Home » How to Choose a Merchant Service Provider? 13 Key Evaluation Questions 

Choosing a merchant service provider is a decision that will impact your customer experience, your bottom line, and how easily your business can grow. Finding the right fit takes a bit of homework — but it’s well worth the effort.

In this article, we will show you how to find and shortlist potential providers and outline critical questions you need to ask during the evaluation process. 

Before that, let’s quickly review what a merchant service provider actually does.

What does a merchant service provider do?

A merchant service provider (MSP) is a company that helps businesses accept and process customer payments. Think of them as the middleman that connects your business to the payment networks, banks, and credit card companies.

MSPs typically offer a suite of tools and services, including:

• Merchant account: A type of bank account where customer payments are temporarily held before being deposited into your business account.
• Payment processing: Handling credit, debit, mobile wallet, and ACH transactions.
• Payment gateways: Secure online tools for accepting payments on your website or app.
• Point-of-sale (POS) systems: Hardware and software used to process payments in-store.
• Virtual terminals: For taking payments over the phone or by mail.
• Reporting and analytics: Dashboards and data to help you track sales and payment trends.
• Security and fraud tools: Encryption, tokenization, and fraud detection to keep your business and customers safe.

The right provider should align with your business model, scale with your growth, and make it easier for you to get paid.

How to choose a merchant service provider?

There are a lot of merchant service providers out there — and not all of them are a good match for your business.

Different businesses will have different priorities and expectations from their provider. 

Alongside basic payment processing, a retail store might need a full POS system with a receipt printer and cash drawer. For mobile vendors or service providers, it could be a mobile card reader and a virtual terminal. For an e-commerce business, it’s a reliable payment gateway that integrates with your shopping cart and supports recurring billing, subscriptions, and invoicing.

Here’s a step-by-step approach to help you narrow down your options and evaluate providers with confidence.

1. Define your business needs and priorities

Before you start comparing providers, take a step back and figure out what your business actually needs from a merchant service provider. This will help you avoid overpaying for features you won’t use — or missing out on ones you’ll wish you had.

Here’s what you should define up front:

• Estimated transaction volume: How many sales do you expect per month? This affects pricing and contract terms.
• Payment methods: Do you need to accept credit/debit cards, mobile wallets (like Apple Pay), ACH, MOTO, or crypto payments? Do you want to offer Text-to-Pay, Tap-to-Pay, and other modern methods?
• Recurring billing support: Do you plan to offer subscriptions or membership plans?
• Integration needs: Are you using a specific POS, e-commerce platform, accounting software, or CRM? Make sure your payment system can connect smoothly.
• International payments: Do you plan to sell globally? Not all providers support multiple currencies and international cards, and some can’t set you up with an offshore merchant account. 
• Industry-specific needs: Some industries (like CBD, travel, or adult content) are considered high-risk. You’ll need a provider that works with your business type. Here’s a guide on how to open a high-risk merchant account.
• Scalability: Will their solutions still work when you double or triple your sales volume?
• Hardware requirements: Do you need countertop terminals, mobile readers, or a full POS system?
• Custom experiences: Will you need custom checkout flows, API access, or developer tools to build something unique?

Once you’ve got these pieces figured out, you’ll be in a much better position to filter out providers that don’t meet your needs.

2. Research and shortlist potential providers

Once you’ve got a clear picture of what your business needs, it’s time to start looking for providers that can deliver.

Here’s where to start your search:

• Online directories and comparison sites: These can give you a broad overview of what’s out there. However, these usually focus on big providers, which has its pros and cons.
• Industry forums and business groups: Ask peers what they’re using and if they’d recommend them.
• Google and AI tools (like ChatGPT): A quick search or chat can help you surface top providers in your niche, compare features, and even flag common complaints or red flags. It’s a good way to gather quick insights before diving deeper.

There are a lot of merchant service providers, but your goal here is to narrow it down to 3–5 strong contenders. Look for:

• Reputation and track record: How long have they been in business? Do they have solid reviews and case studies?
• Experience in your industry: Some providers specialize in retail, others in e-commerce or high-risk sectors.
• Technology and features: Do they offer what you need (based on your list from step 1)?
• Customer reviews: Pay attention to recent reviews, especially around support, hidden fees, and system reliability. We will cover the most common red flags in our “questions” section.

Once you have a shortlist, you’re ready to start comparing them more closely — and that means asking the right questions.

3. Ask the correct evaluation questions to find the best fit

Choosing a merchant service provider is not a decision you want to rush.

Don’t just rely on the sales page or pricing table. Have a list of questions ready, so you can compare providers apples-to-apples. These questions will help you understand what’s included, what’s extra, and how each provider stacks up.

We strongly recommend setting up a call or demo with each provider. It gives you a chance to ask follow-up questions, get a feel for their customer service, and clear up any confusing terms or conditions. Sometimes you’ll learn more in a 20-minute call than in a two-hour website reading session.

If you have any questions about SecureGlobalPay merchant service, don’t hesitate to jump on a call with our team!

In the next section, we’ll give you 13 essential questions to ask during the evaluation process — plus tips on what to look for in each answer.

13 questions to ask merchant credit card processors and merchant service providers

Once you’re on a call or email thread with a potential provider, these are the questions you’ll want to ask. They’ll help you spot hidden fees, understand how their system works, and figure out if they’re really built to support your business.

We recommend going through this list with each provider you’re considering. Take notes on their answers — and pay special attention to how clearly and confidently they explain things.

1. What are your fees and pricing structure?

Merchant service pricing can get confusing fast. Between flat rates, interchange-plus, tiered pricing, and hidden fees, it’s important to know exactly how much you’ll pay — and when.

You’ll want to find out the following:

• Are you on a flat-rate, interchange-plus, or tiered pricing model?
• What will be your per-transaction fees (credit, debit, Amex, etc.)?
• Are there any monthly fees, PCI compliance fees, or statement fees?
• Do they charge setup or onboarding fees? Some providers — like SecureglobalPay — waive it entirely.
• Are there additional costs for chargebacks, refunds, or international transactions?
• Is pricing negotiable as volume increases?

Tip: Request a sample monthly statement or pricing calculator to estimate your monthly costs based on your actual transaction volume. This makes it easier to compare providers side by side.

2. Is there a monthly minimum or processing quota?

Some providers require you to process a minimum amount each month — or they might charge you extra fees if you fall short. This is especially important for seasonal or new businesses that don’t have consistent volume yet.

Tip: Even if you’re confident that you’ll consistently meet your volume targets, avoid locking into quotas. Flexibility is key, especially early on.

3. What types of payment methods do you support?

Your customers expect to pay the way they want — the more payment methods you can offer, the smoother the checkout experience.

Look at your target customers. If you’re B2B, ACH might be important. If you’re selling to Gen Z, mobile wallets and flexible payment options are key. For international sales, look for support for multiple currencies and global card brands.

Ideally, your provider should support most of the existing payment options. You never know what you might want to test in the future. That’s why we do everything.

4. Do you have an integrated payment gateway?

If you’re selling online, the payment gateway is what connects your website or app to the payment processing network. Some providers bundle their own gateway with their services, while others require you to use (and pay for) a third-party solution.

What to look for:

• A built-in gateway can simplify setup, reduce integration headaches, and sometimes lower your overall costs.
• Make sure the gateway supports the features you need — saved cards, recurring billing, mobile optimization, tokenization, reporting, etc.
• If the provider requires you to use a separate gateway, confirm compatibility and ask whether you’re responsible for setting that up and maintaining it.

5. What security and fraud prevention tools are included?

Payment security isn’t optional — it protects your business from fraud, chargebacks, and data breaches. And your provider plays a huge role in how secure (or exposed) your transactions are.

A reputable provider should offer built-in tools like encryption, tokenization, PCI compliance assistance, and fraud detection filters. These features help secure cardholder data during and after the transaction, and reduce your liability.

Advanced providers may include real-time fraud scoring, AVS (Address Verification System), CVV checks, velocity filters (to detect unusual activity), and 3D Secure (for additional cardholder authentication online).

Tip: Ask how fraud settings can be adjusted. Too strict, and you’ll decline real customers. Too loose, and you’ll get hit with chargebacks. You want a solution that gives you control and visibility.

6. Do you offer chargeback tools and assistance?

Chargebacks are a reality of doing business — especially online. But how your provider helps you handle them can make a big difference in how much time (and money) you lose.

Look for a provider that gives you real-time chargeback alerts, easy access to case details, and tools to respond or dispute claims directly through their dashboard. 

You also want access to support or guidance during the dispute process. Chargeback reason codes can be confusing, and knowing how to respond correctly can mean the difference between winning and losing the case.

7. What integrations are available?

Your payment system doesn’t live in a vacuum—it needs to work with your website, accounting tools, CRM, POS, or whatever tech stack you’re already using.

Check whether the provider offers pre-built integrations with platforms you already use — like Shopify, QuickBooks, WooCommerce, Salesforce, or your POS system. If you need something more custom, ask if they offer an open API and whether developer documentation is available and well-supported.

For in-person businesses, make sure the payment system integrates with your inventory, customer loyalty, or reporting tools, not just the card reader.

8. How long does it take to receive funds?

The time it takes for your money to hit your bank account after a transaction (called the “settlement period”) can affect how you manage inventory, payroll, and expenses.

Most providers offer funding within 2-3 business days, but some have same-day or next-day deposits depending on your account type, volume, and industry. If you need it, check if faster funding is available and whether it comes with extra fees.

For high-risk industries or new businesses, some providers may take longer to settle — especially during your first few months.

9. Can your solution scale with my business?

You don’t want to outgrow your payment provider six months in. A good MSP should be able to grow with you — whether that means handling more transactions, adding new sales channels, or expanding to new markets.

What to look for:

• Flexible pricing tiers that adjust with your volume.
• Support for multiple locations, users, or business units.
• Omnichannel capabilities – one system that works both online and in person.
• Multi-merchant payment gateway (so you can route transactions to your preferred acquirer, properly scale, and handle spikes in volume accordingly).
• Access to tools like reporting dashboards, user permissions, and analytics.
• Custom integrations and open APIs for building on top of the platform.
• Multi-currency and international payment support if you plan to go global.

Ask what happens if your volume doubles. Their answer will tell you a lot about whether they’re truly set up for long-term partnerships — or just entry-level accounts.

10. What type of customer support do you offer?

When something goes wrong with payments, it can disrupt your entire operation. Quick, knowledgeable support is essential.

What to look for:

• 24/7 support (especially if you operate outside standard business hours).
• Multiple channels — phone, email, and live chat at a minimum.
• Experienced, dedicated customer reps who understand payment issues.
• Onboarding support and training to help you get started smoothly.
• A knowledge base or help center for quick DIY answers.

11. Can you provide me with POS hardware and software?

If you operate a physical location, your point-of-sale system is where the customer experience happens. Your merchant service provider should be able to support your setup with the right hardware, software, and integrations — without making it overly complicated or expensive.

Watch out for:

• Proprietary hardware that locks you into their system.
• Outdated terminals or clunky software that frustrates employees and customers.
• High upfront hardware costs or expensive leasing terms.
• Incompatibility with your current system if you already use POS software. This is especially important if you are planning to switch merchant services.
• Software updates and hardware warranties not being included in the package.

12. What kind of contracts and cancellation terms do you offer?

Some providers lock you in for years with hefty early termination fees. Understanding the fine print upfront can save you a lot of hassle later.

You’ll want:

• Flexible contracts with no long-term commitment.
• Clear cancellation policies with little or no penalty for ending service.
• Transparent terms regarding auto-renewals, rate changes, minimum commitments, and cancellation windows.

13. Do you have experience in [my industry]? 

A provider with experience in your industry will understand your unique challenges, customer expectations, risk profile, and compliance requirements. That can mean smoother onboarding, better support, and fewer surprises.

Look for:

• Providers that actively serve other businesses like yours — ask for examples or case studies.
• Knowledge of industry-specific tools or workflows (e.g., recurring billing for fitness studios, tipping options for restaurants, ticketing for events).
  An understanding of common pain points or seasonal patterns in your space
• Specialized risk and fraud tools if you’re in a high-risk category.

Tip: If you’re in a niche or regulated industry, don’t assume every provider will approve you. Ask upfront if they can actually support your business type and if they’ve done it before.

Start with SecureGlobalPay

SecureGlobalPay is a full-service merchant service provider focused on high-risk businesses. We offer everything you need to accept payments securely and efficiently.

Whether you’re just starting out or looking to switch providers, our team is here to help you find the right solution for your business needs.

👉 Get in touch with us to talk through your options, or start your online application here to get the process going in just a few minutes.