The traditional way to accept card payments is for a business to have its own POS system and best merchant account service. Technically, there is no free way of doing this. But, providers who offer more affordable solutions may not require contracts or monthly fees as well as set up charges if you are only using checkouts online or through invoices instead of in person at the point-of-sale (POS). Below are the best merchant account include:
Square payments is a free payment processing and POS solution with competitive rates, sleek design, and advanced features. Unlike traditional merchant accounts that need an application process and approval to operate, anyone can sign up for Square without any barriers. This way small businesses get all the benefits of the best free merchant account in town!
Square offers competitive transaction processing rates, especially if you take into consideration the free POS and e-commerce tools available to its users. It’s also the only provider on our list that offers up to $250 of chargeback protection for free a month and zero chargeback fees. Stripe is close but will cost you 0.4% for any kind of chargebacks protection, whether it be by credit card or debit card (or even PayPal). Square’s chip-and-tap reader is cheaper at $49; however, Square’s card reader has more versatility because it can connect with a countertop setup which QuickBooks does not offer as an option.
Square got a 4.51 out of 5 in our evaluation of the best free merchant services, which is due to high marks for not having chargeback or cancellation fees, being able to be used as an option for many different types of payments, and coming with a suite of free business management tools. The only downside was limited customer support and ACH and bank payment options combined with reports on account stability issues that prevented Square from scoring higher than they did. That said, Square is also one of our top picks when it comes to best overall merchant services.
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PayPal Business is a user-friendly electronic payments company that offers competitive rates for individuals and small businesses. Solopreneurs, hobbyists, or occasional sellers will find its peer-to-peer payment tools the perfect solution.
For a faster checkout experience without the need to enter any payment or shipping information, One-Touch technology is something Square doesn’t have. This works similarly to Apple Pay at checkout, which shoppers will recognize and may lead your customers to make purchases on your site. Combined with PayPal’s wide-reaching name recognition, this can increase conversion rates for your online store.
PayPal’s rating of 4.26 out of 5 is below Square and PayPal in transactions and budget features, but they are one step ahead with pricing. While PayPal offers affordable transaction fees for mobile and online purchases, as well as a free POS app to use on your smartphone or tablet) it requires you to sign up for monthly subscriptions if you want virtual terminals or ACH processing. It also has a $20 chargeback fee that other competitors don’t have along with limited customer support options (24 hours).
Helcim is a company that provides merchant services with built-in volume discounts and interchange plus transaction fees. It provides POS, inventory management, invoicing, and customer management as well as e-commerce features for free to its customers. The system can easily be adapted for a wide range of industries including retail and subscription-based service businesses.
This provider is best suited for retailers. With its interchange-plus pricing scheme and discounts, this service favors businesses with larger monthly transactions. Helcim’s suite of management tools is a great value to the retail business that has many customers coming through their doors each day.
Helcim scored an overall score of 4.09 out of 5 in our evaluation, with particularly strong scores for its free multichannel sales tools and competitive interchange pricing. It beat Chase on the transaction and budget features, especially for stored payments and business management tools. Helcim’s average fees are 1.92% plus 8 cents (for card-present) or 2.38% plus 25 cents (online), which is the lowest among providers listed here.
Helcim doesn’t have the most attractive system but comes with one of the highest fees. They also were not compatible well and had limited integration – all these factors contributed to a lower score for Helcim.
Chase Payment Solutions is a big name in the banking industry and it has also acquired key subsidiaries to become one of the most versatile merchant service providers. Chase can give users faster access to their funds, especially if they have Chase Business Checking accounts. It offers both same-day and next-day funding options depending on the type of account you have with them.
The system supports in-person, online, and mobile sales with a secure payment processing system. Besides this it includes key POS and inventory integrations so you can run your business efficiently from one single platform while on the go. It is simply one of the best choices for those who prefer a traditional merchant account
Our assessment of Chase Payment Solutions, according to their performance in our tests, results in a final score of 4.08 out of 5 stars. This is an excellent rating that we achieved thanks to multiple payment options and POS integrations as well as how quickly it makes funds available for its users-especially when long-term contracts are involved. Transaction fees on cards not present or online rates are also slightly lower than Square’s (5 cents cheaper), and signing up with them will get you free hardware if you sign up for a long-term contract
Chase is a leading provider of personal and business banking products, but it was a close second to Helcim in many categories like pricing and contract. One area where Chase fell behind is transaction features- there are no stored payment services that come with the account, meaning you need to pay extra for those. In addition, customer service quality needs improvement as well as they lacked some basics features like retailer protection tools which prevented Chase from achieving higher rankings than Helcim and landing them just behind by an extremely small margin.
Free POS and mobile payments app: At Chase, you have the option to accept a variety of cards like chip cards and contactless cards. You can also process checks remotely or accept payments from friends using mobile wallets like Apple Pay. Our services include tips, adjustments, and reporting as well!
Online transactions: Create an online store and start taking payments in minutes with these easy steps. You can also set up a “buy now” or “subscribe” button to accept recurring payments using one of Chase’s more than 140 integrations, including Shopify and WooCommerce.
Invoicing: We offer custom invoices or recurring billing. Schedule your invoice generation and set flexible payment methods that’s convenient for you, while making sure the customer will be able to pay it on time!
Chargeback protection: Our online dispute management system allows you to receive notifications on chargebacks as quickly as possible and promptly respond. This ensures that your account isn’t debited below the original purchase amount.
Stripe is a free payment processing system that lets businesses create custom online checkouts with instant setup and no application process. It also has features such as managing subscriptions, recurring fees, and storing card data. Stripe’s detailed online features along with its zero startup fee and competitive rates make it a solid choice for e-commerce businesses.
Square is a good option for mom-and-pop shops or occasional sellers. Stripe, on the other hand, has more to offer businesses that are growing and looking for software and technical resources to maximize its impressive array of free and open-source tools.
Stripe is an American payments company focusing on the e-commerce market, Stripe is focused on providing a robust and customizable set of payment solutions with security features to assist in fraud prevention. It earned a 4.06 out of 5 during our evaluation which included ACH processing tools being affordable but also preventing it from scoring higher due to its complicated setup process, slow deposit speed, and limited business management tools
There are no merchant services that are 100% free. However, many of the options have monthly fees and startup or processing minimums. There is a wide range of these options to choose from and they all come with competitive pay-as-you-go transaction processing fees. These choices offer a variety of features like POS integration, invoicing software, business management tools, etc so you can be sure to find an option perfect for your needs! Our top choice for free merchant accounts has no application process or monthly fee in addition to having basic tools necessary for running a business such as mobile payments apps and affordable prices on additional products/services you may need (Square).