Best Free Merchant Accounts For Small Business

Square utilizes a flat-rate pricing credit card processing model and charges:

• 2.6% + $0.10 for any card that is swiped, dipped, or tapped during the transaction (2.5% + $0.10 for Square Appointments users only)
• 2.9% + $0.30 for online transactions (including invoices and eCommerce sales)
• 3.3% + $0.30 for Square Payment Links & subscription payments
• 3.5% + $0.15 for keyed-in transactions
• 1% for ACH transactions

Additionally, Square charges 1.75% of the transfer amount for same-day deposits. Square also offers plenty of add-on services and custom pricing for those vendors with annual sales that exceed $250,000 with an average ticket size of over $15.

When it comes to free merchant accounts with a plethora of features, Square doesn’t have a lot of competition. Square’s features include:

• Free POS software
• Free online store builder
• Multichannel selling features such as BOPIS and local delivery
• Recurring billing options
• QR code payments and payment links
• Free magstripe card reader
• Free employee and inventory management
• Affordable Square POS hardware with modern features like onscreen tipping, swivel screens, etc.
• Tap to Pay on iPhone or Android (accept contactless payments without a card reader)
• Accept multiple payment methods for your business, including ACH, cryptocurrency, and credit card processing
• Accept contactless payments
• Same-day account creation and verification
• Afterpay for in-person and online transactions

Chase is a traditional merchant account and offers competitive flat-rate pricing. Chase Payments Solutions for payment processing are:

• 2.6% + $0.10 per transaction for card-present transactions
• 2.9% + $0.25 for eCommerce and over-the-phone transactions (monthly fee starting at $9.95/month)
• 3.5% + $0.10 per transaction for keyed-in-card and payment link transactions

Note: Interchange-plus pricing is available, but you will have to pay at least $10/mo.

Chase’s features allow small businesses to accept payments on the go and keep processing costs impressively low. Here’s a look at Chase Payment Solution’s features:

• Single company for merchant bank account and payment processing
• Same-day funding for Chase business bank account customers
• Sign up for an account online (less common with bank merchant accounts)
• Affordable card readers
• Tap to Pay on iPhone
• Chase mobile POS app with payment requests and mobile-powered payment acceptance
• eCommerce website integration
• Free Orbital Virtual Terminal (use your computer as a card terminal)
• International payment acceptance

Stripe’s payment processing rates are very straightforward:

• 2.7% + $0.05 for card-present transactions
• 2.9% + $0.30 per online transaction (+ 1.5% for international cards & instant payouts; + 0.4% for invoice payments)
• 3.4% + $0.30 for manually entered cards
• ACH payments for 0.8% (capped at $5)
• No additional fee to process payment link transactions or recurring payments

Stripe also offers plenty of options for additional tools and services, including recurring payments, tax support, identity verification, and more. These costs can add up for businesses with complex payment needs. Fortunately, Stripe offers very transparent pricing across all its services, so estimating costs should be a breeze.

Stripe’s features are pretty generous for its price range. Here’s what you can expect from Stripe’s payment processing:

• Buy Now, Pay Later support
• ACH payments
• Tap to Pay on iPhone
• Tons of eCommerce integrations
• POS integrations including Lightspeed, Shopify POS, and Mindbody
• 3D Secure authentication
• Instant payouts option
• Comprehensive developer platform, SDKs, and client libraries
• Automated dispute handling workflows
• Invoicing for one-time or recurring payments
• 24/7 customer support

PayPal’s processing fees are definitely on the higher end of the pricing spectrum when you just look at their fees for online payment options.

However, with PayPal Zettle, PayPal’s in-person POS and mobile processing solution, merchants are only charged 2.29% + $0.09 (for card-present transactions). QR code payments through Zettle are also only 2.29% + $0.09.

As one of the most recognizable names in payment processing, PayPal has the market on payment democratization and customer trust. You’ll get simplicity and ease of use, alongside reliable payment processing and impressive seller protections.

Here’s a look at PayPal’s features:

• Free ACH transfers
• Free crypto transfers (to/from another PayPal or Venmo account)
• QR code payments
• Tap to Pay on iPhone or Android
• Send invoices for free
• No long-term contracts
• BNPL options (PayPal Pay In 4)
• Affordable processing hardware
• Discounted processing rates for online donations
• Checkout buttons & Pay With PayPal option
• Integration with eCommerce platforms
• 24 local currencies accepted

Helcim’s rates are dependent on your monthly processing volume which will determine the pricing tier your business falls under. Pricing ranges from interchange + 0.15-0.40% + $0.06-$0.08.

Note: Helcim placed a custom payment processing rate calculator tool on the company’s pricing page so you can get a payment processing fee estimate before even signing up for a Helcim account.

The company uses an interchange-plus pricing model for all accounts and rewards businesses with lower processing rates as they increase their processing volume. Helcim also offers POS hardware for retail businesses that costs $99 (Helcim card reader) and $329 (Helcim Smart Terminal).

Related: Read our Helcim Smart Terminal review for more on how you could implement this sleek handheld POS system in your store or mobile business.

Helcim’s free merchant account comes packed with lots of built-in features, plus useful add-ons that won’t break the bank. Here’s a look at Helcim’s features:

• Free POS software
• Free online store builder
• Free invoice builder and manager
• No monthly fees, PCI compliance fees, setup fees, or other miscellaneous fees related to just having a merchant account
• Accept international payments
• Inventory management, CRM, and secure card storage services
• Chargeback refunds if you win the dispute ($15 otherwise)
• Cash discount program that works for invoices, payment requests, and standard transactions
• Automated Level 2 and 3 card data capture (e.g., zip code, freight and duty information, commodity codes) using AI

Automated Level 2 and 3 card data capture reduces payment processing fees because the card-issuing banks lower interchange rates when you give them more transaction information. This is a great feature for B2B and B2G businesses that include more transaction information, such as tax IDs, and accept Level 3 interchange eligible credit cards.

Wave Payments’ pricing is more expensive compared to other options on this list when you consider that they don’t offer a way to take card-present payments. That being said, their online processing fee, which is 2.9% on the $16/month plan and 2.9% + $0.60 on the free plan, is quite competitive, especially since most payment service providers charge more for invoiced transactions.

Businesses may also process bank payments with Wave for a 1% fee for each transaction or a minimum $1 fee, whichever is greater. Wave also offers payroll services and professional bookkeeping services for an additional monthly fee.

Wave Payments features include:

• Set recurring billing schedules for faster payments
• Create customizable invoices
• Accept Apple Pay, all major credit cards, and bank payments
• Send invoices via email, text, or payment link
• Send invoices on the go with free Wave mobile app
• Accept payments in-person, online, or via phone
• Seamless integration with Wave’s accounting software
• Strong bank-level payments security