6 Fantastic Retail Merchant Services With Everything You Need To Run Your Shop
The best credit card processor for retail businesses are reasonably priced with flexible terms, have robust services, and excellent customer support.
Frank has been writing about payment processing and business services since 2015. He is a retired Air Force officer and a former practicing attorney. He has a Bachelor of Science degree in Psychology from The Pennsylvania State University and a Juris Doctorate degree from the Ventura College of Law, and currently resides in Paso Robles, California.
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Frank KehlFrank has been writing about payment processing and business services since 2015. He is a retired Air Force officer and a former practicing attorney. He has a Bachelor of Science degree in Psychology from The Pennsylvania State University and a Juris Doctorate degree from the Ventura College of Law, and currently resides in Paso Robles, California.
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Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
For retail business owners, choosing the right credit card processor is an important — and complicated — decision. The wrong processor can cost you too much money, fail to deliver essential features that you need, and result in a frustrating customer service experience when problems arise.
Naturally, you can avoid these pitfalls by choosing a processor that offers reasonable prices, flexible contract terms, retail-specific products and services, and top-notch customer support. In general, we’ve found that many of the best credit card processors for small businesses, in general, are also great choices for retail or omnichannel businesses.
In this article, we’ll profile each of our top contenders and explain why we thought they were the best options for a small retail business. We’ll also describe all the features and services you should be looking for in a credit card processor, and the future of retail credit card processing, as there are many developments on the horizon that you should be aware of.
The 6 Best Retail Credit Card Processing Companies
Choosing the best credit card processor for your small retail business comes down to three main factors: (1) features, (2) pricing, and (3) customer support. Most of our top choices offer month-to-month billing with no long-term contracts or early termination penalties. You should also consider which type of processing rate plan will be the most cost-effective for your business.
Square: Best For Startups Or Seasonal Retail Businesses
Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.
Pros
All-in-one payments system with an impressive feature-set
No monthly fees
Predictable flat-rate pricing
Ideal for low-volume merchants
Cons
Account stability issues
Not available to most high-risk industries
Why We Chose Square For Retail Credit Card Processing
Perennial small-business favorite Square is an excellent choice for a retail or omnichannel business. Sign-up is as easy as it gets, pricing is simple and transparent, and there are no long-term contracts to worry about. However, be aware that as a payment service provider (PSP), Square doesn’t offer the stability of a full-service merchant account. It also doesn’t accept high-risk businesses (with the exception of a special program for CBD merchants).
Square For Retail is the company’s special program for retail businesses that need something more than just a simple credit card reader to run their shops. Square For Retail includes an iPad-based POS system that features an entirely redesigned user interface, optimized for searching and scanning to manage a large inventory.
You’ll also need processing hardware to accept in-person payments, and Square offers a variety of affordable Square-branded credit card readers that work seamlessly with the Square For Retail software. Equipment can be purchased outright or on an installment plan for some of the more expensive options.
Square’s flat-rate pricing is ideal for new or low-volume businesses. However, be aware that this type of pricing actually becomes more expensive at higher monthly processing volumes. Luckily, Square offers custom pricing to merchants processing more than $250,000/year.
Square Pricing
No setup or application fees
$0/month for Square Free account ($60/month for Square For Retail Pro plan)
2.6% + $0.10/card-present transaction
2.9% + $0.30/online transaction
3.5% + $0.15/manually keyed-in transaction
1%/ACH transaction (minimum $1 charge)
No ACH reject or chargeback fees
Square Contactless & Chip Reader — $49 each
Square Stand With Contactless & Chip Reader — $169
Square Terminal — $299
Square Register — $799 (or $39/month for 24 months)
Square Features For Retail Credit Card Processing
Aggregated account for credit and debit card processing
Mobile card reader (magstripe-only) included with an account
EMV and NFC-capable card readers are available
Square Register POS system available
ACH processing included with every account
Square Online Store for eCommerce sales channel
Analytics and reporting available through Square Dashboard
Contract Requirements/Warnings
All Square accounts are offered on a month-to-month basis, with no long-term contracts or early termination penalties. You can close your account at any time, but be aware that Square’s proprietary processing hardware cannot be reprogrammed to work with another processor.
Month-to-month billing with no early termination fees
No monthly minimums
Web hosting included with each account
Cons
Can be expensive for some low-volume merchants
Why We Chose Host Merchant Services For Retail Credit Card Processing
We chose Host Merchant Services as one of our top picks for retail credit card processing due to its wide range of products and services, flexible contract terms, and excellent pricing transparency. Host Merchant Services offers its own proprietary Bonsai POS system, as well as the popular Clover and Vital POS product line. It’s also one of the few merchant services providers that include free web hosting for online sales as a standard account feature.
Host Merchant Services fully discloses its pricing on its website, and its combination of interchange-plus processing rates and low account maintenance fees make it a very affordable choice for any small retail business. The company also accepts a wide variety of high-risk industries. Be aware, however, that high-risk merchants will be onboarded by a different backend processor, and pricing and contract terms will be very different (and much more expensive) than those advertised for low-risk businesses.
Host Merchant Services Pricing
No application or setup fees
$14.99/month account fee
Interchange + 0.25% + $0.10/retail transaction
Interchange + 0.35 + $0.10/eCommerce transaction
$5.00/month gateway fee (optional)
$15 chargeback fee
No PCI compliance fee
No early termination fee
Host Merchant Services Features For Retail Credit Card Processing
Full-service merchant accounts
Accepts most high-risk industries
Full line of countertop and mobile credit card terminals
Free terminal available to merchants processing over $20,000/month
Vital and SwipeSimple mobile processing solutions
Proprietary Bonsai POS system available
Clover and Vital POS systems are available
Authorize.Net payment gateway
Proprietary HMSExpress payment gateway
Virtual terminal included
Web hosting included with an account
Cash discounting program available
Contract Requirements/Warnings
Host Merchant Services offers month-to-month billing for all low-risk businesses. There are no long-term contracts or early termination fees. Contract terms, however, will be different for high-risk merchants and will likely include a long-term contract of some kind.
Not recommended for businesses processing less than $10,000/month
Not available to high-risk industries
Why We Chose Dharma Merchant Services For Retail Credit Card Processing
We chose Dharma Merchant Services as one of our top processors for retail businesses primarily on the basis of the company’s commitment to full pricing transparency. Dharma is also an excellent choice for any low-risk small to medium-sized business that’s looking for interchange-plus pricing and Clover hardware. Like most of our other top choices, you’ll also enjoy month-to-month billing with no long-term contracts or early termination fees (although a fully-disclosed $49 account closure fee is required if you close your account). Dharma does not, however, accept high-risk businesses.
Dharma Merchant Services does not require long-term contracts of any type. There are no early termination fees, and all billing is on a month-to-month basis. While you can close your account at any time, be aware that a $49 account closure fee will be charged.
Why We Chose Helcim For Retail Credit Card Processing
Canadian processor Helcim serves low-risk merchants in both the United States and Canada. With no monthly fee, the company offers one of the lowest-cost ways to get a full-service merchant account. Helcim’s pricing is comparable to Square’s, with the added bonus that you won’t have to settle for an aggregated account like you would with Square. Instead, you’ll get a full-service merchant account that will be at very little risk of suddenly being frozen or shut down.
For processing hardware, Helcim offers the proprietary Helcim Card Reader, which can function as a countertop terminal or as part of a mobile payments system or POS. For a small retail business, Helcim offers everything you need at a very low price. The company has also received a lot of praise from merchants for its excellent customer support.
The one tradeoff to consider, however, is that Helcim is able to keep its pricing very low in part by not accepting any high-risk merchants. If you’re in a high-risk category, you’ll have to look elsewhere for credit card processing.
Proprietary Helcim Card Reader for in-person payments
Helcim Payments app for mobile processing
Virtual terminal included with each account
Helcim POS software (requires tablet, laptop, or desktop computer)
Access to Helcim API for customized credit card payments
Contract Requirements/Warnings
Helcim’s contracts are all on a month-to-month basis and don’t require a long-term commitment. You can cancel your account at any time without penalty. Be aware, however, that the Helcim Card Reader and Helcim POS software will not work with any other credit card processor.
Get a free Clover Go card reader from National Processing when you sign up. Claim your card reader.
Pros
Interchange-plus pricing standard
Offers month-to-month billing with no early termination fee (ETF)
A good option for budget-conscious merchants
Cons
Long-term contract with early termination fee required in exchange for free terminal
Why We Chose National Processing For Retail Credit Card Processing
Another great low-cost option, National Processing is an excellent choice for merchants looking for transparent pricing and access to the popular line of Clover POS products. National Processing offers full support for retail merchants, including a variety of credit card terminals that you can purchase outright or include for “free” with your account. Note that a long-term contract will apply in the latter case.
National Processing offers merchants a choice between interchange-plus and membership pricing, although we generally recommend the interchange-plus option for small businesses due to the high upfront cost of the monthly subscription fee for the membership pricing plan. ACH processing is also available as an add-on but requires an additional monthly fee. Like many other providers these days, National Processing also offers a cash discounting program if you want to pass your credit card processing costs onto your customers. This program stands out from similar offers from competing providers in that it does not require a monthly fee.
National Processing offers excellent customer service and technical support and is one of the cheapest options available to small retail businesses. In calculating your overall costs, be aware that most Clover terminals and POS systems (with the exception of the mobile Clover Go card reader) require a monthly software subscription fee on top of your other costs.
National Processing Features For Retail Credit Card Processing
Offers a choice between either interchange-plus or membership pricing plans
Offers mobile processing with a Clover Go card reader
“Free” credit card terminal available
No long-term contract if processing hardware is purchased outright
Offers ACH and echeck processing as an add-on
Contract Requirements/Warnings
National Processing generally offers month-to-month billing with no long-term commitment or cancellation penalties. However, if you accept a free credit card terminal with your account, you’ll also have to agree to a standard three-year contract. Luckily, National Processing only enforces the early termination fee if a merchant drops them in favor of a competing provider.
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Pros
No account setup fee
Accepts a wide variety of high-risk industries
“Free” credit card terminal available
Excellent customer support
Cons
No publicly disclosed pricing
Why We Chose PaymentCloud For Retail Credit Card Processing
PaymentCloud serves low, medium, and high-risk businesses but excels as one of the best merchant account providers for high-risk businesses. Industries accepted include nutraceuticals and supplements, guns and firearms, cigarettes and tobacco, vape and e-cigarettes, and hunting and outdoor equipment, plus many others.
PaymentCloud stands out for the very hands-on approach it takes during the initial application and underwriting process. After approval, it continues to work closely with merchants for follow-up support. PaymentCloud gives you a dedicated account manager to take care of problems that may arise, and that’s probably why we don’t see many customer complaints on the internet.
Like most high-risk processors, PaymentCloud doesn’t publish processing rates on its website. It works with many back-end processors to ultimately find one that will take your business, so rates and fees will be tailored to each merchant. PaymentCloud offers both tiered and interchange-plus pricing models, so if you’re only given a tiered rate, be sure to ask for an interchange-plus rate quote, too.
Be prepared that your rates will be higher than those of an average-risk merchant and that you’ll likely have to sign a multi-year contract with a lot of restrictions and fees. This is not ideal, but it’s fairly typical for a high-risk business.
PaymentCloud can give you one free loaner credit card terminal with your account, but you must return it if you stop processing with PaymentCloud. PaymentCloud also sells terminals from several different manufacturers, if you wish to buy one outright. The terminals are all EMV-compliant and can support mobile wallets (such as Apple Pay and Google Pay) through NFC. The company also offers a full range of point-of-sale (POS) systems if you need something with more features and capabilities than a standard terminal.
PaymentCloud Pricing
No account setup fee
No monthly minimum (low-risk accounts)
Interchange + 0.05%-0.30% + $0.08-$0.10 per transaction (low-risk accounts)
Processing rates vary by acquiring bank/back-end processors (high-risk accounts)
$15/month account fee (low-risk accounts)
Account fees vary by the acquiring bank/back-end processor (high-risk accounts)
PaymentCloud Features For Retail Credit Card Processing
Mobile processing solution available
Offers a variety of countertop credit card terminals
PaymentCloud usually requires a long-term contract for most high-risk accounts, although specific terms and conditions will vary depending on which backend processor underwrites your account. Low-risk merchants can usually receive month-to-month billing if they buy their equipment outright or have an existing terminal reprogrammed. Accepting a free terminal with your account will require you to agree to a long-term contract.
Why We Don’t Recommend These Retail Credit Card Processing Options
Brand-name recognition goes a long way in the credit card processing industry, but some big-name processors simply aren’t well-suited to the needs of a retail business. Shopify Payments and Stripe are both well-known and respected companies, but they’re not the best choices if all or most of your sales are in-person.
Shopify Payments
Shopify is almost synonymous with beautiful and easy-to-build online stores. However, Shopify’s payment services are focused mostly on online stores that can also accommodate some physical sales. While we think Shopify is a great value for ecommerce businesses, its features for retail sales aren’t as robust. It’s a decent option for omnichannel businesses but won’t be a good fit unless at least half of your sales are online. Retail-only merchants will definitely want to look elsewhere, as they simply won’t be able to use most of Shopify’s best features.
Stripe Payments
Stripe Payments originally launched as an ecommerce-only payments platform and didn’t support retail businesses at all. Today, however, Stripe offers Stripe Terminal, a very bare-bones mobile processing system that uses BBPOS card readers. While Stripe might be a viable option for a business that primarily accepts online payments but needs to process an occasional in-person sale, it won’t work well for a busy retail business that processes a high volume of in-person transactions. Note that we expect this situation to change in the near future, as Stripe is actively working to expand the currently-limited capabilities of Stripe Terminal.
What Do You Need In A Retail Credit Card Processing System?
Traditionally, a brick-and-mortar store could operate just fine with a single, magstripe-only credit card terminal to accept credit and debit card payments. Those days, however, are long gone. Today, most retail merchants find it essential to have in place a full credit card processing system that can accept a wide variety of payment methods and perform many other functions related to running their businesses on a daily basis.
At a bare minimum, any business accepting in-person payments will need a modern card reader or terminal that can accept EMV cards. Processing hardware that uses NFC technology to accept contactless payments and digital wallets like Apple Pay and Google Pay is also a good idea, as these payment methods are rapidly gaining popularity, and consumers have come to expect to be able to use these payment methods when shopping.
Processing hardware currently includes the following general categories:
Mobile card readers: These can be used in conjunction with an app to make payments virtually anywhere. They can also be used with a virtual terminal to use your laptop or desktop computer as a credit card terminal.
Countertop credit card terminals: Modern terminals can now accept EMV & NFC-based payment methods, as well as magstripe (in most cases). Most new models also feature color touchscreens, customer-facing displays, and “smart” technology that allows you to add extra apps to your device. Wireless models are also available for taking payments in the field, but they require a monthly cellular data plan and tend to be bulky due to the need for a large battery. We also recommend selecting a terminal with a PIN pad to take advantage of lower PIN debit transaction processing fees.
Point-of-sale (POS) systems: These devices are very popular among restaurant owners but can also be very useful for a traditional retail store as well. The ability to add apps for inventory management, employee scheduling, and other functions is a plus, but some devices (particularly the Clover brand) require monthly software subscription fees in addition to the cost of the device itself.
In addition to basic processing hardware, you’re going to want to have access to services and features that help you run your business. While it’s possible (and sometimes necessary) to cobble together a system using several third-party products, it’s usually better if you can obtain everything you need from your credit card processor. This ensures compatibility and gives you a single point of contact for technical support and customer service. Additional services commonly used by retail businesses include the following:
What's The Future Of Retail Credit Card Processing?
Retail credit card processing has changed quite a bit within the last few years.
EMV chip cards have (mostly) replaced older magstripe technology as the default method of card acceptance, and contactless payment methods using NFC technology surged in popularity during the COVID-19 pandemic. Here’s a preview of some of the significant trends in retail credit card processing that are either happening right now or are just on the horizon:
Magstripe payments are going away. While most merchants have already made the switch to EMV, there are still customers with magstripe-only cards out there. However, that won’t be the case for much longer. Mastercard and Visa plan to begin issuing new cards within a few years that don’t have a magstripe at all, and eventually, the technology will disappear altogether. It’s already becoming common for mobile credit card readers (like the Square Reader for contactless and chip) to support EMV and NFC payments, but not magstripe.
Alternative payment methods that don’t require a credit or debit card are gaining in popularity. Apps like Venmo, Zelle, and Square’s Cash App offer customers an easy way to make a payment without using a physical card. QR code payments are also useful in a retail setting. We recommend incorporating as many of these alternative payment methods as you can to give your customers more flexibility in completing a purchase.
Real-time payments are coming soon. While there are already several real-time payment services available, the Federal Reserve’s FedNow real-time payment service (which launches in July 2023) will make it much easier for small business owners to utilize this capability. Instead of having to wait the usual 2-3 business days for transactions to settle, you’ll get your money almost instantly – even on weekends. This can be a great feature for businesses that depend on a steady day-to-day cash flow.
Which Retail Credit Card Processor Is Right For Your Business?
While the top credit card processors we’ve profiled above are all excellent choices, finding the best provider for your business ultimately comes down to matching up the services you need — and what you can afford — with what a provider has to offer. Each business has unique needs, so there’s no one-size-fits-all “best” credit card processor that will work equally well for everyone. In evaluating your choices, consider the following factors in making a selection:
Contract flexibility. Even if you think you’ll be happy with your chosen provider, it’s always best to have a month-to-month contract that allows you to switch providers if things don’t work out. We strongly recommend avoiding long-term commitments unless you’re in a high-risk industry and have no choice.
Reasonable pricing. In addition to looking for the lowest monthly fees, you’ll want to select a processing rate plan that’s best for your business. While flat-rate pricing generally works best for low-volume or new businesses, interchange-plus pricing is usually cheaper for mid-sized and larger enterprises. Very high-volume businesses can save money with membership pricing, but you’ll want to carefully analyze your anticipated costs before switching to this option. Tiered pricing, unfortunately, offers no advantages to any business and should be avoided.
Availability of add-on services. Most businesses need at least some ancillary services in addition to basic credit card processing. Be sure that the provider you choose offers the services that you need so you don’t have to go to a third party to get them.
Reputable customer service. Merchants often ignore the importance of good customer support — until they need to use it. Look for a provider that has a good reputation in this area, as the payments industry generally doesn’t do well in terms of customer service.
Good luck!
FAQs: Retail Credit Card Processing
What is payment processing in retail?
Payment processing in retail allows merchants to accept credit and debit cards as forms of payment in their brick-and-mortar stores. Retail payment processing requires a credit card terminal to read the customer’s card, and a merchant account (or payment service account like Square) to process the transaction and disburse funds to the merchant.
What is the cheapest way to take card payments?
For a very small or newly-launched business, a payment service provider (PSP) like Square usually offers the cheapest way to accept credit card payments. PSPs generally charge no monthly fees and don’t require a long-term contract. They also frequently use flat-rate pricing, which makes transaction processing costs very predictable and easy to understand.
Which company is the best for retail credit card processing?
There is no single best company for retail credit card processing. The best company for your business will be the one that can deliver the services you need at the lowest overall cost, while also providing high-quality customer service. We also recommend selecting a company that bills on a month-to-month basis and does not require you to sign a long-term contract.
Do I need a payment gateway for retail credit card processing?
No. Payment gateways are not essential for retail credit card processing, and most brick-and-mortar stores have operated without them for many years. Today, however, payment gateways are becoming increasingly common in a retail setting as part of an integrated payments platform that ties in-person and online sales together. Using a payment gateway in a retail setting enables many additional functions, including analytics and reporting, inventory management, and more. Payment gateways also enable the use of advanced payment security and anti-fraud measures, such as credit card tokenization.
In Summary: The 6 Best Retail Credit Card Processing Companies
Frank has been writing about payment processing and business services since 2015. He is a retired Air Force officer and a former practicing attorney. He has a Bachelor of Science degree in Psychology from The Pennsylvania State University and a Juris Doctorate degree from the Ventura College of Law, and currently resides in Paso Robles, California.
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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.
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