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Which payment processor should you choose for your business: Merchant One or Square?
Merchant One and Square are two of the best credit card processors out there, but which is better? Below, we compare these two payment processors side by side to help you determine which is best for your business.
| Merchant One | Square |
|---|---|---|
Monthly fee | $13.95 per month, plus possible early termination fees; PCI compliance costs are typically included | $0 (Free); $49 per location (Plus); $149 per location (Premium) |
Payment processing cost |
|
|
Ease of use (software) | Easy and intuitive | Easy and intuitive; industry-specific features available for restaurants, retailers and other businesses |
POS system (hardware) | Third-party hardware, including Clover products that can be used with other processors | Attractive and functional, proprietary hardware incompatible with other processors |
Customer service | 24/7 phone support, plus email and text-based support; dedicated account manager | Chat and email support; phone support 6 a.m.–6 p.m. PT Monday through Friday for the first 90 days on Free and ongoing with Plus; 24/7 phone support with Premium; Support Center, Seller Community and video resources available |
Merchant One is a good choice for businesses that:
Learn more in our comprehensive review of Merchant One.
The FD-130 credit card reader is one of several readers that Merchant One gives new merchants for free when they open a merchant account. (Source: National Bankcard)
Square is a good choice for businesses that:
Learn more in our complete review of Square.
Here’s how Merchant One and Square stack up on important criteria when choosing a payment processor.
Merchant One
Merchant One’s monthly fee is currently $13.95. While reasonable given its low processing fees, even this small fee can hinder startup businesses that have little revenue coming in.
Square
Square’s Free plan has no monthly subscription fee and includes plenty of functionality, including POS software, invoicing, a virtual terminal and online selling tools. Businesses that need more advanced features can upgrade to Plus for $49 per location per month or Premium for $149 per location per month.
Plus includes additional features such as staff management, loyalty tools, email and text marketing and advanced POS features. Premium adds more advanced tools, 24/7 phone support and Square’s lowest standard in-person processing rate. Square also offers separately priced services and add-ons, including payroll.
Merchant One
Merchant One has low interchange-plus pricing. This means there is a small upcharge on top of the interchange rate, which is set by and paid to each type of credit card provider (Visa, Mastercard, Discover, etc.).
Merchant One’s upcharges (the “plus” in interchange-plus) are as follows:
Many other credit card processors, including Square, include the interchange rate and their markup into one combined rate, which is generally higher than Merchant One’s interchange-plus.
Square
Square’s payment processing rates vary based on the transaction type and subscription plan your business has.
Merchant One
We found Merchant One’s back-end software is easy to use. It has clear labeling of sections and functions, allowing you to run reports, use the virtual terminal and add customer information.
A benefit of Merchant One is that it offers Clover POS systems, which is a highly user-friendly system. For more details on all the platform offers, check out our review of Clover.
Square
Square’s software is integrated with its POS system, so you have everything in one interface. We found the software intuitive and easy to navigate, requiring little to no training.
In addition, Square integrates with many popular e-commerce platforms, making it a suitable choice for businesses that want to set up an online store.
The Square interface is sleek and simple to navigate. (Source: Square)
Merchant One
Merchant One offers third-party POS system hardware, but especially touts its partnership with Clover. With Clover hardware, you’ll get:
Clover equipment is also compatible with multiple payment processors, so you can switch providers in the future without repurchasing equipment.
Square
Square’s POS system and equipment are just as attractive and functional as Clover’s. It includes payment processing features, such as a virtual terminal and reporting, along with other business tools.
However, Square’s POS hardware is not compatible with other payment processors, so if you switch processors in the future, you’ll need new hardware too.
Square offers a sleek customer-facing interface. Source: Square
Merchant One
Merchant One provides 24/7 phone support plus email and text-based support.
Most importantly, though, Merchant One typically gives each merchant a dedicated account manager. We like that each customer has a single point of contact to streamline their communication with the company, resolving problems and answering questions more quickly.
Square
Square offers chat and email support on all plans. Phone support varies by subscription: Free customers receive phone support Monday through Friday from 6 a.m. to 6 p.m. PT for the first 90 days, Plus customers receive phone support during those hours on an ongoing basis and Premium customers receive 24/7 phone support.
Square also provides online support resources, including its Support Center, Seller Community and video tutorials.
Due to its interchange-plus pricing, Merchant One is more cost-effective for high-volume businesses who process payments frequently.
Merchant One also offers a dedicated account rep that can provide a quick resolution to any issues, minimizing disruptions and downtime that may take a toll on a company’s bottom line.
The affordable pricing paired with the exceptional customer service is a great combination for established ventures in virtually any industry.
Startups and newer businesses, especially those in the retail or restaurant space, can get started quickly with Square. The online application is straightforward, and accounts are often approved instantly.
Square offers a Free plan with no monthly subscription fee, along with user-friendly POS hardware and industry-specific features for retail and restaurant businesses.
As their needs become more advanced, businesses can upgrade to Square’s Plus or Premium plan for additional features. This makes Square a scalable option for startups that want to keep their initial costs low.
Anna Baluch contributed to this article.
