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One of the first things you learn as an adult is that to get the best deal, you need to shop around. This advice is just as applicable to merchant services. After all, they’re vital to your business’s success, no matter what kind of organization you run. The truth is that as good as a merchant services provider can seem on the surface, it can often be a different story when you’re accepted for an account. From hidden fees to non-existent support, there isn’t a lot you can necessarily find out before you apply.
Fortunately, this isn’t the case for all merchant services providers – in fact, there are plenty of reputable payment processors if you know where to look. I’ve done the hard work of finding the best merchant services to help you choose the right one for your business. Whether you’re a small business looking for a low-cost processor, a large enterprise that needs industry-leading software solutions, or you’re somewhere in the middle, there’s a great option for you below.
I’ve been researching merchant services providers for months, and my top recommendation is Stax. On top of budget-friendly subscription-style pricing with no interchange markups, you’ll get some of the best payment software I’ve come across. It’s a great choice for most mid-sized to large businesses.
No two businesses are alike, which is why my main focus for this article was to find payment processors that are flexible enough to support a wide variety of businesses. I’ve also made sure to look out for the following features:
Great pricing. No one wants to pay more for payment processing than they have to. Every merchant services provider on this list offers pricing that’s optimized for the business types it specializes in, so you’ll be sure to find the best fit for your business.
Point-of-sale (POS) hardware. Whether you have a brick-and-mortar storefront or want the option to take payments on the go, you’ll need POS hardware. Every option on this list offers a range of devices to suit all kinds of in-person businesses.
Payment software. With e-commerce and remote payments becoming increasingly popular with consumers, you’ll need a payment gateway or virtual terminal at minimum. I’ve made sure that every option on this list offers this basic payment software – and more.
Fast payouts. Every payment processor below has a payout time of just a few days. Many of them also offer same-day or next-day payouts as optional extras so you’ll get quicker access to the money you need to invest back into your business.
Customer support. The peace of mind that comes with having a friendly, knowledgeable, and responsive customer support team to turn to is worth its weight in gold. I’ve only included merchant services providers that we’ve had a great experience with.
Stax’s pricing structure eliminates pricey interchange markups, helping you to save money on your processing fees
Stax’s simple subscription-style pricing is a refreshing change in the merchant services industry. You’ll pay a single, flat monthly fee, plus no interchange markups and just a few cents per transaction. While it might seem expensive on the surface, you could save up to 40% with Stax – with large businesses processing over $8,000/month standing to save the most. That’s not to say medium-sized businesses won’t save money, though.
Stax includes all the payment software you could ever need in your monthly fee. That includes a payment gateway, virtual terminal, e-commerce integrations, pre-built shopping carts, developer tools, and more. If you’re an e-commerce business that needs a lot of software to operate, the flat monthly fee could save you a significant amount over purchasing software licenses separately.
Each Stax plan has an annual processing cap of $500,000, which is likely more than enough for most medium-sized and large businesses. However, if your business starts handling more than this, you don’t need to worry. Stax offers custom pricing for enterprise-level businesses. Along with the same fantastic feature suite, you’ll get access to a dedicated support line to help your business scale up.
Features and Benefits
Free hardware. You’ll get your choice of a free Clover, SwipeSimple, or Dejavoo terminal when you’re accepted for a Stax merchant account. Stax integrates with 90% of third-party devices, and it can reprogram your existing hardware for free.
Surcharging support. You can save even more on your payment processing with surcharging, which Stax offers for an extra fee. I highly recommend it for businesses that process a large number of credit cards (as you legally can’t add surcharges to debit card payments).
No contracts. Instead of getting locked into a contract, Stax lets you cancel at any time with 30 days’ notice. You won’t be charged an early termination fee, either.
Multiple support channels. Stax offers the largest number of support channels of any of our recommended merchant services providers. While none of them are available 24/7, you can use Stax’s knowledge base for time-sensitive issues.
Payment Depot’s subscription-style pricing offers significant savings over the competition
High-volume businesses stand to save the most with subscription-style pricing, and Payment Depot is one of the best budget-friendly subscription-style processors around. If you process under $250,000 a year, you can save hundreds of dollars each month with Payment Depot. Because of this, it’s a great option for small- to medium-sized high-volume businesses that don’t have the budget for Stax’s more expensive plans.
As a subsidiary of Stax, Payment Depot still offers many of the same features as its parent company. You’ll get access to Stax’s proprietary payments software, so you won’t have to pay any extra software fees. Plus, Payment Depot can get you set up with this software in as little as 24 hours, making it easy for high-volume businesses to get started or switch from another merchant services provider.
Best of all? Unlike other merchant services providers, you won’t have to worry about whether Payment Depot will be a good fit for your business as it grows. If it stops offering the value you’re looking for, you can cancel at any time with no early termination fees.
Features and Benefits
Free reprogramming. While Payment Depot doesn’t offer any free hardware, it will reprogram your existing hardware at no extra charge. You don’t need to buy a new hardware suite if you decide to switch to this processor.
Discounted smart terminals. Payment Depot is a certified Clover reseller, so you can get smart payment hardware for less. If you primarily accept payments in person, Clover’s range of modern POS devices can streamline your checkout flow.
24/7 risk monitoring. Payment Depot employs a team of fraud experts that keep a close watch for evolving fraud tactics and bank policies. If there are any significant changes in the threat landscape, you’ll be notified so you can take proactive steps to keep your business safe.
24/7 support. All merchants get 24/7 technical support over the phone or by submitting a support ticket. Sales and accounts support is also available daily, but only during business hours.
Smaller merchants can benefit from Leaders Merchant Services’s lower monthly fees
Are you looking for a payment processing service that offers customized pricing to fit your business needs? Leaders Merchant Services (LMS) offers negotiable interchange-plus pricing tailored to each business, which means you can be sure you’re getting the best possible deal. If you’re an established business that’s already accepting payments with another merchant services provider, this pricing model can give you more negotiating power.
Additionally, LMS offers a meet-or-beat guarantee to merchants who process over $2,000 a month. If it can’t beat a competitor’s pricing, you’ll receive a $200 gift card. This guarantee gives you peace of mind and it’s ideal for most established businesses that want to ensure they’re getting a competitive deal.
The only downside is you’ll need to sign a contract for a minimum of three years. This may seem like a long commitment, but it’s important to note that you’ll receive free equipment for signing up. Plus, if LMS can offer you significant savings over your current merchant services provider, it’s a small price to pay to save money in the long run.
Features and Benefits
Authorize.net gateway. Thanks to LMS’s partnership with Authorize.net, you can get this popular payment gateway and virtual terminal for less than if you purchased it directly.
Merchant advances. You’ll be able to access merchant cash advances directly from LMS. This flexible loan allows you to secure funding paid back through a small commission on your sales, which is ideal if you’re growing your business.
Plenty of integrations. LMS integrates with a variety of software tools like QuickBooks and Salesforce, making it easy to integrate payment processing into your existing systems.
Fraud detection tools. Authorize.net comes with advanced fraud detection and prevention tools to help keep your business safe. Plus, if you opt to use any Clover devices, you’ll get an additional suite of fraud tools (for an extra fee).
PaymentCloud is one of the few merchant services providers that can work with high-risk businesses
PaymentCloud offers accounts specifically designed for high-risk merchants. Every high-risk merchant gets access to software that helps fight chargeback disputes. This software automatically detects chargeback disputes and, if you’ve integrated it with other software tools, can upload relevant documentation to support your case. It’ll also analyze your business’s vulnerabilities and identify potential root causes to help you to secure your business against future disputes.
You’ll also get software to prevent chargebacks from happening in the first place. PaymentCloud uses 3D Secure 2.0 technology to validate card payments with the customer’s bank during your checkout flow. By automatically validating the customer’s identity, you could see your chargeback rates drop by over 10%.
While PaymentCloud’s high-risk rates may be more costly than other providers, they’re well worth it. Your monthly fee will include all the software you need to run and protect your business, and the per-transaction rates are, in my experience, fairly average for high-risk merchants.
Features and Benefits
200+ integrations. PaymentCloud integrates with various popular shopping cart platforms, including Shopify, WooCommerce, Magento, and more. You can seamlessly connect with accounting software, Google tools, and even productivity tools like Jira Software, too. Just remember to double-check that you can use these tools with high-risk businesses – not all of them will work with merchants in certain industries.
Free hardware. You can choose a free POS hardware device from a range of terminals and credit card readers, so you won’t be stuck with a terminal that’s not the right fit for your business.
Flexible pricing. PaymentCloud doesn’t offer “one size fits all” merchant accounts. Instead, you’ll be able to negotiate for the rates that best suit your business. Given that high-risk account fees can take up more of your budget, this will help you to get the most for your money.
Dedicated account manager. Every merchant gets access to a dedicated account manager who will guide you through the setup and onboarding process.
National Processing’s pricing transparency makes it easy to find the best deal for your business
Unlike other providers, National Processing is completely transparent about its pricing and offers dozens of different pricing options to suit all types of small businesses. Its interchange-plus pricing is budget-friendly, and there’s even a calculator to help you work out if you can save money with this processor. This level of transparency is uncommon in an industry that can often feel opaque and confusing.
One of the best things about National Processing is that you’ll get all the software you need with every plan. This includes a proprietary virtual terminal and payment gateway. If you run a fledgling or small business on a tight budget, you’ll have access to the modern software you need to set up an online store or take payments over the phone.
It’s worth noting that you’ll be subject to an early termination fee if you decide to leave National Processing before the contract is up. However, this fee is waived if National Processing can’t meet or beat the competitor’s rates or if the business closes. If your small business outgrows this merchant services provider, there’s a good chance you won’t have to pay anything at all to switch to a competitor.
Features and Benefits
Free hardware. Every National Processing plan offers some kind of free hardware, ranging from mobile card readers to terminals. Some plans even offer multiple devices and terminal upgrades every 2 years, which can help small businesses save money on hardware.
Meet-or-beat guarantee. If you’re a low-risk merchant processing at least $10,000/month, it’s worth seeing if National Processing can offer you a better rate than your current merchant services provider. If it can’t, it’ll pay you $500.
Same-day funding. Businesses that need a regular cash flow can request same-day funding for no extra fee. You just need to be approved by the processor’s bank.
Cash discount pricing. Reduce your payment processing even more with National Processing’s cash discount program. This allows you to pass the cost of your payment processing onto some customers by giving your cash-paying customers a discount.
Flagship Merchant Services offers a great level of flexibility for growing businessesFlagship Merchant Services’s budget-friendly pricing makes it an attractive option for businesses looking to keep costs down. I recommend choosing the interchange-plus pricing plan instead to ensure you’re getting the best deal possible. New merchants will typically be offered a tiered pricing plan, which usually results in paying higher fees overall. By negotiating for interchange-plus pricing, you’ll know exactly how much you’ll be paying per transaction, giving you better control over your budget.
In addition, growing businesses will get support thanks to Flagship’s merchant cash advance program. With a merchant cash advance, you’ll receive a lump sum of cash in exchange for a percentage of your future sales. This allows growing businesses to access funding without needing to put down any collateral.
Flagship also offers fast payouts. With a 48-hour payout time as standard, you’ll have access to your funds quickly and easily. If you need your money even faster, Flagship offers same-day payouts for an extra fee. This is great for growing businesses that need a regular cash flow to invest back into their business.
Features and Benefits
Secure e-commerce payments. Flagship uses the popular Authorize.net payment gateway and virtual terminal to handle e-commerce payments. Not only is Authorize.net an affordable software solution for modern businesses, but you’ll also have fraud protection tools to secure your business.
Quick onboarding. It only takes a few minutes to apply for a Flagship merchant account, and you could start accepting payments in as little as a few hours. You can seamlessly create a new business or switch from your existing merchant account.
iAccess Portal. Every merchant account includes the iAccess Business Management Portal, which provides helpful insights into your business’s health. You’ll be able to create and export reports for your sales, customer behavior, industry statistics, and more.
Great data security. On top of being PCI compliant, Flagship is compliant with the EU’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), which protects the data of European and California residents, respectively. Businesses looking to expand into these areas can ensure their business payments are compliant with local laws.
How to Find the Best Merchant Services for Your Business
Just as no two businesses are alike, there’s no “one size fits all” merchant services provider that’s best for all kinds of businesses. To find the best merchant services for your business, you’ll need to take into account your business’s risk level, how you accept payments, your business model, the software you need, and more.
Overall, Stax is my top recommendation for medium to large businesses. Thanks to its subscription-style pricing model, businesses processing over $8,000/month stand to save a lot of money on their processing bill. Plus, you’ll get all the software you need included in your monthly fee.
If you’ve got a medium-sized business, take a look at Payment Depot. It’s a Stax subsidiary, so you’ll get the same subscription-style pricing and software for a lower monthly fee.
If your business is on the smaller side, go with Leaders Merchant Services. You’ll be able to negotiate for the best rates to suit your business and, if this merchant services provider can’t meet or beat your current processor’s rates, you’ll get $200.
Here’s a quick comparison of our recommended best merchant services.
Best Feature
Best For
Monthly fee on cheapest plan
Transaction fees on cheapest plan
Stax
Simple, all-inclusive subscription-style pricing
Larger businesses looking to optimize their budget
This depends on many different factors, such as your business’s risk level and the processor’s payment model. For example, subscription-style processors don’t charge interchange markups, but you’ll pay a higher monthly fee. Interchange-plus processors charge a variable rate depending on the card type, while flat-rate processors charge the same rate regardless of card type.
Our recommended credit card processing services charge reasonable rates based on their pricing models.
What are high-risk merchant services?
High-risk merchant services are payment processing services provided to high-risk businesses. Businesses like alcohol retailers, financial services providers, and travel agents are considered high-risk because these industries have a higher rate of fraud and chargebacks. High-risk businesses should consider PaymentCloud. On top of providing reasonable rates, PaymentCloud offers software to protect your business against chargebacks.
How do you avoid merchant services fees?
You can’t avoid merchant services fees – but you can reduce them. The closest you’ll get to free payment processing is with a cash discount (or zero cost) processing plan. With this, you can either pass on a surcharge or offer a discount to cash-paying customers.
You’ll still have to pay some fees, but you’ll pay significantly less than with another pricing model. National Processing offers a cash discount program with no monthly fee, which can help you save more money versus traditional processing.
Do I need a business bank account and a merchant account?
Yes, you’ll need to have both of these accounts. While a merchant account will hold a sum of money for a limited time, you can’t use this account to cover your business expenses. This money needs to be paid into a business bank account for you to use it. If you’re worried about having regular access to your money, choose a merchant services provider with a quick payout time.
Emma is a freelance content writer who specializes in thoughtful and insightful blogs and articles. Her main passion is the intersection of human behavior and modern technology, particularly in the context of marketing and cybersecurity. Outside of work, Emma loves video games, superhero movies, crochet, and cuddling her German Shepherd.
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