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No Setup Fees
1
38 reviews
Payment Cloud - Trusted choice for high-risk businesses, no setup fees
  • 98% approval rating
  • No application or set-up fees
  • Customizable by industry
  • Secure payment gateway
  • Free Terminals
2
37 reviews
Leaders Merchant Services - Transparent pricing with low rates & fees
  • Ideal for small businesses
  • Free EMV equipment
  • 24/7 technical support
3
Stax by FattMerchant - Flat-fee credit card payment processing Read Review
  • 12,000 customers nationwide
  • Average savings of 40%
  • Free equipment
4
58 reviews
Flagship - Extensive range of hardware options for all businesses
  • Same day funding available
  • Free Clover and EMV equipment
  • Mobile payment solutions
5
27 reviews
ProMerchant - Month-to-month pricing, competitive rates
  • No cancellation fees
  • Start accepting payments within 2 days
  • Free software and equipment
6
Clover - Secure payment processing solution for restaurants and retail businessesRead Review
  • Quick and simple setup
  • Predictable, flat-rate processing
  • Access to all Clover hardware
7
30 reviews
CreditCard Processing.com - Free personalized account to suit your business needs >
  • Free application and set-up
  • Same day approval
  • Flat rate pricing
8
Payment Depot - Merchant services for all business sizes and typesRead Review
  • Accepts all major credit cards
  • Great for high-volume businesses
  • No cancellation fee
9
56 reviews
Square - Ideal for on-the-go businesses
  • Intuitive and easy to use
  • All-in-one payments system
  • Dispute management services
10
National Processing - Flexible payment processing for low-risk merchantsRead Review
  • Transparent fee structure
  • Free reprogramming of existing equipment
  • No early termination fee

Our Best Overall Provider

No Setup Fees
1
38 reviews
Payment Cloud - Trusted choice for high-risk businesses, no setup fees
  • 98% approval rating
  • No application or set-up fees
  • Customizable by industry
  • Secure payment gateway
  • Free Terminals

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We find the 10 best options, so you can make informed decisions on tons of products and services.
  • 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), the bank that issued the customer's credit card (issuing bank).

    How Does Credit Card Processing Work?

    Acquiring banks (also called merchant banks) contract with merchants to operate accounts that allow the merchants to accept credit card payments. Acquiring banks deposit funds for credit card purchases into merchants' accounts. They also furnish merchants with credit card processing software and equipment such as a merchant processor, credit card reader and terminal, as well as providing customer service, promotional materials and other credit card processing services.

    Any merchant who wishes to accept credit card payments must have a merchant processor account. A merchant account is an unsecured line of credit that pays a merchant for customer purchases. The payment is actually a loan to the merchant's account from that merchant's acquiring bank. In other words, the acquiring bank loans money to the merchant to cover the cost of customers' credit card transactions.

    After a credit card transaction is complete, the merchant will have less money than the original transaction amount because both the issuing bank and the acquiring bank will charge the merchant fees for their services. These fees include a percentage of each transaction, and the higher the transaction amount, the higher the fee. The merchant may also be charged fixed fees for each transaction by the issuing bank and the acquiring bank.

    What You Need to Know About Credit Card Processing:

    If you want to set up a merchant account for credit card processing, you probably wonder about the credit card fees you will be charged. The most important determinant of how high your fees will be is the type of business you are in. Certain businesses are more likely than others to suffer payment disputes and chargebacks, so their transactions are considered riskier by issuing and acquiring banks. Businesses with these riskier transactions are therefore charged higher fees to offset the risk of chargebacks.

    Chargebacks are what happens when a customer successfully disputes a credit card fees transaction with your business. The safest transactions, as far as the issuing and acquiring banks are concerned, take place when the cardholder swipes his or her own card in the credit card reader and signs the receipt to pay for goods that are inexpensive and not likely to generate complaints. Restaurants, gas stations and car rental agencies all fall into this category, and because their chargeback risk is low, they pay less in fees for credit card processing transactions.

    The risk of a chargeback is highest when transactions are completed via the Internet or by phone. The risk is even higher if the transactions are expensive, involve shipping and the business is one that is subject to complaints. The bottom line is that when a merchant applies for credit card processing services, the business the merchant is engaged in figures significantly in the fees that the merchant will be charged.

    Top Merchant Services Companies

    Best for

    Small businesses that are looking for a comprehensive payment processing solution at competitive prices.

    Leaders prides itself on its competitive price per transaction. It has one of the lowest monthly fees and credit and debit card transaction fees, and also offers free hardware to new users. The low monthly minimum of just $15 makes it a good choice for small businesses that don’t yet make a high volume of sales and can’t afford to spend a lot on expensive CCP hardware.

    Props

    • Free EMV equipment
    • Low transaction fees
    • A $500 guarantee that you’ll save money on credit card processing

    Cons

    • Confusing website
    • Live chat support would be helpful
    • Only for US-based businesses

    Best for

    Small to medium businesses and mobile businesses that need a portable payment processing solution.

    Flagship stands out for its transparent pricing that has no hidden fees and no setup fees, making it ideal for businesses that are just starting out and have a limited budget. There’s no long-term contract so you can try out Flagship for a month and then switch to a different CCP if it doesn’t suit you. Flagship offers a mobile payment processor, an iPad POS system, and a payment gateway, as well as a conventional merchant processing account.

    Props

    • No setup fees
    • Monthly contract without cancellation fees
    • Free credit card swiper

    Cons

    • No payment information on the website
    • No live chat
    • Fees per transaction could be lower

    Best for

    Payment Cloud is perfect for high risk businesses that struggle to find cost-effective and reliable CCP solutions.

    PaymentCloud is an ideal CCP service for high-risk merchants seeking a reliable provider. It offers a complete range of payment and card processing solutions for a huge variety of B2B and B2C businesses - from online or in-person transactions, to gift cards and checks. PaymentCloud’s 24/7 toll-free phone line also helps merchants to connect with their dedicated account representative, who is completely and competently trained to deal with any type of enquiry.

    Props

    • 98% approval rating
    • No setup or application fees

    Cons

    • Exact fees and charges are unclear
    • Terminal hardware and software available for lease only