We feature the best merchant service providers, to allow you to take payments both online as well as in store, in order to better support your business.
The best merchant services let you take payments both online and in person, in order to better support your business. The need to take card payments online and off has become paramount for the modern business. But to do that requires payment processing, a service that’s usually supplied by a merchant service provider. Physical transactions start with a card reader, either a standalone device with a pinpad for your countertop or as a dongle for your smartphone — meaning an app on your mobile device can run the transaction through. Additionally (or alternatively, for online-only businesses), you can process credit card through an ecommerce site when someone simply enters their card details. The right merchant service will then process the transaction for you. A service like this is merely one part of your point of sale (POS) system, which can do much more than simply process transactions, however. The best POS systems can manage your inventory, ensure you’re on top of compliance-related payment regulations, and help your business avoid fines and other administrative costs (such as chargeback fraud), all while offering advanced security features that protect from data theft and cyber breaches. POS processing fees tend to be cheaper, on the grounds that the customer is physically present and so the chances of fraud are less than anonymous online transactions. But POS processing in a brick and mortar store may require additional equipment, not least the card reader itself. Fees can also vary according to sales volume, and it’s worth keeping an eye on transaction fees. While some merchant services may charge seemingly high monthly fees, these often come with very low individual transaction costs that make them very competitive. Overall, the market for merchant services is a competitive one, and there’s plenty of choice out there. The challenge is to find one that works best for your business model. To help you, we’ve identified the best merchant services for both online and offline businesses. How much your merchant services cost your business depends on what sort of system you’re going to need. If you’re a small business then there is little point in spending a lot of money on a complex setup that might never get used to its full potential. At the same time, you’ll want to invest enough in your merchant services to ensure that you’re able to process payments as and when they’re needed. You’ll find that payment providers often have deals and incentives available hoping to persuade you to sign up for their services. However, it’s worth checking what level of commitment is needed. Again, there’s little point in having a contract for long-term merchant services if you only need to process payments occasionally. Square offers a merchant service designed to “start selling fast.” It will attract smaller and new businesses with its promises: quick setup, no long term contracts, and no monthly fees, and the service even includes a free mag-stripe reader.
