Greatest service provider providers
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There are merchant services available to help companies process credit card payments. You may know them as "credit card processors".
Regardless of what you call them, choosing the best merchant service is not easy. The "best" is the one that works for your specific business, and each of the following services has certain features that may work for a business but not for your business.
Because of this, in this guide I will take care of any type of business and find the right dealer service for your needs.
The top 6 merchant services:
- square
- Flagship Merchant Services
- Helcim
- Payment deposit
- Fattmerchant
- Stripes
How to choose the best dealer services for you
Before we get to the best dealer services we need to understand the criteria by which these decisions are made. When reading the reviews, keep all of the following factors in mind.
Processing rates / monthly fees
It's all about the money, and credit card processing isn't as easy as you think. You need to weigh the pros and cons of each gateway. Otherwise, you may end up paying a lot more than you planned.
We need to look at processing rates first. To get a lower processing rate, you usually have to pay a higher monthly fee. If you are processing high volume payments it is worth paying the higher fee as your volume will make up for it.
However, unless you are processing a lot of payments, a higher transaction fee won't hurt you as much as a high monthly fee.
Flat rate processing is an easy solution for small businesses, but exchange rates are generally cheaper.
Services
You want to see what the payment processor has to offer in addition to credit card processing. Do they offer free POS systems, hardware, mobile payments, integrations, etc.? Some merchant services even offer advice, loyalty features, and billing tools.
Sometimes the “added benefits” you get from a merchant service provider outweigh some of the disadvantages.
The type of merchant service account
There are two main types of accounts: an aggregator (or broker) and an ISO (or independent sales organization). Let's compare the two and see why it's important to understand the difference.
Aggregators
These are middlemen who work between the company and the bank and provide a simple payment processing solution for companies. Square is an example of this, and while they make it easier, they usually have higher fees and transaction costs.
ISOs
Payment Depot is an example of an ISO. Although they usually have stricter acceptance guidelines, they offer lower rates and easy to use software compared to a direct processor.
integration
One of the most important factors to consider is "How does this integrate with my current systems?"
Your payment processor should never get in the way or cause your conversion rates to drop. It should complement or even improve your current process. Make sure you choose something that will easily integrate with your business without too many changes or adjustments.
The different types of dealer services
After much research and careful consideration, these are my six top retailer services for in-person and online sales.
# 1. Square – The best for transparent prices / fees
Benefits:
- No monthly fee
- Transparent processing
- Free card reader
- Great additional features
Disadvantage:
- No ACH payment processing
- Higher fees than desired
Square is popular for its credit card processing and POS systems, but it offers so much more. It includes features such as the card to file feature that allows users to save loyalty card information, which is great for repeat customers trying to collect loyalty points and such rewards.
The processor doesn't have a monthly fee either, and while Square's features may not be as advanced as some of the other payment processors we're talking about, you can't beat the value at a POS with no monthly fee.
The only thing that strikes me the most is the transaction costs and their differences whether you do business in person or online.
For in-person sales, expect 2.6% and $ 0.10 per transaction. For online transactions, the cost is 2.9% and $ 0.30 per transaction. There are other cases such as:
- Transactions with virtual terminals
- Card-on-file transactions
- And transactions without a card
These cost 3.5% and $ 0.15 per transaction.
Based on these numbers, Square isn't the cheapest flat rate processor, but the transparency makes it easy for you to understand what the rates are and how they affect your processing based on volume and price.
Benefits:
- Dedicated account manager
- Free account setup
- Free card terminal (for a fee)
Disadvantage:
- Confusing property
- Little information about the price
Flagship Merchant Services cut the ribbon in 2001 and was acquired by iPayment in 2012. Now they mainly resell iPayment. So keep that in mind.
This company was one of the first to offer free account setup with no application or fees and real monthly contracts. They operate tens of thousands of traders and have a good reputation.
As they are not a direct processor, most of their merchant accounts are set up through iPayment. iPayment uses First Data as its processor, and figuring out who is processing what through which service can get confusing.
For retailers, Flagship offers a free credit card terminal. However, you are responsible for paying the account fees and insurance for this terminal to make it work.
For e-commerce, they either offer Authorize.net for processing and integrating an online shopping cart on your website.
One thing that was a little frustrating about Flagship is trying to find information about their prices. When you go to the company's website, you'll need to fill out a form for information about the fees.
I would like to see more transparency, but you may get a package deal on this strategy.
My favorite feature is that when you buy a gateway you get a single line of contact with the company. You act as an account manager. If you ever have a problem, reach out to that specific person. This isn't a feature I've ever seen on any other dealer service.
# 3. Helcim – The best for small businesses
Benefits:
- Limited fees
- Fees based on volume
- Free online shop software
Disadvantage:
- Limited integrations
- $ 199 for the card reader
If you are a small business owner, Helcim might appeal to you. This service allows you to process credit and debit cards online and in person. You can also do the following:
- Set up recurring payments
- Send invoices
- Collect payments
With a Helcim card reader, you can accept all major cards including Amex plus Google Pay, Apple Pay and JCB.
Helcim charges $ 20 per month with transaction fees based on volume. You have no contracts or cancellation fees and wave your monthly fee if you don't process any payments.
Overall, Helcim is affordable, but much more so for in-person payments than online. Here is a brief breakdown of the pricing structure:
- Monthly volume: $ 0- $ 25,000
- Personally: 0.3% + 8 cents (+ exchange)
- On-line: 0.5% + 25 cents (+ exchange)
- Monthly volume: $ 25,001- $ 50,000
- Personally: 0.25% + 7 cents (+ exchange)
- On-line: 0.45% + 20 cents (+ exchange)
- Monthly volume: $ 50,001- $ 100,000
- Personally: 0.2% + 7 cents (+ exchange)
- On-line: 0.4% + 20 cents (+ exchange)
- Monthly volume: $ 100,001- $ 250,000
- Personally: 0.18% + 6 cents (+ exchange)
- On-line: 0.35% + 15 cents (+ exchange)
Helcim has nice features for those of you who want to integrate this payment gateway into your online shop. You can add a checkout for billing and customer registration to your website while accepting recurring subscriptions.
# 4. Payment deposit – Best for established businesses
Benefits:
- No contract processing
- competitive prices
- Easy to integrate online
Disadvantage:
- Best for large volume stores
- Application process
Payment Depot uses a membership pricing model that is easy to understand but sometimes results in you paying higher fees. Thankfully, Payment Depot's rates are pretty competitive and include pricing for exchanges, as well as online, in-person, and mobile payments.
This strategy actually makes Payment Depot one of the cheapest payment processors for established companies that have a certain volume.
Payment Depot accepts all major cards as well as contactless Apple Pay and Google Pay. The next day you will receive financing and integration into POS systems as well as e-commerce platforms such as:
- Shopify
- Indulge yourself
- QuickBooks
- PrestaShop
- BigComemrce
- WooCommerce
And more…
I don't think this is one of the best small business merchant services as they structure their prices. Transaction fees go down when you pay a higher monthly fee, and they seem to force you to increase your plan due to strict processing restrictions.
Here is a breakdown of the prices:
Basic plan
- Fee: $ 49
- Transaction Fee: $ 0.15
- Monthly limit: $ 25,000
Popular plan
- Fee: 79 USD
- Transaction Fee: $ 0.10
- Monthly limit: $ 75,000
premier
- Fee: $ 99
- Transaction Fee: $ 0.07
- Monthly limit: $ 150,000
Unlimited
- Fee: $ 199
- Transaction Fee: $ 0.05
- Monthly limit: Unlimited
As you can see, when the volume is high, it makes the most sense to upgrade to the most expensive plan for the lowest transaction fees.
# 5. Fattmerchant – Best for subscription based businesses
Benefits:
- Simple pricing
- Omni software
- A great choice for subscription businesses
Disadvantage:
- Higher monthly fees
- Transaction fees are relatively standard
Fattmerchant is set up in a similar way to many other payment processors. As you increase your monthly fee, your transaction fees decrease. They offer Omni where you can create your bills, payments and reports. The service is incredibly easy to use, ideal for beginners, and is included in your monthly fee.
While Fattmerchant is a great choice for budget-conscious business owners, it's also a great choice for subscription-based businesses. If you sell monthly coaching packages, agency services or advice, you benefit from the structure of Fattmerchant.
The processor accepts all major cards including ACH, billing, Text2Pay, and more. Same day funding is available and you get a free iOS and Android POS app and bluetooth card reader to use on the go.
They have two pricing plans:
- Fee: $ 99
- Annual limit: $ 500,000
- Card presentation fee: $ 0.08 + exchange
- Card not available: $ 0.15 + exchange
- ACH transaction fee: $ 0.25
- Fee: $ 199
- Annual limit: $ 5,000,000
- Card presentation fee: $ 0.06 + exchange
- Card not available: $ 0.12 + exchange
- ACH transaction fee: $ 0.25
Fattmerchant has a higher monthly fee than some others, but the company says this is a way of keeping their transaction fees down.
# 6. Stripes – Best for online payment processing
Benefits:
- Allows you to grow
- Reasonable prices
- Great solution for online businesses
Disadvantage:
- Complicated setup
- Developers may be required
If your business is completely online, Stripe is your best bet. It was specially developed for the e-commerce and internet business and countless startups and Fortune 500 companies rely on Stripe.
The company offers sophisticated software and APIs that online shop owners can use to customize their checkout process. You can use the pre-built integrations to instantly connect a Stripe checkout and then customize it over time.
That's one of the main reasons I love Stripe. It is a payments processor that grows with you and allows you to change it as your business needs change.
There are complications associated with all of these functions and moving parts. It's not that easy to set up. If you want to take advantage of the many advantages Stripe has to offer, you likely need a developer to do it for you.
Stripe offers a "pay as you go" strategy with no monthly fees and transparent transaction fees across the board.
- On-line: 2.9% and $ 0.30
- Personally: 2.7% and $ 0.05
- International: Add 1% per transaction
- ACH Direct: Max 0.8% at $ 5.00 per transaction
- ACH Credit: $ 1.00 per transaction
You can use all major credit and debit cards as well as ACH, WeChat Pay, Apple Pay, Google Pay and much more. Wait two business days for deposits or pay a one percent fee for instant deposits.
Stripe integrates with WordPress, Magento, Squarespace, 3DCart, Zoho, Big Cartel, and more.
So at this point, you should know which of these merchant services is right for you. They all have their pros and cons, and you should choose based on the type of business you own.
Square is a solid total solution for all businesses, but the transaction fees are a bit high and the scalability is lacking.
I am also a huge fan of Helcim because you can grow with your processor by increasing the monthly payment as your volume needs increase.
Whichever choice you make, it is important to consider the important factors and choose them carefully so that you do not regret your decision later.