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Accessing the funds that customers remit is a vital aspect of any business operation. When it comes to procuring the best merchant services, it’s essential to recognize that various providers offer a diverse range of pricing structures and accompanying products and solutions. Whether you’re a fledgling enterprise venturing into the world of credit card acceptance or a seasoned business seeking to optimize your merchant services, this guide is here to steer you in the right direction.
The best merchant services make it easy and simple to take payments in-store or online. If you’re looking for the best merchant services for your business, you’ll probably want to be able to accept payments both in person and online. Merchant services make it possible for a business to accept credit and debit card payments by sending the customer’s information to the card networks and issuing banks.
Best Merchant Services
Square
Square is a service for merchants that helps them “start selling fast.” Smaller and newer businesses will be drawn to it because of what it promises: quick setup, no long-term contracts, and no monthly fees. The service also comes with a free mag-stripe reader.
Square has a lot of useful features, such as the ability to send invoices to customers for payment and store their credit card information. It also has the ability to take payments directly by typing them in through the Square Virtual Terminal without a card reader.
Features
Pros
- Free to start
- No monthly fees in Basic Plan
- Wide range of hardware to choose from
Cons
- No phone support
PayPal
PayPal has a business version of the widely used online payment tool, and it says that over 17 million businesses use it. It has the fraud protection and risk modelling that PayPal is known for, as well as a customer service team and a number of ways to pay, such as mobile credit cards and credit cards used in stores.
It makes sense that it also allows its 200 million account holders to accept PayPal. The basic service works best for low-volume transactions and is so well-developed for online shopping that it can only be appealing to online start-ups and small businesses. But more advanced options include a merchant account and features and functions for the Point of Sale.
Features
Pros
- No monthly fees
- Best for online transactions
- Receive payments from outside the US
Cons
- Limited POS features
QuickBooks Payments
QuickBooks Payments is another option to think about. The company used to just make accounting software, but now it also processes online payments and offers full merchant services. You can use a card reader for in-store purchases, pay by phone, or process the transaction online.
It is especially helpful that it works directly with QuickBooks accounting software. This means that even purchases made at the point of sale show up in your accounts right away and in real time. Charges are given up front and are pretty easy to understand. There is a “Pay-as-you-go” plan that doesn’t charge a fee every month.
Features
Pros
- Multiple plans available
- Clear pricing
- Real-time integration with QuickBooks accounts
Cons
- Costs can escalate
- Pricey transaction fees
Payline
Payline is a merchant service that promises to make it easy to accept credit card payments. It has a number of plans that can be customised to fit the needs of any business. It offers a wide range of services, such as mobile, online, in-store, enterprise, and integrated payments, as well as Payline Medical for the healthcare field and business loans.
Payline has a plugin called “Payline Gateway” that can be added to a business website to accept payments. It also has a “virtual terminal” that can be used to manually enter payments made over the phone or in the mail. Swipes are part of Payline Start, which has a monthly fee and a small charge for each transaction.
Features
Pros
- Integrated business loan service
- Payments available in 1-2 days
- Competitive rates
Cons
- Support could be better
- Monthly fee
Stax
Stax has been in use since 2014, and it has a clever pricing plan based on subscriptions that could save high-volume businesses a lot of money on transaction costs. On top of that, Stax stands out by not adding anything to Interchange fees.
There are three plans that small businesses can choose from. The Growth plan includes all of the payment processing features, some dashboards and analytics for reporting, and a free terminal or mobile reader for payments made in person.
Features
Pros
- Monthly flat-rate pricing
- Same-day funding
- Free terminal or card reader
Cons
- Pricing tiers and add-ons make subscriptions complex
Payment Depot
Payment Depot charges businesses on a membership basis, which can save them a lot of money. Payment Depot can be a good choice for businesses that already handle a lot of transactions, but it won’t help new businesses that don’t do as many transactions.
Payment Depot’s membership pricing is different from that of other companies because the processing fees stay the same no matter how much business you do. Because Payment Depot doesn’t mark up credit card fees before passing them on to the customer.
Features
Pros
- No contract processing
- Competitive rates
- Easy to integrate online
Cons
- Best for high-volume business
- Application process
Helcim
Helcim might be interesting to you if you run a small business. With this service, you can take credit cards and debit cards in person and online. You can also: Set up payments to be made regularly and send out invoices.
You can take all major cards, including American Express, Google Pay, and JCB, with a Helcim card reader. There are no contracts or cancellation fees with Helcim, and there are no monthly fees. Helcim is affordable, but paying in person is a lot more expensive than paying online.
Features
Pros
- Low processing fees.
- Transparent pricing.
- Volume discounts.
- No contracts.
Cons
- Customer support isn’t available 24/7.
- No free card reader.
Stripe
Stripe is often compared to Square and PayPal because it offers simple and customizable online checkouts that can be set up right away and don’t require an application. It can also keep track of subscriptions, recurring fees, and card information, and there are many ways to customise it.
Stripe is a good choice for ecommerce businesses and business-to-business (B2B) sellers because it has many online features, doesn’t charge any startup or monthly fees, and has competitive processing rates. Slow deposits and few tools for running a business also kept it from getting a higher score.
Features
Pros
- No monthly fee
- Chargeback protection
- 24/7 customer service online or by phone
- ACH payments supported
Cons
- Complex setup process
- $15 chargeback fee
FAQs
Which merchant account is the best?
- Square
- Stripe
- Stax
- National Processing
- PayPal
What is a good rate for merchant services?
Most merchants should have effective rates that average between 1.70 and 2.1%, depending on your average ticket size, types of cards accepted, and monthly volume.
What is a successful merchant?
When looking for products, a successful merchant has a plan and knows what an average item needs in terms of demand and margin to cover its costs (such as merchandise, selling, variable and fixed costs, etc.) and make a profit.
Who charges the merchant fee?
For each card transaction, a merchant has to pay a fee to the card issuer, which is usually a percentage of the transaction amount plus a flat fee. The financial institution that works in the background to safely process and complete a credit card transaction is called the payments processor.