Merchant Services for Startups: How to Get Started!

Starting a new business is exciting, but let’s be honest—it can get overwhelming quickly, especially when it comes to handling payments. In today’s digital world, customers expect flexible, fast, and secure ways to pay. That’s where merchant services come in. If you’re a startup owner wondering how to accept payments from customers—online, in person, or over the phone—this guide will help you understand how merchant services work and how to set them up the right way.

What Are Merchant Services?

Merchant services refer to the tools and systems businesses use to accept and process payments. This includes payments made by:

• Credit cards

• Debit cards

• eChecks and ACH

• Mobile wallet

• Online payment gateways

These services are essential for startups looking to grow quickly and offer customers more than just cash payments. Whether you’re selling online or from a retail store, having reliable merchant services helps you run your business smoothly.

Why Startups Need Merchant Services: –

For startups, cash flow is king. Being able to accept payments from Day 1 is key to building trust, closing sales, and generating revenue. Merchant services help you:

• Accept multiple payment types

• Reduce payment delays and manual errors

• Securely handle transactions

• Minimize the risk of fraud

• Provide a smooth customer experience

Plus, with the rise of e-commerce and mobile shopping, customers expect fast digital payment options.

How to Set Up Merchant Services for Your Startup: –

✅ 1. Evaluate Your Business Needs:

Start by identifying how and where you plan to accept payments:

1. Will you sell in a physical location or online?
2. Do you need a mobile card reader for in-person sales at events or pop-ups?
3. Are you offering subscriptions or invoicing clients?

Your answers will determine whether you need:

• A Point-of-Sale (POS) system for in-store sales

• An online payment gateway for e-commerce

• Virtual terminals for phone or manual orders

• Invoicing and recurring billing tools

✅ 2. Research the Right Provider:

Next, compare merchant service providers based on their:

• Features

• Pricing

• Industry experience

• Security measures

• Customer support

Examples of provider types:

1. Stripe or Square – Great for quick setup and eCommerce.
2. eCheckplan – Ideal for startups needing ACH, eCheck, or high-risk merchant accounts.
3. PayPal or Shopify Payments – Easy integration with online stores.

Pro Tip: Choose a provider that grows with your business. Look for options to scale or add features later, like mobile wallets, fraud protection, or real-time reporting.

✅ 3. Understand the Costs:

Merchant services aren’t free. Most providers charge:

• Transaction fees

• Monthly service or gateway fees

• Setup or termination fees (less common now)

Avoid surprises! Ask about:

• Hidden fees

• Chargeback policies

• Volume-based discounts

If your startup expects high transaction volume, look for custom pricing plans or interchange-plus pricing.

✅ 4. Set Up Your Merchant Account:

Once you’ve chosen a provider, the setup usually involves:

• Submitting your business name, EIN, and bank details

• Completing KYC (Know Your Customer) verification

• Getting approval (which can take a few hours to a few days)

Some providers offer fast onboarding for U.S.-based startups and help with business incorporation, too.

✅ 5. Install Payment Tools:

Depending on your sales model, setup might include:

• Installing a POS system at your store

• Setting up a payment gateway on your website

• Using a virtual terminal for phone payments

• Enabling invoicing features

Most providers offer setup guides, tutorials, and customer support during this stage.

✅ 6. Prioritize Payment Security:

Security is non-negotiable. Your provider must be PCI DSS compliant, which means they follow industry standards to protect cardholder data. Key security features to look for:

• Data encryption

• Tokenization (replacing sensitive info with encrypted values)

• Two-factor authentication (2FA)

• Fraud prevention tools

Trust builds loyalty. Customers are more likely to complete a purchase when they know their payment is secure.

✅ 7. Test the System and Train Your Team:

Before you go live:

• Run test transactions

• Check that payments settle in your business account

• Verify that invoicing and receipts work correctly

• Ensure mobile or card readers function smoothly

Train any team members handling transactions so they can confidently use your POS system or online dashboard.

✅ 8. Stay Flexible and Keep Adapting:

Your startup will evolve—your merchant services should too.

As you grow, consider:

• Adding support for digital wallets

• Accepting international payments

• Enabling subscriptions or recurring billing

• Integrating with your accounting tools or CRM

Bonus: Common Mistakes Startups Should Avoid

1. Choosing the cheapest provider without checking hidden fees
2. Skipping PCI compliance and putting customer data at risk
3. Not reading the contract (especially early termination terms)
4. Underestimating customer support—you’ll need it when issues arise
5. Not having a backup plan if the system goes down

Final Thoughts: –

Getting started with merchant services doesn’t have to be complicated. By understanding your needs, comparing providers, and focusing on cost and security, you’ll set your startup up for success. Whether you’re launching a new store, building an online brand, or taking payments over the phone, merchant services are the foundation of your business’s financial infrastructure.

Ready to Start Accepting Payments?

eCheckplan specializes in helping U.S. startups accept secure payments via eChecks, credit cards, ACH, and more. 📞 Call us at (800) 974-9661 | 📧 Email: support@eCheckplan.com