The best merchant services have competitive processing fees and accept a range of payment types. Some stand out for accommodating high-risk merchants, while others sell a variety of POS systems and card readers, or integrate with popular business apps. Many times, you can get most of the merchant services you need (e.g., POS systems, credit card processing) from a single provider.
Merchant services give your business the tools it needs to accept payments in store, online or both. They include a range of services and products like credit card processing, merchant accounts and point-of-sale (POS) systems. Credit card processing companies, for example, fulfill merchant services by facilitating payment processing and sometimes even by providing POS hardware. Banks and POS system providers also offer merchant services.
For online payments, merchant services may include e-commerce platforms that allow businesses to sell goods online and payment gateways that provide a secure place for online customers to enter their card information. For in-person payments, merchant services involve credit card readers and other POS hardware devices that make it possible to accept different payment methods.
Here’s our list of the best merchant services and what sets them apart.
250+ small-business products reviewed and rated by our team of experts.
95+ years of combined experience covering small business and personal finance.
75+ categories of best business software selections.
Objective and comprehensive ratings rubric. (Learn more about our star ratings.)
NerdWallet's small-business software content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business software, including merchant services, payment processing, accounting and payroll. Their work has appeared in The Associated Press, The Washington Post, Nasdaq, Entrepreneur, ABC News, Yahoo Finance and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
Our Nerdy picks for
Our pick for
Flat-rate option
Square POS
5.0
NerdWallet rating
on Square POS's secure website
Monthly fee
$0.00
and up.
Square is our top pick for flat-rate pricing with no monthly fees, low transaction rates and free virtual terminal.
Read full review
Pros
No monthly fee.
Low transaction rates.
No long-term contracts.
Quick setup.
Free card reader.
Free virtual terminal.
Free dispute management services for chargebacks.
No processing fees on customer refunds.
Cons
24/7 live phone support is not available for payments.
Readers are not compatible with Windows devices.
Read full review
Our pick for
Interchange-plus processing
Helcim
5.0
NerdWallet rating
on Helcim's secure website
Monthly fee
$0.00
Unlike flat-rate payment processors that charge the same transaction fee across different types of credit cards, Helcim uses an interchange-plus pricing model. This means your business saves when a customer uses a card with low interchange rates. Helcim also offers volume discounts if you process more than $50,000 monthly, which is a plus for high-volume businesses. And if you need hardware for taking payments in-person, the company sells its own smart terminal and mobile card reader, too.Read full review
Pros
Low processing fees.
Transparent pricing.
Volume discounts.
No contracts.
No monthly fees.
No cancellation fees.
Free virtual terminal.
Fully hosted online store options.
Cons
Customer support isn't available 24/7.
No free card reader.
Read full review
Our pick for
Flat rate for online sales
Stripe
5.0
NerdWallet rating
on Stripe Payments' secure website
Monthly fee
$0.00
Stripe is best for online sales because it supports processing payments in multiple currencies, allowing customers to charge in their native currency and businesses to receive funds in theirs.
Read full review
Pros
No monthly fees.
Low transaction rates.
Supports over 135 currencies.
Your account can be terminated at any time.
Developer platform.
Support is available 24/7 by phone request, chat and email.
Tools to customize payment flows on your website.
Cons
No free reader.
Virtual terminal allows the customer to enter card information but not the merchant.
Read full review
Our pick for
Free terminal
National Processing
5.0
NerdWallet rating
on National Processing's secure website
Monthly fee
$9.95
for Basic In-Person Package.
National Processing offers different plans based on whether you’re accepting payments in-person or online, and it promises $500 if it can’t beat high-volume ($10,000 or more in monthly sales) merchants’ current rates. It works with some high-risk companies, as well as retail stores, e-commerce businesses, restaurants and service-based businesses. New merchants may also receive a free terminal, depending on their qualifications.
Read full review
Pros
- Low in-person processing fees for a flat-rate processor.
- No termination fees or long-term contracts.
- Works with high-risk merchants.
- New merchants may qualify for a free terminal.
- 24/7 phone support.
Cons
- Fees may be higher if you process less than $10,000 per month.
- Basic plans for processing in-person and online transactions are separate.
- Mobile card reader is pricier than some competitors.
Read full review
Our pick for
Tailored interchange-plus rates
Payment Depot
4.5
NerdWallet rating
on Payment Depot's secure website
Payment processing fees
0.2% + $0.00
to 1.95%, plus interchange.
Monthly fee
$0.00
Payment Depot is a payment processor owned by Stax, a membership-style payment processing platform. But as opposed to offering monthly subscription pricing like Stax, it uses an interchange-plus pricing model and charges no monthly fee. The margin Payment Depot charges on top of interchange varies, so businesses must reach out directly for specifics.Read full review
Pros
- Businesses save when customers use cards with low interchange rates.
- No cancellation fees.
- Compatible with several POS hardware providers, including Clover.
- 24/7 phone support.
Cons
- Markups vary by business
- Website doesn’t disclose hardware pricing.
Read full review
Our pick for
Fast deposits
U.S. Bank Merchant Services
4.5
NerdWallet rating
Monthly fee
$0.00
and up.
U.S. Bank offers business banking, payment processing and point-of-sale solutions for small businesses. The bank also offers Everyday Funding, which allows merchants to receive funds in their deposit account every day of the week, including weekends – not something you’ll find among many competitors.
Read full review
Pros
No long-term contracts.
No cancellation fees.
No PCI fees.
Variety of monthly plans available, including a free option.
Cons
No free trial period.
No free setup help.
Hardware costs are buried on website; you need to contact the bank directly for purchase pricing.
Read full review
Our pick for
Built-in banking partner
Chase Payment Solutions℠
4.5
NerdWallet rating
on Chase Payment Solutions℠'s secure website
Monthly fee
$0.00
Monthly fee in some instances.
Chase Payment Solutions is a direct processor, meaning it operates as both the payment processor and the acquiring bank that establishes the merchant’s bank account. You’ll get your money the next business day, which is faster than the two-day norm with many other processors, provided you use a Chase business checking account.
Read full review
Pros
Two-in-one processor and acquiring bank.
On the cheaper end of flat-rate prices available.
Next-day payouts available.
Cons
Requires use of Chase checking for quickest deposits — not a bad thing, unless you’d prefer to bank elsewhere.
Unclear POS pricing.
Read full review
Our pick for
High-risk businesses
PaymentCloud
4.5
NerdWallet rating
Payment processing fees
2.4% + $0.10
to 3.5% + $0.25 on average.
Monthly fee
$0.00
to $50.
PaymentCloud specializes in services for high risk industries, although they also offer services to low and medium risk businesses.
Read full review
Pros
Specializes in high-risk merchant accounts.
Cancellation fees are waived.
Free rate review and analysis.
24/7 customer support.
Chargeback prevention tools.
Cons
Processing rates and monthly costs are not readily available on its website.
Monthly volume limit may apply.
Read full review
Our pick for
Nonprofits
Dharma Merchant Services
4.5
NerdWallet rating
Monthly fee
$15.00
for most industries; $12 for nonprofits.
Dharma specializes in helping nonprofits and has one of the lowest rates for card-not-present transactions.
Read full review
Pros
Low processing rates.
Pricing transparency.
Reduced rates for large monthly processing volume.
24-hour help lines.
Virtual terminal included.
Cons
Monthly fee.
Account closure fee.
Read full review
Our pick for
QuickBooks loyalists
QuickBooks Payments
4.5
NerdWallet rating
Monthly fee
$0.00
QuickBooks subscription required.
For loyal QuickBooks users, QuickBooks Payments can process online, in-person and invoiced transactions.
Read full review
Pros
No contract.
No cancellation fees.
Competitive pricing.
Instant deposits are available for an extra 1% fee.
Invoice formatting lets customers pay online.
Cons
QuickBooks Desktop users and new customers may pay higher fees.
24/7 phone support is not available.
Read full review
Got feedback on these products?
Tell our Nerds what you think about the offerings here to help us refine our product evaluations.
Our picks for the best merchant services
Helcim: Best for interchange-plus processing
Why we like it: It's easy to sign up for a Helcim account online by providing some basic information about your business. Funds from your transactions are deposited within two business days. Customer support is available weekdays from 9 a.m. to 7 p.m. Eastern time and on Saturday from 11 a.m. to 7 p.m. Eastern time. You can sync data with both QuickBooks Desktop and Online as well as WooCommerce. Read our full Helcim review.
Interchange plus 0.4% and 8 cents per in-person transaction (if $50,000 or less in monthly card transactions).
Interchange plus 0.5% and 25 cents per online or manually keyed transaction (if $50,000 or less in monthly card transactions).
0.5% plus 25 cents for ACH payments.
$0
$99 for a mobile card reader (with stand).
$329 for a stand-alone terminal with built-in thermal printer.
Square: Best flat-rate option
Why we like it: Square can accommodate all types of credit card transactions. You receive your funds as fast as the next business day for free, or you can pay a fee to receive funds instantly. Square also offers free dispute management for chargebacks. Free phone support is available during the week from 6 a.m. to 6 p.m. Pacific time. Square integrates with QuickBooks, Xero, WooCommerce and other popular apps.
2.6% plus 10 cents for in-person transactions.
2.9% plus 30 cents for online transactions.
3.5% plus 15 cents for manually keyed transactions.
3.3% plus 30 cents for invoices.
$0 for Square POS, Restaurant, Retail and Appointments Free plans.
$29 for Square Appointments Plus plan.
$60 for Square Restaurant Plus plan.
$69 for Square Appointments Premium plan.
$89 for Square Retail Plus plan.
$192 and up for Square Restaurant Essentials Bundle.
Custom pricing for Square Retail Premium plan.
$0 for Square magstripe-only card reader ($10 for each additional reader) or if using Tap to Pay for iPhone (iPhone not included).
$49 and up for Square Reader contactless and chip card reader.
$149 for Square Stand iPad POS or Square Stand Mount (iPad not included; monthly financing available).
$299 for Square Terminal mobile card reader with built-in printer (monthly financing available).
$799 for Square Register two-screen system (monthly financing available).
Dharma Merchant Services: Best for nonprofits
Why we like it: With Dharma Merchant Services, nonprofits benefit from reduced transaction rates and partnership with a provider that’s been committed to doing good from its inception. Additionally, businesses with monthly card sales over $100,000 or more than 5,000 transactions may qualify for volume discounts, as well as restaurants with average ticket amounts of less than $25. Funding is guaranteed in two business days. Customer support to process your card transactions is available 24 hours a day. Read our full Dharma Merchant Services review.
Interchange plus 0.15% + 8 cents for in-person transactions.
Interchange plus 0.20% + 11 cents for online transactions.
Interchange plus 0.25% + 8 cents for in-person AmEx transactions.
Interchange plus 0.30% + 11 cents for online AmEx transactions.
$12 for nonprofits.
$15 for business to business, e-commerce, hospitality, retail and restaurant.
$149 for Walker 2 chip, swipe and NFC card reader.
$295 for First Data FD-150, Verifone Engage V200c, Ingenico Desk/3500 or Dejavoo Z11 terminals.
$369 for Ingenico Desk/5000 terminal.
$480 for FD-150, Desk/3500, V200c or Z11 terminals plus a separate pinpad.
$649 for Clover Flex mobile card reader with printer.
$899 for Clover Mini POS device.
$1,649 for Clover Station Solo POS bundle.
$1,999 for Clover Station Duo POS bundle.
Stripe: Best flat rate for online sales
Why we like it: With Stripe, payments are typically processed in two to three business days. Stripe integrates with a large number of apps like Bench Accounting, Xero and Mailchimp. You can use the developer tools in Stripe Terminal and pre-certified card readers to build your own in-person checkout system. Read our full Stripe review.
2.7% plus 5 cents for in-person transactions.
2.9% plus 30 cents for online transactions.
3.4% plus 30 cents for manually keyed transactions.
4.4% plus 30 cents for international card transactions.
$0 for standard Stripe Connect.
$2 per account for Stripe Express (for marketplaces) or Stripe Custom (the white-label option that allows businesses to customize the checkout process).
$59 for Stripe Reader M2.
$249 for BBPOS WisePOS E card reader.
$349 for Stripe Reader S700.
Payment Depot: Best for tailored interchange-plus rates
Why we like it: Payment Depot, which is owned by Stax, is a good option for businesses that want to explore customized interchange-plus rates. Markups may vary from industry to industry, and savings get passed along to the business when customers use cards with lower interchange rates. Funds are automatically deposited within one to two days, and phone support is available 24/7. Payment Depot integrates with other business software apps, including QuickBooks, WooCommerce and Magento. Read our full Payment Depot review.
0.2%-1.95% plus interchange.
$0.
Sells card readers as well as countertop and mobile point-of-sale hardware from Clover, Dejavoo, and SwipeSimple, but prices are undisclosed. You have to request a quote.
PaymentCloud: Best for high-risk businesses
Why we like it: PaymentCloud's payment processing is available for in-person, online, mobile, keyed and cryptocurrency transactions. It has multiple banking relationships that can be used to secure a merchant account for high-risk businesses in industries including firearms, tobacco, credit repair, telemedicine and other industries. The platform integrates with QuickBooks and many shopping carts including BigCommerce, WooCommerce, Shopify and Adobe Commerce (formerly Magento). Read our full PaymentCloud review.
Quote-based. You’ll have to call to get specific pricing information for your business, but average ranges are:
2.4% plus 10 cents for low-risk retail merchants.
2.8% plus 25 cents for medium-risk businesses, like e-commerce shops.
3.5% plus 25 cents for high-risk merchants.
Quote-based, but ranges from $0 to $50.
Varies by third-party hardware company (e.g., Clover, Dejavoo, Poynt, Verifone and more).
National Processing: Best for free terminal
Why we like it: National Processing offers processing services for some high-risk businesses. You can expect to receive your funds in two days with an opportunity for next-day deposits. Phone support is available 24/7. Integrations are offered for popular business apps including QuickBooks, WooCommerce, Ecwid, Zendesk, BigCommerce and Shopify. Read our full National Processing review.
Basic In-Person Package: 2.5% plus 10 cents per transaction.
Basic E-Commerce Package: 2.9% plus 30 cents per transaction.
Advanced Package: 2.41% plus 10 cents.
Premium Package: quote-based.
$9.95 for Basic In-Person Package, Basic E-Commerce Package.
$9.95 and up for Premium Package (for businesses with monthly sales volumes exceeding $30,000).
$19 and up for Advanced Package.
Undisclosed/quote only. A mobile reader is included with most plans at no additional cost. Based on the plan you select, a terminal and PIN pad may also be included.
QuickBooks Payments: Best for QuickBooks loyalists
Why we like it: You’ll need a QuickBooks account to use QuickBooks Payments. Funds are typically deposited the next business day when the cutoff time of 6 p.m. ET is met. Phone support is available Monday through Friday from 9 a.m. to 8 p.m. Eastern time. QuickBooks Payments integrates with Shopify, Amazon, eBay, WooCommerce, BigCommerce and Etsy shopping carts. Read our full QuickBooks Payments review.
For QuickBooks Online users
2.5% for in-person payments.
2.99% for online and invoiced payments.
3.5% for manually keyed payments.
1% for ACH transactions.
For QuickBooks Desktop users
Pay as you go plan (no monthly fee):
2.4% plus 30 cents per in-person transaction.
3.5% plus 30 cents per keyed-in or invoiced transaction.
$3 per ACH transfer.
Pay monthly plan ($20 monthly fee):
1.6% plus 30 cents per in-person transaction.
3.3% plus 30 cents per keyed-in or invoiced transaction.
$3 per ACH transfer.
$0 if you already have a QuickBooks Online plan.
$30 ($15 for first three months) for Simple Start plan for new QuickBooks users.
$60 ($30 for first three months) for Essentials plan for new QuickBooks users.
$90 ($45 for first three months) for Plus plan for new QuickBooks users.
$200 ($100 for first three months) for Advanced plan for new QuickBooks users.
QuickBooks Desktop users pay an annual subscription fee for the accounting software.
$39 for QuickBooks charging stand.
$49 for QuickBooks card reader.
$79 for QuickBooks card reader with charging stand.
U.S. Bank Merchant Services: Best for fast deposits
Why we like it: U.S. Bank offers business banking, payment processing and point-of-sale solutions for small businesses. With a variety of monthly plans, transaction rates that are on par with other merchant services providers, no long-term contract, no cancellation fees and no PCI fees, U.S. Bank Merchant Services may be an appealing option for businesses, especially if you’re looking for a single provider for payment processing, business banking and/or a POS solution. Free same-day funding is available if you have a U.S. Bank business checking account.
Merchants opening a new Payment Solutions account are eligible to earn back 2.5% on transaction fees each month through 2025. Terms and conditions apply.
2.6% plus 10 cents for in-person payments.
2.9% plus 30 cents for online payments.
3.5% plus 15 cents for keyed payments.
$0 for Mobile plan.
$15 for Terminal plan.
$29 for Starter plan.
$69 for Standard plan.
$99 for Premium plan.
$15-$29 for each additional software license.
Sells a variety of hardware including full POS stations, handheld terminals and customer displays. You can purchase hardware outright or rent for a monthly fee. Monthly rental pricing starts at $20 for a handheld terminal plus charger.
Chase Payment Solutions: Best for built-in banking partner
Why we like it: Chase Payment Solutions is a direct processor, meaning it operates as both the payment processor and the acquiring bank that establishes the merchant’s bank account. You’ll get your money the next business day, which is faster than the two-day norm with many other processors, provided you use a Chase business checking account. Additionally, Chase offers 24/7 service and has no monthly fees. It has payment processing solutions for service-based businesses, health care companies, restaurants, retail stores and e-commerce shops. Read NerdWallet’s Chase Payment Solutions review.
2.6% plus 10 cents for in-person transactions.
2.9% plus 25 cents for online transactions.
3.5% plus 10 cents for keyed transactions.
Monthly fee in some instances.
Chase lists pricing for some products, like its terminals and card reader, but hardware costs aren’t readily available for other options. Instead, you’ll have to fill out an online form for more information.
$79 for Chase card reader.
$499 for Chase card terminal.
What do merchant services include?
To enable businesses to accept a variety of payment types, merchant services usually include some combination of the following:
POS hardware
POS hardware is crucial for accepting payments in person. Retail shops with a brick-and-mortar location, for example, may choose a countertop POS system setup with a cash register and receipt printer. Business owners that complete most of their sales at farmers markets or pop-up events, on the other hand, may only require a credit card reader that connects to their smartphone. There are also handheld POS terminals for taking payments on the go or tableside.
POS software
Paired with POS hardware, POS software collects in-depth sales data, runs reports, syncs information with your business’s accounting software and helps you manage employees. POS systems usually offer hardware and software in tandem.
Payment processing services
Payment processing services, which are often available through your POS system provider, work behind the scenes to facilitate the transfer of money from your customers’ accounts to your business’s account. They may include additional tools, like invoicing and reporting, too.
Merchant accounts
When you complete a credit card transaction, those funds go to a merchant account before getting deposited into your business bank account (where they’re actually accessible). Some companies, known as payment service providers (PSPs), pool multiple merchants’ funds into a single account and distribute them from there. Examples include Square and Stripe, and usually use non-negotiable flat-rate payment processing.
Alternatively, you can apply for your own merchant account that is tailored specifically to your business’s needs. Compared to a PSP, individual merchant account providers typically require a more involved application process, meaning you may need to wait longer to begin accepting payments. Though there could be some upfront setup costs, payment processing fees are sometimes negotiable.
Extra features
Merchant services also refers to tools and capabilities that are intertwined with the payments process, like gift cards, loyalty programs, fraud protection, integrations with the rest of your business software ecosystem, reporting and online website features that help you securely accept payments online.
Merchant services vs. merchant accounts
Merchant services often include merchant accounts in some capacity, but the two terms aren’t synonymous. Merchant services are made up of a range of products and services — think merchant accounts, payment processing services and POS systems — that help your business accept payments. Some offer individual merchant accounts and others (PSPs) hold multiple businesses’ funds in a single account until they’re transferred to your business’s individual bank account.
How to choose the best merchant services provider
Before committing to a merchant services provider, consider the following factors:
Variety of payment types accepted: Make sure your merchant services provider supports all of the payment methods and types your business plans to accept. These may include online and in-person payments, contactless payments, digital wallets, QR codes and PayPal.
Cost: Consider the upfront costs associated with POS hardware as well as the ongoing subscription costs associated with POS software plans. Similarly, compare different provider’s per-transaction rates and fees. There could also be fees for PCI compliance, chargebacks, setup and merchant account maintenance.
POS system compatibility: It’s most convenient to use a merchant services provider that can offer POS systems and payment processing services under the same umbrella. If that’s not an option, make sure the processor integrates with your POS system and, preferably, your accounting software.
Customer service: Think about which days and times you accept the highest volume of transactions and check to see if live customer support is available then. Live chat and phone support are ideal so that you can reach a representative immediately. Some merchant services providers also assign businesses dedicated account managers for one-on-one support.
» MORE: How much are credit card processing fees?
