Get An Easy Merchant Account

If you are in business and looking to accept credit cards, which is nowadays a must-have service for any type of business, there are many options available. However, if you're just starting out, it can be difficult to decide which one will work best for your needs. As most people don't want the headache of shopping around different account providers just to see what they offer (and the fact that few merchants will provide their rates up front), we've compiled this list of information that should help.

We'll go through what fees and rates are typically involved with merchant accounts in general, as well as how establish these types of accounts with a few industry leaders: SquareUp, PayPal Here, Shopify Payments and Digital River.

In addition to the basics, we'll also discuss how to qualify for merchant accounts and the potential customer benefits they can offer.

On top of all this, we will include a list of pros and cons for each account provider, so you have all the information needed to make an informed decision about merchant account providers.

The Basics: You Must Have A Merchant Account To Accept Credit Cards

First things first: if you want to accept credit cards from customers, you must have what is called a merchant account . Basically, it's an account that allows you (the merchant) to accept credit cards as payment at your physical location or through some other type of business – like on your website.

It is important to note that you cannot accept credit cards without having a merchant account, but it's not the same thing as getting a business bank account. This is because your business does not hold any assets in the account. Instead, you are given a line of credit (a revolving line of credit) specifically for accepting credit cards. You must pay back the funds on this line of credit before each transaction, regardless of whether or not you actually used the funds from that particular transaction. This is known as factoring .

Also, some banks will open merchant accounts for you (although they may charge a higher interest rate), but the bank is not going to be in charge of providing funds to your business .

Here are the basic types of merchant account providers:

PayPal Here: Established in 2010, PayPal Here allows you to accept credit cards at your physical location as well as through your website. They were also one of the first merchant account providers to offer a mobile platform. While this service is known primarily for selling products, it's also responsible for processing $2.2 trillion in transactions worldwide each year – so it's certainly a reputable company! You can check out their pricing structure here .

Fees: Typically a 2.7% + $0.30 per transaction fee .

. Rates: Most values below are for Peak Pricing . As PayPal Here states on their website, rate quotes are not available for most merchants until after an evaluation is completed by the Payment Card Industry Security Standards Council (PCI). In order to qualify for value pricing, you must be enrolled in the PCI program which has a three-year commitment, with additional annual fees of $500 or $1,000 depending on your account balance (or monthly volumes).

SquareUp: Established in 2003 under the name AccountPass, SquareUp is best known as a mobile payment platform. However, they also offer a merchant account service for both physical and virtual locations. They were started by Jack Dorsey (the creator of Twitter). Click here to see the different pricing plans .

Fees: 2.75% + $0.15 per transaction at a physical location or on your website.

Rates: While SquareUp has no pre-set rates like PayPal Here, they do connect you with an approved lead generator who will review your credit profile and help you get the best deal possible within 24 hours! This is done regardless of whether or not you have been approved for one of their specific plans above.

Shopify Payments: Established in 2013, Shopify Payments is a direct payment platform for both physical and virtual locations. They also have a mobile app that can be used to accept payments at your business – whether you're at home or on the go. They charge their cards for processing fees of 1.9% + $0.30 .

Fees: 2.5% + $1 per transaction (minimum charge is $10).

(minimum charge is $10). Rates: The rates below are based on the Merchant Specialty Plan, which costs $1,000 annually (waived if you use less than 10 transactions per month) and 2% + $0.05 per transaction.

Digital River: A digital commerce provider, Digital River allows you to accept credit cards through both your website and at a physical location. As they are primarily geared towards business-to-business transactions, they probably won't be the best option for most individual users. However, if you're looking for a platform that can incorporate other payment methods besides just credit cards (like Paypal and Google Wallet), you should definitely look into Digital River! You can take a look at their pricing structure here .

Fees: 1% + $1 per card, or 2.9% + $0.30 per transaction, depending on volume . For eCommerce transactions (like through your website), Smart Pricing will usually be available for an additional $0.20 or $0.30 per transaction, bringing the total to 2.9% + $0.50 per transaction .

or per transaction, depending on . For eCommerce transactions (like through your website), Smart Pricing will usually be available for an additional or per transaction, bringing the total to . Rates: Digital River has a wide range of rates and fees that are dependent on whether you're a new customer or have been in business for a while; however, their average rates currently sit at 2% + $1.85 per transaction, depending on customer volume .

JetPay: Established in 2002, JetPay is another payment platform that allows you to accept credit cards at your physical location and through your website. They also have a mobile app that allows you to accept payments on the go, which can be downloaded from the App Store or Play Store. This company started off offering a service called FastCard, which was similar to PayPal Here. As of November twenty-sixth , 2017, they will no longer offer FastCard as a service option for merchants. You can learn more by visiting their pricing page here.

Fees: 3% + $0.01 per credit card transaction (depending on volume).

per credit card transaction (depending on volume). Rates: The rates below are based on the FastCard Crop Plan – which is $500 annually . The rates are slightly lower for its four other plans – Green Plan, Silver Plan, Gold Plan and Platinum Plan. All of these plans have a minimum of three cards and a maximum of six cards. You can find exchange rate options here .

. The rates are slightly lower for its four other plans – Green Plan, Silver Plan, Gold Plan and Platinum Plan.

Conclusion

As you can see from the merchant account providers above, there are a lot of options out there. Instead of trying to decide for yourself which will work best for your business, you can work with a Lead Generator to help you get connected with different providers and find the best price for your company's needs!

Need More Information?

If you need more help in figuring out how to accept credit cards for your small business, don't hesitate to reach out! We're happy to answer any questions that you may have. Contact us here .