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Best Merchant Account Providers For Small Business
Your small business needs a merchant account to process credit card payments. Read on to discover our top picks for merchant account service providers.
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
WRITTEN & RESEARCHED BY
Shannon VissersShannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
Expert Contributor
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Matt has been helping small businesses make decisions since 2017. He has written reviews and articles across many different channels but specializes in the point of sale, payroll, and small business insurance categories and has been quoted in articles for Fox Business, Forbes, and other publications. Prior to joining Merchant Maverick, Matt was a journalist and editor for 14 years for a pair of weekly newspapers. He is a graduate of the University of Oregon and currently resides in Gladstone, Oregon.
REVIEWED BY
Matt ShermanMatt has been helping small businesses make decisions since 2017. He has written reviews and articles across many different channels but specializes in the point of sale, payroll, and small business insurance categories and has been quoted in articles for Fox Business, Forbes, and other publications. Prior to joining Merchant Maverick, Matt was a journalist and editor for 14 years for a pair of weekly newspapers. He is a graduate of the University of Oregon and currently resides in Gladstone, Oregon.
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Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.
Merchant account providers offer merchant services like credit card processing for in-person and online payments. We have researched numerous several merchant account providers based on pricing, service features, contract terms, and user reviews to help you compare the best merchant services for small business owners.
Promo: Earn up to $1,000 in statement credits over 3 months when you open a new U.S. Bank Payment Solutions account and complete qualifying activities. Member FDIC.
Offer:
- Open, and be approved for, a new U.S. Bank Payment Solutions Merchant Account (MID) by June 30, 2025.
- Keep the approved account in an open status and be actively accepting and settling card payments at the time the statement credit is issued.
- Get merchant fees refunded up to $1,000 over three months Claim this offer
The best merchant services providers for small businesses offer reasonable payment processing rates, point of sale system integrations, eCommerce software integrations, good customer service, and credit card terminals for taking payments on the go. Here are our top picks:
Monthly fee can be higher than $199 for very high-volume businesses (processing over $500K/month)
Why We Chose Stax for eCommerce
Stax is one of the best credit card processing companies for high-volume businesses and is especially geared toward eCommerce. Stax integrates with most gateways and shopping carts, and also includes its own eCommerce website builder. In addition to eCommerce retail, Stax also has features for software-as-a-service (Saas) businesses and businesses that sell subscriptions or memberships online.
If you also sell in person, Stax still has you covered, with multichannel POS functionality that syncs with all your online sales.
Stax Pricing
Stax has a membership pricing model, whereby merchants pay one flat monthly fee rather than a laundry list of myriad merchant fees.
Otherwise, Stax just charges a few cents markup over interchange, so in total you’ll be charged $99-$199/month (monthly fee depends on your sales volume), with a per-transaction fee of $0.08-$0.15 + interchange (in-person sales are charged $0.08 and online or keyed-in sales are $0.15).
“Free” credit card terminal requires a long-term contract
Why We Chose Chase For Chase Business Bank Account Holders
We like that Chase Payment Solutions is both a free merchant account provider and a direct payment processor, so you don't have to work with any third-party payment processor and wait several days for your funds to get processed and paid out. Chase business bank account holders can even receive funding within the same day for no fees. For an additional monthly fee, you can also get fast ACH payments and lowered B2B transaction payment processing fees.
Automated lower payment processing fees for B2B/B2G transactions
Free POS software and invoicing software
Excellent customer support
Cons
Does not accept high-risk businesses
Per-transaction rates may be high for low-volume businesses
Only available in US and Canada
Why We Chose Helcim For All-In-One Merchant Accounts
We like that Helcim offers full-service merchant accounts with no monthly software fees and interchange-plus payment processing for all businesses, regardless of business size or history. Helcim automatically lowers payment processing rates as you process more payments, which is very cost-effective for growing businesses.
We also appreciate Helcim's AI-powered tool that helps identify qualifying Level 2/3 business-to-business (B2B) and business-to-government (B2G) transactions. These transactions are more secure and result in lower payment processing fees, making Helcim an attractive option for B2B/B2G businesses.
Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.
Pros
Free POS plan and online store builder
Predictable flat-rate pricing
Niche features for retail, restaurant, and service businesses
Easy for staff and customers to use
Cons
Account stability issues
Does not accept most high-risk businesses
Payment processing structure not ideal for high-volume businesses
Why We Chose Square For Low-Volume Businesses
With an easy signup process, free and low-cost monthly plans, industry-specific POS software plans, free online store builder, and affordable POS hardware, Square is a great package for low-volume businesses with smaller budgets. Also, Square's transparent flat-rate payment processing structure is a good option for businesses processing less than $10K per month.
Related: Read our Square POS review to learn more about the POS software that comes with every Square account.
Square Pricing
Square offers POS software plans ranging from $0-$89/location/month and POS hardware ranging from $40-$799. Payment processing fees decrease on paid POS plans.
Get a free Clover Go card reader from National Processing when you sign up. Claim your card reader.
Pros
Clover POS system comes with plans
Lower in-person payment processing than Square
Lots of software integrations
Excellent online reputation
Cons
“Free” equipment may require a long-term contract with an early termination fee
Monthly fees charged
Why We Chose National Processing For A Free POS Terminal
We like that National Processing offers simple payment processing and a free Clover POS terminal with every plan. National Processing works with a variety of business types and integrates with several popular third-party software such as eCommerce store builders.
National Processing Pricing
National Processing pricing is as follows:
Basic In-Person Plan: $9.95/month and 2.5% + $0.10 per card-present transaction
Basic eCommerce Plan: $9.95/month and 2.9% + $0.30 per online transaction
Advanced Plan: $19+/month and 2.41% + $0.10 per transaction
Premium Plan: $9.95+/month and custom payment processing fees (plans for businesses processing $30K+/month)
All plans have a 3.5% + $0.10 payment processing fee on manually entered payments.
National Processing Features
Some of National Processing’s best features include:
ACH and eCheck processing
Mobile payment processing with a free SwipeSimple card reader
Free Clover Flex or Clover Mini POS system (if you sign a three-year contract)
Free reprogramming of your existing POS equipment (if possible)
Integrations with several eCommerce, POS, accounting, and customer relationship management software
Why We Chose Payment Nerds For Best Free Processor
Payment Nerds has a lot going for them. Not only do they offer plans with no monthly fee to businesses of all risk levels, but they also have transparent, flat-rate pricing with very competitive rates. While most high-risk processors are expensive for low- and medium-risk businesses, Payment Nerds offers affordable pricing to all.
Payment Nerds also has no-fee processing (cash discount and credit card surcharge programs) for businesses that want to pass their processing fees to customers so they can get completely free credit card processing.
As for Payment Nerds' feature set, it is quite expansive, with support for most business types, ranging from fledgling retail startups, to high-volume multichannel enterprises with global sales. Truly, this processor has something for everyone.
Payment Nerds Features
Some of Payment Nerds’ numerous features include the following:
Payment Nerds Features
Availability
Dedicated Merchant Account
PCI Compliance
High-Risk Accounts
International Accounts
Can accommodate Canadian businesses
Contactless Payments
ACH Processing
Digital Wallet Acceptance
EBT Acceptance
Virtual Terminal
Mobile POS Reader & App
No proprietary app, but integrates with popular mobile systems
Hosted Online Store
Hosted checkouts
Payment Links
Payment Gateway Integrations
Shopping Cart Integrations
POS Integrations
BNPL Integrations
API Documentation
Currency Conversion
Recurring Billing
Invoicing
Cash Discount Program
Cryptocurrency Processing
Payment Nerds Pricing
Payment Nerds’ pricing information is as follows:
Item
Value
Pricing Starts At
$0/month
Contract Length
Month-to-month
Processing Model
Flat-rate
Card-present Transaction Fee
1.59-2.59% + $0.03
eCommerce Transaction Fee
1.59-2.59% + $0.03
Keyed-in Transaction Fee
2.09-3.09% + $0.03
Equipment Cost
$0+
Note that, in general, acceptance of free processing equipment may ensnare you in a long-term service contract, so we recommend purchasing your equipment outright (from any provider, not just Payment Nerds).
Payment Nerds’ transaction fees vary depending on your company’s risk level, but none of the plans carry a monthly fee:
For low-risk businesses. This category includes businesses with stable revenue and lower chargeback rates — e.g., retail, professional services, manufacturing.
For medium-risk businesses. This category includes businesses moderate chargeback rates or operate in sectors with some regulatory complexities — e.g., auto parts, beauty products, subscription services.
For high-risk businesses. This includes businesses with elevated chargeback risks and regulatory hurdles — e.g., crypto traders, debt collectors, adult entertainers.
For startup businesses. This includes newer businesses that don’t have a lengthy track record to show revenue history, and businesses applying for first-time merchant accounts.
Transaction fees are higher if the card number is manually keyed in or if the sale is from a foreign card:
Promo: Earn up to $1,000 in statement credits over 3 months when you open a new U.S. Bank Payment Solutions account and complete qualifying activities. Member FDIC.
Offer:
- Open, and be approved for, a new U.S. Bank Payment Solutions Merchant Account (MID) by June 30, 2025.
- Keep the approved account in an open status and be actively accepting and settling card payments at the time the statement credit is issued.
- Get merchant fees refunded up to $1,000 over three months Claim this offer
Pros
Large, direct processor with numerous branches you can visit in-person
Dedicated account manager
Flat-rate pricing with month-to-month contract
Free plan available
Cons
Not suitable for high-risk businesses
Why We Chose U.S. Bank Merchant Services For Best Bank Merchant Account
U.S. Bank Merchant Services is a rarity in merchant services---a large, direct processor that offers personalized service to small businesses, without exorbitant fees or a long-term contract. All accounts come with a dedicated account manager as well as a full-service merchant account, which offers more stability compared to the aggregated accounts offered by payment service providers/third-party processors such as Square.
Throw in a free credit card reader and same-day funding for U.S. Business Bank Account holders, and U.S. Bank might just be the perfect bank merchant account for small businesses, especially if you also need a business bank account (or you already bank with U.S. Bank).
U.S. Bank Merchant Services Pricing
All U.S. Bank Merchant Services pricing packages are month-to-month, with no long-term contract:
More affordable payment processing for small ticket sales
Good customer support
Cons
Can be expensive for some low-volume merchants
$14.99 monthly fee
Why We Chose Host Merchant Services For Small Ticket & EBT Sales
We like that Host Merchant Services offers a unique small ticket program so that businesses with small average ticket sizes (laundromats, car washes, small theatres, etc.) can get a better deal on payment processing. We also like that small convenience and grocery stores can sign up for EBT payment acceptance onboarding and all businesses can sign up for a cash discount program and have customers cover the payment processing fees.
Host Merchant Services Pricing
HMS payment processing rates (varies by industry):
Exclusive Promo: PaymentCloud will give you $200 if they can't beat your current rate. Get Your Quote
Pros
High-risk specialists
Great public reputation
No account setup fee
No monthly minimums
Cons
No publicly disclosed pricing for high-risk merchants
Low-risk merchants may find a better deal elsewhere
Why We Chose PaymentCloud For High-Risk Businesses
PaymentCloud is one of our best high-risk merchant account providers because the company assists high-risk business owners with their merchant account applications and partners with several acquiring banks and back-end processors to maximize the odds that one of them will accept your business. As a high-risk merchant, you'll have a better chance of getting accepted by PaymentCloud than you will with other merchant service providers, even those that nominally accept high-risk businesses.
The company also strives to give you a fair deal on your high-risk merchant account.
PaymentCloud Pricing
Like most high-risk processors, PaymentCloud does not disclose its pricing on its website.
Read our guide to rolling reserves to learn how rolling reserves work and if you’ll need a rolling reserve fund.
Note: PaymentCloud may waive an early termination fee if you negotiate with them about your merchant agreement.
PaymentCloud Features
Features include:
Account application assistance
High-risk industry expertise
Excellent customer service
Mobile payment processing
Chargeback and fraud prevention tools
Virtual terminal included
Authorize.Net, NMI, or USAePay payment gateways are available
Discount pricing for nonprofits and high-volume businesses
Month-to-month contracts with no early termination fee
Cons
Not available to high-risk businesses
$49 account closure fee
Not for businesses charging less than $10K/month
Why We Chose Dharma Merchant Services For Large Businesses & Nonprofits
We appreciate that Dharma Merchant Services offers some of the lowest and most transparent payment processing rates available, especially for nonprofits and high-volume businesses (processing $100K/month at least). Dharma works with almost all business types, with special solutions for nonprofits, healthcare and veterinarian offices, B2B businesses, and lodging/hospitality businesses.
Note: The company's payment processing rates and tools are not suited for businesses processing less than $10K/month in sales.
Merchant Maverick has been researching the payment processing industry since 2009. Our writers have reviewed hundreds of credit card processors, merchant account services, and mobile payment apps, evaluating each provider carefully on several different metrics.
Weighted Rating Breakdown
Fees & Rates 35%
Contract 20%
Products & Services 15%
Sales & Advertising Transparency 15%
Customer Service 10%
User Reviews 5%
When comparing different payment processing companies and applications to one another, we consider numerous data points. Our experts start by comparing credit card processing rates, the presence of additional fees, contract length, sales practices, and the presence or absence of additional features and services, like point of sale software. Each provider is judged on its own merits and how well it stacks up to industry standards; then it is weighed against the other providers on the list.
We spend an average of 10-15 hours researching and updating each one of our lists, making sure every company or application included meets our internal standards for quality and reputation. Any list of recommended payment processors on our site might contain a mix of standard merchant accounts, third-party payment processors, mobile payment devices, and high-risk payment processors, depending on what our expert feels is the best fit for certain scenarios or business types.
For additional details about Merchant Maverick’s review and rating processes, please refer to any or all of the following methodology pages:
A merchant account is a special bank account that temporarily holds money from credit and debit card transactions. Once transaction payment processing is complete and your merchant services provider has taken out its fees, the remaining funds are transferred to your business bank account.
Merchant services providers manage merchant accounts and sometimes provide other goods or services such as credit card terminals and virtual terminals for online payments.
Types Of Merchant Accounts
There are two main types of merchant accounts.
Traditional Merchant Accounts
A traditional, full-service merchant account is a dedicated bank account that is all yours. It’s an ideal fit for:
High-risk businesses that need a stable account and can’t get approved for payment services from providers like Square
Large businesses that won’t benefit from the standard flat-rate payment processing that many payment providers offer
Negotiating a custom payment processing rate and contract terms
Traditional merchant account providers require you to provide business and personal information, go through a rigorous signup process, and may include more small monthly fees.
Payment Services Provider
A payment services provider like Square, Stripe, or PayPal, is an account that does not come with a unique merchant ID and the perks of a stable dedicated merchant account, but these accounts are easy to sign up for and start taking payments. Essentially, a traditional merchant account is more like your regular bank account, while payment services providers are like payment apps (PayPal, Venmo, etc.)
Payment services providers are ideal for:
Smaller businesses processing less than $5K/month in sales
New businesses looking for a fast and easy signup process
Which Merchant Account Provider Is Right For Your Business?
The best merchant account provider for your business offers the right pricing structure for your business size, built-in features or feature integrations you need to operate in your industry, and good contract terms.
If you want straightforward payment processing for a low-volume business and low monthly account fees, U.S. Bank, Chase, Square, or National Processing is right for you.
If you’re looking for the best interchange-plus pricing structure for your low-risk business, compare your rates and available features from Helcim, Host Merchant Services, and Dharma.
If you have a high-risk business, PaymentCloud is most likely the way to go, although National Processing and Host also work with some high-risk businesses.
Whichever merchant account you choose, make sure it integrates with one of the best POS systems if you’re going to take payments in person.
FAQs: Best Merchant Account Providers For Small Business
Do I need a merchant service provider?
You will need a merchant services provider to accept electronic payments of any kind, i.e., any non-cash payments.
Do you need good credit for a merchant account?
If your personal credit is fair, you may have to agree to stipulations like a rolling reserve to be approved. If your credit is very poor, you may be rejected for a merchant account or have to find a co-signer.
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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Our Experts Recommend PaymentCloud 🏆PaymentCloud can help almost any business save on credit card processing.Whether you're looking to save money on processing or to get approved for a merchant account, PaymentCloud can help.Get StartedAt PaymentCloud
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
Our Experts Recommend PaymentCloud 🏆PaymentCloud can help almost any business save on credit card processing.Whether you're looking to save money on processing or to get approved for a merchant account, PaymentCloud can help.Get StartedAt PaymentCloud
