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Join For FreeBest Free Merchant Accounts For Small Business
A free merchant account allows you to process credit card payments without a monthly fee. Find out which free merchant account is right for you.
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WRITTEN & RESEARCHED BY
Expert Contributor
Last updated onUpdated
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REVIEWED BY
Lead Staff Writer
Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.
A free merchant account can help your business cut costs since you won’t have to pay any monthly merchant account fees or other recurring fees.
We have researched many free merchant services providers based on pricing, contract terms, and additional business tools to help you find the best free merchant account and start processing payments with no monthly fee and very few associated costs.
Learn More About Our Top Picks
| Company | Summary | Next StepsSummary |
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U.S. Bank Merchant Services
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Payment Nerds
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Square
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Chase Payment Solutions℠
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Stripe Payments
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PayPal
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Helcim
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Wave Payments
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| Show Fewer Options |
Read more below to learn why we chose these options.
Table of Contents [hide][show]
- What Is A Free Merchant Account?
- 8 Best Free Merchant Accounts
- U.S. Bank Merchant Services: Best For Established Low-Risk Businesses
- Payment Nerds: Best For Established, High-Risk Businesses
- Square: Best For Startups
- Chase Payment Solutions℠ : Best For Canadian Small Businesses
- Stripe Payments: Best For eCommerce Customization
- PayPal: Best For Accepting A Variety Of Payment Types
- Helcim: Best For Larger & B2B Businesses
- Wave Payments: Best For Freelancers
- How To Save On Credit Card Processing Costs
- Which Free Merchant Account Is Best For Your Business?
Table of Contents
- What Is A Free Merchant Account?
- 8 Best Free Merchant Accounts
- Compare The Best Free Merchant Services
- U.S. Bank Merchant Services: Best For Established Low-Risk Businesses
- U.S. Bank Merchant Services
- U.S. Bank Merchant Services Pricing
- U.S. Bank Merchant Services Features
- Payment Nerds: Best For Established, High-Risk Businesses
- Payment Nerds
- Payment Nerds Pricing
- Payment Nerds Features
- Square: Best For Startups
- Square
- Square Pricing
- Square Features
- Chase Payment Solutions℠ : Best For Canadian Small Businesses
- Chase Payment Solutions℠
- Chase Payment Solutions Pricing
- Chase Payment Solutions Features
- Stripe Payments: Best For eCommerce Customization
- Stripe Payments
- Stripe Pricing
- Stripe Features
- PayPal: Best For Accepting A Variety Of Payment Types
- PayPal
- PayPal Pricing
- PayPal Features
- Helcim: Best For Larger & B2B Businesses
- Helcim
- Helcim Pricing
- Helcim Features
- Wave Payments: Best For Freelancers
- Wave Payments
- Wave Payments Pricing
- Wave Payments Features
- Payment Processing Rating Methodology
- How To Save On Credit Card Processing Costs
- Which Free Merchant Account Is Best For Your Business?
What Is A Free Merchant Account?
A free merchant account allows your business to process payments with no monthly fee. However, all credit card transactions incur an interchange fee. Your merchant services provider also needs to make a profit. Thus, credit card processing fees cannot be completely avoided without eliminating credit card processing from your business.
Another type of “free credit card processing” offered by some merchant account providers is a cash discount or credit card surcharge plan. With those processing models, merchants are not charged processing fees, though these fees don’t just go away — they are passed on to your customers via a surcharge. Plans where merchants don’t pay processing fees do typically charge the merchant a monthly fee, however.
8 Best Free Merchant Accounts
The best free merchant accounts have no monthly fee, no monthly minimums, affordable processing rates, and minimal startup costs. Many of these providers offer “freemium” plans that can scale with your business if you want to pay for added services or features as your business grows.
Note that some of these processing companies are payment service providers offering aggregated merchant accounts, while others offer dedicated merchant accounts (which are typically more stable and less prone to funding holds).
Our top choices include:
- U.S. Bank Merchant Services: Best For Established Low-Risk Businesses
- Payment Nerds: Best For Established, High-Risk Businesses
- Square: Best For Startups
- Chase Payment Solutions℠: Best For Canadian Small Businesses
- Stripe Payments: Best For eCommerce Customization
- PayPal: Best For Accepting A Variety Of Payment Types
- Helcim: Best For Larger & B2B Businesses
- Wave Payments: Best For Freelancers
Compare The Best Free Merchant Services
| Type Of Merchant Account | International Accounts | High-Risk Accounts | |
|---|---|---|---|
| U.S. Bank Merchant Services | Dedicated merchant account | ||
| Payment Nerds | Dedicated merchant account | US & Canada only | |
| Square | Aggregated merchant account | CBD only | |
| Chase Payment Solutions℠ | Dedicated merchant account | ||
| Stripe Payments | Aggregated merchant account | ||
| PayPal | Aggregated merchant account | ||
| Helcim | Dedicated merchant account | US & Canada only | |
| Wave Payments | Aggregated merchant account | US & Canada only |
U.S. Bank Merchant Services: Best For Established Low-Risk Businesses
Pros
- Large, direct processor with many in-person branches
- Stable, dedicated merchant account
- talech POS system options, including free talech mobile POS
- Well-suited to small local businesses like restaurants, retail, & service-based businesses
Cons
- Businesses with high risk level & a short time in business probably won’t qualify
- Lengthier underwriting process (compared to an aggregated merchant account provider like Square or PayPal)
Why We Chose U.S. Bank For Established, Low-Risk Businesses
U.S. Bank is a great free processing option for low-risk local businesses (for example, cafes retail stores, landscaping businesses) that need a traditional merchant account to reliably accept in-person and/or online payments.
If you need advanced point of sale features you will pay a monthly fee, but if you just need a basic mobile POS, U.S. Bank can set you up with a talech Mobile account that includes a free mobile POS app and even a free credit card reader.
When it comes to getting approved for an account, banks like U.S. Bank are a bit more discerning than payment service providers that offer aggregated merchant accounts (like Square, Stripe, and PayPal) and it can take a bit longer to get set up. However, once you have secured an account, you are less likely to run into issues down the road, as the processor has already vetted your business thoroughly.
When To Use U.S. Bank
- You have a legit, established business in a low-risk industry
- You want a mobile POS with the stability of a dedicated merchant account
- You have a U.S. Bank business checking account (or want to open one)
Get Started With U.S. Bank Merchant Services
Payment Nerds: Best For Established, High-Risk Businesses
Pros
- Dedicated merchant account
- Accepts high-risk businesses
- Month-to-month contract
- Transparent, flat-rate processing fees
Cons
- Pricing for POS and other add-ons is not disclosed
- Less-established businesses may not be approved
Why We Chose Payment Nerds For Established High-Risk Businesses
Payment Nerds is a unique merchant account option that offers full merchant accounts with no monthly fee, even to high-risk businesses. Low-risk businesses will pay lower transaction fees but even the rates for high-risk businesses are quite reasonable ---and you won't have to pay the other myriad account fees that typically come with high-risk merchant accounts.
A rarity among free processors, Payment Nerds specializes in providing comprehensive integrated payment solutions for growing businesses, aiming to be an all-in-one payment solution for all business types. Payment Nerds does accept some startup businesses, but established businesses have a better chance of approval (and will get lower processing fees).
When To Use Payment Nerds
- You have an established, growing business and need to scale up
- You need multichannel processing solutions to sell in-person and online
- You want high-risk processing that doesn’t come with high fees or a long-term contract
Get Started With Payment Nerds
Square: Best For Startups
Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.
Pros
- Free POS software
- Free online store builder
- International & CBD support
- Numerous eCommerce tools
Cons
- High-risk businesses are usually not accepted
- Some users report account instability issues
Why We Chose Square For The Best Free Small Business Tools
Square is one of our favorites because it offers a sweet spot of low processing fees, virtually no merchant account fees, and many freebies that seem to grow yearly. For instance, with a basic account, you can now get simple employee management, inventory management, and reporting, set up a website and accept payment online, and more.
Best of all, Square will accept even very small, new businesses with no time in business.
Like most of the processors on our list, Square is a "freemium" service that you can build on to add additional paid features if you want them, allowing you to only pay for what you need.
When To Use Square
- You sell online, in-person, or a mix of both
- You have a newer business or low-volume business
- You want a modern POS system with features like onscreen tipping
Chase Payment Solutions℠ : Best For Canadian Small Businesses
Pros
- Large, direct processor
- Month-to-month contract
- Same-day funding available for Chase business account holders
- TouchBistro integration for restaurants
Cons
- Credit card terminals come with lengthy contract
- Not a fully developed POS solution
- $9.95/month fee to accept eCommerce payments
Why We Chose Chase Payment Solutions For Canadian Businesses
Chase Payment Solutions is a direct payment processor, unlike most merchant account providers which use another bank for their backend processing.
This solution is good for small businesses that are also Chase business bank account holders, as Chase banking customers can receive funding within the same day for no fees. For an additional monthly fee, you can also get fast ACH payments and lowered B2B transaction payment processing fees.
Chase has operated in Canada for more than 20 years and is among the most trusted Canadian payment processors, making them one of the best merchant accounts for Canadian businesses. (Chase also accepts US businesses and some European businesses.)
When To Use Chase
- You already bank with Chase and need a full-service merchant account
- Your business is based in Canada, the US, the UK, Ireland, or Poland
- Your business belongs to a low-risk industry (e.g., restaurant, retail)
Get Started With Chase Payment Solutions℠
Stripe Payments: Best For eCommerce Customization
Pros
- Extensive developer tools
- eCommerce & POS integration options
- Card readers for in-person payments
- Support for international payments
Cons
- Complaints of account stability issues
- Requires coding to use best tools
Why We Chose Stripe For Small eCommerce Businesses
Stripe is an excellent choice best suited for small eCommerce businesses. While Stripe is built with the developer in mind, you'll find loads of integration options and subscription tools that allow you to fully customize your customer experience without always needing advanced technical expertise.
Stripe offers robust features, including developer tools, advanced reporting tools, marketplace and subscription tools, as well as multi-currency support. You can also use Stripe to accept in-person payments with a card reader or POS integration, as well as ACH payments for no additional monthly fee.
When To Use Stripe
- You primarily sell online
- You want an eCommerce solution with advanced developer tools
- You want a free merchant account for accepting international eCommerce or ACH payments
Get Started With Stripe Payments
PayPal: Best For Accepting A Variety Of Payment Types
Pros
- Free invoicing software
- Numerous payment options accepted
- Supports international payments
- PayPal Zettle for in-person payments
Cons
- Comparatively high payment processing rates for eCommerce
- Some complaints about account stability issues
Why We Chose PayPal For Accepting A Variety Of Payment Types
We like that PayPal's pricing is very transparent. Although PayPal's online payment processing fees are on the higher end of the pricing spectrum, businesses will appreciate that PayPal boasts no cancellation fees, no monthly fees, and no long-term contracts. However, PayPal's biggest selling point is how ubiquitous the service is, including its impressive payment support in over 200 countries, making it great for international eCommerce.
PayPal also boasts one of the most extensive arrays of payment options, including a built-in Buy Now, Pay Later option, QR code payment links, cryptocurrency payments, international payments, and Venmo. You can also use PayPal to accept in-person payments using PayPal Zettle, a mobile POS with no monthly fee and low processing fees.
When To Use PayPal
- You want to accept PayPal in-person
- You want to accept international payments online
- You only need lightweight, mobile POS hardware
Helcim: Best For Larger & B2B Businesses
Pros
- Interchange-plus pricing for all users
- Free POS software and online store builder
- Strong invoicing features
- Volume discounts for large businesses
Cons
- More expensive for lower volume merchants
- Few third-party software integrations
Why We Chose Helcim For Larger & B2B Businesses
We appreciate that Helcim offers free merchant accounts to all businesses, and all accounts come with interchange-plus payment processing. Interchange-plus payment processing is the most transparent payment processing pricing structure and is more cost-effective for larger businesses than flat-rate payment processing from providers like Square and Stripe.
Helcim is great for B2B and B2G businesses because of the great invoicing software as well as the company's new AI-powered automated Level 2 and 3 data capture, which will add security to transactions and reduce payment processing rates (more on this later).
Helcim also offers a suite of free business tools, including free POS software, an online store builder, detailed invoicing software, and a customer relationship manager.
When To Use Helcim
- You want a full-service merchant account for in-person, eCommerce, or B2B sales
- You have a higher-volume business processing at least $10K-$20K/month
- You only need basic/mobile POS features
Wave Payments: Best For Freelancers
Pros
- Easy way to accept online payments
- Integration with Wave Accounting and Wave Invoicing (both free)
- Set up recurring billing schedules with customers
- Text or email invoices for payment
Cons
- Must be on paid plan to get all features (and lowest processing rates)
- Bank deposit schedule is up to seven days (for ACH payments)
- No card readers to accept card-present payments
Why We Chose Wave Payments For Freelancers
We love that Wave offers payment processing services without the monthly fee, but we believe that Wave shines brightest as one of the most affordable (free) accounting and invoicing software options on the market. All said and done, Wave boasts free services that can fully support a small business or freelancer's needs when it comes to payment processing, invoicing, and accounting.
Wave offers some solid features, including unlimited invoicing and fast payouts. Wave doesn't offer a card reader to take card-present payments, so it wouldn't be the ideal solution for a brick-and-mortar store. However, Wave is arguably the perfect free merchant account option for the freelancer or independent contractor who wants an easy way to send invoices and accept online payments.
When To Use Wave
- You want to accept online payments from clients or customers
- You need a free invoicing and/or accounting solution
- You don’t need a way to accept card-present payments
Get Started With Wave Payments
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.
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:
- Credit card processor rating criteria
- High-risk merchant account rating criteria
- Credit card reader & mobile payment device rating criteria
15
Years reviewing payment processors
100+
Providers evaluated
25
Attributes and features assessed per vendor
40+
Years combined experience
How To Save On Credit Card Processing Costs
Although it’s not possible to process credit card payments for free, it is possible to save on your payment processing costs. To lower your business’s payment processing costs, you can attempt to directly reduce how much it costs your business to process payments or try to offset your business’s processing costs.
Which Free Merchant Account Is Best For Your Business?
While you can’t avoid payment processing fees while accepting card payments in most cases, you can significantly reduce your financial burden by choosing a free merchant account. Free merchant accounts keep fees down and offer month-to-month billing that allows you to pay for what you use — they are great cost-cutting options.
Despite an enticing price point, sometimes free isn’t the way to go. Paid merchant accounts with monthly fees often include a wealth of additional features that extend beyond payment processing.
For growing or larger businesses with a less limited budget, we recommend checking out some of the best small business credit card processing companies for a look at some of the top payment processing options on the market.
However, if you’re looking for a payment processing option that offers a better balance between cost and features, we recommend looking at some of the best cheap payment processing companies instead.
Davina Ward
Expert Contributor
Davina began writing for small businesses in 2018 and has since gained expertise in the SaaS industry. She earned her Bachelor’s of Arts in English Literature from SUNY Geneseo in 2018. She currently resides in New York.
View Davina Ward's professional experience on LinkedIn.
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