8 Best Free Merchant Accounts: Avoid High Fees in 2025

What We Look For in the Best Free Merchant Account Services

Choosing the best free merchant service or the most affordable alternative for your business can be challenging. Here are the key features I considered when vetting the processors:

• No monthly/affordable fees. To keep costs low, I looked for processors that provide affordable or no monthly fees. All my top recommendations also offer reasonable transaction fees.
• Free credit card processing programs. I included processors that offer programs like surcharging or cash discounts, allowing you to pass credit card processing fees to your customers.
• Free or low-cost POS and e-commerce features. My recommendations include free or low-cost point-of-sale (POS) systems and e-commerce solutions, giving you all the tools you need to do business without breaking the bank.
• Flexibility. I found processors offering month-to-month agreements with no cancellation fees. Some also provide customizable plans, so you only pay for the features you need.
• Fast payouts. Quick access to funds is vital for maintaining healthy cash flow. I selected processors that offer rapid payouts, either free or for a small fee.

1. Paysafe: Extremely Low Monthly and Transaction Fees

Paysafe is an excellent choice if you’re budget-conscious, as it offers extremely low monthly fees starting at $7.95 and reasonable transaction fees starting at 0.50% + $0.10. It also has a surcharge program where you can pass on transaction fees to your customers, but you’ll still have to pay a $16.00 monthly fee.

I was pleased to discover that Paysafe provides discounted access to the Authorize.net gateway and virtual terminal. Every merchant account needs a payment gateway, so it’s great to know that Paysafe gives you robust online payment solutions without incurring high costs.

When you sign up for an in-person account, Paysafe will provide you with a free mobile card reader, allowing you to accept payments on the go without incurring additional hardware costs. For added flexibility, you can also lease or purchase popular point-of-sale (POS) systems, such as Clover and Pax, to suit your business’s growing needs.

Features and Benefits

• Reliable international payment solution. Paysafe’s extensive support for over 250 payment types in more than 40 currencies and 120+ markets enables you to operate globally without the need for multiple payment processors.
• Fast payouts. Paysafe offers standard fund transfers within 1–2 business days, with the option to upgrade to guaranteed next-day funding at an additional cost.
• Paysafe Mobile Pay app. The Paysafe Mobile Pay app allows you to manually enter card information, send digital invoices, and generate receipts directly from your Android or iOS device. This functionality is particularly useful if you’re operating a mobile business or need to process payments remotely without investing in additional hardware.
• Subscription management. For small businesses that offer subscription-based services, Paysafe’s partnership with Vindicia provides tools to manage subscription billing, retain customers, and recover failed payments.

Learn more from our detailed Paysafe review.

2. PaymentCloud: Custom Pricing and Potentially Zero Monthly Fees

PaymentCloud provides customized contracts with fees that vary based on your business type, risk profile, and other individual factors. Some merchants have even successfully negotiated zero monthly fees, so I recommend reaching out to PaymentCloud’s customer support to see if you qualify for free credit card processing.

PaymentCloud offers a comprehensive range of additional benefits. It provides free hardware, wireless terminals, and mobile credit card readers for the length of your contract. If you already own compatible equipment, PaymentCloud can reprogram it at no cost.

You’ll also receive personalized support to assist with your application, achieve PCI compliance, and resolve any issues that may arise. These extras add genuine value, but please note that additional fees, such as those for electronic fund transfers and batch processing, may still apply.

Features and Benefits

• Diverse funding options. Beyond payment processing, PaymentCloud offers a range of funding solutions for small businesses, including bridge loans, merchant cash advances, and business lines of credit.
• 98% approval rate. If your business operates in a high-risk industry, securing free merchant services can be challenging. PaymentCloud boasts a 98% approval rate for such businesses, offering a viable solution where others might decline.
• Extensive software integrations. PaymentCloud supports integrations with over 100 platforms, including Shopify, HubSpot, Slack, and WordPress. This compatibility enables seamless connection with your existing tools, eliminating the need for additional software investments.
• Flexible online payment options. You can accept a wide range of payment methods through PaymentCloud, including credit and debit cards, e-checks, ACH, MOTO payments, Apple Pay, and cryptocurrencies such as Bitcoin and Ethereum.

Check out our in-depth PaymentCloud review for more info.

3. Square: Multiple Free Offerings for New Small Businesses

Square offers a free merchant account that you can set up in minutes. With no monthly fees, setup costs, or long-term contracts, it’s an ideal choice for tight budgets. You pay a predictable flat transaction fee of 2.6% + 10¢ only when you make a sale, making it easy to manage your expenses.

You get a free magstripe card reader, and additional readers are available at discounted prices as low as $10. Square also includes a free online store, allowing you to establish an e-commerce presence without additional costs.

Fast payouts are also available, with next-day deposits as the standard. For a 1.75% fee, you can access same-day or instant transfers, providing quick access to your funds when needed. While reaching Square’s customer support might be somewhat challenging, its accessible help center and seller community can quickly provide you with assistance and answers.

Features and Benefits

• Free payment gateway and virtual terminal. Receive payments through your online store, phone, and other card-not-present channels at no extra cost. You only pay when you make a sale, eliminating unnecessary expenses for your business.
• Sell online without a website. If you have only a few products and want to avoid dealing with website maintenance, Square Payment Links lets you sell through social media, email, or third-party websites.
• Generous small business loans and financing. As a Square client, you can receive financing of up to $350,000, with flexible repayment options. Square allows you to make smaller payments on slow days and larger ones when sales are strong.
• Hundreds of integrations. Square offers many third-party integrations, many of which come with free plans. You can connect Square with apps for online selling, financial management, marketing, and more, making managing and growing your business easier.

Read our expert Square review for more info.

4. Leaders Merchant Services: Low Merchant Account Fees

Leaders Merchant Services (LMS) stands out for its customizable plans, allowing you to pay only for the services you need. While it doesn’t offer free credit card processing, it charges some of the industry’s lowest monthly and transaction fees, with rates starting at around $9.00 per month and ~0.15% + $0 per transaction.

Additionally, LMS lets you negotiate your rates and offers a “Meet or Beat” guarantee, ensuring the best deal for your unique needs and budget. Its personalized approach can make it more cost-effective over time compared to “free” merchant accounts​.

LMS has faced criticism for its hidden fees and lack of transparency in the past. However, significant improvements in communication over the past few months have made it easier for merchants to calculate costs and other expenses accurately.

Features and Benefits

• Free POS system. When you sign a long-term contract, you get a point-of-sale system at no cost, helping you cut hardware costs for your business.
• Cash discount program. You can also cut your processing bill by encouraging customers to pay with cash. As part of the program, you can offer cash-paying customers a discount of up to 4% per transaction. LMS configures your equipment to automatically apply these discounts.
• Payment links. Using Authorize.net as its virtual terminal, LMS lets you generate secure payment links and embed them on various platforms, including social media and email. This makes it easy for your customers to complete transactions online in just a few clicks.
• Dedicated account manager. This direct point of contact will provide personalized support, ensuring fast and smooth onboarding and resolution of any issues that might arise.

See our Leaders Merchant Services review for more details.

5. CardX: Automated Surcharging for Zero-Cost Transactions

CardX helps small businesses minimize payment processing costs through credit card surcharging, allowing you to pass fees directly to customers. With no monthly fees and a structure designed to offset transaction costs, CardX comes remarkably close to offering a truly free merchant account.

One of my favorite aspects about CardX’s surcharging procedure is that it’s automated. CardX’s patent-pending technology automatically distinguishes between credit and debit cards, ensuring you apply surcharges only where permitted. This way, you comply with state and card network regulations without manual intervention, reducing the risk of non-compliance penalties.

Although CardX removes per-transaction fees for credit card payments, it does charge monthly fees – $35 for the POS terminal and $29 for the virtual terminal or CardX Portal. Also, you’ll pay a small per-transaction fee (1% + 25¢) when customers use a debit card. The good news is that CardX is highly transparent about its pricing, so you won’t encounter unexpected charges.

Features and Benefits

• Free signage. To maintain transparency with customers, CardX provides compliant signage that clearly indicates the credit card surcharge. This ensures customers are informed at the point of sale, fostering trust and meeting disclosure requirements.
• Streamlined sign-up process. CardX offers a straightforward application process that requires only a copy of your driver’s license. Approval typically takes 2-3 business days, allowing you to start accepting payments promptly.
• Consolidated payments. CardX processes the purchase amount and any applicable surcharge as a single transaction, displaying them as one line item on the customer’s credit card statement. This simplifies accounting and ensures clarity for both you and your customers.
• Advanced analytics and reporting. Through the CardX Portal, you can access detailed reports on sales and deposits, segmented by time periods and payment methods. The data provides valuable insights into your business performance and supports informed strategic decision-making.

Our comprehensive CardX review has more information.

6. Payment Depot: Best for Small Businesses Anticipating Growth

Payment Depot offers a versatile pricing structure that can meet your needs at any stage of growth. You can get free merchant services with its interchange-plus pricing. This plan comes with no monthly fees and competitive transaction fees of 0.2%-1.95%.

Once you start processing $8,000+ monthly, you can transition to Payment Depot’s subscription model, which typically has lower transaction fees but higher-than-usual monthly fees. However, note that Payment Depot’s business model and pricing structure may not be the best for high-risk businesses. Also, its hardware costs can be unpredictable, as equipment is typically priced on a quote basis.

Additionally, Payment Depot offers a surcharging program for $49 per month, allowing you to pass credit card transaction fees to your customers. It charges 3.5% for credit cards and gives you a 1.5% rebate for debit cards, effectively lowering the surcharge. Under this program, you receive a free Smart Terminal that distinguishes between credit and debit cards and prints receipts showing the surcharge, ensuring transparent transactions.

Features and Benefits

• Discounted payment gateway and virtual terminal. Payment Depot offers access to Authorize.net at a reduced rate. This ensures secure and efficient card-not-present transaction processing for a fraction of the cost.
• Shopping cart solutions. With Payment Depot, you can choose between pre-built or custom shopping cart solutions. This flexibility allows you to integrate the right shopping cart for your e-commerce needs.
• Next-day payouts. Payment Depot provides next-day payouts, which can significantly improve your cash flow.
• No long-term contracts. Payment Depot’s services don’t require long-term contracts, offering you the flexibility and peace of mind to use its services without being locked into a lengthy commitment.

Read our in-depth Payment Depot review for more details.

7. Chase Payment Solutions: Fastest Payouts

You can get started with a free merchant account at Chase Payment Solutions and enjoy fast access to your funds with next-day payouts at no additional cost. It also offers same-day payouts, but only if you’re a Chase Business account holder or sell online using BigCommerce.

Chase charges flat transaction fees, typically ranging between 2.6% + 10¢ and 3.5% + 10¢. Though it isn’t the lowest, Chase’s predictable and transparent pricing model is ideal if you can’t afford unplanned expenses.

Backed by Chase, one of the largest banks, Chase Payment Solutions provides various funding options, including small business loans, commercial financing, and business lines of credit. These options can help your business grow without substantial upfront capital.

Features and Benefits

• Access Authorize.net for less. You can integrate Authorize.net at a significantly lower cost than the regular price to process all types of card-not-present transactions affordably.
• Free business intelligence platform. Chase Customer Insights provides in-depth analytics to understand your customers and improve marketing strategies. You can access robust customer insights, smart peer benchmarking, and various reports for free.
• Industry-specific integrations. You can easily integrate tools like Agree, Fiskl, Fusebill, PayRent, and other industry-specific solutions to streamline your operations.
• Business banking offers. Chase offers cash back, bonus points, and special deals to boost your business’s financial health and save money.

Check out our expert Chase Payment Solutions review for more features.

8. Helcim: Best Free Merchant Account for E-Commerce

At Helcim, you can get free credit card processing and competitive transaction fees starting at 0.30% + 8¢ (in-person). Helcim offers volume discounts, meaning you pay less as you process more transactions. With the Helcim Fee Saver, you can pass on credit card processing fees to your customers.

You can set up a free e-commerce store with an online checkout system or use HelcimPay.js to embed payment functionality into an existing website. This flexibility allows you to manage inventory, configure shipping, and enable discounts without technical expertise.

While Helcim excels in e-commerce support, its small hardware selection and incompatibility with third-party POS devices or software can be limiting for some businesses. However, the absence of monthly fees and an extensive suite of (free) online tools make it a strong contender if you’re an online-first, budget-conscious entrepreneur.

Features and Benefits

• Business tools. Helcim offers a suite of business tools, including a customer manager, inventory management, and a secure card vault. These tools help you manage your operations efficiently without additional costs.
• Free virtual terminal. Helcim’s virtual terminal lets you process payments online without monthly costs. You only cover transaction fees when you make a sale.
• Invoice generator. You can generate and send professional invoices quickly and at no extra charge, streamlining your billing process and ensuring you get paid on time.
• Subscription manager. Helcim’s free subscription manager lets you effortlessly set up and manage recurring payments for your subscription service.

See our expert Helcim review for more details.

Other Notable Free Merchant Services

9. PayPal

PayPal offers a straightforward setup with no monthly fees, making it ideal if you need to start accepting payments quickly. It supports various payment methods, including credit cards and PayPal Credit, and integrates seamlessly with many e-commerce platforms.

However, PayPal operates as a payment aggregator rather than providing individual merchant accounts. This means your PayPal account is part of a shared pool, which can lead to sudden holds or freezes, especially if your business experiences unusual sales patterns. Plus, PayPal’s transaction fees are relatively high, with standard rates at 1.9% + 10¢ – 3.49% + 0.49¢ (depending on payment method) per transaction.

10. Stripe

Stripe is a leading payment processor for online businesses, offering a free merchant account with no setup or monthly fees. Stripe supports over 135 currencies and integrates seamlessly with platforms like Shopify, Wix, and Squarespace. With developer-friendly APIs, you can customize checkout flows, manage subscriptions, and access advanced reporting tools.

That said, Stripe’s setup process can be complex, especially if you don’t have technical expertise. Integrating Stripe’s services often requires coding knowledge or hiring a developer, which may not be ideal for small businesses or individuals seeking a straightforward solution.

11. Wave

Wave is a free accounting and invoicing platform designed for freelancers and small service-based businesses. It lets you create and send branded invoices, accept online payments, and manage bookkeeping – all without monthly fees.

If you rely on invoicing rather than POS or e-commerce transactions, Wave offers a streamlined solution with integrated financial tools. However, Wave’s payment capabilities are limited to invoice-based transactions. It doesn’t support in-person payments or integrate with e-commerce platforms, and customer support is restricted to email requests with no live assistance.

Choose the Best Free Merchant Account for Your Business

Depending on your business, a free merchant account might benefit you. However, paying a low monthly fee for more features and favorable transaction fees can be a more cost-effective solution. Evaluating your business needs will help you make the best choice.

Paysafe is ideal for budget-conscious merchants looking for a scalable, international solution. With low monthly and transaction fees, discounted gateway access, free hardware, and support for 250+ payment types, it’s a cost-effective option for small businesses.

If you run a high-risk business, go with PaymentCloud. It boasts a 98% approval rate and offers customized plans with the possibility to avoid monthly fees. It also includes a lot of complementary features that other merchant providers offer as premium, including free hardware and personalized support.

For small businesses just starting out, Square offers a free merchant account with no monthly fees, no long-term contracts, and a simple flat-rate pricing structure. Additionally, you’ll receive a free card reader and next-day deposits as standard.

FAQ

Which merchant account is free?

There’s no such thing as 100% free credit card processing. That said, some processors offer quick setups with minimal cost and low transaction fees. CardX provides a nearly 100% free merchant account. It charges no monthly fees and allows you to pass credit card processing costs directly to your customers.

What are the best free merchant accounts for small businesses?

Paysafe is one of the best free merchant accounts for small businesses. It’s not entirely free, but its monthly and transaction costs are some of the lowest you’ll ever see. PaymentCloud is another good option, as it offers custom pricing based on your business type and allows you to negotiate a no-monthly-cost deal.

How do I create a free merchant account?

To create a free merchant account, sign up with a payment processor like Square, which lets you accept payments without setup or monthly fees. Provide your business details, verify your identity, and link a bank account. Once approved, you can start accepting payments online or in person.

Is PayPal considered a merchant account?

No, PayPal is a payment aggregator, not a traditional merchant account. It groups your transactions with others under a shared merchant ID, which can lead to account freezes or fund holds without notice.

What’s the difference between a traditional and a free merchant account?

A traditional merchant account allows you to accept card payments with lower transaction fees, but comes with setup costs, monthly fees, and longer approval times. A free merchant account has no monthly fees or setup costs, but charges higher per-transaction fees and may offer less stability.

Before deciding whether to choose a free or traditional merchant account, consider comparing the pros and cons of the best credit card processing services in 2025.