For businesses that process less than $5,000 per month, Payment Service Providers are the best deal.
Although the cost of processing is usually non-negotiable, a PSP will generally provide the lowest cost services for low-volume business. The most well-known PSPs are Square, which invented the mobile card-processing segment in 2009, and PayPal.
Here are the features:
– Includes basic business software or hardware (such as Square's free software and reader for IOS and Android).
– Instant approval.
– Account terminations can occur for large charges. Not so with MSPs. – Funding holds are common, but not with MSPs.
– Self-service, no phone support.
– Few choices in software and hardware.
– Usually no termination fees or setup fees.
– Flat-rate pricing can be higher than an MSP as your business grows.