Merchant services allow businesses to accept credit and debit card payments. Many merchant service providers also offer payment processing tools such as payment gateways, virtual terminals, point-of-sale (POS) systems, and card-reading hardware. The best solutions offer competitive rates, month-to-month contracts with no cancellation fees, and an array of flexible payment solutions for in-person and online transactions.
The best merchant services for small businesses are:
- Square: Best all-purpose merchant service account for small businesses and individuals
- Payment Depot: Cheapest credit card processor
- Fattmerchant: Best for growing businesses with invoicing or recurring billing
- Chase Merchant Services: Best traditional merchant account offered through a bank
- PayPal: Best for occasional sales, online checkout, and nonprofits
- Stripe: Best for online startups and B2B companies
- Helcim: Best for brick and mortar retailers
- PaymentCloud: Best high-risk merchant account
Which Merchant Service Provider Is Right for You?
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How We Evaluated Merchant Services
We considered dozens of payment processors, narrowing our list down to eight solutions to evaluate in-depth. We evaluated each solution based on pricing and contract terms, types of payments each solution can handle, accounts features including deposit speed and customer support hours, and our personal evaluation of each processor.
Click through the tabs below for our full evaluation criteria:
25% of Overall Score
We awarded points to merchant account providers that don’t require contracts and offer month-to-month or pay-as-you-go billing. We also prioritized providers that don’t charge hefty monthly fees, cancellation fees, or chargeback fees. We also only included providers that offer competitive and predictable flat-rate or interchange-plus pricing.
25% of Overall Score
The best merchant accounts can accept various payment types—including POS and card-present transactions, mobile payments, contactless payments, ecommerce transactions, ACH and e-check payments—and offer free virtual terminal and invoicing solutions for phone orders, recurring billing, and card-on-file payments.
25% of Overall Score
We prioritized merchant accounts with free 24/7 phone and email support. Small businesses also need fast deposits, so payment processors offering free same or next-day funding earned bonus points. Finally, we considered whether each system has affordable and flexible hardware options and offers any business management tools, like dispute and chargeback management, reporting, or customer management.
25% of Overall Score
We judged each system based on its overall pricing and advertising transparency, ease of use (including account stability), popularity, and reputation among business owners and sites like Better Business Bureau. Finally, we considered how well each system works with other popular small business software, like accounting, point-of-sale, and ecommerce solutions.
Square
What We Like
- Transparent and predictable pricing
- Free, user-friendly software
- No application, contract, monthly fees, or minimum requirements
What's Missing
- Not suitable for high-risk businesses
- Account stability issues
- No ACH payment processing
Square Pricing
- Monthly fee: $0
- 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: None, pay-as-you-go billing
- Early termination fee: $0
- Chargeback fee: None, plus up to $250/month for chargeback protection
- Card reader: $49
Square is an all-in-one merchant services provider, meaning it can process payments in-store, via mobile, online, virtual terminal, and even invoice payments. Square is the simplest merchant account provider to get started with, is free to use except for transaction fees, and offers the best value for new and small businesses. Besides being the best all-purpose merchant account, we also recommend Square as the best free merchant account, and best for small restaurants.
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. The real benefit of choosing Square as your merchant service provider is Square’s full suite of business management tools included in your free Square POS software, including customer management, online store, virtual terminal, invoicing software, reporting, and more.
Payment Depot
What We Like
- Low-cost membership pricing
- No contract or cancellation fee
- 24/7 customer support
What's Missing
- Not compatible with high-risk businesses, including CBD
- Best for businesses processing more than $10,000 monthly
- Application required
Payment Depot Pricing
- Monthly fee: $49–$199
- Transaction fee: Interchange plus 5–15 cents depending on plan
- Contract length: Month-to-month
- Early termination fee: $0
- Chargeback fee: Not disclosed
- Card reader: $99
Payment Depot is a merchant service provider with a membership pricing model that offers payment processing at extremely competitive rates. One membership with Payment Depot includes interchange-plus pricing for card-present, online, virtual terminal, and mobile payments.
Unlike most credit card processing companies, Payment Depot makes no distinction between online and in-person payments. The pricing is the same, and both kinds of payments are included with every membership.
This flexible model with affordable pricing makes Payment Depot one of the cheapest credit card processors for small established businesses, including retailers, restaurants, salons, auto shops, medical practices, and business-to-business (B2B) companies.
Fattmerchant
What We Like
- Transparent pricing
- Omni software and integrated payments
- Easy to use
What's Missing
- High monthly fee for most businesses
- Expensive software subscriptions
- Extra costs for virtual terminal
Fattmerchant Pricing
- Monthly fee: $99–$199
- Card-present transaction fee: Interchange plus 8 cents
- Card-not-present transaction fee: Interchange plus 15 cents
- Contract length: Month-to-month, 30 days cancellation
- Early termination fee: $0
- Chargeback fee: Undisclosed
- Card readers: $100
Fattmerchant is a merchant service provider with a subscription or membership model where businesses pay a higher monthly fee and low transaction fees. While this model is most economical for growing businesses processing more than $15,000 monthly, Fattmerchant also has a pay-as-you-go model for businesses processing under $80,000 annually. This model does not have a monthly fee and charges a flat 2.9% transaction fee.
Fattmerchant also offers user-friendly Omni software that includes invoicing, recurring payment tools, ACH processing, Text2Pay, and reporting features. Omni software and the membership pricing model make Fattmerchant an ideal option for established or higher-volume businesses that process payments via invoice or subscriptions, for example, healthcare and wellness companies, field services like construction, and professional services such as lawyers offices.
Chase Merchant Services
What We Like
- Direct processor
- Negotiable rates
- Same-day funding for Chase business checking customers
What's Missing
- Some plans require long-term contracts
- Not all pricing disclosed on the website
Chase Merchant Services Pricing
- Monthly fee: $0
- Card-present transaction fee: 2.6% + 10 cents
- Card-not-present transaction fee: 3.5% + 10 cents
- Contract length: Most plans are Month-to-month
- Early termination fee: $0
- Chargeback fee: $25
- Card readers: $49.95
Chase Merchant Services offers merchant services that are a great alternative for any business looking to work with a traditional bank, especially if your business accounts are with Chase. Having Chase as both the processor and receiving bank in transactions can provide speed and security by removing the intermediary.
Chase Business Checking customers really get the best value from using Chase as a merchant service provider. With a checking account, you can access Chase QuickAccept, a free mobile payments app that includes same-day deposits and dispute management. No application is necessary.
However, Chase is one of the largest processors in the US, and any business can apply to use its merchant services. 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.
PayPal
What We Like
- Easy to use
- Predictable, transparent pricing
- Accept international and PayPal payments
What's Missing
- Not suited for high-risk or high-volume businesses
- Account stability issues
- Monthly fee for virtual terminal
PayPal Pricing
- Monthly fee: $0–$30
- Card-present transaction fee: 2.7%
- Card-not-present transaction fee: 3.5% + 15 cents
- Contract length: None, pay-as-you-go billing
- Early termination fee: $0
- Chargeback fee: $20
- Card readers: $24.99
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.
However, 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. So, PayPal is a top-recommended option for low-volume and occasional sales or an additional payment option for online stores.
Stripe
What We Like
- Grows with your business
- Powerful, user-friendly developer tools and APIs
- Supports over 35 countries and 135 currencies
What's Missing
- Technical skills required to implement and maintain
- Not suitable for high-risk businesses
- Account stability issues
Stripe Pricing
- Monthly fee: $0
- Card-present transaction fee: 2.7% + 5 cents
- Online transaction fee: 2.9% + 30 cents
- Contract length: None, pay-as-you-go billing
- Early termination fee: $0
- Chargeback fee: $15 per lost dispute
- Card readers: $59
Stripe is a payment processor with sophisticated software and APIs ideal for online businesses and apps that want to create a custom checkout solution. Stripe’s pre-built integrations make it easy to connect a Stripe checkout to almost any website or software.
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, and more. Configure subscriptions, recurring billing, or one-time payments for different checkout needs (like per-seat pricing, metered billing, coupons, free trials, pro-rates, overages, and usage-based fees). And, automatically update expired or renewed customer card information.
Stripe is an industry-leading payment solution used by startups and Fortune 500 companies. While it has competitive pricing for businesses of all sizes, you’ll get the most value out of Stripe if you have developer resources to configure and maintain a custom checkout.
Helcim
What We Like
- No contracts or early termination fees
- Free POS, invoicing, and online store software
- International payment processing
What's Missing
- Limited third-party integrations
- Not suitable for high-risk businesses
Helcim Pricing
- Monthly fee: $20
- Card-present transaction fee: Interchange plus 0.3% + 8 cents*
- Card-not-present transaction fee: Interchange plus 0.5% + 25 cents*
- Contract length: None, pay-as-you-go billing
- Early termination fee: $0
- Chargeback fee: $15 per lost dispute
- Card readers: $199
*Starting rates. Volume discounts are automatically applied to businesses processing over $25,000 monthly. Rates as low as interchange plus 0.1% + 5 cents available.
Helcim is an all-in-one merchant account provider with free sophisticated sales solutions, including a fully-hosted online store, invoicing software, POS app, a mobile payment app, basic inventory tracking, hosted payment pages, and more.
Competitive interchange-plus pricing, along with ecommerce tools, makes Helcim a great choice for retail businesses, especially those that want to sell online.
Normally, we don’t recommend merchant accounts with monthly fees to smaller or new businesses. However, with Helcim, if you don’t process payments, your monthly fee is automatically waived.
PaymentCloud
What We Like
- Excellent high-risk placements
- Excellent customer support
What's Missing
- Supports limited CBD products
- Pricing not disclosed
PaymentCloud Pricing
PaymentCloud does not have any publicly disclosed pricing, which is common for high-risk merchant account providers. The rates you receive will depend on your individual business and what PaymentCloud can negotiate with one of its partner banks. However, there are no application, setup, or annual fees.
As a popular merchant service provider, PaymentCloud specializes in high-risk accounts. If you are a high-risk business, for the type of products or services you sell or because of poor credit, PaymentCloud could be a good fit, even if other merchant account providers have turned you down.
Offering a “hard-to-place” program, PaymentCloud includes relationships with over 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 accounts. However, high-risk payment processing is what PaymentCloud is best known for. In fact, many other merchant service providers refer high-risk businesses to PaymentCloud because of its excellent reputation in getting businesses approved.
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.
If you’re launching a new venture or have sales volumes of less than $20,000 per month, you can’t go wrong with Square. Its all-in-one simplicity, low flat-rates, and free POS business management tools make it practically unbeatable for most small business needs. Visit Square to create a free account.
You May Also Like…
- Learn what merchant services are and how they work
- Learn how credit card processing fees work and what to expect
- Find the cheapest credit card processor for your business
- Learn how to accept credit cards online
Terry Martinson
I own a Bed & Breakfast and am looking for a more reasonably priced card processor than our current provider. Typically our transactions range from $125 for a room deposit up to $1,000+ for a completed reservation transaction. We need to be able to process on-line payments, in person, and keyed-in for telephone reservations. Do you have any recommendations where to start?
Laura Handrick
Hi Terry,
It sounds like you’re looking for a point-of-sale or POS system. Check out these articles as well to read about the best providers and get insight on what kind of businesses they’re best for.
POS System vs Cash Register
Online Credit Card Processing
Best of luck to you!
Laura, Staff Writer
LAURA DL
Hi Krista,
We have a small business and doing business with Authorized.net (for ACH processing) and TSYS (for all major credit cards processing). Since we changed our identity from LLC to Inc. we are having some issues from TSYS. Now we are looking for another merchant company who can help us with our business. Please advise which is best merchant company you recommend for us. Thank you.
Krista Fabregas
Hi Laura,
I know that Cayan works with Authorize.net and they have some very competitive interchange-plus rates. You can find out more about Cayan and contact them from our article on how credit card service and fees work. Authorize.net is one of the leading payment gateways, so if Cayan isn’t the one for you, Authorize.net itself has it’s own merchant account program, plus most major merchant account services with it. You should have no problem finding another service. Hope this helps, good luck!
Cheers!
Krista
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Julia
working in merchant service company, I think I can get lower rate with better POS.
ajay Garg
need merchant account for processing credit cards
Crystalynn Shelton
Hi Ajay, I’m not quite sure what your question is. We’ve got some great options in our Best Merchant Services Provider article. Feel free to reach out if you do have any questions.
All the Best-
Crystalynn Shelton