10 Best Merchant Services of 2023
Meaghan has provided content and guidance for indie retailers as the editor for a number of retail publications and a speaker at trade shows. She is Fit Small Business’s authority on retail and ecommerce.
This article is part of a larger series on Payments.
Merchant services allow businesses to accept credit and debit card payments. In addition to the merchant account, many merchant service providers also offer payment processing 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 services. To truly compare pricing side-by-side, you should request a quote or use a tool like our calculator below.
In our evaluation, the best merchant services for small businesses are:
- Best overall: Square
- Cheapest: Helcim
- Best with no percentage markup: Payment Depot
- Best direct processor: Chase
- Best for surcharging and recurring billing: Stax
- Best for occasional and online sales: PayPal
- Best for online payments: Stripe
- Best for transparency: Dharma
- Best for high risk: PaymentCloud
- Best for QuickBooks users: QuickBooks
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Best Merchant Account Providers Compared
Pricing Structure | Monthly Fee | Swipe/Chip Transaction | Online Transaction | |
|---|---|---|---|---|
 | Flat rate | $0 | 2.6% + 10 cents | 2.9% + 30 cents |
 | Interchange plus | $0 | Interchange + 0.3% + 8 cents | Interchange + 0.5% + 25 cents |
 | Subscription | $79 | Interchange + 8 cents | Interchange + 18 cents |
 | Flat rate | $0 | 2.6% + 10 cents | 2.9% + 25 cents |
 | Subscription | $99-$199 | Interchange + 8 cents | Interchange + 18 cents |
 | Flat rate | $0–$30 | 2.29% + 9 cents** | 2.99% + 49 cents |
 | Flat rate | $0 | 2.7% + 5 cents | 2.9% + 30 cents |
 | Interchange plus | $25 | Interchange + 0.15% + 8 cents | Interchange + 0.2% + 11 cents |
 | Varies, typically flat rate | $0 - $45 | 2-3.5% | 2.8 - 4.3% |
 | Flat rate | $0* | 2.4% + 25 cents | 2.9% + 25 cents |
*QuickBooks subscription required, which starts at $30 monthly
**Through PayPal Zettle
Interchange rates are the fees charged by the card-issuing bank to process card transactions. Average interchange rates are typically around 1.8%, although they vary widely based on the type of transaction and card. Learn more about interchange rates.
Quiz: Which Payment Processor Is Right for You?
Looking for something different?
If you need hardware, see our guide to credit card readers. Meanwhile, if you’re an established business looking to save on processing fees, you may be interested in our guide to the cheapest credit card processing companies.
Square: Best Merchant Services for Small Businesses
Overall Score:
4.43 / 5
Pros
- Transparent, predictable pricing
- Free, user-friendly software
- No application, contract, monthly fees, or minimum requirements
Cons
- Account stability issues
- Automated clearing house (ACH) processing only available through invoicing feature
- Not compatible with high-risk businesses
What we like:
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 payments. 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, makes Square the best value for new and small businesses.
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
- 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 per month for chargeback protection
- Card reader: $49
Magstripe Reader | Contactless and Chip Reader | Square Terminal |
|---|---|---|
 |  |  |
First free, additional $10 | $49 | $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. |
Square is one of our favorite tools for small businesses. Learn more about all Square has to offer:
- What is Square?
- Square Point-of-Sale (POS) Review
- How to Use Square to Process Credit Cards
- Square Fees & Pricing Guide (+ Calculators)
Helcim: Cheapest Option
Overall Score:
4.33 / 5
Pros
- Interchange-plus pricing with no monthly fee
- No contracts or early termination fees
- Free POS, customer relationship management (CRM), invoicing, and online store software
Cons
- Limited third-party integrations
- Not suitable for brand new or high-risk businesses
- Strict approval process
What we like:
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, POS app, a mobile payment app, basic inventory tracking, hosted payment pages, and more.
Like Payment Depot and Stax by Fattmerchant, Helcim offers interchange-plus pricing, which is great for businesses doing heavy volume.
Unlike the others, it has no monthly fee and offers automated discounts as you scale. Helcim’s free software, interchange-plus pricing with no monthly fee, and transparent volume discounts make it the best and most affordable choice.
- Monthly fee: $0
- 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: $109
*Starting rates. Volume discounts are automatically applied to businesses processing more than $25,000 monthly.
Helcim has a single card reader option that can be used for countertop or mobile sales. The Helcim Card Reader costs $109, includes a free countertop stand, and is shipped for free in two to three business days.
The Helcim Card Reader is pricier than many other mobile card readers but less expensive than most countertop or terminal readers. (Source: Helcim)
The Helcim Card Reader can accept contactless, chip, and swipe payments, including contactless and PIN debit payments. Its hardware connects to any device—Mac, PC, smartphone, tablet, or iPad—and connects to the free Helcim POS app. Although there is no built-in receipt printer, Helcim supports email receipts.
Payment Depot: Best for No Percentage Markup
Overall Score:
4.09 / 5
Pros
- Low-cost membership pricing
- No contract or cancellation fee
- 24/7 customer support
Cons
- Low processing limits on plans
- Limited online support
- US merchants only
What we like:
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.
Payment Depot is also one of two interchange-plus processors on this list that does not add a percentage markup—just a flat fee of 8 cents for card-present transactions and 18 cents for card-not-present transactions.
Payment Depot’s flexible model with affordable pricing makes it one of the cheapest credit card processors for small established businesses, including retailers, restaurants, salons, auto shops, medical practices, and B2B companies.
- Monthly fee: $79 (for up to $250,000 annual sales volume)
- Card-present transaction fee: Interchange plus 8 cents
- Card-not-present transaction fee: Interchange plus 18 cents
- 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) noncompliance if you do not keep your business compliant
Since Our Last Update
Payment Depot recently updated its fees to a single subscription plan of $79, making it a more competitive option for small businesses. However, it’s important to note that the monthly processing limits for Payment Depot’s plans are only available for businesses with annual credit card sales volume of up to $250,000 meaning medium-sized businesses processing $21,000 and above per month will pay higher monthly fees than before.
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.
Chase: Best Direct Processor
Overall Score:
4.04 / 5
Pros
- Direct processor
- Same-day funding for Chase Business Checking customers
- Negotiable rates
Cons
- Some plans require long-term contracts
- Not all pricing disclosed on website
- Best value for Chase banking customers
What we like:
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. 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.
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% plus 10 cents
- Card-not-present transaction fee: 2.9% plus 25 cents
- Contract length: Most plans are month-to-month
- Early termination fee: $0
- Chargeback fee: $25
- Card readers: Quoted price
Chase Smart Terminal* | Countertop Terminal | Mobile Terminal | Chase QuickAccept Mobile Card Reader* |
|---|---|---|---|
 |  |  |  |
$399 | $299 | $399 | $49.95 |
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. |
Stax: Best for Surcharging & Recurring Billing
Overall Score:
3.94 / 5
Pros
- Membership model interchange-plus pricing
- User-friendly software
- Unique add-on tools
Cons
- Pricey software packages
- Lack of pricing transparency
- Not ideal for new and low-volume businesses
What we like:
Stax (Formerly Fattmerchant) is a popular merchant service provider with dedicated solutions for small and large businesses, as well as SaaS platforms. Similar to Payment Depot, Stax offers membership-based interchange-plus pricing. However, Stax’s pricing plans are targeted more toward growing small businesses processing at least $20,000 per month.
Stax offers invoicing, card-on-file payments, and recurring billing similar to Helcim, Stripe, and Square. What sets Stax apart are features like short message service (SMS) text-to-pay solutions, white-label customer portals, and robust reporting. These tools are ideal for growing businesses that primarily collect payments through online billing or invoicing, such as professional services.
In November 2021, Stax acquired CardX, an automated credit card surcharge platform that passes processing fees through to customers. This feature is now available through Stax where permitted by state and local guidelines.
- 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 18 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.
PayPal: Best for Ecommerce & Occasional Sales
Overall Score:
3.86 / 5
Pros
- Easy to use
- Trusted by customers
- Accept international and PayPal payments
Cons
- Account stability issues
- Monthly fee for virtual terminal
- Complex pricing
What we like:
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.
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 recommended option for low-volume and occasional sales or an additional payment option for online stores.
- Monthly fee: $0 to $30
- Card-present transaction fee: 2.29% plus 9 cents through PayPal Zettle (PayPal’s free POS app)
- Online transaction fee: 2.9% plus 49 cents
- PayPal Checkout transaction fee: 3.49% plus 49 cents
- Contract length: None, pay-as-you-go billing
- Early termination fee: $0
- Chargeback fee: $20
- Card readers: $24.99
PayPal changes its pricing frequently. The rates in this guide were last updated February 2023. Check the PayPal website for current pricing.
PayPal Card Reader | PayPal Terminal |
|---|---|
 |  |
$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 8 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 (4-6 hours with intensive use). |
In the News:
PayPal launched Terminal in October 2022. All-in-one portable card readers and POS systems are gaining in popularity. Now Square, PayPal, and Shopify offer similar terminal solutions.
Still deciding if PayPal is right for you? Learn more:
Stripe: Best Online Payment Processor
Overall Score:
3.80 / 5
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
- Transparent, flat-rate pricing
Cons
- Limited functionality for in-person payments
- Best for those with software development skills or resources
What we like:
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.
- Monthly fee: $0
- Card-present transaction fee: 2.7% plus 5 cents
- Card-not-present transaction fee: 2.9% plus 30 cents
- Keyed-in transaction fee: 3.4% plus 30 cents*
- 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
*Effective November 2022
Stripe Reader M2 | BBPOS WisePOS E |
|---|---|
 |  |
$59 | $249 |
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. |
Did you know? Stripe makes our list of:
Dharma: Best Merchant Services for Transparent Pricing
Overall Score:
3.78 / 5
Pros
- Affordable and transparent pricing
- Next-day funding options
- Free MX Merchant account
Cons
- Higher markups for American Express transactions
- Not best for mobile
- Strict application process
What we like:
Dharma Merchant Services specializes in working with small businesses and is known for being very transparent and honest in its practices. Every single fee—even account closure fees—is listed on Dharma’s website. In addition to transparency and affordable pricing, Dharma is an eco-friendly company and, to date, has donated over $750,000 to nonprofits.
Dharma offers low-cost interchange-plus pricing to low-risk merchants processing at least $10,000 monthly. Merchants processing more than $100,000 or 5,000 transactions qualify for volume discounts, which are also available on Dharma’s website. There are also special rates for restaurants with low average tickets.
- Monthly fee: $25
- Card-present transaction fee: Interchange plus 0.15% plus 8 cents
- Card-not-present transaction fee: Interchange plus 0.20% plus 11 cents
- American Express card-present transaction fee: Interchange plus 0.25%
- American Express card-not-present transaction fee: Interchange plus 0.3%
- Contract length: Month-to-month
- Account closure fee: $49
- Chargeback fee: $25
- Card readers: $269 to $479 for full terminal
- Clover POS systems available
Verifone Engage V200c Terminal | FD-150 Terminal | Ingenico Desk/5000 for B2B | Dejavoo Z11 |
|---|---|---|---|
 |  |  |  |
$295 | $295 | $369 | $295 |
Accepting swipe, chip, PIN, and contactless payments and print receipts. Compatible with B2B payments, level 2 rates, and multimerchant configuration. | Accept swipe, chip, PIN, and contactless payments. Print receipts and reports and connect optional customer-facing displays. | Swipe, chip, PIN, and contactless payments, including B2B card-present transactions. Hardwire, Wi-Fi, or 4G cellular connectivity. | Swipe, chip, PIN, and contactless payments. Compatible with MX Advantage to program surcharging. |
Dharma has additional terminals available with external-facing PIN pads designed for accepting tips. Additionally, because Dharma is part of the TSYS network, it is compatible with many POS systems. You can also purchase Clover POS hardware, including Clover Flex, Mini, and Station, through Dharma.
PaymentCloud: Best for High Risk
Overall Score:
3.77 / 5
Pros
- 98% of high-risk accounts are approved
- 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
What we like:
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. Even if other merchant account providers have turned you down, PaymentCloud can likely get you approved.
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: $0–$45
- Typical low-risk transaction fees: 2%–3.1%
- Typical mid-risk transaction fees: 2.25%–3.4%
- Typical high-risk transaction fees: 2.7%–4.3%
- Discounts available for high-volume businesses
- Flat-rate and interchange rates available depending on business needs
- Contract length: None, month-to-month options available
- Early termination fees: Waived
- Chargeback fees: $25–$45
- Cross-border fees: 1%–2%
- 1000+ integrations available, no API required
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 PaymentCloud for a specific quote.
If you’re migrating over to PaymentCloud from a different processor, PaymentCloud will reprogram your existing equipment if possible.
QuickBooks: Best for QuickBooks Users
Overall Score:
3.77 / 5
Pros
- Transparent, flat-rate pricing
- Volume discounts for businesses processing more than $7,500 monthly
- 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
What we like:
QuickBooks Payments has a lot of 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. However, you must have a QuickBooks account to use this service.
- Monthly fee: $30*
- Card-present transaction fee: 2.4% plus 25 cents
- Invoice transaction fee: 2.9% plus 25 cents
- Keyed-in transaction fee: 3.4% plus 25 cents
- ACH transaction fee: 1%, $10 max
- Contract length: None
- Early termination fee: $0
- Chargeback fee: $25
- Card readers: $49
*QuickBooks Online subscription; as of this writing, plans are offered at a promotional price, $15 to $100 per month (50% off for the first three months) with a 30-day free trial.
QuickBooks Card Reader |
|---|
 |
$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 are only available through QuickBooks POS.
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.
Did you know?
Fit Small Business has an entire QuickBooks course led by our in-house CPA, Dr. Tim Yoder. See our QuickBooks tutorials for more information.
Calculate Estimated Fees
Enter your typical monthly sales volume and average order value or ticket size to see how much you would pay each month with each processor, along with your effective rate:
Note: These rates are only estimates and do not include software fees, chargebacks, and hardware fees, nor do they account for keyed-in payments. For this calculation, we used average Visa interchange rates for in-person and online credit transactions. The amount you pay will vary depending on your customer’s payment method, the type of transactions you process, and your specific agreement with your processor.
How We Evaluated the Best Merchant Services
We considered dozens of processors, narrowing our selection down to 16 options. Then, we evaluated those 16 options across 22 data points divided into the categories of Pricing and Contract, Payment Types, Features, and Expert Score. From our evaluation, we selected the 10 top-scoring payment processors to feature in this guide.
Click through the tabs below for our full evaluation criteria:
25%
Pricing
30%
Payment Types
25%
Account Features
20%
Expert Score
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. Additionally, we prioritized providers that don’t charge hefty monthly fees, cancellation fees, 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, and extra points if those discounts are transparent or automated.
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.
25% of Overall Score
20% of Overall Score
*Percentages of overall score
Merchant Services Frequently Asked Questions FAQs
A merchant account is a service that allows you to accept payments from customers. Business owners apply for a merchant account from a merchant services provider that has the technology to communicate financial data and transfer funds from your clients’ bank account to your own safely when completing a transaction.
Generally speaking, all businesses need a merchant account but the type of merchant account varies with business size. An aggregate merchant account is best suited for startups, micro, and low-volume businesses because there is no lengthy application process, strict requirements, or hefty fees. The setup is quick and easy, and you can start accepting payments in minutes. Learn about free merchant account providers.
Meanwhile larger businesses like B2Bs and high-risk merchants can benefit from a traditional merchant account because it helps you protect your credit standing and provides better rates for large volume sales.
There are a wide range of merchant account services providers in the market and you can find one that can match your specific business type and size. You will need to do your research but before that, it’s important that you are also equipped with all the payment processing requirements information for your business. Learn how to accept credit card payments for your business.
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.
Want help navigating your merchant account application?
Download our free merchant account application guide that walks you through the process, including tips for getting the lowest rates and contract clauses to watch out for.
