Merchant Services for Small Business: How to Choose a Provider

Search for the best merchant services and you'll find ranked lists of brands. A ranking can't tell you what your business will pay, because your cost depends on your card mix, your average sale and how you take payments. Criteria work better. Here's what to look for, and why each one matters.

"Low cost merchant services" is a fair goal, but the lowest advertised rate isn't always the lowest bill. A low headline rate with a monthly minimum, a PCI fee and a leased terminal can cost more than a higher rate with none of those. Compare the total you'd pay in a normal month.

There are two ways a small business gets paid by card. The difference is who approves you and when.

• Your own merchant account. A provider reviews your business before you process (this is called underwriting) and opens an account for you with an acquiring bank, the bank that deposits your card sales. The account is in your business's name.
• A payment app (payment facilitator). You sign up under the app's own master merchant account, often in minutes. The close review tends to come later, once money is moving.

Here's how that plays out, using the apps' own published terms:

• Flat rates. Stripe's U.S. price for online cards is 2.9% + 30¢ per transaction (Stripe pricing page, checked September 27, 2026). A flat rate is simple to read, but it stays the same as your volume grows and your card mix changes.
• Held funds. PayPal's User Agreement (updated September 14, 2026) lets it hold funds for up to 180 days. Square's and Stripe's terms allow reserves without a fixed hold period.
• Reviews after sign-up. Because approval happens after you start, an account can be limited or closed once the app reviews what you sell.

The card networks also expect growing businesses to have their own agreement. Visa's rules (April 18, 2026 edition) require the acquiring bank to sign a direct merchant agreement with any business processing more than US$1 million a year through a payment facilitator, with some exceptions.

Our view: a small business is better served by a merchant account of its own, underwritten up front, with Authorize.Net or Cybersource as the gateway. Authorize.Net and Cybersource refer merchants to START. We shop the merchant account with an acquiring bank, underwrite it, and send the details back so your gateway is connected. For the full comparison, read merchant account vs payment facilitator.

Every card sale carries interchange: a fee set by Visa, Mastercard and the other networks and paid to the bank that issued the card. On top of that come network fees and your provider's markup. The pricing model decides whether you can see those parts.

For scale: as of Visa's U.S. interchange schedule effective April 18, 2026, a standard (non-rewards) Visa consumer credit card used online costs 1.89% + $0.10 in interchange. The same card at a counter costs 1.51% + $0.10. Rewards and premium cards cost more. On interchange-plus you pay those real numbers plus your markup. On a flat rate you pay the same rate either way.

START prices merchant accounts on interchange-plus, with no termination, annual or AVS (address verification) fees, and passes through lower Durbin-regulated debit card fees. To see how the math works on a statement, read our guide to interchange-plus pricing.

The rate gets the attention, but the contract decides what leaving costs. Read these five items in any provider's agreement:

1. Term length and renewal. How many years, and does it renew on its own? If it does, how much notice do you have to give, and when?
2. Early termination fee. A flat fee, or a charge for each month left on the contract? Some agreements add "liquidated damages" on top, so ask for the total cost of leaving in month six.
3. Monthly minimum. If your fees in a month fall below a set amount, you pay the difference. That hits seasonal and new businesses hardest.
4. PCI fees. Many providers charge a yearly or monthly PCI compliance fee, plus a separate "non-compliance" fee if you don't finish your yearly self-assessment. Ask for both amounts and what you get for them.
5. Equipment lease. A terminal lease is often a separate contract, sometimes with a separate company, and it may not end when your processing contract does. Ask for the total you'd pay over the lease, and compare it with buying the equipment.

START charges no termination, annual or AVS fees. For everything else, ask any provider, us included, to put the full fee list in writing before you sign.

Approval is a review of your business, not a credit check alone. Underwriters usually ask for:

• Business details: legal name, address, tax ID (EIN, or SSN for a sole proprietor) and what you sell
• Owner ID and contact details
• A business bank account for deposits, shown by a voided check or bank letter
• Recent processing statements, if you already take cards
• A website with clear pricing, policies and contact details, if you sell online

Most merchants that START works with are approved in 1–5 business days, and the Authorize.Net gateway is usually set up within 24 business hours of approval. High-risk products, a brand-new business or missing documents can take longer.

For the full step-by-step process, see how to get a merchant account. If you sell online, also check the website requirements for a merchant account before you apply.

Your merchant account handles the money. The gateway is the software that sends each payment from wherever you take it to the card networks. Match the tools to how your customers pay:

• Online. Your gateway should plug into your shopping cart or website. Authorize.Net connects to more than 1,000 carts and billing systems. See ecommerce merchant accounts for what online sellers need.
• By phone, mail or invoice. A virtual terminal lets you key in a card from any browser and send payment links. See our guide to the Authorize.Net Virtual Terminal.
• In person or on the go. Ask any provider what in-person options work with your account, whether hardware is bought or leased, and what each costs. For phone and tablet options, see mobile payment processing.
• Recurring billing. If you bill memberships or subscriptions, check that the gateway stores cards securely and charges them on a schedule.

One more thing to check: if you ever change providers, can you take your customers' stored card data with you? A gateway that lets you keep your customer records makes that move much easier.

Take this list to every provider you talk to, including us. Get the answers in writing.

1. What pricing model is this? Can I see interchange, network fees and your markup on separate lines?
2. What's your markup, exactly? As a percentage and a per-transaction fee.
3. What are all the fixed fees? Monthly, annual, PCI, gateway, statement, chargeback and batch fees.
4. How long is the contract? Does it auto-renew, and what does it cost to leave early?
5. Is there a monthly minimum? How much, and from which month?
6. Who is the acquiring bank? Who deposits my money, and how many days does a deposit take?
7. When are you reviewing my business? Before I process, or after? Could my account be held or closed later for what I sell?
8. Is equipment bought or leased? If leased, what's the total cost and can it be cancelled?
9. Which gateway do I get? Does it work with my cart, and can I take stored cards with me if I leave?
10. Who do I call? What are the support hours, and will I reach a person?

Already taking cards? The quickest way to answer most of these is to look at your current statement. Send it to us for a free statement review. We'll show you your effective rate and what you should be paying. Merchants who move to START save 20% on average. When you're ready to compare providers, our guide to switching merchant services covers how to move without a gap in payments.