Compare Merchant Services Providers (2025)

Merchant services are the financial services and technology businesses need to accept a credit card, debit card, and digital payment from customers. A merchant services provider, (or merchant account provider) is the company that allows you to process payments; they are the intermediary between your business, your customers bank, and the card networks. If you want to accept payments besides cash, (accepting payments like Visa, MasterCard, AMEX, online payments, mobile wallet payments, etc.) you will need a merchant services provider. Merchant services providers set you up with a merchant account; they provide payment processing hardware / software, and they assure that funds from customer card payments will get deposited into your business bank account. In short, if you want to grow your business using convenient payment methods, a reliable merchant services provider is crucial.

Finding the best merchant account provider for a small business comes down to comparing your options while considering the facets that matter most to you. First, look at cost: small businesses should be looking for low credit card processing fees (or reasonable flat-rate plans), and low monthly fees. Next consider usability - you likely want something that is easy to set-up and seamlessly integrates with your point-of-sale or online store, without requiring you to have an I.T. department. You also want to look for contract terms that are flexible (month-to-month is ideal if you are just launching). The payment processors and providers we have compared for the small merchant in this guide has highlighted providers that understand small merchants and their needs. Read the reviews from other small business owners, and don't hesitate to reach out to get a free quote or demo. The ideal provider will offer the right mix of competitive rates; features designed for small businesses, such as an intuitive point-of-sale or business analytics features; and of course good customer support.

When comparing credit card processing firms, be sure to compare all of the fees, not just a rate that's advertised to you. While you should factor in the advertised swipe rate, you need to look at: • Transaction Fees - the percentage + per-transaction amount for each sale. • Monthly Service Fees. • Payment Gateway Fees (if applicable for online payments). • Flat PCI compliance fees. • Equipment renting or purchase costs (for terminals or readers). • Chargeback fees. • Fees for things like early termination or fees for a monthly minimum. Look also at how the pricing is structured: is it a flat percentage of every sale, or is it an interchange-plus markup (i.e., you pay the actual interchange pricing plus a fixed markup), or is it a tiered system, etc. When you do a true fee-by-fee side by side comparison of each provider, you will be able to get a true "effective rate" for each provider. Sometimes a provider that has a slightly higher headline rate may actually be cheaper in total markets because they charge no monthly fees, or vice versa. Our guide and comparison table has tried to uncover these fees so that you can make an informed decision, with no hidden surprises on your bill.

Definitely, not always. Some, as in many traditional merchants account providers, expect to sign a multi-year contract (usually 2-3 years) in order to lock in the rate, but many modern providers post competitive, often lower rates, even without these long-term contracts. Based on our analysis of the top-rated merchant services providers, many are month-to-month with no early termination fee. Month-to-month contracts is advantageous; you can switch in a month if you see a better deal, or if your business needs change, and you’re letting these providers earn your business, month by month. On the other hand, a few folks that advertise low rates (or free equipment) may expect a contract to deliver those rates or condition on the free offerings. Regardless, expect to think through both sides of whether a new contract is worth it: In the event the contract is referenced to fees that are lower and savings that are worth an avoided decision – think long and hard about your considerations (compared to your freedom); and not worry as alternative great merchant services can definitely be found and secured with just a month-to-month term. The business environment/method is transitioning and heading continuously towards better offerings for small businesses. In summary, don’t be socially coerced into a contract with a merchant services provider unless you confident the provider is someone you want to commit to.

A "high approval rate" means that the merchant services company accepts the vast majority of merchants when applying for a merchant account. For example, a provider may claim to have a 98%+ approval rate for all new merchant applications merchantservices-usa.com . If you've been declined in the past, or if you're considered high-risk by banks (even when you've not done anything inappropriate to warrant this), this may be important to you. A high approval rate usually is a sign that company has more lenient underwriting or simply specializes in getting high-risk businesses approved, often by having several different backend processors they partner with. If you're a traditional low-risk business, probably approval rate is not that critical to consider (most main stream providers will approve you so long as your credit score and additional documents are in check). But, if you have less than good credit, are a new business without any processing history on are in a weird industry, going with a provider that advertises a high approval rate will save you time and heartache, because you are likely to get approved easily and start processing payments quickly with less obstructions (more quickly than not). Don't lie on your application, and if bad luck (one provider declines you), try other companies that market this.