Similar to Square, it comes with free sophisticated sales solutions, including a fully hosted online store, invoicing software, a POS app, a mobile payment app, basic inventory tracking, hosted payment pages, and more.
Helcim’s free software, interchange-plus pricing with no monthly fee, and transparent volume discounts make it the best choice for any business prioritizing low costs. In fact, we rated it the cheapest credit card processor for small businesses.
Like Payment Depot and Stax by Fattmerchant, Helcim offers interchange-plus pricing, which is great for heavy-volume businesses. Helcim charges no monthly fee and offers automated discounts as you scale.
- Monthly fee: $0
- Card-present transaction fee: From interchange plus 0.15% + 6 cents
- Card-not-present transaction fee: From interchange plus 0.15% + 15 cents
- American Express transaction fee: 0.10% + 10 cents
- Contract length: Month-to-month
- Early termination fee: $0
- Chargeback fee: $15 per lost dispute
- Card readers: $99
- POS terminal: $329
Helcim also has a free credit card processing program called Helcim Fee Saver, which allows merchants to pass processing fees over to customers via a “convenience fee” for certain types of transactions like invoices and online payments.
Card Reader | Smart Terminal |
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$99 | $329 |
Tap, Chip & PIN transactions | Tap, Chip & PIN transactions |
Email receipts, batch history, inventory tracking | Email & print receipts, batch history, inventory tracking, built-in POS, employee logins |
- Automated volume discounts: If your business processes high volumes and you need discounted rates, Helcim is a great choice. Helcim reduces your fees as your processing volume goes up; what’s more, the provider does this automatically, without you needing to call and negotiate for lower rates.
- Great pricing terms: Helcim gives you zero monthly fees, interchange-plus pricing, volume discounts, and refundable chargeback fees. In terms of sheer financial savings, few other providers have such attractive offerings.
- Free credit card processing: Helcim’s Fee Saver feature lets you accept credit card payments while paying no processing fees on your end. You can opt to pass these fees onto customers if they pay via credit cards, rather than other methods such as ACH payments or cash. The Fee Saver feature applies for both in-person and online payments, and customers are informed of this extra fee on their invoices and receipts.
Payment Depot: Best for Growing Businesses
Pros
- Custom interchange-plus rates
- No contract or cancellation fee
- 24/7 customer support
Cons
- Next-day funding available with fee
- ACH payment is an add-on service
- US merchants only
Overview
Who should use it:
With its custom interchange-plus pricing and business funding tools, Payment Depot is suitable for small established businesses, including retailers, restaurants, salons, auto shops, medical practices, and B2B companies.
Why we like it:
Payment Depot previously used the same pricing model as Stax and currently offers the interchange-plus model but with custom-quoted rates.
One membership with Payment Depot includes interchange-plus pricing for card-present, online, virtual terminal, and mobile payments. You’ll also enjoy no monthly fees, no contracts, and 24/7 support.
Finally, Payment Depot is flexible with ecommerce payment gateways; you’ll have several options including Authorize.net, Stripe, PayPal, and Amazon Pay.
- Monthly fee: $0
- Transaction fees: Custom-quoted (variable rates from around 0.2% to 1.95%)
- Contract length: Month-to-month
- Early termination fee: $0
- Chargeback fee: $25
- Card readers: From $49
- Other fees: Payment Depot will charge a $19.99 monthly fee for Payment Card Industry (PCI) non-compliance if you do not keep your business compliant
Payment Depot has a wide selection of card readers available, including mobile and countertop solutions from popular brands like Clover, Poynt, and SwipeSimple. Those hardware items have quote-based pricing.
Mobile Card Reader | Smart Terminals | POS Hardware |
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Swipe Simple B250 | Clover and Dejavoo | Clover |
- Interchange-plus pricing: Interchange-plus pricing, as opposed to flat-rate processing fees, can often result in long-term savings for your business. Call Payment Depot to get a custom processing rate quote; this allows you to negotiate good rates for your business.
- High-quality virtual terminal: This virtual terminal can handle high-volume businesses and accept both in-person and online card payments (plus card-not-present transactions and digital wallets). You can use the virtual terminal as long as you have a subscription with Payment Depot, and you’ll get access to your funds within 24 to 48 hours when using it.
- Business funding: Users can apply for business funding via Payment Depot. Certain requirements, such as minimum FICO scores and monthly revenues, will need to be met.
Chase Merchant Services: Best Direct Processor
Pros
- Same-day funding for Chase Business Checking customers
- Negotiable rates
- Leverages all Chase network data to offer business insights
Cons
- Some plans require long-term contracts
- Not all pricing disclosed on website
- Best value for Chase banking customers
Overview
Who should use it:
Chase Payment Solutions is suitable for businesses that have existing accounts with Chase, prefer some negotiating power with rates, or want strong business analytics tools to go along with their merchant services.
Why we like it:
Chase Payment Solutions (formerly Chase Merchant Services) offers merchant services for any business looking to work with a traditional bank, especially if your business accounts are with Chase. Chase Business Checking customers really get the best value from using Chase as a merchant service provider.
Having Chase as both the processor and receiving bank in transactions can provide speed and security by removing the intermediary. With a checking account, you can access Chase QuickAccept, a free mobile payments app that includes same-day deposits and dispute management.
Chase is one of the few direct processors that offer flat-rate fees for small businesses. Larger businesses can also negotiate competitive interchange-plus pricing like you’d find with Helcim.
- Monthly fee: $0
- Card-present transaction fee: 2.6% + 10 cents
- Card-not-present transaction fee: 3.5% +10 cents
- ACH processing fee:
- Real-time deposits: 1% (capped at $25), non reversible
- Same-day deposits: 1% (capped at $25), reversible
- Standard deposits (1 business day): $2.50 for the first 10 transactions, 15 cents for additional, reversible
- Contract length: Most plans are month-to-month
- Early termination fee: $0
- Chargeback fee: $25
- Card readers: From $49
Chase Smart Terminal* | Countertop Terminal | Mobile Terminal | Chase QuickAccept Mobile Card Reader* |
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$499 | $299 | $399 | $49 |
Wireless, Wi-Fi-enabled credit card terminal with digital and email receipts, transaction search, and more. | Ethernet or Wi-Fi connection with 24/7 support. Color screens with tipping functions and built-in receipt printers. | Same as the countertop terminal, but with a mobile battery that can power 450 transactions between charges. | Use the Chase Mobile app and optional card reader to accept swipe, chip, and contactless payments on the go. |
- Same-day deposits: Chase offers same-day deposits depending on the type of service you use—with no additional costs. Few other merchant services provide this turnaround speed.
- Customer insights: Chase software includes business analytics tools that monitor sales data, trends, customer information, and competition analysis. These insights provide actionable data you can use to zero in on high-potential business opportunities.
- Comprehensive support: You’ll get 24/7 live support, plus online guides and resources.
Stax: Best for Large-volume Businesses
Pros
- Membership model interchange-plus pricing
- User-friendly software
- Unique add-on tools
Cons
- Pricey software packages
- Lacks same-day funding options
- ACH payments and next-day funding with fee
Overview
Who should use it:
Businesses with enough volume to benefit from interchange-plus pricing; businesses that primarily collect payments through invoicing; businesses with recurring billing such as professional services.
Why we like it:
Stax (Formerly Fattmerchant) is a popular merchant service provider with dedicated solutions for small and large businesses, as well as SaaS platforms. It is particularly suited to large businesses due to its membership-based pricing with wholesale rates (and custom-quote pricing options) as well as level 2 and 3 credit card processing. This higher-level processing allows businesses with large sales volumes to lower their effective rate and keep more of their earnings.
With Stax, merchants also get robust invoicing and recurring billing tools such as secure card-on-file payments, advanced CRM, and white-label customer portals. It even offers short message service (SMS) text-to-pay solutions and robust reporting, which are also not common offerings.
- Monthly fee: From $99 (depends on processing volume and software packages)
- Card-present transaction fee: Interchange plus 8 cents
- Card-not-present transaction fee: Interchange plus 15 cents
- Contract length: Month-to-month, 30 days’ notice to cancel
- Early termination fee: $0
- Chargeback fee: $25
- Card readers: Custom quote
Stax hardware is custom-quoted. A selection of BBPOS mobile readers, Z terminals, and PAX terminals are available. We have previously been quoted $100 for mobile readers, $175 to $300 for Z terminals, and $500 to $650 for PAX models. These are available for purchase for a one-time fee, or through monthly fees with protection plans.
Mobile Card Reader | Smart Terminals | POS Hardware |
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Swipe Simple B250 | Clover and Dejavoo | Clover |
- Stax Pay: Stax Pay is an all-in-one business management platform with which you can accept multiple payment types and access other business tools, all on a single dashboard. With Stax Pay, you can take in-person card payments, digital wallet payments, mobile device payments, and online payments via several gateways. You can also create payment links and buttons for your websites.
- Surcharging: CardX by Stax is a surcharging solution that lets you keep 100% of every credit card sale—no more losing out on profits due to fees. Your customer can choose whether to pay via credit (in which case they pay the fee themselves) or debit card (meaning you will pay the fee yourself). In either case, legal compliance via the CardX system is automatic.
- Recurring billing: Stax Bill is an automated payments and subscription service with Stax. You can set up an automated recurring billing schedule for your customers, which saves your business lots of time and headaches. The self-service portal allows customers to register and then monitor their own subscriptions so that you don’t have to. The system can also accept payments—including different currencies—via multiple gateways. This is different from the Stax Pay recurring invoice feature, which sends customers automatic invoices (which may involve varying rather than predictable payment amounts) on a schedule.
QuickBooks: Best for QuickBooks Users
Pros
- Transparent, flat-rate pricing
- Invoicing and recurring billing tools, including ACH payment processing
- Seamless integration with QuickBooks accounting
Cons
- Only makes sense if you already use QuickBooks
- Limited hardware options
- Not ideal for high volume of card-present transactions or ecommerce payments
Overview
Who should use it:
Businesses already using QuickBooks, especially if they process more than $7,500 per month, and B2B businesses will find QuickBooks Payments a suitable merchant services option.
Why we like it:
If you already have a QuickBooks account, QuickBooks Payments can provide you with strong features and good rates. If you regularly process over $7,500 a month, you can apply for a discount of up to 40% on transactions. The other processors on our list that offer discounts usually do so at a higher volume.
QuickBooks, along with many others on this list, rank among the best B2B payment solutions. It has Level 2 processing, which gets you cheaper rates for B2B transactions. It also has invoicing tools and lets you designate multiple accounts for deposits.
- Monthly fee: $30 (for QuickBooks Online)
- Card-present transaction fee: 2.5%
- Invoice transaction fee: 2.99%
- Keyed-in transaction fee: 3.5%
- ACH transaction fee: 1%, $1 min
- Contract length: None
- Early termination fee: $0
- Chargeback fee: $25
- Card readers: From $49
QuickBooks Card Reader |
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$49; $79 with Power Stand |
Accept EMV chip, debit, credit, Apple Pay, and Google Pay payments. Connects wirelessly to phone or tablet via Bluetooth for the QuickBooks GoPayment app. Stays charged for up to a week. |
QuickBooks offers a single mobile card reader option that is compatible with QuickBooks’ GoPayment mobile app. Countertop pin pads were previously available through QuickBooks POS, but the QuickBooks POS product has been discontinued.
You can also accept payments directly through the QuickBooks Online accounting software by sending an invoice or manually keying in the payment. Learn more in our tutorial on how to enter credit card transactions in QuickBooks Online.
- Mobile app/virtual terminal: QuickBooks’ mobile app lets you accept payments in person, by keying in card details. You can also use a mobile card reader with your smartphone, so you can accept tap payments as well.
- Accounting software: QuickBooks is known for its robust accounting software and tools. The software includes features such as income and expense tracking based on classes and locations, industry-specific customization, data sharing for tax professionals and accountants, and an advisor network.
- Integrations: You’ll have access to lots of third-party integrations that increase functionality, such as Amazon, PayPal, Square, and Shopify. If you need integrations specifically for credit card processing, these are available for you as well.
U.S. Bank Merchant Services: Best for Same-day Funding
Pros
- Same-day funding
- Hardware rentals
- Surcharging and debit card optimization programs
Cons
- Limited user reviews
- Need to call for consultation on full feature set
Overview
Who should use it:
We recommend U.S. Bank Merchant Services for most business types including retail, restaurants, services, and mobile businesses that want same-day funding.
Why we like it:
U.S. Bank Merchant services offer a slew of useful features such as comprehensive sales reporting, 24/7 customer support plus a dedicated account manager, surcharging, and offline processing. Most importantly, it offers same-day funding and fraud protection. You’ll need to have an active U.S. Bank account if you want to access all of these features. Finally, this provider offers a free simple mobile POS system that lets you do business on the go.
- Mobile: $0
- Unlimited users
- Up to 100 products
- Starter: $29+ per month
- Unlimited users
- Up to 500 products
- Standard: $69+ per month
- One-time set-up fee of $99
- Unlimited users and products
- Good for retail shops and small restaurants
- Premium: $99+ per month
- One-time set-up fee of $99
- Unlimited users and products
- Good for large restaurants and multilocation businesses
- Processing fees:
- In-person transactions: 2.6% + 10 cents
- Keyed-in transactions: 3.5% + 15 cents
- Online transactions: 2.9% + 30 cents
Mobile card reader | Handheld POS terminal | POS Register |
---|---|---|
Pair with a smartphone to accept contactless payments | Accept card payments with high sales mobility | Full register system for restaurants and retail shops |
- Same-day funding: With the Everyday Funding service, you can get funds deposited into your account on the same day as the transaction. Few other merchant service providers offer this kind of quick funding. What’s more, this benefit is free for users with a U.S. Bank checking account.
- Surcharging and debit card optimization: Pay lower (or no) fees and keep more of your earnings with U.S. Bank’s surcharging features. Have your customers pay transaction fees instead of bearing the burden yourself, ultimately improving your bottom line. This is especially useful for small businesses that are still trying to find their footing in their industry.
- Fraud protection: Features and programs like Real Time Payments, Singlepoint, and IBM Trusteer Rapport offer you layers of protection against payment fraud—whether that’s check, cash, or online payments.
PayPal: Best for Occasional Sales
Pros
- Easy to use
- Trusted by customers
- Accept international and PayPal payments
Cons
- Account stability issues
- Monthly fee for virtual terminal
- Complex pricing
Overview
Who should use it:
PayPal is a recommended option for solopreneurs or hobbyists with low-volume and occasional sales, or an additional payment option for online stores.
Why we like it:
PayPal is a household name offering user-friendly payment processing for online, mobile, and in-store sales. PayPal offers competitive flat-rate fees and is quick and easy to sign up for. It also has discounted rates for nonprofit organizations.
Plus, adding PayPal as a payment option can increase online store conversions and reduce cart abandonment because shoppers don’t need to type in payment or shipping information. PayPal alone makes this distinction and is often used with other merchant accounts like those on our list.
Note that PayPal is not a traditional merchant account; this means business accounts can be flagged and frozen if the company deems anything suspicious, which is problematic for businesses relying on daily deposits.
- Monthly fee: $0 to $30
- Card-present transaction fee: 2.99% plus 49 cents
- Online transaction fee: 2.59% plus 49 cents
- PayPal Checkout transaction fee: 3.49% plus 49 cents
- QR code transaction fee: 2.29% plus 9 cents
- Contract length: Month-to-month
- Early termination fee: $0
- Chargeback fee: $20
- Card readers: $29 to $199
PayPal Card Reader | PayPal Terminal |
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$79 (first one $29) | $199 (model with built-in barcode scanner available for $239) |
Accept chip, PIN, and contactless payments. Connect to Zettle POS app via Bluetooth. Battery lasts eight hours or 100 transactions. Optional charging dock available. | Portable touch-screen POS pre-programmed with PayPal Zettle. Accept chip, PIN, contactless, and QR payments. Battery lasts 12 hours (four to six hours with intensive use).
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- Instant PayPal payouts: If you’re using a PayPal account, you’ll be credited your received funds instantly. You can also opt to pay a 1.5% fee for the same instant payout when using a linked bank account.
- Social selling: You can connect PayPal Business to social media sites like Facebook and Instagram for multichannel selling.
- International payments: PayPal lets you accept international payments, for an additional 1.5% processing fee.
- Fastlane Guest Checkout: Merchants can add a guest checkout option to their ecommerce sites. This allows online buyers to quickly make purchases without needing to create an account. PayPal customers need only submit a confirmation code in order for Fastlane to recognize them.
- Smart Receipts: PayPal digital receipts can now include personalized product offers and discounts to entice customers to make additional purchases. These additions are powered by artificial intelligence and are based on the buyer’s purchase history.
Stripe: Best for Online Payments
Pros
- Powerful, user-friendly developer tools, and application programming interfaces (APIs)
- Robust security, reporting, and account management tools
- Supports more than 35 countries and 135 currencies
Cons
- Lacks out-of-the-box mobile functionality
- Best for those with software development skills or resources
- Add-on fees for invoicing and recurring billing
Overview
Who should use it:
Businesses that want strong developer tools and customizability (via API) will find these things with Stripe. Businesses that process international sales will also appreciate Stripe’s payment versatility and online sales functionality.
Why we like it:
Stripe is a payment processor with sophisticated software and APIs ideal for online businesses. Stripe’s pre-built integrations make it easy to connect a Stripe checkout to almost any website or software. Besides PayPal, it’s the easiest to integrate for online sales.
One of the best features of Stripe is the number of different payment types it can work with. Accept ACH and e-check payments, WeChat, Klarna, Apple Pay, Google Pay, cross-border payments, and more.
With Stripe, you can configure subscriptions, recurring billing, or one-time payments for different checkout needs, such as per-seat pricing, metered billing, coupons, free trials, prorates, overages, and usage-based fees. You can also update expired or renewed customer card information automatically.
Though custom solutions are what Stripe is best at, it also offers several no-code options like payment links, adding a pricing table to your website, and setting up a basic checkout page.
- Monthly fee: $0
- Card-present transaction fee: 2.7% + 5 cents
- Card-not-present transaction fee: 2.9% + 30 cents
- Keyed-in transaction fee: 3.4% plus 30 cents
- ACH: 0.8%, $5 cap
- Invoicing: + 0.4% to 0.5%
- Recurring Billing: + 0.5% to 0.8%
- 1% additional fee for international cards and currency conversion
- Contract length: None, pay-as-you-go billing
- Early termination fee: $0
- Chargeback fee: $15 per lost dispute
- Chargeback protection and coverage available for 0.4% transaction fee
- Card readers: $59 to $349
You will need to sign up for a Stripe merchant account to access the purchase hardware options within the merchant account dashboard.
Stripe Reader M2 | BBPOS WisePOS E | Stripe Reader S700 |
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$59 | $249 | $349 |
Accept EMV chip, contactless, and mobile wallet payments. This battery-powered reader connects to your POS app via Bluetooth. | Android-based POS with a 5-inch display including PIN functionality. Connects to a third-party POS app via Wi-Fi. | Android-based smart reader for mobile and countertop use. Customize or use pre-built elements. Connects via WiFi or Ethernet. |
- Multicurrency processing: Customers can pay you in over 135 currencies, making Stripe a great platform for online and international sales.
- Stripe invoicing: Create custom invoices with elements like brand logos and colors. You can also have the system generate numbers for each invoice for easier tracking and reconciliation, plus add Stripe-hosted payment links to invoices.
- Fraud prevention tools: To detect payment fraud, Stripe uses both machine learning and an existing and perpetually growing network of data points and models. This information helps Stripe’s machine learning infrastructure and algorithms detect emerging fraud patterns and see which payments are high-risk. You can also set the system to automatically block these payments while keeping legitimate customers on a whitelist.
PaymentCloud: Best Approval Odds
Pros
- Excellent customer support
- Customized high-risk payment gateway
- Crypto and zero-cost processing available for low-risk businesses
Cons
- Pricing not disclosed
- Longer application and approval process
- Charges extra for virtual terminal and payment gateway
Overview
Who should use it:
High-risk businesses (tobacco, vape shops, liquor, firearms) that need the best possible odds for payment processing approval will find PaymentCloud a suitable solution.
Why we like it:
PaymentCloud is a popular merchant service provider that specializes in high-risk accounts. The company has relationships with more than 10 banks and a step-by-step application process to help you submit all the documents needed to get approved by one of their partner banks.
PaymentCloud does offer traditional merchant services in addition to high-risk account services. However, high-risk payment processing is what PaymentCloud is best known for. Many other merchant service providers refer high-risk businesses to PaymentCloud because of its excellent reputation in getting businesses approved.
- Monthly fee: $10 to $45
- Typical low-risk transaction fees: 2% to 3.1%
- Typical mid-risk transaction fees: 2.25% to 3.4%
- Typical high-risk transaction fees: 2.7% to 4.3%
- Payment gateway monthly fee: $15
- One-time virtual terminal fee: $15 to $45
- Contract length: None, month-to-month options available
- Early termination fees: Waived
- Chargeback fees: $25 to $45
- Cross-border fees: 1% to 2%
- 1000+ integrations available, no API required
Monthly account fees depend on the business type. Flat-rate and interchange rates are available depending on your business needs and discounts are available for high-volume businesses.
PaymentCloud has many options for card readers and POS systems. However, PaymentCloud does not disclose specific models or pricing on its site. You’ll need to contact the provider for a specific quote.
If you’re migrating over to PaymentCloud from a different processor, PaymentCloud will reprogram your existing equipment if possible.
- Medium- and high-risk business support: PaymentCloud will support business types that other services won’t come near. This software will work with businesses selling firearms, tobacco products, bail bonds, and more.
- Chargeback protection: In line with its high-risk business support, PaymentCloud gives you strong chargeback protection. You’ll get alerts and tracking functions for disputes, as well as prevention analysis tools.
How to Choose the Best Merchant Services
Some merchant services are more compatible with certain business types than others. So when choosing the best payment processor, it’s crucial that you are already familiar with the types of services that your business needs. Once you have that down, follow these guidelines:
Step 1: Look for Your Preferred Payment Methods
Merchant services offer a wide range of payment methods for both card-present and card-not-present transactions. You will likely be looking for a combination of both so narrow down your options with providers that can offer the cheapest rates based on your processing volume.
- Card-present methods are generally done through swiped, EMV chip, contactless, and digital/mobile wallet payments. Debit cards and prepaid cards such as gift cards, EBT, and FSA are also card-present payments.
- Card-not-present payment methods are primarily remote transactions that not only refer to credit card payments, but other forms of payments as well such as ACH, e-checks, and bank transfers.
Step 2: Compare Essential Payment Processing Tools
Payment processing tools refer to a merchant service provider’s set of features used to process card-present and card-not-present payment methods.
- Invoicing and recurring billing
- Virtual terminal
- Online payment gateway (website checkouts, shareable payment links)
- Stored card payments
- Level 2 and 3 data processing for B2Bs
- Cross border payments
- Nonprofit payment processing
Ideally, you will find a provider that offers most of these features for free, otherwise, you should look for one that matches your business needs without charging additional monthly costs.
Check out our recommendations for:
Step 3: Match Your Required Business Management Integrations
Some merchant services come with business management integrations. You will find providers with built-in integrations that will allow you to use these features for free, while others come with an additional monthly cost.
Examples:
- QuickBooks and Wave are primarily paid accounting and bookkeeping platforms with built-in payment processing.
- Square offers free and paid POS software with built-in payment processing features. It also provides add-on business management tools such as loyalty and rewards management, marketing tools, and employee management.
- iATS is a nonprofit management platform with its own credit card processing service.
- Clover is a POS software and hardware provider with a range of business management features that can be programmed to work with a number of merchant service providers.
Note that all of the merchant services providers in our list have direct integrations with third-party business management software.
Step 4: Check for Essential Card Reader Features
Card readers can be mobile paired with a mobile payment app, wireless standalone with an integrated POS app, or built-in to your countertop POS hardware. Depending on your business model, you may need one or all of these card readers.
Whatever card reader type you need, check for the following features before deciding on an option:
- At least a one-year warranty on the hardware
- Your preferred card-present payment methods (swipe, EMV chip, contactless, digital payments)
- Compatibility with mobile device operating systems for mobile credit card readers with mobile apps.
- Payment/POS app that’s integrated into your main POS system for mobile and wireless card readers.
- Ability to process credit card payments without an internet connection.
- Great user reviews to ensure reliability (minimal failed transactions) and long battery life for processing payments on the go.
- Security features (tokenization, encryption) to protect your transactions
Step 5: Identify Your Ideal Merchant Account Features
In general, merchant services differ in pricing structure, setup and application, contract terms, security measures, funding speed, and customer service. For this category, choosing the right merchant account features will depend on your business size.
- Small businesses and startups benefit more from merchant services that do not require an application process, simple setup, pay-as-you-go terms, zero monthly account fees, and flat payment processing rates.
- Small, established businesses as well as mid-sized, and fast-growing businesses will get better rates with their higher sales volume. Instead of flat payment processing fees, they can look for merchant services that offer interchange plus transaction rates. Pay-as-you-go contract terms are still ideal, but these types of merchants can easily qualify for a more secure traditional merchant account that requires an application process.
- Mid-sized to large businesses that process higher transaction volumes can get even better rates with a merchant service provider that offers monthly fees plus wholesale transaction rates (with no percentage markups).
- High-risk payment processing requires a special category of merchant services that can help businesses that fall under the category of “high risk” get approved for a merchant account.
- Funding speed is ideally business day with the option for same-day deposits for a fee. Merchant services for small businesses usually charge for batch fees while some that cater to large-volume businesses do not charge extra.
- Payment security, such as various tokenization and encryption technology, should be one of your non-negotiable requirements for a merchant account service. Fraud detection tools can be simple (best for small businesses and startups) or customizable (ideal for large-volume businesses). PCI security is also essential but look for a provider that will assist you with compliance.
- Customer support should include the availability of live assistance (phone, email, chat) and offline resources such as a knowledge base and video guides. Additionally, you should also know how much assistance you would need and get during the merchant application process, migration, and setting up of your merchant account.
Applying for Your Merchant Account
Choosing the merchant services you want for your business is just the beginning. Depending on the solution you choose, you’ll need to submit an application.
Our guide walks you through the application process, the documents you’ll need, red flags to watch out for, and tips for negotiating lower rates.
How We Evaluated the Best Merchant Services
We evaluated dozens of payment processors across 22 data points divided into the categories of pricing and contract, payment types, account features, and expert score. We also considered our personal experience using each processor, feedback from small business owners, and our own interactions with customer support for the different systems.
We only considered processors that offer flat-rate, subscription, or interchange-plus pricing and excluded processors that only offer tiered pricing models because they can be misleading for small businesses.
Click through the categories below for our full criteria:
30% of Overall Score
Transaction fees weighed heavily here. We also awarded points for month-to-month or pay-as-you-go billing and no monthly, cancellation, or chargeback fees. and only included providers that offer competitive and predictable flat-rate or interchange-plus pricing. We also awarded points to processors that offer volume discounts.
30% of Overall Score
The best merchant accounts can accept various payment types, including POS and card-present transactions, mobile payments, contactless payments, ecommerce transactions, and ACH and e-check payments, and offer free virtual terminal and invoicing solutions for phone orders, recurring billing, and card-on-file payments.
20% of Overall Score
20% of Overall Score
Best Merchant Services Frequently Asked Questions (FAQs)
Anything under 2.5% is good and under 3% is average.
Small businesses typically pay between 1.9% to 3.75% per transaction, with online and card-not present transactions being more expensive.
550 is the minimum credit score you’ll likely need for a dedicated merchant account. Aggregate payment processors (like Square or PayPal) don’t require a credit check. However, aggregate processors aren’t compatible with all businesses. It’s possible to get a merchant account with bad credit, you just may need to work with a dedicated high-risk processor.
Square is the best option for many businesses. Helcim offers low pricing, and PaymentCloud is excellent if you’re having trouble getting approved.
No. In some cases, you can pass along the fees to your customers through surcharging, cash discounting, or convenience fees, but there is no way to accept credit or debit payments without a fee.
Bottom Line
Choosing the right merchant account provider can save your business lots of money in fees each month. The best payment processors are also easy to use, offer good value with business solutions, and integrate with popular software. Plus, merchant accounts should be transparent and reliable.
Visit Square, our top pick, to see if it’s a good fit for your business.