2026 Best Merchant Services For Small Businesses

Much of the world has rapidly transitioned from a cash-based to a cashless society. 59% of Americans now cite payment cards as their preferred method to pay for goods, compared to 29% who prefer cash. In addition, consumers are willing to spend up to 100% more when using a credit card as opposed to cash, and only 16% of Americans always carry physical money in their wallets.

Even if only operating a physical business, accepting cash-only payments isn’t really feasible. This is compounded by the prevalence of online commerce where there is no choice but to pay virtually. The landscape is further complicated by an international market with a multitude of preferred payment methods and providers.

A merchant service provider provides the tools necessary to accept all modern forms of payment and seamlessly integrate them into your revenue stream. Whether prioritizing online or in-person sales, an MSP offers the hardware and software the modern merchant requires.

There are a few important factors to consider when choosing a merchant service provider, dependent on the size and requirements of your business. Here are some of the key considerations:

• Contract length - Some providers offer a no-commitment, transactional contract, meaning they do not tie you into any lengthy deals and provide their service on a transaction-to-transaction basis. Other companies have contracts for as long as 3 years. Longer contracts may offer better rates but they can also hinder flexibility.

• Hardware provided - If you are a purely online merchant you may not require a physical payment machine. If you offer your services in person you will likely want some form of card reader to take payments. Some providers offer these for free but that can result in less generous rates down the line. Others charge upfront but offer better rates. Which is best for you depends on your business.

• Payment processing speeds - Being a successful business in a competitive market often requires rapid access to funds. Waiting 5-7 business days for a payment to be processed is no longer sensible. Look for providers that guarantee same-day payments or similar.

• Monthly minimum transactions - Many companies will charge a penalty if you fail to pass a certain transactional threshold each month. If you are a new or small business you should look for a small minimum to avoid paying unnecessary fees.