Best Online Merchant Accounts for Virtual Payments in 2024

Navigating the world of online merchant accounts can be overwhelming, especially with so many options touting industry-low rates. While affordability is crucial, finding a service with robust e-commerce features or integrations is also essential for new online businesses.

Many merchants offer plans for online businesses but don’t have the features required to manage one effectively, leaving you stuck in a long-term contract you can’t get out of easily. To successfully operate online, you need a secure payment gateway, integration capabilities, and chargeback and fraud support.

I tested dozens of online merchant accounts, evaluating all those features and more. Leaders Merchant Services emerged as the top choice among the merchants I tested due to its industry-low rates, negotiable pricing, and integration with Authorize.Net.

To explore other excellent merchant accounts for online businesses, keep on reading.

What We Look For in the Best Online Merchant Accounts

When evaluating the best online merchant account providers, I focused on features that directly enhance the efficiency and profitability of internet-based businesses.

• Low rates. You’ll save significantly by choosing a merchant that offers low rates and minimal markups for online transactions. In addition, make sure to avoid online merchant accounts that charge additional and hidden fees.
• Access to a payment gateway. Access to a low-cost payment gateway makes a big difference, especially for online-only businesses. To maximize your revenue, I looked for merchants offering free or discounted payment gateways.
• E-commerce integrations. You’ll want quick and easy access to your online store, especially when managing sales across multiple platforms. Whether it’s access to BigCommerce or MailChimp, consolidating your resources can help your business grow.
• Security features. Protecting your customers’ data is non-negotiable, especially when one breach can destroy the relationships you’ve built with your customers. To ensure your business is protected, I looked for PCI compliance and active fraud prevention.
• Global payment support. You’ll probably want a service that supports multiple currencies and local payment methods. This allows you to increase your revenue by enabling a wider audience to purchase your products.

1. Leaders Merchant Services: Industry-Low Rates for Online Merchants1

Leaders Merchant Services (LMS) offers industry-low rates of ~2.9% + 30¢ at $9.00/month for virtual terminal transactions, making it a cost-effective choice for new online businesses. Better yet, you can negotiate lower rates and a short-term contract, allowing you to tailor your plan to your budget and needs.

With LMS, you get access to Instant Accept, which allows you to utilize a virtual terminal within QuickBooks. In doing so, you can streamline transactions, inventory, and customer data using its seamless two-way synchronization feature. For online merchants, two-way sync is the best way to manage your business without running the risk of costly mistakes.

LMS also integrates with the reliable Authorize.Net payment gateway and virtual terminal, so you can allow customers to enter card info on your store. Authorize.net also lets businesses create digital invoices, accommodate customer preferences with international payment methods, and protect financial data with comprehensive fraud detection and monitoring services.

Features and Benefits

• 98% approval rate. LMS accepts practically everyone, including high-risk businesses, making it one of the safest bets to open an online merchant account.
• Business loans. Get quick funding without stressful deadlines or putting up collateral – all you have to do is pay back a small percentage of future sales until the loan is paid.
• Dedicated chargeback team. LMS has one of the industry’s largest chargeback and fraud prevention teams, ensuring disputes are resolved quickly and efficiently.
• Meet or beat policy. LMS aims to beat your current rates. LMS is so confident that it will give you $200 if its offer doesn’t meet or beat your online transaction fees.

Read our expert LMS review for more details.

2. Flagship Merchant Services: Cheap Payment Gateway and Quick Onboarding1

Flagship Merchant Services has competitive pricing plans with transaction fees as low as 1.98% + 0.21¢ (online). It offers discounted access to Authorize.Net, much less than what it normally costs. This makes it an affordable option for small e-commerce businesses looking to minimize costs while utilizing Authorize.net’s many benefits, including multi-factor authentication, the Customer Information Manager (CIM), and an account updater.

If you require quick access to cash, Flagship offers all of its online merchants the option to purchase same-day funding. This gives you immediate access to your cash for as little as $7.95/month (+ a small additional fee) on its tiered pricing plan. Unlike other processors that typically pay out in 2-3 business days, Flagship ensures that online merchants have the funds required to cover expenses and operate effectively.

All Flagship merchants get iAccess 3.0, a business portal that lets you view analytics and access support. You can view industry statistics, analyze customer behavior, and make data-backed decisions – making Flagship an excellent choice for online merchants in competitive industries.

Features and Benefits

• Customer incentives. Flagship lets you offer gift cards and also works with the digital loyalty program Pirq. This makes it easy for you to bring in new customers and retain the loyalty of existing ones.
• Flexible contracts. Month-to-month contracts and no cancellation fees give you peace of mind, especially if you’re a startup with limited payment processing experience.
• Easy onboarding. With Flagship, online merchants are usually approved within two business days or less. They also receive help from a representative in choosing the right services and equipment.
• Personal account manager. When you open a merchant account, you get an account manager who will outline every service at your disposal and give you personalized advice.

To find out more, check out our in-depth Flagship review.

3. Square Payments: Free Online Merchant Account & Mobile Reader1

Square Payments is an excellent choice for recently established online merchants due to its user-friendly e-commerce store builder. It allows you to integrate payments into your existing site, sell products through social media, or receive funds via email, links, buy buttons, and QR codes. Plus, Square includes its online store builder for free, allowing you to set up your online business without significant upfront costs.

Square’s proprietary gateway is ideal for online-only merchants as it supports most e-commerce platforms, like Wix, WooCommerce, and Shopify. You can also connect to third-party accounting and marketing apps such as QuickBooks and MailChimp, providing comprehensive tools to manage and grow your online business.

Square’s entry-level plan has no monthly fees – you’ll only pay 2.6% + 10¢ per transaction. In addition, Square offers three plans solely for e-commerce businesses, including features like abandoned cart recovery, customer reviews, and custom domains catering to various business needs.

Features and Benefits

• Built-in marketing. You can pay extra for Square’s email and text marketing plans. While these tools aren’t as advanced as dedicated marketing platforms, it’s a great option to consolidate the tools you use to run your business.
• Free business tools. Square offers a comprehensive dashboard for valuable customer insights, sales reporting, free scheduling and time-tracking software, and an app marketplace with free plans and trials for apps like Setmore and Wix.
• Instant payouts. If you open one of Square’s FDIC-insured checking accounts, you get instant access to your funds. You won’t be required to read any paperwork or submit to a credit check, making the process quick and easy.
• PCI compliance. Square handles all compliance, regulation, and processing matters free of charge, ensuring you meet PCI requirements.

Explore our comprehensive Square review to learn more.

4. Stax: Save up to 40% in Processing Fees With an Online Merchant Account1

Stax offers a subscription-based pricing model that can save you up to 40% in processing fees if you process more than $8,000/month. The monthly fees could be expensive for new or low-volume businesses, though. Stax’s pricing plans range from $99.00 to $199.00/month and come with transaction fees of 15¢ + interchange (online). If you process more than $250,000/year, you should contact the sales team for a custom quote.

Stax seamlessly integrates with e-commerce platforms like WooCommerce, Shopify, and Magento, making it ideal for online merchants with an existing e-commerce store. In addition, you can connect with other business tools like Slack and Microsoft Teams, ensuring flexibility and minimal disruption to your operations while you onboard.

Additionally, Stax offers several pre-built software suites for project management, marketing, and accounting purposes. If your online business requires more extensive software, Stax integrates with Zapier, granting access to hundreds of business management apps. Examples include Stripe, Wave, eBay, Patreon, Calendly, and more.

Features and Benefits

• Shopping cart tools. Using Stax’s developer tools, you can build and integrate a custom, branded shopping cart. Or, if you’d rather start selling as soon as possible, you can choose one of its pre-built cart templates.
• Payment methods. Stax accepts debit and credit card payments, ACH transfers, Google Pay, and Apple Pay.
• Same-day payouts. For an additional fee, you can get your money deposited into your merchant account on the day it was earned, unlike most payment processors, which can take 2-3 business days.
• Responsive live chat. Contact Stax’s support team outside of regular business hours, and you’ll get the answers you seek with reasonable promptness.

For more details, take a look at our extensive Stax review.

5. Payment Depot: Two Cost-Effective Pricing Models To Choose From1

Payment Depot offers several pricing models. One is a subscription plan like Stax that doesn’t mark up your rate but instead charges a low transaction fee of 0.2%-1.95%, making it highly cost-effective for smaller businesses. It also offers interchange-plus plans with rates of around 0.2%-1.95%.

When you open an online merchant account with Payment Depot, you’ll be protected by a 24/7 risk monitoring team that reduces the risk of chargebacks and fraud. Its proactive approach keeps your transactions secure by staying ahead of changes in bank policies and emerging fraud methods, providing solutions before problems occur​.

One downside is that the live chat and email support can be hard to reach. But you probably won’t have to worry: Payment Depot’s integration with major payment gateways like Authorize.Net, Stripe, and PayPal is seamless. Furthermore, you can automate workflows by connecting to QuickBooks and Sage to save a lot of time on administrative tasks​.

Features and Benefits

• Next-day deposits. Regardless of the transaction or payment method, your money will be in your account within 24 hours.
• All-in-one dashboard. Manage all your payments in one place, easily create and send branded invoices and payment links, run promotions, monitor sales performance, and key in payments.
• Free card terminals. Every merchant gets a free Dejavoo Z11 terminal, which is great if your online business also has a physical storefront. If you’re willing to negotiate, you can get multiple terminals.
• 24/7 phone support. You can contact Payment Depot’s technical support team 24/7. Its sales support is available from 8:30 a.m. to 7:30 p.m. EST and PST.

Look at our detailed Payment Depot review to find out more.

6. Chase Payment Solutions: For Online Merchants Who Need a Bank Account1

Chase Payment Solutions provides access to the Orbital Virtual Terminal, allowing online merchants to handle recurring billing, refunds, and cross-border payments. It also supports B2B payments and offers robust fraud protection and data security, making it a reliable choice for managing card-not-present transactions. This is in addition to the Authorize.Net payment gateway.

If you open a Chase business banking account, you get same-day payouts. If you can maintain a daily balance of $2,000, Chase will waive the account’s $15/month fee, making same-day funding completely free. Plus, Chase has no monthly fees and reasonable rates for online transactions (2.9% + 25¢).

Chase also integrates with specialized software for online merchants in various industries, including subscription management, rent collection, event management, and marketing. Just note that some of these aren’t included in your merchant account fees – they have their own costs.

Features and Benefits

• Easy-to-use mobile app. Using Chase’s app, you can accept payments, manage disputes, create and send payment links, approve payments, and manage your bank accounts.
• Developer toolkit. You get a full library of SDKs and APIs to help you or your team’s expert develop custom software or web apps that integrate with Chase’s payment technology. Tools to test your applications in real time are also included.
• Invoicing tools. If you have a Chase banking account, you can use dedicated invoicing tools to create and send invoices through secure links or email.
• Business analytics software. Track your daily, weekly, and monthly sales, review trends over time, see when your customers are most likely to shop and compare your sales with your competitors.

For more information, check out our in-depth Chase review.

These Are the Best Online Merchant Accounts for E-Commerce Businesses in 2024

Every online merchant has different needs, so the best choice is the one that works best for your business.

If you want to minimize costs without sacrificing service, consider Leaders Merchant Services1. It offers industry-low and negotiable fees, custom plans, and basic e-commerce features, perfect for new and growing online businesses.

Or, if you’re looking for discounted access to payment gateways like Authorize.Net, go with Flagship Merchant Services1. You’ll get Authorize.Net at a discounted price, same-day funding as standard, and a helpful business management portal.

For simplicity and ease of use, try Square Payments1. It offers flat-rate pricing, no hidden fees, and strong features for websites.

FAQ

What is an online merchant account?

An online merchant account allows you to accept electronic payments from customers, acting as an intermediary between your business’ bank account and the payment gateway. Without it, you’d be unable to process transactions. The things you should look for when evaluating merchant account providers include transaction fees, security, and integrations with other services.

What is the best internet merchant account?

Leaders Merchant Services is the best online merchant account for new online merchants due to its industry-low rates, negotiable pricing, flexible contracts, and QuickBooks integration. For discounted access to Authorize.Net, check out Flagship Merchant Services.

What is the best platform to accept online credit card payments?

Square is a great choice for accepting online credit card payments, allowing you to add payment links, buy buttons, and QR codes to your existing website. Plus, it offers end-to-end encryption and PCI compliance at no extra cost, making it a decent option for small online merchant accounts with limited capital.

How to choose a merchant account?

To choose a merchant account, start by comparing fees, security features, third-party integrations, and customer support. If you’re not sure where to start, check out our list of the top credit card processors in 2024 to find a provider that meets your needs.