Best Merchant Accounts for New Businesses

What to Know Before Getting Started

Your New Business Needs a Merchant Account

There’s no getting around it: your new business will need to accept credit cards. Credit card processing can be a complicated issue for first-time business owners, so many new merchants simply choose the first merchant account they read about. Unfortunately, that approach can land you with a terrible payment processor for your small business. Some credit card processors will not even accept newly formed businesses due to low sales volume or no processing history, and even if you do get approved for a new business merchant account, you may be subject to so many fees that you end up losing money on credit card payments.

Find The Best Payment Processors for Brand-New Businesses

We’ve compiled the following list to help you find the top merchant accounts for new businesses. These merchant services providers are experts at serving merchants with little or no processing history. Some offer simple solutions for single-register or seasonal locations, while others can help you hit the ground running with a full suite of payment features. Most importantly, all of them have competitive contract terms and quality customer service according to their users. Each provider has different policies and specialty areas, so be sure to contact multiple companies on this list to find an option that works best for your recently started business.

Our unbiased articles are supported in part by helping you find highly reviewed merchant accounts. You can learn more here.

Why These Merchant Account Providers


Best For $10,000+ Per Month

Active since early 2014, Fattmerchant is a merchant account provider leading the industry’s move toward flat-rate, subscription-style pricing. The company’s products and services include EMV-compatible countertop terminals, a virtual terminal, an online payment gateway, an online shopping cart, mobile phone processing, QuickBooks integration, online invoicing, and recurring billing. Fattmerchant is a great option for new businesses that expect to process more than $10,000 per month from the start.

Fattmerchant Reviews

Fattmerchant offers multiple pricing plans with different rates, but all of its plans charge a fixed monthly fee and a fixed per-transaction dollar amount above interchange. In other words, none of Fattmerchant’s plans charge a percentage-based fee on each transaction, meaning that merchants will not pay more to process a large transaction than they will a small transaction. Fattmerchant currently has an “A” rating on CPO and an “A+” rating with the Better Business Bureau.

For more information, visit the Fattmerchant website, or call (866) 397-9826.


For “High Risk” Industries

PaymentCloud is our top recommended option for new business types that might be considered high risk by conventional processors. In addition to serving conventional high risk industries like travel, adult, gun, offshore, and nutraceutical businesses, PaymentCloud is also at the forefront of approving hemp merchant accounts, kratom merchant accounts, and CBD merchant accounts for credit card processing. Besides the ability to approve high risk businesses with no previous payment history, PaymentCloud is one of the best rated processors in the merchant services industry.

About PaymentCloud

Based in Woodland Hills, California, PaymentCloud is a merchant account provider that specializes in serving high risk business types. The company’s products and services include point-of-sale solutions, mobile phone swipers, an online payment gateway and virtual terminal, EMV-compatible terminals, and merchant cash advances.

PaymentCloud provides a dedicated account rep to all new merchants for the life of the account. The company has not received any negative complaints on consumer forums, and it customizes its pricing according to each merchant’s business type and processing history. The BBB does not maintain a profile for PaymentCloud at this time, but CPO gives the company an “A.”

For more information, visit the PaymentCloud website or call (888) 506-7859.


Best Low-Volume Option

Based in Calgary, Alberta, Helcim has been providing traditional credit card processing, mobile payment solutions, virtual terminals, and online payment gateways since 2009. The company is rare among merchant services providers in that it fully discloses its pricing on its website for anyone to view. Helcim uses interchange-plus pricing, which adds a fixed markup on top of wholesale rates for optimum transparency. Helcim is an optimal merchant account provider for new merchants processing less than $10,000 per month.

Helcim Reviews

Helcim does not charge monthly minimum fees, statement fees, application fees, or PCI compliance fees. The company offers month-to-month contracts and does not charge early termination fees. Helcim offers 24/7 support for merchants and has numerous positive testimonials across the internet, including in the comment section of its “A” review on CPO. Helcim also maintains an “A+” rating with the BBB.

For more information, see the Helcim Website.

Other Merchant Account Options

The providers in this section may not have been researched as thoroughly or may lack a quality that prevented them from being listed above. We have listed them here to provide a broader view of potential merchant account options. Are you a decision maker with your company and believe that you should be listed below? Tell us here.


Best Online Store Option

Shopify is a well-known e-commerce platform based in Ottawa, Ontario. The company’s payment processing platform, Shopify Payments, is powered by Stripe and functions as the preferred payment option provided by the company. In addition to online credit card acceptance, Shopify provides completely customizable store templates, a secure, on-site shopping cart, integration with over 70 different payment gateways, unlimited hosting and bandwidth, online marketing tools, and email support. Shopify also provides point-of-sale (POS) equipment for merchants with physical locations.

Shopify Pricing

Shopify offers different service packages at the following pricing tiers: $14/month (Starter), $29/month (Basic), $79/month (Professional), $179/month (Unlimited), and a custom Plus plan for merchants who sell over a million dollars in merchandise per year. Shopify’s online per-transaction fees decrease with each upgraded package, starting at 2.9% plus $0.30 for the Starter package and ending with a low custom rate for the Plus plan. Merchants can integrate their existing merchant accounts with Shopify, but they will pay an additional 2% per transaction on the Basic plan and an additional 1% per transaction on the Professional plan.

Shopify Reviews currently awards Shopify an “A” rating, and the Better Business Bureau gives the company an “A+” at this time.

For more information, visit the Shopify website.


What is Square?

Square is a mobile and countertop credit card processing service created by Twitter’s Jack Dorsey. The service offers flat-rate pricing of 2.75% per transaction with month-to-month contracts and no other monthly or annual fees.

Square Support Concerns

Square is a very popular payment app for new businesses, but it has also received widespread backlash from merchants due to its customer support system. Square offers limited phone support to active users and no phone support to deactivated users. It also has developed a reputation for holding large transactions without warning. Merchants who only occasionally process small credit card transactions will not run into these problems, but busier merchants may find this frustrating. You can contact Square here.

Square Reviews

Square Market is not recommended for medium-sized merchants, large merchants, or merchants who expect rapid growth. It is a cheap, useful tool, though, for merchants who simply want to accept small transactions every so often. We currently give Square as a whole company a “D” rating, and the BBB gives Square an “A+” overall.

If your company supplies merchant accounts for first-time merchants, please let us know in the comment section below or get in touch via our contact page.

Thank you for reading my review. I hope that it has helped you with your research.

Why I'm Qualified to Write About Credit Card Processing

I'm a former credit card processing sales director who left the industry to start my own a small business. From the time that I starting working in the merchant services industry to when I left to write about it, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this insider knowledge to myself, so built this website to help small business owners research which service providers to use and how to save money on rates and fees. I've reviewed hundreds of companies, read thousands of user reviews, and learned the pricing tricks of every provider. If you have questions about credit card processing, you can find the answers here. I can help you save money with your current merchant account or help you find a new one. Message me here to get started.

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