Stripe and Square make starting easy. But "easy" costs more than you think — in fees, fund delays, and account risk. Here's why a dedicated merchant account wins at scale.
See the Breakdown →Aggregators charge a flat rate because they're built for simplicity, not savings. Interchange-plus pricing — available with a merchant account — passes through the actual card network cost and charges a small, predictable margin on top.
With an aggregator, your money sits in a pooled account owned by Stripe or Square. With a merchant account, funds deposit directly to your bank — typically within 1–2 business days.
Aggregators are notorious for freezing or terminating accounts with little notice. Their automated risk systems flag patterns algorithmically — there's often no human in the loop.
When a chargeback hits, the difference between a dedicated account manager and a support ticket queue is enormous.
Aggregators are built for low-risk, mainstream merchants. If your business is in supplements, travel, subscriptions, or high-ticket services — aggregators will eventually terminate you.
A direct comparison across the factors that matter most to growing businesses.
| Category | ✦ Merchant Account | Aggregator (Stripe / Square) |
|---|---|---|
| Pricing Model | ✓ Interchange+ — often 0.3–0.6% above interchange | ✗ Flat 2.6–2.9% + $0.10–$0.30 per transaction |
| Savings at Volume | ✓ Substantial — margins compress as volume grows | ✗ Rate doesn't drop as volume grows |
| Fund Settlement | ✓ Direct deposit, typically 1–2 business days | ✗ Commingled account — delays and holds possible |
| Reserve Risk | ✓ Disclosed upfront, agreed upon in writing | ✗ Arbitrary holds common; no advance notice |
| Chargeback Support | ✓ Dedicated reps, proactive alert tools | ✗ Automated, limited human support |
| Underwriting | ✓ Full review upfront — stable long-term | ✗ Easy onboarding; termination without warning |
| Contract / Terms | ✓ Negotiated, protects merchant, rate locked | ✗ Click-wrap ToS; can change anytime |
| High-Risk Eligible | ✓ Yes — with the right processor and ISO | ✗ Rarely — terminates at first industry flag |
| Account Manager | ✓ Named contact who knows your business | ✗ Support ticket queue and help center articles |
Polaris Payments helps businesses of all sizes get the right processing relationship — including high-risk merchants aggregators won't touch.
Talk to Polaris Payments →