8 Best Merchant Services for Small Business (Fees Compared)

A merchant service is what lets your business take a card instead of cash. Every one of them takes a cut of each sale, usually somewhere around 2.3% to 3.5% plus a few cents. Some also charge a monthly fee. Getting started is free with most of the big names, so the real cost shows up later, one swipe at a time.

Three questions sort the options fast. Do your customers pay in person, online, or both? How much do you run through cards in a month? And do you want one flat rate you can predict, or a lower rate you have to do a little math on? Answer those, then use the table below to find your match.

Best Merchant Services at a Glance

Every rate here comes from the provider’s own pricing page as of this update. Rates are for U.S. cards on each provider’s standard or entry plan.

“Interchange” is the wholesale fee the card networks and banks charge on every sale. Flat-rate providers bake it into one number. Interchange-plus providers pass it through at cost and add their markup on top, so your total changes with the cards your customers use.

The 8 Best Merchant Services

1. Square: Best for New and Small Shops

Square costs $0 a month on its Free plan. You pay 2.6% + 15¢ when a customer taps, dips or swipes, and 3.3% + 30¢ for online and invoice payments. Typing in a card number by hand costs 3.5% + 15¢.

Paid plans lower the rate. Square Plus is $49 a month per location and drops you to 2.5% + 15¢ in person and 2.9% + 30¢ online. Square Premium is $149 a month per location with 2.4% + 15¢ in person.

Do the math before you upgrade for the rate alone. Plus saves you 0.1% in person, so it takes about $49,000 a month in card sales to cover the $49. Online the gap is 0.4%, so the break-even is about $12,250 a month. Below those numbers, you are paying for the extra software features, not for cheaper processing.

Square says businesses processing more than $250,000 a year can ask for custom rates. If you are just opening the doors, start on Free and pair it with one of the credit card readers for your small business. You can check Square’s current fees before you sign up.

2. Stripe: Best for Selling Online

Stripe charges 2.9% + 30¢ per successful online card payment, with no setup fee and no monthly fee. That beats Square’s free-plan online rate by 0.4%. On $10,000 a month in online sales, that is $40 back in your pocket.

Watch the add-ons. International cards cost an extra 1.5%. Currency conversion adds 1%. Manually entered cards add 0.5%. Bank payments by ACH Direct Debit are cheap at 0.8%, capped at $5, which makes Stripe a good fit for large invoices.

Stripe also takes in-person payments at 2.7% + 5¢. The low 5¢ fixed fee helps if you sell a lot of small-ticket items.

The catch is setup. Stripe is built for developers and for stores running on a platform that plugs into it. If you have a website and someone who can connect it, Stripe is the one to beat. If you want to be taking cards at a counter this afternoon, pick Square. Here is Stripe’s full pricing.

3. PayPal: Best for Buyers Who Already Use PayPal

PayPal is one of the best money transfer apps for a reason. Your customers already have it, and a familiar button gets people to finish checking out. You pay for that convenience.

PayPal Checkout costs 3.49% + 49¢ per sale. A standard credit or debit card payment costs 2.99% + 49¢. International sales add 1.5%. That 49¢ fixed fee hurts on small orders. On a $10 sale, PayPal Checkout takes about 84¢, or more than 8% of the order.

In person is a different story. PayPal Point of Sale charges 2.29% + 9¢ for card-present payments, the lowest flat in-person rate on this list. Keyed-in cards cost 3.49% + 9¢. Invoices paid by bank transfer cost 1%, capped at $10.

Add PayPal as a second way to pay online, since shoppers ask for it. Think twice before making it your only processor if most of your orders are under $20. The full list is on PayPal’s merchant fees page.

4. QuickBooks Payments: Best if You Invoice From QuickBooks

If your books already live in QuickBooks, taking payments there saves you from matching deposits to invoices by hand. Every payment lands in your books on its own.

QuickBooks lists 2.99% for cards and digital wallets paid through an invoice or online, 2.5% for payments taken with a card reader or Tap to Pay on iPhone, and 3.5% for keyed-in cards. Bank transfers by ACH cost 1%, with a $1 minimum. Want your money right away? Instant deposit costs 1.75%.

The rates page does not list a separate monthly fee for Payments. Your QuickBooks plan is its own bill, so count that in. We could not confirm reader prices from Intuit’s site for this update, so check QuickBooks’ payment rates before you order hardware.

Use it if you send invoices and already pay for QuickBooks. Skip it if you run a busy retail counter, where a dedicated point-of-sale system fits better. Our small business accounting tips cover the bookkeeping side.

5. Stax: Best for Higher Volume

Stax flips the model. You pay a monthly subscription, and Stax adds 0% markup on interchange. On top of the wholesale card cost you pay a flat 8¢ per in-person sale or 15¢ per keyed or online sale.

The subscription depends on how much you process. It is $99 a month if you process up to $150,000 a year, $139 a month from $150,000 to $250,000, and $199 or more a month above $250,000. Stax lists no cancellation fees and next-business-day funding. ACH payments cost 1%, capped at $10.

Here is what that looks like. On 200 in-person sales totaling $10,000 a month, Stax costs you $99 plus $16 in per-sale fees, or $115, plus interchange. Your interchange depends on the cards your customers carry, so ask Stax for a quote using a real statement.

A $99 fee is a lot on $3,000 a month in sales. It gets easier to justify as your volume climbs. If you are small or seasonal, stay with a $0 plan. See Stax’s pricing for the current tiers.

6. Payline: Best for Interchange-Plus Without a Big Subscription

Payline also passes interchange through at cost, then adds a markup that shrinks as you grow. Its site lists interchange + 0.35% + 10¢ if you process under $50,000 a month. That drops to 0.30% + 10¢ from $50,000 to $100,000, 0.25% + 10¢ from $100,000 to $500,000, 0.20% + 8¢ from $500,000 to $1 million, and 0.15% + 8¢ above that.

On the same 200 sales totaling $10,000, the markup comes to $35 plus $20, or $55, plus interchange.

What Payline does not publish is a monthly fee. It says contract and cancellation terms depend on your agreement. Its pricing page lists terminals at $10 and $40 a month over 24 months, so hardware is a commitment. Get the monthly fee, any PCI fee and the cancellation terms in writing before you sign. Start with Payline’s pricing page.

7. U.S. Bank Payment Solutions: Best for Banking and Payments in One Place

U.S. Bank’s merchant services now go by U.S. Bank Payment Solutions. The processing runs on Elavon, which U.S. Bank owns. You can take cards in person, online and on the go, with options from a phone card reader up to a full register setup.

The best perk is speed. Everyday Funding puts your card sales in your account within hours, seven days a week, including weekends and holidays, at no extra cost. You need a U.S. Bank business checking account to get it.

There is a sign-up bonus too. Open a new Payment Solutions account by January 13, 2027, process at least $5,000 in your first 60 days, and you get a one-time $400 statement credit. It is for businesses not already processing with U.S. Bank or Elavon.

U.S. Bank does not publish its processing rates, so you will be talking to a rep. Ask for the rate, the monthly fee, the equipment cost and the contract length in writing, then compare it with the numbers in the table above. It makes the most sense if you already bank there. If you are still picking a bank, compare the best business checking accounts first. Details are on U.S. Bank’s payment solutions page.

8. Leaders Merchant Services: Best if You Want a Rep to Set It Up

Leaders Merchant Services is a traditional merchant account provider and part of Paysafe. You call or fill out a form, and a rep builds an account around your business. It sells Clover point-of-sale systems, countertop terminals and SwipeSimple mobile readers, and it offers 24/7 technical support. Leaders says many businesses are approved the same day.

You will not find a rate on its website. Leaders says pricing is customized to your business. That can work in your favor if you have volume and are willing to negotiate. It can also cost you if you sign without reading.

Go in with a recent processing statement. Ask for the rate, every monthly and annual fee, the equipment terms and the cancellation fee in writing. If the quote does not beat the published rates above, you have your answer. You can request one on the Leaders Merchant Services site.

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What Each One Costs on $10,000 a Month

Percentages are hard to compare in your head. Here is the bill on 200 sales of $50 each, using each flat-rate provider’s standard rate.

Stax and Payline do not fit in that table because their totals depend on interchange. Their own fees on the same in-person sales come to $115 for Stax and $55 for Payline, before interchange and before any account fees in your Payline quote.

Your average sale size changes the winner. The fixed cents matter more on small tickets, and the percentage matters more on big ones. Run the math with your own average sale before you pick.

What Are Merchant Services?

Merchant services are the companies and tools that move money from your customer’s card to your bank account. That covers the card reader or online checkout, the processing behind it, and the deposit that shows up afterward. If you have ever paid for something online, a merchant service handled it.

There are two main types. Payment service providers like Square, Stripe and PayPal put you on a shared account, so you can sign up online and start quickly. Traditional merchant account providers set up an account just for your business, usually with a quote and an application. The first is faster. The second can be cheaper at higher volume.

Many of them bundle extras like invoicing, inventory and reporting. Those can replace a few of the best business apps you would otherwise pay for separately.

How to Choose a Merchant Service

• Start with where you sell. In-person rates and online rates are different. A provider that is cheap at the counter can be expensive on your website.
• Match the pricing model to your volume. A flat rate with no monthly fee wins when you are small. A subscription or interchange-plus plan starts to win as your sales grow.
• Add up the fees nobody advertises. Ask about monthly minimums, PCI fees, chargeback fees and what it costs to cancel.
• Price the hardware. Buying a reader outright is simple. A multi-year terminal lease can cost far more than the device is worth.
• Check how fast you get paid. Some providers deposit the next business day. Some charge extra for instant payouts.
• Make sure it talks to your other tools. Your processor should connect to your accounting software, your online store and your bank without manual entry.

Your deposits need somewhere to land. A free business checking account keeps card sales separate from your personal money and makes tax time easier.

FAQs

The Bottom Line

If you are new or small, start with a $0 plan. Pick Square if you sell face to face and Stripe if you sell online. Add PayPal at checkout if your customers ask for it. Once you are running tens of thousands of dollars a month through cards, get quotes from Stax and Payline and compare them to what you pay now.

Whatever you choose, get every fee in writing first. Switching later is a hassle, and a contract you did not read is the most expensive part of any merchant account.

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