8 Best Free Merchant Accounts: Avoid High Fees in 2024
Finding a free merchant account can appear to be the best way to save money for your small business. However, some “free” accounts often come with limitations that may end up costing you more in the long run. Though not free, affordable merchant accounts can offer better value through low transaction fees, cash discounts, and surcharging.
Considering your monthly card volume, average transaction size, and other factors, a low-cost merchant account can save you more than simply avoiding a monthly fee. It’s crucial to weigh the benefits and drawbacks of free versus the best value.
I evaluated numerous services and identified the best free merchant account providers, as well as options offering significant value for minimal fees. In addition to free services, I focused on affordability, payout speed, and cost-saving features like zero-cost processing programs.
Overall, Square emerged as the top choice for a free merchant account. It provides a free plan, fast payouts, and predictable transaction fees, among other benefits. Check out Square or continue reading to explore other free (or nearly free) options that could better suit your needs.
Short on Time? These Are the Best Free Merchant Account Providers in 2024
- Square – No monthly fees, free e-commerce features, and predictable transaction fees.
- Payment Depot – Affordable interchange-plus rates with no monthly fees and a low-cost surcharging program.
- Leaders Merchant Services – Almost free and possibly more affordable long-term, plus a cash discount program.
What We Look For in the Best Free Merchant Account Services
Choosing the best free merchant account 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.
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 between $100 and $350,000 in financing, with flexible repayment options. Square also allows you to make smaller and larger payments on slow days 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.
| Free hardware | ✔ (mobile reader) |
| Payout time | Next business day as standard, optional same-day and instant payouts |
| Contract length | Monthly (no cancellation fees) |
| Transaction fees on cheapest plan | 2.6% + 10¢ |
| Monthly fee on cheapest plan | $0 |
Payment Depot offers a versatile pricing structure that can meet your needs at any stage of growth. You can get a free merchant account with its interchange-plus pricing. This plan comes with no monthly fees and competitive transaction fees of 0.2%-1.95%.
As your card volume grows, you can transition to a subscription model starting at $79.00 per month with very low flat transaction fees of 0% + 10¢ (in-person). These are among the lowest transaction fees I’ve seen in the industry. However, note that Payment Depot’s business model and pricing structure aren’t the best for high-risk businesses.
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.
| Free hardware | ✔ (smart terminal) |
| Payout time | 24 hours |
| Contract length | Monthly (no cancellation fees) |
| Transaction fees on cheapest plan | 0.2%-1.95% |
| Monthly fee on cheapest plan | $0 |
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 a free merchant account, it charges some of the industry’s lowest monthly fees 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 also offers cash advances and other business loans to help you grow your business or support operations in tough times. These loans can be paid back through future sales and don’t require collateral, which is ideal for businesses that struggle to access traditional financing options.
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.
| Free hardware | ✔ (with a long-term contract) |
| Payout time | 2 business days |
| Contract length | Variable (average length of 3 years) |
| Transaction fees on cheapest plan | ~0.15% + $0 |
| Monthly fee on cheapest plan | $9.00 |
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.
| Free hardware | ✘ |
| Payout time | Same day if you deposit into a Chase business account, next day if you deposit into a third-party account |
| Contract length | Monthly (no cancellation fees) or variable (cancellation fees may apply) |
| Transaction fees on cheapest plan | 2.6% + 10¢ |
| Monthly fee on cheapest plan | $0 |
Sekure Payment Experts offers a free merchant account with no monthly fees, free equipment, and fast payouts. It’s not a payment processor – it leverages an extensive partner network to ensure you get the best processing deal.
Sekure’s free hardware offer typically includes the Payanywhere contactless smart terminal with integrated business management software. As standard, it promises to release funds within the same day or the next day.
With Sekure’s Edge credit card processing program, you can offset most processing costs onto your customers for a fixed monthly fee of $39.95. You can also opt for Interchange Plus pricing with no monthly fee and average transaction fees of 2.99% + 19¢ (in-person & online). If you struggle to qualify for a traditional merchant account, Sekure may still accommodate your needs. You can opt for its Simplified Flat Rate pricing, which comes with flat but typically higher transaction fees of 3.5% + 19¢ (in-person & online).
Features and Benefits
- Free virtual terminal and discounted payment gateway. Sekure offers a no-cost virtual terminal and significant discounts on the Authorize.net payment gateway, helping you save on card-not-present processing.
- Personalized e-commerce solutions. A Sekure payment expert will develop a personalized e-commerce plan and connect you with the right e-commerce solutions from its vast partner network.
- Abundance of third-party integrations. You can also easily integrate popular e-commerce platforms like Shopify, BigCommerce, and WooCommerce, shopping carts like ZenCart and X-Cart, accounting and marketing apps, and other business and e-commerce software.
- No PCI compliance fees. You can avoid PCI fees by using the free Payanywhere equipment and qualifying for Sekure’s PCI Plus program.
Learn more from our detailed Sekure review.
| Free hardware | ✔ (of choice) |
| Payout time | Same or next-day |
| Contract length | Monthly (no cancellation fees) or 3 years (cancellation fees apply) |
| Transaction fees on cheapest plan | 2.99% + 19¢ (in-person & online) |
| Monthly fee on cheapest plan | $0 |
6. Helcim: Best Free Merchant Account for E-Commerce
At Helcim, you can get a free merchant account 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.
| Free hardware | ✘ |
| Payout time | 2–3 business days |
| Contract length | None (no cancellation fees) |
| Transaction fees on cheapest plan | 0.30% + 8¢ (in-person) |
| Monthly fee on cheapest plan | $0 |
Other Notable Free Merchant Services
7. Flagship Merchant Services
Flagship Merchant Services offers low monthly fees ranging from 1.58% + 19¢ (in person) and affordable transaction rates starting at 1.58% + 19¢ (in person), making it a budget-friendly choice. Its high-risk-friendly policies may suit you if it’s challenging to get a merchant account for your new business elsewhere.
Opening a merchant account with Flagship allows you to choose between a free Clover Mini POS and an EMV terminal, helping you further reduce initial costs. But be aware that Flagship might try to push its tiered pricing model if you’re a new business, which is less transparent than interchange-plus pricing.
8. Paysafe
Paysafe handles over 250 payment types in over 40 currencies, which is ideal for affordable cross-border payment processing. With low monthly fees starting at $7.95 and reasonable transaction fees starting at 0.50% + $0.10, it’s a great choice if you’re budget-conscious.
However, Paysafe’s pricing works best if you sell high-priced items or handle high card sales volumes. Some plans include extra expenses like batch fees, PCI compliance fees, and monthly minimums, which might not suit you if you prefer straightforward, transparent pricing.
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.
For small businesses seeking an all-in-one solution, 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.
I recommend Payment Depot if you anticipate higher card volumes in the future. You can start with a free merchant account and competitive interchange-plus transaction fees. As your business grows, you can access the lowest wholesale transaction rates for a flat monthly membership fee.
Leaders Merchant Services provides customized plans with negotiable rates, allowing you to save by paying only for the features you use. Its cash discount program and free POS with a contract further help you reduce your processing costs.
| Best Feature | Best For | Monthly fee on cheapest plan | Transaction fees on cheapest plan | ||
| Square | Free merchant account, free card reader, and next-day deposits | All types of small businesses on a budget | $0 | 2.6% + 10¢ | |
| Payment Depot | Versatile pricing including a free merchant account with an affordable interchange-plus plan | Businesses anticipating growth | $0 | 0.2%-1.95% | |
| Leaders Merchant Services | Custom plans and negotiable rates | Businesses looking for an affordable custom merchant account | $9.00 | ~0.15% + $0 | |
| Chase Payment Solutions | No monthly fees, fast payouts, and multiple business funding options | Businesses that need fast access to cash and funding | $0 | 2.6% + 10¢ | |
| Sekure Payment Experts | Free account and equipment and low-cost zero credit card processing program | Businesses that want to minimize upfront and ongoing processing costs | $0 | 2.99% + 19¢ (in-person & online) | |
| Helcim | Free merchant account and e-commerce tools | Online-first or online-exclusive businesses | $0 | 0.30% + 8¢ (in-person) |
FAQ
What is a free merchant account, and how does it work?
A free merchant account allows you to process payments without setup or monthly fees. You pay a percentage of each sale as a transaction fee. A free merchant account is ideal if you want to start accepting card payments without upfront costs.
Are there any hidden fees associated with free merchant accounts?
Free merchant accounts might have hidden fees, such as higher transaction rates or additional costs for specific features. Always review the details because some “free” services might cost you more than low-priced options. For example, Square offers a free merchant account, which can benefit some businesses, but others might find LMS’ personalized approach a more cost-effective alternative.
How can I save on payment processing fees?
You can save on processing fees by choosing a provider with lower transaction rates, like Payment Depot. Also, consider providers that offer volume discounts if you process a high volume of transactions or a free credit card processing program if you want to minimize upfront costs.
How do free merchant accounts compare to paid ones?
Free merchant accounts save you upfront costs but may have higher transaction fees and other charges. Paid accounts usually offer lower rates and additional features. Before deciding whether to choose a free or paid merchant account, consider comparing the pros and cons of the best credit card processing services in 2024.
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