BDC Hamburger Icon

MENU

Close
BDC Logo
Search Icon
ArrowFinance
Advertising Disclosure
Close
Advertising Disclosure

Business.com aims to help business owners make informed decisions to support and grow their companies. We research and recommend products and services suitable for various business types, investing thousands of hours each year in this process.

As a business, we need to generate revenue to sustain our content. We have financial relationships with some companies we cover, earning commissions when readers purchase from our partners or share information about their needs. These relationships do not dictate our advice and recommendations. Our editorial team independently evaluates and recommends products and services based on their research and expertise. Learn more about our process and partners here.

Updated Oct 08, 2024

The Best Merchant Account Services of 2024

Merchant account services like Merchant One will process your customers' credit card payments while assisting with PCI compliance.

author image
Written By: Jennifer DublinoSenior Writer & Expert on Business Operations
Verified CheckEditor Verified:
Verified Check
Editor Verified
Close
A business.com editor verified this analysis to ensure it meets our standards for accuracy, expertise and integrity.
Chad Brooks
Managing Editor & Expert on Business Ownership
Business.com earns commissions from some listed providers. Editorial Guidelines.

Gone are the days when businesses could get away with not accepting credit card payments. However, today, businesses need to do more than just accept credit cards, they need to be able to accept every payment type. This is why finding the right merchant services provider is critical for businesses. The best options not only allow you to accept a variety of payment types, but they also have transparent pricing, competitive rates and no lengthy contracts. With these factors in mind, we spent dozens of hours researching the top merchant account service providers and payment gateways to help you find the best options for your business. Check out our recommendations for the best merchant service providers for different business types below.

Sponsored Partners
Merchant One Merchant Services
Best for Flexible Pricing
Merchant One logo

855-794-1134

Visit Site
Links to Merchant One Merchant Services
  • Subscriptions $6.95/month
  • Processing from 0.29%
  • Free equipment
Clover Merchant Service
Best for POS
Clover logo

866-342-4017

Visit Site
Links to Clover Merchant Service
  • Subscriptions from $14.95/month
  • Processing from 2.3% + 10 cents
  • Equipment starting at $49
Paysafe
Best for Niche Businesses
Image related to the service.

844-427-0072

Visit Site
Links to Paysafe
  • Contact for a price quote
  • Contact for a rate quote
  • Free equipment
North Payments
Best for Fast Setup
North Payments logo
Visit Site
Links to North Payments
  • Contact for a price quote
  • Contact for a rate quote
  • Equipment starting at $9.95/month
Square Merchant Services
Best for Startups
Square logo
  • Free version available
  • Processing from 2.6% + 10 cents
  • Free equipment
Table Of Contents Icon

Table of Contents

Open row

At business.com, we’ve spent years advising entrepreneurs, creating actionable guides for obtaining funding and managing business finances, and comparing and contrasting leading software and services to identify the best financial tools for small and growing businesses. Our playbooks and explainers are packed with advice from real business lenders, accountants, credit card processing experts, tax advisers and other finance professionals.

To inform our financial software and service recommendations, we put ourselves in the shoes of business owners and test each product’s effectiveness while taking into account its cost. Every review, whether it be for a credit card processing solution or invoicing software, is infused with our guiding principles: accuracy and objectivity. Learn more about our editorial process.

Tip Bulb

How We Decided

To find the best merchant account services, we looked for payment processing vendors with transparent pricing, competitive rates, limited fees and fair contract terms. We considered how fast payments were processed, whether credit card readers were included or cost...

MoreMore

To find the best merchant account services, we looked for payment processing vendors with transparent pricing, competitive rates, limited fees and fair contract terms. We considered how fast payments were processed, whether credit card readers were included or cost extra, and if the provider also offered POS and e-commerce tools. We also compared integration and customer service options across vendors.

102

evaluated

33

researched

6

chosen

To find the best merchant account services, we looked for payment processing vendors with transparent pricing, competitive rates, limited fees and fair contract terms. We considered how fast payments were processed, whether credit card readers were included or cost extra, and if the provider also offered POS and e-commerce tools. We also compared integration and customer service options across vendors.

102

evaluated

33

researched

6

chosen

Compare Our Best Picks

BDC Ribbon
Our Top Picks for 2024
Merchant One Merchant Services
Clover Merchant Service
Paysafe
North Payments
Square Merchant Services
USBank
Rating (Out of 10)8.58.88.58.18.48.4
Best for

Flexible pricing

POS

Niche Businesses

Fast setup

Startups

Businesses on a Budget

Rate plans

Subscription plus flat rate

Subscription plus flat rate

Tiered

Interchange-plus, flat rate

Flat rate

Interchange-plus

Fees

Yes

Yes

No

Undisclosed

No

Varies

Contract length

3 years

Month to month

Month to Month

3 years

Month to month

Month to Month

Customer support

Yes

Yes

No

No

No

Yes

PCI compliance fee

No

Yes

No

Yes

No

No

Payout

Next business day

1-3 days

Same day

Next business day

2-3 business days

2-3 business days

Early termination fee

Sometimes

No

No

Yes

No

No

Review Link
Scroll Table

Our Reviews

Merchant One logo
Editor's Rating: 8.5/10

855-794-1134

Visit Site
Links to Merchant One

Why Merchant One is Best for Flexible Pricing

Merchant One, a reseller of Clover POS hardware, offers a comprehensive merchant account solution for businesses of all sizes. Merchant One’s pricing adapts to individual needs based on business size, industry, and credit history. With a high approval rate of 98%, we like that Merchant One accepts nearly all payment options and adjusts the pricing to reflect the risk profile. If your business becomes less risky by, for example, being in business for a longer period or raising its credit score, you can ask for a rate adjustment.

We were also impressed by their wide range of services, including complete POS systems with terminals and credit card readers and wireless options that connect to iOS or Android devices.

Merchant One interface

Merchant One’s user interface is easy to use and attractive. Source: Merchant One

Merchant One Costs

Monthly pricing

$6.95 a month, plus a $99 annual membership fee. Other monthly fees may apply.

Processing fees

  • In-person transactions: 0.29% – 1.55%.
  • Keyed-in transactions: 0.29% – 1.99%.

Hardware

Free POS hardware is available upon signup. Merchant One also resells Clover POS equipment.

Merchant One Advantages

  • Merchant One offers flexible pricing plans with competitive rates and often includes free hardware, making it a budget-friendly option for many businesses.
  • Compared to other processors, Merchant One’s subscription pricing can be more affordable, especially for businesses with predictable transaction volumes.
  • Merchant One consistently receives high praise on platforms like TrustPilot for its exceptional customer service, ensuring you receive the support you need.

Merchant One Disadvantages

  • As a reseller, Merchant One doesn’t manufacture its own hardware, potentially restricting your options and customization possibilities compared to providers with in-house hardware development.
  • Merchant One requires a three-year contract, which might not be ideal for businesses seeking more flexibility or unsure about their long-term processing needs.
  • Breaking the three-year contract incurs significant early termination fees, potentially making it difficult and expensive to switch providers if needed.

Merchant One User Scores

Trust Pilot: 4.8/5

“Very knowledgeable and friendly. Called me back to make sure everything was ok after she told me how to do a refund,” one user wrote.

Learn more about Merchant One in our complete review.

Clover logo
Editor's Rating: 8.8/10

866-342-4017

Visit Site
Links to Clover

Why Clover is Best for POS Hardware

When it comes to merchant accounts with seamless POS integration, Clover shines thanks to its diverse hardware options. We were particularly impressed with the Flex, a handheld terminal perfect for processing transactions tableside. For businesses needing a complete POS system, the Clover Station offers a user-friendly experience. And for simple, on-the-go payments, the Clover Go reader pairs effortlessly with your smartphone, eliminating the hassle of accepting tap-and-pay transactions. We were even more excited to see that newer Go readers offer invoicing capabilities, expanding their functionality beyond basic payments.

We were also impressed with Clover’s customer management and marketing tools. With Clover, you can create and manage customer profiles and email them personalized offers based on their purchase history. You can solicit customer feedback via the app. When customers agree to receive their purchase receipts by text, they automatically opt in to text message marketing, giving you a highly effective customer engagement tool. The software also supports gift cards.

Clover POS devices

Clover offers a popular lineup of POS products.  Source: Clover

Clover Costs

StarterStandardAdvanced
Full-service dining$150$195$290
Quick-service dining$90$130$175
Retail shops$60$130$175
Professional services$14.95$50$120
Personal services$50$90$130
Home and field services$14.95$49$50

Processing fees

Card-Not-PresentCard-Present
Starter5% + $0.10N/A
Standard5% + $0.102.6% + $0.10
Advanced5% + $0.102.3% + $0.10

Hardware

  • $49 mobile reader.
  • $599 handheld terminal.
  • $1,799 full-service register.

Clover Advantages

  • Clover offers a variety of plans tailored to your business type, giving you the freedom to choose the perfect fit.
  • Unlike some competitors, Clover’s subscription plans don’t charge extra per employee, keeping your costs predictable.
  • Clover builds all their own POS hardware, so you can get everything you need in one place.

Clover Disadvantages

  • While Clover’s pricing is flexible, high-volume businesses might find more cost-effective solutions elsewhere.
  • Clover’s POS devices work best with their own processing system, which could limit your options if you prefer another provider.
  • Unlike some competitors, Clover doesn’t offer a free trial of their software, making it harder to test before committing.

Clover User Scores

Trust Pilot: 3.6/5

“Clover POS is easy to use and has reasonable fees. I am glad I replaced another brand with Clover a few years ago,” one user wrote.

Learn more about Clover in our complete review.

Editor's Rating: 8.5/10

844-427-0072

Visit Site
Links to Paysafe

Why Paysafe is Best for Niche Businesses

Paysafe sets itself apart by catering to specific industries with specialized solutions. It offers tailored merchant account services for businesses in retail, hospitality, convenience stores, gas stations and direct marketing. But, we especially like its willingness to work with businesses in often-excluded industries like cryptocurrency, video gaming and forex, offering them access to reliable and secure payment processing. We think that flexibility and industry expertise make Paysafe a valuable option for businesses seeking a merchant account provider that understands their unique needs.

Paysafe e-commerce checkout form

Paysafe offers a secure e-commerce checkout form, among other tools. Source: Paysafe

Paysafe Costs

Paysafe uses a quote-based pricing model, meaning they provide customized rates based on your business needs. Contact them for a personalized quote.

Paysafe Advantages

  • Paysafe’s quote-based pricing model allows for negotiation, potentially leading to lower rates than the standard interchange-plus model offered by some competitors, especially for high-volume businesses.
  • Paysafe goes beyond basic processing by catering to specific industries, such as convenience stores, digital marketing, and even regulated online gambling. This focus allows them to offer tailored features and compliance expertise relevant to your unique business needs.
  • If you already use Paysafe’s prepaid cards or digital wallets, you can easily integrate credit card processing for a unified payment system, streamlining your operations and providing a consistent customer experience.

Paysafe Disadvantages

  • Compared to competitors with clear fee breakdowns, Paysafe’s quote-based pricing and lack of readily available pricing information online can make it difficult to assess overall costs and compare them to other options.
  • Setting up and using Paysafe might require more effort compared to user-friendly options like Square or Stripe, potentially leading to a steeper learning curve and increased setup time.
  • Finding clear and accessible pricing details on Paysafe’s website can be challenging, requiring you to contact them directly for a quote, which can be inconvenient and time-consuming.
North Payments logo
Editor's Rating: 8.1/10
Visit Site
Links to North Payments

Why North American Bancard is Best for Fast Setup

North American Bancard stands out for its streamlined approach to merchant accounts. We appreciated the smooth application process with quick approvals, making it easier for businesses to get started quickly. Additionally, they are willing to work with businesses in high-risk industries, expanding their accessibility. We like that North American Bancard also provides free equipment and offers next-day funding for deposited funds, improving businesses’ cash flow.

NA Bancard payments hub

Payments Hub’s virtual terminal allows you to manually input transactions. Source: North American Bancard

North American Bancard Costs

While North American Bancard doesn’t publicly disclose its specific rates, its pricing is tailored to individual businesses and takes factors like size and transaction volume into account. To get an accurate quote for your specific needs, contact them directly for a personalized consultation.

North American Bancard Advantages

  • North American Bancard stands out for its willingness to work with businesses in high-risk industries, making it a valuable option for those often excluded by other providers.
  • Their unique EDGE program offers customers a cash discount incentive, potentially reducing processing fees for businesses that primarily deal in cash transactions.
  • North American Bancard boasts a quick and easy application process, complete with free equipment, making it a convenient choice for businesses seeking a smooth onboarding experience.

North American Bancard Disadvantages

  • Unlike some competitors, North American Bancard doesn’t publicly disclose its processing rates, requiring you to contact them directly for a personalized quote.
  • Feature Gap: While North American Bancard offers a solid core service, their offering may lack some of the advanced features and integrations provided by competitors.
  • Potential Hidden Fees: Be aware of potential termination fees and other charges that might not be explicitly mentioned upfront.

Learn more about North American Bancard in our complete review.

Square logo
Editor's Rating: 8.4/10

Why Square is Best for Startups

As a merchant account provider, Square has impressed us with its accessibility and ease of use. Its free plan is ideal for low-volume businesses, allowing us to test their services risk-free. Additionally, the user-friendly interface makes it simple for anyone to start accepting credit cards quickly. We also appreciate the seamless integration with various business tools, streamlining operations and simplifying management. Finally, Square’s transparent pricing with clear fee breakdowns provides us with a clear understanding of our transaction costs. Overall, Square’s combination of affordability, ease of use, and powerful integrations makes it a strong contender for businesses seeking a reliable and user-friendly merchant account solution.

Square POS system

Square’s POS devices are well-known among small business owners for user-friendliness.  Source: Square

Square Costs

Processing Rates

Transaction TypeFee
Swiped or inserted chip cards, contactless payments2.6% + $0.10
Manually keyed-in payments, Card on File, Virtual Terminal3.5% + $0.15
Invoices (Free plan)3.3% + $0.30
Invoices (Plus plan)2.9% + $0.30

Hardware

  • Free Square Reader for magstripe upon signup.
  • $49 Square Reader for contactless and chip.
  • $149 Square Stand for contactless and chip
  • $299 Square Terminal
  • $799 Square Register

Square Advantages

  • Square’s user-friendly software and affordable POS hardware make it perfect for startups and businesses new to credit card processing. The accessible price point allows them to get started quickly and easily.
  • Square lets you accept all major payment methods, including swipes, dips, contactless options, and even digital gift cards. This ensures you can cater to your customers’ diverse preferences.
  • Square seamlessly integrates with popular e-commerce platforms and hundreds of business apps. This allows you to streamline your operations and manage your business more efficiently.

Square Disadvantages

  • While Square avoids monthly subscription fees, its per-transaction fees can add up quickly, especially for businesses with high transaction volume.
  • Square offers a variety of POS hardware options, but none are available for free.
  • Square’s free invoicing plan has limitations in terms of features and functionality. Upgrading to their Plus plan with advanced invoicing capabilities comes with an additional monthly fee.

Square User Scores

Trustpilot: 4.0/5

“Allows you to communicate, take payments as well as advertise your business. The low fees to transfer money between the website and your business banking is also a plus,” one user wrote.

Learn more about Square in our complete review.

USBank logo
Editor's Rating: 8.4/10

Why USBank is Best for Businesses on a Budget

We were impressed with USBank’s merchant account services, particularly for budget-conscious businesses. Its free rentals of essential POS hardware make it easy to get started without a large upfront investment. Additionally, the tiered pricing structure is clear and transparent, so there are no hidden fees to worry about. We were also particularly impressed with the same-day funding feature, which helps businesses access their processed transactions faster than some competitors, keeping cash flow smooth. Overall, USBank strikes a perfect balance between affordability and functionality, making them a great choice for businesses on a budget.

USBank dashboard

USBank’s useful dashboard provides an overview of your business. Source: USBank

USBank Costs

Processing Rates

Transaction TypeFee
Swipe, tap, insert2.6% + $0.10
Keyed-in transaction3.5% + $0.15
Online transactions2.9% + $0.30

Hardware

USBank offers flexibility in its merchant account setup. You can choose from free hardware rentals or opt for a paid monthly plan that includes POS equipment. These plans range from $15 to $99 per month, allowing you to find the option that best suits your budget and merchant account needs.

USBank Advantages

  • USBank offers competitive rates on their starter merchant account plans, making them a budget-friendly option for businesses getting started. Some plans even include free rentals of basic POS hardware, further reducing the initial investment.
  • Unlike some competitors, US Bank stands out with features like same-day funding for processed transactions. This allows businesses to access their funds quickly, improving cash flow and financial flexibility.
  • USBank offers bundled solutions with Talech POS systems, which can be conveniently combined with their processing services. This provides a one-stop shop for businesses seeking both hardware and processing solutions.

USBank Disadvantages

  • While USBank offers tiered plans, their structure might be less transparent than competitors who use a clear interchange-plus breakdown.
  • While the bundled solution with Talech POS is convenient, the overall user experience might depend heavily on the specific POS system you choose.
  • Compared to widely used processors, finding user reviews and feedback for USBank’s merchant account services might be more challenging.

What Are Merchant Services?

Merchant services enable businesses to accept electronic payments from customers. A merchant account is a type of bank account that allows you to accept payments from your customers using credit and debit cards. The credit card processing company sets it up for you and assigns you a merchant ID number. Once you start accepting credit card payments, the company holds your funds until settlement, when they are transferred to your business bank account.

What Are the Benefits of Merchant Services?

Merchant services offer a wide range of benefits to help businesses, especially when it comes to payments, customer experience, and improved security. Here are a few advantages to think about:

Increased sales

Merchant accounts act as a conduit for businesses that allow you to accept a variety of payment methods, including debit and credit cards. By accepting a wider variety of payment methods, businesses can attract more customers and increase their sales.

Customer experience

Most U.S. consumers now prefer to make their purchases using debit or credit cards. Merchant services also streamline the payment process, making payments easier and more convenient for customers.

Enhanced security

Many merchant service providers offer fraud prevention tools to protect businesses and their customers. In many cases, accepting credit or debit cards is safer than cash.

Data and analytics

Merchant services can provide businesses with data on customer spending habits, which can be used to improve marketing and sales strategies. Many of the options on our list can generate easily-digestible reports to assist with decision-making.

How Much Will Merchant Services Cost?

Cost is often a top factor when you’re looking for the right merchant account services for your business. If you process a lot of card payments each month, it can be expensive if you go with the wrong provider. There are three types of costs you need to investigate:

Processing Fees

Whether you accept credit card payments online or in person, you pay a small fee for every transaction, which is expressed as a percentage of the sale plus a few cents. However, providers calculate these costs differently, which makes it difficult to compare prices. To make an accurate comparison, you need to know the types of processing fees and pricing models.

Processing fees have three parts: the interchange rate, the card-brand fee and the processor’s markup.

  • The interchange rate: This is a non-negotiable cost set by the card brands (American Express, Discover, Mastercard and Visa), and every service provider pays the same amount. Each card brand has its own rate table with different interchange rates based on the type of card (credit or debit, regular or rewards, etc.), your industry, the size of the sales ticket and how the card is accepted (in person or online, using a chip card reader or swiper, etc.).
  • The card-brand fee: This is also a non-negotiable fee that the card networks charge; every processing service provider pays the same amount.
  • The processor’s markup: This portion of the fee is negotiable.

When selecting a merchant services provider, it’s crucial to understand the various pricing models and their implications for your business. Here’s a breakdown of the three most common models:

1. Interchange-Plus Pricing

Considered the most transparent model, it clearly shows the processor’s markup. Fees are calculated based on the interchange rate set by card networks and the processor’s markup.

2. Tiered Pricing

Tiered pricing bundles interchange fees, card-brand fees, and markups into tiers. Transactions are categorized into tiers (qualified, mid-qualified, non-qualified) with varying rates.

3. Flat-Rate Pricing

Flat-rate pricing consists of a single fixed percentage rate per transaction, often with no monthly fees. This structure is Ideal for small businesses with low transaction volumes.

Merchant Account Fees

In addition to the processing rates for each transaction, you’ll pay account maintenance fees if you’re working with a full-service merchant account provider or payment gateway service. These typically use the interchange-plus or tiered pricing models. Generally, providers that use the flat-rate processing model don’t charge account maintenance fees.

When you ask about account fees, most sales reps will tell you about the monthly fee, but there are a lot of complaints online about surprise fees on credit card processing statements. For this reason, it’s important to read the full contract (application, terms of service and program guide) to ensure you’re aware of every fee.

Here are some of the fees most merchant services providers charge. For a detailed list of fees to look for as you read processing contracts, see our guide to credit card processing fees.

  • Monthly fee: Most merchant service companies charge a monthly fee, sometimes called a statement fee, that covers the cost of preparing your monthly billing statement and providing customer support. This fee usually ranges from $5 to $15. Some providers may charge more if they roll other regular account fees into this charge.
  • Gateway fee: A payment gateway is necessary if you intend to accept credit cards online. Small business owners with an online shop need a gateway because it encrypts and securely transmits credit card data from your website to the processor. Pricing varies; some processors charge a monthly fee of around $10 for this service, some charge a per-transaction fee ranging from $0.10 to $0.25, and some charge both.
  • PCI compliance fee: If you work with a standard processor that gives you your own merchant account, you’re required to be PCI-compliant. That designation means you adhere to the Payment Card Industry (PCI) Data Security Standard, which was developed to help merchants prevent data theft and fraud. Most processors that charge this fee offer to help you complete the annual questionnaire that is required to demonstrate your compliance. Your rep may call or email to remind you to take the assessment each year, or the processor may note it on your statement. On average, this fee is $99 annually.
  • PCI noncompliance fee: Even if the processor doesn’t require you to pay an annual PCI compliance fee, it may charge you a monthly noncompliance fee if you fail to establish compliance by filling out the annual questionnaire. You can easily avoid this fee by staying up to date with your PCI responsibilities. This fee can be very high, ranging from $20 to $60 per month, as it is meant to discourage you from letting your PCI compliance lapse.
  • Chargeback fee: If a customer disputes a charge and requests their money back, the processor charges you this fee. Chargeback fees are usually $15 to $25. Chargebacks are more common when you accept credit cards online versus in person, because typical reasons for chargebacks include delivery failures, technical errors, fraud and customer dissatisfaction. Another common cause of chargebacks is if your store name is different from the name on your merchant account and your customer doesn’t recognize your merchant name on their credit card statement.
TipBottom line
Avoid merchant account providers that charge an application or setup fee. The best providers won’t hit you with these extra expenses.

Equipment Costs

If you accept credit cards in person, you need to purchase a card reader or terminal. Here are the three most popular options:

  • Mobile card readers: This is the cheapest option, as many providers give you a free swiper when you sign up for an account. If you want to purchase a mobile card reader that also accepts EMV chip cards, contactless cards and mobile payments, these cost less than $100.
  • Credit card terminals: This is the midrange option. These devices cost $150 to $600, depending on whether you choose a countertop or wireless unit. They have built-in keypads and receipt printers, and all new models can accept both chip cards and contactless payments.
  • POS systems: This may be the most expensive option, but cost will depend on the type of system you choose. Tablet POS systems are often the least expensive, and they work with mobile card readers.

The most important thing to know about processing hardware is to avoid leasing it, because you can’t cancel a leasing contract and, in most cases, you’ll pay much more over the long term than if you purchase it outright. It’s enough of a problem that the Federal Trade Commission cautions against it, noting that businesses that lease may pay thousands of dollars for equipment that costs just a few hundred dollars.

Person paying with a Clover POS system

Many businesses require POS equipment to process credit cards. Source: Clover

How to Choose a Merchant Service?

Choosing the right merchant service provider is an important decision for a small business. Here’s a step-by-step guide to help you make the best choice:

1. Assess your business needs

Before you dive in, make sure you have key metrics for your business on hand. Determine your transaction volume and average ticket size. Identify the types of payment methods you want to accept (credit cards, debit cards, mobile payments), and make sure that your current POS system is compatible with the merchant account providers on your research list.

Some providers also specialize in servicing certain industries. “Look for a partner familiar with the unique regulatory, compliance, and operational challenges of your sector,” said Nicole Carroll, the chief growth officer at Paysafe. “Seasoned providers often have pre-built solutions designed to address common issues, such as improving transaction success rates or enhancing fraud protection.”

2. Research and compare providers

Look for providers that offer the features and payment methods that you need for your business. Understand the pricing models (interchange-plus, tiered, flat-rate) and make sure you know exactly how much the merchant account service will cost you. Consider additional features like fraud prevention, chargeback management, and reporting tools. Ensure the provider is PCI DSS compliant to protect customer data, and inquire about their fraud prevention measures.

Scalability is also a crucial factor, according to Carroll. “Look for providers that offer automated payment systems, particularly for subscription models or recurring billing,” she said.

Scott Dylan, founder of NexaTech Ventures, also advises that businesses consider integration with existing systems, which becomes more important as your business scales up.

“When we acquired a high-end furniture company, we ensured our MSA seamlessly integrated with the existing software,” Dylan said. “The time saved on manual entry alone was invaluable.”

3. Evaluate customer support

Assess the provider’s reputation for customer service. Look for 24/7 support options and timely response times. It’s also a good idea to check out user-generated feedback on review sites such as Trustpilot.

“Your provider should understand your long-term vision and be able to support your growth,” added Carroll. “This means going beyond transaction processing to offer insights that enhance customer experience and help you innovate.”

Dylan seconded the importance of customer service.

“A case in point was a travel agency we revitalized, which experienced frequent downtime with its previous [merchant service account]” he said. “Switching to a provider that guaranteed 24/7 support was a game-changer.”

4. Test the software platform

User-friendliness and a shallow learning curve are important when you sign up for business services. Make sure that you avail yourself of any free trials, which allow you to test out the merchant service provider’s software interface. Other companies offer demos that give you a feel for how the software works.

5. Negotiate terms

Some aspects of the merchant account service fee are negotiable. Don’t hesitate to ask for a better deal on fees and contract terms. Be clear about your business needs and expectations, and obtain quotes from multiple providers.

“When we launched a chain of co-working spaces, we encountered confusing fee structures – something we could ill afford during our start-up phase,” said Dylan. “It’s essential to push for a breakdown of every cost involved: setup fees, monthly fees, transaction fees, and PCI compliance charges.”

What Are Some Features of a Merchant Service?

All merchant account services offer different features. Here are more tools that you should consider as you look for a merchant processor for your small business:

  • Scalability: As your business expands, you may want to accept credit cards online in addition to in-store and on the go, so look for a company that offers multiple ways to accept payments. You should also be able to add registers, or even locations, to your account.
  • POS integration: Real-time data synchronization between the POS and merchant service ensures accurate transaction processing and inventory management. Look for POS systems with built-in merchant services capabilities or those that offer easy integration with third-party providers.
  • Payment gateways: Prioritize payment gateways with robust security features to protect sensitive customer data. Ensure the payment gateway is compatible with your e-commerce platform or website. If you sell internationally, choose a gateway that supports multiple currencies and payment methods.
  • Loyalty programs: Utilize loyalty programs to build stronger relationships with customers and provide personalized offers.
  • Security: The credit card processing company providing your payment gateway and merchant account should comply with the PCI Data Security Standard. It should also help you become PCI-compliant.
  • Processing hardware: The services provider should offer card readers or terminals that are EMV- and NFC-capable so you can securely accept chip cards, contactless cards and mobile payments such as Apple Pay and Google Pay. It should also allow you to purchase the hardware upfront so you can avoid bad leasing contracts and the headaches that come with them.

Square mobile reader

Square offers some inexpensive processing tools, including this mobile reader. Source: Square. 

“When we acquired a high-end furniture company, we ensured our MSA seamlessly integrated with the existing software,” Dylan added.

  • Payouts: It’s important to consider how and when you receive your money after a sale. Most service providers offer next-day funding, taking one or two days to deposit your money into your business bank account, and some can do it even faster, offering same-day or instant funding for a fee. Some providers give you the option of having your money loaded onto a business debit card.
  • Customer support: The company’s customer service team should be readily accessible. The best providers offer 24/7 customer service so you can resolve issues no matter when you call.

“A case in point was a travel agency we revitalized, which experienced frequent downtime with its previous [merchant service account],” Dylan said. “Switching to a provider that guaranteed 24/7 support was a game-changer.”

  • Other benefits or service limitations: If there are certain features you need – for example, a virtual terminal so you can accept payments using a computer with internet access – make sure to look for them before selecting a processor. Also consider whether there are certain limitations, such as monthly processing limits or vendors that support only one acceptance method.

What Are Some Alternatives to Merchant Services?

Helcim

We are impressed that Helcim goes above and beyond with its comprehensive software, offering features like POS services, customer management, inventory management, and employee tracking. These capabilities, often reserved for higher-tier plans with other providers, make Helcim a versatile platform for businesses seeking a complete solution.

Sekure

Sekure operates as a merchant account broker, giving you the power to choose from multiple payment methods and tailor a plan that aligns perfectly with your budget and transaction volume. We appreciate Sekure’s guidance in navigating the merchant account landscape and finding a reliable provider that delivers personalized service.

Chase Payment Solutions

As a major bank and credit card issuer, we like that Chase boasts unparalleled insight into consumer spending habits. Businesses utilizing Chase Payment Solutions can leverage this vast data trove to effectively target potential customers. With this data, you can gain insights into demographics, spending patterns, and purchasing behavior to reach the right customers with the right message.This unique feature sets Chase apart and makes them our pick for businesses seeking data-driven insights.

Stripe

Online businesses will love Stripe’s user-friendly platform and seamless integration with popular e-commerce platforms like Shopify and Magento. Setting up online payments is a breeze, and the ability to customize our store and utilize robust security features makes Stripe a compelling choice. We like that you can easily connect Stripe with your existing e-commerce platform for a smooth checkout experience for your customers.

National Processing

National Processing stands out with its competitive interchange-plus rates and a rate-lock guarantee, ensuring our rates won’t increase during the contract. They also offer to match or beat competitor rates, demonstrating their commitment to affordability. We like that you can lock in your rates at the time of signup, providing peace of mind and predictability for your budgeting.

Flagship Merchant Services

Flagship Merchant Services offers month-to-month contracts with no cancellation fees, making them our pick for flexibility. This allows you to easily adjust your merchant account services as your business needs evolve. We appreciate that you can avoid long-term commitments and enjoy the freedom to adjust your services as needed without penalty. You can also exit your contract at any time without incurring additional charges, providing peace of mind and flexibility.

Finix

Finix is a game-changer for businesses experiencing rapid growth. Unlike one-size-fits-all solutions, Finix allows you to completely customize the payment experience. We love that you can build a system that perfectly aligns with our unique needs and seamlessly integrate it with existing tools. Finix is built to handle our growth and adapt alongside expanding business, allowing you to add new features and expand your payment capabilities as your business scales.

Finix open API

Finix’s open API allows you to build custom integrations. Source: Finix

Methodology

Selecting the best merchant account services requires a deep dive. Our team of financial pros and business operations specialists meticulously analyzed an initial pool of 102 providers. After a rigorous narrowing process during which we looked at a number of factors, including the rates, how easy the service was to use, how long it took for money to be transferred into bank accounts and the available support options, among others, we identified 33 contenders for further scrutiny.

These contenders were then assessed across 24 key criteria reflecting business owners’ priorities when choosing merchant account services. Using these criteria, we selected the six best picks.

We grouped our criteria into categories that were weighted based on the factors most important to business owners when choosing a merchant account service. We used the following to measure each service provider and select our best picks

  • Rates: (30%): Cost-effectiveness is paramount. We compared processing rates, transaction fees, and monthly account fees to pinpoint the most budget-friendly options.
  • Features (25%): We evaluated essential functionalities like recurring billing and reporting alongside advanced features like mobile app integration and compatibility with third-party business applications.
  • Ease of Use and Acceptance (25%): We leveraged demos and free trials to assess the user interface of each platform, ensuring an intuitive and hassle-free experience for you and your staff.  We also delved into user feedback and explored the merchant accounts’ acceptance rates for various business types.
  • Customer Service: (20%): Ensuring ongoing support is crucial. We evaluated the range of customer service options offered by each provider, including phone support availability across plans and the quality of self-service resources.

Through this comprehensive evaluation, we not only identified trustworthy merchant account services, but also determined how each platform best serves specific business needs. Our analysis considered processors that excel in certain areas or cater to particular company types, reflected in the “Best For” categories on this page. This ensures you can easily find the merchant account service that perfectly aligns with your unique business goals.

To learn more about our methodology, see our full editorial process.

Frequently Asked Questions About Merchant Services

A merchant account is a type of bank account that allows you to accept payments from your customers using credit and debit cards. The credit card processing company sets it up for you and assigns you a merchant ID number. Once you start accepting credit card payments, the company holds your funds until settlement, when they are transferred to your business bank account.

If you sign up for a processing account with a payment facilitator (PayFac) or aggregator like Square or PayPal, you don’t need your own merchant account. Instead, you sign up as a submerchant under the provider’s master merchant account.

The benefits of working with a PayFac are that it’s faster and easier to set up your account, service is provided on a pay-as-you-go basis, and there are usually no account maintenance fees. But there are some limitations. Most aggregators don’t work with high-risk merchants, so if your business is in a high-risk industry, you’ll need to get your own merchant account. PayFacs are also more risk-averse than full-service payment processors, which means that your funds could be held if something about a transaction raises a red flag.

There are also some advantages of having your own merchant account. You can often get lower rates and better customer service, and the likelihood of having your money held or your account frozen is lower. There are account maintenance fees, but if your processing volume is high enough, they’re offset by the lower transaction rates.

A payment gateway is the technology that creates a secure connection between your website or browser and the credit card processing company, encrypting payment data for each credit card transaction. Some merchant services companies have proprietary payment gateways, but most set you up with a third-party payment gateway, such as those from Authorize.net and NMI.

The advantage of setting up a payment gateway through your merchant account provider is that it reduces the likelihood of compatibility issues and, in some cases, can be less expensive. For instance, you may not be required to pay a gateway setup fee if you go through your service provider instead of going direct. Also, depending on your processing contract, there may be an exclusivity clause that requires you to go through your merchant account provider.

Few things in this world are free, so avoiding merchant fees altogether isn’t realistic. That being said, there are ways to limit your costs. A good opportunity to do so is by looking for a service that offers a subscription pricing model. This ensures your interchange rates don’t fluctuate, and it may remove some of the added fees.

Merchant service accounts and payment gateways are two essential components of electronic payment processing, but they serve different functions. A merchant service account is a specialized bank account that enables businesses to accept electronic payments, process transactions and settle funds. A payment gateway is a technology platform that acts as an intermediary between your customer’s bank and your merchant account.

The best merchant account contracts have month-to-month terms with no early termination fees. However, the standard merchant account contract has a three-year term that automatically renews for an additional one or two years. If the processing service provider you want to work with has a lengthy contract, ask the sales rep if they can give you month-to-month terms. They want your business, and many are willing to negotiate.

With a standard merchant account contract, you have a very short window at the end of the term, usually 30 days, in which to cancel your account without penalty if you don’t wish to renew. Most providers require you to submit a cancellation request in writing.

Did you find this content helpful?
Verified CheckThank you for your feedback!
author image
Written By: Jennifer DublinoSenior Writer & Expert on Business Operations
Jennifer Dublino is an experienced entrepreneur and astute marketing strategist. With over three decades of industry experience, she has been a guiding force for many businesses, offering invaluable expertise in market research, strategic planning, budget allocation, lead generation and beyond. Earlier in her career, Dublino established, nurtured and successfully sold her own marketing firm. At business.com, Dublino covers customer retention and relationships, pricing strategies and business growth. Dublino, who has a bachelor's degree in business administration and an MBA in marketing and finance, also served as the chief operating officer of the Scent Marketing Institute, showcasing her ability to navigate diverse sectors within the marketing landscape. Over the years, Dublino has amassed a comprehensive understanding of business operations across a wide array of areas, ranging from credit card processing to compensation management. Her insights and expertise have earned her recognition, with her contributions quoted in reputable publications such as Reuters, Adweek, AdAge and others.
BDC Logo

Get Weekly 5-Minute Business Advice

B. newsletter is your digest of bite-sized news, thought & brand leadership, and entertainment. All in one email.

Back to top