The best merchant services have competitive processing fees and enable your business to accept a range of payment types. Many times, you can get most — if not all — of the merchant services you need (e.g., POS systems, merchant accounts, credit card processing) from a single provider.
Here are some of our top merchant services picks, followed by a longer list of options, what type of business they’re best for and the features that make them stand out.
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Best Merchant Services
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Input your business’s monthly transaction details and we’ll help you sort from the best valueProduct | Cost Estimate | Payment processing fees | Cost Estimate | Learn more | ||
|---|---|---|---|---|---|---|
Helcim Learn more on Helcim's secure website | Get an estimated monthly cost for your business. | 5.0/5 Best for High-volume businesses | In-person: 0.4% + $0.08 Online: 0.5% + $0.25 Plus interchange | $0.00 | Get an estimated monthly cost for your business. | Learn more on Helcim's secure website |
Stripe Learn more on Stripe Payments' secure website | 5.0/5 Best for Subscription-based businesses | In-person: 2.7% + $0.05 Online: 2.9% + $0.30 | $0.00 | Learn more on Stripe Payments' secure website | ||
Square POS Learn more on Square POS's secure website | 5.0/5 Best for Brick-and-mortar retail stores | In-person: 2.6% + $0.10 Online: 2.9% + $0.30 | $0.00 and up. | Learn more on Square POS's secure website | ||
U.S. Bank Merchant Services Learn more on U.S. Bank Merchant Services' secure website, Member FDIC | 4.5/5 Best for Fast deposits | In-person: 2.6% + $0.10 Online: 2.9% + $0.30 | $0.00 and up. | Learn more on U.S. Bank Merchant Services' secure website, Member FDIC | ||
National Processing Learn more on National Processing's secure website | 5.0/5 Best for Free terminal | In-person: 2.5% + $0.10 Online: 2.9% + $0.30 | $9.95 for Basic In-Person Package. | Learn more on National Processing's secure website | ||
Chase Payment Solutions℠ Learn more on Chase Payment Solutions℠'s secure website | 4.5/5 Best for Built-in banking partner | In-person: 2.6% + $0.10 Online: 2.9% + $0.25 | $0.00 for in-person payments; $9.95 and up for e-commerce payments. | Learn more on Chase Payment Solutions℠'s secure website | ||
Payment Depot Learn more on Payment Depot's secure website | 4.5/5 Best for Tailored interchange-plus rates | 0.2% + $0.00 to 1.95%, plus interchange. | $0.00 | Learn more on Payment Depot's secure website | ||
PaymentCloud Learn more on PaymentCloud's secure website | 4.5/5 Best for High-risk businesses | 2.4% + $0.10 to 3.5% + $0.25 on average. | $0.00 to $50. | Learn more on PaymentCloud's secure website | ||
Dharma Merchant Services | 4.5/5 Best for Nonprofits | In-person: 0.15% + $0.08 Online: 0.2% + $0.11 Plus interchange | $20.00 for most industries; $15 for nonprofits. | |||
Finix Learn more on Finix's secure website | 5.0/5 Best for Quickly growing businesses | In-person: 0% + $0.08 Online: 0% + $0.15 Plus interchange | $79.00 and up. | Learn more on Finix's secure website | ||
Shopify Retail POS Learn more on Shopify POS's secure website | 4.5/5 Best for Online retail businesses | In-person: 2.6% + $0.10 Online: 2.9% + $0.30 | $39.00 and up for e-commerce plans with POS Lite; Can upgrade to POS Pro for an extra $89. | Learn more on Shopify POS's secure website | ||
Toast POS Learn more on Toast POS's secure website | 4.0/5 Best for Full-service restaurants | 2.49% + $0.15 if you buy hardware upfront; 3.09% + $0.15 for pay-as-you-go option. | $0.00 Starter Kit; $69 Point of Sale plan; custom Build Your Own plan. | Learn more on Toast POS's secure website |
Our pick for
High-volume businesses
Helcim
Learn more
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
- Businesses save when customers use cards with low interchange rates.
- Offers free POS software.
- Offers volume-based discounts automatically.
- No termination fees, long-term contracts or PCI compliance fees.
Cons
- Deposits are available within two business days; same-day deposit option is not available.
- Interchange-plus costs can be difficult to predict.
Our pick for
Subscription-based businesses
Stripe
Learn more
on Stripe Payments' secure website
Monthly fee
$0.00
Stripe’s payment platform allows your business to accept more than 135 different currencies online, whether you’re selling products, services or subscriptions. Subscription-based businesses, in particular, can pay Stripe an annual contract fee — plus a portion of their sales — to set up custom billing workflows and charge customers on a consistent schedule (e.g., monthly) or based on usage. This is ideal for businesses selling software as a service, weekly meal kits, workout plans or educational courses.
Pros
- Highly customizable online checkout options.
- No termination fees or long-term contracts.
- 24/7 chat support.
- Can process transactions in more than 135 currencies.
- No PCI compliance fees.
Cons
- Doesn’t sell full countertop POS setups; hardware is limited to handheld terminals and card readers.
- Deposits can take up to two business days.
- No phone or email support.
Our pick for
Brick-and-mortar retail stores
Square POS
Learn more
on Square POS's secure website
Monthly fee
$0.00
and up.
Square’s free retail POS software plan, reasonably priced hardware options and brand familiarity make it a solid choice for brick-and-mortar retail shops wanting to keep upfront costs low without sacrificing reliability. Chances are, employees and customers alike will be familiar with the user interface. Plus, all plans include useful retail-oriented features, like low stock alerts, sales and product reports and an e-commerce site for expanding your reach online.
Pros
- Free plan option available.
- Offers helpful related services, like payroll, that integrate closely with its POS system.
- No long-term contracts or termination fees.
- All plans include a free online store.
Cons
- Can’t run on Windows devices.
- Complex industries might prefer a more specialized system.
Our pick for
Fast deposits
U.S. Bank Merchant Services
Learn more
on U.S. Bank Merchant Services' secure website, Member FDIC
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.
Pros
- Same-day funding seven days per week for U.S. Bank checking account holders.
- No cancellation or PCI compliance fees.
- Free POS software plan available.
- 24/7 support.
Cons
- POS system onboarding assistance can be costly.
- Deposit times are not as quick for merchants using third-party bank accounts.
- Virtual terminal costs extra.
Our pick for
Free terminal
National Processing
Learn more
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.
Pros
- No termination fees, long-term contracts or PCI compliance fees.
- Works with high-risk merchants.
- New merchants may qualify for a free terminal.
- 24/7 phone support.
- Compatible with multiple POS system providers, including Clover.
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.
- Deposits take 2-3 business days for basic plans.
Our pick for
Built-in banking partner
Chase Payment Solutions℠
Learn more
on Chase Payment Solutions℠'s secure website
Monthly fee
$0.00
for in-person payments; $9.95 and up for e-commerce payments.
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.
Pros
- Two-in-one processor and acquiring bank.
- No PCI compliance or cancellation fees.
- Using your bank as your processor makes deposits convenient.
- 24/7 phone and online support.
Cons
- Some hardware pricing is not readily available.
- No third-party shopping cart integrations.
- Chase’s Business Complete checking account comes with a $15 monthly service fee for some merchants.
Our pick for
Tailored interchange-plus rates
Payment Depot
Learn more
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 or PCI compliance fees.
- Compatible with several POS hardware providers, including Clover.
- 24/7 phone support.
Cons
- Markups vary by business.
- Website doesn’t disclose hardware pricing.
- Interchange-plus costs can be difficult to predict.
Our pick for
High-risk businesses
PaymentCloud
Learn more
on PaymentCloud's secure website
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.
Pros
- Works with high-risk businesses.
- New merchants may qualify for a free terminal.
- 24/7 support.
Cons
- Website isn’t transparent about processing rates.
- May charge PCI compliance fees.
- Some plans require a contract and charge steep termination fees.
Our pick for
Nonprofits
Dharma Merchant Services
Monthly fee
$20.00
for most industries; $15 for nonprofits.
Dharma specializes in helping nonprofits and has one of the lowest rates for card-not-present transactions.
Pros
- Reduced processing rates for nonprofits.
- Businesses save when customers use cards with low interchange rates.
- No long-term contracts.
- No PCI compliance fees.
- Compatible with Clover POS systems.
Cons
- Charges account closure fee.
- Requires separate accounts for online and in-person payments.
- Recurring billing and online invoicing cost an extra $10 per month.
- Deposits can take up to two business days.
Our pick for
Quickly growing businesses
Finix
5.0
NerdWallet rating Learn more
on Finix's secure website
Monthly fee
$79.00
and up.
Finix is a merchant services provider that can grow alongside your business, thanks to its ability to accommodate both small and large businesses alike. It charges low interchange markups for in-person and online transactions in exchange for a monthly fee. This subscription-based model becomes increasingly cost efficient for your business as it sells more. Other perks include a dedicated implementation manager and the option to customize payout schedules.
Pros
- No long-term contracts.
- Subscription model can help high-volume businesses save money.
- Transparent fee breakdowns.
- 24/7 emergency phone and email support.
- No PCI compliance fees.
Cons
- Limited POS hardware options.
- Lacks direct accounting software integrations.
Our pick for
Online retail businesses
Shopify Retail POS
Learn more
on Shopify POS's secure website
Monthly fee
$39.00
and up for e-commerce plans with POS Lite; Can upgrade to POS Pro for an extra $89.
When it comes to online retail merchant services, it’s hard to beat Shopify’s integrated e-commerce platform and online payment processing. Its selection of more than 200 website design templates helps your business’s online storefront look professional and on brand with little effort. Additionally, all plans for online selling let you track up to 10 inventory locations and include 24/7 chat support.
Pros
- No long-term contracts or termination fees.
- All plans include an online store.
- Built specifically for online sellers.
- 24/7 chat support.
Cons
- No free plan options.
- Cannot process cards in offline mode.
Our pick for
Full-service restaurants
Toast POS
Learn more
on Toast POS's secure website
Payment processing fees
2.49% + $0.15
if you buy hardware upfront; 3.09% + $0.15 for pay-as-you-go option.
Monthly fee
$0.00
Starter Kit; $69 Point of Sale plan; custom Build Your Own plan.
Unlike other merchant services providers that cater to a variety of industries, Toast is fully committed and tailored to businesses in the restaurant industry. It’s not the least expensive option on the market, though, so we recommend it mostly for full-service restaurants, since they’ll likely get more value out of it than, say, a small cafe. All plans include table and order management tools, basic employee scheduling capabilities, timekeeping and digital menus. There are add-ons for payroll, marketing and letting customers order and pay from their smartphone while seated in-house.
Pros
- Free plan available for restaurants with up to two POS terminals.
- 24/7 phone and web messaging support.
- Offers helpful related services, like payroll and team management software, that integrate closely with its POS system.
- Built specifically for restaurants with in-house delivery platform available, among other industry-specific features.
Cons
- Requires a two-year contract and charges early termination fees.
- Online payment processing rates are more expensive than competitors.
- Charges setup fee, and offline mode includes hidden cost of backup router.
- Online ordering and accounting integrations cost extra.
Helcim
Best for high-volume businesses
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 (capped at $6).
$0
- $99 for a mobile card reader (with stand).
- $329 for a stand-alone terminal with built-in thermal printer (or 12 monthly payments of $30).
Square
Best for brick-and-mortar retail stores
Why we like it: Square’s free retail POS software plan and payment plans for hardware help new retail shops get on their feet and start accepting payments without high upfront costs. As your store grows, you can upgrade from the free plan to the Plus or Premium plan and access additional features like cost-of-goods sold reports, stock forecasts, purchase order management and cross-location returns. Read our full Square review.
- 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.
- $69 for Square Appointments Premium and Square Restaurants Plus plans.
- $89 for Square Retail Plus plan.
- $165 for Square Restaurant Premium plan.
- Custom pricing for Square Retail plan.
- $0 for Square magstripe-only card reader ($10 for each additional reader) or if using Tap to Pay for iPhone (iPhone not included).
- $59 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).
Stripe
Best for subscription-based businesses
Why we like it: Stripe’s billing option for subscription-based businesses makes it easy to to charge customers on a recurring basis. You can customize how often each customer is charged, establish your own renewal rules (e.g., automatically renew subscriptions) and automatically remind customers to pay their subscription payment. You don’t have to do your own coding to use the product, but you can access the API to further customize your workflows if you’d like. 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 services.
- $10 for custom domain.
- $59 for Stripe Reader M2.
- $249 for BBPOS WisePOS E card reader.
- $349 for Stripe Reader S700.
Finix
Best for quickly growing businesses
Why we like it: Finix is a versatile payment services provider that supports small businesses as well as larger ones processing over $1 million in card transactions each year. That said, it’s best for businesses processing at least $5,000 per month because of its subscription-based model. There are no extra fees for PCI compliance or setup, and contracts are month-to-month. Read our full Finix review.
- 8 cents plus interchange for card-present transactions.
- 15 cents plus interchange for card-not-present transactions.
- $79 and up.
- One-month free trial for NerdWallet readers.
Finix offers a variety of handheld terminals, card readers and keypads, but merchants need to reach out to the company for pricing details.
Toast
Best for full-service restaurants
Why we like it: Toast’s spill-proof hardware options and array of add-on features make it a popular merchant services solution for businesses in the restaurant industry. And if your restaurant doesn’t have the cash on hand to pay for the handheld terminals or other hardware devices you need to operate most efficiently, you can opt for higher processing fees to cover your upfront costs. Read our full Toast review.
- 3.09-3.69% plus 15 cents per transaction, if you choose a pay-as-you-go plan.
- 2.49% plus 15 cents for card-present transactions, if you pay for hardware upfront.
- 3.50% plus 15 cents for card-not-present transactions, if you pay for hardware upfront.
- $0 for Starter Kit plan.
- $69 Point of Sale plan.
- Custom plans available.
- $799.20 for Handheld Starter Kit (but $0 if you agree to a higher processing fee).
- $1,024.20 for Countertop Starter Kit (but $0 if you agree to a higher processing fee).
- $1,339.20 for Guest Self-Service Starter Kit (but $0 if you agree to a higher processing fee).
Shopify
Best for online retail businesses
Why we like it: While Shopify can also accommodate brick-and-mortar retailers, its focus on e-commerce features makes it best for retail businesses that mostly sell online. There are no free plan options, but online plans do come with significant shipping discounts and processing rates decrease as you upgrade to higher plan tiers. You can subscribe month to month or commit to a yearly subscription for a smaller monthly fee. Read our full Shopify review.
- 2.5%, 2.7% or 2.9% plus 30 cents for online payments for Advanced, Shopify or Basic plan, respectively.
- 2.4%, 2.5% or 2.6% plus 10 cents for in-person payments for Advanced, Shopify or Basic plan, respectively.
Shopify e-commerce plans:
- $29 for Shopify Basic when billed annually (or $39 when paid monthly).
- $79 for regular Shopify when billed annually (or $105 when paid monthly).
- $299 for Shopify Advanced when billed annually (or $399 when paid monthly).
- Custom pricing for Shopify Plus.
- All e-commerce plans come with POS Lite for selling in-person. Upgrading to POS Pro for brick-and-mortar businesses costs an extra $89 per location.
Shopify’s alternative solutions for mainly selling in-person:
- $5 for Starter plan, which includes one POS Lite location.
- $79 (when billed annually) for Retail plan, or $89 when paid monthly; includes one POS Pro location.
- $49 for Tap & Chip card reader.
- $219 for Tap & Chip countertop kit (iPad not included).
- $349 for Shopify POS terminal.
- $459 and up for POS terminal countertop kits.
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 compliance 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.
- 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 $15 for a handheld terminal.
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 and invoicing.
Monthly fee in some instances.
- $129 for Chase Card Reader and Base bundle.
- $399 for Chase Countertop Terminal.
- $499 for Chase Wireless Terminal.
- $499 for Chase POS Terminal.
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. 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.
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.
- $15 for nonprofits.
- $20 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.
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 (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.
- Premium Package: 2.41% plus 10 cents.
- $9.95 for Basic In-Person Package, Basic E-Commerce Package.
- $19 and up for Premium Package.
Offers handheld POS terminals and countertop registers from Clover, SwipeSimple and Pax.
- $99 and up for the SwipeSimple B250 mobile card reader.
- $230 and up for the Pax A80 countertop terminal.
- $345 and up for the Pax A920 handheld terminal.
- $515 and up for the SwipeSimple Aries8 POS system.
- $585 and up for the Clover Flex handheld terminal.
- $765 and up for the Clover Mini POS system.
- $835 and up for the Pax E700 POS system.
- $1,605 and up for the Clover Solo POS system.
- $1,735 and up for the Clover Duo POS system.
Merchant services comprise a range of products that let your business accept payments in store, online or both. These services include credit card processing, merchant accounts and POS systems. Credit card processing companies, for example, fulfill merchant services by facilitating payment processing and often providing POS hardware. Banks and POS system providers also offer merchant services.
In addition to offering basic payment processing services, merchant services for online transactions may include e-commerce platforms and payment gateways that provide a secure place for customers to enter their card information online. Merchant services for in-person transactions involve credit card readers and other POS hardware devices, along with payment processing services.
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 they 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 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.
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 providers' 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.
Last updated on January 2, 2025
Methodology
NerdWallet’s ratings of payment processing providers rewards companies whose products and services are priced well and work in a variety of payment scenarios, among other criteria. Ratings are based on weighted averages of scores in several categories, including overall cost, hardware and software options, system capabilities, customer service, contract requirements and integrations. Learn more about how we rate payment processing providers.
These ratings are a guide, but fees, hardware, software and contract requirements can vary widely from business to business and provider to provider. We encourage you to shop around and compare several providers.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Frequently Asked Questions
Merchant services help facilitate the payment process so that merchants can collect funds from card transactions.
Merchant services include payment processing, merchant and business bank accounts and point-of-sale solutions. Some examples of merchant services providers include Helcim, Square and Stripe.
If you’d like to accept credit and debit card payments — and not just cash — your business likely needs a merchant services provider. In addition to helping your business accept card payments, merchant services can also make the checkout process more efficient by offering user-friendly POS hardware, collecting sales data, syncing that data with your accounting software and providing customer support.
