5 Best Ways To Accept Credit Card Payments Without A Merchant Account

Total Rating	4.8
Fees & Rates5.0
Products & Services4.7
Contract4.3
Sales & Advertising Transparency5.0
Customer Service4.9
User Reviews4.9

Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.

Pros

Month-to-month billing
Predictable flat-rate pricing
Very affordable card readers and terminals
Very cost-effective for small and seasonal businesses

Cons

Account stability issues
Not available to most high-risk industries
Can be expensive at high processing volumes

Square Terminal handheld POS system, Square Register, and Square iPad stand.

Why We Chose Square For In-Person Payments

We believe that Square is the most affordable and feature-rich mobile payment processing solution, especially for businesses that require POS terminals. The company offers industry-specific POS systems for retail, restaurant, and service-based businesses along with flat-rate payment processing.

The company offers both free and paid plans that include advanced features for an additional monthly subscription fee. The advanced features are very cost-effective when compared to other payment processors that come with POS software.

Related: Read our Square For Restaurants review if you're looking to implement one of the best restaurant POS systems at your business.

Square Pricing

Square includes the following costs:

2.5%-2.6% + $0.10 for swiped/dipped/tapped transactions
2.6%-2.9% + $0.30 for online transactions
3.5% + $0.15 for keyed-in transactions
No monthly minimum
No PCI compliance fees
$0-$60/location/month depending on your POS software plan

Note: Square’s flat-rate pricing works best for relatively low-volume businesses, but can be more expensive than a merchant account at higher payment processing volumes. If your business grows above approximately $5,000/month in credit and debit card sales, you should consider transitioning to a full-service merchant account.

Square Features

Square was one of the first third-party payment processors to offer a way to accept credit card payments in person. The original mobile processing system has evolved into a fully-featured platform for POS, payments, and more products by Square for small businesses.

Major features include:

EMV and NFC-compatible mobile card readers
Square Terminal for in-person sales
Square Stand iPad-based POS system
Free Square Online Store for all Square users
Virtual terminal for keyed-in or in-person transactions
Numerous secondary services (invoicing, inventory management, etc.)
Industry-specific POS software plans

Related: Check out our Square For Retail review for more information on retail inventory management and online sales and our guide to Square hardware for more details on Square’s hardware offering.

Get Started With Square

Shopify Payments: Best For Easy eCommerce Setup

Shopify Payments

Get Started With Shopify Payments

Total Rating	4.6
Fees & Rates4.7
Products & Services4.5
Contract5.0
Sales & Advertising Transparency4.6
Customer Service3.7
User Reviews4.4

Pros

Predictable flat-rate pricing
Compatibility with PayPal and Shop Pay app
Excellent eCommerce store customizations
Multicurrency payments supported
Free POS app included with online stores

Cons

Requires monthly subscription fee
Add-ons often necessary
Account stability issues

Shopify online store checkout page using Shopify Payments to accept payment.

Why We Chose Shopify Payments For An Easy eCommerce Setup Process

We believe that Shopify provides an excellent out-of-the-box eCommerce platform for entrepreneurs who want to start an online business but don't want to spend too much time or effort on technical details. Setting up Shopify Payments is easy to do. The payment processor comes with all Shopify accounts, and all you have to do is activate it.

Shopify's easy-to-use interface helps merchants build a professional-looking website, with or without a coding professional. It also connects to Shopify POS software, which is built specifically for omnichannel retail businesses.

Related: Read our Shopify review for more information on Shopify's eCommerce store builder features.

Shopify Payments Pricing

Shopify charges the following prices to use Shopify Payments:

2.4%-2.7%/transaction
2.4%-2.9% + $0.30/transaction
$5-$399/month subscription plans
$49 Shopify Tap & Chip Reader
Additional fees apply for optional services

Note: The higher-level plans offer substantially lower payment processing rates and better retail inventory and shipping management features.

Shopify Payments Features

Shopify is a very popular eCommerce platform that includes all the features you’ll need to set up an online business and start selling from your website. While you can use Shopify with just about any merchant services provider, Shopify Payments integrates directly with the Shopify platform and is very well-suited to fledgling eCommerce businesses.

Key features include the following:

Omnichannel payments platform with online store, social media, and online marketplace sales
Several easy-to-install software apps available
Integrated security and PCI compliance services
Affordable EMV and NFC-compatible card readers available
Shopify POS software available to offer in-store shopping and online shopping with in-store pickup
Strong international website building and shipping features
Compatibility with PayPal Express without having to pay extra transaction fees
Compatibility with the Shop Pay app, which allows customers to save payment information for later, track packages in real time, and pay for items in installments
Extensive developer tools

Related: Read our Shopify POS review for more information on how you can use this retail POS system to create a hybrid shopping experience for your customers.

Stripe Payments: Best For Advanced eCommerce Features

Stripe Payments

Get Started With Stripe Payments

Total Rating	4.7
Fees & Rates4.7
Products & Services4.5
Contract5.0
Sales & Advertising Transparency5.0
Customer Service4.5
User Reviews4.1

Pros

Extensive developer tools and customization options
Predictable flat-rate pricing
Low-code features available
Excellent international sales features

Cons

Needs technical skills to implement in most cases
Account stability issues
Not available to high-risk businesses

Customizable Stripe payment link to be emailed to a customer.

Why We Chose Stripe For Advanced eCommerce Features

For eCommerce or omnichannel merchants, Stripe offers the most sophisticated platform you can find, but you'll most likely need either a developer or coding skills to take full advantage of all the capabilities it offers, such as branding your checkout flow or setting up a unique payments platform for B2B customers.

Stripe is one of the few providers we've found that combines transparent, small-business-friendly pricing with the kinds of advanced features you'd normally only find with a full-service merchant account.

It's a great choice for almost any online business, regardless of size or processing volume. It's also perfect for international businesses, as it's available in most major countries around the world, supports a variety of local payment methods, and can process multicurrency transactions.

Stripe Pricing

Stripe pricing includes:

2.9% + $0.30 per online transaction
2.7% + $0.05 per in-person transaction
1% + $0.30 per international transaction
1% per currency conversion (if needed)
0.8% per ACH transfer (maximum of $5.00)
No monthly fee
$15/incident chargeback fee
Additional fees for some optional services
Customized pricing available

Read our Stripe pricing guide for more information on customized pricing and paid Stripe add-ons.

Stripe Features

Stripe is the most advanced and customizable online payment platform in the industry but has also recently begun to expand into the retail sector as well. Here are the primary features it offers:

Integrated payments platform with customizable checkout interface
Extensive online shopping cart compatibility
135+ payment methods available including digital wallets and local currency options available for 195 countries
Invoice, recurring billing, and one-click checkout flows
Advanced analytics and reporting tools
Strong set of developer tools for site customization
Stripe Radar anti-fraud detection service
Support for in-person payments via Stripe Terminal
Connections to the most popular POS systems and eCommerce platforms
Numerous secondary services are available

Venmo: Best For Individuals Taking Occasional Card Payments

Venmo

Pros

Lower in-person payment processing rates than competitors
No card reader required
No business bank account or EIN required
Easy to use

Cons

Customers must have Venmo accounts for lower payment processing fees
Merchant is responsible for tax reporting
Very limited business management features

Payment via Venmo app and QR code on mobile phone.

Why We Chose Venmo For Individuals Taking Occasional Card Payments

We like that Venmo (which is owned by PayPal) is a widely recognized peer-to-peer payment app with low in-person payment processing fees that make it easy for individuals to take occasional card payments on the go. Venmo offers business accounts but is not technically a third-party payment processor. All you need is U.S. residency status and a personal Venmo account, so most individuals can sign up for a business account. There are no business bank account or EIN (employer identification number) requirements.

Because Venmo has minimal inventory management, customer management, financial reporting, and software integration capabilities, we only recommend Venmo for individuals and very small businesses charging for services or singular items.

Note: To take online transactions, you need to sign up for either a PayPal Business account or use Braintree, which is a payment system owned by PayPal.

Venmo Pricing

Venmo includes the following pricing:

1.9% + $0.10/transaction for payments made using the Venmo app and a QR code
2.29% + $0.09/transaction for tap-to-pay payments
3.49% + $0.49/transaction for purchases made online or in-app using the Braintree gateway or PayPal Checkout
Purchases limited to $2,999.99/transaction
Total purchases limited to $24,999.99/week (or $2,499.99 without identity verification)
Transfers to your bank account limited to $49,999.99/week (or $999.99 without identity verification)
Transfers to your bank account limited to $50,000/transaction for instant transfers
$14.99 Venmo QR code kit

Related: Read our Braintree review to decide whether this online payment system is suited for your small business.

Venmo Features

Venmo For Business accounts allow individuals and very small businesses to accept payments through Venmo’s peer-to-peer payments network, and includes the following features:

In-person payments using QR codes and the Venmo mobile app
Online payments using PayPal Checkout or the Braintree payment gateway
QR code kit available (includes printed QR codes in multiple sizes)
Venmo charity profile for nonprofits
Social sharing of purchases so your customers can show their friends what they’re buying

Note: Venmo is rolling out tap-to-pay features for Venmo business profile users. Once you have access to this feature, you can take card and digital wallet payments like Google Pay using your iPhone or Android device. No credit card reader is required.

For more information on how Venmo business accounts work and how to set one up, read our guide to Venmo For Business.

Get Started With Venmo

PayPal: Best For Low-Volume Merchants

PayPal

Total Rating	4.2
Fees & Rates3.8
Products & Services4.2
Contract4.6
Sales & Advertising Transparency5.0
Customer Service4.1
User Reviews3.3

Pros

Trusted by consumers
Predictable flat-rate pricing
Extensive integrations
All-in-one payments system

Cons

Account stability issues
Inconsistent customer support
Does not accept high-risk merchants

PayPal buy button generator for selling individual items.

Why We Chose PayPal For Low-Volume Merchants

Despite its recent price increases, PayPal can still be a good option for many small businesses.

PayPal accounts don't come with long-term contracts or early termination penalties, and even the company's free service tier offers all the basic features an online business will need. Because of the pay-as-you-go nature of PayPal's fee structure, many merchants use it as a backup payment acceptance method in addition to their primary provider.

However, if you're thinking of using PayPal as your sole means of accepting credit and debit card payments, we strongly encourage you to take a careful look at the company's new pricing structure. While some of the processing fees are competitive with what other third-party processors charge, others are above industry averages and could cost you a lot of money if they apply to the types of transactions that you accept most frequently.

PayPal Pricing

PayPal’s revamped pricing structure is now more complex. Here’s an overview of the primary rates and fees you should know:

2.29% + $0.09 for mobile and in-person transactions
2.99% + $0.49 for online sales (standard plan)
3.49% + $0.09 for keyed-in transactions
3.09% + $0.49 for virtual terminal transactions
1.5%/international transaction
$0/month for PayPal Checkout
$5/month for PayPal Payments Advanced
$30/month for PayPal Payments Pro

For a more detailed breakdown of PayPal’s pricing, please see our complete guide to PayPal’s merchant fees.

PayPal Features

An early eCommerce pioneer, PayPal enjoys near-universal name recognition and offers a complete payments ecosystem for just about any type of business. Highlights of the company’s services include the following:

Credit and debit card payment processing
Support for localized payment methods
Contextual checkout buttons
Hosted checkout page
Virtual terminal available (additional fee applies)
Recurring billing available (additional fee applies)
Connections with popular eCommerce platforms

Get Started With PayPal

Payment Processing Rating Methodology

Merchant Maverick has been researching the payment processing industry since 2009. Our writers have reviewed hundreds of credit card processors, merchant account services, and mobile payment apps, evaluating each provider carefully on several different metrics.

Weighted Rating Breakdown

Fees & Rates 35%

Contract 20%

Products & Services 15%

Sales & Advertising Transparency 15%

Customer Service 10%

User Reviews 5%

When comparing different payment processing companies and applications to one another, we consider numerous data points. Our experts start by comparing credit card processing rates, the presence of additional fees, contract length, sales practices, and the presence or absence of additional features and services, like point of sale software. Each provider is judged on its own merits and how well it stacks up to industry standards; then it is weighed against the other providers on the list.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure every company or application included meets our internal standards for quality and reputation. Any list of recommended payment processors on our site might contain a mix of standard merchant accounts, third-party payment processors, mobile payment devices, and high-risk payment processors, depending on what our expert feels is the best fit for certain scenarios or business types.

For additional details about Merchant Maverick’s review and rating processes, please refer to any or all of the following methodology pages:

Years reviewing payment processors

100+

Providers evaluated

Attributes and features assessed per vendor

40+

Years combined experience

How To Accept Credit Cards For Personal Use

In addition to payment service providers, peer-to-peer money transfer apps have made it easier than ever to send or receive a payment for personal or business transactions. Remember that all income must be reported to the IRS, even if you do not receive an IRS Form 1099-K. Here’s how the most popular services handle this issue:

Zelle

While Zelle is perhaps the easiest to use and most accessible peer-to-peer service available, it won’t be very helpful at tax time. Because it does not settle funds, Zelle maintains that it’s exempt from IRS income reporting laws.

Although you can set up a Zelle profile for your business, you won’t receive an IRS Form 1099-K for any transactions, regardless of the amount. You should also be aware that not all banks that use Zelle offer it for business purposes, and those that do may or may not charge fees for business-related transfers.

Square Cash App

Even if you’re not using Square as your third-party processor of choice, the Square Cash App can be a handy way to accept payments.

While you can download the app and set up an account for free, any payments you accept that are funded with a credit card will incur a 2.75% processing fee. You’ll also pay a 3% fee if you want to add money to your Square Cash account using a credit card.

Square also offers a Cash App Business Account for individuals looking to keep business and personal transactions separate. Like other peer-to-peer services, Square Cash App issues 1099-Ks for qualifying transactions.

Personal PayPal Account

While you can use your personal PayPal account for the occasional business transaction, you’d be solely responsible for accurately reporting your income to the IRS for tax purposes. You’d also miss out on all the additional features and services that PayPal offers to merchants.

Personal Venmo Account

Venmo offers peer-to-peer money transfers for both personal use and business use. However, Venmo only offers tax form management on Venmo For Business profiles.

Read our guide to filing small business taxes to prepare for tax season.

What To Look For If You Want To Accept Payments Without A Merchant Account

Here’s a brief overview of the major features you should evaluate before selecting a third-party processor for your business:

In-Person Payments Features

To accept credit cards in person, you should get a credit card reader or terminal to swipe, dip, or tap the customer’s card. All the payment processors on this list offer credit card readers, while companies like Square and Shopify offer full POS register setups.

If you want to accept credit card payments without a credit card machine, use a QR code payment method from a provider like PayPal or use Square’s tap-to-pay feature available on iPhones.

Note: Taking payments with a card reader will always cost less than QR code or online payments. This is because the card itself is present and that makes the payment more secure.

Online Payment Support

You’ll need a payment gateway or virtual terminal to take payments online. A payment gateway is a service that connects your online store to your provider’s processing network. A virtual terminal is software that runs on your computer or mobile device, allowing you to manually enter credit card payment information or function as a terminal in conjunction with a compatible card reader.

Most major payment gateways today include a built-in virtual terminal feature. Most third-party processors provide a free virtual terminal as part of your account (with the notable exception of PayPal, which inexplicably charges $30/month for this rather basic feature).

Alternative Payment Methods

Customers are starting to expect alternative payment methods, including digital wallets (e.g. Apple Pay), ACH payments, and online invoicing. In some cases, alternative payment methods can also decrease your payment processing fees.

Third-party payment processors have responded to this demand by offering increased support for popular alternative payment methods. Identify which alternative payment methods are relevant for your business before choosing your payment processor.

Strong Customer Support

Customer support is an important factor in choosing your payment processor because you want to be able to contact someone if your account freezes or you run into trouble when you integrate your payment processor with third-party software. Look for payment processors with several modes of support (phone, email, live chat, etc.)

Also, look for a provider with good self-help articles so you can troubleshoot issues on your own before contacting customer support.

Should My Business Accept Payments Without A Merchant Account?

If you process below $5,000/month, we generally recommend that you accept credit card payments without a merchant account. Above that amount, we generally recommend a full-service merchant account as a more stable and less expensive option. However, the monthly processing volume requirement isn’t set in stone. You should also consider factors such as average ticket size, specific POS hardware or software needs, and whether your business is seasonal.

If you decide to use a payment service provider instead of a merchant account, we recommend the following best practices:

Do look for a provider that offers month-to-month billing with no long-term contracts
Do purchase your processing hardware (if any) outright rather than leasing a credit card machine
Do read all of your contract documents thoroughly before you sign up

Don’t choose a provider just because it promises the lowest rates
Don’t lie or misrepresent the nature of your business when applying for an account
Don’t forget to review your monthly processing statements to see how much you’re actually paying for your account

In addition to the providers we’ve reviewed above, check out our roundups of the best free credit card processors and the best online payment processors to explore other options for small business owners.

FAQs: How To Accept Credit Card Payments Without A Merchant Account

How can I accept a credit card without a POS machine?

To accept credit cards without a POS machine, use a mobile card reader that pairs with a POS app on your smartphone or tablet, generate a QR code that people can scan to pay online, or manually enter the card details into a virtual terminal or mobile app.

Note: Taking payments without a physical card reader costs more in payment processing fees. We recommend purchasing one to take payments in person.

How can I accept payments online without a merchant account?

You can accept payments online without a merchant account by using a third-party payment processor, such as Square, Stripe, or Shopify. Peer-to-peer payment services like Venmo can also be used to accept digital payments as well.

Can I accept a credit card without a business?

You can use peer-to-peer payment services like Venmo, Zelle, and the Square Cash App to accept credit cards without a business. It’s also possible to sign up for a Square account for personal use, even if you don’t have a business.

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Frank Kehl

Expert Contributor at Merchant Maverick

Frank has been writing about payment processing and business services since 2015. He is a retired Air Force officer and a former practicing attorney. He has a Bachelor of Science degree in Psychology from The Pennsylvania State University and a Juris Doctorate degree from the Ventura College of Law, and currently resides in Paso Robles, California.

@fjkehl2

View Frank Kehl's professional experience on LinkedIn.

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1. Square

❮ ❯

Best for in-person payments
$0-$60/month/location
2.5%-2.9% payment processing fee

2. Shopify Payments

❮ ❯

Best for easy eCommerce setup
$29-$399/month
2.4%-2.9% payment processing fee

3. Stripe Payments

❮ ❯

Best for advanced eCommerce features
$0/month
2.7%-2.9% payment processing fee

4. Venmo

❮ ❯

Best for individuals taking occasional card payments
$0/month
1.9%-3.49% payment processing fee

5. PayPal

❮ ❯

Best for low-volume merchants
$0-$30/month
2.99%-3.49% payment processing fee