Merchant Services Explained: Accept Payments Like a Pro
From payment processors to POS systems — a plain-English guide to accepting cards, ACH, and digital payments in your business.
Top Payment Processors Compared
Stripe
2.9% + 30¢ per transaction
Best for: Online businesses & developers
Square
2.6% + 10¢ per transaction
Best for: Retail & in-person sales
PayPal
3.49% + 49¢ per transaction
Best for: Freelancers & invoicing
Clover
2.3% + 10¢ per transaction
Best for: Restaurants & full POS
Key Terms Every Business Owner Should Know
Payment processor
The company that handles the technical side of moving money from your customer's card to your bank account (Stripe, Square, PayPal).
Merchant account
A special bank account that holds funds temporarily between a card charge and deposit into your business checking account.
POS system
Point-of-sale system — the hardware and software used to process in-person transactions (Square Terminal, Clover, Toast).
Interchange fee
The fee paid to the card-issuing bank on every transaction. This is the bulk of what processors charge you.
Chargeback
When a customer disputes a charge with their bank. You lose the sale and pay a $15–$25 chargeback fee. Prevent with clear receipts and good records.