Nearly every modern business should be able to take electronic payment methods. Whether it’s debit or credit card payments, mobile apps like Apple or Google Pay, or making pre-paid online payments, customers are adopting this new and diverse financial environment.
Your business will have to work with a merchant processing company to perform these types of transactions. These companies specialize in fulfilling the payment processing needs of thousands of businesses. They help facilitate transactions between you and your customers, providing access to numerous payment solutions.
The difficult part is to find a merchant processing company that fits your business and its needs. In this article, the Payment Nerds team will provide advice on how to find the right merchant services provider for your business. We’ll also give you details on the top merchant processing companies in the market, allowing you to easily find the one that’s right for you.
What to Look For in the Right Merchant Processing Company
A good merchant processing company is different for every business — after all, every company is different in its own way. Different processors are a better fit depending on the company’s size, budget, industry, and regulation standards.
While there are only around 11 top merchant service providers in the US, which we will list and detail later, it can still be challenging to decide which one to use.
Below, we go over what aspects of merchant processing companies you need to consider as you begin searching for one that works best for your company:
Pricing Structure & Fees
Most of the merchant payment processing companies available will provide their services in exchange for paying them under a particular pricing model, as well as fees owed for every transaction they process.
They often go with one of three pricing models: flat-rate, interchange-plus, and tiered pricing, which we cover in our article on merchant processing fees.
These regular payments, on top of a percentage of every sales transaction you make, can really add up. So, part of your search should be measuring every merchant processing company’s pricing and range of fees to see which provides a worthwhile option for your business. Consider their prices and compare them to the range of features they provide.
Approved Payment Methods
Although it might seem like a small detail in your selection process, it’s important to know what processing companies support specific major credit and debit cards, like Discover, American Express, and Visa. It’s also important to know if they accept payments through digital wallets and apps like Apple Pay, Venmo, and PayPal.
Selecting a company with limited payment options could make it difficult to serve more customers, but may be more cost-effective than more comprehensive plans from other payment processing companies. On the other hand, investing more to be able to accept a wide variety of payments means more customers, more transactions, and thus higher profits.
Sales & Technology Integrations
An ideal merchant services provider should seamlessly integrate with your business’s existing systems. They should also provide you with point-of-sale hardware that works appropriately with your business or proper documentation and an easily integrated payment gateway for your eCommerce website.
Consider what kinds of third-party integrations their systems are compatible with. This ensures your merchant processing provider can directly connect with systems, like your accounting software for example. This can help to further streamline your company operations.
Industry Compatibility
Businesses must consider their industry when choosing the right payment and credit card processing company. Certain types of businesses are considered “high-risk,” making them more likely to receive higher fees than others. Companies in industries like adult entertainment, gambling, tobacco, and marijuana paraphernalia are often considered high-risk regardless of their performance.
Whether your business is high-risk or not, make sure the processor you work with has a good track record with other businesses in your industry. They will likely give you lower fees and better contract terms in the long run.
Customer Support
As you provide products or services to customers, issues with one transaction or another will occur. When this happens, it will help to work with a payment processing company known for fast and responsive customer service.
Your payment processor should also have representatives available during crucial business hours to provide in-person service, not give you the runaround with a machine or chatbot. Great customer support from your processor means better quality service to your own customers.
Security & Compliance
Your payment processing provider should be as secure and compliant with regulatory standards as possible. Because they process so many recurring payments, payment processors are critical targets for malicious hackers looking to earn huge amounts of money.
Therefore, when considering a short list of potential processors for your business, prioritize the one with the best security and regulatory compliance track record. Make sure they follow PCI-DSS standards and use tokenization to encrypt and protect cardholders’ private information.
The above are just some of the key necessities you should look for among electronic payment and credit card processing companies. Carefully select those that are best for your business’s needs, and you’ll find one that will ensure long-term success and growth.
The Top 11 Companies That Provide Merchant Services
Now that we have an idea of what to look for in a merchant services provider, it’s time to review the many options that are available. Below, we list 11 top merchant processing service providers, along with details on features of their services, their prices and fees, and much more. Review our list and find the one that offers the right payment processing solutions for your business:
Payment Nerds
A new contender in the merchant services market, Payment Nerds provides powerful payment solutions to businesses across a wide range of business sectors, tailoring their services and integrations to fit any company’s needs.
Features:
- Customized merchant accounts and payment solutions that ensure businesses of every kind can enjoy seamless, efficient transactions.
- Fast reliable payment processing that is 100% PCI-compliant, ensuring all customer data is safe and protected against potential fraud.
- 24/7 customer support service teams are ready to assist you with any questions and concerns.
- Streamlined integrations with numerous eCommerce platforms, accounting software, and POS systems, ensuring seamless startup and interactivity once installed.
Pricing, Fees, & Rates:
- Payment Nerds boasts among the most transparent pricing structures among processors, breaking prices down according to card type and business risk level. Their prices are as follows:
- For successful charges on domestic cards –
- Low Risk = 1.59% + $0.03
- Medium Risk = 2.49% + $0.05
- High Risk = 2.99% + $0.07
- Start-Up = 2.7% + $0.03
- For manually entered cards –
- Low Risk = 0.5%
- Medium Risk = 0.5%
- High Risk = 0.5%
- Start-Up = 0.5%
- For international cards –
- Low Risk = 1.5%
- Medium Risk = 1.5%
- High Risk = 1.5%
- Start-Up = 1.5%
- All transactions requiring currency conversion include a 1% processing fee.
- For successful charges on domestic cards –
Advantages:
- Highly-transparent pricing
- Serves a broad range of industries and business types
- No hidden fees or contracts
- Domestic and international payment processing
Disadvantages:
- Additional costs for medium and high-risk businesses
Best For:
Low-risk businesses and companies in high-risk industries that want a transparent and hassle-free processor.
Clover
Clover is a top payment processing solutions provider for small and medium-sized businesses in the restaurant, retail, and professional services industries.
Features:
- Clover provides a wide range of customizable POS devices, with some options allowing for streamlined mobile payments and even cashier-less in-store ordering.
- Optimized plans and integrations specifically for retail, restaurant, and service-based businesses.
- Provides support for enhanced inventory management, employee tracking, customer management, and cash flow.
- It offers real-time sales tracking and business insights through its cloud-based analytics and reporting software tools, available through the Clover Go app.
Pricing, Fees, & Rates:
- Mobile point-of-sale devices start at $199, while in-store POSs range from $279 to $3,499, with a variety of different options that can fit your needs and budget. Clover also provides financing for great feasibility.
- Transaction fees range between 2.3% to 3.5% plus $0.10 per transaction.
- Depending on your industry, monthly fees range from $13 to $165. These come with a custom software plan and POS hardware setup according to your business’s needs.
Advantages:
- Pre-built to work for small and medium-sized businesses, with services that go beyond just payment processing.
Disadvantages:
- Higher upfront costs for hardware compared to some of its competitors.
- Monthly fees for software can also build up quickly, especially for businesses with multiple locations or franchises.
Best For:
Small businesses in retail, professional, and food service industries.
Elavon
Elavon facilitates transactions for businesses and customers around the world. They offer partners flexible integrations, vertical expertise, and in-depth data security.
Features:
- Processing payments for international transactions in over 30 countries.
- Offers industry-specific solutions for various business types, including restaurants, hospitality, government, mass transit, and more.
- Provides technologies that enable fast, easy, and secure in-store, mobile, and online payments.
Pricing, Fees, & Rates:
- Provides quotes for pricing based on business type, sales volume, and company size.
- Often provides competitive rates for interchange-plus pricing.
Advantages:
- Has a strong international presence, which works for businesses that exist in multiple countries.
Disadvantages:
- Pricing is not as transparent as other providers.
- Quality of service varies depending on your region.
Best For:
Small to enterprise businesses with international locations, such as hospitality and travel.
Gravity Payments
Another recognized member of the payment solutions space, Gravity Payments differentiates itself through its persistent customer support and broad range of payment processing services.
Features:
- Tailored payment processing for niche industries such as non-profit organizations, hospitality businesses, entertainment venues, construction firms, and more.
- It supports every major payment method and POS device, including those from other payment solutions providers like Clover.
- Focuses on providing high-touch, 24/7 customer service to their partners.
Pricing, Fees, & Rates:
- Provides custom pricing plans to fit your business needs (though rates and fees may vary).
- Offers a flat rate transaction fee of 2.5% plus $0.10 per transaction.
Advantages:
- 24/7, multi-language customer support
- Solutions scaled and adapted according to your needs
Disadvantages:
- Pricing isn’t transparent
- Website and other integrations are poorly reviewed and limited
- It may not suit start-ups and very small businesses
Best For:
Companies in niche industries, like legal services, outdoor power equipment retailers, bridal shops, and so on.
Helcim
Helcim is another well-rounded payment processing platform that provides businesses with fast and simple electronic payment solutions.
Features:
- A transparent and scalable pricing model with rates that reduce as your business’s transaction volumes increase.
- No monthly fee.
- Built-in features and tools, including subscription management, POS, invoicing, online checkout, and more.
Pricing, Fees, & Rates:
- From $0 to $40,000 in monthly sales volume across all networks, merchants receive between 1% to 2.61% plus $0.08 per transaction, depending on the card type and network.
- Beyond $55,000 in sales volume per month, the percentage and flat rate of transaction fees are reduced.
- The higher your monthly sales volume, the higher your keyed and Online payment processing fees cost, ranging from 2.27% and 3.01% plus $0.25 per transaction to 1.92% and 2.66% plus $0.15 per transaction.
- There are no monthly fees or hidden charges for platform access and software.
Advantages:
- Highly-competitive rates decrease with increased sales volumes.
- No cancellation fees or long-term contracts.
Disadvantages:
- It may not be ideal for low-volume merchants.
- A narrow range of integrations
- Not suitable for low-volume merchants
Best For:
Small to mid-size businesses with high transaction volumes.
Merchant One
A highly-rated electronic payment and credit card processing company, Merchant One is another option in a wide selection of processors that provides tailored payment solutions for its merchants.
Features:
- Enables POS, mobile, and eCommerce payment processing.
- Offers a variety of terminals and POSs for mobile, debit, and credit card payments.
- Provides personalized customer service and tailored solutions according to industry.
Pricing, Fees, & Rates:
- Offers custom pricing based on your business type and sales volume.
- Card transaction fees start at 0.29% per transaction.
Advantages:
- No setup fees or hidden costs.
Disadvantages:
- Initial price transparency is lacking
- Only provides a free quote upon request
Best For:
Small to large businesses, particularly start-ups, need assistance with low monthly prices and fees and responsive support.
Payment Depot
While not among the largest merchant processing companies, Payment Depot provides various useful payment processing tools for all types of businesses.
Features:
- A transparent interchange-plus pricing model
- Wide variety of POS systems available.
- Range of web integrations, including WooCommerce, Magento, and more.
Pricing, Fees, & Rates:
- $0 setup fee and no cancellation fees.
- Interchange fee rates between 0.2% to 1.95% per transaction.
Advantages:
- Huge cost savings for high-volume businesses
- Free equipment and no setup fees.
Disadvantages:
- Unsuited for low-volume and high-risk merchants.
- Little to no online support
- Fewer software features and tools compared to other processors
Best For:
Businesses with a high volume of transactions looking for wholesale rates.
PayPal
One of the most well-known online payment processors, Paypal provides options that cover the needs of personal peer-to-peer payments as well as enterprise businesses with locations worldwide.
Features:
- Streamlined integration with online platforms.
- Accepts payments in over 200 countries and 26 different currencies.
- Provides services for in-person and online purchases, as well as invoicing and other tools.
Pricing, Fees, & Rates:
- 2.29% plus $0.09 per in-person card or QR code transaction.
- 2.59% plus $0.49 per online card transaction
Advantages:
- Wide variety of transaction types, from QR codes to credit cards.
- A trustworthy payment processor with global reach.
- No monthly fee for basic services.
Disadvantages:
- High transaction fees compared to other competitors.
- Limited customer service for smaller businesses.
- Lots of different fees compared to other providers.
- Difficult verification process.
- Reportedly, there are many hidden fees.
Best For:
Companies doing business across international markets, small businesses with low-volume, international, or online sales.
Square
Square is another well-known processor that provides a streamlined POS system that allows users to quickly and easily process payments at the tap, swipe, or push of a button.
Features:
- Provides well-designed POS systems for mobile and retail sales processing.
- Provides useful tools for invoicing, marketing, inventory management, and more.
- Has a wide range of integrations, allowing businesses to connect Square seamlessly to their existing systems.
- Tiered plans include a premium plan with custom processing rates depending on business eligibility.
- Free magstripe reader for mobile devices.
Pricing, Fees, & Rates:
- 2.6% plus $0.10 per transaction for in-person card payments.
- 2.9% plus $0.30 per transaction for online card payments.
- 3.5% plus $0.15 per transaction for manually entered card payments.
- 3.3% plus $0.30 per transaction for online, in-person, or phone invoice payments.
Advantages:
- Easy to start up and use.
- No monthly fee for certain plans.
Disadvantages:
- Transaction fees can add up for larger companies & high-volume businesses.
- 24/7 support only for monthly plans.
- Limited compatibility with hardware.
Best For:
Small businesses looking for lightning-fast setup and easy-to-understand credit card processing fees.
Stax
Stax is a subscription-based payment processing service with decent transaction and interchange rates. It also provides additional tools for businesses to ensure customers can easily use their sales transaction services.
Features:
- In-person and online payment solutions through a subscription-based model with zero markup.
- Offers integrated analytics and reporting tools.
- Provides services tailored toward SaaS platforms.
Pricing, Fees, & Rates:
- Prices start at $99 a month and go up to $199+ the higher a company’s annual processing amount.
- 0% markup on direct-cost interchange.
Advantages:
- A flat monthly fee that is cost-effective for high-volume businesses.
- Quality analytics and reporting tools.
Disadvantages:
- A high monthly subscription can be too much for smaller businesses.
- Less transparent pricing compared to other providers
- Next-day funding is limited to certain merchants
- Requires third-party POS equipment for in-store payments
Best For:
High-volume businesses looking for subscription-based pricing with zero markup on transactions.
Summary
A business should look for several crucial factors in its partner merchant processing company. Ensure the processor’s pricing model fits its budget and sales volume and has a strong track record of good customer service, data security, and regulatory compliance. Finally, make sure it’s compatible with your existing systems to reduce setup and development costs and downtime.
These are qualities we at Payment Nerds work hard to bring to our partners. We provide excellent rates and fewer fees than our competitors, all while ensuring you get timely and responsive payment processing and customer service. Contact us to learn more about how we differ from our competitors.