A Comparison Between Merchant One and Host Merchant Services

Are you looking for efficient payment processing tailored to your business’s needs? Merchant One and Host Merchant Services are two of the best payment processing companies that offer a range of solutions for small and medium businesses. In this comprehensive review of Merchant One vs Host Merchant Services, we will analyze their products, services, and features in-depth and compare them to select the right option for you.

While both companies offer great products and services with neck-to-neck competition, their approach to transparency and customer flexibility differs.

About Merchant One

Based in Miami Beach, Merchant One is a payment processing solution targeting retail, restaurant, eCommerce, hospitality, and B2B industries. Established in 2000, it is a registered independent sales organization (ISO) of Wells Fargo, N.A. The company offers a wide range of offerings to facilitate payments securely for small and medium-sized businesses. Solutions include credit card payment processing, point-of-sale systems, online payment gateways, and mobile payment processing.

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As of January 2025, Merchant One is a subsidiary of Fiserv, a global payment leader in the FinTech industry with brands like Clover, First Data, and CardConnect under its portfolio. Fiserv acquired Merchant One in December 2022 to have a stronghold of direct merchant acquisition and payment processing capabilities. All while creating a strong network for its Clover product line.

As a result, Merchant One today is known for its fast and easy setup process and high approval rate (including businesses with poor credit) at a staggering 98%. Additionally, the equipment that the company offers is free of cost for the new accounts, which also comes with 24/7 customer support so that your business can operate in rush hours without worry of outage.

Shifting our focus to security, Merchant One is PCI-compliant and offers advanced fraud detection and data security features on gateways (with an integration option to over 175 shopping carts). Merchant One is reliable for those seeking pragmatic and all-purpose fast solutions.

Pros and Cons of Merchant One

About Host Merchant Services

Established in 2010 and headquartered in Newark, Delaware, Host Merchant Services is a registered ISO with Visa (US), MasterCard (international), and bank sponsorship backed by Wells Fargo Bank, Walnut Creek, CA. Host Merchant Services is a payment processing company targeting various industries, including retail, eCommerce, restaurants, hospitality, medical, and fitness. The company also extends its services to “high-risk” industry categories, including guns and firearms, adult entertainment, CBD and cannabis, online gaming, nutraceuticals and supplements, subscription-based services, etc.

Host Merchant Services offers a catalog of products and services, including credit card and electronic payment processing, mobile payments, POS systems, payment gateway, and more. In an industry known for “hidden-everything,” Host Merchant Services is praised by industry leaders and critics for its transparent interchange plus pricing model. This model benefits businesses looking for clarity in their transaction costs. The company also offers 24/7 support, so merchants working round the clock may not need to worry about interruptions in the operations. Host Merchant Services is PCI-compliant and, just like Merchant One, offers free EMV-compliant equipment to eligible merchants.

Host Merchant Services stands out from the competition because it offers the same quality of services across high-risk and general industries without excessively high charges and long-term contracts. Host Merchant Services does not force businesses to be locked in for a long ride. Host Merchant Services charges $0 termination fees if you don’t want to continue.

Host Merchant Services is for those businesses looking for transparency and flexibility when signing the contract. This reason positions Host Merchant Services as more reliable and customer-centric than Merchant One.

Pros and Cons of Host Merchant Services

Features of Merchant One

Merchant One provides a comprehensive suite of features to facilitate efficient and secure payment processing for businesses of varying sizes. Here’s a detailed overview of their key features:

• Virtual Terminal: Merchant One offers an intuitive virtual terminal that enables businesses to enter customer transaction data directly through a web browser. This is particularly useful for companies that handle credit card payments over the phone or need to manage automated clearing house (ACH) payments. The virtual terminal also includes a “customer vault” for securely storing customer information, simplifying the recurring payment process​.
• Reporting: Merchant One provides robust reporting capabilities, generating detailed summaries of sales data, transactions, and more. These reports offer insights into business operations, helping owners make informed decisions. However, it’s noted that the service does not include graph-based data visualization, which might be a limitation for some users who prefer graphical representations of their data​.
• E-commerce Tools: The platform supports integration with over 175 online shopping carts, offering considerable flexibility in choosing e-commerce solutions. Merchant One also provides tools for creating hosted checkout pages, “buy now” buttons, and an open API allowing developers to build custom solutions. Additionally, the system includes advanced e-commerce security features like credit card fraud detection and payer authentication​.
• Integrations: Merchant One boasts an integrations portal that supports over 300 applications, facilitating seamless connectivity with popular accounting, invoicing, and CRM software such as QuickBooks, Salesforce, Zoho, and HubSpot. This extensive integration capability helps streamline various business processes, enhancing overall efficiency​.
• Hardware Options: Unlike some competitors, Merchant One does not manufacture hardware but offers a range of POS devices as an authorized reseller. Available options include devices from Pax, Clover, and Verifone. The company provides some terminals for free under specific contract terms, though conditions apply​.
• Payouts: Merchant One’s payouts are typically processed within two to three business days, with an option for next-day funding available for a fee. This quick processing time aims to alleviate any potential cash flow issues​.
• Customer Support and Setup: Merchant One offers personalized customer support and straightforward account setup processes. The service includes training on using their systems, particularly the Clover POS products, to ensure businesses can start processing payments without delays​.

Features of Host Merchant Services

Host Merchant Services delivers a wide range of features to support businesses of all sizes and industries. Here’s a closer look at what they offer:

• Payment Processing: Host Merchant Services simplifies payment processing with flexible, no-commitment solutions. Businesses can accept payments via debit and credit cards, EMV chip cards, and NFC technologies like Google Pay and Apple Pay. With support for over 100 payment gateways, virtual terminals, and online shopping carts, Host Merchant Services ensures smooth transactions for both in-store and online operations. Their services meet EMV and PCI compliance standards, providing robust security for every transaction.
• Advanced POS Systems: Host Merchant Services partners with top POS providers such as Clover, Vital, Bonsai, and SwipeSimple to deliver systems that cater to various business needs. There’s a POS solution, whether you’re looking for essential transaction tools or advanced inventory management features. These systems are designed to streamline operations and enhance your business’s efficiency.
• Free Business Website and Email: Host Merchant Services offers new customers free website and business email accounts. The website includes customizable templates, making it simple for any business to build a professional online presence. Whether a beginner or a tech-savvy pro, the platform lets you easily add custom JavaScript, HTML, or CSS for a more personalized touch.
• Flexible Merchant Accounts: Host Merchant Services provides traditional merchant accounts with transparent interchange-plus pricing, suitable for online and physical businesses. They also offer tailored solutions for nonprofits through the HMS Gives program and provide specialized pricing for companies with high or low average transaction sizes. Even high-risk businesses are supported, ensuring broad access to merchant services.
• Efficient ACH Processing: For businesses that rely on Automated Clearing House (ACH) payments, Host Merchant Services delivers seamless ACH processing services. This includes efficiently handling electronic payments and direct deposits, making managing your financial transactions easier.
• Merchant Cash Advances: Need funds fast? Host Merchant Services provides merchant cash advances of up to $500,000, with funding available in just 3–5 days. For more minor, urgent needs, they offer fast cash advances of up to $20,000, which can be deposited into your account within 48 hours—perfect for managing growth or handling unexpected expenses.
• Modern Credit Card Terminals: Host Merchant Services supplies a wide range of cutting-edge credit card terminals for retail businesses, including innovative models from trusted brands like Clover, Dejavoo, PAX, Valor PayTech, Ingenico, and Verifone. These terminals support EMV chip cards; most offer NFC payment compatibility for services like Apple Pay and Google Pay. Merchants processing over $20,000 monthly may qualify for at least one free EMV terminal, making it easier to upgrade your setup.
• Mobile Processing: Host Merchant Services offers mobile POS solutions through SwipeSimple and Vital for businesses on the go. These card readers connect directly to mobile devices and work via their dedicated apps. Wireless terminals like the PAX A80 and PAX A920 offer complete functionality without requiring a separate smartphone or tablet.
• Flexible Payment Gateways: HMS Pay, the company’s proprietary payment gateway, has features like recurring billing, ACH services, wireless processing, check imaging, multi-location networking, and batch processing. Host Merchant Services also integrate seamlessly with popular gateways like NMI and Authorize.Net, offering flexibility to fit your existing systems.
• Virtual Terminals for Manual Transactions: HMS Pay includes a virtual terminal for easy manual entry of credit card details for businesses handling phone or mail transactions. This feature is also built into all supported third-party gateways, streamlining the processing of card-not-present payments.
• Seamless Shopping Cart Integration: HMS Pay and its supported gateways work effortlessly with major e-commerce platforms like WooCommerce, Magento, and BigCommerce. This ensures smooth integration with online shopping carts, creating a better customer checkout experience and driving more sales.
• Data Security Measure: With Host Merchant Services, security is a top priority. They partner with Trustwave to provide PCI compliance services, including $100,000 in insurance for data breaches with every merchant account. While opting out is possible, keeping this coverage is a smart way to protect your business from potential security risks and liabilities.

Merchant One Vs Host Merchant Services Pricing

Host Merchant Services offers a transparent and competitive pricing structure that benefits high-risk businesses. They don’t charge application or setup fees; they might even provide free equipment, keeping initial costs low for merchants. Host Merchant Services have variable transaction fees depending on the business type: restaurants pay 0.20% plus $0.09 per transaction, retail stores pay 0.25% plus $0.10, and e-commerce platforms are charged 0.35% plus $0.10 per transaction. These rates are tailored to reflect each sector’s risk and transaction volume.

Besides, Host Merchant Services charges a monthly fee of $14.99 and an annual fee of $24 for 1099 reporting. They also offer a cash discount program that allows businesses processing over $5,000 monthly to avoid additional costs, while those under this threshold pay $20 monthly.

Host Merchant Services includes optional and additional fees such as a $5 monthly gateway fee, $0.75 per voice authorization, $0.20 for batch processing, and fees for chargebacks and retrievals. They encourage potential clients to reach out for a free quote and promise competitive rates by offering a $50 gift card if they can’t match or beat a competitor’s price.

On the other hand, Merchant One provides a more personalized pricing approach, giving customized quotes based on each business’s specific needs. This approach lacks the upfront transparency seen with Host Merchant Services but can benefit certain companies. Their transaction fees vary by the method and volume of transactions, with in-person transactions costing between 0.29% and 1.55% per transaction and keyed-in transactions ranging from 0.29% to 1.99%. The base monthly fee with Merchant One is $13.95, including the PCI compliance fee, and is comparatively lower than many of its competitors.

Merchant One also offers flexibility with its equipment and gateway fees, providing free options and charging only $5 monthly for specific terminal use. However, depending on the equipment chosen, they require a three-year contract commitment with varying early termination fees. Additionally, they ensure PCI compliance through a third-party portal, with a noncompliance fee kicking in after a two-month grace period.

Host Merchant Services is well-suited for businesses looking for straightforward, predictable pricing, especially those with high transaction volumes. Merchant One, however, may appeal more to those who need customized solutions and prefer lower base fees despite the potential for less transparency in pricing.

Merchant One vs. Host Merchant Services Customer Support

Merchant One offers comprehensive customer support compared to many competitors, providing 24/7 phone support and additional channels like email and text-based support. However, it lacks some options available with others, such as live chat support, a blog, or a knowledge base​.

Host Merchant Services, on the other hand, also provides round-the-clock phone call support. Notably, Host Merchant Services features live chat support during regular business hours, which Merchant One does not offer. After hours, Host Merchant Services may refer support to third-party or TSYS tech support linked with your account. Nevertheless, Host Merchant Services reviews and follows up on all these interactions personally, ensuring continuous support​.

Overall, Host Merchant Services is better if you prioritize live chat options and direct follow-up on after-hours inquiries. Merchant One is excellent for those looking for constant phone availability, while Host Merchant Services may appeal more to those who appreciate live chat support and detailed follow-up.

Conclusion

While Merchant One and Host Merchant Services offer valuable payment processing solutions, Host Merchant Services is the most favorable choice for most businesses. Host Merchant Services excels in transparency, flexibility, and customer support with its transparent interchange pricing model and no long-term contracts. Including live chat support and a focus on after-hours follow-up further enhance its appeal.

Host Merchant Services caters to a wide range of industries, including high-risk sectors, and offers competitive pricing, making it a solid option for businesses of all sizes. While Merchant One offers strong features, its ambiguous pricing and long-term contract commitments may deter those seeking straightforward, flexible solutions. Therefore, Host Merchant Services is the clear winner for businesses prioritizing clarity, ease of switching, and responsive support.