The ability to accept payments through credit and debit cards, as well as mobile applications, comes with numerous benefits to your business. You’ll experience better security, higher sales, and faster customer transactions, all contributing to a better experience for you and your customers[1].
At Payment Nerds, we’re dedicated to helping our customers obtain the best possible payment-processing solutions. In this article, we share our picks for the best merchant services in 2024. Discover which merchant service provider best fits your company based on their unique qualities
What Are Merchant Services?
Before going deeper, let’s explore merchant services and their benefits. In general, these services involve processing electronic payments which allow businesses to safely accept credit cards, debit cards, and other forms of payment[2]. Additionally, they also provide companies with other services and systems related to payment processing, such as:
- Fraud Protection Services: Many merchant service providers offer fraud monitoring and protection services, ensuring transactions that don’t match cardholder or customer information aren’t processed, reducing harmful effects of fraud, and minimizing chargeback occurrences.
- Security & Regulatory Compliance: Merchant services also ensure companies follow and maintain the latest practices in payment security and regulation compliance with standards like the PCI-DSS.
- Payment Gateway Systems: These allow for secure online payment processing for transactions between eCommerce businesses and their web-based customers.
- Point-of-Sale Systems: POS systems combine hardware and software systems that allow for quick in-store transactions and online sales. These systems include card readers and cash registers, but they also include software systems that sync to sales analytics and accounting platforms[3].
Some merchant service providers also give companies access to a merchant account. This is a separate bank account where sales funds are sent once the provider has processed all of a business’s electronic payments.
Once the funds reach the merchant account safely, your service provider will send the total (minus the processing fees) to your official business bank account. Merchant accounts ensure safe and organized transactions among businesses, cardholders, payment processors, and other financial institutions. For more information, see our article on Merchant Processing services.
Questions To Ask When Looking For The Right Merchant Service Provider
Now that we have a solid idea of what they do, the next step to finding the best merchant services for your business is learning what aspects to look for. Here are some crucial questions we recommend you ask as you search for your ideal merchant service provider:
Do They Specialize In Enterprise or Small Business Payment Processing?
Your business size matters when choosing a merchant provider. Some services are tailored for small businesses and include features like user-friendly software and simplified reporting.
Larger enterprises, however, may involve high transaction sizes and volumes. Merchant services must provide features for more complex systems, such as extensive reporting, customized payment solutions, and enhanced security protocols.
Payment Nerds, for instance, caters its merchant services for small businesses and larger companies by providing specialized plans for every business size. Additionally, you should always check if a provider can scale with you to ensure seamless growth for your company.
Do They Offer Software Integrations That Fit Your Existing Systems?
Payment processors need to work smoothly with your existing point-of-sale (POS) or eCommerce system as you search through different merchant services, note which providers are known for integrating seamlessly with elements of your software stack.
For example, Shopify offers robust integration for eCommerce, while Toast is a favorite in the food industry for its restaurant-specific integrations. By checking their integration options beforehand, you’ll be less likely to experience hiccups or compatibility issues within your business operations.
Are Their Transaction Fees & Other Costs Feasible for Your Business?
Transaction, processing, and other additional fees can significantly affect your company’s bottom line. When looking through different merchant services and credit card processing providers, pay attention to their fees, monthly charges, setup costs, and any other costs to your business.
Some providers offer flat rates, while others vary by transaction type or sales volume. Square, for example, has straightforward pricing that appeals to small businesses with variable cash flows. Conversely, Payment Nerds provides customizable pricing tailored to your transaction volume, making it flexible for small and medium businesses alike.
Is Their Track Record in Security & Compliance a Green or Red Flag?
Data breaches are a massive risk in the digital payment landscape. They present malicious hackers with the opportunity to steal the personal information of millions of customers.
In that case, look for providers with a solid track record in regulatory compliance and security standards, especially with PCI-DSS. Their services and payment platforms should also include fraud prevention measures.
A good example is Payment Nerds, as our payment processing APIs contain cutting-edge security features, including encryption, tokenization, and fraud monitoring. A good merchant service provider should prioritize security, especially as more businesses face a future full of complex cyber threats.
Best Merchant Services in 2024
Based on their usability, fees, and specialized features, here’s our list of the best merchant service providers for 2024. Whether you’re a small startup, a cafe, or an eCommerce giant, one of these options could be your best fit:
Best Choice for Overall Merchant Services: Payment Nerds
Payment Nerds is among the best merchant services for its versatile offerings, tailored to a range of business needs. With a reputation for transparent pricing and flexible contracts, Payment Nerds offers solutions for every type of business, from eCommerce to brick-and-mortar shops.
Our solutions are meant to cater to small businesses and large enterprises. They provide integrations with a wide variety of software platforms, allowing you to enhance your financial management and obtain valuable business insights. We also strongly emphasize advanced security and fraud prevention, ensuring you and your customers are safe from fraudulent transactions and unwanted data breaches.
Payment Nerds also excels in customer support, with a 24/7 service team ready to provide solutions to any customer issues[4]. If you’re looking for a reliable merchant services provider, no matter what your business is, Payment Nerds is a strong contender.
Best Choice for Brick-&-Mortar Stores: Square
Square has long been a favorite among brick-and-mortar businesses for its simplicity and accessibility. Its setup is plug-and-play, ready to go almost as soon as you connect your hardware. This merchant service provider also offers minimal hardware costs and user-friendly software that even the most tech-challenged can master quickly.
Square’s pricing model is clear-cut, with no monthly fees and a flat transaction rate, making it ideal for businesses like coffee shops, boutiques, and small retail stores. Additionally, Square’s POS system includes valuable inventory management tools and reporting features that help business owners track sales and customer data[5]. The one downside is that their customer service is known to be unreliable.
Best Choice for Restaurants & Food Service: Toast
Toast has carved out a niche in the restaurant industry with features specifically designed for food service operations. From table management and menu customization to split billing and tips, Toast streamlines nearly every aspect of the dining experience for staff and customers.
While Toast requires a monthly subscription, its comprehensive functionality — from online ordering to delivery management — makes it worth the investment for restaurants looking to stay competitive in a tech-savvy market.
Toast also offers real-time reporting and employee management tools, which can be incredibly powerful for high-volume establishments looking to optimize[6]. A significant downside to this is that its payment processing rates for online orders are much more expensive than those of its competitors.
Best Choice for Online & eCommerce Business: Shopify
Shopify provides some of the best merchant services for eCommerce businesses. Known primarily as an eCommerce platform, Shopify also provides robust payment processing through Shopify Payments, allowing businesses to manage everything for their online business, all on the same platform.
Shopify’s payment system is integrated with its website builder, making it easy for businesses to handle product listings and transactions. With multiple pricing tiers, Shopify is affordable for new businesses but scalable enough for large eCommerce shops as well.
Its fraud prevention features and PCI compliance also make it an excellent choice for online retailers looking to build customer trust. Unfortunately, Shopify solely focuses on eCommerce, limiting its benefits to businesses within that sector[7].
Summary
When choosing a merchant services provider, focus on what best fits your business needs, from transaction fees to integration capabilities. Ensuring you pick a merchant services provider that aligns with your goals will help facilitate smoother transactions, better customer experiences, and, ultimately, more significant business growth.
Payment Nerds offers a comprehensive solution with flexible options and transparent pricing, which is ideal for businesses of all sizes. Interested to learn how we can serve you? Contact us today toget even more information about our payment processing and merchant services.
Sources
- Investopedia. “Merchant Services: Their Role in Business, How They Work, and Benefits.” Accessed on November 14, 2024.
- Wikipedia. “Merchant services.” Accessed on November 14, 2024
- Nerdwallet. “What Is a Point-of-Sale (POS) System and How Does It Work?” Accessed on November 14, 2024
- Payment Nerds. Accessed on November 14, 2024
- Square. “Merchant services.” Accessed on November 14, 2024
- Toast. “Payment Processing.” Accessed on November 14, 2024
- Nerdwallet. “Shopify POS Review 2024: Features and Pricing.” Accessed on November 14, 2024