Our Take
3.6
NerdWallet rating
The bottom line:
Stax Payments (formerly called Fattmerchant) is a merchant services provider known for its subscription-based pricing and interchange-plus rates. It may be a good fit if your business processes a minimum of $5,000 in credit card transactions monthly and is looking for an alternative to flat-rate processing.
Stax
Payment processing fees
0% + $0.08 Plus interchange
Monthly fee
$99.00 and up.
Learn more
on Stax's website
Pros & Cons
Pros
- Subscription model can help high-volume businesses save money.
- Add-on features, like brand customization tools.
- No long-term contracts.
Cons
- Pricing isn't as transparent as competitors'.
- Next-day funding not available for all merchants and may cost extra.
Full Review
For a monthly subscription fee with no long-term contract required, users can access Stax Payment’s payment platform and process both in-person and online payments. The company doesn’t add a percentage markup on interchange rates, but you will pay a small processing fee in addition to the monthly subscription fee.
Here's what's included, on top of payment processing services, in each of Stax Payment’s subscription plans:
- Analytics.
- Invoicing.
- Hosted payment pages.
- Payment links and QR codes.
- Scheduled and recurring payments.
- One-click online shopping cart.
The company sells handheld terminals, countertop registers and mobile card readers from providers like Clover, Dejavoo and Swipe Simple. It also integrates with QuickBooks and a variety of shopping carts.
Stax Payments is best for businesses that:
- Process a high volume of transactions: Stax Payment’s subscription-based pricing model may result in lower processing costs for high-volume businesses processing at least $5,000 in credit card transactions monthly. The $99 monthly subscription fee seems expensive upfront, but the amount high-volume businesses could save in processing fees could make it worth it, especially in the long term.
- Want to avoid flat-rate pricing models: While flat-rate processing models are convenient and make it easy to estimate processing costs ahead of time, they often aren’t the most cost-effective option for higher-volume businesses. Stax Payments is a good alternative, but you’ll need to reach out to the company to get details on hardware costs.
Deciding factors
Payment processing model | Subscription based. |
Payment processing fees |
|
Monthly fee |
|
Hardware cost | Quote-based. |
Contract length | No long-term contracts. |
Customer support | Phone support weekdays 9 a.m. to 5:30 p.m. EST; email support also available. |
Where Stax Payments stands out
Subscription-based pricing model
Unlike flat-rate payment processors, Stax Payments passes interchange savings to the merchant and charges a monthly subscription fee. Since merchants need to pay a subscription fee, Stax Payments keeps processing fees low at 8-15 cents on top of interchange. In general, the company’s pricing becomes competitive with other pricing models when a business’s monthly savings from the lower processing fees offset the monthly subscription cost.
Add-on features
Stax Payments offers some features that can be used to further customize its plans. For example, you can add ACH processing capabilities, a POS terminal protection plan or brand customization tools for invoicing, receipts and online payments. Additionally, features such as credit card surcharging can help you reduce the cost of payment processing by passing those fees to customers.
No long-term contracts
Stax Payments doesn’t make businesses sign long-term contracts in exchange for low processing rates. Instead, it offers month-to-month subscriptions. Though switching payment processing companies is often tedious no matter what, businesses won’t need to worry about termination fees should they decide Stax Payments isn’t the right fit. However, they do need to give the company 30 days’ notice before canceling.
Where Stax Payments falls short
Not transparent about pricing
Stax Payments states that it’s committed to transparency, but it offers little information about pricing aside from monthly subscription fees. Other payment processors provide more detailed pricing information such as processing fees, hardware pricing, chargeback fees and other costs. Knowing the total cost of the services offered by Stax Payments would be helpful when you’re comparing it to other credit card processing companies.
Next-day funding isn’t guaranteed
While some Stax merchants are approved for next-day funding, they may have to pay extra for it. And other businesses with little to no processing history may only be able to access deposits after 48 hours. Alternatively, competitors often offer next-day funding for free.
Alternatives to Stax Payments
Helcim
Why we like it: Helcim is an interchange-plus merchant account provider that offers in-person and online payment options for businesses. It has a variety of other features, too, such as unlimited invoicing, a self-service customer portal and the option to set up an online store. Read NerdWallet’s full Helcim review for more information.
$0.
- 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).
- $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
Why we like it: Square is a flat-rate payment processor that offers custom pricing to some businesses that process more than $250,000 annually. You don’t have to sign a contract with Square, and you can set up a free online store. There are also additional features, like dispute management, fraud prevention and an offline operating mode. Read NerdWallet’s full Square review for more information.
- $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.
- 2.6% plus 15 cents for in-person transactions with all free plans.
- 2.6% plus 10 cents for in-person transactions with paid restaurant plans.
- 2.5% plus 10 cents for in-person transactions with paid retail and appointments plans.
- 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 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).
- $149 for Square Kiosk for self-serve ordering.
- $299 for Square Terminal mobile card reader with built-in printer (monthly financing available).
- $399 for Square Handheld portable POS system with built-in barcode scanner (monthly financing available).
- $799 for Square Register two-screen system (monthly financing available).
Learn more
on Stax's website
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.
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