Merchant services allow businesses to accept credit and debit card payments at a point-of-sale (POS) system, online, or through invoices. Technically, there is no way to accept card payments for free. However, there are free merchant services and payment service providers with no setup fees, contracts, or monthly fees that offer more affordable payment options.
The best free merchant accounts for small businesses are:
Best free merchant accounts compared
Note that all the providers on our list offer $0 monthly fees, startup costs, no monthly minimums, and no long-term contracts.
Our free merchant account recommendations are ideal for startups and low-volume merchants. For businesses with larger monthly sales volume, payment processors that offer very low transaction rates in exchange for a monthly fee are more cost-effective solutions.
Another alternative for free merchant processing is to pass along the credit card transaction fees to customers via credit card surcharging, convenience fees, or cash discounting. Learn more about free credit card processing.
Why You Can Trust Fit Small Business
I have eight years of experience evaluating dozens of merchant account services and payment processors, plus a background in finance and payment technology. To recommend the best answer, I tested 14 providers based on 21 data points that considered value for money, versatility, and ease of use. See my full methodology below.
Retail Staff Writer at Fit Small Business
Square: Best overall free merchant account
Pros
- Free, instant setup
- Chargeback protection up to $250 per month
- Free POS and ecommerce tools
Cons
- Automated clearing house (ACH) processing only in invoicing
- Account stability issues
- Limited live support
Read our full Square Payments review
Overview
Who should use it:
New and small businesses that need a POS system.
Why I like Square Payments:
Square is an all-in-one payment and POS solution for small businesses. It does not charge monthly fees for payment processing and offers the most robust free plan that allows small businesses to launch their business with very little to zero upfront cost. Square’s software is highly rated and well-reviewed by real-life users, making it one of the most popular POS and payment services on the market.
While not the lowest, Square’s transaction processing rates are competitive, especially considering the free POS and ecommerce tools available to its users. Its low startup costs, competitive processing rates, sleek interface, and advanced POS features also make Square our consistent pick for the best overall merchant services.
What you get with a Square free merchant account:
Fees:
- In-person transaction: 2.6% + 15 cents
- Ecommerce and invoice transactions: 2.9% + 30 cents per transaction
- Keyed-in and card-on-file transactions: 3.5% + 15 cents per transaction
- ACH Payments: 1%, minimum $1
- Afterpay: 6% + 30 cents
- Instant Transfer: Plus 1.75%
- Hardware costs: From $0 to $799
- Chargeback fee: Waived up to $250/month
- Same-day funding: Plus 1.5%
Upgrade cost:
- Paid POS plans: $29-$89
- Ecommerce tools: $29-$79
- Invoicing: $30
- Payroll: $35
- Team management: $35
- Marketing: $15 to at least $425 (email), $10 to at least $3,760 (SMS)
See our guide on Square pricing and fees.
Merchants who use Square find the system easy to use, with reasonable fees and great value. Although one downside is that Square Payments does not integrate with other merchant platforms.
- Easy-to-use interface
- Automated invoicing
- Fast set-up, no approval process
- Pricey processing fees for large-volume sales
- Reports of frozen funds
- Occasional card reader disconnections
Helcim: Best for cheap, transparent transaction fees
Pros
- Interchange-plus pricing
- Automated volume discounts
- Fee optimization features
Cons
- Use Helcim POS or custom integration
- Will require application process
- Add on fee for Amex payments
Read our full Helcim review
Overview
Who should use it:
For busy small businesses — retailers, restaurants, professional services.
Why I like Helcim:
Helcim offers interchange-plus transaction fees and automatic volume discounts for sales above $50,000/month. It also comes with free POS, inventory, invoicing, customer management, and ecommerce features to launch a multichannel business easily. The system can easily be adapted for various industries, including retail and subscription-based service businesses.
However, Helcim’s auto-applied volume discount favors businesses with larger monthly transactions, which makes it best suited for retailers. If your business mostly accepts remote payments (invoice and on websites), you can save on credit card processing fees with Helcim’s automated zero-cost processing program.
What you get with a Helcim free merchant account:
Fees:
- In-person processing fees: Interchange plus 0.15% + 6 cents to 0.4% + 8 cents
- Online and keyed-in processing fees: Interchange plus 0.15% + 15 cents to 0.50% + 25 cents
- American Express transactions: 0.10% + 10 cents
- ACH processing fees: 0.5% plus 25 cents per transaction
- Recurring billing: $0
- Monthly fees: $0
- Hardware costs: $99 per card reader
- Chargeback fee: $15, which will be refunded for every dispute you win
- Same-day funding: N/A
Upgrade cost: No paid upgrade options; Helcim’s features are available entirely at no extra monthly cost.
Online user reviews for Helcim are mixed but mostly positive since it launched new features. Merchants also like Helcim’s transparent fees and automatic discounts.
- Ability to help save on monthly credit card fees
- Free invoicing feature
- Excellent onboarding support
- Software bugs and issues
- Issues with the mobile payment app
- Limited simple scalability features
Shopify Payments: Best for ecommerce businesses
Pros
- No monthly fee to use with Shopify
- Instant access with a Shopify ecommerce account
- One-click checkout feature
Cons
- Exclusive to Shopify platform
- Ecommerce software requires monthly fee
- Some issues of account holds
Read our full Shopify Payments Review
Overview
Who should use it:
For ecommerce businesses that run on Shopify or new online businesses looking for an all-in-one platform.
Why I like Shopify Payments:
Shopify is a leading ecommerce platform, popular for its robust ecommerce ecosystem and its ability to unify ecommerce with POS. Like Square, every Shopify merchant account comes with free Shopify Payments built in, making it simple to start accepting payments right away without the need for a third-party processor.
Shopify Payments rivals PayPal in its global accessibility while keeping transaction costs in line with what Square offers. It allows businesses to create custom checkout flows, shareable payment links, QR codes, and one-click “Buy Now” buttons. Note, however, that while you can use Shopify Payments without an ecommerce plan, available features are limited, which is why I only recommend this option if you’re already using (or considering signing up) with Shopify.
Also read: Ecommerce Payment Processing: Guide for Small Businesses
What you get with a Shopify free merchant account:
Fees:
- Card-present transaction: 2.6% + 10 cents, or 5%
- Card-not-present transactions: 2.4% + 30 cents to 2.9% + 30 cents
- Currency conversion fee: 1.5% (US) and 2% (all other supported countries and regions)
- Hardware costs: $49-$349
- Chargeback fee: $15
Upgrade cost: Shopify Payment paid upgrade options are included in advanced ecommerce software plan
- POS plans:
- Starter plan: $5/month
- Retail plan: $89/month
- Ecommerce plan (with POS):
- Basic: $29/month billed annually ($39 monthly)
- Shopify: $79/month billed annually ($105 monthly)
- Advanced: $299/month billed annually ($399 monthly)
Real-life user reviews highlight a mix of strengths and frustrations for users. While many praise the platform’s ease of use and app ecosystem, others voice concerns over costs, account holds, and customer support.
- Easy-to-set-up payment processing
- App-based ecosystem
- One-click checkout
- No free plan available
- Account holds and reserves
- Customer support quality
PayPal: Best for range of payment methods and integrations
Pros
- Flexible checkouts and payment methods
- Instant access to PayPal funds
- Free invoicing and POS software
Cons
- Add-on monthly fee for virtual terminal and recurring payments
- Custom fees only for enterprise users
- Issues with customer support quality
Read our full PayPal Business review
Overview
Who should use it:
Solopreneurs, occasional/seasonal sellers, businesses that sell with PayPal customers.
Why I like PayPal:
PayPal Business offers low-cost, user-friendly payment processing for individuals and small businesses. It has a sleek mobile POS app with additional payment methods exclusive to PayPal users.
PayPal’s One Touch technology creates a faster checkout experience that leads to higher conversion rates for your online store. It offers affordable mobile and online transaction fees, plus a free mobile POS app and invoicing software. Its online payments also work with just about any website or software.
Solopreneurs, hobbyists, and occasional sellers will find its rates and peer-to-peer payment tools an ideal solution.
What you get with a PayPal free merchant account:
Fees:
- In-person processing fees: 2.29% + 9 cents
- Online processing fees: 2.99% + 49 cents
- Keyed-in processing: 3.49% + 49 cents
- E-check fees: 3.49% capped at $300
- Micropayments: 4.99% + 9 cents
- Hardware costs: PayPal POS reader $79 (first reader discounted, $29)
- Chargeback fee: $20
- Same-day funding: Plus 1.5%, instant via PayPal balance
Upgrade cost:
- Virtual terminal: $30
- Recurring billing services: $10
- Recurring payment tools: $30
- Advanced payment gateway: $2
Like Stripe, users find PayPal easy to use, particularly for online payments with a wide range of integrations. Meanwhile, the majority of customer complaints are about frozen accounts.
- Easy-to-use payment app
- Easy website integration
- Now available for in-store payments
- Frozen funds
- High currency conversion fees
- Poor customer support
Stripe: Best for custom online payment processing
Pros
- Free account with instant setup
- Works with any website or online store
- Instant payout options available
Cons
- Complex setup process
- First deposit payout takes up to 14 days
- Reports of delayed account approval
Read our full Stripe review
Overview
Who should use it:
Online businesses that require customizations, including platform language and ID verification.
Why I like Stripe:
Often compared to Square and PayPal (see our comparison of the three), Stripe offers basic and customizable online checkouts with instant setup and no application process. It can also manage subscriptions and recurring fees and store card data with a range of customization options. Detailed online features, zero startup and monthly fees, and competitive processing rates make Stripe a solid choice for ecommerce businesses and business-to-business (B2B) sellers.
I tested the system by opening a Stripe account upon hearing that it now offers basic checkout options. However, I still find the setup process too complicated for simple mom-and-pop shops or occasional sellers.
What you get with a Stripe free merchant account:
Fees:
- In-person processing fees: 2.7% + 5 cents
- Online processing fees: 2.9% + 30 cents
- Keyed-in processing fees: 3.4% + 30 cents
- ACH processing fees: 0.8% per transaction with a $5 cap
- ACH: 0.8%, $5 cap
- Invoicing: Plus 0.4%-0.5%
- Recurring Billing: Plus 0.5%-0.8%
- BNPL: 5.99% + 30 cents
- International payments: Plus 1% + 30 cents fee, 1% spread for currency conversion
- Hardware costs: From $59
- Same-day funding: Plus 1.5%
- Chargeback fee: $15
Upgrade cost:
- Custom domain: $10
- Stax Connect (for platforms): $2
- Advanced billing: 7% of total billing or $620/year
- Tax management: $90
- Advanced fraud protection: 2-7 cents/transaction
- Analytics: $10
Overall, merchants who use Stripe like the system’s ability to work with most ecommerce platforms. One interesting issue raised by a few merchants is that, despite being a payment facilitator, Stripe would take time to verify and approve a merchant account.
- Simple and easy to use once completely set up
- Ability to do test payments
- Wide range of ecommerce integrations
- Extended holding time of (and some reported canceled) payouts
- Some reports of delayed account approval
- Refunds to customers without notice
Payment Depot: Best for growing businesses
Pros
- Tailored merchant services
- Integrates with most business systems
- Compatible with popular payment gateways
Cons
- Exclusive for US merchants
- Custom but less transparent fees
- No option for same-day funding
Read our full Payment Depot review
Overview
Who should use it:
Growing businesses with regularly high volumes of credit and debit card transactions, including B2Bs.
Why I like Payment Depot:
Payment Depot is a solid alternative to Helcim if you need a platform that offers wider and faster integration options. It offers a versatile suite of merchant services solutions from its parent company, Stax, such as billing, invoicing, and reporting tools, without the steep monthly fees.
And because everything is customized, businesses only pay for features that they need as well as transactions they process. Payment Depot makes it easy for businesses to plug into the tools they already use. It works seamlessly with major ecommerce platforms like Shopify and WooCommerce, POS systems, and hardware such as Clover, as well as gateways, invoicing, and bookkeeping tools like QuickBooks.
That said, note that the service is only available for US merchants and does not support same-day funding.
What you get with a Payment Depot free merchant account:
Fees:
- In-person processing fees: Custom interchange plus
- Online processing fees: Custom interchange plus
- Keyed-in processing fees: Custom interchange plus
- ACH processing fees: Custom interchange plus
- Invoicing: Included
- Recurring Billing: Included
- Hardware costs: From $59
- Chargeback fee: $25
Upgrade cost:
- Software: $0
- Add-on tools: Not disclosed
Real-life user reviews are mixed. Though there are those who love the tailored merchant account services, some customers looking to use Clover get confused when they realize they are signing up for Payment Depot. However, I see this as more of the users’ understanding of Clover than Payment Depot’s issue.
- Customized merchant services solutions
- Authorize.net integration
- Compatibility with most payment hardware
- Add-on fees
- Operations interrupted to request for increased volume limit
- Customer support issues
Chase Payment Solutions: Best for traditional merchant account
Pros
- Direct processor
- Compatible with most card terminals
- Fast access to funds
Cons
- Contract and monthly minimums on some accounts
- Extra costs for dispute management feature
- Long-term contract for some accounts
Read our full Chase Payment Solutions review
Overview
Who should use it:
Small businesses looking for a traditional merchant account with free POS and same-day funding.
Why I like Chase Payment Solutions:
You can sign up for a free Chase merchant account with or without a Chase bank account, although having one qualifies you to use Chase payment methods that support same-day access to funds. There is no fee for opening a business checking account with Chase, and maintaining one is also free for merchants with a minimum $2,000 balance.
Apart from being one of the big names in the banking industry, Chase Payment Solutions has also acquired key subsidiaries to become one of the most versatile merchant service providers in the market. So, unlike most of its contemporaries, Chase works directly with small businesses, offering in-person, online, and mobile sales with strong banking infrastructure.
What you get with a Chase free merchant account:
Fees:
- In-person processing: 2.6% + 10 cents
- Online processing: 2.9% + 25 cents
- Keyed-in processing: 3.5% + 10 cents (requires a Chase Business Complete Account)
- ACH: 1%, capped at $25 (instant or same-day), $2.50 for first 10 and 15 cents each for additional (standard)
- Hardware costs: From $49.95 or free with a long-term contract
- Same-day funding: Free for Chase bank account holders
- Chargeback fee: From $25, depending on sales volume
Upgrade Cost:
- BigCommerce: $29.95-$299.95 per month
- FreshBooks: Contact FreshBooks
- Authorize.net: $25 per month
There are very limited online user reviews for Chase Payment Solutions. However, Chase’s proprietary virtual terminal, Orbital, received generally positive feedback about how the system is easy to use and integrates with most ecommerce platforms.
- Free and fast fund settlement
- Invoicing feature
- Easy-to-use platform
- PIN debit feature is sometimes faulty
- Slow dispute resolution
- Delay in getting a new card reader
Methodology: How I evaluated free merchant accounts
Since there are no “free” merchant accounts, my choices focused on companies that don’t lock you into a contract or have monthly fees, startup costs, and monthly minimums, which considerably narrowed my list. I then tested each platform to identify the most small business-friendly provider, evaluating their ease of account application, quality of services offered with their free plan, transaction fees, and payment processing.
I also looked at the overall transparency of each company’s pricing structure, affordability, reputation, customer reviews, and integrations. Finally, I considered the value of each provider’s paid plans and the cost of add-on features in this update.
Click through the tabs below to see our specific evaluation criteria:
30% of Overall Score
20% of Overall Score
30% of Overall Score
20% of Overall Score
*Percentages of overall score
How do I choose the best free merchant account for my business?
When evaluating free merchant account providers, it’s important to look beyond the word “free.” The real value lies in the fine print of the terms and the scalability of the services as your business grows. Here’s a helpful checklist to guide your decision:
- Startup costs: Are there any upfront fees? The best free merchant accounts won’t require you to spend anything to get started. Be cautious of hidden setup charges or mandatory hardware purchases.
- Contract commitments: Do I need to sign a long-term contract? Some “free” accounts include free or leased card readers, but they often require at least a one-year commitment. Watch out for cancellation penalties that can trap you into staying longer than you’d like.
- Incidental fees: What other fees might apply? Carefully review the provider’s terms for incidental costs such as compliance fees, inactivity charges, monthly minimums, or chargeback fees. Many modern payment service providers have eliminated these extras, but not all.
- Features in the free plan: What functionality do I get without paying? A free plan should allow you to process a reasonable volume of transactions without heavy restrictions. Double-check that the payment methods your customers prefer (credit, debit, digital wallets) are supported at no extra cost.
- Growth Potential: Can this provider scale with my business? Switching providers later can disrupt your operations. Make sure the provider offers advanced features, such as multi-location support, invoicing, or integrations with accounting tools, that you can access as your business expands.
For additional guidance on getting signed up for a merchant account, check out our detailed guide:
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Frequently asked questions (FAQs)
These are some of the most common questions we encounter about free merchant account services.
A “free merchant account” typically means zero setup fees, no monthly or cancellation fees, and no long-term contract. However, transaction processing fees (like interchange or flat‑rate fees) still apply. Providers often offset the lack of subscription fees with these transaction charges.
Top options include Square, PayPal, Stripe, Helcim, and Wave. These services usually have no startup costs or mandatory monthly fees, flexible terms, and free or low-cost tools for both online and in-person transactions.
Square is best for startups with in-person sales, PayPal suits occasional sellers, Stripe works well for online businesses, Helcim is ideal for high-volume growth, and Wave is great for freelancers needing free invoicing.
Check for hidden fees or contract penalties, confirm supported payment methods, and make sure the provider offers features that can scale with your business.
Bottom line
Although there are no true merchant services that are 100% free, many options have no monthly fees, startup fees, or processing minimums and come with competitive pay-as-you-go transaction processing fees.
Square is my top recommendation for free merchant services for small businesses because, in addition to having no application process, monthly fees, setup fees, and minimal hardware fees, it has all the basic tools that you need to run a mobile, in-store, online, or multichannel retail business. Square comes with a free, top-of-the-line mobile payments app and has other business solutions you can add for a truly affordable, all-in-one payment and POS solution.