Cream of the Crop: Compare internet merchant account providers

Before we compare internet merchant account providers (retail, MOTO and online) and start shopping around for an inexpensive merchant account, you may want to read the expanded introduction to this year's list.

Three critical points:

If you are just testing the waters online or just getting started and expect to have low volume while you ramp up (less than 50 transactions a month), give serious consideration to a third-party processor. No need to compare internet merchant account providers. There are no minimums, no credit checks, no start-up fees and no contracts to sign. Paypal.com is the established leader in the field. If you are an offline merchant looking to establish a presence online, this is the sensible starting place.
I always recommend a merchant who is serious about getting a quality merchant account start with a local bank, preferable one where there is a prior relationship. They seldom offer the best rates, but they have something even the best online merchant account providers don't: Face-to-face customer service.
All the services listed here allow you to apply online for free, a critical factor if you are going to properly shop around and compare internet merchant account providers. To find the best online merchant account provider for you, apply to all of them, then compare the offers, test their customer service and do some critical thinking. Do not sign up with the first service you apply for. Be a smart shopper.

I have ensured that every provider on this list offers the following:
(and any merchant account you apply for should as well)

Virtual terminal (mail order/telephone order)
P.O.S. credit card swiper equipment (retail)
Real-time processing (online)
Shopping cart option (online)
Integrated payment gateway
Support for recurring billing
Address verification and CVV2
Toll-free 24-hour support
Acceptance of Visa, Mastercard, Discover and American Express

With that in mind, let's compare internet merchant account providers.

Top recommendations

Merchant Accounts Express

Cost: 2.25% discount rate (for internet/mail/phone. 1.85% retail), $0.25 transaction fee, $10 statement fee, $17 gateway fee
Pros: Over 10 years on the web and extremely well regarded in the industry. Good customer service. Low price guarantee. Great website.
Bottom Line: Solid, reliable service at competitive prices.

Yahoo Small Business

Cost: discount rate varies around 1.0%, along with a monthly fee. Set up to use Paypal to avoid more monthly fees.
Pros: All-in-one online storefront builder. Good support and a large database of other users.
Bottom Line: Everything you need to build an online store (but don't fool yourself.

I can only compare internet merchant account services I have researched. You have to do some digging yourself and find the best online merchant account provider for your business.

If you haven't already, use the search box below to scour the web for more merchant account providers.