We receive compensation from brands featured here, which may influence their ranking.Advertiser disclosure
Advertising Disclosure
This site is a free online resource that strives to offer helpful content and comparison features to its
visitors. Please be advised that the operator of this site accepts advertising compensation from certain
companies that appear on the site, and such compensation impacts the location and order in which the
companies (and/or their products) are presented, and in some cases may also impact the scoring that is
assigned to them. The scoring that appears on this site is determined by the site operator in its sole
discretion, and should NOT be relied upon for accuracy purposes. In fact, Company/product listings on this
page DO NOT imply endorsement by the site operator. Except as expressly set forth in our Terms of Use, all
representations and warranties regarding the information presented on this page are disclaimed. The
information which appears on this site is subject to change at any time.
So how do we make money? Our partners compensate us. This may influence which products we review and write
about, but it in no way affects our recommendations or advice. Our partners cannot pay us to guarantee
favorable reviews of their products or services.
Best Merchant Services & Payment Processors for Small Businesses (September 2025)
We compare the top merchant service providers and payment processors for small business (2025).
Learn how to select the right merchant account, lower transaction costs and get paid more quickly.
KEY TAKEAWAYS
Start with your workflow (POS, online checkout, invoices, deposits) and then compare
merchant services pricing.
Typically for steady sales volume, interchange-plus or subscription merchant accounts can
beat flat-rate fees.
If you have dual pricing or surcharging, be sure to comply with card-networks and state
laws.
REVIEWS
The Best Merchant Account Service Providers (2025)
We have reviewed the most reputable merchant services and payment processors. Compare vendors
side by side with clear knowledge about pricing models, contracts, funding times, POS hardware,
and the actual costs affecting your bottom line.
Leaders
Highest approval and industry low rates for every business
Free Trial No
Offer Transparent pricing with powerful POS solutions for small businesses
Pricing Rates as low as 0.15%
Contract Typically 3 years
Funding Same/Next Day
Best For Approval Rates & Low Fees
Stax
Merchant services for high-volume businesses
Free Trial 1 Month
Offer Save 40% on fees with 0% markup processing
Pricing $99/mo + $0.07–$0.15 + interchange
Contract Month-to-month
Funding Next Day
Best For High-volume merchants
Swipe4Free
Same Day Approvals with a 99% Approval Rate!
Free Trial No
Offer The original zero-fee credit card processing solution
Pricing 0% (surcharge model)
Contract Month-to-month
Funding Same Day
Best For Small biz saving on fees
MerchantOne
POS Systems that Delight Customers and Save You Time
Free Trial No
Offer Get a $500 gift card if we can’t beat your rate
Pricing Interchange-plus, low monthly fees
Contract Flexible
Funding Next Day
Best For Startups & small businesses
WorldPay
Get $650 for signing up
Free Trial No
Offer Get $650 for signing up
Pricing Custom, global multi-currency support
Contract 2–3 years
Funding 1–2 Days
Best For Large/global enterprises
Payment Depot
Slash your fees by 40% with membership plan
Free Trial 1 Month
Offer Lock in lowest-cost, no-markup processing with zero exit penalties
Pricing $99/mo + $0.07–$0.15 + interchange
Contract Month-to-month
Funding Next Day
Best For Affordable Credit Card Processing
Clover
Simple to learn and use as it is powerful and versatile
Free Trial No
Offer Secure payment processing solution for restaurants and retail businesses
Pricing Flat-rate, POS included
Contract Month-to-month
Funding Next Day
Best For Retail & restaurants
Paysafe
Empowering businesses to process payments globally.
Free Trial No
Offer Secure global payments for high-risk businesses.
Pricing Interchange-plus program
Contract Flexible
Funding Same/Next Day
Best For Globally Payments
SHORTLIST
Best Merchant Services by Business Type
Find tailored merchant account solutions for your industry.
Restaurants
Retails
Contractors & Home Services
eCommerce & Subscriptions
Professional Services & Healthcare
B2B & Wholesale
Nonprofit & Charities
TARGETS
Choose Merchant Services by Your Goal
Pick the best payment solution for your goals.
TRUST
How We Score Merchant Service Providers
Our independent research team is small-business payments. Each evaluation contains a proven
methodology: we review real merchant account statements, compare quotes from multiple
providers,
and test POS systems and payment gateways for ourselves.
To provide transparency, each article includes a "Last updated" date, cites reputable
sources,
and cites relevant states or card brand regulations. That way, readers can check the terms
for
themselves and be assured that our evaluations have even-handed treatment, accuracy, and
determination of what matters most to small businesses.
INFO
Merchant Services: How Payment Processing Works
A merchant account is a unique business checking account that allows a business to accept
credit, debit, and other electronic card payments. When a customer pays with a card, the
merchant's terminal or website sends the payment data through a payment gateway (for online
payment) or POS terminal (for in person payment) to the merchant's acquiring bank or payment
processor. The processor then connects with the networks (Visa, Mastercard, etc.) and the
customer's issuing bank to authorize and settle the transaction. If approved, the funds (minus
fees for the previous steps) are transferred into the merchant's account. After a few days, it
will show up in the business checking account.
Some modern payment platforms called payment facilitators or payment aggregators - like Stripe
or PayPal - will help you do this faster by categorizing many merchants as a one big account,
but usually give you higher flat fees.
In summary, a merchant account holds the funds for a card-sale, and communicates with banks and
networks, while payment processor or gateway is the technology service that securely routes each
transaction. Merchant services include in-store POS equipment such as card readers and
terminals, and online payment gateways that securely transmit payment data. The service provider
also provides security (PCI compliance, fraud monitoring), reporting and customer support.
Common Pricing Models for Merchant Services
Merchant account pricing typically follows one of three models: Flat-Rate, Interchange-Plus, or
Tiered.
| Pricing Model | How It Works | Pros | Cons |
|---|---|---|---|
| Flat-Rate | A fixed (and cents) percent per transaction for all cards. Charges do not depend on card type. |
|
|
| Interchange-Plus | Actual interchange fee, set by card networks, plus a fixed mark-up (e.g., 0.2% + $0.10). |
|
|
| Tiered | Transactions are ‘tiered’ (qualified, mid-qualified, non-qualified); each can have its own blended rate. |
|
|
Scalability: Grow with Your Business
A payment solution needs to grow with your business - while an early stage startup might only
need basic card acceptance, you certainly will want features such as:
Support for larger transaction volumes.
Multiple store locations or registers.
International payments and multi-currency support.
Recurring billing or subscription tools.
Access to an API for integrations.
Select a provider that allows you to easily upgrade your plan, and flexibility (without
restrictive contracts).
Choosing the Right Provider for Small Business
Things to keep in mind:
Don’t just look at the advertised rate - always verify hidden fees.
Be wary of tiered pricing or bait and switch.
Make sure that the provider integrates with your systems and accepted payment methods.
Match the provider’s strengths to your payment mix (i.e. retail POS vs online).
Compare quotes and negotiate rates.
Be careful about contract traps (auto-renewals, penalties).
Use providers with good support and good reputations.
FAQs
Do I need a merchant account to accept credit cards?
Not always. Payment service providers, like PayPal, Square, and Stripe, will let you accept cards without a dedicated account, but normally at a higher flat fee. Generally, businesses larger in size will benefit from a direct merchant account.
What’s the difference between a merchant account and a payment gateway?
A merchant account is a special account that temporarily holds funds from card sales. A gateway is the software that securely sends card data from the terminal or website to the processor.
How can I lower merchant processing fees?
Negotiate interchange-plus pricing, encourage the use of debit cards, limit chargebacks, review statements periodically, and ask for any unclear fees to be waived.
What typical fees should I expect?
Setup fees, transaction fees, monthly fees, chargeback fees, PCI compliance fees, and equipment costs are the most common.
What's the best pricing model for my business?
Flat-rate is easy but comes with more costs than you are aware of long-term. Interchange-plus is transparent and overall cheaper for growing businesses. Tiered pricing is generally best not to go with.
What does it mean to be PCI compliant?
PCI DSS is a universal standard level of security for card data. Providers may charge you to be compliant, but not being compliant can lead to fines and lose your ability to process cards.
Can I have one merchant account to take payments online and in store?
Yes, many providers offer omnichannel processing.
What mistakes should I avoid?
Never forget to read the terms of the contract, any hidden fees and any integration requirements. Always research reviews as well as support quality.
