Last Updated: Apr 2026
Special Deal
Not Exactly What You Need? Find the Perfect POS System to Optimize Your Business Operations
Our Top Picks for April 2026
*Promotional offer is available with establishment of a new payment processing account by new or existing U.S. Bank customers, not currently using Elavon as their merchant processing services provider. Offer may not be combined with any other Merchant Services promotions or incentives. Association Partners, registered Payment Facilitators, and certain other business types with specialized pricing are not eligible for this offer. To qualify you must:
• Open, and be approved for, a new U.S. Bank Payment Solutions Merchant Account (MID) by March 31, 2026.
• Account must be open and actively accepting and settling payments at the time the monthly statement credits are being calculated and applied in order to receive the rebate. Merchant account must be in good standing with no outstanding recovery balance.
Open a new U.S. Bank Payment Solutions merchant account before March 31, 2026, process at least $5,000 in net settled transactions within 60 days of approval and receive a $400 statement credit. Credit is applied within 60 days after reaching $5,000, provided your account remains open, active, and in good standing with no outstanding recovery balance. Limit one credit per Merchant ID; offer valid for U.S. merchants only. Available to new payment processing accounts for customers not currently using U.S. Bank and/or Elavon (a U.S. Bank company) for merchant processing. Cannot be combined with other promotions. Certain business types, Association Partners, Business Essentials customers and registered Payment Facilitators are ineligible. U.S. Bank may modify or end this offer at any time; additional restrictions may apply.
Deposit products are offered by U.S. Bank National Association. Member FDIC. ©2026 U.S. Bank
Have you ever wondered what's involved in credit card processing? Every credit card transaction involves four parties: The customer making the purchase, the merchant receiving payment for the purchase, the bank the merchant processor uses for credit card processing services (acquiring bank), and the bank that issued the customer's credit card (issuing bank).
Merchant Services for Small Businesses: What You Need to Know
Merchant services, also recognized as credit card processors, are crucial for enabling small businesses to accept a variety of payments, including credit cards like Visa, Mastercard, American Express, Discover, and contactless options such as Apple Pay, Android Pay, and PayPal. These services are pivotal for small businesses operating across diverse environments—be it a brick-and-mortar store, mobile setting, online platform, telephone, or mail order. Providers of merchant services equip small businesses with the necessary hardware and software to facilitate card payments, typically including a credit card terminal or mobile card reader and software for transaction processing, sales tracking, and inventory management.
How the Right Credit Card Processor Can Help Your Small Business
Selecting an appropriate credit card processor is a significant decision for small businesses, encompassing factors like:
- Cost: Ensuring the service is budget-friendly for small businesses.
- Customer Support: Access to responsive and helpful support.
- Fraud Prevention: Technologies built into the service to minimize fraud risks.
It’s important to note that not all merchant services companies limit their services to merely processing credit card transactions; many provide additional services and technologies to help your small business grow.
The best merchant services companies offer point-of-sale (POS) systems, advanced all-in-one software that can do a bunch of things related to your business’s sales and inventory. The best POS systems allow you to track and manage inventory, print or send receipts, and view detailed sales, product, and employee performance analytics.
Some credit card processors include extra functionality for businesses in niche industries. For example, for businesses in the hospitality industry, there are POS systems that enable customers to split a group bill or to place orders through their smartphone.
Other incentives for small businesses include integration with third-party software such as QuickBooks, digital gift cards, and digital loyalty programs. Some merchant services firms even offer merchant cash advances.
There’s a credit card processor out there for almost every business need and budget. Therefore, finding the right one for your business requires knowing what it is you need and how much you’d be willing to spend in order to achieve that.
Merchant Services Fees and Rates for Small Businesses
Merchant services billing can be confusing, with providers often charging separate fees for each service. The one constant is the transaction fee. Whether your business accepts $1,000 or $1 million worth of credit card payments each month, your merchant services provider will charge you a fee for every transaction processed. Transaction fees typically comprise 2 components: a percentage, which can vary from as high as 3% when only a transaction fee is involved to as low as 0.2% when you’re being charged for all those extras; and a flat $0.10 to $0.30 fee. You may also be subject to a foreign exchange fee if multiple currencies are involved.
Before comparing credit card processors, it’s worth becoming familiar with these common fees and rates:
Annual or monthly subscription fee: some providers also charge a minimum fee each month if you don’t make enough sales to reach the minimum threshold on your own.
PCI compliance fee: some providers charge a fee in exchange for providing encryption and fraud-prevention technology, while others offer it for free.
Equipment rental or purchase: if you need a physical card reader such as a POS system, card terminal, or mobile card reader, then your provider may charge you for it. Some providers require their customers to purchase equipment while others lease equipment on a monthly or yearly basis.
Termination fee: some merchant services companies require customers to sign on for 12, 24, or 36 months—although this is gradually becoming a thing of the past. If you do sign a contract, read the fine print for any signs of an early termination fee.
Setup or application fee: some merchant services companies charge a one-time fee for installing equipment or helping with software setup.
PCI non-compliance fee: a fine your business must pay if it somehow fails to comply with credit card security regulations or standards.
Statement fee: a small monthly fee for sending you invoices or other billing-related information.
Gateway fee: monthly charge for using your provider’s payment gateway.
Chargebacks: Visa, Mastercard and other credit card companies have the power to refund your customers for disputed or fraudulent transactions. In the rare event when this occurs, your credit card processor will pass the cost on to your business (and may also charge an additional fee).
1099-K fee: businesses processing more than $20,000 in gross payments in a given year must submit form 1099-K to the IRS. This form can only be obtained from your credit card processor—and most of them charge for providing it.
Is Your Small Business Considered High Risk?
In the credit card processing industry, some businesses are considered to be at high risk of chargebacks and may therefore be rejected or charged higher fees by merchant services providers. These are some of the industries commonly flagged as high risk:
- import/export
- credit repair
- e-cigarettes
- online dating
- pornography
- nutritional supplements
- telemarketing
- tech support
- payday loans
Having said that, each credit card processor defines high risk differently, so if you suspect you might fall under that definition, it’s worth shopping around and finding a processor that can cater to your business model.
What is a Payment Gateway?
A payment gateway is the technology underpinning all credit card transactions. It reads the customer’s credit card, then transmits that information to the merchant’s bank to be processed and to the customer’s bank to be approved or declined. Although merchant services companies are commonly referred to as credit card processors, what they actually do is provide the payment gateway. In effect, they are really facilitating rather than processing your payments. The job of processing the credit card transaction is left to the merchant acquiring bank.
When selecting a merchant services company, it’s important to be sure their payment gateway is compliant with the strongest levels of fraud prevention and authentication technology. Ideally, your payment gateway should be compliant with both the EMV and PCI protocols, 2 separate standards overseen by Visa, Mastercard, and other credit card companies in compliance with American and international laws.
How to Choose the Right Credit Card Processor
If you own or operate a business, choosing the right credit card processor could be one of the most important decisions you face. Here are 5 of the top things to do when shopping around for a provider:
Compare. There are dozens of top credit card processors catering to every need and budget. Make sure to compare between at least 3-5 processing companies before settling on one. Read online reviews, search for customer feedback, and speak directly to each company—a short phone call can be very revealing and leave you feeling more confident about one provider than another.
Understand your business model. Do you run a traditional brick-and-mortar business or an Ecommerce business? Perhaps you operate from a physical location but are looking to branch into online? Before deciding on the right credit card processor, you should have a good understanding of what type of equipment and technology you need from your processor—and the answer to that depends on what type of business you’re operating.
Study the fees. Does your chosen provider charge a simple per-transaction fee for an all-inclusive service or does it charge a super-low transaction fee with the caveat that it can also charge you for a dozen additional services? There is no correct model; it all depends on your budget and your monthly transaction volume. Always go over the fine print for any additional costs and fees.
Look for additional incentives. When we talk about credit card processors, we really mean merchant services providers. So what other merchant services can your chosen provider offer? Do they offer branded digital gift cards? How detailed is the sales analytics? Can they offer something specific to your business or industry that can help you grow?
Check the level of customer support. Whether this is your first time or tenth time using a credit card processing service, customer service is very important. Before choosing a provider, ask about their communications channels and hours of availability. If your processor values you as a customer, it should assign you a dedicated account manager. And don’t forget, this is an industry with a lot of competition, which means some of the terms and fees are open to negotiation. Don’t be afraid to discuss your needs and concerns with your provider before committing to anything.
Our Top 3 Picks
- 1
Industry-leading CCP with value-added services- Best for - Additional value-added services, low rates
- Rates - Starts at 0.15%
- Contract Length - 3 years
Safe PaymentsIndustry-leading CCP with value-added servicesSafe PaymentsRead Leaders Merchant Services ReviewLeaders is one of the best credit card processing services in the industry. It’s been around for 20 years, and its parent company is the reputable Paysafe Group Subsidiary. Leaders gives businesses a lot of reasons to love it, including some of the best credit card processing rates in the industry. We’re talking about rates that start at just 0.15%. Plus, Leaders has a 98% approval rating. So, businesses having a hard time getting the green flag will find Leaders’ process refreshing.
What's more, Leaders offers a solid $500 Assurance guarantee. This states that if the company can't save you money within the first 6 months of your contract, you'll be awarded $500 in compensation. Leaders works with the reliable Clover point of sale system, and it also integrates with QuickBooks. New SMBs will appreciate the helpful glossary of terms and 24/7/365 customer service for troubleshooting any issues. Additionally, Leaders offers value-added services such as business cash advances, loyalty programs, gift cards, check guarantee services, and point of sale systems.
Leaders Merchant Services Pros & Cons
PROS
$500 Assurance ProgramIntegrates with QuickBooksRates starting at 0.15%CONS
Long contract termsPricey early termination fee - 2
Offers global payments in 17 countries- Best for - Businesses and corporations looking to scale up
- Rates - Quote-based
- Contract Length - From month-to-month to three years
Offers global payments in 17 countriesRead Paysafe ReviewPaysafe is a comprehensive payment solution that is transforming how businesses handle transactions. It accepts global payments in 17 currencies, including credit cards, debit cards, digital wallets, POS systems, cash cards, and installment payments. The scale-based pricing starts at 15% for low volume, 3.9% per volume, and 9.5% for higher volume. There's also a fixed fee of 1.5 euros per transaction. Paysafe offers various services, including online, digital wallet, and in-person payments, and additional benefits like POS systems, receipt management, and currency conversion. This makes it a versatile choice for businesses of all sizes and types.
Paysafe offers several tools to assist businesses with their in-store payment processing. One of the notable equipment offerings is Paysafe's Android tablet POS (Point of Sale) system, which facilitates on-the-spot payment acceptance. This POS system, combined with Paysafe's sophisticated in-store payment structure, allows businesses to provide their customers with various payment options, including installment payments and mobile purchasing. For detailed pricing, contact Paysafe directly for a tailored quote.
Paysafe Pros & Cons
PROS
Flexible pricingIntegrates with major Ecommerce platforms like ShopifyAdvanced security measures including tokenizationCONS
Customer support response can take up to 24 business hoursNo clear application process mentioned for setup - 3
Payment processing + Clover POS apps- Best for - Restaurants, retailers
- Rates - 2.3% - 2.7% + $0.10
- Contract Length - Starts from 1 year
Payment processing + Clover POS appsRead Clover ReviewMany top credit card processing companies sell Clover’s point-of-sale systems. But did you know that Clover itself offers credit card processing through parent company Fiserv? That’s right. While Clover is primarily known for its POS hardware, it also offers a range of other services including payment processing, gift cards, invoicing and payroll solution, and working capital financing.
That said, if you’re looking for a payment processor that offers Clover devices, you should compare Clover to the many other payment processing companies that are authorized to resell Clover products. Clover’s flat-rate processing may seem convenient, but it looks less attractive when you consider the hundreds of poor reviews it has received from small business owners that have used its service.
Clover Pros & Cons
PROS
Predictable, flat-rate processingAccess to all Clover hardwareLarge app storeCONS
Poor customer service reputationMonthly fees
