9 Best Merchant Services for 2022
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, point-of-sale (POS) systems, and card-reading hardware.
The best solutions offer competitive rates, month-to-month contracts with no cancellation fees, and an array of flexible payment solutions for in-person and online transactions.
The best merchant services for small businesses are:
- Square: Best all-purpose merchant service account for small businesses and individuals
- Payment Depot: Cheapest credit card processor
- Stax by Fattmerchant: Best for growing businesses with invoicing or recurring billing
- Chase Payment Solutions: Best traditional merchant account offered through a bank
- PayPal: Best for occasional sales, online checkout, and nonprofits
- QuickBooks GoPayment: Best for businesses using QuickBooks, especially B2B and freelancers
- Stripe: Best for online sales and integrations
- Helcim: Best for brick-and-mortar retailers
- PaymentCloud: Best high-risk merchant account
Best Merchant Services Compared
Monthly fee | Transaction fee | Online fee | Chargeback fee | Deposit time | Phone support | |
|---|---|---|---|---|---|---|
$0 | 2.6% + 10 cents | 2.9% + 30 cents | $0 | Next-day or instant for a fee | 6 a.m.–6 p.m. Pacific time Mon-Fri | |
$49–$199 | Interchange plus 5-15 cents | Interchange plus 5-15 cents | Undisclosed | Same-day | 24/7 | |
$99–$199 | Interchange plus 8 cents | Interchange plus 15 cents | Undisclosed | Next-day, same-day for fee | 24/7 | |
$0 | 2.6% + 10 cents | 2.9% + 25 cents | $25 | Next-day, same-day to Chase checking | 24/7 | |
$0–$30 | 2.7% | 3.5% + 15 cents | $20 | 1–3 days, instant for fee | 6 a.m.–6 p.m. Pacific time Mon–Sat | |
$0–$30, plus $15–$180, for QuickBooks Accounting | 2.4% + 25 cents | 3.4% + 25 cents | $25 | 2–3 days | 9 a.m.–8 p.m. Eastern time Mon–Sat | |
$0 | 2.7% + 5 cents | 2.9% + 30 cents | $15 per lost dispute | 2 business days | 24/7, but need to request a call from your Stripe dashboard | |
$0 | Interchange plus 0.3% + 8 cents | Interchange plus 0.5% + 25 cents | $15 per lost dispute | 2 business days | 24/7 | |
Undisclosed | Undisclosed | Undisclosed | Undisclosed | Undisclosed | 7 a.m.–6 p.m. Pacific time, Mon–Fri |
Which Merchant Service Provider Is Right for You?
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Square: Best Overall Merchant Services
Square
Overall Score: 4.38 OUT OF 5 iOur score is based on a weighted evaluation of dozens of similar products and services conducted by our experts.
What We Like
- Transparent and predictable pricing
- Free, user-friendly software
- No application, contract, monthly fees, or minimum requirements
What's Missing
- Not suitable for high-risk businesses
- Account stability issues
- ACH payment processing only for invoicing
Square Pricing
- 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/month for chargeback protection
- Card reader: $49
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, and even invoice payments. The simplest merchant account provider to get started with, Square is free to use except for transaction fees and offers the best value for new and small businesses.
Besides being the best all-purpose merchant account, we also recommend Square as the best free merchant account and best credit card payment app. While many of the other merchant services on our list are frequently featured in our guides, Square usually earns the top slot in multiple categories.
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. The real benefit of choosing Square as your merchant service provider is Square’s full suite of business management tools included in your free Square POS software, including customer management, online store, a virtual terminal, invoicing software, reporting, and more. It is even moving into banking services with loans and checking accounts, like you’d find with Chase Merchant Services.
Payment Depot: Cheapest Credit Card Processor
Payment Depot
Overall Score: 4.22 OUT OF 5 iOur score is based on a weighted evaluation of dozens of similar products and services conducted by our experts.
What We Like
- Low-cost membership pricing
- No contract or cancellation fee
- 24/7 customer support
What's Missing
- Not compatible with high-risk businesses, including CBD
- Best for businesses processing more than $10,000 monthly
- Application required
Payment Depot Pricing
- Monthly fee: $49–$199
- Transaction fee: Interchange plus 5–15 cents depending on the plan
- Contract length: Month-to-month
- Early termination fee: $0
- Chargeback fee: Undisclosed
- Card reader: $99
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.
Unlike most credit card processing companies, Payment Depot makes no distinction between online and in-person payments. The pricing is the same, and both kinds of payments are included with every membership. On our list, only Stax by Fattmerchant and Square also offer all-in-one memberships—though they both charge higher rates for online and 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 business-to-business (B2B) companies.
Stax by Fattmerchant: Best for Growing Businesses
Stax by Fattmerchant
Overall Score: 4.19 OUT OF 5 iOur score is based on a weighted evaluation of dozens of similar products and services conducted by our experts.
What We Like
- Transparent pricing
- Omni software and integrated payments
- Easy to use
What's Missing
- High monthly fee for most businesses
- Expensive software subscriptions
- Extra costs for virtual terminal
Stax by Fattmerchant Pricing
- Monthly fee: $99-$199
- Card-present transaction fee: Interchange plus 8 cents
- Card-not-present transaction fee: Interchange plus 15 cents
- Contract length: Month-to-month, 30 days cancellation
- Early termination fee: $0
- Chargeback fee: Undisclosed
- Card readers: $100
In the News: In April 2021, Fattmerchant rebranded to Stax. The new name reflects its growth from a payments company to one that provides technological solutions in the financial space as well.
Stax by Fattmerchant is a merchant service provider with a subscription or membership model where businesses pay a higher monthly fee and low transaction fees, similar to Payment Depot. While this model is most economical for growing businesses processing more than $15,000 monthly, Stax by Fattmerchant 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.
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 Stax by Fattmerchant an ideal option for established or higher-volume businesses that process payments via invoice or subscriptions, for example, healthcare and wellness companies, field services like construction, and professional services such as lawyers offices.
Chase Payment Solutions: Best Merchant Account Through a Bank
Chase Payment Solutions
Overall Score: 4.08 OUT OF 5 iOur score is based on a weighted evaluation of dozens of similar products and services conducted by our experts.
What We Like
- Direct processor
- Negotiable rates
- Same-day funding for Chase business checking customers
What's Missing
- Some plans require long-term contracts
- Not all pricing disclosed on the website
Chase Payment Solutions Pricing
- Monthly fee: $0
- Card-present transaction fee: 2.6% + 10 cents
- Card-not-present transaction fee: 2.9% + 25 cents
- Contract length: Most plans are month-to-month
- Early termination fee: $0
- Chargeback fee: $25
- Card readers: $49.95
Chase Payment Solutions (formerly 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 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. No application is necessary. (Square is starting to move into banking services as well, and PayPal, of course lets you deposit into your PayPal accounts.)
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 direct processors that offer flat-rate fees for small businesses. Larger businesses can also negotiate competitive interchange-plus pricing, like you’d find with Payment Depot, Stax by Fattmerchant, or Helcim.
PayPal: Best for Occasional Sales
PayPal
Overall Score: 4.02 OUT OF 5 iOur score is based on a weighted evaluation of dozens of similar products and services conducted by our experts.
What We Like
- Easy to use
- Trusted by consumers
- Predictable, transparent pricing
- Accept international and PayPal payment
What's Missing
- Not suited for high-risk or high-volume businesses
- Account stability issues
- Monthly fee for virtual terminal
PayPal Pricing
- Monthly fee: $0-$30
- Card-present transaction fee: 2.7%
- Card-not-present transaction fee: 3.5% + 15 cents
- Contract length: None, pay-as-you-go billing
- Early termination fee: $0
- Chargeback fee: $20
- Card readers: $24.99
In the News: PayPal recently changed its fees. New rates went into effect Aug. 2, 2021, and are reflected in this guide. See the full list on PayPal’s website.
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.
QuickBooks GoPayment: Best for Businesses Using QuickBooks
QuickBooks GoPayment
Overall Score: 4.02 OUT OF 5 iOur score is based on a weighted evaluation of dozens of similar products and services conducted by our experts.
What We Like
- Transparent, flat-rate pricing
- Volume discounts for businesses processing more than $7,500 monthly
- Invoicing and recurring billing tools, including ACH payment processing
- Integrates with QuickBooks accounts
What's Missing
- Only makes sense if you already use QuickBooks
- Slow deposit speed
- Transaction fees more expensive than most competitors
QuickBooks GoPayment Pricing
- Monthly fee: $0-$30, plus QuickBooks program ($15-$180)
- Card-present transaction fee: 2.4% + 25 cents
- Card-not-present transaction fee: 3.4% + 25 cents
- Invoices: 2.9% + 25 cents
- Contract length: None, pay-as-you-go billing
- Chargeback fee: $25
- Card readers: $49
QuickBooks GoPayment has a lot of strong features and good rates. In fact, if you regularly process over $7,500 a month, you can apply for a discount on transactions of up to 40%. The other processors on our list that offer discounts usually do so at a higher volume. It also has a reduced rate for ACH transfers: 1% with a maximum of $10. Compare this to Square, which has 1% but a minimum of $1 and no maximum.
However, you must have a QuickBooks account to use this service, which means you will pay at least $15 a month no matter how much you process in sales. Keep in mind, though, that even if you use a different processor and want QuickBooks for accounting, you’ll be paying this with them too.
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. It has a longer deposit time than most on our list—usually two or three days.
Stripe: Best Payment Processing for Online Businesses
Stripe
Overall Score: 3.89 OUT OF 5 iOur score is based on a weighted evaluation of dozens of similar products and services conducted by our experts.
What We Like
- Grows with your business
- Powerful, user-friendly developer tools and APIs
- Supports over 35 countries and 135 currencies
What's Missing
- Technical skills required to implement and maintain
- Not suitable for high-risk businesses
- Account stability issues
Stripe Pricing
- Monthly fee: $0
- Card-present transaction fee: 2.7% + 5 cents
- Online transaction fee: 2.9% + 30 cents
- Contract length: None, pay-as-you-go billing
- Early termination fee: $0
- Chargeback fee: $15 per lost dispute
- Card readers: $59
Stripe is a payment processor with sophisticated software and APIs ideal for online businesses and apps that want to create a custom checkout solution. 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, and more. Configure subscriptions, recurring billing, or one-time payments for different checkout needs (like per-seat pricing, metered billing, coupons, free trials, prorates, overages, and usage-based fees). And, automatically update expired or renewed customer card information.
Stripe is an industry-leading payment solution used by startups and Fortune 500 companies. It tops our list of best international merchant accounts (PayPal and Helcim are also on this list). While it has competitive pricing for businesses of all sizes, you’ll get the most value out of Stripe if you have developer resources to configure and maintain a custom checkout.
Helcim: Best for Brick-and-Mortar Retailers
Helcim
Overall Score: 3.83 OUT OF 5 iOur score is based on a weighted evaluation of dozens of similar products and services conducted by our experts.
What We Like
- No contracts or early termination fees
- Free POS, invoicing, and online store software
- International payment processing
What's Missing
- Limited third-party integrations
- Not suitable for high-risk businesses
Helcim Pricing
- 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 over $25,000 monthly. Rates as low as interchange plus 0.1% + 5 cents are available.
Helcim is an all-in-one merchant account provider 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, it offers interchange-plus pricing, which is great for businesses doing heavy volume. Unlike the others, it has no monthly fee.
Competitive interchange-plus pricing, along with ecommerce tools, makes Helcim a great choice for retail businesses, especially those that want to sell online.
However, Helcim does not work with high-risk businesses, such as CBD or vape shops. If you need a high-risk merchant account for your storefront, PaymentCloud might be your best choice.
PaymentCloud: Best High-Risk Merchant Account
PaymentCloud
Overall Score: 3.53 OUT OF 5 iOur score is based on a weighted evaluation of dozens of similar products and services conducted by our experts.
What We Like
- Excellent high-risk placements
- Excellent customer support
What's Missing
- Supports limited CBD products
- Pricing not disclosed
PaymentCloud Pricing
PaymentCloud does not have any publicly disclosed pricing, which is common for high-risk merchant account providers. The rates you receive will depend on your individual business and what PaymentCloud can negotiate with one of its partner banks. However, there are no application, setup, or annual fees.
As a popular merchant service provider, PaymentCloud specializes in high-risk accounts. PayPal is the only other merchant service on our list that takes high-risk clients, and then in a more limited fashion. If you are a high-risk business because of the type of products or services you sell or poor credit, PaymentCloud could be a good fit, even if other merchant account providers have turned you down.
Offering a hard-to-place program, PaymentCloud includes relationships with over 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.
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. In fact, many other merchant service providers refer high-risk businesses to PaymentCloud because of its excellent reputation in getting businesses approved.
How We Chose the Best Merchant Services
We considered dozens of payment processors, narrowing our list down to eight solutions to evaluate in-depth. We evaluated each solution based on pricing and contract terms, types of payments each solution can handle, account features including deposit speed and customer support hours, and our personal evaluation of each processor.
Click through the tabs below for our full evaluation criteria:
25%
Pricing
25%
Payment Types
25%
Account Features
25%
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. We also 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. Square earned a perfect score.
25% 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. QuickBooks earned a 5 out of 5.
25% of Overall Score
We prioritized merchant accounts with free 24/7 phone and email support. Small businesses also need fast deposits, so payment processors offering free same- or next-day funding earned bonus points. Finally, we considered whether each system has affordable and flexible hardware options and offers any business management tools, like dispute and chargeback management, reporting, or customer management. Stax by Fattmerchant earned top score here with 4.13 out of 5.
25% of Overall Score
We judged each system based on its overall pricing and advertising transparency, ease of use (including account stability), popularity, and reputation among business owners and sites like Better Business Bureau. Finally, we considered how well each system works with other popular small business software, like accounting, point-of-sale, and ecommerce solutions. Payment Depot earned a perfect score.
*Percentages of overall score
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.
If you’re launching a new venture or have sales volumes of less than $20,000 per month, you can’t go wrong with Square. It’s all-in-one simplicity, low flat-rates, and free POS business management tools make it practically unbeatable for most small business needs. Visit Square to create a free account.
