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A free merchant account allows you to process credit card payments without a monthly fee. Find out which free merchant account is right for you.
Davina began writing for small businesses in 2018 and has since gained expertise in the SaaS industry. She earned her Bachelor’s of Arts in English Literature from SUNY Geneseo in 2018.
WRITTEN & RESEARCHED BY
Davina WardDavina began writing for small businesses in 2018 and has since gained expertise in the SaaS industry. She earned her Bachelor’s of Arts in English Literature from SUNY Geneseo in 2018.
Expert Contributor
Last updated onUpdated
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.
REVIEWED 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.
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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.
A free merchant account can help your business cut costs since you won’t have to pay any monthly merchant account fees or other recurring fees.
We have researched many free merchant services providers based on pricing, contract terms, and additional business tools to help you find the best free merchant account and start processing payments with no monthly fee and very few associated costs.
Bank merchant account for established low-risk businesses
0+/month
2.6% + $0.10 (card-present)
Bank merchant account for established low-risk businesses
Show Deal
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
A free merchant account allows your business to process payments with no monthly fee. However, all credit card transactions incur an interchange fee. Your merchant services provider also needs to make a profit. Thus, credit card processing fees cannot be completely avoided without eliminating credit card processing from your business.
Another type of “free credit card processing” offered by some merchant account providers is a cash discount or credit card surcharge plan. With those processing models, merchants are not charged processing fees, though these fees don’t just go away — they are passed on to your customers via a surcharge. Plans where merchants don’t pay processing fees do typically charge the merchant a monthly fee, however.
8 Best Free Merchant Accounts
The best free merchant accounts have no monthly fee, no monthly minimums, affordable processing rates, and minimal startup costs. Many of these providers offer “freemium” plans that can scale with your business if you want to pay for added services or features as your business grows.
Note that some of these processing companies are payment service providers offering aggregated merchant accounts, while others offer dedicated merchant accounts (which are typically more stable and less prone to funding holds).
Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.
Pros
Free POS software
Free online store builder
International & CBD support
Numerous eCommerce tools
Cons
High-risk businesses are usually not accepted
Some users report account instability issues
Why We Chose Square For The Best Free Small Business Tools
Square is one of our favorites because it offers a sweet spot of low processing fees, virtually no merchant account fees, and many freebies that seem to grow yearly. For instance, with a basic account, you can now get simple employee management, inventory management, and reporting, set up a website and accept payment online, and more.
Best of all, Square will accept even very small, new businesses with no time in business.
Like most of the processors on our list, Square is a "freemium" service that you can build on to add additional paid features if you want them, allowing you to only pay for what you need.
Square also offers plenty of add-on services and custom pricing for those vendors with annual sales that exceed $250,000 with an average ticket size of over $15.
Square Features
When it comes to free merchant accounts with a plethora of features, Square doesn’t have a lot of competition. Square’s features include:
Integration with Wave Accounting and Wave Invoicing (both free)
Set up recurring billing schedules with customers
Text or email invoices for payment
Cons
Must be on paid plan to get all features (and lowest processing rates)
Bank deposit schedule is up to seven days (for ACH payments)
No card readers to accept card-present payments
Why We Chose Wave Payments For Freelancers
We love that Wave offers payment processing services without the monthly fee, but we believe that Wave shines brightest as one of the most affordable (free) accounting and invoicing software options on the market. All said and done, Wave boasts free services that can fully support a small business or freelancer's needs when it comes to payment processing, invoicing, and accounting.
Wave offers some solid features, including unlimited invoicing and fast payouts. Wave doesn't offer a card reader to take card-present payments, so it wouldn't be the ideal solution for a brick-and-mortar store. However, Wave is arguably the perfect free merchant account option for the freelancer or independent contractor who wants an easy way to send invoices and accept online payments.
Wave Payments Pricing
Find Wave’s pricing information below. Wave also has a paid plan with more extensive features.
Item
Value
Pricing Range
$0-$16/month
Contract Length
Month-to-month
Processing Model
Flat-rate
Card-present Transaction Fee
N/A
eCommerce Transaction Fee
2.9% + $0.60 (3.4% + $0.60 for Amex); On Pro plan, first 10 transactions per month are 2.9% + $0.00 (3.4% + $0.00 for Amex)
Keyed-in Transaction Fee
2.9% + $0.60 (3.4% + $0.60 for Amex); On Pro plan, first 10 transactions per month are 2.9% + $0.00 (3.4% + $0.00 for Amex)
Equipment Cost
N/A
You may notice that Wave’s processing fee is more expensive compared to other options on this list, as they don’t offer a way to take card-present payments. That being said, their online processing fee is quite competitive, especially since many payment service providers charge more for invoiced transactions.
Wave Payments Features
Wave Payments features include:
Set recurring billing schedules for faster payments
We appreciate that Helcim offers free merchant accounts to all businesses, and all accounts come with interchange-plus payment processing. Interchange-plus payment processing is the most transparent payment processing pricing structure and is more cost-effective for larger businesses than flat-rate payment processing from providers like Square and Stripe.
Helcim is great for B2B and B2G businesses because of the great invoicing software as well as the company's new AI-powered automated Level 2 and 3 data capture, which will add security to transactions and reduce payment processing rates (more on this later).
Helcim also offers a suite of free business tools, including free POS software, an online store builder, detailed invoicing software, and a customer relationship manager.
Helcim Pricing
Find Helcim’s pricing information below. Payment processing rates vary depending on your processing volume and nonprofit status—high-volume businesses receive lower transaction fees, and nonprofits receive discounted nonprofit processing rates.
Item
Value
Pricing Range
$0/month
Contract Length
Month-to-month
Processing Model
Interchange-plus & cash discount
Account Setup Fee
$0
Card-present Transaction Fee
Interchange + 0.15-0.40% + $0.06-$0.08
eCommerce Transaction Fee
Interchange + 0.15-0.50% + $0.15-$0.25
Keyed-in Transaction Fee
Interchange + 0.15-0.50% + $0.15-$0.25
Equipment Cost
$99 or $329
Helcim Features
Helcim’s free merchant account comes packed with lots of built-in features, plus useful add-ons that won’t break the bank. Here’s a look at Helcim’s features:
No monthly fees, PCI compliance fees, setup fees, or other miscellaneous fees related to just having a merchant account
Accept international payments
Inventory management, CRM, and secure card storage services
Chargeback refunds if you win the dispute ($15 otherwise)
Cash discount program that works for invoices, payment requests, and standard transactions
Automated Level 2 and 3 card data capture (e.g., zip code, freight and duty information, commodity codes) using AI
Automated Level 2 and 3 card data capture reduces payment processing fees because the card-issuing banks lower interchange rates when you give them more transaction information. This is a great feature for B2B and B2G businesses that include more transaction information, such as tax IDs, and accept Level 3 interchange eligible credit cards.
When To Use Helcim
You want a full-service merchant account for in-person, eCommerce, or B2B sales
You have a higher-volume business processing at least $10K-$20K/month
Same-day funding available for Chase business account holders
TouchBistro integration for restaurants
Cons
Credit card terminals come with lengthy contract
Not a fully developed POS solution
$9.95/month fee to accept eCommerce payments
Why We Chose Chase Payment Solutions For Canadian Businesses
Chase Payment Solutions is a direct payment processor, unlike most merchant account providers which use another bank for their backend processing.
This solution is good for small businesses that are also Chase business bank account holders, as Chase banking customers can 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.
Chase has operated in Canada for more than 20 years and is among the most trusted Canadian payment processors, making them one of the best merchant accounts for Canadian businesses. (Chase also accepts US businesses and some European businesses.)
Chase Payment Solutions Pricing
Chase is a traditional merchant account and offers competitive flat-rate pricing. Chase Payments Solutions for payment processing are as follows. Note that the following pricing is in USD but Canadian pricing is likely comparable.
2.6% + $0.10 per transaction for card-present transactions
2.9% + $0.25 for eCommerce and over-the-phone transactions (monthly fee starting at $9.95/month)
3.5% + $0.10 per transaction for keyed-in-card and payment link transactions
Note: Interchange-plus pricing is available, but you will have to pay at least $10/mo.
Chase Payment Solutions Features
Chase’s features allow small businesses to accept payments on the go and keep processing costs impressively low. Here’s a look at Chase Payment Solution’s features:
Same-day funding for Chase business bank account customers
Sign up for an account online (less common with bank merchant accounts)
Why We Chose Stripe For Small eCommerce Businesses
Stripe is an excellent choice best suited for small eCommerce businesses. While Stripe is built with the developer in mind, you'll find loads of integration options and subscription tools that allow you to fully customize your customer experience without always needing advanced technical expertise.
Stripe offers robust features, including developer tools, advanced reporting tools, marketplace and subscription tools, as well as multi-currency support. You can also use Stripe to accept in-person payments with a card reader or POS integration, as well as ACH payments for no additional monthly fee.
Stripe Pricing
Stripe’s payment processing rates are very straightforward:
2.7% + $0.05 for card-present transactions
2.9% + $0.30 per online transaction (+ 1.5% for international cards & instant payouts; + 0.4% for invoice payments)
3.4% + $0.30 for manually entered cards
ACH payments for 0.8% (capped at $5)
No additional fee to process payment link transactions or recurring payments
Stripe also offers plenty of options for additional tools and services, including recurring payments, tax support, identity verification, and more. These costs can add up for businesses with complex payment needs. Fortunately, Stripe offers very transparent pricing across all its services, so estimating costs should be a breeze.
Stripe Features
Stripe’s features are pretty generous for its price range. Here’s what you can expect from Stripe’s payment processing:
Pricing for POS and other add-ons is not disclosed
Less-established businesses may not be approved
Why We Chose Payment Nerds For Established High-Risk Businesses
Payment Nerds is a unique merchant account option that offers full merchant accounts with no monthly fee, even to high-risk businesses. Low-risk businesses will pay lower transaction fees but even the rates for high-risk businesses are quite reasonable ---and you won't have to pay the other myriad account fees that typically come with high-risk merchant accounts.
A rarity among free processors, Payment Nerds specializes in providing comprehensive integrated payment solutions for growing businesses, aiming to be an all-in-one payment solution for all business types. Payment Nerds does accept some startup businesses, but established businesses have a better chance of approval (and will get lower processing fees).
Payment Nerds Pricing
Here is an overview of Payment Nerds pricing. There is no monthly fees and no setup fees. Payment processing fees vary depending on your business’s risk level.
Item
Value
Pricing Range
$0/month
Contract Length
Month-to-month
Processing Model
Flat-rate
Account Setup Fee
$0
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+
We assume that add-on services such as POS features and custom integrations carry a monthly fee, but you will have to contact Payment Nerds for add-on pricing.
Payment Nerds Features
Payment Nerds has a number of attractive features, including:
Dedicated account manager for customer support needs
Multicurrency support for accepting international payments
Ability to send payment links & invoices
Hosted, customizable online checkouts
Recurring billing support
Mobile invoicing
eCommerce shopping cart integrations
Cash discount plan
When To Use Payment Nerds
You have an established, growing business and need to scale up
You need multichannel processing solutions to sell in-person and online
You want high-risk processing that doesn’t come with high fees or a long-term contract
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 many in-person branches
Stable, dedicated merchant account
talech POS system options, including free talech mobile POS
Well-suited to small local businesses like restaurants, retail, & service-based businesses
Cons
Businesses with high risk level & a short time in business probably won’t qualify
Lengthier underwriting process (compared to an aggregated merchant account provider like Square or PayPal)
Why We Chose U.S. Bank For Established, Low-Risk Businesses
U.S. Bank is a great free processing option for low-risk local businesses (for example, cafes retail stores, landscaping businesses) that need a traditional merchant account to reliably accept in-person and/or online payments.
If you need advanced point of sale features you will pay a monthly fee, but if you just need a basic mobile POS, U.S. Bank can set you up with a talech Mobile account that includes a free mobile POS app and even a free credit card reader.
When it comes to getting approved for an account, banks like U.S. Bank are a bit more discerning than payment service providers that offer aggregated merchant accounts (like Square, Stripe, and PayPal) and it can take a bit longer to get set up. However, once you have secured an account, you are less likely to run into issues down the road, as the processor has already vetted your business thoroughly.
U.S. Bank Merchant Services Pricing
Below is an overview of U.S. Bank’s pricing. Note that new accounts can get a free credit card reader, but a one-time account setup fee does apply. Monthly fees depend on your POS plan; the basic mobile plan is free.
Item
Value
Pricing Range
$0-$99+/month
Contract Length
Month-to-month
Processing Model
Flat-rate
Account Setup Fee
$99
Card-present Transaction Fee
2.6% + $0.10
eCommerce Transaction Fee
2.9%+ $0.30
Keyed-in Transaction Fee
3.5% + $0.15
Equipment Cost
$0+
U.S. Bank Merchant Services Features
Some of the features you’ll get with a U.S. Bank Merchant Services account include:
Same-day funding for U.S. Bank business checking account holders
Free mobile POS app with free credit card reader
Brick-and-mortar branches you can visit in person (to deposit cash, for example)
A virtual terminal to key-in card information online
Comparatively high payment processing rates for eCommerce
Some complaints about account stability issues
Why We Chose PayPal For Accepting A Variety Of Payment Types
We like that PayPal's pricing is very transparent. Although PayPal's online payment processing fees are on the higher end of the pricing spectrum, businesses will appreciate that PayPal boasts no cancellation fees, no monthly fees, and no long-term contracts. However, PayPal's biggest selling point is how ubiquitous the service is, including its impressive payment support in over 200 countries, making it great for international eCommerce.
PayPal also boasts one of the most extensive arrays of payment options, including a built-in Buy Now, Pay Later option, QR code payment links, cryptocurrency payments, international payments, and Venmo. You can also use PayPal to accept in-person payments using PayPal Zettle, a mobile POS with no monthly fee and low processing fees.
PayPal Pricing
PayPal’s processing fees are definitely on the higher end of the pricing spectrum when you just look at their fees for online payment options.
However, with PayPal Zettle, PayPal’s in-person POS and mobile processing solution, merchants are only charged 2.29% + $0.09 (for card-present transactions). QR code payments through Zettle are also only 2.29% + $0.09.
Whether you use PayPal to accept payments online or in-person (or both), there is no monthly fee.
PayPal Features
As one of the most recognizable names in payment processing, PayPal has the market on payment democratization and customer trust. You’ll get simplicity and ease of use, alongside reliable payment processing and impressive seller protections.
Here’s a look at PayPal’s features:
Free ACH transfers
Free crypto transfers (to/from another PayPal or Venmo account)
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:
Although it’s not possible to process credit card payments for free, it is possible to save on your payment processing costs. To lower your business’s payment processing costs, you can attempt to directly reduce how much it costs your business to process payments or try to offset your business’s processing costs.
How To Lower Credit Card Processing Costs
There are several ways to lower your business’s payment processing costs. However, there are many options, so you’ll need to take time to determine which solution would best suit your business’s budget and current state.
To process card payments for free, you can have your customers cover the processing costs of their credit card payments. To avoid payment processing fees, you’ll need to implement a convenience fee or practice credit card surcharging.
Both convenience fees and surcharging are designed to help businesses offset payment processing costs by adding additional fees to customer transactions that are paid via credit card.
However, there are several legalities involved in the practice of both surcharging and charging convenience fees. If you intend to offset credit card processing costs via surcharging or convenience fees, you’ll need to do your due diligence to ensure that you implement the practice legally and avoid scaring your customers away.
Which Free Merchant Account Is Best For Your Business?
While you can’t avoid payment processing fees while accepting card payments in most cases, you can significantly reduce your financial burden by choosing a free merchant account. Free merchant accounts keep fees down and offer month-to-month billing that allows you to pay for what you use — they are great cost-cutting options.
Despite an enticing price point, sometimes free isn’t the way to go. Paid merchant accounts with monthly fees often include a wealth of additional features that extend beyond payment processing.
For growing or larger businesses with a less limited budget, we recommend checking out some of the best small business credit card processing companies for a look at some of the top payment processing options on the market.
However, if you’re looking for a payment processing option that offers a better balance between cost and features, we recommend looking at some of the best cheap payment processing companies instead.
Davina began writing for small businesses in 2018 and has since gained expertise in the SaaS industry. She earned her Bachelor’s of Arts in English Literature from SUNY Geneseo in 2018.
View Davina Ward's professional experience on LinkedIn.
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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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