What are merchant services?
Merchant services allow a business to accept credit and debit card transactions by transmitting the customer information to card networks and issuing banks, thus giving businesses access to the payments they receive from customers.
The companies that offer merchant services vary in the related products and services they offer, as well as in their pricing models (flat rate, interchange-plus, membership). Here’s our list of the best merchant services and what sets them apart.
Our Nerdy picks for
Best Merchant Services
Product | Payment processing fees | Learn more | ||
|---|---|---|---|---|
Helcim Learn more on Helcim's secure website | 4.5/5 Best for Overall option | 0.30% + 8¢ plus interchange, in-person; 0.50% + 25¢ plus interchange, online. | $0 | Learn more on Helcim's secure website |
Square POS Learn more on Square POS's secure website | 5.0/5 Best for Flat-rate option | 2.6% + 10¢ in-person; 2.9% + 30¢ online. | $0 Free plan; $29 Plus plan; Custom plan available. | Learn more on Square POS's secure website |
Dharma Merchant Services | 4.5/5 Best for E-commerce | 0.15% + 8¢ plus interchange in-person; 0.20% + 11¢ plus interchange online. | $25 | |
Stripe Learn more on Stripe Payments' secure website | 5.0/5 Best for Flat rate for online sales | 2.7% + 5¢ in-person; 2.9% + 30¢ online. | $0 | Learn more on Stripe Payments' secure website |
Payment Depot Learn more on Payment Depot's secure website | 4.0/5 Best for Large transaction amounts | $0 plus interchange (no markup). | $79 and up. | Learn more on Payment Depot's secure website |
PaymentCloud Learn more on PaymentCloud's secure website | 3.5/5 Best for High-risk businesses | Quote-based. | $10 and up | Learn more on PaymentCloud's secure website |
National Processing Learn more on National Processing's secure website | 3.5/5 Best for Customized rates | 0%-1.5% + 0¢-48¢ plus interchange; varies by business and transaction type. | $10 and up. | Learn more on National Processing's secure website |
QuickBooks Payments | 5.0/5 Best for QuickBooks loyalists | 2.4% + 25¢ in-person; 2.9% + 25¢ online. | $0 QuickBooks subscription required. |
Our pick for
Overall option
Helcim
Learn more
on Helcim's secure website
Payment processing fees
0.30% + 8¢
plus interchange, in-person; 0.50% + 25¢ plus interchange, online.
Monthly fee
$0
Helcim’s transparent pricing, lack of monthly fees and volume discounts are what pushes it to the top of the list. And without a contract or cancellation fees, there’s no penalty to close your account.
Pros
- Low processing fees.
- Transparent pricing.
- Volume discounts.
- No contracts.
- No monthly fees.
- No cancellation fees.
- Free virtual terminal.
- Fully hosted online store options.
Cons
- Customer support isn't available 24/7.
- No free card reader.
Our pick for
Flat-rate option
Square POS
Learn more
on Square POS's secure website
Payment processing fees
2.6% + 10¢
in-person; 2.9% + 30¢ online.
Monthly fee
$0
Free plan; $29 Plus plan; Custom plan available.
Square is our top pick for flat-rate pricing with no monthly fees, low transaction rates and free virtual terminal.
Pros
- No monthly fee.
- Low transaction rates.
- No long-term contracts.
- Quick setup.
- Free card reader.
- Free virtual terminal.
- Free dispute management services for chargebacks.
- No processing fees on customer refunds.
Cons
- 24/7 live phone support is not available for payments.
- Readers are not compatible with Windows devices.
Our pick for
E-commerce
Dharma Merchant Services
Payment processing fees
0.15% + 8¢
plus interchange in-person; 0.20% + 11¢ plus interchange online.
Monthly fee
$25
Dharma specializes in helping e-commerce businesses and has one of the lowest rates for card-not-present transactions.
Pros
- Low processing rates.
- Pricing transparency.
- Specializes in e-commerce.
- Reduced rates for large monthly processing volume.
- 24-hour help lines.
- Virtual terminal included.
Cons
- Monthly fee.
- Account closure fee of $49.
Our pick for
Flat rate for online sales
Stripe
Learn more
on Stripe Payments' secure website
Payment processing fees
2.7% + 5¢
in-person; 2.9% + 30¢ online.
Monthly fee
$0
Stripe is best for online sales because it supports processing payments in multiple currencies, allowing customers to charge in their native currency and businesses to receive funds in theirs.
Pros
- No monthly fees.
- Low transaction rates.
- Supports over 135 currencies.
- Your account can be terminated at any time.
- Developer platform.
- Support is available 24/7 by phone request, chat and email.
- Tools to customize payment flows on your website.
Cons
- No free reader.
- Virtual terminal allows the customer to enter card information but not the merchant.
Our pick for
Large transaction amounts
Payment Depot
Learn more
on Payment Depot's secure website
Payment processing fees
$0
plus interchange (no markup).
Monthly fee
$79
and up.
Payment Depot offers membership plans that give businesses access to wholesale interchange rates at a set monthly fee.
Pros
- Simple and transparent pricing model.
- Custom plans are available.
- No cancellation fees.
- Free virtual terminal.
- Satisfaction guarantee with option for refund of membership fee.
- Customer support is available 24/7.
Cons
- Monthly membership fees.
- A 20% restocking fee for returned terminals.
Our pick for
High-risk businesses
PaymentCloud
Learn more
on PaymentCloud's secure website
Payment processing fees
Quote-based.
Monthly fee
$10
and up
PaymentCloud specializes in services for high risk industries, although they also offer services to low and medium risk businesses.
Pros
- Specializes in high-risk merchant accounts.
- Card reader and terminal included with account.
- Cancellation fees are waived.
- Free rate review and analysis.
- 24/7 customer support.
- Chargeback prevention tools.
Cons
- Processing rates and hardware costs not available on website.
- Monthly volume limit may apply.
Our pick for
Customized rates
National Processing
Learn more
on National Processing's secure website
Payment processing fees
0%-1.5% + 0¢-48¢
plus interchange; varies by business and transaction type.
Monthly fee
$10
and up.
National Processing customizes its fees based on industry and risk. For example, the rate a restaurant pays is less than that of a retail organization.
Pros
- Customized rates based on industry.
- No monthly minimum processing volume.
- High-risk payment processor.
- 24/7 phone support.
- Offers a virtual terminal.
Cons
- Monthly fees.
- Contract with possible early termination and restocking fees.
Our pick for
QuickBooks loyalists
QuickBooks Payments
Read Review
Read review
on NerdWallet's secure website
Payment processing fees
2.4% + 25¢
in-person; 2.9% + 25¢ online.
Monthly fee
$0
QuickBooks subscription required.
For loyal QuickBooks users, QuickBooks Payments can process online, in-person and invoiced transactions.
Pros
- No contract.
- No cancellation fees.
- Competitive pricing.
- Instant deposits are available for an extra 1% fee.
- Invoice formatting lets customers pay online.
Cons
- QuickBooks Desktop users and new customers may pay higher fees.
- 24/7 phone support is not available.
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Helcim: Best overall option
Payment processing:
- Interchange plus 0.3% and 8 cents per in-person transaction (if less than $25,000 in monthly card transactions).
- Interchange plus 0.5% and 25 cents per online transaction (if less than $25,000 in monthly card transactions).
- Interchange plus 0.5% and 25 cents per manually keyed transaction (if less than $25,000 in monthly card transactions).
- 0.5% plus 25 cents for ACH payments.
Monthly software fees: $0
Hardware cost:
- $109 for a mobile card reader (with stand).
- $79 for a mobile thermal printer.
Why we like it: It's easy to sign up for a Helcim account online by providing some basic information. Funds from your transactions are deposited within one to two business days. Customer support is available weekdays from 9 a.m. to 9 p.m. Eastern time and on the weekends from 1 p.m. to 9 p.m. Eastern time. You can sync data with both QuickBooks Desktop and Online. Other integrations include WooCommerce, Magento and Zone 4.
Square: Best flat-rate option
Payment processing:
- 2.6% plus 10 cents for in-person transactions (2.5% plus 10 cents with Retail Plus plan).
- 2.9% plus 30 cents for online transactions or invoices without a card on file.
- 3.5% plus 15 cents for manually keyed transactions or card-on-file invoices.
- 2.6% plus 10 cents for in-person transactions (2.5% plus 10 cents with Retail Plus plan).
- 2.9% plus 30 cents for online transactions or invoices without a card on file.
- 3.5% plus 15 cents for manually keyed transactions or card-on-file invoices.
- $0 for Square POS, Restaurant, Retail and Appointments Free plans.
- $29 for Square POS Plus and Square Appointments Plus plans.
- $60 for Restaurant Plus and Retail Plus plans.
- $69 for Square Appointments Premium plan.
Hardware:
- $0 for Square magstripe-only card reader ($10 for each additional) or if using Tap to Pay for iPhone (iPhone not included).
- $49 for Square Reader contactless and chip card reader.
- $149 for Square Stand iPad POS or Square Stand Mount (iPad not included).
- $299 for Square Terminal mobile card reader with built-in printer.
- $799 for Square Register two-screen system.
- $659-$1,479 for various bundles of stands, cash drawers, printers and card readers.
Why we like it: Square can accommodate all types of credit card transactions. You receive your funds as fast as the next business day for free, or you can pay a fee to receive funds instantly. Square also offers free dispute management for chargebacks. Free phone support is available during the week from 6 a.m. to 6 p.m. Pacific time. Square integrates with QuickBooks, Xero, Stitch Labs and other popular apps.
Dharma Merchant Services: Best for e-commerce.
Payment processing:
- 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.
- 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.
Hardware cost:
- $149 for Walker 2 chip, swipe and NFC card reader.
- $295 for FD-150, Verifone Engage V200c or Dejavoo Z11 chip-and-pin card reader with printer.
- $369 for Ingenico Desk/5000 card reader.
- $480 for FD-150, or V200c or Z11 card reader with separate pinpad.
- $599 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.
Why we like it: With Dharma Merchant Services, 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. You can export data into an Excel file to import into QuickBooks.
Stripe: Best flat rate for online sales
Payment processing:
- 2.9% plus 30 cents for online transactions.
- 2.7% plus 5 cents for in-person transactions.
- 3.4% plus 30 cents for manually keyed transactions.
- 3.9% plus 30 cents for international cards or currency conversion.
- 2.9% plus 30 cents for online transactions.
- 2.7% plus 5 cents for in-person transactions.
- 3.4% plus 30 cents for manually keyed transactions.
- 3.9% plus 30 cents for international cards or currency conversion.
- $0 for standard Stripe Connect.
- $2 per account for Stripe Express (for marketplaces) or Stripe Custom (the white-label option that allows businesses to customize the checkout process).
Hardware cost:
- $59 for Stripe Reader M2.
- $249 for BBPOS WidePOS E card reader.
Why we like it: With Stripe, payments are typically processed in two business days. Stripe integrates with a large number of apps and automatically syncs with QuickBooks and NetSuite. You can use the developer tools in Stripe Terminal and pre-certified card readers to build your own in-person checkout system.
Payment Depot: Best for large transaction amounts
Payment processing:
- Interchange + $0 per transaction, plus $59 month for Starter plan.
- Interchange + $0 per transaction, plus $79 month for Starter Plus plan.
- Interchange + $0 per transaction, plus $99 month for Growth plan.
Hardware cost: Sells card readers as well as countertop and mobile point-of-sale hardware from Clover, Dejavoo, First Data, Poynt and SwipeSimple, but prices are undisclosed. You have to request a quote.
Why we like it: Payment Depot, which is owned by Stax, is an independent sales organization that handles merchant accounts for Wells Fargo Bank. Automatic deposit of funds within one to two days. Support is available 24/7. Payment Depot integrates with Shopify, OpenCart, QuickBooks, PrestaShop, Shift4Shop, BigCommerce, WooCommerce, Magento, Zen Cart, Revel, NCR and Authorize.net.
PaymentCloud: Best for high-risk businesses
Payment processing: Undisclosed/quote only. You have to call to get pricing information.
Monthly software fees: Undisclosed/quote only. You have to call to get pricing information..
Hardware cost: Undisclosed/quote only. You have to call to get pricing information.
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. The platform integrates with QuickBooks and most shopping carts including BigCommerce, WooCommerce, Shopify and Magento.
National Processing: Best for customized rates
Payment processing:
- Restaurant: interchange plus 0.14% and 7 cents per transaction.
- Retail: interchange plus 0.18% and 10 cents per transaction.
- E-commerce: interchange plus 0.29% and 15 cents per transaction.
- Subscription: interchange plus 9 cents per transaction.
- Subscription Plus: interchange plus 5 cents per transaction.
Monthly software fees:
- $9.95 for Restaurant, Retail, eCommerce or Non-Profit plans.
- $15 for ACH processing.
- $59 for Subscription plan.
- $199 for Subscription Plus plan.
Hardware cost: Undisclosed/quote only. A mobile reader is included with most plans at no additional cost. Based on the plan you select, a terminal and PIN pad may also be included. A large number of POS devices are available including Clover hardware.
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, OpenCart and Shopify.
QuickBooks Payments: Best for QuickBooks loyalists
Payment processing:
- Pay as you go: 2.7% for in-person transactions; 3.5% per keyed transaction.
- Pay monthly: $20 per month; 2.3% plus 25 cents for in-person transaction; 3.2% plus 25 cents per keyed transaction.
- 1% for ACH transactions.
For QuickBooks Online users
- 2.4% plus 25 cents for in-person payments.
- 2.9% plus 25 cents for online and invoiced payments.
- 3.4% plus 25 cents for manually keyed payments.
- 1% for ACH transactions.
For QuickBooks Desktop users
Pay as you go plan (no monthly fee):
- 2.4% plus 30 cents per swiped transaction.
- 3.5% plus 30 cents per keyed-in transaction.
- 3.5% plus 30 cents per invoiced transaction.
Pay monthly plan (monthly fee):
- 1.6% plus 30 cents per swiped transaction.
- 3.3% plus 30 cents per keyed-in transaction.
- 3.3% plus 30 cents per invoiced transaction.
- $1,200 one-time fee for POS Basic.
- $1,700 one-time for POS Pro.
- $1,900 one-time for POS Multi-Store.
Hardware cost:
- $49 for QuickBooks card reader.
- $79 for QuickBooks card reader with charging stand.
- $389 for black pin pad card reader.
- $900 for black or white hardware bundle (cash drawer, receipt printer, barcode scanner, pin pad card reader).
- Other printer, stand and scanner accessories available.
Why we like it: You’ll need a QuickBooks Online account to use QuickBooks Payments. Funds are typically deposited the next business day when the cutoff time of 3 p.m. Pacific time is met. Phone support is available Monday through Friday from 9 a.m. to 8 p.m. Eastern time. QuickBooks Payments integrates with Shopify, Amazon, eBay, WooCommerce, Magento, BigCommerce, Walmart and Etsy shopping carts.
Last updated on February 7, 2023
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.