Merchant Services: Top Providers & How to Choose (2025 Guide)

Consumers want the freedom and control to choose how to pay for their products.

Globally, shoppers are turning to digital payments, with the volume of non-cash transactions expected to hit $2.84 trillion by 2028, according to Capgemini Research Institute’s 2025 World Payments Report.

The report found that digital wallets like Alipay and Apple Pay already capture 66% of all online purchase value worldwide, up from just 34% a decade ago. 

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 key 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. They’re an essential component for any business that wants to offer payment methods beyond cash—including ecommerce businesses and brick-and-mortar stores.

A merchant service provider is an intermediary between your business, your customer, and any financial institutions involved in a transaction between the two—including your bank and the customer’s banka. It facilitates a seamless transaction through a secure yet complex process that takes place behind the scenes. The process includes the following steps:

1. Your customer presents their payment method, whether by entering payment details online or swiping a credit or debit card on your point-of-sale (POS) terminal—or just tapping it.
2. Your merchant services provider sends the payment information through the card network (Visa, Mastercard, American Express) to the issuing bank (the customer’s bank) for approval.
3. The customer’s bank either approves the transaction and sends an approval code to the card company or declines the transaction.
4. The card company sends the approval code to your merchant services provider. 
5. Your merchant services provider relays the approval code to your payment terminal.
6. Your payment terminal confirms the transaction and prints a receipt.
7. After approval, your merchant services provider settles the transaction by moving funds from the customer’s bank to your acquiring bank, which deposits them into your merchant account.

All of this happens seamlessly in only a few moments. Most merchant services providers 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. Getting a merchant account with an acquiring bank is straightforward if you have a business license.

What’s included in merchant services?

Merchant services include payment processing and a financial account, but they also deliver additional features to help you run your business effectively: 

• Payment gateways and APIs: Cloud-based software encrypts checkout data, tokenizes sensitive card details, and connects your online store or POS to the card networks with a single integration.
• POS hardware and software: Terminals, card readers, and mobile apps let you ring up sales in person while syncing inventory, tax, and customer data to your ecommerce back end. 
• Security and compliance tools: These services help protect revenue and keep you compliant with PCI-DSS encryption, tokenization, and AI-powered fraud detection.
• Integrations with third-party providers: The best merchant services providers allow you to customize your payment processes and methods based on your industry and the markets you serve. This often happens via third-party integrations.
• Reporting and analytics: You’ll access real-time dashboards that break down sales, fees, and payout timing so you can reconcile faster and spot financial patterns.
• Value-added services: Extras like invoicing, gift cards, and capital advances smooth out cash flow and provide better customer experience.

Shopify bundles most of these services into one platform, so you can manage commerce without juggling multiple vendors. 

Benefits of a merchant services provider

The right merchant services provider helps you settle sales faster and make sure fees don’t eat into your margins. Some more detailed benefits include:

• More sales approved at checkout: Shopify Payments’ machine learning-based authorization process raises payment success rates by 26 basis points, unlocking an extra $471 million in annual gross payment volume across its merchants.
• Fewer and cheaper chargebacks: Chargebacks are set to take over $33.78 billion from merchant pockets in 2025 alone, according to a 2025 trend report from Mastercard. Providers like Shopify cut fraud-related chargebacks by 20%, saving merchants an estimated $62 million a year. 
• Faster access to cash: Instant and same-day payout options are a key benefit of merchant services. Ninety-two percent of US businesses say improving cash flow is a top reason they’re adopting faster payment processing, and 86% already use instant payments.

Types of merchant service providers

Different types of providers solve different problems, and some cover the entire spectrum—from routing payments to keeping high-risk businesses live. Knowing how each one works will help you choose the right option for your risk profile, sales channels, and growth plans. 

Payment gateways

A payment gateway is a platform that processes online payments from your online store. It ensures you can safely process payments from online customers using credit and debit cards. Omnichannel retailers that require bank-level security and multiple payment options leverage secure payment gateways. 

Mobile payment processors 

These providers let you use your smartphone or tablet as a credit card terminal. They operate through a mobile card reader that connects to your device, as well as a mobile app that passes payment information to your payment processing network.

Shopify’s Tap To Pay is a more powerful version of a mobile payment system that includes a built-in barcode scanner, the ability to accept secure payments with any payment method, and full integration with your store’s back office. It’s useful for businesses that want to sell on the go with no additional hardware.

Independent sales organizations (ISOs)

ISOs are third-party agents registered with card networks to resell processing services. They open your merchant account, lease or sell terminals, and offer human support, which is useful if you’d rather call a rep than wade through API docs.

High-risk merchant service providers 

Some industries, like tobacco, insurance, and online gambling, have higher refund or fraud rates. They often exceed the card networks’ chargeback threshold, which is around 0.9%, putting them into the “high-risk” category. 

Specialist service providers in this segment keep those businesses processing but offset the extra risk with higher fees and rolling reserves. Businesses typically choose these providers when mainstream providers decline their application or stop service due to chargebacks. 

All-in-one payment platforms

Vendors like Shopify combine gateway, processing, POS, and back-office tools in one dashboard. Every online order, swipe, or mobile sale flows through the same system, keeping your business data in sync 24/7. 

12 best merchant services providers in 2025

If you’re looking for a merchant services provider, here are the leaders in this space worth considering. The best option depends 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 such as native integration capabilities, global payment options, operational efficiency, total cost of ownership, and scalability potential.

1. Shopify

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 popups, 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.

Because Shopify also provides a full point-of-sale system with Shopify POS, you gain an integrated back office with inventory management, customer profiles, marketing tools, detailed reports, and omnichannel checkout options. No long-term contracts means you have 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% of purchase amount for Basic Shopify, Shopify, and Advanced Shopify plans, respectively.

2. Helcim

Helcim is a merchant services company that lets you accept payments in-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 let you accept payments on a computer, tablet, or smartphone.

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

Features:

• Interchange-plus pricing
• No long-term contracts

Cost: 0.4% + $0.08 for in-person transactions, 0.5% + $0.25 for online transactions, and plus interchange

3. Square

With Square, you can accept payments in person, online, remotely (like ACH transfer), and over the phone. Square’s hardware options include 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 via phone or email

Cost: 2.6% + $0.10¢per in-person transaction, 2.9% + $0.30 for cards, or 1% with a minimum $1 per transaction for ACH bank transfers (invoices only), and 3.5% + $0.15 for online, manually entered, or invoice payments. Monthly plans with advanced features start at $29 per month.

4. Stripe

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

Stripe features an application programming interface (API) that integrates with payment methods worldwide, such as 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% + $0.30 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. It also supports invoicing customers and clients.

The pricing Stax offers caters to growing and large businesses, with 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: Plans start at $99 per month. Customer reviews report questionable business practices.

6. Clover

Clover is a full-service POS system and merchant service provider. It offers software and hardware with features for online and in-person payments, as well as advanced options for features 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% + $0.10 per transaction. Monthly subscription fees also apply but are not publicly advertised. 

7. Chase 

Chase is a major US bank that offers a suite of tools for retail businesses, including Chase Payment Solutions merchant services. Chase provides 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: 2.6% + $0.10 for card; 3.5% + $0.10 for manually keyed transactions or payment links; and 2.9% + $0.25 for ecommerce payments. Monthly subscriptions start at $9.95 per month.

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 offers a POS system with accounting, employee management, inventory tracking, and other business management features. 

Features:

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

Cost: 2.65% + $0.10 for card; 2.99% + $0.30 for ecommerce payments, and 3.50% + $0.15 for keyed transactions. A monthly subscription fee may also apply. 

 9. PayPal

PayPal is an online payment processor that has expanded 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 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. 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 available seven days a week, including weekends and holidays
• Integrated online store capabilities and POS lending options through Avvance

Costs: 2.6% + $0.10 for card transactions, 3.5% + $0.15 for manual transactions, and 2.9% + $0.30 for online payments

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 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: 2.5% + $0.10 for basic in-person transactions, 2.9% + $0.30 for basic ecommerce transactions

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: Interchange plus 0.15% + $0.08 for in-person transactions, interchange plus 0.2% + $0.11 for online transactions, and a monthly fee of $15

How to pick a merchant service provider 

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

Monthly fees

Monthly fees are the fixed amount a provider bills you every month. No-fee plans work best if you process less than about $15,000 in card sales, because you only pay transaction rates.

Once you’re processing more volume, paying roughly $29 a month for added POS and reporting tools can lower your overall cost compared to higher per-transaction rates alone.

Transaction costs

There are three main ways your merchant services provider charges 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—a small percentage of the transaction amount plus an additional fixed fee.

An example of flat rate pricing is 2.9% + $0.30 per transaction. This structure is simple and predictable, making it easy to plan your expenses based on the number of sales you make 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 reveals 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.

Extra fees

Don’t forget about incidental fees, which are 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 a 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

Funding options 

Consider the ways a provider moves money from your sales into your bank. Standard payouts are usually free and arrive in one to three business days. 

Some providers also offer instant or same-day payouts, where money arrives within minutes or hours. There are two caveats for these payments:

1. You may pay a small extra fee (often 1%) for the speed.
2. You may need to acquire a financial account with the provider, like Shopify Balance. 

Security and 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.

Payment options 

Offering the right mix of payment options helps you capture every sale. Customers prefer a variety of payment methods, 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.

Contract length and terms

Contracts spell out how long you’re locked in and what it costs to quit. 

Choose month-to-month plans with no early-termination fee so you can leave anytime. Avoid multi-year deals that auto-renew and charge penalties if you switch providers early.

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.

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. 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. In addition, you’ll want to look for more advanced metrics, as well as automated options, so you don’t have to build all your data reports manually.