Helcim is my top pick for the best merchant services provider because it offers transparent interchange-plus pricing, no monthly fee, automatic volume discounts, and tools for accepting in-person, online, invoice, and recurring payments.
The best merchant services provider should help your business accept payments securely, keep processing costs manageable, and get paid without locking you into unnecessary fees or long-term contracts. The right choice depends on how you sell, your monthly sales volume, average ticket size, payment types, hardware needs, and whether you need POS, invoicing, ecommerce, or recurring billing tools.
For this guide, I compared merchant services providers based on pricing, contract terms, payment types, funding speed, chargeback fees, hardware, POS tools, integrations, customer support, and overall value for small businesses.
Compare merchant services costs with our payment processing calculator
Use the calculator below before choosing a merchant services provider. The lowest published rate is not always the lowest total cost once you factor in monthly fees, online transactions, chargebacks, and average ticket size.
How I chose the best merchant services for small businesses
To evaluate the best merchant services, I fact-checked each provider to ensure that pricing and features were accurate. I then scored each one on 23 data points, prioritizing value for money and ease of use. See my full methodology below.
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Helcim: Best for lowest credit card processing fees
Methodology: How I evaluated the best free merchant services
In evaluating the best merchant services, I focused on finding providers with the widest range of payment processing features and the most reasonable pricing. I narrowed down my list to 34 traditional merchant service account providers and payment facilitators and scored each one against 23 data points divided into 4 categories of pricing and contract, payment types, account features, and expert score.
Methodology weights
Pricing & contract 30%
Payment types 30%
Account features 20%
Expert score 20%
I focused on transaction rates, pricing transparency, and contract flexibility. Providers score higher for month-to-month terms, no early termination fees, predictable flat-rate or interchange-plus pricing, and volume discounts.
I evaluated each provider’s support for in-person, mobile, contactless, and online payments, along with virtual terminal, invoicing, and recurring billing capabilities where available.
I assessed customer support availability, deposit speed, dispute management, reporting tools, and hardware flexibility, including rental and purchase options.
My expert score reflects ease of use, transparency, account stability, user feedback, and integration with common small business software such as POS, accounting, and ecommerce platforms.
Please note that my scores are based on the currently available features and information. This list will be regularly updated based on the latest technology and user demands to ensure that I provide you with the best information.
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How to choose the best merchant services for your business
Choosing the best merchant services provider starts with understanding how your business accepts payments, how much you process each month, and which pricing model fits your sales volume. A startup with low transaction volume may benefit from simple flat-rate pricing, while an established or high-volume business may save more with interchange-plus, membership, or custom pricing.
Use the tables below to narrow your options by business type and pricing model, then compare processing rates, monthly fees, hardware, funding speed, chargeback fees, contract terms, and integrations before choosing a provider.
Merchant services by pricing model
Merchant services providers use different pricing models, so the best option depends on your sales volume, average ticket size, and payment mix. A startup may benefit from simple flat-rate pricing, while an established retailer or high-volume business may save more with interchange-plus, membership, or custom pricing.
Pricing model
Best for
Providers to compare
Flat-rate pricing
Startups and low-volume sellers that want predictable fees
Square, PayPal, GoDaddy Payments
Interchange-plus pricing
Established businesses that want transparent processing costs
Helcim, Payment Depot
Membership pricing
High-volume businesses that can offset monthly fees with lower markups
Stax
Custom pricing
Larger or specialized businesses that can negotiate rates
Payment Depot, Chase Payment Solutions, U.S. Bank Merchant Services
High-risk processing
Businesses in harder-to-approve industries
PaymentCloud
The cheapest merchant services provider is not always the one with the lowest advertised rate. Compare the pricing model against your monthly sales volume, average transaction size, online sales, keyed-in payments, chargebacks, and monthly fees.
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Best merchant services by business type
The best merchant services provider for your business depends on how you sell, how much you process, and whether you need POS tools, ecommerce payments, bank-backed processing, or high-risk approval support.
Recognized checkout option and simple online payments
Use this table as a starting point, then compare each provider’s processing rates, monthly fees, hardware costs, chargeback fees, funding speed, and contract terms before choosing.
Step 1: Start with your sales volume and average ticket size
Estimate how much you process each month and your average transaction size. These two numbers help determine whether flat-rate, interchange-plus, membership, or custom pricing will likely cost less.
Low-volume businesses may prefer predictable flat-rate pricing. Higher-volume businesses should compare effective rates after monthly fees, per-transaction fees, and volume discounts.
Step 2: Choose a pricing model
Merchant services providers use different pricing models, and the cheapest option depends on how your business sells. Flat-rate pricing is easier to understand, while interchange-plus and membership pricing can be cheaper at higher volumes.
Compare flat-rate pricing, interchange-plus pricing, membership pricing, custom pricing, and high-risk processing before choosing a provider.
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Step 3: List your payment types
Make a list of every payment type your business accepts or plans to accept. This may include in-person card payments, online checkout, mobile wallets, invoices, recurring billing, ACH payments, keyed-in payments, subscriptions, and payment links.
Some providers are stronger for in-person POS payments, while others are better for ecommerce, recurring payments, or custom online checkout.
Step 4: Check hardware and POS needs
Decide whether you need mobile card readers, countertop terminals, POS registers, Tap to Pay, cash drawers, receipt printers, barcode scanners, or full POS systems.
If you already use a POS system, confirm whether the merchant services provider integrates with it or requires you to switch platforms.
Step 5: Compare online payment tools
For ecommerce or remote payments, check whether the provider offers payment links, hosted checkout pages, invoices, subscriptions, digital wallets, ACH, and buy now, pay later options.
Also review whether you need developer tools, a payment gateway, fraud prevention, or integrations with ecommerce platforms like Shopify, WooCommerce, BigCommerce, or GoDaddy.
Step 6: Review funding speed and chargeback fees
Funding speed affects cash flow, especially for small businesses with tight margins. Compare standard deposit timing, same-day funding, instant transfer fees, and weekend deposit availability.
Also check chargeback fees, dispute support, refund rules, and whether chargeback fees are refundable if you win a dispute.
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Step 7: Check integrations
Your merchant services provider should connect with the tools you already use. Common integrations include POS systems, ecommerce platforms, accounting software, invoicing tools, CRM systems, subscription billing, and inventory management software.
Good integrations reduce manual work and help keep payment, sales, inventory, and customer records accurate.
Step 8: Confirm contract terms and cancellation fees
Before applying, review the contract, cancellation policy, monthly minimums, PCI compliance fees, equipment leases, gateway fees, and any long-term agreement.
Avoid providers that make pricing hard to understand or require expensive cancellation terms unless the savings clearly justify the commitment.
Step 9: Test support and application requirements
Support matters because payment issues can affect revenue immediately. Check support hours, phone availability, live chat, onboarding help, dispute support, and hardware troubleshooting.
Also review the application process. Some providers approve businesses quickly, while traditional merchant accounts and high-risk processors may require business documents, bank statements, processing history, or underwriting review.
Merchant services vs merchant account vs payment processor
Merchant services, merchant accounts, payment processors, payment gateways, and POS payment providers are related, but they are not the same thing. Understanding the difference can help you compare providers more accurately.
Term
Meaning
Best example
Merchant services
Tools and services that let businesses accept card, online, invoice, ACH, and digital payments
Helcim, Square, Chase
Merchant account
A business account that temporarily holds card payment funds before settlement
Traditional processors and banks
Payment processor
Company that moves transaction data and funds between the customer, card network, bank, and business
Stripe, PayPal, Chase
Payment gateway
Software that securely accepts online payments
Stripe, Authorize.net, PayPal
POS payment provider
A processor bundled with point-of-sale software and hardware
Square, Clover, Toast
In everyday use, many people use these terms interchangeably. The main thing to remember is that merchant services is the broader category. A merchant account, payment processor, payment gateway, and POS payment provider are specific parts of how a business accepts and manages payments.
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How do I apply for a 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.
Frequently asked questions (FAQs)
Helcim is the best merchant services provider for established small businesses that want transparent interchange-plus pricing and no monthly fee. Square is better for startups that need simple setup and POS tools, while Stax and Payment Depot are better for higher-volume businesses.
Merchant services are the tools and financial services that let businesses accept credit cards, debit cards, online payments, digital wallets, ACH payments, invoices, and other customer payments.
Merchant services include the full set of payment tools a business uses to accept payments. A merchant account is the account that holds card payment funds before they are deposited into your business bank account.
The cheapest merchant services provider depends on your sales volume and average ticket size. Square is often affordable for new or low-volume businesses, while Helcim, Stax, or Payment Depot may be cheaper for established or higher-volume businesses.
Merchant services costs depend on transaction rates, monthly fees, chargeback fees, hardware, payment gateway fees, PCI compliance, and funding speed. In-person rates are usually lower than online or keyed-in payment rates.
Stripe is best for customizable online payments, while PayPal is best for businesses that want a familiar digital wallet checkout option. GoDaddy Payments is a strong fit for sellers already using GoDaddy ecommerce tools.
PaymentCloud is the best option in this guide for high-risk businesses because it specializes in underwriting and bank partnerships for industries that may have difficulty getting approved by standard processors.
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 Helcim, our top pick, to see if it’s a good fit for your business.
Agatha Aviso is a seasoned expert in retail, eCommerce, and order fulfillment, with a specialization in payments, POS systems, and eCommerce software. She has collaborated with startups and service-based entrepreneurs on content strategy, offering digital marketing expertise and guiding small business owners in launching their online storefronts.
Beyond consulting, Agatha applies her knowledge firsthand—building her own website as well as ecommerce sites for the platforms she reviews.
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