8 Best Merchant Services for 2022

The Internet of Things is a growing trend that will likely impact merchants more than any other technological development in recent history. These 8 services are designed to help businesses navigate this emerging technology, save money and grow their bottom line by the end of 2022.

Businesses may use merchant services to accept credit and debit card payments. Payment gateways, virtual terminals, point-of-sale (POS) systems, and card-reading hardware are all available from several merchant service providers. Competitive prices, month-to-month contracts with no cancellation penalties, and a variety of flexible payment options for in-person and online transactions are all features of the best solutions.

The following are the best merchant services for small businesses:

• Square: The best all-around merchant account for individuals and small companies.
• Payments Depot: The cheapest credit card processor on the market.
• Fattmerchant’s Stax: Ideal for companies that need invoicing or regular billing.
• Chase Merchant Services: The best conventional merchant account that a bank has to offer.
• PayPal: Ideal for one-time sales, online payments, and organizations.
• Stripe: The best option for internet startups and B2B businesses.
• Helcim: Best choice for brick-and-mortar stores.
• PaymentCloud: The best high-risk merchant account.

How Did We Assess Merchant Services?

We looked at dozens of payment processors before reducing it down to eight options to investigate further. Each option was assessed based on its price and contract conditions, the sorts of payments it can process, account features such as deposit speed and customer service hours, and our own personal assessment of each processor.

25% of the overall score

Merchant account providers who don’t demand contracts and allow month-to-month or pay-as-you-go billing received bonus points. We also looked for providers with low monthly rates, cancellation fees, and chargeback fees. Only suppliers that provide competitive and predictable flat-rate or interchange-plus pricing were considered.

25% of the overall score

The best merchant accounts accept a wide range of payment types, including POS and card-present transactions, mobile payments, contactless payments, eCommerce transactions, ACH and e-check payments, as well as provide free virtual terminal and invoicing solutions for phone orders, recurring billing, and card-on-file payments.

25% of the overall score

We prioritized merchant accounts by providing free phone and email service 24 hours a day, seven days a week. Small companies need quick deposits as well, thus payment processors who provide free same-day or next-day financing receive extra points. Finally, we looked at whether each system had inexpensive and flexible hardware alternatives, as well as if it has any business administration capabilities, such as dispute and chargeback management, reporting, and customer management.

25% of the overall score

Each system was evaluated on its general price and advertising transparency, simplicity of use (including account stability), popularity, and reputation among company owners and sites such as the Better Business Bureau. Finally, we looked at how effectively each system integrates with other common small company software, such as accounting, point-of-sale, and eCommerce software.

Square: The Most Versatile Merchant Service

4.38 OUT OF 5

Pros

• Pricing that is clear and predictable
• Software that is both free and simple to use.
• There is no need to fill out an application, sign a contract, pay monthly fees, or meet any minimum qualifications.

Cons

• This product is not appropriate for high-risk enterprises.
• Issues with account stability
• Only use ACH payment processing for invoicing.

Pricing

• Fee per month: Fee per month: Fee per month: Fee per month: Monthly fee: $0
• The cost for using a credit card in person is 2.6 percent plus ten cents.
• Transaction charge for eCommerce and invoices: 2.9 percent + 30 cents
• Fee for transactions made with a card that is not present: 3.5 percent plus 15 cents
• Contract length: None; invoicing is on a pay-as-you-go basis.
• Fee for early termination: Fee for early termination: $0
• There is no chargeback fee, however, chargeback protection might cost up to $250 per month.
• $49 for a card reader

Square is an all-in-one merchant services provider, which means it can handle payments in-store, over the phone, online, via a virtual terminal, and even for invoices. Square is the easiest merchant account provider to use, is free to use (save for transaction fees), and provides the greatest value for new and small companies. We suggest Square as the best free merchant account and ideal for small eateries, in addition to being the finest all-purpose merchant account.

You can take credit card payments, record cash and check transactions, handle invoices, set up an online checkout or ordering system, and accept contactless payments as soon as you register your free Square account. Square’s comprehensive array of company management capabilities included in your free Square POS software, including customer management, online shop, virtual terminal, invoicing software, reporting, and more, is the actual value of selecting Square as your merchant service provider.

PaymentDepot is the cheapest credit card processor on the market.

4.22 OUT OF 5

Pros

• Memberships at a low cost
• There is no commitment and no cancellation fee.
• Customer service is available 24 hours a day, 7 days

Cons

• Not suitable for high-risk industries, such as CBD.
• For companies that handle moreover $10,000 per month, this is the best option.
• It is necessary to submit an application.

Pricing

• $49–$199 per month
• Interchange + 5–15 cents for each transaction, depending on the plan
• Month-to-month contract duration
• Fee for early termination: $0
• Fee for chargebacks: not revealed
• $99 for a card reader

PaymentDepot is a merchant service provider with a membership pricing model that offers payment processing at extremely competitive rates. One membership with PaymentDepot includes interchange-plus pricing for a card-present, online, virtual terminal, and mobile payments.

Unlike most credit card processing companies, PaymentDepot makes no distinction between online and in-person payments. The pricing is the same, and both kinds of payments are included with every membership.

This flexible model with affordable pricing makes PaymentDepot one of the cheapest credit card processors for small established businesses, including retailers, restaurants, salons, auto shops, medical practices, and business-to-business (B2B) companies.

Fattmerchant’s Stax is the best for growing businesses.

4.19 OUT OF 5

Pros

• Pricing that is clear
• Payments integration and Omni software
• Simple to use

Cons

• Most companies have a high monthly charge.
• Subscriptions to expensive software are prohibitively expensive.
• Additional charges for a virtual terminal

Pricing

• Fee per month: $99–$199
• Interchange extra 8 cents for card-present transactions
• Interchange additional 15 cents for card-not-present transactions
• Month-to-month contract duration, 30 days cancellation
• Fee for early termination: $0
• Fee for a chargeback: undisclosed
• Readers for credit cards: $100

Fattmerchant’s Stax is a merchant service provider with a subscription or membership model where businesses pay a higher monthly fee and low transaction fees. While this model is most economical for growing businesses processing more than $15,000 monthly, Fattmerchant’s Stax also has a pay-as-you-go model for businesses processing under $80,000 annually. This model does not have a monthly fee and charges a flat 2.9% transaction fee.

Fattmerchant’s Stax also offers user-friendly Omni software that includes invoicing, recurring payment tools, ACH processing, Text2Pay, and reporting features. Omni software and the membership pricing model make Fattmerchant’s Stax an ideal option for established or higher-volume businesses that process payments via invoices or subscriptions, for example, healthcare and wellness companies, field services like construction, and professional services such as lawyers offices.

Chase Merchant Services: The Best Bank-Based Merchant Account

Overall Score: 4.08 OUT OF 5

Pros

• Processor with direct access
• Rates that can be negotiated
• Customers who have a Chase business checking account may get money the same day.

Cons

• Some initiatives need long-term commitments.
• Not all price information is available on the website.

Pricing

• Fee per month: $0
• The cost for using a credit card in person is 2.6 percent plus ten cents.
• Fee for transactions using a card that isn’t present: 3.5 percent plus 10 cents
• The majority of plans are month-to-month.
• The chargeback cost is $25.
• $49.95 for card readers

Chase Merchant Services offers merchant services that are a great alternative for any business looking to work with a traditional bank, especially if your business accounts are with Chase. Having Chase as both the processor and receiving bank in transactions can provide speed and security by removing the intermediary.

Chase Business Checking clients receive the most bang for their buck when it comes to merchant services. You may use Chase QuickAccept, a free mobile payments tool that features same-day deposits and dispute handling if you have a checking account. There is no need to fill out an application.

However, Chase is one of the largest processors in the US, and any business can apply to use its merchant services. Chase is one of the few Processors with direct access that offer flat-rate fees for small businesses. Larger businesses can also negotiate competitive interchange-plus pricing.

PayPal is the best option for one-time sales.

Overall Score: 4.02 OUT OF 5

Pros

• Simple to use
• Predictable, Pricing that is clear
• Accept PayPal and international payments.

Cons

• Not recommended for high-risk or high-volume operations.
• Issues with account stability
• The virtual terminal has a monthly cost.

Pricing

• Fee per month: $0–$30 to $30 per month.
• The cost for using a credit card in person is 2.7 percent.
• Fee for transactions made with a card that is not present: 3.5 percent plus 15 cents
• Contract length: None; invoicing is on a pay-as-you-go basis.
• Fee for early termination: $0
• Fee for a chargeback: $20
• $24.99 for card readers

PayPal is a well-known brand that provides simple payment processing for online, mobile, and in-store purchases. PayPal has a low flat-rate cost structure and is simple to sign up for. Nonprofit groups may also get cheaper pricing.

Additionally, since consumers don’t have to put in payment or shipping information, introducing PayPal as a payment option may enhance online business conversions and minimize cart abandonment.

PayPal, on the other hand, is not a standard merchant account. This implies that if the corporation detects anything questionable, business accounts might be reported and stopped, which is troublesome for enterprises that depend on daily payments. As a result, PayPal is a highly recommended alternative for low-volume and infrequent purchases, as well as an extra payment option for online merchants.

Stripe is the best payment processor for online merchants.

Stripe

3.69 OUT OF 5

Pros

• Grows with your company
• APIs and developer tools that are both powerful and easy to use
• Over 35 nations and 135 currencies are supported.

Cons

• Technical expertise is necessary to implement and maintain the system.
• This product is not appropriate for high-risk enterprises.
• Issues with account stability

Pricing

• Fee per month: $0
• The cost for using a credit card in person is 2.7 percent. + 5 cents
• The fee for online transactions is 2.9 percent plus 30 cents.
• Contract length: None; invoicing is on a pay-as-you-go basis.
• Fee for early termination: $0
• Fee for chargebacks: $15 per lost dispute.
• Card readers are $59 each.

Stripe is a sophisticated payment processor with APIs that are suitable for online companies and applications that wish to design their own bespoke checkout solution. Stripe’s pre-built connections make connecting a Stripe checkout to practically any website or program a breeze.

Stripe’s ability to deal with a variety of payment methods is one of its strongest advantages. Accept payments by ACH and e-checks, as well as WeChat, Klarna, Apple Pay, Google Pay, and other methods. For various checkout requirements, configure subscriptions, recurring billing, or one-time purchases (like per-seat pricing, metered billing, coupons, free trials, pro-rates, overages, and usage-based fees). Also, automatically update customer card information that has expired or been renewed.

Stripe is a popular payment platform that is utilized by both startups and Fortune 500 enterprises. While Stripe offers affordable pricing for companies of all sizes, you’ll get the most out of it if you have the technical skills to set up and manage a custom checkout.

Helcim is the best choice for retailers.

Helcim

3.83 OUT OF 5

Pros

• There are no commitments or penalties for cancelling.
• POS, invoicing, and online shop software are all available for free.
• Processing of international payments

Cons

• Third-party integrations are limited.
• This product is not appropriate for high-risk enterprises.

Pricing

• Fee per month: $0
• Interchange plus 0.3 percent + 8 cents for card-present transactions
• Interchange additional 0.5 percent + 25 cents for card-not-present transactions
• Contract length: None; invoicing is on a pay-as-you-go basis.
• Fee for early termination: $0
• Fee for chargebacks: $15 per lost dispute.
• $199 for a card reader

These are the starting prices. Businesses that handle moreover $25,000 per month get automatic volume savings. There are rates as low as interchange plus 0.1 percent + 5 cents.

Helcim is a one-stop-shop for advanced sales solutions that include a fully hosted online store, invoicing software, a POS app, a mobile payment app, basic inventory management, hosted payment pages, and more.

Helcim is a wonderful alternative for retail firms, particularly those who wish to sell online, because of its competitive interchange-plus pricing and eCommerce features.

Helcim, on the other hand, does not deal with high-risk enterprises like CBD or vape shops. PaymentCloud is a good option if you require a high-risk merchant account for your shop.

PaymentCloud: The best high-risk merchant account

3.53 OUT OF 5

Pros

• Excellent placements for high-risk situations
• Customer service is outstanding.

Cons

• Supports CBD items with a limited supply.
• The price has not been revealed.

Pricing

PaymentCloud does not have any price information publicly available, which is typical of high-risk merchant account providers. PaymentCloud can negotiate better rates with one of its partner banks, but the prices you obtain will be determined by your specific company. There are no application, setup, or yearly costs, though.

PaymentCloud, is a well-known merchant service provider that specializes in high-risk clients. PaymentCloud may be a suitable choice for you if you’re a high-risk company because of the items or services you provide or because you have bad credit, even if you’ve been turned down by other merchant account providers.

PaymentCloud offers a “hard-to-find” program that includes partnerships with over 10 banks and a step-by-step application procedure that guides you through the process of submitting all of the paperwork required to be authorized by one of their partner banks.

In addition to high-risk customers, PaymentCloud provides regular merchant services. PaymentCloud, on the other hand, is best recognized for high-risk payment processing. In fact, because of PaymentCloud’s great reputation for getting high-risk firms accepted, many other merchant service providers promote high-risk enterprises to them.

Conclusion

Choosing the right merchant account provider can save your business lots of money in fees each month. The best payment processors are also simple to use, offer good value with business solutions, and integrate with popular software. Plus, merchant accounts should be transparent and reliable.

You can’t go wrong with Square if you’re starting a new business or have monthly sales of less than $20,000. Its all-in-one convenience, affordable flat-rate pricing, and free POS business management capabilities make it almost unequaled for most small company requirements.

Frequently Asked Questions

Which merchant service provider is the best?

A: This will depend on the type of business you are looking to start. If your goal is to generate revenue, then PayPal and Stripe would be perfect for you. However, if you want a more personal experience, try Square or WePay instead.

What are merchant services for small businesses?

A: Merchant services are the business of collecting payments for a seller’s goods or products. In general, this can be anything from selling items through eBay to accepting payment cards at your home.