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1. Fee Structure

Understanding the fee structure of merchant services providers is crucial to avoid hidden costs and manage your budget effectively:

  • Transaction Fees: These fees can vary depending on the type of card used and the method of transaction.
  • Monthly Fees: Some providers offer a flat rate, while others may provide waivers based on transaction volume.
  • Additional Charges: Look out for setup fees, PCI compliance fees, and fees for early termination.

Pro Tip: Always insist on full fee transparency to prevent unexpected expenses.

an invoice with the word 'fees' on it

Avoid surprises, learn everything you can on the fees you’re planned to pay.

2. Contract Terms and Service Flexibility

The terms of service and the flexibility of the contract play a significant role in your decision:

  • Contract Length: Understand whether you are committing to a month-to-month arrangement or a longer-term contract.
  • Early Termination Fees: Be aware of potential fees for terminating the service before the contract ends.
  • Scalability: Ensure the provider can scale services to match your business growth, including advanced features.

Top 3 Merchant Services Companies

1
Clover – Most Recommended
9.9

Get a $450 statement credit

Get a $450 statement credit

Top-tier security and 24/7 support
Fully customizable point-of-sale (POS) systems
Very low fees, from 2.3% + 10¢
2
Merchant One – Top Processor
9.8

Complimentary EMV terminal upon sign-up

Complimentary EMV terminal upon sign-up

Low rates, from 0.29% per transaction
High approval rate for new accounts
Customer support tailored to small business needs
3
Stax
9.6

Zero-markup payment processing

Zero-markup payment processing

First month free for US-based businesses
Predictable subscription fees designed for long-term savings
Low transaction fee ranging from 8¢ to 15¢

3. System Compatibility and Integration

A seamless integration with your existing setup is essential for smooth operations:

  • POS Systems Compatibility: The services should be compatible with your current or future POS systems.
  • E-commerce Integration: Look for a payment gateway that integrates smoothly with your online sales platforms.
  • Accounting Software Compatibility: Ensuring compatibility with your accounting software can simplify financial management and reduce errors.

4. Security and Compliance

In the digital age, securing customer transactions is paramount:

  • PCI DSS Compliance: Your provider should adhere to the Payment Card Industry Data Security Standard.
  • Fraud Prevention Tools: Features such as address verification and CVV checks are crucial for protecting against fraud.
  • Data Encryption: Ensure that all transaction data is encrypted to safeguard customer information.
screens showing integrations of ecommerce and pos and crm and similar

Smooth integration is key.

5. Customer Support and Service

The quality of customer support can greatly affect your daily operations:

  • Support Availability: Opt for providers offering 24/7 support, especially if your business operates outside regular hours.
  • Support Channel

Access to various support channels like phone, email, and live chat is advantageous.

  • Resolution Efficiency: Quick issue resolution is essential to minimize downtime and potential revenue loss.

 

Final Thoughts

Choosing a merchant services provider is more than a contractual decision; it’s a strategic choice that affects every aspect of your transaction processes. By carefully evaluating these key areas, you can select a provider that not only fulfills your current operational needs but also supports your business’s future growth.