12 Best Merchant Services Providers of 2025

Consumers want to have freedom and control when choosing how to pay for their products.

Globally, consumers are turning to digital payments, with the volume of non-cash transactions expected to hit $1.65 trillion this year, according to Capgemini Research Institute’s 2025 World Payments Report.

The report also found that digital wallets like Alipay and Apple Pay accounted for 51% of global consumer spending in 2023, an increase from previous years, as digital payments continue to dominate consumer preferences.

For your retail business, merchant services give your customers freedom, flexibility, and control over payments. Ahead, you’ll learn how merchant services work, how much they cost, and the steps to choosing the best provider for you.

What are merchant services?

Merchant services are tools companies use to accept credit cards, debit cards, and other electronic payments. It’s an essential setup for any business that wants to offer payment methods beyond cash, ecommerce businesses and brick-and-mortar stores included.

With merchant services, you can process payments from credit and debit cards, contactless payments, ACH payments, mobile payments, store credit, and gift cards. 

A merchant service provider is an intermediary between your business, your customer, and a financial institution—your bank. It facilitates a seamless transaction through a secure and rather complex process in the back end.

1. Your customer presents their payment method, like entering payment details online or swiping a credit or debit card on your point-of-sale (POS) terminal.
2. Your merchant services provider sends payment information to your bank.
3. Your bank sends the transaction to your merchant service provider and the card company, like Visa, Mastercard, or American Express.
4. The card company sends the transaction to the issuing bank (customer’s bank) and requests approval.
5. The customer’s bank either approves the transaction and sends an approval code to the card company or declines the transaction.
6. The card company sends the approval code to your bank.
7. Your bank sends the approval code to your payment terminal.
8. Your payment terminal confirms the transaction and prints a receipt.
9. The customer’s card or bank account gets charged the amount on the receipt.

All of this happens seamlessly and in only a few moments. Most merchant services charge 2% to 3% per transaction, plus monthly fees ranging from $20 to $50.

Merchant services vs. merchant account 

A merchant account is a business bank account that accepts digital payments. When a customer makes a purchase using a credit card or electronic payment, the merchant account communicates with the card issuer and receives the funds from the customer’s account. Getting a merchant account with an acquiring bank is easy if you have a business license.

12 best merchant services providers in 2024

If you’re looking for a merchant services provider, here are the leaders in this space for you to consider. The best option will depend on your business type, size, and needs—there’s something on this list for everyone.

Our methodology 

While every business has unique needs based on factors like transaction volume, international presence, and industry requirements, one factor stands above all: the ability to unify commerce operations on a single platform.

We believe Shopify offers the best merchant services solution because it's the only platform that provides truly unified commerce without the complexity of integrating multiple systems. Rather than stitching together separate solutions for online and in-person selling, Shopify delivers a native platform where all your business data lives in one place.

However, it's important to compare different providers to find the right fit for your specific needs. This analysis examines the top merchant services providers, evaluating them on crucial factors like: native integration capabilities, global payment options, operational efficiency, total cost of ownership, and scalability potential.

Shopify is the only unified commerce solution that lets you run your entire business from a single source of truth. Unlike other solutions that require complex integrations between separate systems, Shopify provides one platform for all your selling channels—whether that's online, in-store, through pop-ups, or across social media.

With Shopify Payments built directly into the platform, you get comprehensive payment processing capabilities that work seamlessly across all channels. This includes secure credit card processing, automated fraud prevention, and support for local payment methods in specific markets. Every transaction is protected through automatic fraud analysis, ensuring your business stays secure as you grow.

And because Shopify is a full point-of-sale system, you also get an integrated back office with inventory management, customer profiles, marketing functions, detailed reports, and omnichannel checkout options. No long-term contracts means you get full flexibility and freedom.

Features:

• Seamless integration with Shopify stores
• Multiple payment options, including credit cards and Shop Pay
• Real-time reporting
• Chargeback protection through Shopify Protect
• BNPL payment options via Shop Pay Installments

Cost: Monthly store plans start at $29 per month; there are no transaction fees for stores using Shopify Payments, however, there are credit card processing fees that vary depending on the plan you choose. Using third-party payment providers carries additional fees of 2%, 1%, or 0.5% for Basic Shopify, Shopify, and Advanced Shopify plans, respectively.

2. Helcim

Helcim is a merchant services company that lets you accept payments in the store, on the go, and online.

Helcim offers recurring payments, invoicing, international payments, a customer portal, and customer relationship management. Its card reader and virtual terminal can be used to take payments on a computer, tablet, or smartphone.

Helcim provides volume-based discounts, so as your transaction amount increases, lower processing fees become more available to you. You can reach Helcim customer support via phone or email. 

Features:

• Interchange-plus pricing
• No long-term contracts

Cost:

• In-person: 0.4% + 8¢
• Online: 0.5% + 25¢
• Plus interchange 

3. Square

With Square, you can accept payments in person, online, remotely (like ACH transfer), and over the phone. Square’s hardware includes a reader for chip cards and contactless cards, a terminal, a magnetic stripe reader, an iPad point-of-sale device, and a cash register.

Features:

• Offers hardware, software, and payment processing
• Customer support through phone or email

Cost: Between 2.6% + 10¢ per in-person transaction, 2.9% + 30¢ for cards, or 1% with a minimum $1 per transaction for ACH bank transfers (invoices only), and 3.5% + 15¢ online, manually entered, or invoice payments. Monthly plans with advanced features from $29 per month.

4. Stripe

Ecommerce stores can use Stripe to accept online payments in more than 135 currencies, use pre-built payment pages, manage online subscriptions, and issue invoices.

Stripe features an application programming interface (API) that allows it to integrate with payment methods worldwide, like Alipay in China or iDEAL in the Netherlands. It is also known for its fraud detection.

Features:

• International currency payment processing
• Online and in-person payments
• Compatible with 100+ payment methods
• One-click checkout

Cost: 2.9% + 30¢ per successful card charge; 0.8% per ACH direct debit.

5. Stax

Stax (formerly Fattmerchant) is an all-in-one payment processing platform that enables businesses to take payments in person, over the phone, online, and on mobile and invoice customers and clients.

The pricing Stax offers caters to growing and large businesses, due to a monthly fee that starts at $99. However, there’s a 0% markup on direct-cost interchange, which makes monthly costs more predictable.

Features:

• Invoicing
• Payment reporting
• Multiple payment types
• Customer support via phone and email

Pros:

• Predictable pricing—single monthly fee
• Customizable

Cons:

• Customer reviews report questionable business practices

Cost: Plans start at $99 per month.

6. Clover

Clover is a full-service POS system and merchant service provider. It has software and hardware with features for online and in-person payments, as well as advanced options for things like inventory management and customer loyalty programs. Clover charges a monthly subscription fee on top of transaction fees. 

Features:

• Online and in-person payments
• Full POS system
• Additional offerings like Clover Capital

Cost: 2.3% + 10¢ per transaction. Monthly subscription fees also apply but are not publicly advertised. 

7. Chase 

Chase is a major US bank that has a suite of tools for retail businesses, including Chase Payment Solutions merchant services. Chase has everything you need to accept credit cards online or in-person via its POS. You can use its payment terminals, mobile apps, and POS integrations, and accept payments by phone or payment link.

Features:

• Retail POS available
• Virtual terminal and payment gateway

Cost: Monthly subscriptions are required, starting at $9.95 per month. Transaction fees are 2.6% + 10¢ for tap, dip, or swipe; 3.5% + 10¢ for manually keyed transactions or payment links; and 2.9% + 25¢ for ecommerce payments.

8. Bank of America

Bank of America is another major US bank that offers merchant service solutions for retailers to process both in-person and online payments. Beyond payments, Bank of America has a POS system with accounting, employee management, inventory tracking, and other business management features. 

Features:

• Accept credit and debit card, contactless, swipe, and keyed payments
• POS and mPOS for in-person transactions

Cost: Transaction fees are 2.65% + 10¢ for swipe, dip, and tap; 2.99% + 30¢ for ecommerce payments, and 3.50% + 15¢ for keyed transactions. A monthly subscription fee may also apply. 

 9. PayPal

PayPal is an online payment processor that has since morphed into a full payment and merchant service platform for businesses of all types and sizes. Retailers can use it to accept online payments, send invoices, offer express checkout, and even process in-person sales. 

Features:

• Robust tools for online payments
• International payment options
• Embeddable payment button

Cost: Transaction fees vary and can be difficult to forecast. Generally, you’ll pay 4.9% + a fixed fee. However, this can be as low as 1.9% for PayPal card payments or as high as 6.5% for micropayments, for example. There’s no monthly fee. 

10. US Bank Merchant Services

US Bank offers a payment solution for small businesses with in-person and online payment processing capabilities. The service is powered by Elavon (a US Bank subsidiary) and integrates directly with US Bank business checking accounts.

Features:

• Everyday Funding with 7-day-a-week availability including weekends and holidays
• Integrated online store capabilities and POS lending options through Avvance

Costs: 

• Swipe/tap/insert transactions: 2.6% + 10¢ per transaction
• Manual transactions: 3.5% + 15¢ per transaction
• Online payments: 2.9% + 30¢ per transaction

11. National Processing 

National Processing is a merchant services provider offering payment processing solutions with 24/7 US-based support. 

It focuses on providing payment solutions for growing businesses across various industries, from retail to high-risk merchants. Standard funding times with National Processing are typically two to three business days after batching. 

Features:

• Point-of-sale (POS) systems with premium equipment and multiple payment options
• Flexible plan options ranging from basic to premium
• Direct integrations with major ecommerce platforms

Cost:

• Basic in-person: 2.5% + 10¢ per transaction 
• Basic ecommerce: 2.9% + 30¢ per transaction 

12. Dharma Merchant Services

Dharma Merchant Services is a credit card processing service provider that caters to businesses processing more than $10,000 in monthly transactions. It offers both in-person and online payment processing solutions with integration capabilities for most point-of-sale systems.

The company also offers next-day funding for most merchants, provided that transactions are batched out by 5 p.m. Eastern Time.

Features:

• Integration with multiple POS systems (Clover, Aloha, Lavu, Shopify)
• Supports both in-person and online transactions
• Accepts all major credit cards and digital wallets

Costs:

• In-person transactions: Interchange plus 0.15% + 8¢
• Online transactions: Interchange plus 0.2% + 11¢
• Monthly fee: $15

6 things to consider when choosing a merchant service provider 

Now you know what most merchant services providers offer, and the pricing structures they might use. Here are some key points to keep in mind as you research different providers:

Pricing

Two merchant account providers might offer you the same feature set, but price them in a very different way. Look for any potential upfront costs, processing fees, and pricing structures a potential provider offers.

Flat rate is often the best for a small business; tiered and interchange plus models work better for businesses with higher sales volume. Know exactly what you’re paying for and what your bill is made of—avoid hidden fees and unexpected costs.

On top of that, pay attention to any contracts or timeline commitments your provider may require for certain pricing.

Payment types 

Offering the right mix of payment options helps you capture every sale possible. Customers express a range of payment choices, including credit cards and debit cards, digital wallets, and buy now, pay later options. 

You’ll also want to look for a provider that offers regional preferences, like iDEAL in the Netherlands and Boleto in Brazil.

Customer support

Offering seamless transactions is essential to your customer happiness—and your cash flow. If the process gets stuck for any reason, you’re not just losing money, but also your customers’ trust and patience.

If there’s an issue with payments, how will your provider handle it? Look at review sites like G2 or Capterra to read reviews from fellow business owners and learn about their direct experience with the provider.

PCI compliance 

Your provider needs to meet certain security standards to keep your customers’ transactions and payment details safe. The most important ones include PCI compliance (for handling credit and debit card information) and SOC (for privacy, processing integrity, security, availability, and confidentiality).

Find this information on your provider’s security or compliance pages.

Integrations

First, establish what you need from a merchant services provider in terms of how it works with the business tools you already have in place. This includes integrations in particular. List payment providers, shopping cart integrations, accounting software, and other systems you might want to integrate your merchant services solution with. Then find solutions that fit. 

Also, think about the payment methods you want to offer. Consider credit and debit cards, ACH payments, gift cards, mobile payments, checks, electronic checks, and custom payments like split payments.

Reporting and analytics

It’s important to find a merchant services provider that also provides insight into business performance. At a minimum, you’ll want to be able to report on the number of transactions and sales volume for your business per day, week, or month. But you’ll also want to look for more advanced metrics, as well as automated options so you don’t have to build all your data reports manually. 

What do merchant services include?

Your merchant services provider collects your customer’s transaction and payment details, receives authorization from the issuing bank, collects the payment, and sends it to your business bank account.

Here are the types of services and tools many merchant service providers offer:

Payment processing

Payment processors are payment solutions necessary for accepting cash, credit card payments, debit card transactions, mobile wallets, and other forms of electronic payments. This allows you to receive funds into your merchant account.

Payment gateway

Secure payment gateways are the technological platforms that process online payments from your online store. It ensures you can safely process payments with credit and debit cards.

Payment terminal

A physical payment terminal is the brick-and-mortar equivalent of a payment gateway in an online store, like a chip and PIN machine. It’s a piece of hardware where a customer swipes, dips, or taps their card—or taps their NFC- or RFID-enabled mobile device—to make a purchase.

POS system

A point-of-sale system (POS) is a physical, in-store terminal and back-end software that tracks sales, stock levels, and customer information. It also provides frictionless shopping options for businesses with a physical presence, like buy online, pickup in-store (BOPIS), and browse in-store, buy online.

Mobile payment system

Use your smartphone or tablet as a credit card terminal. It works thanks to a mobile card reader that connects to your device, as well as a mobile app that passes payment information onto your payment processing network.

Shopify’s Tap To Pay is a more powerful version of a mobile payment system with a built-in barcode scanner, secure payments with any payment method, and full integration with the store’s back office.

Virtual terminal

A virtual terminal is software that lets you take in and process payments without the card physically present, such as over the phone or on the computer.

Integrations with third-party providers

The best merchant services providers will allow you to customize your payment processes and methods based on your industry and the markets you want to sell on. And sometimes, they do this through third-party integrations.

For example, if you want to offer easy checkout to customers located in the Netherlands who want to pay in euros, you may want a merchant services provider that offers an integration with iDEAL, the Netherlands’ ecommerce payment system.

Loyalty programs and rewards

You can lean on merchant services for loyalty programs and rewards, a feature that lets you automatically and instantly reward repeat buyers. It matches customer purchases with their profile and previous activity.

Merchant service costs

There are three main ways your merchant services provider will charge you for processing payments: flat rate, tiered, and interchange plus.

You should also be aware of interchange fees, which are a percentage of each transaction you pay to credit card companies for processing credit or debit card payments. Card companies and banks assume the risk of fraud or payment issues on every transaction, and these fees cover that.

Flat rate

The most straightforward pricing model is flat rate. It’s usually a small percentage of the transaction plus an additional fixed fee.

An example of flat rate pricing is 2.9% + 30¢ per transaction. This structure is simple and predictable, making it easy to plan your expenses based on the number of sales you do in a given time period.

Tiered

A tiered pricing model has different pricing levels based on the level of risk the payment processor takes with each payment type.

For example, one tier can include in-person credit and debit card payments, which are usually deemed the safest and come with the lowest processing rates. The next tier can include international online payments, which come with more risk and result in higher processing fees.

Interchange plus

The interchange plus model means you’re paying the existing interchange fee plus a markup—an additional percentage or fee per transaction.

Unlike the other two pricing models, interchange plus outlines exactly what you’re paying for and uncovers any hidden fees. This can be useful to businesses looking for a provider with the most competitive pricing, but many companies, especially smaller ones, might find this level of detail overwhelming.

Incidental fees

Don’t forget about incidental fees, or the additional costs your merchant service provider may charge you. Here are some to keep in mind:

• Account setup fees
• Recurring charges for your merchant account, like an annual or monthly fee
• Minimum processing fee if you don’t meet a specified volume of transactions
• Chargeback fees if a customer disputes the charge and wins
• Payment card industry (PCI) compliance fee
• Statement fees
• Batch fees for settling many transactions at once
• Cancellation or termination fees if you cancel the service before your contract is up
• Non-sufficient funds (NSF) fee when your bank account doesn’t have the funds to cover a business transaction

Find the right merchant services for your business

There are two big advantages of having reliable merchant services in place. One is that your customers always have the payment options and methods they need, which means they can buy from you with ease.

The other one is your peace of mind. Cash flow is more stable because the money hits your account quickly—often within one business day. Payment processing works without your interference, so you have the time and energy to focus on your products, marketing, and customers.

Go with a provider that matches your needs and budget—the effort will be worth it.