7 Best Free Merchant Accounts for Small Businesses in 2022

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 merchant service and payment service providers with no setup fees, contracts, or monthly fees that offer more affordable alternative payment options.

The best free merchant accounts are:

This guide on free merchant accounts is geared toward new businesses and individuals and only includes options with no monthly fee. Established businesses will find lower-cost options in our guide to the cheapest credit card processing companies, many of which come with a monthly cost but lower transaction fees.

Top Free Merchant Accounts Compared

Please note that all of the providers in our list offer $0 monthly fees, startup costs, and monthly minimums and no long-term contracts.

Why is there no such thing as free credit card processing? Because card-issuing banks and card associations (like Visa) set nonnegotiable rates. Learn more about credit card processing fees.

While you may see some companies advertise “free,” “no cost,” or “zero cost” payment processing, it just means passing the costs along to customers. Read more about no cost payment processing.

Square Payments: Best Overall Free Merchant Account

Square Payments

Square logo

Overall Score: 4.51

What We Like

  • Free, instant setup
  • Accept POS, mobile, ecommerce, invoicing, and virtual terminal payments
  • Chargeback protection and no chargeback fees
  • Free POS and business management software

What’s Missing

  • ACH processing only in invoicing
  • Account stability issues
  • Limited live support

Square Payments Pricing

  • In-person transaction: 2.6% + 10 cents (lower rates available with certain hardware and software purchases)
  • Ecommerce and invoice transactions: 2.9% + 30 cents per transaction
  • Keyed-in and card-on-file transactions: 3.5% + 15 cents per transaction
  • Monthly fees: $0
  • Monthly minimums: $0
  • Hardware costs: Free magstripe card reader, extras are $10 each; chip and contactless reader available for $49. Terminals and full POS systems are available.
  • Payment funding: One to two business days, or pay 1.5% for same-day funding
  • Chargeback fee: $0

Square Payments is a free payment processing and POS solution. Unlike traditional merchant accounts that require an application and approval process, anyone can sign up for Square and receive the same processing rates. Square’s low startup costs and competitive processing rates, sleek interface, and advanced POS features make it the best free merchant account for small businesses.

While not the lowest, Square’s transaction processing rates are competitive, especially if you consider the free POS and ecommerce tools available to its users. It’s also the only provider in our list that offers free chargeback protection for up to $250 a month and zero chargeback fees. Stripe comes close but will cost you 0.4% for chargeback protection. Square and QuickBooks’ chip and tap reader are the cheapest at $49; however, Square’s card reader is more versatile with its ability to connect to a countertop setup which you won’t get from QuickBooks.

Square earned a 4.51 out of 5 in our evaluation of the best free merchant services. It got high marks because it does not have chargeback or cancellation fees, can be used to accept an array of in-person and online payments, offers many affordable hardware options, and comes with a suite of free business management tools. However, limited customer support and ACH and bank payment options and reports of account stability issues prevented Square from earning a higher score. That said, Square is also one of our top picks for best overall merchant services.

See our guide on Square pricing and fees for detailed information.

Pairing Square's tap and chip reader.

Pair Square’s Tap and Chip reader to your smartphone to take mobile payments or add a dock to connect to a Square Stand for a countertop setup. Cost: $49 (Source: Square)

Square Payments Features

  • Free POS and mobile payments app: Accept all major credit and debit cards, including contactless payments like Apple Pay and QR codes, offline mode, tipping, digital receipts, automated customer directory, and inventory tracking.
  • Free Square Online account: Create a free website for ecommerce, events, donations, online ordering, appointment booking, or a simple checkout page.
  • Free invoicing software: Create and send estimates and invoices, track payments, send reminders, and get notifications when invoices are viewed or paid. ACH payments are available through Square Invoices. Set up recurring invoices and auto-billing. Manage everything online or through Square’s dedicated invoicing app.
  • Free business management tools: View sales reports, manage customer data, track orders, and manage all sales channels (POS, mobile, online, and invoicing) in one place through your Square Dashboard.
  • Add-ons and upgrades: Industry-specific POS software, payroll processing, team management, email marketing, advanced ecommerce, loyalty programs, and gift cards are available for a fee.
  • Chargeback protection: Square has a dispute management system that notifies businesses of any chargebacks and provides space to submit any supporting documents. A hold will be placed on your account for the amount in question until the bank rules one way or the other. But, Square does not charge any additional fees.

PayPal Business: Best Free Merchant Account for Solopreneurs

PayPal Business

Paypal logo

Overall Score: 4.26

What We Like

  • Accept all payment types
  • Easy for customers and merchants to use
  • Instant PayPal deposit
  • Free invoicing and POS software
  • Supports 25 currencies

What’s Missing

  • Monthly fee required for virtual terminal and ACH processing
  • 3–5 business days for a bank deposit
  • $20 chargeback fee

PayPal Business Pricing

  • In-person processing fees: 2.29% + 9 cents
  • Online processing fees: 2.59% + 49 cents
  • Keyed-in processing: 3.49% + 49 cents
  • Monthly fees: $0
  • Monthly minimums: $0
  • Hardware costs: PayPal Zettle reader $79 (first reader discounted, $29)
  • Payment funding: Same-day PayPal funding, 3–5 business days for bank deposits
  • Chargeback fee: $20

PayPal Business is an electronic payments company that offers low-cost, user-friendly payment processing for individuals and small businesses. PayPal has a sleek mobile POS app and extremely competitive payment processing rates, with even lower rates available for nonprofit organizations. Solopreneurs, hobbyists, and occasional sellers will find its rates and peer-to-peer payment tools an ideal solution.

The provider also has One Touch checkout technology for a faster checkout experience, something you won’t find in Square. This functions similarly to Apple Pay at checkout—where customers don’t need to enter any payment or shipping information. Combined with PayPal’s wide-reaching name recognition, this technology can lead to higher conversion rates for your online store.

In our rubric, PayPal earned a 4.26 out of 5, tying with Square for transaction and budget features, but falling behind in pricing. That said, PayPal does offer 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. However, it requires a monthly subscription for virtual terminal and ACH processing, has a $20 chargeback fee, and offers limited customer support.

Completing online payments without entering credit card details each time with PayPal one touch.

With PayPal One Touch, you can complete online payments without entering your credit card details each time. (Source: PayPal)

PayPal Features

  • Free POS and mobile payments app: Accept all major credit and debit cards, contactless payments including Apple Pay, PayPal payments, QR code, invoices, create a product catalog, view sales reports, add multiple users, send digital receipts, and accept tips.
  • Online transactions: Install a free online checkout on just about any website or create a custom or branded checkout ($30 per month). Accept all major credit and debit cards, PayPal, PayPal Credit, QR code transactions, and Venmo payments.
  • Invoicing: Create and send invoices for free, accept credit and debit card payments, plus PayPal and PayPal Credit payments. Save customer information, send reminders, accept international payments, schedule recurring invoices, and accept partial payments or tips. Manage all of this online or through the PayPal Invoicing app.
  • Chargeback protection: PayPal has automated fraud detection and a seller protection program. When a customer files a chargeback, PayPal charges you a $20 fee, unless the transaction is protected by PayPal’s Seller Protection program.

Helcim: Best Free Merchant Account for Storefronts


Helcim logo

Overall Score: 4.09

What We Like

  • Interchange plus pricing
  • Free invoicing and ecommerce tools
  • Guided chargeback dispute resolution
  • No long-term contracts

What’s Missing

  • Limited integration
  • Expensive for under $5,000 volume transactions
  • Not for high-risk merchants

Helcim Pricing

  • In-person processing fees: Interchange plus 0.10% + 5 cents to 0.30% + 8 cents
  • Online and keyed-in processing fees: Interchange plus 0.20% + 10 cents to 0.50% + 25 cents
  • ACH processing fees: 0.5% + 25 cents per transaction
  • Recurring billing: $0
  • Monthly fees: $0
  • Monthly minimums: $0
  • Hardware costs: $109 per card reader
  • Payment funding: Up to 2 business days
  • Chargeback fee: $15 and will be refunded for every dispute you win

Helcim is a merchant service provider that distinguishes itself from its competitors with its built-in volume discounts and interchange plus transaction fees. It comes with free POS, inventory, invoicing, customer management, and ecommerce features. The system can easily be adapted for a wide range of industries including retail and subscription-based service businesses.

That said, we find this provider best suited for retailers. While its interchange plus pricing scheme makes per transaction cost comparatively low, Helcim’s auto applied volume discount favors businesses with larger monthly transactions. Therefore, it’s the busy brick-and-mortar retail businesses that will find the most value-for-money with Helcim’s free suite of management tools.

In our evaluation, Helcim earned an overall score of 4.09 out of 5, particularly for its free multichannel sales tools and competitive interchange pricing. It beat Chase on transaction and budget features, particularly for stored payments and business management tools. Helcim’s average transaction fees of 1.92% + 8 cents (for card-present) and 2.38% + 25 cents (for online and keyed-in) are also the lowest among the providers in our list.

On the other hand, Helcim carries the most expensive card reader and ties with Stripe for chargeback fees. The system’s limited integration and incompatibility with low-volume small businesses also contributed in keeping Helcim from receiving a better score.

Helcim's mobile card reader.

Helcim’s mobile card reader comes with a card reader dock, which can be connected to your storefront’s POS checkout setup.
(Source: Helcim)

Helcim Features

  • Free POS and mobile payments app: Helcim allows you to accept credit and debit card payments, including EMV and NFC transactions. Electronic fund transfers (EFT) or ACH payments are also available.
  • Online transactions: Use Helcim’s free online store builder to create your own hosted website or simply add a Helcim-hosted payment page on your current website.
  • Invoicing: Helcim includes a free invoicing tool to create customized invoices. Accept payments over the phone with a virtual terminal, via email or SMS with a link, or a “buy now” button. For recurring payments, automate recurring invoice creation, offer subscriptions, trials and prorated fees, and accept membership registrations with a “subscribe” button.
  • Chargeback protection: Helcim’s user dashboard includes a tab for chargebacks that displays a summary of any open dispute. This allows you to respond to the dispute immediately and use the platform to submit documents supporting your claim. Helcim reimburses users for winning a chargeback dispute.

Chase Merchant Services: Best Free Traditional Merchant Account

Chase Merchant Services

CHASE Bank Logo

Overall Score: 4.08

What We Like

  • Direct processor
  • Compatible with most credit card terminals
  • Offers free gateway integrations
  • Includes fraud protection tools
  • Same-day funding

What’s Missing

  • Complaints of overcharging and sudden account termination
  • Some accounts may require a contract and minimums
  • Limited seller protection and online dispute management feature cost extra

Chase Merchant Services Pricing

  • In-person processing: 2.6% + 10 cents
  • Keyed-in processing: 3.5% + 10 cents (requires a Chase Business Complete Account)
  • Online processing: 2.9% + 25 cents
  • Monthly fees: $0 for Chase Mobile Checkout, Stand Alone, and Virtual Terminal users
  • Monthly minimums: $0 for Chase Mobile Checkout, Stand Alone, and Virtual Terminal users
  • Chase QuickAccept (mobile): $0 with monthly minimum (requires a Chase Business Complete account).
  • Hardware costs: From $49.95 or free with a long-term contract (also compatible with most programmable credit card terminals)
  • Payment funding: Same-day and next-day funding available
  • Chargeback fee: Undisclosed

Chase Merchant Services is a big name in the banking industry, and it has also acquired key subsidiaries to become one of the most versatile merchant service providers in the market. Chase can give users faster access to their funds, especially if they have Chase Business Checking accounts. It offers both same-day and next-day funding options depending on the type of merchant account.

It also includes key POS and inventory integrations so users can run their business efficiently from a single platform even while on-the-go. The system supports in-person, online, and mobile sales, with a secure payment processing system backed by its strong banking infrastructure. It is simply one of the best choices for business owners who prefer a traditional merchant account.

In our evaluation, Chase Merchant Services earned an overall score of 4.08 out of 5, standing out for its breadth of payment options, POS integrations, and most importantly, the speed in which it makes funds available for its users. Its transaction fees are also slightly lower than Square’s (5 cents cheaper for card-not-present and online rate), and it offers free hardware if you sign up for a long-term contract.

However, while it is ahead of Helcim by a mile in the pricing and contract category, Chase fell short in transaction and budget features, particularly for charging extra to use stored-payment and other business management tools. Additionally, the need for improved seller protection tools and customer service quality prevented it from earning a higher score, and landed it behind Helcim in our rankings by a very small margin.

Showing Chase Merchant Services compatibility with most credit card payment terminals.

Chase Merchant Services is compatible with most credit card payment terminals but also offers its own hardware such as mobile card reader, standalone, and countertop POS solutions.
(Source: Chase Merchant Services)

Chase Merchant Services Features

  • Free POS and mobile payments app: Accept all major chip cards, contactless cards, PIN debit cards, and select mobile wallets like Apple Pay. Chase also allows check and remote acceptance via phone or mail, as well as tip payments, adjustments, and reporting.
  • Online transactions: Build your online store in minutes and start taking payments from your website, virtual terminal, or mobile app. You can also set up a “buy now” or “subscribe” button to accept recurring payments. Use one of Chase’s more than 140 integrations including Shopify and WooCommerce.
  • Invoicing: Create custom invoices or recurring billing. Automate invoice generation and set a schedule to send out your invoices while providing your customers with flexible payment methods.
  • Chargeback protection: Chase offers an online dispute management system for an extra fee. This allows users to immediately receive notification of chargeback disputes and promptly respond before the account is debited.

Stripe: Best Free Merchant Account for Online Businesses


Stripe logo

Overall Score: 4.06

What We Like

  • Free account with instant setup
  • Works with any website or online store
  • Low-cost ACH processing
  • Instant payout options available
  • Supports 135+ currencies

What’s Missing

  • Complex setup process
  • $15 chargeback fee
  • First deposit payout takes up to 14 days

Stripe Pricing

  • In-person processing fees: 2.7% + 5 cents
  • Online processing and keyed-in transactions: 2.9% + 30 cents
  • ACH processing fees: 0.8% per transaction with a $5 cap
  • Recurring billing: Additional 0.5% fee
  • Monthly fees: $0
  • Monthly minimums: $0
  • Hardware costs: $59 for Stripe Card Reader and BBPOS Chipper 2X BT, $249 for BBPOS Wise reader
  • Payment funding: Up to 14 business days for the first payout, after two business days for succeeding. Instant payouts are available for certain banks with 1% fee.
  • Chargeback fee: $15; can also opt for Chargeback Protection for 0.4% transaction fee

Stripe is a free payment processing system that allows businesses to create custom online checkouts with instant setup and no application process. In addition to basic checkouts, Stripe can manage subscriptions, recurring fees, and store card data. Its detailed online features, zero startup and monthly fees, and competitive processing rates make it a solid choice for ecommerce businesses.

Often compared to Square and PayPal, Square’s suite of simple online and in-person payment tools is the better choice for mom-and-pop shops or occasional sellers. Stripe is more for growing online businesses, including B2B sales, with access to software and technical resources to maximize its impressive array of free and open-source tools for creating the perfect online checkout.

In our evaluation of free merchant accounts, Stripe earned a 4.06 out of 5. It offers a robust and highly customizable set of payment solutions, security features, and 24-hour customer support. And while it’s way behind Square and PayPal in our rankings, Stripe scored better in transaction features—mainly for its affordable ACH processing tools. However, the complicated setup process, slow deposit speed, and limited business management tools prevented it from scoring higher.

Showing Stripe's mobile optimized checkout functionality.

Stripe’s mobile-optimized checkout functionality is designed for customers to have the fastest checkout experience with tools like address autocomplete, real-time card validation, and descriptive error messaging. (Source: Stripe)

Stripe Features

  • Stripe Payments: Use one of Stripe’s existing tools or create your own with Stripe’s application programming interface (API) guides and libraries. Send one-off invoices, store and save payment methods, create an embeddable checkout, and integrate with over 450 online platforms. Accept all major credit and debit cards, ACH, and bank transfers, plus accept international payments and Alipay.
  • Stripe Terminal: Accept in-person payments with Stripe Terminal APIs and software development kits (SDKs). Unlike the other solutions on our list, Stripe requires separate POS software.
  • Stripe Billing: Create subscription and invoicing solutions, add unlimited team members, and view revenue reports.
  • Customer Support: It offers 24/7 email, phone, and chat support. Stripe also has extensive support documentation and FAQs. Premium, dedicated support is also available for purchase.

QuickBooks Payments: Best Free Merchant Account for QuickBooks Users

QuickBooks Payments

QuickBooks logo

Overall Score: 3.57

What We Like

  • Flat-rate, affordable transaction fees
  • Accept in-person, online, and invoice payments
  • ACH processing
  • Stable, reliable processing
  • Low threshold to qualify for volume discounts

What’s Missing

  • Requires QuickBooks subscription
  • $25 chargeback fee
  • Limited ecommerce integrations

QuickBooks Payments Pricing

  • In-person processing: 2.4% + 25 cents*
  • Keyed-in processing: 3.4% + 25 cents*
  • Invoice processing: 2.9% + 25 cents*
  • ACH processing: 1% with a $10 cap*
  • Monthly fees: QuickBooks Online subscription required ($25–$50 per month).
  • Hardware costs: $49 ($79 with stand)
  • Payment funding: 1–2 days for card transactions, up to 7 business days for ACH. Next-day funding is available.
  • Chargeback fee: $25

*Volume discounts available for businesses processing over $7,500 monthly

QuickBooks Payments is the natural choice for individuals and small businesses already using QuickBooks as an accounting or invoicing tool. With no additional monthly fee, QuickBooks users can send invoices, accept ACH payments, take phone orders, accept payments through a mobile app, and set up recurring billing.

Most processors require a $10,000–$20,000 monthly minimum to qualify for volume discounts, but QuickBooks offers volume discounts for any small business processing over $7,500 monthly. It also offers better card-present (0.2% cheaper) and card-not-present (0.1% cheaper) transaction rates compared to our top provider, Square.

QuickBooks Payments earned a 3.57 out of 5 in our rubric. Its user-friendly software and multiple options for in-person and online payments earned it a high score. Like Square, QuickBooks requires subscription to its main product (QuickBooks Accounting), but Square offers a free subscription—while QuickBooks does not. This affected QuickBooks’ budget features scores and, along with high chargeback fees plus limited ecommerce integrations, prevented it from ranking higher in our roundup.

Processing single and invoice payments with QuickBooks.

Process single and invoice payments with QuickBooks on your mobile app or from the QuickBooks platform on your desktop. (Source: QuickBooks)

QuickBooks Payments Features

  • Mobile payments: QuickBooks’ free GoPayment POS app can be used on any iOS and Android device to accept all major credit and debit cards, contactless payments, and checks. Transactions automatically reconcile with QuickBooks accounting.
  • In-store POS: QuickBooks offers its own desktop POS software solutions, which are available for one-time purchase. It also includes a built-in payment processing system with pay-as-you-go and monthly subscription options.
  • Invoicing: Create and send customized invoices, manage billable hours, set up notifications, and automatically reconcile with QuickBooks accounting software.
  • Online and ecommerce sales: QuickBooks Payments integrates with Shopify, BigCommerce, Ultracart, and WooCommerce.
  • Business management features: Manage your business’ cash flow (including forecasting), set aside funds, use QuickBooks’ business banking tools, run basic reports, track income and expenses, and manage taxes.

Wave: Best Free Merchant Account for Invoicing for Solo Professionals


Wave Logo.

Overall Score: 3.52

What We Like

  • Free accounting and invoicing software + mobile app
  • Competitive invoice and ACH processing fees
  • Easy to use
  • Fast deposit turnaround time

What’s Missing

  • Invoice only (no options for POS, ecommerce, or other payment types)
  • Very limited live support
  • Standalone product (lacks integrations)

Wave Pricing

  • In-person processing fees: N/A
  • Credit card processing (online invoice payments): 2.9% + 30 cents; 3.4% + 30 cents for American Express cards
  • ACH processing fees: 1% with a $1 minimum
  • Monthly fees: None for accounting and invoicing. Optional payroll processing for $20–$35 per month.
  • Hardware costs: N/A
  • Payment funding: 2 business days
  • Chargeback fee: $15, refunded if the dispute is decided in your favor

Wave is a free accounting and invoicing tool for freelance workers, contractors, and small businesses. It’s different from the other options on this list because you can’t use Wave to accept payments in person or add it to an ecommerce website. However, it offers a great value for solo professionals who accept payments through invoicing. The software is completely free (unless you require payroll processing) and has no contracts or monthly minimums, and the whole setup process takes just a few minutes.

Square and Wave offer the same rates for processing invoiced payments (2.90% + 30 cents), and while Square includes a free POS solution, Wave is set apart by its free accounting tools. Like Square, it can create, customize and send invoices (even estimates) on your computer and from the mobile app, and offer a variety of payment methods—including adding a Pay Now button. However, Wave lets you track and manage your invoices with an accounts receivable system integrated with your merchant account, which you can only do with Square through an accounting integration.

All things considered, Wave earned a 3.52 out of 5—with its highest score coming from budget features. It also earned points for its free software, competitive ACH processing fees, ease of use, and transparency. However, as expected, no options for in-person and ecommerce payments and lack of integrations pulled down Wave’s overall score. Limited customer support also did not help Wave in our rankings.

Showing invoices page of wave.

Wave is best for solo professionals looking for a free software for managing invoices that also integrates with an accounts receivable solution. (Source: Wave)

Wave Features

  • Invoicing: Wave provides unlimited invoices and allows you to accept payments directly from the invoice and set up recurring billing and automated reminders. Invoices sync with its accounting software.
  • Accounting: Wave features unlimited income and expense tracking and sales tax tracking. You can also generate financial statements, view reports on overdue payments, manage cash flow, connect unlimited banks and credit cards, organize expenses and income into tax categories, and view business health from your customized dashboard.
  • Receipt scanning: Enjoy unlimited receipt scanning with Wave’s free iOS and Android mobile app, which integrates with Wave’s accounting software and works by just taking a photo of the receipt.

How We Evaluated Free Merchant Accounts

Since there are no “free” merchant accounts, we considered companies that don’t lock you into a contract or have monthly fees, startup costs, and monthly minimums. These requirements alone really narrowed our list down. From there, we evaluated merchant accounts and payment processors based on chargeback fees, transaction fees, types of payments you can accept, deposit speeds, application lengths, customer support hours, and more.

Finally, we looked at the overall transparency of each company’s pricing structure, affordability, reputation, customer reviews, and integrations. Based on this evaluation, Square received the highest rating, with a 4.51 out of 5.

Click through the tabs below to see our specific evaluation criteria:

35% of Overall Score

Of course, price is the most important factor for evaluating free merchant accounts. We only considered systems that offer a free plan or have no monthly or startup fees, don’t require a contract, and don’t have a tiered-pricing model (as these can be unpredictable and hard to budget for). From there, we awarded points to processors that don’t have expensive card readers, cancellation fees, or chargeback fees.

20% of Overall Score

We prioritized systems that process a wide variety of transaction types, with each system earning points for handling in-person/POS transactions, ecommerce checkout, invoicing, virtual terminal, automated clearing house (ACH) and e-check, and card-on-file payments. A system that can handle many different types of transactions is often the most flexible solution and is ideal for businesses on a budget.

25% of Overall Score

Points were awarded to processors with same- or next-day deposits, flexible hardware options, speedy application and sign-ups, extended customer service hours, and cloud reporting. We also awarded points to merchant accounts that come with any free software programs or business management tools, such as a POS app, invoicing capabilities, customer portals, dispute management dashboards, etc.

20% of Overall Score

Here, we rewarded systems with transparent pricing models that are easy to budget for and use with stable/reliable processing and intuitive interfaces. Because payment processing directly impacts a business’ cash flow and financial health, we also considered the overall popularity and reputation of each company. Finally, we awarded points to systems that integrate with popular small business software such as accounting tools, POS systems, and ecommerce platforms.

*Percentages of overall score

Bottom Line

Although there are no true merchant services that are 100% free, there are many options that have no monthly fees, startup fees, or processing minimums and come with competitive pay-as-you-go transaction processing fees. Many of these options even offer free POS solutions, business management tools, invoicing software, and ecommerce integrations.

Square is our top choice for free merchant accounts 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. It 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 payments and POS solution.

Visit Square

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