What Host Merchant Services does

Host Merchant Services (HMS) is a privately held, Delaware-LLC merchant services provider founded in 2010, headquartered in Newark, Delaware, with a secondary office in Naples, Florida. The company operates across the United States and Canada, serving small and mid-sized businesses across at least 13 vertical segments including retail, restaurants, e-commerce, nonprofits, fitness, medical, automotive, lodging, and high-risk categories such as CBD and firearms. HMS is led by CEO Lou Honick, who previously built an early internet web hosting business, and the company emphasizes a service-heavy operating model in which its merchant support team is stated to be four times the size of its sales team with 24/7/365 availability.

The company's core technology is the in-house HMS Pay payment gateway and virtual terminal, which supports card-present, card-not-present, mobile, e-commerce, and ACH/eCheck transactions with PCI-DSS Level 1 compliance, tokenization, point-to-point encryption, 3D Secure, and AI-assisted real-time fraud detection. This is complemented by a broad hardware lineup of EMV/NFC terminals from Dejavoo, Valor PayTech, PAX, Ingenico, and First Data, plus POS partnerships with Clover, Korona, SwipeSimple, and others. Proprietary vertical SaaS products — Cloud Studio Manager (fitness), Cloud Rental Manager (property), Cloud Donor Manager (nonprofits), and Cloud Job Manager (contractors) — sit alongside the Biller Genie billing/invoicing subscription and integrations with QuickBooks, NetSuite, Xero, and major e-commerce platforms.

HMS makes money primarily through interchange-plus transaction markups (0.15%–0.40% plus $0.06–$0.08 per transaction, scaled by monthly volume tiers), supplemented by hardware sales, subscription fees from Biller Genie and Cloud Manager software, ACH/eCheck processing fees, and revenue-sharing arrangements with ISV/SaaS embedding partners. The company reaches customers through three parallel GTM motions: phone-based inside sales with a $50 savings guarantee, an Independent Sales Rep Agent Program with residual commissions, and an ISV/SaaS integration channel offering co-branded or white-label processing. Pricing is positioned around transparency — no cancellation, application, setup, or PCI compliance fees — and the company claims an average 27% customer savings versus prior processors.

Name

Host Merchant Services

Legal name

Host Merchant Services LLC

Website

https://hostmerchantservices.com

Company type

Private

Founded year

2010

Operating status

Operating

Headcount range

1–10 employees

Short description

Host Merchant Services is a US-based, privately held merchant services provider offering interchange-plus payment processing, in-house gateway (HMS Pay), and vertical-specific SaaS tools to SMBs across 13+ industries in the US and Canada.

Ownership category

akta.pro rank

Product category

Payment Processing Services

akta.pro primary industry

Merchant Acquiring & Processing Platforms (BPAMAFAB)

akta.pro secondary industries

Merchant Payment Gateways (API/Hosted Checkout) (FSAMACAA), Merchant Acquiring & Card Processing (PSPs) (CRAFALAB), Recurring Billing, Subscriptions & Tokenized Payments (CRAFALAH)

Keywords

• Payment processing services
• Merchant services
• Credit card processing
• POS solutions
• ACH eCheck processing

Headquarters

HQ city

Newark

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Supply Chain, Others

Revenue model

1. Payment Processing Transaction Fees: Interchange-plus transaction fees charged on every card payment processed. Rates vary by transaction type (in-person, keyed, online), card brand (Visa, Mastercard, Discover, Amex), and monthly volume tiers. Includes markup over wholesale interchange costs.
2. Billing Software Subscriptions: Biller Genie billing and invoicing software with two tiers: Plugin Plan at $24.95/month and Premium Plan at $49.95/month plus 0.50% per invoice. Generates recurring subscription revenue.
3. Payment Terminal Hardware Sales: Sale of credit card terminals and POS hardware from brands including Dejavoo, Valor PayTech, PAX, Ingenico, and First Data. One-time hardware purchases.
4. ISV/SaaS Integration Revenue Sharing: Revenue sharing arrangements with ISVs and SaaS providers who integrate payment processing into their software platforms. Custom commercial terms based on volume and structure.
5. ACH/eCheck Processing: Bank payment processing services for businesses accepting ACH and eCheck payments, offering lower costs than card payments for large invoices and recurring billing.

Pricing tiers

Go-to-market motion3 records

Distribution channels7 records

Marketing channels6 records

Core offering

Host Merchant Services is a U.S.-based merchant services provider that processes credit card, debit card, ACH/eCheck, and mobile wallet payments for businesses across the United States and Canada. Its core offering is the HMS Pay payment gateway and virtual terminal, bundled with interchange-plus transaction pricing, a broad portfolio of EMV/NFC credit card terminals and POS hardware, mobile payment acceptance, e-commerce gateway integrations, ACH/eCheck processing, and add-on software such as Biller Genie billing and four industry-specific Cloud Manager platforms.

Product overview

Host Merchant Services provides a unified payment processing platform designed for small to large businesses across the United States and Canada. The portfolio centers on HMS Pay (an in-house payment gateway combining virtual terminal, invoicing, recurring billing, and ACH acceptance), complemented by an extensive hardware lineup of credit card terminals from Dejavoo, Valor PayTech, PAX, Ingenico, and First Data. Supporting this core infrastructure is a suite of industry-specific cloud management platforms—Cloud Studio Manager (fitness), Cloud Rental Manager (property), Cloud Donor Manager (nonprofits), and Cloud Job Manager (contractors)—along with add-on services including billing/invoicing software (Biller Genie), business funding, gift/loyalty cards, and high-risk merchant account solutions. The architecture enables omnichannel acceptance (in-store, online, mobile, and on-the-go) through integrations with major e-commerce platforms, POS systems, accounting software, and payment gateways.

Differentiator

Problem solved

Functional benefit

Brands

• HMS Pay: In-house payment gateway and virtual terminal solution offering virtual terminals, invoicing, hosted payment pages, recurring/scheduled payments, ACH/e-check acceptance, customer vault with tokenization, and fraud tools.
• Cloud Studio Manager
• Cloud Rental Manager
• Cloud Donor Manager
• Cloud Job Manager
• Biller Genie

Products and services

• HMS Pay Payment Gateway and Virtual Terminal In-house all-in-one virtual terminal and payment gateway with electronic invoicing, hosted payment pages, recurring/scheduled payments, ACH and check processing, secure customer vault with tokenization, fraud tools, 3D Secure, and Level 3 processing support. Designed for businesses that want more control than basic checkout, supporting in-person, online, and mobile acceptance under one merchant relationship.
• Credit Card Machines and Terminals (multi-brand lineup) Sale of EMV chip, contactless (NFC), and mobile-wallet capable payment terminals across countertop, handheld, wireless, and mobile form factors from brands including Dejavoo, Valor PayTech, PAX, Ingenico, Verifone, and First Data/Fiserv. Targeted at merchants needing in-person card acceptance hardware.
• Point of Sale (POS) Systems Modern POS systems designed to speed up checkout, improve inventory control, and simplify reporting. Includes Clover, Korona, Dejavoo, SwipeSimple, Vital POS, and Bonsai POS options with inventory management and sales tracking capabilities for retail and restaurant environments.
• Mobile Payment Processing Mobile payment solutions that let businesses accept card payments anywhere via mobile card readers and mobile POS apps. Includes Tap to Pay on iPhone via Clover Go (iPhone/iOS compatible, no additional reader required) and NFC/digital wallet acceptance.
• E-Commerce Solutions PCI-compliant online payment processing with support for multiple currencies, recurring/subscription billing, and direct integrations with major shopping carts including WooCommerce, Shopify, Magento, BigCommerce, Wix, 3dcart, PinnacleCart, and X-Cart. Targeted at online retailers, subscription businesses, and digital-goods sellers.
• ACH and eCheck Services Digital bank payment acceptance via ACH and eCheck processing on platforms including Paya, Authorize.net, NMI, FluidPay, and CheckCommerce. Supports invoicing, subscriptions, deposits, tuition, memberships, and accounts-receivable workflows with lower processing costs than card payments for large invoices and recurring billing.
• Biller Genie Billing and Invoicing Software Award-winning cloud-based accounts receivable solution integrated with QuickBooks and Xero that automates billing, online payments, and reconciliation. Available in Plugin Plan ($24.95/month) and Premium Plan ($49.95/month plus 0.50% per invoice). Targets SMBs with recurring billing and automated invoicing needs.
• Cloud Studio Manager Studio management platform for fitness studios, yoga studios, dance studios, and wellness businesses. Includes online booking with real-time calendar syncing, memberships with recurring billing, automated reminders, client portal, and reporting.
• Cloud Rental Manager All-in-one rental management platform for property managers and owners with no subscription fees and no long-term contracts. Simplifies rent collection and operational oversight with online payments, tenant tools, automation for reminders, renewals, and maintenance tracking.
• Cloud Donor Manager Donation and donor management software designed to be free for nonprofits through optional donor-covered fees. Supports fundraising, donor engagement, one-time and recurring donations, campaigns, pledge links, donor CRM, analytics, and automated tax receipts.
• Cloud Job Manager Job management software made for contractors and field service providers at no cost. Supports customer management, quoting, invoicing, scheduling, dispatch, contracts with e-signature, recurring billing, and configurable surcharging or cash discount programs.
• High-Risk Merchant Accounts Specialized underwriting and payment processing solutions for complex or high-risk business categories including CBD, travel, gaming, adult content, firearms, nutraceuticals, airlines/jet charter, bail bonds, debt collection, e-cigarettes, and subscription/continuity businesses that traditional processors decline.
• Business Funding Business capital and funding solutions for merchants needing additional working capital. Application is available through the HMS website for existing merchant account holders.
• Gift and Loyalty Card Programs Gift card and customer loyalty program solutions that help merchants drive repeat business and customer retention.
• Data Breach Protection Program Optional data breach protection delivered with Trustwave, providing up to $100,000 in breach coverage. Includes PCI compliance support with no annual compliance fees and no PCI non-compliance penalties.

Quantifiable outcome

• Businesses save 27% on average with Host Merchant Services
• +3 more outcomes

Named customers5 records

Segments13 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration25 records

AI capability2 records

Feature5 records

Partnerships

22 partnerships are on record, tiered supporting and core.

• TrustwavesupportingStrategic or Co-development PartnerTrustwave provides optional data breach protection through HMS merchant accounts, including up to $100,000 in breach coverage. HMS offers this protection as an optional add-on security measure for merchants concerned about data security incidents.
• Biller GeniecoreTechnology or IntegrationBiller Genie is a cloud-based billing and invoicing software integrated with Host Merchant Services for automated reconciliation. HMS acts as an intermediary helping merchants implement Biller Genie with setup, integration, and ongoing support included.
• QuickBookscoreTechnology or IntegrationQuickBooks payment integration allows HMS merchants to sync transaction activity directly into QuickBooks Online, Desktop, or Enterprise. Multiple integration options range from terminal-based solutions to gateways with recurring billing, reducing manual data entry.
• NetSuitesupportingTechnology or IntegrationIntegrated payment solutions for NetSuite environments with competitive rate positioning and dedicated implementation support. HMS provides setup, configuration, and ongoing support for NetSuite payment integration.
• WooCommercecoreTechnology or IntegrationHMS offers a custom WooCommerce integration plugin for merchants using this popular e-commerce platform. The integration enables seamless payment acceptance with PCI-compliant checkout and real-time transaction reporting.
• ShopifycoreTechnology or IntegrationHMS integrates with Shopify for seamless online payment acceptance. Merchants can connect HMS payment processing to their Shopify stores for accepting credit cards and digital wallets during checkout.
• MagentosupportingTechnology or IntegrationHMS supports Magento e-commerce platform integration for merchants requiring enterprise-level online retail capabilities with secure payment acceptance.
• BigCommercesupportingTechnology or IntegrationHMS integrates with BigCommerce for SaaS-based e-commerce merchants needing secure payment processing with streamlined checkout experiences.
• WixsupportingTechnology or IntegrationHMS supports Wix e-commerce platform integration for small business merchants building websites with the Wix website builder.
• Authorize.netcoreTechnology or IntegrationHMS supports Authorize.net as a payment gateway option for merchants. Authorize.net provides virtual terminal, e-check processing, and recurring billing capabilities for HMS merchant accounts.
• PayacoreTechnology or IntegrationPaya ACH Debit & Credit is a primary ACH processing platform offered through HMS for businesses needing pay-by-bank solutions. Supports consumer and B2B payments (PPD/CCD), recurring billing, checks-by-phone, and detailed reporting.
• NMI (Network Merchants)supportingTechnology or IntegrationNMI gateway support for HMS merchants requiring gateway-level control with Paya-backed ACH connection. Combines operational control of a gateway with proven ACH processing foundation.
• FluidPaysupportingTechnology or IntegrationFluidPay is supported by HMS for merchants in multi-channel payment environments needing to add ACH/eCheck alongside card processing. Paired with Paya-powered ACH backend for reliability.
• CheckCommerce (TSYS)supportingTechnology or IntegrationCheckCommerce (TSYS) is offered as a structured ACH solution for merchants needing consistent reporting and specialized billing workflows. Available at no additional cost depending on business type and risk controls.
• ClovercoreTechnology or IntegrationHMS offers Clover POS systems including Clover Go for mobile Tap to Pay on iPhone. Clover integration supports in-person, mobile, and online payments with Tap to Pay functionality (iPhone/iOS compatible, no additional reader required).
• KoronasupportingTechnology or IntegrationHMS offers Korona POS as a cloud-based point of sale solution for retail and restaurant businesses, with seamless HMS payment processing integration.
• SwipeSimplesupportingTechnology or IntegrationSwipeSimple mobile POS is offered by HMS for merchants needing on-the-go payment acceptance with Bluetooth card readers for mobile devices.
• DejavoocoreTechnology or IntegrationHMS offers Dejavoo Android-powered countertop and mobile terminals including P Line, Z Line, and QD Line devices. Full range from compact countertop to wireless Android POS terminals with EMV, NFC, and digital wallet support.
• Valor PayTechcoreTechnology or IntegrationHMS offers Valor PayTech terminals including countertop, portable, and PIN pad devices. Valor VP550C, VL550, VP800, RCKT Mobile POS, and various other models for retail and restaurant environments.
• PAX TechnologycoreTechnology or IntegrationHMS offers PAX Android SmartPOS terminals including A80, A800, A6630, A6650, A920, A920 Pro, A920 MAX, A77 Smart MiniPOS+, D195, and S300 for countertop and mobile payment acceptance.
• IngenicocoreTechnology or IntegrationHMS offers Ingenico payment terminals including Desk 1500, Desk 3500, Desk 5000, and Move 5000 for retail and hospitality environments with trusted brand recognition.
• First Data (Fiserv)supportingTechnology or IntegrationHMS supports First Data/Fiserv terminals including FD150 Countertop Card Terminal and RP10/FD35 customer-facing PIN pads for traditional retail counter setups.

Scale indicators4 records

Recent moves1 record

Expansion highlights6 records

Direct peers

• Payment Depot: SMB-focused merchant services provider offering interchange-plus pricing, transparent fee structures, and multi-channel payment acceptance. Closely comparable on target customer (small/medium merchants), pricing model, and acquisition approach via inside sales and partner referrals.
• Stax (formerly Fattmerchant): Subscription-based payment processor for SMBs with interchange-plus pricing and a proprietary gateway/portal. Comparable on transparent pricing, SMB focus, proprietary gateway offering, and flat monthly-plus-per-transaction model.
• Helcim: Canadian-headquartered payment processor serving SMBs across North America with transparent interchange-plus pricing and multi-channel acceptance. Comparable on pricing transparency, SMB target, and Canada/U.S. footprint overlap.
• National Processing: SMB merchant services provider with interchange-plus pricing, multi-brand hardware options, and high-risk merchant specialization. Comparable on SMB focus, pricing model, hardware portfolio, and high-risk vertical capability.
• Flagship Merchant Services: SMB credit card processing ISO offering transparent pricing, equipment sales, and ISV integration programs. Comparable on SMB merchant services focus, equipment portfolio breadth, and channel-driven acquisition.
• Dharma Merchant Services: SMB payment processor with transparent interchange-plus pricing and a customer-service-led positioning. Comparable on transparent pricing, SMB focus, and customer-service-led differentiation, though Dharma skews more toward B2B/wholesale.

Broad incumbents

• Square (Block): Public fintech serving SMBs with integrated payments, POS hardware, software, and banking products. Comparable on SMB payments, POS hardware, and software-led ecosystem, but operates at vastly larger scale and product breadth.
• Stripe: Global online payment processing platform serving internet-first businesses of all sizes via APIs and embedded components. Comparable on payment gateway and API-first developer positioning; HMS's SMB/omnichannel focus differs from Stripe's online/enterprise tilt.
• Fiserv: Global payments and financial-services technology provider, owner of Clover POS and First Data. Comparable as an underlying processor and POS partner to HMS, but operates at massive scale across bank, merchant, and enterprise segments.

Emerging players

• Toast: Cloud-based restaurant POS platform with integrated payments and embedded fintech. Comparable on restaurant-vertical POS and integrated payment processing, but operates at larger scale within a single vertical.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xx.com/HostMerchant
• Facebookfacebook.com/HostMerchantServices
• LinkedInlinkedin.com/company/host-merchant-services-llc

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Host Merchant Services