Full Review

U.S. Bank Merchant Services is a payments services provider with a built-in business banking solution. It uses Elavon, a subsidiary of the institution, to process payments, and sells POS systems from Talech. The product stands out for its quick deposits, lack of cancellation fees and variety of POS software plans for retail businesses and restaurants.

However, U.S. Bank Merchant Services isn’t the best fit for businesses that don’t have a U.S. Bank business checking account. Other popular payment services providers offer similarly competitive rates and more hardware options.

U.S. Bank Merchant Services is best for businesses that:

  • Have a U.S. Bank business checking account. Businesses that bank with U.S. Bank get access to same-day deposits, instead of having to wait multiple days. This can help improve cash flow. 

  • Sell mostly in-person. U.S. Bank Merchant Services sells POS hardware from Talech for in-store sales. While you can use the provider to accept online transactions, competitors, like Shopify and Stripe, are better for building online stores.

  • Prioritize convenience. If you’ve been satisfied with your experience banking with U.S. Bank, it makes sense to use them for your payment processing needs, too. That way, you’re working with one company instead of two.  

Deciding factors

Payment processing model

Flat-rate.

Payment processing fees

  • 2.6% plus 10 cents for in-person payments.

  • 2.9% plus 30 cents for online payments.

  • 3.5% plus 15 cents for keyed payments.

Monthly fee

  • $0 for Mobile and Terminal plans.

  • $29 and up for Starter plan.

  • $69 for Standard plan.

  • $99 and up for Premium plan.

  • $15-$29 for each additional software license.

Hardware cost

Sells a variety of hardware, including full POS stations, handheld terminals and customer displays.

You can purchase or rent hardware. Monthly rental pricing starts at $15 for a handheld terminal.

Contract length

Three years, but there are no cancellation fees.

Customer support

24/7 phone support, plus a dedicated account manager.

Where U.S. Bank Merchant Services stands out

Built-in banking partner

Processing payments through your bank (or one of its subsidiaries), as opposed to through a third-party option, can streamline deposits and bolster your business’s cash flow. U.S. Bank Merchant Services offers same-day deposits — on weekdays and weekends — to business owners with a U.S. Bank business checking account.

Lots of competitors, like Clover, don’t guarantee next-day deposits. Instead, some merchants wait up to three business days to access their funds. It’s also uncommon for processing companies to make deposits on weekends, like U.S. Bank Merchant Services does.

💬 From our Nerds: Should you get a U.S. Bank business checking account?

“U.S. Bank is a rarity among brick-and-mortar banks. It offers a business checking account with no monthly maintenance fee. That means opening an account has little downside, especially since the upside is faster access to funds.

“The account isn’t perfect, though. Its additional fees — for overdrafts, wires and out-of-network ATMs — are high compared to other free business checking accounts. Plus, cash deposit limits are relatively low.

“Those constraints may make U.S. Bank a tough everyday fit for your business. But you can always open a U.S. Bank account as a way station for your payments and use a second account for other transactions.”

Face, Happy, Head

— Ryan Lane, managing editor covering small business

24/7 support

If your payment processing system is down or you run into an issue, you risk having to pause sales. Access to 24/7 phone support and a dedicated account manager can be a game changer for businesses that stay open late and/or are busiest on weekends. Some competitors, in comparison, offer phone support Monday through Friday or Saturday, and only during business hours.

Where U.S. Bank Merchant Services falls short

Additional costs can add up

U.S. Bank Merchant Services tacks on some charges you don’t always see with competitors. For example, there’s a mandatory $99 setup fee if you opt for the Standard or Premium POS plans.

And if you need a virtual terminal to accept payments over the phone, that also costs extra. The institution doesn’t clearly disclose this virtual terminal upcharge on its website either.

Not ideal for businesses using outside banks

U.S. Bank Merchant Services’ main draw is its built-in banking services. If you don’t have a business account with U.S. Bank, there’s not as much incentive to process payments through it. For one, you wouldn’t be approved for same-day deposits. Additionally, competitors, like Square and Clover, offer more POS options that employees and customers alike may be more familiar with.

Alternatives to U.S. Bank Merchant Services

NerdWallet rating

NerdWallet rating

NerdWallet rating

Payment processing fees

2.6% + 10¢

in-person; 2.9% + 25¢ online.

Payment processing fees

2.7% + 5¢

in-person; 2.9% + 30¢ online.

Payment processing fees

0%-1.5% + 0¢-48¢

for Basic In-Person Package.

Monthly fee

$0

for in-person payments; $9.95 and up for e-commerce payments.

Monthly fee

Monthly fee

$15

for Basic In-Person Package.

at Chase

at Stripe

at National Processing
Chase Payment Solutions: Better direct processor. U.S. Bank Merchant Services uses Elavon to process payments in house, but Chase takes in-house processing a step further. Unlike U.S. Bank, Chase is a direct processor. This could be a perk for business owners who care a lot about an institution’s reputation and experience as a direct processor, but it’s really a matter of preference. Read our full Chase Payment Solutions review.
Stripe: Better for online transactions. Stripe is known for offering customizable payment processing solutions to businesses that mostly operate online. It’s also available in more than 40 countries. Read our full Stripe review.
National Processing: Better in-person transaction rates. National Processing’s in-person transaction rates are as low as 2.41% plus 10 cents. On top of that, new businesses may qualify for a free terminal. You can also pair it with POS hardware from different companies. Read our full National Processing review.

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