However, the standard merchant account contract has a three-year term that automatically renews for an additional one or two years. If the processing service provider you want to work with has a lengthy contract, ask the sales rep if they can give you month-to-month terms. The advantage of setting up a payment gateway through your merchant account provider is that it reduces the likelihood of compatibility issues and, in some cases, can be less expensive. For instance, you may not be required to pay a gateway setup fee if you go through your service provider instead of going direct. Also, depending on your processing contract, there may be an exclusivity clause that requires you to go through your merchant account provider. You must apply for and be approved for a merchant account and you may get a custom payment processing rate based on your industry, time in business, risk level, and sales volumes, among other factors.

US Bank Merchant Services

We strongly discourage terminal leasing due to the noncancelable nature of the leases and the fact that you’ll pay several times more than the value of the terminal over the lifetime of the lease. Our guide to internet merchant service website1 merchant accounts takes a deeper look at the subject, but here’s a quick rundown of what you should look for when seeking out the best online payment processing provider for your business. With a membership processing model, a flat monthly membership fee is typically charged instead of various merchant account fees such as PCI compliance fees and payment gateway fees. However, some Stax customers have complained that they were charged extra a la carte fees on top of their membership fee.

As with most merchant account providers offering interchange-plus pricing, Helcim is most cost-effective for businesses processing $5K to $10K/month and above. Process less than that, and a payment service provider with flat-rate pricing like Square/Stripe/Shopify Payments may be a better deal for you. Whether you accept credit card payments online or in person, you pay a small fee for every transaction, which is expressed as a percentage of the sale plus a few cents. However, providers calculate these costs differently, which makes it difficult to compare prices. To make an accurate comparison, you need to know the types of processing fees and pricing models.

How To Choose The Right eCommerce Merchant Services Provider

The providers mentioned above have generally positive reputations in that regard. This is essentially a blacklist maintained by card networks of merchants who had issues. Being on that list pretty much guarantees any new provider will view you as high risk​. It doesn’t mean you can’t get an account, but you’ll have to work with providers who specialize in rehabilitating or accepting MATCH-listed merchants, often with even stricter terms. A payment gateway allows you to accept online credit card payments — you can’t sell online without one.

High Risk Merchant Account: What They Are, Best Providers, How They Work

Often confused with ACH transfers, eCheck processing is an optional feature offered by most merchant service providers. It allows you to scan paper checks and instantly confirm that funds are available to cover the purchase. As the payments industry has moved away from unpopular terminal leases, it’s increasingly common to see providers offering a “free” terminal with your account.

Payment Depot: Low Transaction Fees With Good Shopping Cart Support

Don’t think you can just open an account and start selling — you’ll need developer expertise on hand, and the more advanced customization you require, the more expertise you’ll need. Stax’s chargeback fee is $25, and you will also be charged a $25 fee if you do not process a certain amount each month. Preferred Rewards for Business members enjoy many rewards and ways to save; including a processing rate discount on Merchant Services when they are enrolled in the Simplified Pricing plan. “When we acquired a high-end furniture company, we ensured our MSA seamlessly integrated with the existing software,” Dylan added. I am glad I replaced another brand with Clover a few years ago,” one user wrote. You’ll also want to look for a provider that offers regional preferences, like iDEAL in the Netherlands and Boleto in Brazil.

• These transactions are more secure and result in lower payment processing fees, making Helcim an attractive option for B2B/B2G businesses.
• Due to the emergence of new payment technologies and the need to accept contactless payment methods during the recent COVID-19 pandemic, alternative payment methods have become increasingly common.
• If you have a high-risk business, PaymentCloud is most likely the way to go, although National Processing and Host also work with some high-risk businesses.
• As with most merchant account providers offering interchange-plus pricing, Helcim is most cost-effective for businesses processing $5K to $10K/month and above.
• There are account maintenance fees, but if your processing volume is high enough, they’re offset by the lower transaction rates.

Card companies and banks assume the risk of fraud or payment issues on every transaction, and these fees cover that. It has software and hardware with features for online and in-person payments, as well as advanced options for things like inventory management and customer loyalty programs. Some eCommerce merchant services providers, like Stripe and PayPal, connect with virtually any cloud-based software available. Other merchant account providers, like Helcim and Host Merchant Services, offer an open API (application program interface) for you to connect your merchant account to any online shopping cart and accounting software. We spend an average of hours researching and updating each one of our lists, making sure every company or application included meets our internal standards for quality and reputation. Merchant Maverick has been researching the payment processing industry since 2009.

Every merchant service provider has their own unique combination of products and services, so you’ll want to ensure that a provider offers the features that you need before you sign up. Many of these services are proprietary, meaning they’ll only work with the provider that offers them. While this helps to ensure compatibility between different products, it also means you won’t be able to take your favorite product with you if you switch providers.

• When customers agree to receive their purchase receipts by text, they automatically opt in to text message marketing, giving you a highly effective customer engagement tool.
• Unlike the other two pricing models, interchange plus outlines exactly what you’re paying for and uncovers any hidden fees.
• Retail-only businesses won’t need a payment gateway, but they will need reliable credit card terminals.
• List payment providers, shopping cart integrations, accounting software, and other systems you might want to integrate your merchant services solution with.
• Over time, if you show a clean record (low chargebacks, steady volume), you might shed that high risk label.
• If you want to use an existing terminal with a new provider, you’ll need to have it re-programmed to install this software.

Now that you have an idea of who can provide a high risk account, let’s talk about how to get one. The application process for high risk accounts can be more involved than a normal merchant account, but with the right preparation, you can smooth the way to approval. With a standard merchant account contract, you have a very short window at the end of the term, usually 30 days, in which to cancel your account without penalty if you don’t wish to renew.

With Clover, you can create and manage customer profiles and email them personalized offers based on their purchase history. When customers agree to receive their purchase receipts by text, they automatically opt in to text message marketing, giving you a highly effective customer engagement tool. The pricing Stax offers caters to growing and large businesses, due to a monthly fee that starts at $99. However, there’s a 0% markup on direct-cost interchange, which makes monthly costs more predictable.

While traditional banks and payment processors may shy away from certain industries, there are experienced providers, like Swipesum, that specialize in working with businesses like yours. By understanding why your business is labeled high risk, implementing chargeback reduction strategies, and choosing the right payment partner, you can mitigate risks and keep your operations running smoothly. ‍If your business is new and hasn’t processed card payments before, a bank has no data to predict your risk. A limited or no credit card processing history can thus land you in a high risk bucket​ initially. It’s like getting a loan with no credit history, lenders are nervous because they can’t gauge if you’ll pay on time. Over time, if you show a clean record (low chargebacks, steady volume), you might shed that high risk label.