In this article, we will discuss various options for businesses to set up merchant accounts at an affordable price. A merchant account is a type of bank account that allows companies to accept credit and debit card payments from customers. Setting up a merchant account can be costly, but with the right provider, it doesn’t have to be.
We will be reviewing a variety of providers, including traditional banks and online payment processors, to help you find the best option for your business. Whether you’re just starting out or looking to save money on your existing merchant account, this article have you covered with the list of the best and cheapest merchant account providers.
What is Merchant Account Providers?
Merchant account providers are companies that provide businesses with a merchant account, which is a type of bank account that allows businesses to accept credit and debit card payments from customers. A merchant account is necessary for companies that wish to process card payments.
When a customer makes a purchase with a credit or debit card, the funds are deposited into the merchant’s account after going through a process called payment processing. Merchant account providers typically work in partnership with merchant service providers (MSPs) who handle the technical aspects of processing card payments, such as transmitting the transaction data to the card networks for authorization. Merchant account providers are typically banks or other financial institutions, but some merchant service providers also offer merchant accounts.
Cheapest Merchant Account Providers
- CDG Commerce
- Helcim
- Stripe
- HostMerchantServices
- PaymentCloud
CDG Commerce
CDG Commerce, a merchant account provider, has earned a reputation for being one of the most highly recommended providers in the industry. For nearly a decade, they have consistently been listed as a top pick by various sources. CDG Commerce, as a smaller provider, can offer personalized solutions and a dedicated team of specialists to cater to the specific needs of each account. This level of customization is not always available with larger corporate providers.
In addition to competitive rates in the industry, CDG Commerce offers a wide range of hardware and software options to meet any point-of-sale demands. They also have a vast selection of payment gateways, third-party app integrations, and business management systems, over 300 in total. Choosing CDG Commerce ensures that your business will receive top-notch service at the most affordable rates and fees.
Helcim
Helcim, a Canadian company that opened its doors to the United States market in 2013, is a classic merchant account provider that offers low-cost interchange-plus pricing for well-established small businesses. It facilitates billions of transactions annually for merchants from over 800 different industries.
Helcim provides exceptional value for established businesses with its free Point of Sale (POS) system, hosted payment pages, online store, virtual terminal, invoicing software, recurring billing and subscription management, and customer portal. Helcim is a formidable competitor to Square, as it offers a similar amount of free software.
Stripe
Stripe is the ultimate one-stop shop for small businesses, offering a comprehensive solution that integrates merchant services and payment gateway in one package. Companies that use Stripe merely need to take payments and transfer them to a bank account. They have millions of customers worldwide, and businesses of all kinds rely on its services. Some of its most notable customers include Deliveroo, ASOS, and Booking.com.
Although Stripe specializes in e-commerce, it also provides payment options for in-person transactions. Stripe’s merchant service allows businesses to accept over 135 currencies and offers customers various payment options, such as payment links or in-app payments.
The most significant Stripe advantage includes integrated merchant and gateway solutions, making them an ideal solution for a web developer. The main disadvantage is that Stripe is not appropriate for high-risk industries.
Host Merchant Services
Host Merchant Services, situated in Newark, Delaware, is a versatile option for a wide range of businesses, particularly those that fall under the high-risk category. They offer a comprehensive collection of tools and services to help merchants accept payments, including specialized point-of-sale options for specific industries, including salons, professional services, restaurants, and contractors.
Along with this, they provide gift and loyalty programs, a virtual terminal, online marketing tools, offshore merchant accounts, and mobile credit card processing. They also cater to e-commerce businesses and provide complimentary website and email addresses. HostMerchantServices also supports integration with Salesforce via Authorize.Net, which they offer alongside their proprietary gateway.
Furthermore, they offer an interchange-plus pricing plan with no early termination fees, ensuring transparency and the opportunity to quit service without penalty. It has a strong reputation, with generally good feedback on public forums and many users complimenting its customer service.
Payment Cloud
Payment Cloud Inc. is a leading merchant services provider that specializes in catering to businesses with varying levels of risk, with a particular focus on mid and high-risk merchants. Based in the United States, the company prides itself on providing fair pricing, flexible contract terms, and minimal additional recurring fees to its clients.
This approach has earned PaymentCloud a reputation as a reliable and trustworthy provider in the payments industry. Actually, other merchant services providers, like Stripe and Dharma, sometimes send businesses that have been denied an account to PaymentCloud due to their reputation for being able to provide solutions for companies that fall under the higher risk category. It demonstrates the level of trust and confidence that PaymentCloud has earned within the industry and the effectiveness of their approach to providing merchant services to businesses of all types.
How to Select the Best and Cheapest Merchant Account Providers for Your Business?
When choosing a merchant account provider, there are several factors to consider in order to find the cheapest option:
Fees
Merchant account providers typically charge fees for their services, including transaction fees, monthly fees, and equipment costs. Transaction fees are the fees charged per transaction, which can vary depending on the card type and the provider. Monthly fees are the fees charged for maintaining the account and can include fees for services such as chargeback management or fraud prevention. Equipment costs refer to the cost of purchasing or leasing the necessary equipment, like credit card terminals.
Contract terms
Some merchant account providers may require a long-term contract, while others offer month-to-month agreements. Make sure to review the contract’s terms, including the contract’s length and any early termination fees. It is important because it will affect how much flexibility you have to change providers or terminate the service if you are not satisfied.
Credit card acceptance
Not all merchant account providers can accept all types of credit and debit cards. Make sure the provider you choose can accept the types of cards that your customers use, including Visa, MasterCard, American Express, and Discover.
Customer service
Research the provider’s reputation for customer service and availability. It is important because you will need to be able to contact the provider if you have any issues or questions with your account.
Payment gateway
Some merchant account providers offer a payment gateway as a part of their service, while others may require you to purchase or lease a separate payment gateway. A payment gateway is a software that allows businesses to accept online payments securely.
Compare the providers
Use comparison websites to compare different merchant account providers and their fees. This can be an excellent way to get an idea of the different options available and to find the cheapest provider for your business.
It’s important to keep in mind that the cheapest provider may not always be the best option for your business. It’s essential to weigh the cost savings against the features and services that the provider offers, as well as the reputation and reliability of the company.
Conclusion
In conclusion, setting up a merchant account for your business doesn’t have to be costly. Various options are available for companies looking for an affordable merchant account provider. We reviewed a variety of providers, including traditional banks and online payment processors, to help you find the best option for your business.
Some of the providers we reviewed include CDG Commerce, Helcim, Stripe, HostMerchantServices, and PaymentCloud. Each provider has its own strengths, and the best option for your business will depend on your specific needs and requirements. Factors to consider when choosing a merchant account provider include pricing, fees, contract terms, and the level of support and services offered. By considering these factors, you can select the best and cheapest merchant account provider for your business.
