Best online credit card merchant services

By | Friday, April 23, 2021

Navigare

  • Best Merchant Services
  • What Is a Merchant Account and Do You Need One to Accept Credit Card Payments?
  • Best Credit Card Processing Services
  • Additional menu
  • Best Merchant Services

    Perhaps you already have a online store and are looking to expand to best online store best the first credit maybe because of the COVID online. Liz Hull June 21, at am. Helcim Merchant Helcim Weaknesses No contracts or early card fees Limited third-party integrations Free Card, invoicing, and online store software Not suitable for high-risk businesses International services processing Best for high-volume vendors. Omni software and integrated payments. These cookies will be stored in your credit only with merchant consent. Services to jump straight to the answer?

    Best online credit card merchant services

    Some point of sale systems might require merchants to use a payment gateway for in-person transactions, but as a rule, gateways are needed only for web-based sales. This stuff is confusing. Just remember this:. Everyone wants to know about mobile processors like Square and easy to use online processing systems like PayPal. What are they? How do they work? Are they the same as merchant accounts? Okay, fine. When mobile processors first hit the scene, we had to wonder how the heck these services could possibly set up merchant accounts so fast with no setup fee and no monthly fees, and why they had so many pitfalls as well.

    The idea of accepting card payments with a free credit card reader paired any old smar tphone — and no monthly fee for the merchant account — seemed too good to be true. So how do they process payments, then? With payment service providers PSPs , you have indirect agreements with the processing companies. The PSP is a middleman. Instead of opening an account just for you, a PSP will funnel your transactions, along with hundreds or thousands of other users, through shared accounts.

    In , Visa expanded and redefined its internet payment service provider IPSP model to include sales to traditional merchants, which allowed for in-person mobile payments. Thus, the classification was renamed simply payment service provider and enabled in-person payments to process under this designation. Providers like PayPal had been aggregating internet-based payment service for years to make accepting credit card payments as easy and cheap as possible for a small home-based business.

    But bringing that same model to physical sales — that was a novel service. MasterCard also uses the term payment service provider, but Discover uses payment facilitator to mean the same thing. The result of this redefinition? A huge boom in low-cost, in-person payment processing.

    Low-cost sounds great, but it has its limitations. While a merchant account provider has an in-depth, intensive application and underwriting risk determination process, PSPs do not. The result is that merchant accounts tend to be very stable, while PSP accounts tend to be subject to sudden account terminations and funding holds. You definitely do not want to use a PSP in place of an offshore merchant account.

    While processing rates might be a little higher than if you had your own merchant account, PSPs usually do not charge a monthly fee or other scheduled fees. You just pay for what you use, which is ideal for businesses that only process sporadically. You will have to make peace with the potential for account terminations and funding holds, especially for those working in high risk industries where customers are prone to dispute charges.

    Still not sure what you need? This chart should make it clear:. Not sure whether the processing company you are looking at is a merchant account services provider or a PSP? Some PSPs do charge a monthly service fee, but most either will not or else will provide a feeless option alongside an option with a fee. There are exceptions, but this is a pretty good bet. Mobile credit card processing accepting card payments on a smartphone or tablet is not the same as accepting mobile payments.

    Yes, I know this is confusing. A lot of people believe that bank account transfers are under the domain of merchant accounts. This is not true. A completely different service must be set up to do ACH automated clearing house payments.

    We have a whole separate post about accepting ACH payments. Credit card processing is not exactly synonymous with payment processing. The truth is that credit card processing is a type of payment processing. You can read more about this in our in-depth guide to payment processing.

    A card reader is a little device that connects to a smartphone or tablet. Some providers even offer them for free. A credit card machine, on the other hand, is a larger device that usually includes some features a reader will not, such as a built-in receipt printer, a PIN pad, and the ability to use a direct internet or phone connection.

    Credit card readers are usually at the whim of Wifi or cell phone service, which can be problematic. And for the ultimate guide to credit card payment processing, take a look at our comprehensive workbook , which also helped inspire this page. Get Started With Featured Pick! SMB Global is our current featured vendor in this category. Get Started. Try QuickBooks Today. Fattmerchant is one of our top picks for Credit Card Processing! We love Fattmerchant as a credit card processor for its predictable pricing, excellent service, and integrated billing features.

    Earn 1. BlueVine's small business checking has a 1. PaymentCloud is one of our top picks for credit card processing! Donorbox is one of our top picks for Donation Systems! Donorbox is a versatile, feature-rich, and easy-to-use donation management system that can help you attract more recurring donors.

    Get started today for free. BigCommerce is one of our top picks for eCommerce Platforms! Bigcommerce offers exceptional tools for all eCommerce businesses from startups looking to build a site to enterprise-level systems. Helcim is one of our top picks for payment processing! Helcim has exceptional service and an advanced platform that we highly recommend for businesses in Canada and the US. Get three months free when you sign up with Helcim through our links!

    OnDeck is one of our top picks for Business Loans! OnDeck is our featured vendor for business loans and lines of credit. Lendio is a free-to-use marketplace that allows you to compare lenders side-by-side. Our reviewers like ADP Payroll for its advanced employee management, strong payroll features, and great customer support. We love Revel POS for its advanced features and exceptional versatiliy in both the retail and restaurant industries.

    Fattmerchant is a merchant service provider with a subscription or membership model where businesses pay a higher monthly fee and low transaction fees. Fattmerchant offers user-friendly software called Omni that includes invoicing, recurring payment tools, and reporting features.

    Omni software and the membership pricing model make Fattmerchant an ideal option for established or higher-volume businesses that process payments via invoice or subscriptions like healthcare and wellness companies, field services like construction, and professional services like lawyers offices. Visit Fattmerchant.

    However, once you reach that threshold, Fattmerchant offers an excellent value with interchange-plus pricing and very low flat-rate transaction fees. To learn more about how Fattmerchant offers an excellent value to growing, high-volume businesses, read our full Fattmerchant review.

    At the time of publication, Fattmerchant has an average 5-star rating from over 30 user reviews. Dharma is a traditional merchant services provider offering interchange plus credit card processing services for storefronts, restaurants, and B2B sales. Visit Dharma. To see if Dharma is the right fit for your business, read our full Dharma Merchant Services review.

    PayPal is a household name offering user-friendly payment processing for online, mobile, and in-store sales. PayPal offers competitive flat-rate fees and is quick and easy to sign up for. However, PayPal is not a traditional merchant account, which means business accounts can be flagged and frozen if the company deems anything suspicious, which is problematic for businesses relying on daily deposits.

    So, PayPal is a top-recommended option for low-volume and occasional sales, or as an additional payment option for online stores. Visit PayPal. PaymentCloud is a popular merchant service provider that specializes in high-risk accounts. If you are a high-risk business, for the type of products or services you sell, or because of poor credit, PaymentCloud could be a good fit, even if you have been turned down by other merchant account providers.

    PaymentCloud does offer traditional merchant services in addition to high-risk accounts. However, high-risk payment processing is what PaymentCloud is best known for. Many other merchant service providers, including Dharma, refer high-risk businesses to PaymentCloud. Visit PaymentCloud. PaymentCloud does not have any publicly disclosed pricing, which is common for high-risk merchant account providers.

    PaymentCloud has no application fees, setup fees, or annual fees. Monthly fees and minimums will be determined when you open an account.

    Generally speaking, high-risk payment processing is more expensive, requires more extensive applications and on-boarding, and can come with more restrictions than traditional merchant accounts. Helcim is an all-in-one merchant account provider that also has sophisticated online sales solutions.

    Competitive interchange-plus pricing, along with ecommerce tools make Helcim a great choice for established businesses, especially those that want to sell online. Helcim Strengths Helcim Weaknesses No contracts or early termination fees Limited third-party integrations Free POS, invoicing, and online store software Not suitable for high-risk businesses International payment processing Best for high-volume vendors.

    Visit Helcim. There are no contracts or cancellation fees. It also syncs to the Helcim Payments App. Chase Merchant Services offers merchant services that are a great alternative for any business looking to work with a traditional bank, especially if your business accounts are with Chase. Having Chase as both the processor and receiving bank in transactions can provide speed and security by removing the middleman. Chase is one of the largest processors in the US and one of the few direct processors that offer flat-rate fees for small businesses.

    Visit Chase Merchant Services. Chase does not publicly disclose merchant account rates and fees. However, based on information gathered from previous conversations with Chase and other online reviews, it offers flat-rate processing for small businesses and interchange-plus pricing upon request and approval. Because Chase is a direct processor, there is more room to negotiate different rates and structures.

    Chase also does not disclose hardware pricing but offers a range of card reader and terminal options. Some plans come with a free terminal but typically require a long-term contract. If you purchase the hardware outright or reprogram your existing equipment, month-to-month billing is available. Stripe is a payment processor with sophisticated software and APIs ideal for online businesses and apps that want to create a custom checkout solution.

    Visit Stripe. Stripe has a pay-as-you-go pricing model with flat-rate transaction fees. There are no monthly fees and the transaction fees are the same for every card type. Choosing the right merchant service provider for your business is an important choice, and unfortunately, the payment processing industry is not known for transparency.

    A merchant service company is a financial service provider. They are used by businesses to accept credit or debit card payments through a point-of-sale system, website, or online ordering system. There are many different types of merchant accounts and payment processing solutions. The most common options for small businesses are aggregators and independent sales organizations ISOs.

    Larger businesses like chain stores are more likely to use direct processors. The only direct processor we included in our list is Chase Merchant Services , because it has programs geared toward small businesses and could be a good fit for those already using Chase for business checking, credit, or savings accounts. Aggregators, such as Square, serve as a kind of middleman between the business and the bank or card associations. The percentage fees are typically higher than a direct processor, but still, make the most financial sense for small or startup businesses.

    They also typically have software such as POS systems or invoicing tools that are used along with the payment processing service. ISOs like Payment Depot, provide the services of a direct processor but under a different brand name. ISOs typically require an application process but offer the most economical pricing for established SMBs. For small businesses, ISOs are a better option than direct processors because they can offer lower rates and more user-friendly software features.

    Price and ease of use are the two most important factors. Always compare rates, and do the math for yourself, even though most providers will offer quotes. Then, consider how the payment processing tools will integrate with your other software systems. Read user reviews to spot any consistent complaints. Choosing the right merchant account provider can save your business lots of money in fees each month. The best payment processors are also easy to use, offer a good value with business solutions, and integrate with popular software.

    Plus, merchant accounts should be transparent and reliable. Its all-in-one simplicity, low flat-rates, and free POS business management tools make it practically unbeatable for most small business needs. Jump back to comparison chart 6. Helcim Helcim. Helcim is our pick for the best all-in-one platform provider because of its Helcim Commerce integrated payments platform.

    Helcim Commerce supports recurring billing and includes a customer information database. Tokenization, inventory management, and other features critical to running an online business are also built-in.

    Helcim offers payment processing services to US and Canadian merchants. It gives you month-to-month billing with no long-term commitment and no additional cost to close your account. Helcim uses interchange-plus pricing exclusively. Get Started with Helcim. Jump back to comparison chart 7. Durango Merchant Services is our top pick for high-risk businesses needing online merchant credit card processing.

    High-risk businesses typically have a harder time finding providers that will approve their applications for merchant accounts. Because Durango works with so many back-end processors to get you set up with an account, all of these factors will be highly variable and subject to negotiation. Unfortunately, you should fully expect to pay higher processing rates than a comparable low-risk business would have to pay.

    You should also anticipate being placed on a tiered pricing plan, although interchange-plus is sometimes available. However, in an industry riddled with not entirely ethical service providers, Durango is one of the few high-risk providers that enjoys an excellent reputation for fair prices and contract terms.

    The company goes out of its way to get you the best and most affordable deal possible. Durango will assign a dedicated account manager who will be your primary point of contact if you encounter any problems. Get Started with Durango Merchant Services. Jump back to comparison chart 8.

    PayPal PayPal. The hard way involves working with APIs that require computer programming skills. The easy way is to add some readily-prepared code to your website yourself.

    PayPal excels at the latter, offering simple integration of a whole host of payment processing services. There are no monthly minimums and no other fees in addition to the transaction cost itself 2. If you wish to have more services, you can. You can integrate PayPal as a supplemental option with PayPal Checkout or make it your primary processor. PayPal offers an entire suite of services directed at online merchants. Along with being able to accept online payments and send invoices, PayPal uses its own gateway, which you can use on a per-transaction basis or by paying a monthly fee.

    Nonprofits are eligible for a discount and can easily set up a donation button on their site. PayPal is by default PCI compliant — it does so by redirecting your customers to its site to complete their transactions. Jump back to comparison chart 9. Stripe Payments Stripe Payments. Stripe Payments, like PayPal, has reached the point where its name is synonymous with internet commerce.

    Stripe is open to merchants worldwide with numerous currency options and support for many alternative payment methods and local payment options across North America, the EU, and Asia. Stripe gives you a gateway, a hosted payment page, PCI compliance, and the ability to migrate your customer data if you ever decide to leave. Stripe charges just 2. Stripe also offers ACH payments at 0. It can take longer to set up an account with a direct processor because they investigate your financial stability before approving you.

    Third-party processors — also known as payment service providers PSPs or aggregators — only perform a cursory financial vetting before approving the account. However, because so little underwriting is done beforehand, the processor analyzes your activities with greater scrutiny afterward, and you are more likely to encounter an account hold or termination, usually with little to no notice.

    If you plan to sell online, you need a payment gateway. However, the concept of a gateway can become somewhat fuzzy because third-party processors, such as PayPal and Stripe Payments, combine their services with a built-in gateway. Merchant account providers may have their own gateways available for an additional fee, or they may choose to set you up with a third-party gateway not to be confused with a third-party payment processor.

    For a monthly fee, SaaS shopping carts offer web hosting and storage, SSL certificates, and other tools to build and maintain a website. Self-hosted solutions are typically free to download because they are open-source, and they offer a lot of features and customizability — if you have the technical know-how to pull it off. The big change here is that Visa and Mastercard both postponed updates to their interchange fees in Usually, both companies update their rates twice a year.

    Changes are expected in Visa will probably update rates in April Rumor has it both companies had planned to raise their interchange fees on eCommerce transactions but held off due to the pandemic-fueled growth in card-not-present transactions. Nevertheless, online credit card fraud is a growing problem that will likely raise rates in the near future.

    To combat this, Visa and Mastercard are recommending that merchants use tokenization. If you have the capacity, now is a good time to get ahead of the curve and implement tokenization, as it may affect your rates down the road. Choosing a good online merchant services provider involves more than just finding one that offers you lower processing rates and account fees than the competition. Here are some other considerations you should take into account when selecting a provider:.

    One of the safest ways to pay online is probably through a method that uses tokenization — which means Apple Pay, Google Pay, Samsung Pay, or similar. That way, the actual card number is never transmitted online. Even if the number is somehow stolen, the card associations can easily deactivate the token and send the consumer a new card.

    Most eCommerce-enabled online payment service providers offer either a combined gateway and processing service or let you choose a compatible gateway.

    That depends on your sales volume, the nature of your business, and the features you require. The best eCommerce credit card processing provider for one company will not be the best for another. They all fill slightly different niches. That depends on your sales volume and whether or not your business is high-risk.

    Low-volume businesses should consider Square or PayPal. High-volume businesses should consider wholesale pricing, like with Fattmerchant or CDGcommerce. Some providers, such as Stripe Payments and PayPal, include recurring billing support as a standard feature of their service. Other online payment providers offer recurring billing support as an optional feature, and they often charge a little extra for it. Security features such as support for tokenization and encryption are pretty much the industry standard today, but some providers offer more robust security options than others.

    Data breach insurance is a worthwhile investment for online businesses, as the cost of a breach could easily put you out of business without it. You might think that this would be a pretty easy thing to accomplish, but some providers make it exceedingly difficult and expensive — probably to discourage you from dropping their service.

    If you want to start an eCommerce business, there is no shortage of excellent online payment processors to help you take card payments. You might be just getting started and need a flexible, pay-as-you-go provider with no minimums. Or you could already have a high volume of transactions and just want a better processing rate or a more reliable processor.

    Either way, this list is a good starting point in searching for the best credit card processor for eCommerce. Be sure to consider all the features you need as well as compatibility with shopping carts and other services you may use in your business. Keep an eye on what features you absolutely must have right now as well as what you would like to have further down the road as your business starts to grow.

    What are your favorite online payment solutions? What have your experiences with the processors on this list been like? Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. Square would be the best option. Payline has one as part of its mobile plan too. Your site and blog are very impressive and good to see.

    And also thanks for sharing this informative blog. We currently use Open Edge , a division of globalpayments, what are thoughts concerning this company, charges, customer service , features and capability to work with other software features? You can check out our in-depth review of PayJunction here. Sellers who use Magento mostly add payment processors via pre-built integrations. These integrations let you connect your Magento account with a payment solution without doing any development.

    You can find these integrations for purchase in the Magento Marketplace. If your favorite payment processor does not have a pre-built integration or gateway available in the Magento Marketplace, you can hire a developer to build a connection on your behalf. Keep in mind that this can be very expensive. That said, here is a great merchant account comparison chart of vendors we have reviewed.

    Best of luck to you! I have not seen one for them on your website. Thank you for writing! Why no mention of Ayden?

    What Is a Merchant Account and Do You Need One to Accept Credit Card Payments?

    Transparent and predictable pricing. Online Ron, Sellers who use Magento merchant add payment processors via card integrations. Get Started Credit started with no commitment today. Home » Merchant Services Reviews. Businesses wanting a merchant account through a bank. Do you best any recommendations where to start?

    Best Credit Card Processing Services

    Best online credit card merchant services

    You get a virtual terminal at no extra charge as well as detailed online reporting. CDGcommerce uses different pricing schemes, depending on your sales volume. Get Started with CDGcommerce. Jump back to comparison chart 5. Square Square. That said, Square does offer respectable eCommerce support and infrastructure that includes a free online store and shopping cart support.

    These can be ideal for businesses that are primarily brick-and-mortar but also do a portion of their business online. Square uses a flat-rate pricing model for all of its transactions.

    For eCommerce transactions and invoices, Square charges 2. Square is a great all-in-one solution for businesses that do a relatively low volume of transactions. Get Started with Square. Jump back to comparison chart 6. Helcim Helcim. Helcim is our pick for the best all-in-one platform provider because of its Helcim Commerce integrated payments platform. Helcim Commerce supports recurring billing and includes a customer information database. Tokenization, inventory management, and other features critical to running an online business are also built-in.

    Helcim offers payment processing services to US and Canadian merchants. It gives you month-to-month billing with no long-term commitment and no additional cost to close your account.

    Helcim uses interchange-plus pricing exclusively. Get Started with Helcim. Jump back to comparison chart 7. Durango Merchant Services is our top pick for high-risk businesses needing online merchant credit card processing. High-risk businesses typically have a harder time finding providers that will approve their applications for merchant accounts.

    Because Durango works with so many back-end processors to get you set up with an account, all of these factors will be highly variable and subject to negotiation. Unfortunately, you should fully expect to pay higher processing rates than a comparable low-risk business would have to pay.

    You should also anticipate being placed on a tiered pricing plan, although interchange-plus is sometimes available. However, in an industry riddled with not entirely ethical service providers, Durango is one of the few high-risk providers that enjoys an excellent reputation for fair prices and contract terms. The company goes out of its way to get you the best and most affordable deal possible.

    Durango will assign a dedicated account manager who will be your primary point of contact if you encounter any problems. Get Started with Durango Merchant Services.

    Jump back to comparison chart 8. PayPal PayPal. The hard way involves working with APIs that require computer programming skills. The easy way is to add some readily-prepared code to your website yourself. PayPal excels at the latter, offering simple integration of a whole host of payment processing services. There are no monthly minimums and no other fees in addition to the transaction cost itself 2.

    If you wish to have more services, you can. You can integrate PayPal as a supplemental option with PayPal Checkout or make it your primary processor. PayPal offers an entire suite of services directed at online merchants. Along with being able to accept online payments and send invoices, PayPal uses its own gateway, which you can use on a per-transaction basis or by paying a monthly fee. Nonprofits are eligible for a discount and can easily set up a donation button on their site.

    PayPal is by default PCI compliant — it does so by redirecting your customers to its site to complete their transactions. Jump back to comparison chart 9.

    Stripe Payments Stripe Payments. Stripe Payments, like PayPal, has reached the point where its name is synonymous with internet commerce. Stripe is open to merchants worldwide with numerous currency options and support for many alternative payment methods and local payment options across North America, the EU, and Asia. Stripe gives you a gateway, a hosted payment page, PCI compliance, and the ability to migrate your customer data if you ever decide to leave.

    Stripe charges just 2. Stripe also offers ACH payments at 0. It can take longer to set up an account with a direct processor because they investigate your financial stability before approving you.

    Third-party processors — also known as payment service providers PSPs or aggregators — only perform a cursory financial vetting before approving the account. However, because so little underwriting is done beforehand, the processor analyzes your activities with greater scrutiny afterward, and you are more likely to encounter an account hold or termination, usually with little to no notice. If you plan to sell online, you need a payment gateway. However, the concept of a gateway can become somewhat fuzzy because third-party processors, such as PayPal and Stripe Payments, combine their services with a built-in gateway.

    Merchant account providers may have their own gateways available for an additional fee, or they may choose to set you up with a third-party gateway not to be confused with a third-party payment processor. For a monthly fee, SaaS shopping carts offer web hosting and storage, SSL certificates, and other tools to build and maintain a website.

    Self-hosted solutions are typically free to download because they are open-source, and they offer a lot of features and customizability — if you have the technical know-how to pull it off. The big change here is that Visa and Mastercard both postponed updates to their interchange fees in Usually, both companies update their rates twice a year. Changes are expected in Visa will probably update rates in April Rumor has it both companies had planned to raise their interchange fees on eCommerce transactions but held off due to the pandemic-fueled growth in card-not-present transactions.

    Nevertheless, online credit card fraud is a growing problem that will likely raise rates in the near future. To combat this, Visa and Mastercard are recommending that merchants use tokenization. If you have the capacity, now is a good time to get ahead of the curve and implement tokenization, as it may affect your rates down the road.

    Choosing a good online merchant services provider involves more than just finding one that offers you lower processing rates and account fees than the competition. Here are some other considerations you should take into account when selecting a provider:. One of the safest ways to pay online is probably through a method that uses tokenization — which means Apple Pay, Google Pay, Samsung Pay, or similar. That way, the actual card number is never transmitted online. Even if the number is somehow stolen, the card associations can easily deactivate the token and send the consumer a new card.

    Most eCommerce-enabled online payment service providers offer either a combined gateway and processing service or let you choose a compatible gateway. That depends on your sales volume, the nature of your business, and the features you require. The best eCommerce credit card processing provider for one company will not be the best for another. They all fill slightly different niches.

    That depends on your sales volume and whether or not your business is high-risk. Low-volume businesses should consider Square or PayPal. High-volume businesses should consider wholesale pricing, like with Fattmerchant or CDGcommerce. Some providers, such as Stripe Payments and PayPal, include recurring billing support as a standard feature of their service. Other online payment providers offer recurring billing support as an optional feature, and they often charge a little extra for it.

    Security features such as support for tokenization and encryption are pretty much the industry standard today, but some providers offer more robust security options than others. Data breach insurance is a worthwhile investment for online businesses, as the cost of a breach could easily put you out of business without it. You might think that this would be a pretty easy thing to accomplish, but some providers make it exceedingly difficult and expensive — probably to discourage you from dropping their service.

    If you want to start an eCommerce business, there is no shortage of excellent online payment processors to help you take card payments. You might be just getting started and need a flexible, pay-as-you-go provider with no minimums. Or you could already have a high volume of transactions and just want a better processing rate or a more reliable processor.

    Either way, this list is a good starting point in searching for the best credit card processor for eCommerce. Be sure to consider all the features you need as well as compatibility with shopping carts and other services you may use in your business. Keep an eye on what features you absolutely must have right now as well as what you would like to have further down the road as your business starts to grow.

    What are your favorite online payment solutions? What have your experiences with the processors on this list been like? Responses are not provided or commissioned by the vendor or bank advertiser.

    Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. Square would be the best option. Payline has one as part of its mobile plan too. Your site and blog are very impressive and good to see. And also thanks for sharing this informative blog.

    We currently use Open Edge , a division of globalpayments, what are thoughts concerning this company, charges, customer service , features and capability to work with other software features? You can check out our in-depth review of PayJunction here.

    Sellers who use Magento mostly add payment processors via pre-built integrations. These integrations let you connect your Magento account with a payment solution without doing any development.

    You can find these integrations for purchase in the Magento Marketplace. If your favorite payment processor does not have a pre-built integration or gateway available in the Magento Marketplace, you can hire a developer to build a connection on your behalf. Keep in mind that this can be very expensive. That said, here is a great merchant account comparison chart of vendors we have reviewed.

    Best of luck to you! I have not seen one for them on your website. Thank you for writing! Why no mention of Ayden? The one replacing paypal on ebay. Seems if good enough for paypal they would be among the top ten. We actually DO have a review of Adyen!

    They are worth looking into, for sure. Thanks for the suggestion! This a good guide for starters. Doing it right from the start will save you fees. Definitely worth reading.

    Would their ecommerce MID rates be competitive? You can get comparison quotes at CardFellow. I hope this helps and if you have further questions please let us know. Your email address will not be published.

    Your Review. Comment moderation is enabled. Your comment may take some time to appear. Please read the " User Review and Comment Policy " before posting. Get Started With Featured Pick! Get Started. Try QuickBooks Today. Fattmerchant is one of our top picks for Credit Card Processing! We love Fattmerchant as a credit card processor for its predictable pricing, excellent service, and integrated billing features. Earn 1. BlueVine's small business checking has a 1.

    PaymentCloud is one of our top picks for credit card processing! Donorbox is one of our top picks for Donation Systems! Donorbox is a versatile, feature-rich, and easy-to-use donation management system that can help you attract more recurring donors.

    Get started today for free. BigCommerce is one of our top picks for eCommerce Platforms! Bigcommerce offers exceptional tools for all eCommerce businesses from startups looking to build a site to enterprise-level systems.

    Helcim is one of our top picks for payment processing! Helcim has exceptional service and an advanced platform that we highly recommend for businesses in Canada and the US. Get three months free when you sign up with Helcim through our links! OnDeck is one of our top picks for Business Loans! OnDeck is our featured vendor for business loans and lines of credit. Lendio is a free-to-use marketplace that allows you to compare lenders side-by-side. Our reviewers like ADP Payroll for its advanced employee management, strong payroll features, and great customer support.

    We love Revel POS for its advanced features and exceptional versatiliy in both the retail and restaurant industries. Get a demo today to find out everything Revel has to offer! Merchant services come in all different shapes and sizes. They can be independent service providers ISOs , banks, or fully integrated systems for all of your hardware, software, and processing needs. Without merchant services, businesses would not be able to accept credit cards and debit cards.

    Whether you operate in-person, online, or accept payments over the phone, you must find a merchant service provider to handle your processing needs.

    The reviews below contain the features, benefits, pricing, and potential drawbacks for each provider on our list. They make it easy for you to accept credit and debit cards in-person, online, and more. Other benefits of Helcim include deposits within two business days and the ability to securely store credit card information.

    Helcim offers volume discounts, no PCI fees, and no long-term contracts,. For a limited time, new merchant accounts can get the first six months for free. Payment Depot is one of the most reputable and reliable merchant service providers on the market today.

    By paying a monthly membership, Payment Depot offers low processing rates. This is especially true for high-volume merchants. Payment Depot offers transparent pricing with no hidden fees. But it only makes sense for high-volume merchants. Get started now with Payment Depot. Square is one of the most popular merchant service providers on the market today. Millions of businesses trust Square for credit card processing and POS solutions. In addition to point-of-sale, Square has services for online sales, delivery services, contactless payments, remote payments, and even marketing campaigns.

    All of your transactions will be processed at the same rate. The only factor impacting the cost is how the card is accepted in-person vs. In-person sales cost 2. Ecommerce transactions and Square invoice sales cost 2. Virtual terminal transactions, card on file transactions, and other card-not-present orders cost 3. They have a wide range of payment processing solutions to accept payments online, in-store, via mobile, and MOTO mail order and telephone order.

    With Flagship Merchant Services, your business will be able to accept all major credit card networks and alternative payment types like Apple Pay, Google Pay, and more. Since , Flagship Merchant Services has been providing exceptional support to businesses across a wide range of industries. This merchant service provider has solutions for retailers, restaurants, and ecommerce websites.

    They promise to beat the total processing costs of any other provider on the market. In addition to payment processing, Flagship Merchant Services offers merchant cash advances, digital customer loyalty programs, gift cards, and a business management portal.

    Fiserv provides financial services technology to financial institutions, corporations, consumers, and of course, merchants. The company has a wide range of services to accommodate small businesses to large merchants and global operations.

    Fiserv has solutions for retailers, service-related businesses, ecommerce websites, and foodservice businesses. They have plenty of POS systems for retail merchants based on your unique needs. From full countertop stations to flexible card readers that work anywhere in the store, Fiserv has it all.

    Dharma Merchant Services is one of the few providers on the market with solutions built specifically for B2B merchants. Dharma Merchant Services uses interchange-plus pricing for credit card processing. Fattmerchant works with a wide range of businesses. They have solutions for small businesses, medium-sized businesses, and multi-location businesses.

    This merchant services provider is commonly used by organizations in retail, professional services, healthcare, food and beverage, and field service industries. Fattmerchant offers same-day funding, automatic chargeback notifications, terminal protection, and a wide range of hardware options.

    Some businesses struggle to find a merchant service provider due to their industry. If your application has been denied by other merchant service providers, PaymentCloud will be a top option for you to consider. Whether you process payments online, in-person, or on-the-go, PaymentCloud has solutions to accommodate your needs. There are no application fees and no setup fees. Just fill out a form online, choose your terminal or payment gateway, and get ready to start processing credit cards.

    Other businesses can get better rates elsewhere. For businesses selling exclusively online, Stripe will be the best merchant service provider to consider. The solution is made specifically for ecommerce websites and internet businesses. In addition to payment processing, Stripe has merchant services for fraud prevention, invoicing, and issuing virtual cards. Stripe can help you get financing and manage your business spending as well.

    Your payment infrastructure is virtually limitless with Stripe.

    Additional menu

    MasterCard online uses the credit payment service online, but Discover card payment facilitator to mean the card thing. So how do they best payments, then? You get a virtual terminal at no extra charge as well services detailed online reporting. Get a demo best to find out everything Revel credit to offer! Online also processes payments online, services the go, through recurring invoices, and manually for orders credit over the phone. Payment Card does services take a percentage merchant each transaction. Best assume you're ok with this, but merchant can opt-out if merchant wish.

    Chase also does not disclose hardware pricing but offers a range of card reader and terminal options. Some plans come with a free terminal but typically require a long-term contract. If you purchase the hardware outright or reprogram your existing equipment, month-to-month billing is available.

    Stripe is a payment processor with sophisticated software and APIs ideal for online businesses and apps that want to create a custom checkout solution. Visit Stripe. Stripe has a pay-as-you-go pricing model with flat-rate transaction fees. There are no monthly fees and the transaction fees are the same for every card type. Choosing the right merchant service provider for your business is an important choice, and unfortunately, the payment processing industry is not known for transparency.

    A merchant service company is a financial service provider. They are used by businesses to accept credit or debit card payments through a point-of-sale system, website, or online ordering system.

    There are many different types of merchant accounts and payment processing solutions. The most common options for small businesses are aggregators and independent sales organizations ISOs. Larger businesses like chain stores are more likely to use direct processors. The only direct processor we included in our list is Chase Merchant Services , because it has programs geared toward small businesses and could be a good fit for those already using Chase for business checking, credit, or savings accounts.

    Aggregators, such as Square, serve as a kind of middleman between the business and the bank or card associations. The percentage fees are typically higher than a direct processor, but still, make the most financial sense for small or startup businesses.

    They also typically have software such as POS systems or invoicing tools that are used along with the payment processing service. ISOs like Payment Depot, provide the services of a direct processor but under a different brand name.

    ISOs typically require an application process but offer the most economical pricing for established SMBs. For small businesses, ISOs are a better option than direct processors because they can offer lower rates and more user-friendly software features. Price and ease of use are the two most important factors.

    Always compare rates, and do the math for yourself, even though most providers will offer quotes. Then, consider how the payment processing tools will integrate with your other software systems. Read user reviews to spot any consistent complaints. Choosing the right merchant account provider can save your business lots of money in fees each month. The best payment processors are also easy to use, offer a good value with business solutions, and integrate with popular software.

    Plus, merchant accounts should be transparent and reliable. Its all-in-one simplicity, low flat-rates, and free POS business management tools make it practically unbeatable for most small business needs. Visit Square to create a free account. Visit Square. Meaghan Brophy is Fit Small Business's authority on retail and ecommerce. We need to be able to process on-line payments, in person, and keyed-in for telephone reservations.

    Do you have any recommendations where to start? We have a small business and doing business with Authorized. Since we changed our identity from LLC to Inc. Now we are looking for another merchant company who can help us with our business.

    Please advise which is best merchant company you recommend for us. Thank you. I know that Cayan works with Authorize. You can find out more about Cayan and contact them from our article on how credit card service and fees work.

    You should have no problem finding another service. Hope this helps, good luck! Hello very cool web site!! I will bookmark your blog and take the feeds additionally?

    Feel free to reach out if you do have any questions. You must be logged in to comment. Click a "Log in" button below to connect instantly and comment. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Subscribe to our Newsletters Fit Small Business content and reviews are editorially independent. We may make money when you click on links to our partners.

    Learn More. August 12, Table of Contents. Payment Depot. Chase Merchant Services. Answer a few questions about your business and we'll give you personalized product match Question 1. How would you like to accept payments? Question 1 of 4. Multi-channel Combo of any 3.

    Question 2 of 4. What is your estimated monthly sales volume? Question 3 of 4. Are you concerned with chargebacks? Question 4 of 4. Square Strengths. Payment Depot Strengths. Fattmerchant Strengths. Monthly fee. Dharma Strengths. PayPal Strengths. PaymentCloud Strengths. Helcim Strengths. Monthly Processing Volume. Chase Merchant Services Strengths. Stripe Strengths.

    Sign up to receive more well-researched retail articles and topics in your inbox, personalized for you. This email address is invalid. Email Join The List. User reviews and comments are contributions from independent users not affiliated with FitSmallBusiness.

    As such, they do not endorse or guarantee any posted comments or reviews. Log in to Reply. Laura, Staff Writer. Hi Krista, We have a small business and doing business with Authorized. Hi Laura, I know that Cayan works with Authorize. All the Best- Crystalynn Shelton. Load More Comments Loading Submit Your Comment Cancel reply You must be logged in to comment.

    LOG IN. Visit Square No, thanks. Join Fit Small Business ×. Human Resources. Real Estate Agents. Real Estate Investing. Starting a Business.

    Your Email Address. Best overall with instant sign-up and transparent fees. Wholesale processing fees for established businesses.

    Growing businesses using invoicing or recurring billing. User-friendly mobile app for occasional sales. Read More. Visit Site. Read more below to learn why we chose these options. While the best online credit card processors for any given business will vary by your needs, these companies collectively offer the most value for your money. Another great option for businesses in high-risk industries is PaymentCloud.

    This payment service comes highly recommended by esteemed low-risk services such as Dharma Merchant Services, which refers high-risk applicants to PaymentCloud. Typically, this means tiered-pricing, monthly minimums, and contracts at least initially , but you can expect to be treated fairly by PaymentCloud. For eCommerce specifically, PaymentCloud offers a gateway via Authorize.

    Net or USAePay. You can, however, use any compatible gateway you want. Get Started with PaymentCloud. Read our in-depth review. Jump back to comparison chart 2. Fattmerchant Fattmerchant. At Merchant Maverick, we give a lot of love to interchange-plus pricing for being both transparent and usually cost-effective. Fattmerchant deals exclusively in subscription-based pricing sometimes called wholesale pricing. Interchange-plus pricing separates the interchange fees charged by the credit card companies and those charged by your processor; your processor fees are usually still based on a percentage of your transaction e.

    Subscription pricing still charges you the interchange fee, but your processor fee is just a flat fee. So unlike the earlier example of 0. You pay a monthly fee based on your processing volume. This makes subscription pricing very cost-effective for high-volume businesses and less so for low-volume. Get Started with Fattmerchant. Jump back to comparison chart 3. Read our Review. Best for B2B. This high-volume plan supports the use of Level II and III processing data for B2B transactions, so it can potentially lower your interchange rates and save you even more money.

    This all-in-one service combines the features of a payment gateway and a virtual terminal into a single product. Get Started with Dharma Merchant Services. Jump back to comparison chart 4. With CDGcommerce, you get your choice of free payment gateways, including Authorize. In other words, you should be covered for nearly endless integrations. There are no setup fees, monthly fees, or per-transaction fees for the use of the gateways.

    You get a virtual terminal at no extra charge as well as detailed online reporting. CDGcommerce uses different pricing schemes, depending on your sales volume. Get Started with CDGcommerce.

    Jump back to comparison chart 5. Square Square. That said, Square does offer respectable eCommerce support and infrastructure that includes a free online store and shopping cart support. These can be ideal for businesses that are primarily brick-and-mortar but also do a portion of their business online.

    Square uses a flat-rate pricing model for all of its transactions. For eCommerce transactions and invoices, Square charges 2. Square is a great all-in-one solution for businesses that do a relatively low volume of transactions. Get Started with Square.

    Jump back to comparison chart 6. Helcim Helcim. Helcim is our pick for the best all-in-one platform provider because of its Helcim Commerce integrated payments platform. Helcim Commerce supports recurring billing and includes a customer information database. Tokenization, inventory management, and other features critical to running an online business are also built-in.

    Helcim offers payment processing services to US and Canadian merchants. It gives you month-to-month billing with no long-term commitment and no additional cost to close your account. Helcim uses interchange-plus pricing exclusively. Get Started with Helcim. Jump back to comparison chart 7. Durango Merchant Services is our top pick for high-risk businesses needing online merchant credit card processing. High-risk businesses typically have a harder time finding providers that will approve their applications for merchant accounts.

    Because Durango works with so many back-end processors to get you set up with an account, all of these factors will be highly variable and subject to negotiation. Unfortunately, you should fully expect to pay higher processing rates than a comparable low-risk business would have to pay. You should also anticipate being placed on a tiered pricing plan, although interchange-plus is sometimes available. However, in an industry riddled with not entirely ethical service providers, Durango is one of the few high-risk providers that enjoys an excellent reputation for fair prices and contract terms.

    The company goes out of its way to get you the best and most affordable deal possible. Durango will assign a dedicated account manager who will be your primary point of contact if you encounter any problems.

    Get Started with Durango Merchant Services. Jump back to comparison chart 8. PayPal PayPal. The hard way involves working with APIs that require computer programming skills. The easy way is to add some readily-prepared code to your website yourself.

    PayPal excels at the latter, offering simple integration of a whole host of payment processing services. There are no monthly minimums and no other fees in addition to the transaction cost itself 2. If you wish to have more services, you can. You can integrate PayPal as a supplemental option with PayPal Checkout or make it your primary processor. PayPal offers an entire suite of services directed at online merchants. Along with being able to accept online payments and send invoices, PayPal uses its own gateway, which you can use on a per-transaction basis or by paying a monthly fee.

    Nonprofits are eligible for a discount and can easily set up a donation button on their site. PayPal is by default PCI compliant — it does so by redirecting your customers to its site to complete their transactions. Jump back to comparison chart 9. Stripe Payments Stripe Payments.

    Stripe Payments, like PayPal, has reached the point where its name is synonymous with internet commerce. Stripe is open to merchants worldwide with numerous currency options and support for many alternative payment methods and local payment options across North America, the EU, and Asia. Stripe gives you a gateway, a hosted payment page, PCI compliance, and the ability to migrate your customer data if you ever decide to leave. Stripe charges just 2. Stripe also offers ACH payments at 0.

    It can take longer to set up an account with a direct processor because they investigate your financial stability before approving you. Third-party processors — also known as payment service providers PSPs or aggregators — only perform a cursory financial vetting before approving the account.

    However, because so little underwriting is done beforehand, the processor analyzes your activities with greater scrutiny afterward, and you are more likely to encounter an account hold or termination, usually with little to no notice. If you plan to sell online, you need a payment gateway. However, the concept of a gateway can become somewhat fuzzy because third-party processors, such as PayPal and Stripe Payments, combine their services with a built-in gateway.

    Merchant account providers may have their own gateways available for an additional fee, or they may choose to set you up with a third-party gateway not to be confused with a third-party payment processor. For a monthly fee, SaaS shopping carts offer web hosting and storage, SSL certificates, and other tools to build and maintain a website.

    Self-hosted solutions are typically free to download because they are open-source, and they offer a lot of features and customizability — if you have the technical know-how to pull it off. The big change here is that Visa and Mastercard both postponed updates to their interchange fees in Usually, both companies update their rates twice a year. Changes are expected in Visa will probably update rates in April Rumor has it both companies had planned to raise their interchange fees on eCommerce transactions but held off due to the pandemic-fueled growth in card-not-present transactions.

    Nevertheless, online credit card fraud is a growing problem that will likely raise rates in the near future. To combat this, Visa and Mastercard are recommending that merchants use tokenization. If you have the capacity, now is a good time to get ahead of the curve and implement tokenization, as it may affect your rates down the road. Choosing a good online merchant services provider involves more than just finding one that offers you lower processing rates and account fees than the competition.

    Here are some other considerations you should take into account when selecting a provider:. One of the safest ways to pay online is probably through a method that uses tokenization — which means Apple Pay, Google Pay, Samsung Pay, or similar.

    That way, the actual card number is never transmitted online. Even if the number is somehow stolen, the card associations can easily deactivate the token and send the consumer a new card. Most eCommerce-enabled online payment service providers offer either a combined gateway and processing service or let you choose a compatible gateway.

    That depends on your sales volume, the nature of your business, and the features you require. The best eCommerce credit card processing provider for one company will not be the best for another. They all fill slightly different niches. That depends on your sales volume and whether or not your business is high-risk. Low-volume businesses should consider Square or PayPal. High-volume businesses should consider wholesale pricing, like with Fattmerchant or CDGcommerce.

    Some providers, such as Stripe Payments and PayPal, include recurring billing support as a standard feature of their service. Other online payment providers offer recurring billing support as an optional feature, and they often charge a little extra for it. Security features such as support for tokenization and encryption are pretty much the industry standard today, but some providers offer more robust security options than others.

    Data breach insurance is a worthwhile investment for online businesses, as the cost of a breach could easily put you out of business without it. You might think that this would be a pretty easy thing to accomplish, but some providers make it exceedingly difficult and expensive — probably to discourage you from dropping their service. If you want to start an eCommerce business, there is no shortage of excellent online payment processors to help you take card payments.

    You might be just getting started and need a flexible, pay-as-you-go provider with no minimums. Or you could already have a high volume of transactions and just want a better processing rate or a more reliable processor. Either way, this list is a good starting point in searching for the best credit card processor for eCommerce. Be sure to consider all the features you need as well as compatibility with shopping carts and other services you may use in your business.

    Keep an eye on what features you absolutely must have right now as well as what you would like to have further down the road as your business starts to grow. What are your favorite online payment solutions? What have your experiences with the processors on this list been like? Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser.

    Square would be the best option. Payline has one as part of its mobile plan too. Your site and blog are very impressive and good to see. And also thanks for sharing this informative blog. We currently use Open Edge , a division of globalpayments, what are thoughts concerning this company, charges, customer service , features and capability to work with other software features?

    You can check out our in-depth review of PayJunction here. Sellers who use Magento mostly add payment processors via pre-built integrations. These integrations let you connect your Magento account with a payment solution without doing any development. You can find these integrations for purchase in the Magento Marketplace.

    If your favorite payment processor does not have a pre-built integration or gateway available in the Magento Marketplace, you can hire a developer to build a connection on your behalf.

    Keep in mind that this can be very expensive. That said, here is a great merchant account comparison chart of vendors we have reviewed.

    Best of luck to you! I have not seen one for them on your website. Thank you for writing! Why no mention of Ayden? The one replacing paypal on ebay. Seems if good enough for paypal they would be among the top ten.

    We actually DO have a review of Adyen! They are worth looking into, for sure. Thanks for the suggestion! This a good guide for starters.

    Leave a Reply

    Your email address will not be published. Required fields are marked *