Merchant services: what to know

What the job involves, what changes the price, and what to ask a pro.

What merchant services is

A provider sets up the ability to accept card payments for your business, supplying terminals or online checkout, processing transactions and handling statements. Businesses need one when they start taking cards, add online sales or want to change providers. This is general information, not financial advice.

Signs you need it

  • You are opening a business and need to take card payments
  • You want to add online checkout or invoicing
  • Your processing statement is confusing and you cannot tell what you are paying for
  • Your terminal is outdated or unreliable
  • You are being asked to sign a long contract with an early termination fee
  • You need to accept payments in the field or at events

What the pro does

  • Ask how you sell, whether in person, online, by phone or on the road
  • Explain how card processing works and the types of fees in plain words
  • Review your application, business details and any required checks
  • Set up terminals, a mobile reader or online checkout and test them
  • Explain deposits, refunds, chargebacks and how to read your statement
  • Provide support and help if you need to change or close the account

What changes the price

Every job is different, so we do not publish prices. These are the things that move the quote up or down.

  • Your business type and how you take payments
  • Your volume of sales and average sale size
  • The mix of in person and online transactions
  • Equipment needed, such as terminals or readers
  • Contract terms such as length and early termination
  • Pricing structure used by the provider
  • Added services such as invoicing or recurring billing

What a written quote should spell out

  • All fee types listed, such as per transaction, monthly and statement fees
  • Equipment costs or leases and who owns the equipment
  • Contract length and cancellation terms
  • When funds are deposited
  • Chargeback handling and fees

Questions to ask before you hire

  • Can you list every fee on my statement and what triggers it?
  • Is the contract month to month, or is there an early termination charge?
  • Do I own or lease the equipment?
  • How quickly do deposits arrive?
  • How are chargebacks handled?
  • Can I see a sample statement?
  • Who do I call when my terminal stops working?

Red flags

  • Pricing that is not fully written out
  • A long contract with a hefty early termination charge hidden in the fine print
  • A lease on equipment that costs more than the equipment is worth
  • Pressure to sign immediately
  • A provider that cannot show a sample statement

What you can do yourself

You can compare providers by gathering your last few months of sales data and listing how you take payments. Read every page of a contract and ask for a fee schedule in writing. Consider simple providers that bundle fees if you are small, and have an accountant review the numbers if you are unsure.

Licenses and permits

Merchant services providers are usually not individually licensed, but they operate under payment network and banking rules, and some states register sales agents. Ask the provider who the processing bank is and check any state registration where required.

Merchant services questions

How do I know if I am paying too much?

Ask for a full fee schedule and compare statements. An accountant can help.

What is a chargeback?

A dispute filed by a cardholder that can reverse a payment. Ask how it is handled.

Can I cancel anytime?

Only if the contract allows it. Ask before signing.

Pro reviewers

Pros who offer merchant services remotely can improve this guide, like Wikipedia. We check every edit before it goes live. Every approved edit is credited in the edit history and on the pro's profile.

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How it works

  1. 1. Describe the job

    Pick the service, add your ZIP and a sentence about what is going on.

  2. 2. Pick the pros you want

    See screened pros who serve your ZIP and choose who you want to hear from.

  3. 3. They reach out

    They contact you the way you chose: phone, email or in-app messages.

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