Archives

Square Payments Review

Square Payments

Overall Rating

4.7/ 5.0
Get A Free Quote

In-Depth Analysis

4.7

Price

Ease of Use

Features

Support

Pros

  • Simple pricing
  • Multiple features
  • No monthly fee

Cons

  • Not for high volume merchants

Overview

Square is a financial technology company that provides mobile and web-based payment solutions for businesses and individuals. It was founded in 2009 by Jack Dorsey, who is also the CEO of Twitter.

Square’s most popular product is its Square Reader, a small device that attaches to a smartphone or tablet and allows merchants to accept credit card payments on the go. The company has since expanded its offerings to include a wide range of payment, point-of-sale, and financial services for businesses, including invoicing, payroll, and business loans.

 

In addition to its payment services, Square is also known for its commitment to financial inclusion, as it provides tools and services to help underbanked and unbanked individuals access financial services.

Square is headquartered in San Francisco and has a market capitalization of several billion dollars, making it a publicly traded company. The company has additional offices and operations in various countries, including the United States, Canada, Japan, and the United Kingdom.

 

Square’s business operates in various industries and sectors, including retail, food and beverage, professional services, healthcare, and more. The company’s products and services are designed to help merchants of all sizes and types to accept payments, manage their operations, and grow their businesses.

 

 

Square’s products and services are available to merchants through its website and mobile apps. The company has a growing network of partners, including payment processors, payment gateways, and other financial services providers. 

Square History and Founder

Square was founded in 2009 by Jack Dorsey, who is also the CEO of Twitter, and Jim McKelvey, a glassblower, and entrepreneur. The story behind Square’s founding began when McKelvey could not complete a sale of one of his glass works because the customer wanted to pay with a credit card, and McKelvey needed the ability to accept credit card payments. This experience led him to collaborate with Dorsey to create a solution allowing small businesses to accept credit card payments using their mobile devices.

 

Square Reader, the company’s first product, was a small, square-shaped device that plugged into the headphone jack of a smartphone or tablet, allowing merchants to accept credit card payments through their mobile devices. The device was an instant hit, and Square quickly became one of the most popular mobile payment solutions for small businesses.

 

Since then, Square has expanded its product offerings to include a wide range of payment and financial services for businesses, including invoicing, payroll, and business loans. The company has also continued to focus on financial inclusion, providing tools and services to help underbanked and unbanked individuals access financial services. In November 2021, Square announced that the company was opening up its Cash App to teenagers between the ages of 13 and 17, as long as there is parental oversight. This move removes the company’s last age gate of 18 and above.

 

Other ways in which Square has diversified its offerings now include a digital peer-to-peer banking app, small business lending, and stock and crypto trading, having received a bank charter. The company has also expanded through acquisitions, adding Afterpay, a buy-now-pay-later provider, and Tidal, Jay-Z’s music streaming service. Furthermore, Square is intensifying its focus on Bitcoin with a crypto-focused enterprise, which was initially named TBD.

 

In December 2021, the company rebranded and renamed itself Block , Inc. The name Block represents the company’s growing interest in blockchain technology and cryptocurrency. The company’s crypto product also had a name change to Spiral.

 

Square is a publicly traded company with a market capitalization of more than 47 billion dollars and is renowned for its commitment to innovation and user-friendly payment and financial services. It remains a leader in the mobile payment and financial technology industries.

What Is Square Best At?

Square is best at providing payment processing and business management solutions for small and medium-sized businesses. The company has developed a range of products and services designed to help merchants of all sizes and types accept payments, manage their operations, and grow their businesses.

 

Some of Square’s key strengths include:

 

·    Payment Processing: Square is known for its simple, secure, and affordable payment processing solutions, which allow merchants to accept a wide range of payment types, including credit and debit cards, mobile payments, and more.

 

·      Business Management: Square’s products and services include various business management tools, including inventory management, sales reporting, customer management, and more. These tools help merchants streamline operations, make informed decisions, and grow their businesses.

 

·      User-Friendly Technology: Square is known for its user-friendly technology, designed to be easy to use and accessible to a wide range of merchants. Square’s products and services can be used through its website and mobile apps, making it simple for merchants to manage their business on the go.

 

·    Global Reach: Square operates globally, serving merchants in various industries and sectors. The company has a growing network of partners, which helps ensure that its products and services are available to merchants worldwide.

 

 

Reconciling with Square at the end of the day is a breeze due to its flat transaction fee system. Additionally, Square offers end-of-day customization, making the process even more straightforward. The main draw of Square’s payment processing system is its flat transaction fee structure. However, if your transaction volume rises, costs can add up quickly. In this case, you can reach out to the company to create a tailored plan that suits your needs.

Square Products and Services

Square is a financial technology company offering various products and services for individuals and businesses. Below are some of the key products and services provided by Square.

Square Point of Sale Hardware

 

·        Square Reader – This is a mobile point of sale system that allows businesses to accept payments from their customers using a smartphone or tablet. The magnetic stripe reader is perfect for companies that are constantly on the move, such as a farmer’s market vendor, a service provider, or a food truck operator, and can be easily integrated with the company’s POS apps. It’s worth noting that the compatibility of the card reader may differ depending on the tablet or smartphone a merchant is using.

 

·        Square Contactless Chip Reader – This is another option available from Square that is an upgrade from its predecessor in enhanced connectivity. Unfortunately, as is a familiar strategy deployed by many tech vendors, companies are looking for new ways to generate more revenue from existing products. Think of smartphone companies doing away with headphone jacks to sell their own headphones. Square sells the charger separately

 

·        Square Stand – The product costs $149, the stand and includes much of the functionality missing from mobile devices offered by the company. The Square Stand is a versatile product compatible with several of Square’s apps. The product features a sleek design and swivels with a clean look.

This product is affordable, but if you opt for the bundle, you’ll pay $619. Your Square Stand Kit includes 25 rolls of receipt paper, a USB receipt printer, a 16-inch printer-and driven cash drawer, and the Square stand.

 

This particular product by Square allows merchants to build their own setup. So, if you decide against the Square Stand Kit, keep in mind that you can use any piece of hardware that works with an iPad running Square Point of Sale as well as USB-enabled devices.

 

·        Square Register – Square Register is a cloud-based POS solution that provides businesses with a complete solution for managing their sales and transactions. This service includes various features, such as inventory management, customer management, and sales reporting. However, Square Register caters to a more upscale market with a cost of $799 (excluding the cash drawer, receipt printer, or barcode scanner). But this price provides you with a 13.25-inch screen running Square Point of Sale and a 7-inch consumer-facing display that supports magstripe, chip cards, and contactless transactions.

 

·        Square Terminal – The Square Terminal is a compact, all-in-one payment terminal that allows businesses to accept payments from their customers using various payment methods, including credit and debit cards, contactless and chip cards. As Square’s latest hardware release, the Square Terminal combines the functionality of many different devices offered by Square into a single portable device. It has a large display that functions as a fully operational POS, with an in-built printer and cash drawer, running Square’s free app. The device supports numerous payment methods, including contactless payments.

 

The Terminal can be used while plugged in, but Square assures merchants that the device can operate wirelessly for a full day.

 

·        Square Kitchen Display System (KDS) – The Square KDS system is a kitchen display system that employs an iPad screen to relay orders rather than a kitchen printer. The Square Kitchen Display System assists restaurants in organizing and fulfilling tickets transmitted from their Square POS and online ordering channels.

 

 

In addition to using Square KDS with your Square POS system, Square has gone a step further by offering its KDS as a standalone system, allowing it to be used without a POS. This subscription option is ideal for ghost kitchens and delivery-only restaurants that do not have a traditional POS. Nevertheless, Square KDS is equally effective for sit-down, counter-service, and drive-thru restaurants. 

Square Applications

·        Cash App – The Square Cash app is a peer-to-peer payment app that allows individuals to send and receive money from their friends and family.

 

 

·        Square Charge for Desktop – a free app, merchants can process digital payments quickly and easily from their Mac or desktop.

Square Financial Services

·     Square Banking – Square Banking offers seamless integration of payments, banking, and cash flow. When merchants use Square for payments and banking, everything is synchronized, allowing them to access and move their money quickly and easily, including automated options. Plus, there are no credit checks, long applications, or monthly fees.

 

Merchants can easily send money in and out of your account using your account and routing numbers. As a result, Square is changing the game for small business owners by providing a better alternative to the outdated, unnecessary fees and applications that have long been associated with financial services.

 

·      Square Capital – Square Capital is a lending product for small businesses that provide access to funding based on their sales history, ranging from as low as $300 to as much as $250,000.

 

 

·    Square Card – Square Card is a business debit card that allows businesses to manage their finances and access funds from their Square account. With Square Checking and Debit Card, companies can instantly spend and access their money for Square sales. 

Square’s Ancillary services

·       Square Virtual Terminal – Merchants can conveniently accept and document payments on their computers. This virtual terminal transforms your computer into a credit card terminal and is ideal for remote billing or taking credit card payments over the phone. Merchants can charge credit and debit card payments directly from any browser without needing special equipment or devices. Plus, businesses can record all types of payments, including cash, checks, and Square Gift Cards.

 

To make payment collection even more accessible, businesses can request payments via text by sending customers a secure payment link so that they can enter their credit card information confidentially and pay from any location. The transaction can be split across different payment methods, including cash, Square Gift Cards, or multiple credit and debit cards.

 

The Square Virtual terminal also allows for the scheduling of recurring payments for customers weekly, monthly, or yearly, and merchants can securely store card information on file. The Virtual Terminal is also integrated with Square solutions like Square Point of Sale, Square Invoices, and others. Data can be exported to accounting software such as QuickBooks.

 

·   Square Payroll – Square Payroll is a payroll management solution that allows businesses to manage their payroll processes and pay their team members.

 

·     Square Appointments – Square Appointments is a scheduling and appointment management solution that allows businesses to manage their appointments and customer information.

 

·        Square Online Store – Square Online Store is an e-commerce platform that allows businesses to build and manage their online store, process payments, and manage their inventory. Merchants can launch an online store effortlessly and take orders for free.

 

·   Square Online Checkout – this feature allows you to create and share payment links with customers.

 

·      Square Links – this feature lets merchants easily integrate secure Square payments into existing businesses’ websites.

 

·     Square Loyalty Program – merchants can easily create a customer loyalty program using the Square Dashboard or directly from their Square Online website.

 

·      Square Gift Cards – With just a few clicks, businesses can set up and start selling their own gift cards. The custom gift card program is up and running in minutes and launched quickly. Merchants have the option to order physical gift cards to sell in-store or set up digital gift cards. This can then be promoted via the company’s marketing tool.

 

Square Marketing – Enhance customer engagement and attract new ones with personalized, one-time, and automated email and text campaigns to keep customers interested in your business. Many marketing professionals or do-it-yourself small business owners understand the need of managing a calendar of events they need to. Maybe it’s keeping track of emails to send out on holidays or other important dates. 

 

Or perhaps many businesses would like to have auto acknowledgments of new customers signing up or existing ones reaching out with questions about payments. Other times it’s simply to lure back potential clientele that left after visiting a specific webpage. Sometimes people have this quirky habit of building up a shopping cart only to disappear. Businesses now have Square Marketing to target that audience via prompt or scheduled campaigns. Track the success of each campaign from your Square Dashboard with just a one-time setup.

 

To rank higher and build your brand’s online presence, Google Reviews can help convert prospective buyers into customers.

 

 

·      Customer Directory – This product can store their information, view how they interact with your business, and create custom groups based on their purchasing habits. Besides, what better tool to go with Square Marketing than a database of a merchant’s customer details!

Integration options

Square can be easily integrated with various popular third-party apps and business solutions, providing a seamless experience for customers. Additionally, Square’s APIs allow for custom integrations into a merchant’s own software.

Square Pricing and Fees

Square’s pricing structure is designed to be simple, transparent, and accessible to many merchants. Square offers two main pricing models: pay-as-you-go and monthly subscriptions.

 

1.    Pay-as-you-go – With the pay-as-you-go pricing model, merchants are charged a simple per-transaction fee for each sale they process through Square. This fee includes the cost of payment processing, as well as access to basic features like sales reporting and inventory management. The exact fee will vary depending on the type of card being processed, with higher costs for keyed-in transactions and lower prices for card-present transactions.

 

2.   Monthly Subscriptions – Square also offers a range of monthly subscriptions, including access to additional features and benefits. These subscriptions range from basic plans with other reporting and management tools to more advanced plans with advanced features like appointment scheduling and online store management. The exact fee for a monthly subscription will depend on the specific plan that is selected, as well as the size and needs of the merchant. Here are some of the key subscription offerings from Square:

 

·        Square for Retail: Square for Retail is a monthly subscription designed for brick-and-mortar retailers and includes features like advanced inventory management, customer management, and sales reporting.

 

·        Square for Restaurants: Square for Restaurants is a monthly subscription designed for restaurants and food and beverage establishments and includes features like menu management, kitchen display system integration, and real-time sales reporting.

 

·    Square for Appointments: Square for Appointments is a monthly subscription designed for service-based businesses and includes features like appointment scheduling, customer management, and real-time sales reporting.

 

·    Square for Services: Square for Services is a monthly subscription designed for service-based businesses and includes features like invoicing, appointment scheduling, and real-time sales reporting.

 

·        Square for Professional Services: Square for Professional Services is a monthly subscription designed for professional services businesses and includes features like invoicing, time tracking, and real-time sales reporting.

 

 

In addition to these two pricing models, Square offers a range of add-ons and integrations that allow merchants to customize their payment processing setup further. These add-ons can include things like invoicing, tip tracking, and more. A more detailed tabulation of these pricing options is as follows:

PLAN

Free

Plus

Premium

COST

Free

$60/month

Custom pricing

HIGHLIGHTS

Includes:

Includes everything in the Free plan as well as:

Includes everything Plus plan as well as discounts on specific add-ons

The basics needed for businesses to cover day-to-day operations and services, such as online ordering and point of sale.

Ideal for businesses with multiple locations 
 More premier-level features, such as     24/7 support.

Most suitable for merchants that process over $250,000 annually

Unlimited countertop POS devices.

Best for businesses that need only one countertop POS device per location.

Customized plan offering that scales Square's offering as merchants expand their business.

Monday – Friday, 6 am – 6 pm Pacific Time

+$40/ month for each additional POS device

 

 

+$50/ month for each additional location for merchants utilizing Mobile POS

 

 

Unlimited access to Square KDS device

 

 

24/7/365 support

 

Point of Sale

Advanced POS features

Square Payroll

Team Management

Square KDS (Unlimited devices)

Square Loyalty

Payment Processing Rate

 

 

 

For in-person and invoice payments

2.6% + $0.10

2.6% + $0.10

Customized payment processing rate

Online and eCommerce payments

2.6% + $0.30

2.6% + $0.30

Customized payment processing rate

Point of Sale functionality Included. 

 

 

 

Overview of open checks

Yes

Yes

Yes

Menu management 

Yes

Yes

Yes

Table management 

Yes

Yes

Yes

Cash management

Yes

Yes

Yes

Auto-calculation of tips

Yes, but without threshold settings

Yes, with threshold settings

Yes, with threshold settings

Order management tools

Yes

Yes

Yes

Advanced discount functionality

Yes

Yes

Yes

NEW Mobile POS

No

Yes, at an additional cost of $50 per month per location that uses Mobile POS

Yes

Functionality to reopen checks that are closed

No

Yes

Yes

Table and seat management functionality

No

Yes

Yes

Meal and Course management functionality

No

Yes

Yes

Floor plan customization tools

No

Yes

Yes

Square Kitchen Display System includes:

Yes, but at $20 per month for every KDS device

Yes, with unlimited KDS devices

Yes, with unlimited KDS devices

Routing tickets

Yes

Yes

Yes

Ticket layout customization functionality

Yes

Yes

Yes

Updates on real-time orders

Yes

Yes

Yes

Ticket timers

Yes

Yes

Yes

Multiple device synchronization functionality

Yes

Yes

Yes

Reporting and Analytics – Kitchen Performance

Yes

Yes

Yes

Point of Sale Compatibility

 

 

 

Square Stand/iPad

Yes

Yes

Yes

Square Terminal

Yes, but not specifically for Square for Restaurants

Yes, specifically for Square for Restaurants mobile POS

Yes, specifically for Square for Restaurants mobile POS

Restaurant Mobile POS Kit

No

Yes

Yes

Square Register

Yes

Yes

Yes

Remote device configuration and management

Yes

Yes

Yes

Reporting on service charges

Yes

Yes

Yes

Reporting and Analytics 

Yes

Yes

Yes

Reporting on Team shifts

No

Yes

Yes

Reporting tools on menu

No

Yes

Yes

Ancillary Services

 

 

 

Square Team Management (Team Plus)

Yes, at the cost of $35 per month

Yes

Yes

Square Online site 

Yes, for the Free tier of Square Online

Yes, for the Free level of Square Online

A customized plan offered by the Square sales team

Square Payroll

At an additional cost of $35 per month + $5 per team member per month

At an additional charge of $35 per month + $5 per team member per month

A customized plan offered by the Square sales team

Square Loyalty

Starts at $45 per month per location

Starts at $45 per month per location

A customized plan offered by the Square sales team

Square Marketing

Starts at $15 per month per location

Starts at $15 per month per location

A customized plan offered by the Square sales team

Customer support

M–F 6 am to 6 pm PT support†

24/7 support

24/7 support

1-on-1 Implementation

Starting at $1,399

Starting at $1,400

A customized plan offered by the Square sales team

Online support center

Yes

Yes

Yes

Square Voices

Yes

Yes

Yes

Town Square Blog

Yes

Yes

Yes

Seller Community

Yes

Yes

Yes

Are There Any Complaints or Legal Issues With Square?

Square has its own set of unique problems. There have been many complaints from merchants who cited sudden fund holds by Square for which they get no explanation. Furthermore, connecting with the company’s customer support line requires a unique code based on the customer account, delaying the entire process.

 

Square’s support record has been somewhat mixed. On the bright side, Square has dedicated considerable resources over the past few years to improve the company’s Support team by expanding support to social media and developing and publishing an extensive resource library of knowledgebase to diagnose and troubleshoot issues independently. 

 

Furthermore, the company has also curated and fostered a seller community where merchants can seek advice. Nonetheless, the company’s support offering has a long way to go. Support is not yet a 24/7 offering unless merchants subscribe to the Premium or higher subscription plan. The Free plan receives support only Monday through Friday between 6 am and 6 pm Pacific Time.

 

Regarding sudden fund holds out of the blue, there is a list of prohibited goods and services that Square outlines in the company’s terms and conditions. If any merchant’s offering violates any prohibited goods or services, that merchant’s account may be frozen without warning. This is one of the most common complaints among merchants who subscribed to Square’s payment processing services. The company effectively does not cater to high risk businesses.

 

Furthermore, as of late March, news surfaced that Square was complicit in processing payments for fraudulent activity and criminals based on allegations lodged against the company by a short seller’s report. After the short seller’s report was published, Square initially lost a fifth of its market valuation, costing the company nearly $9 billion in market capitalization, although it has recovered some of those losses.

 

Hindenburg Research is notorious for publishing scathing and detailed investigative reports about companies that significantly move markets. In late 2022, the short seller published a report accusing India’s large conglomerate, The Adani Group, of being a house of cards fueled and debt and insider dealing. That company experienced a decline of nearly $100 billion in market valuation after that report surfaced.

 

Similarly, Hindenburg Research rattled markets in 2020, accusing Nikola, an EV startup for the trucking industry, of being a scam . The founder was subsequently found guilty of defrauding investors in a US court of law.

 

There is a growing belief that the company is probably in clear and fear that Hindenburg’s research efforts may have been susceptible to confirmation bias, given the length of time that Hindenburg was researching its claims against Square (two years) and many of its sources included former employees of Square, possibly disgruntled. Square has issued a point-by-point defense against Hindenburg’s allegations.

Customer Support

From experience and the reviews left by the users of Payment Depot, this merchant service provider supports its customers via:

24/7 Help & Support

Chat support available.

Phone Support

Monday through Friday Phone Support from 6AM to 6PM PST

Email

Email support through contact form.

FAQ

Basic FAQ section on website

Conclusion

When Square works for a business, it works really well. It has all that is needed as a full suite of options from start to finish. However, there are some scenarios where Square is not a good fit. Square isn’t a viable solution for payment processing for high risk merchants. In such cases, rather than facing support issues, being subjected to fund holds, and service blackouts, it’s best to seek out services from other merchant service providers that not only cater to such industries but have decades of experience in serving them, such as Host Merchant Services.

 

For traditional businesses that aren’t high risk, Square has revolutionized how companies accept payments through its innovative products and services. Since its founding, Square has worked to make it easier for small businesses to accept credit card payments. Since then, Square has continued to expand its offerings, providing a wide range of payment processing options, point of sale solutions, and financial services for businesses. In addition, Square has remained committed to financial inclusion, providing tools and services to help underbanked and unbanked individuals access financial services.

 

 

The company has grown significantly, expanding into different countries and industries, with a market capitalization of over 47 billion dollars. With the recent rebranding and renewed focus on blockchain technology and cryptocurrency, Square has demonstrated its commitment to remaining at the forefront of financial technology innovation.

Get a free quote

Stax Payments Review

Stax Payments

Overall Rating

4.7/ 5.0
Get a free quote

In-Depth Analysis

4.7

Price

Ease of Use

Features

Support

Pros

  • Attractive niche products
  • 500% growth
  • Fixed fee pricing
  • Simple pricing model

Cons

  • Not good for low volume processing

Overview

Stax is a Florida-based company that provides credit card processing services for merchants of all sizes. Stax, formerly known as Fattmerchant, is now commonly referred to as Stax by Fattmerchant and is a payment processor offering an integrated payments platform. It includes merchant accounts, e-commerce, mobile processing, inventory management, invoicing, reporting, and more.

The company offers a flat-fee subscription-based pricing model to save merchants on their credit card processing fees. The company’s monthly subscription fees range from $99 to $199. Stax offers a “one-stop shop” model with customizations to fit the needs of businesses of all types. The pricing model provides value to merchants, particularly e-commerce merchants, who have historically been excessively priced by payment processors. Stax is taking a page from Host Merchant Services’ book by offering the sector competitive pricing and top-notch quality service. The company provides volume discounts for high-volume businesses; the more a business processes, the lower the percentage of overall card payment volume they pay.

Stax states on its website that it has processed over 23 billion dollars in payments for over 22,000 customers, having grown around 500% over three years up to early-2022. Stax is part of a growing cohort that is starting to offer a flat monthly fee and fixed per-transaction fee, with no percentage-based markup on top of the interchange fees. The company offers merchant accounts through mobile phone processing and a virtual terminal for e-commerce merchants. The Stax mobile app, available for iOS and recently released for Android, can be used as a standalone solution or integrated into a multichannel platform for card present and card not present transactions. The app syncs transactions, drafts, catalog items, and real-time inventory updates across all devices, including the virtual terminal

Stax is a reseller of payment processing services of Vantiv, which was rebranded as Worldpay after the former acquired the latter. However, the company offers these services without any long-term contract or additional fees. Stax’s acquiring bank is listed as Fifth Third Bank.

Stax History and Founder

Brother and sister duo Sal Rehmetullah and Suneera Madhani founded Stax, formerly known as Fattmerchant. Suneera is currently the company’s CEO, while Sal is the President. The company was established in 2013 but began operations in 2014. Over the past few years, Stax has been on a capital-raising rampage, with total funding of more than $263 million over five rounds of funding since 2015 from well-known venture capitalists such as HarbourVest Partners and Greater Sum Ventures, valuing the company at a highly coveted unicorn status, a company value at more than $1 billion.

Stax raised seed capital of $850 thousand in 2015, led by early-stage accelerator fund venVelo. In May 2016, the company raised Series A funding of $1.4 million, led by growth-stage private equity firm Fulcrum Equity Partners.

In July 2018, Fulcrum Equity Partners again led a venture funding round, this time the late-stage Series C, of $10.5 million

2021 was a busy year of acquisitions for Stax. The company acquired Fusebill, which offers automated invoicing, billing, and collections services for subscription-based businesses. In November of that year, Stax acquired CardX . This firm specialized in automated surcharging and made a name for itself by forging ahead into uncharted territory by providing the niche payment service when the sub-type was both contentious and riddled with legal uncertainty.

Months later, in March 2022, Stax raised a massive $245 million in a Series D funding round led by renowned venture capital firms such as HarbourVest Partners and Greater Sum Ventures, valuing the company at $1 billion, a rarity among minority-led businesses.

What Is Stax Best At?

Stax seems to have built a niche product for which customers have swarmed to the service provider. Businesses that can benefit from the pricing model have signed up in droves, helping the company grow 500% over three years as of early-2022.

Beyond the fixed fee pricing option, the model offers a distinct level of peace of mind through the simplicity of what is being billed. An interchange without any markup and no additional fees, which businesses may need to keep an eye on to control.

So, more than anything, Stax is best known for the pricing model and the savings it can help businesses accrue, as long as they have a sufficient amount of processing volume to benefit from the pricing arrangement offered.

Stax Products and Services

Stax has various solutions for businesses, ranging from payment processing to mobile and traditional point of sale solutions, along with a host of tertiary services such as integrations and numerous eCommerce and analytics-related options.

The breakdown of the company’s flat-fee subscription options is as follows:

 

Growth Plan

Pro Plan

Ultimate Plan

Price

$99 per month

$159 per month

$199 per month

Customer Experience

Ticketed Support

Ticketed Support

Relationship Manager

ACH Payment Processing

Yes

Yes

Yes

Reporting & Analytics Level

Lite

Enhanced

Advanced

Invoicing functionality

Yes

Yes

Yes

Cards On File Options

No

Yes

Yes

Recurring Payments enabled

Yes

Yes

Yes

API feature

No

Yes

Yes

Automatically update stored Customers' Credit Card data

No

No

Yes

One-Click Shopping Cart & Catalog Management

No

No

Yes

Transactions and Customers Data Exports

No

No

Yes

Payment Processing – Stax does not process payments and instead partners with WorldPay and resells its service to merchants. Furthermore, unlike many other payment service providers, such as Block, Stax is not a payments aggregator. Stax customers get their merchant ID when setting up a merchant account through Stax.

Point of Sale and Mobile Apps

Point of Sale terminals – Stax has many partnerships to provide merchants with the point of sale solutions, offering a range of countertop terminals from leading brands, providing merchants with a large choice of payment devices. If merchants own their terminal, Stax can reconfigure the machine to make it compliant for use with Stax at no cost. Additionally, the company sells POS solutions for a full outright purchase, instead of offering equipment leases for these solutions.

Paying for a point of sale (POS) solution upfront in full can be more cost-effective in the long run than leasing one. When you buy a terminal, you own it outright, so there are no recurring monthly or annual costs. In contrast, with a lease, you typically make regular payments over a specified period, which can add up over the life of the lease. Most of the time, those recurring monthly or annual costs end up being many multiples of the cost of the equipment.

Mobile POS – It’s hard to function efficiently in our personal lives without our smartphones and the numerous apps we need daily. That fact is even more pertinent when one is running a business. It can be highly productive if merchants can access Stax’s platform via an app that would let them support EMV and mobile wallet payments and allows them to do the same tasks they can do via their desktop or laptop, such as access to invoicing and inventory features, without any additional costs. That is precisely what the Stax Pay app can do.

Virtual Terminals – Stax’s virtual terminal is a cost-effective solution for businesses that primarily process payments through a computer, such as in an office or for phone orders. The virtual terminal has a customer database, invoicing, and inventory management features. It can also be connected to Stax’s credit card readers, allowing you to benefit from in-person rates. Stax Pay’s Growth plan offers essential website payments feature if you don’t need a complete shopping cart but still want to accept online payments.

Shopping Carts – Stax offers a hassle-free payment solution for online sellers with this offering. Often when making a purchase online, the customer may need to leave the site to complete the transaction. The shopping cart functionality available from Stax allows merchants to embed the feature on their own websites. This has a meaningful impact on businesses beyond eCommerce merchants. More and more businesses are processing payments online and often need to save the payment details for future payments, as is often the case for recurring payment such as subscriptions. Managing that process end-to-end allows for a more seamless and efficient experience as customers see a uniform design and can access their payment credentials without having to reenter it next time. All without having to leave the merchant’s platform to complete the transaction.

Stax API – In business parlance, data is the new oil. As a result, tools have greatly flourished over the past decade to extract and use that data. Even businesses that operate at a smaller scale have increasingly started to ask what type of API functionality and software development kits would be available with a company’s service. Although the tools offered by Stax are not as open as Stripe or Square, they include a wide range of features, such as processing payments via JavaScript apps, an invoice function that redirects customers to a Stax-hosted site, and development documentation to implement mobile payment processing.

Tertiary Services Include:

Stax Pay –an integrated payment platform that centralizes all transactional information. The platform has a web-based dashboard that allows merchants to use it to manage inventory, a customer database, dispatch invoices, and have access to basic reporting functionality. The best benefit of this combined portal is that merchants can invoice their customers seamlessly by accessing the database of customer data and the item key of their uploaded product list. Advanced reporting features can also be added for an additional cost.

Stax Connect – The company also provides a processing package specifically designed for SaaS software platforms called Stax Connect. This offering from Stax is a “fully managed payments facilitation ecosystem for your platform,” but no public disclosure of prices on the company’s website exists. Customers are simply advised to request a demo.

Stax Lending Services – Stax offers multiple products as part of the company’s same-day lending solution. These products include:

  – Term loan – for an amount of up to $10 million for a period of six months to as long as three years

  – Revolving line of Credit – a rolling credit limit for an amount of up to $10 million

  – Advance on receivables – for an amount up to $750,000 for a period of three to twelve month

Stax Pricing and Fees

Stax offers comprehensive merchant services with an integrated payments platform with robust features, including merchant accounts, eCommerce, mobile processing, inventory management, invoicing, and billing, reporting, among many more. The company’s pricing model offers excellent value to many merchants, especially eCommerce merchants who have historically paid exorbitant rates to payment processors. Businesses likely benefit most from Stax’s pricing model are those merchants with high-volume companies that can reap the benefits of discounts offered by a fixed-fee plan rather than a certain percentage of their overall card payment volume as they process more. This pricing dynamic has led to the company’s processing over $23 billion in payments for over 22,000 customers and valuing it at $1 billion by private investors.

The company offers payment processing services as integrated packages, with three monthly subscription plans for businesses processing under $5 million annually and custom quotes for those transaction great than that amount. In addition to the subscription fees, merchants pay per transaction interchange fees + $0.08 per transaction for card-present transactions. That amount jumps to $0.15 per transaction + interchange for card not present transactions. The three subscription solutions offered by Stax are the Growth Plan, Pro Plan, and Ultimate Plan, with each successively being more expensive and feature-rich than the previous one.

Unfortunately, Stax is not for everyone. It is not a cost-effective option for small businesses seeking a multi-functional payment platform. On average, if a merchant’s monthly processing of up to $10,000, Stax’s offering may not best serve such a business, in which exploring alternative platforms for competitive prices that offer similar level of services.

One of the great benefits of the monthly subscription model is that the fee covers almost everything besides payment processing. As a result, merchants who typically incur additional costs for services that are generally part of payment processing are now free of that headache.

 

Growth

Pro

Ultimate

Monthly Fee

$99/ month

$159/ month

$100/ month

Swiped/Dipped/Tapped Payment Processing

Interchange + 0% + $0.08/ transaction

Interchange + 0% + $0.08/ transaction

Interchange + 0% + $0.08/ transaction

Card Not Present Payment Processing

Interchange + 0% + $0.15/ transaction

Interchange + 0% + $0.15/ transaction

Interchange + 0% + $0.15/ transaction

ACH transactions

Standard transaction: $0.25/ transaction

Expedited transaction: $1.50/ transaction

Additional fees

Monthly Fee 

None

Batch Fees

None

PCI Fees

None

Set up Fees

None

Gateway Fee

None

Early Termination Fee

None

Given the company’s pricing model, Stax does not impose fees like application fees, account setup fees, or gateway setup fees. However, the actual cost of the gateway provided by third-party vendors, such as Authorize.net or USAePay, may cost additional.

Details Of The Contract Offered and Other Legal Details Of Stax

The standard merchant agreement with Stax via Vantiv is for 36 months and automatically renews for two more years. However, a company representative has confirmed no additional fees for early termination, as mentioned in the merchant application. Additionally, Stax offers a flexible monthly contract without any cancellation fees. As highlighted in our pricing section, the company also states that they do not impose additional costs that should generally be covered as part of payment processing, such as batch fees or recurring monthly or annual charges. That is a welcome reprieve since the standard terms in Vantiv’s agreement include a very punitive form of cancelation fee called liquidated damages, which holds the merchant liable for the number of monthly processing fees for the remainder of the contract.

No class-action lawsuits or FTC complaints against Stax have been identified. Nor has our research turned up any legal cases against the company. However, Stax acquired CardX in 2021, a company involved in several legal cases in defense of their right to use surcharges for “zero-fee” processing.

Although that activity was around a different business activity, the fact that Stax is now the parent company may impact the overall business. However, given that CardX was winning the cases in litigation, it is unlikely to have a material effect on the comprehensive services Stax offers.

Are There Any Complaints About Stax

There have been increasing complaints about Stax’s refusal to provide its merchants with itemized account statements regarding individual transactions and their Interchange fees. Although Stax asserts that the company transparently passes on base Interchange fees, the lack of comprehensive reports makes it difficult to verify the veracity of these claims.

Stax has been accredited with the Better Business Bureau (BBB) since 2020 and currently holds an “A+” rating. Over the last three years, the company has received 29 complaints, with nine related to product or service issues, 12 complaints about billing, and five from sales and advertising issues. Of these complaints, 22 were resolved to the satisfaction of the merchants. The remaining seven either needed to be resolved satisfactorily or had not received a response. That number of complaints is low, given that the company serves over 22,000 customers as of 2022. Furthermore, Stax appears to be making a concerted effort to address those claims, given the high percentage of resolutions to the complaints filed on the BBB website.

Customer Support

24/7 Help & Support

24/7 Live Phone Support
Online Ticketing System via Support Form

Phone Support

24/7 Live Phone Support

Email

Contact through contact form on website available

FAQ and Chat

Live Web Chat Support
Stax Knowledge Base for Business Owners, Software Platforms and Developers

Conclusion

Stax is a Florida-based company founded in 2014 by siblings Sal Rehmetullah and Suneera Madhani. The company offers a range of solutions, including mobile and traditional point of sale, merchant accounts, e-commerce, inventory management, invoicing, and reporting, along with other options. Stax processes payments by partnering with Worldpay and reselling its service to merchants.

The company provides various payment processing services for merchants of all sizes and offers a flat-fee subscription-based pricing model that saves merchants on credit card processing fees. Stax’s business model has helped it grow exponentially and process over 23 billion dollars in payments for over 22,000 customers.

According to our evaluation standards, Stax is a trustworthy merchant account provider with few complaints, despite its recent uptick in complaints that undermine its highly acclaimed pricing model and transparency. They offer transparent and competitive contract terms, making them suitable for both small and large businesses alike. For all merchants, we always recommend; READ THE CONTRAC! That applies no matter how reputable the payment processor is.

GET A FREE QUOTE

HMS Payments Review

HMS Payments

Overall Rating

4.7/ 5.0
get a free quote

In-Depth Analysis

4.7

Price

Ease of Use

Features

Support

Pros

  • Competitive pricing
  • No long-term contract
  • Excellent customer support

Cons

  • Less number of reviews online

Overview

Host Merchant Services (HMS) is a credit card processing company incorporated in Delaware that provides merchant services to various industries, including for-profit and non-profit companies. Their pricing model is exclusively interchange-plus, which is a much more transparent and cost-effective solution for merchants as a merchant services pricing mode. The company has a strong reputation for providing excellent customer service, corroborated by their almost nonexistent complaints on consumer review sites like BBB.

 

HMS is an ideal provider for high-risk businesses, including those that process foreign currency or operate in industries with a traditionally high chargeback or fraud rates. The company also offers various other services, such as payment processing, POS systems, and business cash advances.

 

HMS processes all major debit and credit cards for most business types and offers a wide range of services, including EMV card readers, POS solutions from Clover, Vital POS, and SwipeSimple, mobile solutions, access to payment gateways and virtual terminals, e-commerce solutions, cash discounts, EBT processing, gift and loyalty programs, and cash advances. 

 

With bank sponsorship from Wells Fargo Bank, HMS is a registered Independent Sales Organization (ISO) with Visa USA and MasterCard International. HMS has two offices, one in Newark, Delaware, and the other in Naples, Florida.

 

The founder and CEO of Host Merchant Services, Lou Honick, is a serial entrepreneur with extensive web hosting industry experience, having previously owned and operated HostMySite.com before founding HMS in 2009.

 

The payment processing industry can be complicated, with many large companies making it challenging for merchants to understand their rates and associated fees. HMS stands out by offering personalized service and transparency. Their team cares about customer service and takes the time to explain the process to ensure that merchants understand every item on their statement and that it matches what was promised during the sales process. 

 

If a merchant has a question or problem, they can count on a live person at HMS to assist them and make it right 24/7/365. This level of service may seem simple, but many payment processing companies fail to provide it. Below we evaluate all that Host Merchant Services has to offer.

HMS History and Founder

Lou Honick, as the CEO of Host Merchant Services, has grown the company into a leading provider of credit card and payment processing services for small and medium-sized businesses over the past decade and a half. Before there was Host Merchant Services, there was a different HMS; HostMySite.com Lou began his career in the hosting industry by creating HostMySite.com in 1997, a company he grew from a two-person operation to an industry leader with over 100,000 customers and 240 team members by the time it was acquired by Wachovia Capital, a private equity firm, in June 2008.

 

According to a 2016 report by Harvard Business Review, the top ten most empathetic companies saw a financial value increase of more than double that of the bottom ten companies. Additionally, companies that cultivate emotional connections with their customers experience sales growth that surpasses their competitors by 85%. This is precisely the message Lou preached and put to practice in founding all his companies, which he also summarized in a presentation back in 2005 titled “High Quality Customer Service.”

 

Payment processing has lately emerged as an industry that is starting to focus on the customer, offering transparency on rates and terms and conditions of agreements, making customer services available around the clock, and shunning long-term, noncancelable and punitive contracts. However, that has only transpired over the past few years and only after the more tech-enabled entrants began offering financial technology services, given that the industry was ripe for disruption after decades of bungling the customer experience.

 

After a brief retirement and foray into real estate investing, Lou returned with a new startup in 2009 to revolutionize payment processing by bringing the same customer-centric fervor to the industry that he had heavily focused on when running HostMySite.com.

 

At Host Merchant Services, Lou focuses on creating value for companies by improving their cost savings and customer service through his partnership program, which aims to deliver significant ancillary revenue and increased customer loyalty.

What Is HMS Best At?

HMS’s website now features an extensive Testimonials page showcasing positive feedback from nearly four dozen merchants nationwide. Unlike most testimonials, these reviews offer detailed discussions of particular features that merchants found helpful for their specific use case.

Customers appreciate various aspects of HMS’s services, such as:

Exceptional Customer Service – The company’s customer service team goes above and beyond to resolve any issues that arise.

Competitive Pricing – Interchange-plus pricing is available without the need for special requests, making it very appealing to merchants.

No Long-Term Contracts – HMS avoids locking merchants into long-term payment processing contracts. The company firmly believes that merchant services providers cannot and should not attempt to retain their customers through convoluted legalese or arduous long-term agreements.

In addition to referrals from satisfied customers, HMS gains most of its customers through direct outreach to local brick-and-mortar companies. The company tailors its products and services to each client and explains its fair interchange-plus pricing system to close sales effectively. Furthermore, HMS fosters client loyalty by providing attentive customer service and establishing secondary partnerships. Its reputation speaks to the company’s success in this regard.

Plans & Pricing

Industry Payment Processing Rates
RetailInterchange + 0.25% + $0.10 per transaction
RestaurantInterchange + 0.20% + $0.09 per transaction
eCommerceInterchange + 0.35% + $0.10 per transaction
  
Payment Gateways OptionFee
Transaction Express (basic)$5.00 per month
Transaction Express (full-featured)$10.00 per month
Authorize.Net$9.00 per month + $0.05 per transaction
NMI Gateway (basic)$7.00 per month + $0.06 per transaction
NMI Gateway (bundled)$10.00 per month + $0.08 per transaction
  
ServiceFee
Address Verification Service (AVS)$0.00
Application/Setup Fees$0.00
Early Termination Fee$0.00
PIN Debit/EBT Fee$0.00
Account Fee$14.99 per month
Batch Processing Fee$0.20 per batch
Chargebacks$15.00 per incident
Retrievals$20.00 per retrieval
PCI Compliance Fee$49 per year
Voice Authorization$0.75 per authorization
1099 Reporting Fee$24.00 per year
Industry Payment Processing Rates
Retail
Interchange + 0.25% + $0.10 per transaction
Restaurant
Interchange + 0.20% + $0.09 per transaction

HMS Products and Services

Host Merchant Services (HMS) offers a range of products and services to help merchants accept and process payments. Some of the key products and services provided by HMS include:

Payment Processing

  • HMS allows merchants to accept credit and debit card payments from customers, including MasterCard, Visa, American Express, and Discover. HMS also offers Automated Clearing House (ACH) processing services, allowing merchants to accept electronic payments directly from customers’ bank accounts.
  •  

HMS provides conventional merchant accounts with interchange-plus pricing for brick-and-mortar and online businesses and tailored accounts with customized pricing for various companies, such as high-risk industries, nonprofits (HMS Gives), and merchants with large or small transactions. Electronic Merchant Systems offers high-risk services, while international acquiring partners facilitate offshore accounts through HMS. More information on these options is available under the “Merchants” section on the website. However, it is advisable to contact HMS directly to determine if your business meets the criteria.

 

HMS has introduced a new program named the “Free Payment Processing” program, which offers a cash discount to customers. This program automatically adds the credit card processing fees to the advertised prices but later provides a discount during checkout for customers who pay with cash or debit cards. Customers prefer cash discounting, unlike adding an unexpected surcharge while paying with a credit card. This program is free for merchants processing $5,000 or more per month, and if the business processes less than that, they can still enroll in the program by paying $20 per month. However, the program is limited to companies that do not require the “tip adjust” function when processing transactions.

Mobile Payment Processing

HMS allows merchants to accept payments on the go, using a smartphone or tablet, offering merchants the option of both SwipeSimple and Vital. Both choices can attach to the merchant’s mobile devices and connect with their respective apps on the go.

Point of Sale (POS) Systems

  • HMS offers a range of POS systems, including traditional countertop terminals, mobile POS devices, and integrated POS systems that can be customized to meet the unique needs of each merchant. Host Merchant Service’s Bonsai POS solution could interest retail businesses and restaurants. 
  •  
  • The HMS team developed this software specifically focusing on the hospitality industry, aiming to provide a high level of support, customization, and automation at a lower cost than competing upmarket POS systems. Additionally, HMS offers a variety of other POS systems. including Clover, Bonsai, Vital, and SwipeSimple. Below is some information about the company’s most popular POS products;
 

Clover

HMS has a team of payment systems experts available to assist merchants in selecting the appropriate Clover POS ecosystem based on their specific needs. Whether they own a restaurant, food truck, farmers market stand, retail store, or mobile service business, with a Clover POS, there is a solution!

 

All of Clover’s POS systems are modern, streamlined, and seamless in design, ensuring that merchants and their customers will be impressed with the efficiency, speed, and sleek appearance of whichever system is chosen. All the systems are designed to simplify daily tasks, expedite transactions, and efficiently manage team members. Of course, when businesses are considering the various systems, there are some considerations to remember:

Is the system used on a large or tight counter space? Will it be used while traveling to events and require a portable system?

Is there a need for a system with a built-in printer or printing capabilities? Do emailed receipts suffice?

Do you want to purchase or lease the system? What does your budget look like?

Do you require additional features, such as a cash register drawer, a barcode scanner, or a mobile tablet? It’s important to keep in mind that not all of this has to be decided immediately. As businesses grow and evolve, these features can be added later to meet changing needs.

Clover offers several models, including the Clover Station POS (Duo and Solo), Clover Mini POS, Clover Flex POS, and Clover Go POS. These POS systems are designed to simplify payment processing, regardless of the size of your business or whether you have a physical storefront or are constantly on the go.

Bonsai

HMS has a team of payment systems experts available to assist merchants in selecting the appropriate Clover POS ecosystem based on their specific needs. Whether they own a restaurant, food truck, farmers market stand, retail store, or mobile service business, with a Clover POS, there is a solution!

Through HMS, merchants can also set up Bonsai Pro Workstation, a powerful touchscreen POS system perfect for restaurants and retail businesses. This POS solution supports EMV, NFC, and magstripe payments for seamless transaction processing. 

 

Designed with speed and efficiency in mind, the Bonsai POS system helps different team members of businesses do their job faster and easier, whether they’re a waitress, store managers, hairdressers, or anything in between. With super-responsive order entry and real-time sales and staffing analytics, Bonsai simplifies all aspects of running your business. 

 

Access inventory, sales numbers, and staffing hours quickly with Bonsai’s real-time analytics and make informed decisions based on the information received. 

 

This solution allows businesses to easily manage their location by incorporating in-person and online sales, online appointment scheduling, and more. Customization options are also available with the Bonsai point of sale system by starting with a complete workstation and adding the necessary components, such as additional stations, printers, barcode scanners, or scales, to meet the business’s needs.

Mobile Point of Sale Systems

HMS offers e-commerce payment gateways, allowing merchants to securely accept payments through their websites, making it easier for merchants to accept online payments. 

 

The company provides Transaction Express, a virtual terminal and integrated in-house gateway that supports various features, including tokenization, encryption of customer data, ACH services for recurring billing, check imaging, wireless processing, batch processing, and multilocation networking.

 

Additionally, HMS offers the Authorize.Net gateway at a lower monthly price than buying directly from the company. The HMS website provides detailed information about the many other third-party gateways the company supports.

It is interesting to note that Host Merchant Services offers its own in-house payments gateway specifically designed to cater to the needs of the merchants that the company works with, iterated over the years, and with consistent feedback from businesses. The in-house solution is called HMS Pay; some of its features include;

Payment Gateway and Virtual Terminals

  • HMS offers up-to-date terminals for brick-and-mortar operations. If merchants process over $20K monthly, they may be eligible for at least one free EMV card terminal upon signup. If you process a lower volume, you can negotiate a favorable deal on terminal purchases through HMS. 
  •  
  • HMS provides a comprehensive overview of its current lineup on the company’s Credit Card Machines web page, featuring models from PAX, Ingenico, Verifone, Dejavoo, and other manufacturers. All models support EMV payments; some also support NFC-based payment methods like Apple Pay and Google Pay.
  •  
  • Although prices are not disclosed, HMS offers to reprogram your existing terminals at no additional cost, and the company is opposed to terminal leases.

With HMS Pay, you can quickly authorize various payment types from a single virtual terminal, including major credit cards, signature debit cards, and e-Checks.

HMS Pay has an electronic invoicing suite, allowing you to collect payments by simply emailing your customers.

HMS Pay has check processing built into the virtual terminal if you prefer to process checks instead of credit cards.

Store all your customer information, including multiple payment methods, in one easy-to-use interface, with all sensitive data tokenized for added security and peace of mind.

Set up subscription-based payments that fit your needs with HMS Pay’s recurring billing and scheduled payment options.

  • Easily charge processing or technology fees with HMS Pay’s automated surcharging capability.

Businesses can seamlessly integrate with leading shopping carts, ERPs, CRMs, billing software, and more using HMS Pay.

Reduce chargebacks and false declines with HMS Pay’s support for 3D secure transactions, which protects merchants from “friendly fraud.”

Level 3 payment processing is a specific type of credit card transaction that includes detailed data beyond the basic transaction details (like the amount, date, and merchant name). This additional data includes line-item details such as product codes, quantities, and taxes, which provide more information about the nature of the transaction.

 

Level 3 data is typically used for business transactions, especially in B2B scenarios where large transactions are common. By providing more detailed information about a transaction, Level 3 processing can help reduce the risk of fraud, improve transaction accuracy, and provide greater transparency and accountability.


It’s important to note that not all merchants or payment processors support Level 3 processing. However, HMS Pay can handle Level 3 Processing, providing higher security when accepting payments.

  • HMS Pay is PCI DSS compliant and adheres to the latest industry security standards. Compliance with PCI DSS is essential for any organization that accepts credit card payments, as non-compliance can result in significant financial penalties, as well as damage to a business’s reputation and loss of customer trust.
  •  

The PCI DSS specifies a range of security measures that organizations that handle credit card payments must follow to protect sensitive cardholder data. These measures include things like the use of firewalls, encryption of data, regular security testing, and the implementation of secure network and system configurations.

PCI Compliance Protection

HMS has partnered with Trustwave to provide PCI compliance services and includes $100,000 of data breach insurance with all merchant accounts. Although merchants can decline this coverage, we strongly advise against it.

 

Merchant Working Capital Solutions

Host Merchant Services provides merchant cash advances ranging from $5,000 to $500,000 for businesses that require funding for launch or expansion. Funding can be obtained in as little as 24 hours. However, before taking a merchant cash advance, it is essential to fully understand what it entails, compare options carefully, and consider alternatives. 

 

Nonetheless, suppose a merchant decides to pursue a merchant cash advance. In that case, there are benefits to obtaining it through your payment processor as it simplifies payment without the need for complex external arrangements or switching processors.

Gift Card and Loyalty Program

Utilizing gift and loyalty cards can effectively promote repeat business. Host Merchant Services provides complete solutions for gift cards, loyalty cards, or a combination program. The details regarding the program costs, reloadable cards, and customization options can be easily obtained by contacting the company’s Sales team.

Reporting and Data Analytics

HMS offers reporting and data analytics tools, providing merchants valuable insights into their payment processing operations, including sales trends, customer behavior, and more.

Furthermore, Host Merchant Services (HMS) serves high risk merchants. High-risk merchants are businesses with a greater risk of fraud, chargebacks, or other issues impacting the payment processing industry. This can include companies in sectors such as adult entertainment, travel and timeshare, telemarketing, etc.

HMS recognizes that high risk merchants have unique needs and requirements for payment processing and provides them with the tools and resources they need to process payments safely and securely. The company offers various services designed to help high risk merchants manage their payment processing operations effectively, including custom pricing solutions, specialized fraud prevention tools, and dedicated customer support.

High risk merchants need to choose a payment processing company that understands their needs and is equipped to provide the required services and support. By working with HMS, high risk merchants can access the tools and resources they need to process payments quickly, securely, and cost-effectively while protecting their customers’ payment information and reducing the risk of fraud.

Customer Support

From experience and the reviews left by the users of HMS, this merchant service provider supports its customers via:

24/7 Help & Support

24/7 Domestic Customer Service

Support

API and Third Party Integrations Support

Email

Email assistance at [email protected]

Knowledge Base

Online Knowledge Base for Merchant Services Information

HMS Support Explained

HMS lives by its motto of “service first” and offers a top-notch customer journey from day one. All merchants that are new customers of HMS and handed off from the Sales team to the company’s onboarding team, which guides customers through the setup and onboarding process. Furthermore, merchants can access the company’s account management team for ongoing follow-up, which works in unison with the support team. Customer support is available 24/7/365, and the company’s in-house US-based support team personally reviews and follows up on all support conversations.

The company’s website contains a mix of older articles and a recent blog focusing on industry news and topics relevant to card processing merchants. This content is frequently shared on HMS’s Twitter and Facebook pages.

HMS also provides on-site troubleshooting for malfunctioning terminals within approximately 150 miles of its Newark, Delaware, and Naples, Florida offices. This local touch likely contributes to the company’s high customer satisfaction rate, particularly for New England or Florida businesses.

Details Of The Contract Offered and Other Information On HMS Sales Practices

HMS guarantees that its customers will never need to switch again, unlike some who have gone through five or more merchant services companies before finding HMS. The company stands out among merchant services providers for its transparency in publicizing processing rates on its website. The company discloses most information online, although the costs of a few hardware devices are not included. The company’s website layout is user-friendly and contains a wealth of information.

HMS primarily uses an in-house sales team to market and set up accounts but also offers an ISO agent program. However, unlike other vendors in the processing industry, HMS appears to keep a tight rein on its independent agents, and there have been no complaints about the company’s sales practices.

With HMS, there are no long-term contracts or early termination fees. The merchant agreement includes a waiver of any cancellation fees, and the Partnership FAQ guarantees to pay up to $250 in owed early termination fees for referred customers. If a referral client processes over $50,000 monthly, HMS will pay $500 as a referral fee. While this deal may only apply in a referral situation, it doesn’t hurt to ask if you are considering HMS and facing an early termination fee with another provider.

Are There Any Complaints About HMS

Host Merchant Services has been in business for several years, but limited reviews are available to assess customer satisfaction. While this is not necessarily a negative indication, it leaves potential customers with less information to consider. Those who have worked with HMS are encouraged to share their experiences to provide insight for others.

HMS has been accredited by the Better Business Bureau since 2011 and holds an A+ rating. The BBB website has had no complaints against the company in the past three years. Other common review platforms such as Yelp, Ripoff Report, and Google Reviews also do not have any reviews for HMS.

The HMS website has several testimonials with full names and business names praising the company for its excellent support, cost savings, and seamless credit card acceptance process. The company actively promotes interchange-plus pricing and provides information on this pricing structure for those unfamiliar with it. Interchange-plus pricing is available for mobile, e-commerce, and retail merchant accounts. The company does not engage in deceptive advertising.

With such a low number of complaints, there are no apparent patterns of common problems. However, potential customers are advised to carefully review their contract documents before signing up and take advantage of HMS’ excellent customer support if they encounter any issues.

Verdict

Overall, Host Merchant Services is a reliable credit card processing company that offers transparent pricing, exceptional customer service, and a range of services to different businesses, including high risk ones. The founder and CEO, Lou Honick, is a serial entrepreneur with extensive experience in the industry, where he learned the importance of customer centricity for customers. 

 

The company guarantees no long-term contracts or early termination fees, and they have an outstanding support team that ensures a top-notch customer journey. Overall, HMS is an ideal choice for businesses looking for personalized service and transparency in their payment processing.

Get a free quote

Stripe Payments Processing Review

Stripe

Overall Rating

4.5/ 5.0
Get free quote

In-Depth Analysis

4.5

Price

Ease of Use

Features

Support

Pros

  • Wide range of payment types accepted
  • Globally used and accepted
  • Good quality API and documentation

Cons

  • Difficult for non-tech people to handle

Overview

Business owners have many administrative tasks to perform regularly; payment processing is crucial to keep the business running and cash flowing in. In order to accept card payments, a merchant account is necessary. Stripe and other payment service providers have become popular with many merchants.

Stripe is a San Francisco, California-based Financial Technology company that provides a payment gateway for online and mobile payments. It was founded in 2010 by John Collison and Patrick Collison.

 

Stripe offers a suite of payment APIs that enables businesses to accept payments over the internet. Its platform supports various payment methods, including credit and debit cards and alternative payment methods such as Alipay, Apple Pay, and Google Pay. Stripe also provides recurring billing, fraud prevention, and subscription management features.

 

In addition to its payment gateway, Stripe provides various tools and services to help businesses manage their financial operations, including invoicing, accounting, and reporting. The company also offers several integrations with other software and platforms, such as e-commerce platforms, invoicing systems, and accounting software.

 

Stripe is widely used by businesses of all sizes, from small startups to large enterprises. It is known for its ease of use, flexible pricing, and developer-friendly APIs, making it a popular choice for businesses that want to integrate online payments into their operations.

 

 

Below we’ll explore Stripe’s products and services, pricing structure, terms and conditions, and other legalities that merchants must abide by to maintain a Stripe account, and what has made the company stand out among the competition.

Stripe History and Founder

Founded in San Francisco, California, in 2010 by John Collison and Patrick Collison, both brothers who were born and raised in Ireland, and both had an early interest in technology and entrepreneurship. John was just 17 years old when he dropped out of college to start his first company, and Patrick was just 19 when he co-founded Automatic, a company that was eventually acquired by Live Nation.

 

The inspiration for Stripe came from their own experiences trying to build businesses and accepting payments online. They saw that the process was slow, complex, and fraught with security risks, and they felt there must be a better way. They decided to build a payment platform that would be simple, fast, and secure, with a focus on developer experience.

 

The Collisons launched Stripe in 2010, intending to make it easy for developers to add online payments to their applications. They started by building simple APIs that would allow developers to accept payments without worrying about the complexities of payment processing, fraud prevention, and security. Over time, they added new features and expanded the platform to support various payment methods and use cases.

 

Stripe quickly gained traction, and by 2012, the company had raised $18 million in funding from some of the top investors in Silicon Valley. Over the years, Stripe has continued to grow and expand. It has become one of the leading payment platforms in the world, serving millions of businesses and processing billions of dollars in payments every year. Today, Stripe is known for its focus on innovation, commitment to making commerce better for everyone, and user-friendly platform that helps businesses grow and succeed.

 

As a result, at its peak in 2021, the company was the most valuable private company funded in Silicon Valley, valued at $95 billion . However, fortunes at Stripe have changed as of late. In raising $6.5 billion, the company recently had a down round, cutting its private valuation by about half to $50 billion.

 

Some see this down round reflective of the state of eCommerce in the US, which peaked in 2021 but has lagged as of late. Others point out that the company is a bellwether of tech startups’ market conditions, which had a heyday in 2020 and 2021, pulling demand forward in spending during that time, only to be normalized today, serving as a harbinger of the market and economic conditions.

 

Nonetheless, raising over $6.5 billion in an environment when economic conditions seem to be at a precipice of recession and when venture capital funding has pretty much dried up is a testament to the company’s position of strength.  

What Is Stripe Best At?

Stripe is best known for its payment processing capabilities and focus on innovation and user experience. The company has a suite of products that make it easy for businesses to accept payments, manage recurring billing, and grow their revenue. Some of the critical areas where Stripe excels include:

Payment Processing: Stripe’s core product, Payments, enables businesses to accept payments online and in person easily. The platform is known for its ease of use, fast and secure payment processing, and global reach.

 

User Experience: Stripe is dedicated to making it as simple and seamless as possible for businesses to get set up and use their services. As can be witnessed from the company’s products and services lineup, Stripe focuses on innovation and user experience. It constantly develops new products and features to help businesses grow and succeed in almost every aspect of the company.

 

Global Reach: Stripe operates in over 47 countries worldwide and allows the acceptance of over 135 currencies, making it easy for businesses to expand globally and reach new customers. The company supports multiple currencies, local payment methods, and language options, making it easy for companies to operate in various countries and get a global audience.

 

A bevy of ancillary services: Stripe offers many tertiary services to cater to all types of business needs. The entire service stack offered by Stripe tends to pile up in terms of fees, however, whether a merchant needs to register a business, open a bank account, implement advanced fraud management solutions, mitigate against chargebacks, or collect the applicable taxes across multiple jurisdictions, Stripe has a solution and the entire process is automated.

Overall, Stripe is best at providing a suite of payment processing and financial infrastructure products designed to help businesses grow and succeed. Whether a small startup or a large enterprise, Stripe has the tools and resources needed to succeed in today’s digital economy.

Stripe Products and Services

Stripe is a global technology company that operates in many countries worldwide. Stripe offers its services in over 47 countries, including the United States, Canada, the United Kingdom, Australia, and much of Europe, allowing businesses to accept more than 135 currencies.

 

Stripe’s business provides payment processing and financial infrastructure for businesses of all sizes. The company offers a suite of products, including payments, subscriptions, billing, and more, that make it easy for companies to accept payments, manage recurring billing, and grow their revenue.

 

In addition to its global reach, Stripe is known for its focus on innovation and user experience. The company is dedicated to making it as simple and seamless as possible for businesses to use their services. They are constantly developing new products and features to help companies to grow and succeed.

 

 

Given Stripe’s global footprint in many countries around the world, providing payment processing and financial infrastructure to businesses of all sizes, whether you’re a small startup or a large enterprise, Stripe aims to offer merchants the tools and resources needed to grow a business and succeed in today’s digital economy. Stripe offers several products, each with its pricing model. Here is a high-level overview of Stripe’s top products and services:

Payments – Stripe’s core product enables businesses to accept payments online and in person. The company markets this as global reach and local expertise, offering support for cardholders available in over 195 countries; businesses are offered local payment methods that are sure to streamline conversion rates and improve customer journeys. Stripe strives to take over each new country’s technical and complex regulatory nuances, allowing businesses to concentrate on – the business.

 

Subscriptions: This product allows businesses to manage recurring payments and subscriptions.

 

Billing: This product provides invoicing, billing, and revenue recognition features for businesses and is offered as an add-on service offering, and there is no additional fee for using this product.

 

Connect: This product enables businesses to pay out to other companies and individuals using Stripe.

 

Stripe Terminal: This product provides a point-of-sale system for in-person payments. By providing versatile developer tools, pre-certified card readers, and cloud-based hardware management, Terminal enables merchants to integrate their online and offline channels seamlessly.

 

Businesses can offer their customers a seamless experience across channels, such as reserving online and picking up in-store, by integrating Stripe Terminal into their mobile and web applications using the company’s software development kits. 

 

This enables merchants to customize the in-store checkout flow. Furthermore, integrating Stripe allows them to manage all their online and offline sales in one place, simplifying reporting and reconciliation while providing a unified customer view. The Stripe Terminal is compatible with Stripe Payments, Connect, and Billing, making it easy to streamline operations.

 

Stripe Checkout – this is a prebuilt, hosted payment page optimized for conversion. Whether businesses offer one-time purchases or subscriptions, they can use Checkout to accept payments online easily and securely.

 

Stripe PaymentLinks – a no-code payment solution. Merchants can start accepting payments quickly and without any coding by creating Payment Links, which allow you to sell products or services, start subscriptions, or collect donations. Businesses can customize the look of the links to match their brand and share them anywhere, with the same link being used across multiple channels. Once payment is received, they will receive a notification, and the funds will be deposited into their bank account.

 

Stripe Elements – Stripe provides a suite of customizable UI building blocks to design a secure and optimized payment experience that matches the look and feel of merchants’ branding and website. These components are easily customizable with CSS-level styling and come equipped with built-in accessibility features, input masking, autofill, and more, saving development time and reducing user confusion. 

 

By integrating with Stripe, businesses can access 25 payment methods and manage them from a single Dashboard, making it easier to reach more customers and unlock new markets. Stripe’s platform also meets industry certification standards to help keep payments safe and reduce compliance burdens for your business.

 

Stripe Apps and Integrations – Stripe partners provide organizations with the necessary tools and support to accelerate their business at any stage. These partners drive innovation, offer financial services, and transform financial infrastructure to enable the expansion of companies into new markets, both locally and globally. Organizations can streamline their operations and unify their reporting by integrating existing technology stacks, automating processes, and simplifying workflows. Stripe Apps provide additional support for businesses to set up recurring invoices or subscriptions and streamline tax collection and calculation.

 

Stripe Tax – this is a solution that automates tax calculations and collections for businesses, enabling them to comply with tax laws and regulations in over 130 countries and most US states. The service simplifies tax compliance and helps companies to focus on scaling their operations. With Stripe Tax, businesses can add a single line of code or click a button in the dashboard to start collecting taxes globally, know where to register for taxes, automatically calculate and collect taxes, and file and remit taxes with ease using comprehensive reports. Stripe Tax validates the EU VAT ID and Australian ABN number when necessary and accurately calculates the right amount of tax to be collected based on the customer’s precise location.

 

Stripe Atlas – this platform helps entrepreneurs launch their startups by simplifying the process of forming a company. By filling out a short form, Stripe Atlas creates the legal framework for a company, files the necessary paperwork, and applies for the Tax ID number to have a business set up within a few days. The platform also allows issuing stock to founders and activating a Stripe account to start accepting payments. Additionally, Stripe Atlas provides access to a supportive community for personalized help and learning best practices.

 

 

Stripe Revenue Recognition – Stripe Revenue Recognition is a solution built into the Stripe platform that automates and simplifies the accrual accounting process for businesses, allowing them to close their books quickly and accurately. When it comes to getting a business’s financial statements compliant with IFRS 15 and ASC 606 revenue recognition standards, it’s better to leave it to the experts. Sure you can pay more to an accountant to do that, or businesses can also cut down on both time and expenses by using this feature.

With Revenue Recognition, businesses can gain a complete view of their revenue, including subscriptions, invoices, and payment transactions stored in Stripe. The solution can also integrate with other third-party data sets to pull in data on revenue, fulfillment schedules, and service terms to consolidate all revenue data in one place.

 

 

Automated revenue reports and dashboards provide insights into business performance with prebuilt reporting tools. Furthermore, custom rules can be created and automated to apply to certain types of transactions that cater to a business’s nuances. For example, a certain business may have a certain life cycle of services and other solutions offerings. Based on specific accounting regulation, it may need to be recognized in a certain manner or over a period of time, which can be fed into Stripe’s product, giving the business and its accounting team a complete history and overview of any client, with an audit trail down to any specific transaction. 

Stripe Pricing and Fees

Stripe’s pricing structure is based on a transaction fee model. For most products, the pricing consists of two components: a percentage of the transaction amount and a fixed fee per transaction. It’s worth noting that the exact pricing for each of these products can vary depending on the country, currency, and volume of transactions. Stripe offers a transparent pricing model with no hidden fees, so you can easily see precisely what they’ll be paying before you sign up. Stripe provides a free trial for new customers, so you can test the platform and see if it’s right for your business before committing to a paid plan.

 

The exact percentage and fixed fee vary depending on the product and the country, but generally, the transaction fee ranges from 2.9% + 30 cents to 3.4% + 30 cents per transaction. For example, if you process a payment of $100, the transaction fee would be $3.20 ($2.90 + 30 cents).

 

Although Stripe’s pricing is transparent and there are no hidden fees, there are other fees for specific features or services in addition to the transaction fee, such as currency conversion, chargebacks, or high-risk transactions. In fact there are a slew of fees that we uncovered for everything ranging from tap to pay transactions to point to point encryption of transactions.

 

 

The company provides a simple pricing model, so merchants can easily understand the cost of using their services. We reviewed Stripe breakdown of all their fees and have gone ahead in presenting a summarized tabulation of that breakdown so merchants can easily see and understand precisely what they’ll be paying before signing up.

Payment method

Integrated Pricing

Customized Pricing

Online and eCommerce payments

2.9% + $0.30

Customized plan offering

Payments via Wallets

2.9% + $0.30

Customized plan offering

Payments via International Credit Cards

Additional 1% + $0.30

Additional 1% + $0.30

Payments requiring currency conversions

Additional 1%

Additional 1%

Hosted Invoices

3.3% + $0.30

Customized plan offering

Keyed-in Payments

3.3% + $0.30

Customized plan offering

Stripe Terminal Payments

2.7% + $0.05

Customized plan offering

Payment via ACH Credit

$1.00 each

Customized plan offering

Wire transfers

$8.00 each

Customized plan offering

Payment via Checks received

$5.00 each

Customized plan offering

Bounced check fee

 

Payment via ACH Direct Debit – Standard Settlement

0.8% – maximum of $5.00

0.8% – maximum of $5.00

Payment via ACH Direct Debit – 2-day settlement

1.20%

1.20%

Payment via ACH Direct Debit – failed payment

$4.00 each

$4.00 each

Payment via ACH Direct Debit – disputed payment

$15.00 each

$15.00 each

 

 

 

POINT OF SALE

 

 

Stripe Reader M2

$59.00

$59.00

BBPOS WisePOS E

$249.00

$249.00

Contactless Payments

$0.10 per authorization

$0.10 per authorization

Point to Point encryption (P2PE)

$0.05 per authorization

$0.05 per authorization

 

 

 

ANCILIARY SERVICES

 

 

Stripe Billing

0.50%

0.50%

Stripe Checkout with Custom domain listing

 $10 per month 

 $10 per month 

Stripe Invoicing

0.4% per paid invoice

0.4% per paid invoice

Stripe PaymentLinks

$0.00

$0.00

Stripe Checkout

$0.00

$0.00

Stripe Checkout with Custom domain listing

 $10 per month 

 $10 per month 

Stripe Connect – Standard

$0.00

$0.00

Stripe Connect – Custom/ Express

Starting at 0.25%

Starting at 0.25%

Stripe Tax

0.50%

0.50%

Stripe Revenue Recognition

0.25%

0.25%

Stripe Radar

$0.00

$0.05 per screen

Stripe Radar for fraud monitoring departments

$0.02 per screen

$0.07 per screen

Chargeback Protection

0.4% per transaction

0.4% per transaction

Stripe Atlas

$500 

$500 

Stripe Gift Cards – Digital

$0.10 per card

$0.10 per card

Stripe Gift Cards – Physical

$3.00  per card

$3.00  per card

Stripe Gift Cards – Disputes

$15 per dispute

$15 per dispute

 

 

 

FEES

 

 

Set up fees

$0.00

$0.00

Monthly fees

$0.00

$0.00

3D Authentication

$0.00

$0.03 per attempt

Card account updater

$0.00

$0.25 per update

Adaptive Acceptance

$0.01

0.008

Instant payouts

$0.01

0.01

Post-Payment invoicing

0.4% – maximum of $2.00

0.4% – maximum of $2.00

Stripe Financial Connection

 

 

Instant bank verification

$1.50 per verification

$1.50 per verification

Balance Verification

$0.10 per API call

$0.10 per API call

Account Owner Verification

$1.50 per API call

$1.50 per API call

Transaction feed

$0.30 per account per month

$0.30 per account per month

Identity Lookup 

$1.50 per verification

$1.50 per verification

Identity Verification

$0.50 per lookup

$0.50 per lookup

 

 

 

Details Of The Contract Offered and Other Legal Details Of Stripe

Stripe operates month-to-month, and no long-term contract is required to use their services. This means merchants can start or stop using Stripe anytime without incurring penalties or termination fees.

When you sign up for Stripe, you must agree to Stripe’s Terms of Service and Privacy Policy. These agreements outline the terms and conditions of using Stripe’s services, including payment processing, security, and liability details. The agreements are updated from time to time, so it’s essential to review them periodically to stay informed about any changes.

 

In addition to the Terms of Service and Privacy Policy, Stripe may also have specific agreements with certain merchants, such as enterprise agreements or custom pricing agreements. These agreements are tailored to the needs of individual merchants and may include additional terms and conditions beyond what is outlined in the standard Terms of Service.

 

 

Overall, Stripe provides a flexible and transparent contract that allows merchants to use their services month-to-month without being locked into a long-term commitment, making it easy for businesses to start accepting payments quickly without worrying about any long-term lock-ins via contractual obligations.

Customer Support

From experience and the reviews left by the users of Payment Depot, this merchant service provider supports its customers via:

24/7 Help & Support

Technical Developer Assistance Available via Discord

Phone Support

Phone Support Available via Request

Email

General Support Inquiries Email [email protected]

FAQ

Live Chat Assistance Online

Are There Any Complaints About Stripe

While Stripe is widely regarded as a top player in the payment processing industry, some merchants have expressed specific complaints about the company and its services. Here are some of the most common complaints I’ve seen:

High Transaction Fees: Some merchants have expressed dissatisfaction with Stripe’s transaction fees, which can be higher than those of other payment processors. Some merchants feel the fees are too high, especially for low-volume businesses.


Limited Customer Support: Some merchants have reported that customer support from Stripe can be limited or slow to respond. Some merchants have also expressed frustration with needing a dedicated account manager or support team. However, it is also important to clarify that Stripe’s enterprise customers are assigned a dedicated account manager to directly handle any inquiries that customers face or need help with.


Complex Integration Process: Some merchants have found the integration process with Stripe complex, especially for businesses new to online payments. Some merchants have reported difficulties setting up the platform and connecting it with their existing systems and processes.


Limited Customization Options: Some merchants have expressed dissatisfaction with the limited customization options available with Stripe. For example, some merchants would like more control over the appearance and branding of the checkout process, but these options are currently limited with Stripe. 


Issues with Dispute Resolution: Some merchants have reported issues with the dispute resolution process with Stripe. Some merchants have expressed frustration with the time it takes to resolve disputes and the lack of clarity around the dispute resolution process.

Finally, we witness a common theme among some reviews in which customers reported being charged a transaction fee of 2.9% by the company even after issuing refunds. Stripe explicitly states on its website that while there are no fees for refunding a payment, the original payment’s fees will still be applicable upon refund. 

 

This practice can be disconcerting for some business owners who may be accustomed to only paying a flat fee of $.30 for refunded transactions instead of the entire percentage fee as well. Although this is a standard practice for many credit card payment providers, Stripe charges a percentage fee for the entire transaction amount for refunded transactions. This is something all merchants should be cognizant of, especially since Stripe does not accept most high-risk industries, there are still certain types of normal-risk businesses that may experience higher refund rates.

 

 

It’s worth noting that these complaints are not universal, and many merchants are satisfied with Stripe and its services. However, considering using Stripe, it’s essential to consider these potential issues and weigh them against the platform’s benefits.

Conclusion

In conclusion, Stripe has become one of the leading payment processing companies in the world, offering a suite of payment APIs and other financial tools that make it easy for businesses to manage their operations and accept payments online. The company was founded in 2010 by brothers John and Patrick Collison, who saw an opportunity to make payment processing faster, more secure, and more accessible for businesses of all sizes.

 

Over the years, Stripe has grown to become one of the most valuable private companies funded in Silicon Valley, valued at $95 billion at its peak in 2021. However, that valuation has come down lately,  given the large drawdowns in the stock markets worldwide over the past year, particularly for tech and payments companies. In fact, based on internal documents of Stripe, the company self-corrected its valuation figures internally early in 2023. Currently, the company is trying to raise capital at a valuation ranging between $55 and $60 billion dollars.

 

The company’s global reach, user-friendly platform, and commitment to innovation make it a popular choice for businesses that want to integrate online payments into their operations. Whether accepting payments online or managing recurring payments and subscriptions, Stripe offers a range of products and services to help businesses grow and succeed in today’s digital economy.

 

Over the years, Stripe has grown to become one of the most valuable private companies funded in Silicon Valley, valued at $95 billion at its peak in 2021. However, that valuation has come down lately, given the large drawdowns in the stock markets worldwide over the past year, particularly for tech and payments companies. In fact, based on internal documents of Stripe, the company self-corrected its valuation figures internally early in 2023. Currently, the company is trying to raise capital at a valuation ranging between $55 and $60 billion dollars.

 

 

The company’s global reach, user-friendly platform, and commitment to innovation make it a popular choice for businesses that want to integrate online payments into their operations. Whether accepting payments online or managing recurring payments and subscriptions, Stripe offers a range of products and services to help businesses grow and succeed in today’s digital economy.

get a free quote

PaymentCloud Review

PaymentCloud

Overall Rating

4.3/ 5.0
get a free quote

In-Depth Analysis

4.3

Price

Ease of Use

Features

Support

Pros

  • High Approval Rates
  • Competitive Rates
  • No Hidden Fees

Cons

  • Limited Customer Support

Overview

PaymentCloud is a Woodland Hills, California-based merchant services provider founded in 2015 that focuses on catering to several industries, particularly merchants categorized as high risk. The payment processor is said to be serving thousands of businesses.

 

PaymentCloud is a go-between that matches businesses that require merchant account services and the payment processing industry, including payment gateways, payment processors, and numerous acquiring banks. The company’s services allow merchants of multiple industries and risk profiles to start accepting multichannel noncash payments, including ACH, eChecks, mobile and digital wallets, and credit and debit cards from all card networks such as AMEX, Mastercard, Visa, etc.

 

In 2020, PaymentCloud acquired Paysley to expand the company’s offering into the mobile point of sale market, offering businesses to process payments via a mobile app that replicates point of sale workflows on the go.

 

Merchants can now set up payment gateways, virtual terminals, shopping carts, and physical point of sale terminals equipped with the latest NFC and EMV technology to start accepting payments due to PaymentCloud’s service offering.

 

PaymentCloud’s merchant account services also let businesses set up a “zero-card credit card processing.” This plan does not charge the merchant any interchange fee for processing credit card payments. Such fee structures pass the interchange fees onto the consumer using credit cards. Such a program is often called Cash Discounting or a Surcharge in industry jargon.

 

 

In our review of PaymentCloud, we look at how the company operates, when it was founded, what type of services the company offers, PaymentCloud’s target market, the rates charged, and any additional fees the company levies on merchants. We will explain how well businesses rate PaymentCloud’s service offerings, if there is any litigation the company is involved in, and how well PaymentCloud ranks in comparison to other payment processors. 

PaymentCloud History and Founder

Shane Silver started PaymentCloud in 2015, focusing on the high risk niche of merchant services. Before starting the company, Mr. Silver built his career in the high risk services division of iPayment. The company went through its first round of funding in June 2021, where the company raised $10 million in a credit facility from Expresso Capital.

 

The next round of funding was in the following year, in June 2022, raising $35 million from Electronic Merchant Services The funding round consisted of $10 million in equity and the remaining $25 million in a credit facility. It is unclear from public filings how much of a stake that company acquired in PaymentCloud in the funding round. 

 

Part of the latest capital raise is thought to have been used to fund the acquisition of Paysley for an undisclosed sum. There is no public disclosure of the acquisition agreement or any other detail of the deal structure.

What Is PaymentCloud Best At?

The payment processing industry is ripe with issues related to customer experience and support. That is one of the biggest drawbacks the industry has faced, and it has manifested into many other problems. The merchant is not treated fairly and, for the sake of gaining a client, is not disclosed details of pricing and fees transparently. Understanding that it is only a matter of time before the merchant discovers the dubious practice, they are forced into multi-year agreements and charged punitive fees if they attempt to get out of those agreements.

 

Looking at numerous online forums and complaints with the Better Business Bureau, the underlying theme almost always has been a poor customer experience. This is where PaymentCloud has focused its attention and is a handful of companies in the payment processing space that excels in customer support. Host Merchant Services is another great example. From the time a merchant signs up with PaymentCloud, to the time they are handed off to a Relationship Manager, the merchant is given a concierge customer service. The company’s training is thorough, their Relationship Managers are proactive, and their customer service team is available well outside of business hours.

 

Many types of merchants can benefit from these support hours, including any business that may need to quickly address any issues that arise. Whether it is for fund holds, reserve requirements, or a slew of other issues they are more prone to experiencing.

 

 

Outside of regular hours, support is still available for any bank-related issues or those relating to third-party vendors, such as Authorize.net. The company’s website also has a thorough section for FAQs.

PaymentCloud Products and Services

Through PaymentCloud, merchants can have a one-stop shop with options such as payments, point of sale terminals, and many different tertiary services. Below is a detailed breakdown of PaymentCloud’s many offerings.

 

Payment Processing – The company is a merchant account provider with an emphasis on offering merchant account services to businesses classified as high risk and works with numerous acquirer banks while also partnering with various processors. The goal that PaymentCloud aspires to is partnering with as many acquirers and payment processors so that the odds of an application approval are very high, as would be the chances of ongoing availability of merchant services, regardless of merchants’ risk profiles.

 

Online Payment Solutions – PaymentCloud primarily uses Authorize.Net and USAePay as payment gateway solutions for online processing. Numerous other brands can also address payment gateway needs, or merchants can simply continue using their existing gateway.

 

Hand in hand with a payments gateway is the option for a virtual terminal. That helps by letting merchants process transactions for manual entry or sending invoices via email, with an optional USB-connected card reader. A virtual terminal is often a part of the gateway package that the merchant uses with PaymentCloud. If there are merchants that operate their online stores through some of the major marketplaces and platforms, such as Shopify and WooCommerce, PaymentCloud integrates with those platforms to offer a seamless payment experience for those merchants and their clients.

 

Point of Sale options – PaymentCloud offers both mobile and traditional Point of Sale (POS) systems under its own brand and through its back-end processors. These include Clover devices such as the Clover Station Duo and various other options, including tablet-based system card readers, printers, and registers. Merchants can get some of the best name brands as point of sale options through PaymentCloud. Whether is Clover for physical point of sale solutions or Authorize.Net for payments gateway, whatever the device needs, merchants can expect to get the best from PaymentCloud, both in terms of devices and deals.

 

Also, the company’s POS mobile solution is a result of an acquisition of Paysley. That is now a full-fledged solution offered by PaymentCloud as a mobile POS. Merchants can simply process payments using an online POS on any smart device.

 

Services to businesses considered high risk – PaymentCloud serves industries that are traditionally shunned by financial services and FinTech industries. Examples of some of the businesses that PaymentCloud traditionally serves include adult businesses, companies selling health supplements, credit repair service businesses, electronic cigarette vendors, and businesses within the marijuana and CBD industry, among others.

 

 

Help with the merchant account application – PaymentCloud also offers consultancy on how to get merchants through the merchant account application process. This is an overall review of merchants’ profiles, be it business operations, online reviews, or anything in the compiled documents that can have an adverse impact on getting accepted for a merchant account and helps the merchant fix any discrepancies. The whole purpose is to ensure that the merchant is successfully paired with an acquirer and ends up with the best rate possible. 

PaymentCloud Pricing and Fees

PaymentCloud mainly serves businesses of high risk. As such, it’s difficult to quote a single rate as blanket pricing for such merchants. Even for businesses that are in the exact same industry selling the same product, cannabis for example. One may be ten times larger than the other and may end up getting a more favorable rate than its smaller counterpart. That is why you won’t really find pricing disclosures on PaymentCloud’s website, or on any other public forum. As such, pricing for companies carrying a higher risk profile is determined on a case-by-case basis.

 

Businesses earn a high risk classification based on the nature of their business, the industry they are a part of, or the founders’ general risk profile, among various factors. Certain companies pose a threat of financial loss or reputational damage by working with them. In such cases, merchant account services are challenging to find for those businesses as they are deemed too risky either because of social or moral standards. Some examples of such businesses include adult entertainment sites, gambling businesses, gun retailers, and cannabis vendors, among others.

 

Beyond the social and reputational dilemma, regulators have historically orchestrated efforts to bar such businesses from flourishing by inhibiting their entry into traditional banking and financial services channels. The US Department of Justice’s Operation Choke Point is a perfect example of such a regulatory overshoot. Although banking regulators such as the Federal Reserve and the Federal Depository Insurance Corporation eventually backpedaled on enforcing those efforts, most banks still loathe doing business with such merchants. Now, even the major card networks, such as Mastercard and Visa, are devising innovative ways to erect barricades to ringfence high risk businesses from payment processing services.

 

As a result of these dynamics, merchant acquirers willing to work with such businesses charge hefty interchange rates. And those rates are commensurate with the degree of risk the acquirer is taking on by working with a given high risk business.

 

PaymentCloud offers a multitude of pricing models. One pricing option is tiered pricing. Tiered pricing is a pricing model used by some payment processors to charge merchants for processing credit or debit card transactions. In this model, the processing fees are divided into several tiers, each with a different fee structure based on the type of card being used, the transaction size, and other factors. Transactions that meet specific criteria, such as having a large transaction amount or being made with a premium credit card, are placed into higher tiers and charged higher fees. Tiered pricing is often considered less transparent than other pricing models because the exact price for a transaction may not be evident in advance, making it difficult for merchants to budget and compare costs accurately.

 

Alternatively, the company also offers interchange pass-through pricing. This is a pricing that charges merchants for processing noncash transactions. With interchange pass-through pricing, the processor adds a markup to the cost of each transaction, known as the “interchange fee,” which is set by card networks such as Visa, Mastercard, and others. The markup is a fixed percentage of the transaction amount and a fixed per-transaction fee. 

 

This model provides greater transparency and allows merchants to better predict and compare processing costs, as the markup is consistent for all transactions. The interchange fee and the processor’s markup are separated, allowing merchants to see precisely how much they are paying for each component of the processing fee. Interchange-plus pricing is often considered more cost-effective than other pricing models, particularly for businesses with high transaction volumes, as the markup is constant regardless of transaction size or type.

 

Transaction type

Rate

CNP transactions

Interchange pass-through rate of the card network (Visa, Mastercard, etc.) that is passed through along with an additional rate ranging from 0.10% to 0.50% of the transaction amount. Each transaction is also charged anywhere from 15¢ to 25¢.

Card present transactions – transactions where the card is physically present at checkout and is either swiped, dipped, or tapped at the POS terminal.

Interchange pass-through rate of the card network (Visa, Mastercard, etc.) that is passed through along with an additional rate ranging from 0.05% to 0.30% of the transaction amount. Each transaction is also charged anywhere from 8¢ to 10¢.

Similar to their payment processing rates, PaymentCloud is discreet about its various fees applicable to merchants. Numerous fees apply, including monthly fees, gateway fees, as well as fees for AVS and other two-factor authentication, non-compliance fees, and chargeback costs, among many more.

 

PaymentCloud does not assess charges such as application fees, account setup, or gateway setup fees, although there will be costs associated with the actual price of the gateway charged by third-party vendors offering the gateway, which are usually passed through to the client. The company also does not charge fees for PCI compliance or any form of annual fee. Some specific fees that PaymentCloud charges include:

 

Monthly Fee – $10 – $15 depending on merchant risk category (card present vs. CNP)

PCI Non-Compliance fee – $10/month

Batch Processing Charges – $0.30/batch

Transaction retrieval fee – $8/retrieval

Chargeback fee – $25/chargeback

 

 

It’s important to note that high risk merchants will pay for merchant services. The fact that the merchant is of higher risk almost guarantees they’ll be offered a tiered pricing plan, priced based on the transaction’s risk severity. They are almost certain to incur higher fees and are also subject to something called a rolling reserve requirement. 

 

A reserve requirement for high risk payment processing refers to a percentage of the payment volume the payment processor must set aside as a reserve. This reserve serves as a guarantee for potential losses in case of fraud or chargebacks. The percentage required for the reserve can vary based on the type of risk associated with the payment processing activity, and the processor may hold the funds in an escrow account. The reserve requirement’s purpose is to protect the payment processor and merchants from potential financial losses.

Contract Terms and Other Legal Details of PaymentCloud

There is no current litigation that PaymentCloud is subject to from any of its customers. However, in early 2020, the company faced a civil lawsuit from another payment processor, Merchant One, who claimed PaymentCloud violated their agreement for monthly residual income from customers referred by Merchant One. The court initially rejected the complaint, stating it was a “shotgun pleading.” Merchant One then filed a revised complaint, which the judge subsequently approved. The issue was eventually resolved between PaymentCloud and Merchant One through an out-of-court settlement.

 

Regarding the specific legal terms that merchants may be subject to, PaymentCloud may require customers to sign a two-year contract with a termination fee. According to a one-star Google review from a merchant, the sales agent did not fully disclose the contract terms. PaymentCloud responded to the complaint by saying the details were in agreement and offered to refer the merchant to another processor that would waive the termination fees.

 

It is important to remember that PaymentCloud operates as an aggregator of services and is not a payment processor itself. The company has to work in this manner to find a willing merchant acquirer for any type of merchant, regardless of risk profile. Due to the multifaceted nature of their business and the numerous parties involved, it is likely that some merchant acquirers that agree to provide services through PaymentCloud will likely look to lock in merchants over multi-year agreements. 

 

There is a tremendous amount of work involved in servicing merchants that are flagged as a higher risk; a larger team dedicated to classifying riskier transactions, helping to institute risk-mitigation efforts, and to train the merchant and their team members to be able to identify fraudulent behavior and to ensure that safeguards are being implemented. 

 

All this results in a higher cost basis for the acquirer which will take longer to recoup. In such instances, it is difficult to initiate merchant customers and go through the entire onboarding process only to have that merchant leave on a month’s note. As a result, many acquirers resurrect walls in the form of contract terms that may last anywhere from three to five years and may carry a one-time fee should merchants decide to cancel such agreements before they are set to expire.

Customer Support

From experience and the reviews left by the users of Payment Depot, this merchant service provider supports its customers via:

24/7 Help & Support

Not avaialble

Phone Support

Phone Support Available Monday - Friday 7am - 6pm PST, Saturday: 7am-3pm PST, Sunday: 9am- 5pm PST

Online Contact

Online Contact Us Web Form

FAQ

Basic FAQ section on website

Are There Any Complaints About PaymentCloud

PaymentCloud does not have a profile with the Better Business Bureau, so we looked at reviews and complaints on various online forums, including Google Reviews. The company actively responds to these and helps merchants resolve issues. In general, the company has positive feedback from merchants who praise PaymentCloud’s customer support, the effort the company makes to find a merchant account provider for high risk merchants, and how the onboarding specialists have a continuously open line of communication with them.

 

It’s worth noting that PaymentCloud primarily serves businesses that are considered high risk within the payment processing industry. It is important to note that the company focuses on the nuances of each business. Some acquirers may work with gun merchants, but not adult businesses, and others may have concerns about cannabis merchants. PaymentCloud has connections with many payment processors and acquirers, so it can successfully connect the hardest-to-place merchants with an acquirer.

 

Another aspect of merchant services is that high risk businesses are subject to fund holds and reserves by their acquirer. It’s simply what the process of processing payments entails. Once a payment is initiated, the acquirer checks with the issuer to make sure there are enough funds to cover the cost. Until the chargeback period (six months) lapses, the acquirer has extended the merchant a line of credit, and reserves are the only way the acquirer can recover costs if there’s a successful chargeback.

 

Regarding this process, there is a customer complaint where efforts to resolve issues faced by a merchant regarding fund holds led to a complete breakdown in communication. It’s one complaint that made it to online forums, so it may be an exception or possibly a canary in the coal mine, emblematic of the company’s attitude and communication on a subject as common as fund holds.

 

Since PaymentCloud tries multiple acquirers to get the best rate for high risk merchants, many may find the process exhaustive. Some merchants also reported being overwhelmed by numerous requeststo initiate their merchant account service. However, in all fairness, these few complaints do not accurately reflect the overall image and reputation of PaymentCloud. They simply highlight some negative aspects of the company’s operating norms.

Get a free quote
dharma merchant services

Dharma Review

dharma merchant services

Dharma Review

Overall Rating

4.3/ 5.0
get a free quote

In-Depth Analysis

4.3

Price

Ease of Use

Features

Support

Pros

  • Advanced security features and fraud prevention
  • Excellent customer support and easy setup
  • Competitive pricing and transparent fees

Cons

  • Limited integrations and features

Overview

Dharma Merchant Services is a San Francisco, California-based merchant services provider that offers payment processing services to a large variety of businesses in different industries, including yoga studios, wellness centers, clinics for speech therapists, occupational therapists, rehab centers, hospitals, emergency medical services, and veterinarians. However, the niche specialties that Dharma particularly excels at are retail, eCommerce, restaurant, and non-profit organizations. These payment processing services are available for online and in-person payment processing, including credit and debit card processing, ACH and eCheck processing, and recurring billing. The company, founded in 2007, also offers various other services, such as donation processing, fundraising tools for non-profits, and a virtual terminal for businesses that need to process payments over the phone or by mail.

Dharma was founded to provide ethical and transparent payment processing services to these industries and has since grown to serve thousands of businesses across the United States. Along with payment processing, Dharma offers a wide range of services, offering virtual terminals and payment processing services for niche events, such as donation processing and fundraising tools, making it an excellent choice for non-profit organizations.

One of the critical benefits that Dharma touts for working with them is the company’s transparency. The founder of the company, Jeff Marcous, mainly focused on offering a transparent pricing structure; interchange-plus pricing, there are no hidden fees or long-term contracts, and thereby on early termination fees. The company also provides various fraud prevention tools to help protect its customers from criminal activity.

Our review of Dharma covers the company’s operations, founding history, service offerings, target market, fees, and merchant rates. We evaluate how merchants rate Dharma’s services, any legal issues the company faces, and how it compares to competitors in the payment processing industry.

Dharma History and Founder

Jeff Marcous is the cofounder of Dharma and started the company in San Francisco, California, in 2007. The company focuses on providing the best service with ethical sales practices and transparent pricing. Dharma partners with Synovus Bank as its acquirer, Fiserv and TSYS serve as the company’s payment processor, and Clover, among many other hardware vendors, offers numerous POS and mPOS solutions.

Dharma Products and Services

Dharma has numerous service offerings, starting with payment processing, point of sale terminals, mobile apps, and additional services catering to online stores and eCommerce businesses. A breakdown of these offerings is as follows.

Payment Processing – As renowned as Dharma is for its top-notch customer service, it is surprising to learn that the company’s primary payment processing partners in the back end are both TSYS and Fiserv. Neither is known for its customer support. In fact, Fiserv has a very poor reputation in terms of service, as well as rates.

Thankfully, Dharma has successfully offered flexibility to its customers to offer favorable processing rates and a month-to-month contract. This is clearly a better payment processing deal instead of directly contracting with Fiserv for services. Especially since the mainstay of this partnership is that Dharma manages the support services, so there will be minimal direct communication with Fiserv relating to Dharma customer inquiries. So merchants get all the great taste of world-class payment processing without any of the fat and calories of poor support and restrictive contract terms.

The only drawback of the company’s service is that Dharma does not serve riskier clients or any merchants looking to accept payments for international sales. The company is presumed to have a channel partnership with PaymentCloud for high-risk merchants, as all such requests are referred to them.

Surcharging is also gaining ground among merchants, and for quite some time, there needed to be more clarity around the legality of the service in many jurisdictions. As a result, most payment processors stayed away from the practice. However, as there is more clarity around such a service in courts throughout the US, Dharma recently began offering a surcharging service. The company offers that through a specific POS terminal available at a one-time cost of $295.

Dharma has non-profit-specific pricing and has teamed up with 4aGoodCause, an online fundraising platform that enables non-profits to collect donations through a website, monitor contributors, and connect to over 2,000 third-party applications. 4aGoodCause incurs a minimal monthly charge but does not impose any platform transaction fees, allowing non-profits to retain a more significant portion of their raised funds.

What the company does charge extra for are truly great value-adds that merchants would find useful. Dharma offers a B2B program called MX B2B which offers lower interchange pass-through rates for transactions that and processed with Level 2 or Level 3 processing.

Although there is an added cost, given that the average processing size of Level 2 and 3 transactions is very large, the savings in payment processing charges on those transactions would surpass the cost of the MX B2B program.

Dharma offers a HIPAA-compliant solution for healthcare, veterinary, and medical merchants to accept credit cards, debit cards, and HSA cards. The platform also enables merchants to send invoices, receive phone payments, and add a payment button to their websites.

Dharma’s services are ideal for many different industries, but the company specializes in catering to retailers, eCommerce businesses, restaurants, and nonprofit organizations. It is important to note that the company only accepts merchants with a monthly processing volume of more than $10,000. The company refers merchants to Square who do not meet that threshold

Point of Sale and Mobile Apps

Point of Sale terminals – As with payment processing, Dharma partners with Fiserv to offer point of sale systems. Some terminals offered include the Clover series of POS products, including the premium Clover Station Duo and Clover Station Solo. The Clover Mini and the Clover Flex are also available with a monthly fee based on the chosen level of service. It’s important to note that using any Clover POS system requires onboarding with Fiserv. If the merchant uses a previous processor’s POS system, Dharma can usually reprogram it to work with either TSYS or Fiserv.

Merchants within the Hospitality or transportation sector may prefer to opt for the First Data FD-150 or the  Ingenico Desk/3500 option. However, the First Data POS is better as it comes with automatic update capabilities and a touchscreen.

The Ingenico Desk/5000 is the sole costly option listed among the five shown on the five POS terminals shown on the company’s website, but it is the best option for B2B transactions as it can handle Level 2 and Level 3 processing.

The Dejavoo Z11 is the POS device that Dharma offers its surcharging service through. The last option, the Verifone Engage V200c, is a more general terminal suitable for most businesses. All the terminals offered by Dharma are EMV-enabled, can process payments from digital wallets such as those of Apple and Google, and offer Chip+PIN encryption, which is one of the strongest encryption combinations available. They also all have color screens and built-in printers.

Dharma also has an entire section of the full suite of the Clover POS family of terminals. The pricing includes the cost of the terminal as well as a monthly recurring fee for the equipment. The hardware cost range from $649 for the Clover Flex to as high as $1,999 for the Clover Station Duo. The monthly fees can start at $4.95 (but can be as high as $34.95) a month for lower-end models to as high as $44.95 a month for the Clover Station Duo.

Mobile POS – Although Dharma offers the mobile POS app for a mobile payment solution as well as a mobile card reader, that option is currently not available on the company’s website as it is out of stock, and there is no timeline as to when it will be available given the current supply chain headwinds as well as other geopolitical issues such as trading bans.

Payments Gateways and Virtual Terminals – Dharma sticks to the tried-and-true solutions for online merchants. Authorize.net is the de facto standard for payment gateways in the payment processing industry. Dharma also offers an in-house payment gateway embedded into its MX Merchant solution.

For the company’s virtual terminal solutions, Dharma offers VPOS in combination with Authorize.net and QuickPay as part of the MX Merchant solution.

Tertiary services include:

Dharma also offers MX Merchant, an all-in-one online account access and reporting system with every merchant account. The main features include a virtual terminal, online reporting functionality, a customer database, and a mobile processing app, among many other features. Additional options can be added for a monthly fee, including integrated ACH payment processing, B2B processing, invoicing, and recurring billing.

Dharma Pricing and Fees

Dharma offers a 2-business day funding guarantee for all merchants, with the potential for next-day funding for most card-present retail transactions, subject to underwriter approval. The cost per transaction varies based on industry, card presence, and processing volume, but Dharma offers all processing via interchange-plus pricing. Below is a breakdown of the company’s pricing on its various services and POS solutions.

Payment processing for retail stores and restaurants is available at an interchange + 0.15%, along with additional eight cents for every transaction. For eCommerce and card not present transactions, rates are interchange + 0.20%, along with additional eleven cents for every transaction. For retail stores or those merchants that are classified as high-volume processing merchants by Dharma, those with more than $100,000 in monthly processing volume pay a rate of interchange + 0.10%, along with additional eight cents for every transaction.

  

Point of Sale 

 

Card terminals

 

Verifone Engage V200c 

$269 

Fiserv FD-150 

$295 

Ingenico Desk/5000 

$369 

Dejavoo Z11 

$295 

Walker 2 card reader for Mobile processing 

$149 

Clover Station Duo 

$1,999 for the terminal + $44.95/month

Clover Station Solo 

$1,649 for the terminal + $44.95/month

Clover Mini 

$899 for the device + monthly fee of either $4.95 or $34.95 based on the level of service

Clover Flex 

$599 for the device + monthly fee of either $4.95 or $34.95 based on the level of service

  

Additional fees

 

Monthly Fee 

$25/month, $20/month for high-volume merchants

B2B processing (L2 and L3 processing)

$20 per month

Authorize.Net 

$10/month + $0.05/transaction

ACH processing 

$25 per month + $0.40 per transaction

ACH processing via Authorize.Net 

$10 per month + 0.75 % of total transactions processed

Transaction Retrieval charges

$5/transaction retrieved

Chargeback charges

$25/chargeback

Account closure fee, which Dharma charges to recoup the cost of mandatory record-keeping for a minimum of 6 months after closure to protect against late chargebacks

$49 

There are no monthly minimums with Dharma, nor are there any fees for PCI compliance, setting up services, or annual fees.

Dharma Service and Support Levels

Dharma is also known for its exceptional customer service. The company has a team of experienced and knowledgeable customer service representatives available to assist clients with customers questions or concerns. Whether you’re a small business just getting started or a large non-profit organization, Dharma has the payment processing solutions and customer service to meet their needs.

Dharma offers exceptional in-house phone support during business hours, Monday to Friday, from 9:00 am to 4:00 pm Pacific Time. The knowledgeable and supportive team will be able to assist you with any inquiries you may have. If you have an issue outside of these hours, you can contact them via phone and email, and the company will queue the inquiry for resolution once regular business resumes. In addition to phone support, Dharma provides a comprehensive knowledge base on their website that can answer a wide range of questions about credit card processing. The information is quite helpful and can assist in troubleshooting many issues merchants face.

Details Of The Contract Offered and Other Legal Details Of Dharma

Dharma stands by the quality of its services and does not attempt to keep customers by subjugating them to long-duration non-cancelable contracts and then compelling them to pay punitive charges if they intend to end that contract due to a lack of effective service.

In order to contrast customers terminating their services from seasonal businesses that temporarily suspend their account, there is a final payment of $49, which the company charges to recoup the cost of mandatory record-keeping and to protect against late chargebacks, which may take at least 6 months to transpire. Seasonal businesses are not subject to this fee.

We found no legal complaints or ongoing litigation against the company. There are also no FTC complaints filed against Dharma.

Are There Any Complaints About Dharma

Dharma has a positive online reputation, with most of the available reviews being positive testimonials. The company is no longer rated by the Better Business Bureau (BBB), even though it had an A+ rating in the past. There have been no complaints in the past 36 months.

There are very few negative reviews about the company, most of which come from merchants who were turned down for an account. Remember, Dharma only works with merchants with a monthly processing volume of $10,000 or more and does not work with high risk merchants. Nonetheless, the company is not perfect, and there may be occasional issues like funding holds or equipment compatibility. Still, Dharma handles these problems professionally and competently. As we discussed at the start of this review, the manner in which the company manages its customer relationships, starting from the sales process to ongoing Support, is the driving factor in keeping its merchants satisfied.

As with any company, there may be negative reviews or complaints about Dharma. It’s important to note that not all complaints may be valid or accurately reflect the company’s service. It’s always a good idea to research a company thoroughly before doing business with them and consider different sources of information. Additionally, if you have a specific concern or question about Dharma, it would be best to contact the company directly for more details.

Customer Support

From experience and the reviews left by the users of Payment Depot, this merchant service provider supports its customers via:

24/7 Help & Support

24 Hour Phone Help Lines

Phone Support

Monday through Friday 9AM - 4PM PST Office hours

Email

Email Assistance Available

FAQ

Online Knowledge Base

Conclusion

Dharma is a payment processing service provider offering various services for different industries, including yoga and wellness centers. However, the company specializes in retail, eCommerce, restaurant, and non-profit industries. Dharma provides various payment processing options and specialized services, such as donation processing and fundraising tools for non-profits.

Along with payment processing, the company also offers virtual terminals and point of sale systems. The company was founded in 2007 to provide transparent and ethical services and has since grown to serve thousands of businesses across the US. Dharma offers a variety of payment processing options, including credit and debit card processing, ACH and eCheck processing, and recurring billing. Additionally, Dharma provides various other services, including fundraising tools for non-profit organizations and fraud prevention tools to protect its customers.

Dharma is committed to ethical and transparent business practices and is known for its exceptional customer service. It could be an excellent option for businesses looking for a company that understands their specific needs.

get a free quote

PayPal Payment Processing Review

Paypal

Overall Rating

4.3/ 5.0
Get a free quote

In-Depth Analysis

4.3

Price

Ease of Use

Features

Support

Pros

  • Easy setup
  • Easily integrate with ecommerce
  • Globally acclaimed and accepted

Cons

  • Not for high volume merchants

Overview

PayPal is a widely used online payment system that allows individuals and businesses to send and receive money electronically. PayPal operates as an intermediary between buyers and sellers, allowing transactions to be made online without the need for sensitive financial information to be exchanged between parties.

 

PayPal is widely accepted by merchants and consumers worldwide and is available in over 200 markets. In addition to allowing customers to make purchases online, PayPal offers services such as money transfers, bill payments, and charitable donations.

 

The company offers several different account tiers, including personal, premier, and business accounts, each with varying features and capabilities. PayPal uses advanced security measures to protect its customers’ information and transactions, including encrypted data storage and 24/7 fraud monitoring.

 

 

Overall, PayPal is a convenient, secure, and a widely accepted payment option for online transactions globally. Below we examine the company’s products and pricing structure, as well as PayPal’s founding and history. We’ll also look at what kind of businesses PayPal’s services are best for and if there are any complaints merchants need to be aware of.

Paypal History and founder

Paypal was founded in December 1998 as Confinity, a security software provider for handheld devices. In March 2000, Confinity merged with X.com, an online financial services company, and the merged company was renamed PayPal in 2001. The company was founded by Max Levchin, Peter Thiel, and Luke Nosek, among others, to create a secure and convenient way for people to send and receive money online.

 

In the early days of the internet, online shopping was still in its infancy, and most people were hesitant to enter their credit card information online. PayPal solved this problem by allowing customers to send and receive payments without exchanging sensitive financial information.

 

PayPal quickly gained traction, especially among eBay customers, who used the platform to securely send payments for their auction purchases. In 2002, eBay acquired PayPal for $1.5 billion, and PayPal became the preferred payment method for eBay transactions.

 

Over the years, PayPal has expanded its services beyond eBay and has become a widely accepted payment method for online transactions globally. In 2015, eBay spun off PayPal into a separate publicly traded company, and PayPal has continued to grow and evolve, acquiring several other companies and launching new products and services.

 

That same year, Xoom Corporation, a digital money transfer provider, and PayPal announced a merger in 2015. Under the terms of the agreement, PayPal acquired Xoom for $890 million in cash. The acquisition of Xoom allowed PayPal to expand its presence in the international money transfer market and provide customers with a more comprehensive set of digital payment services. Xoom’s platform allowed customers to send money to friends and family in other countries directly from their smartphones or computers, and the merger with PayPal gave Xoom’s customers access to PayPal’s extensive network of merchants and online services.

 

Since the merger, Xoom has operated as a subsidiary of PayPal and has continued to provide digital money transfer services under the Xoom brand. The integration of Xoom’s platform into PayPal has helped the company to expand its reach further and offer customers a more convenient and cost-effective way to send and receive money globally.

 

PayPal has also popularized the “PayPal Mafia,” which refers to a group of early former PayPal team members and founders who have gone on to achieve significant success in the technology and entrepreneurial world. 

 

This group of individuals, who were part of the early days of PayPal, have since gone on to create and lead some of the world’s most successful companies and venture capital firms. Some of the notable members of the PayPal Mafia include Elon Musk, Reid Hoffman, Max Levchin, Peter Thiel, David Sacks, Jeremy Stoppelman, and Russel Simmons. These individuals have had a profound impact on the technology industry, and their success has helped to establish PayPal as a breeding ground for entrepreneurial talent.

 

Elon Musk, one of the most famous alumni of the PayPal Mafia, was one of the co-founders of PayPal, initially known as X.com. He co-founded the company in 1999 and served as its CEO briefly before stepping down in 2000. However, he remained on the board of directors of PayPal until eBay acquired it in 2002.

 

In 2000, X.com merged with Confinity, a provider of security software for handheld devices, and the merged company was renamed PayPal. The merger brought together Confinity’s expertise in security technology with X.com’s focus on online payments and helped to establish PayPal as a leader in the online payments industry.

 

Since then, PayPal has continued to grow and expand, becoming one of the largest online payment systems in the world. The company has acquired several other companies and launched several new products and services, including digital wallets, mobile payments, peer-to-peer payments, and several iterations of buy now pay later offerings.

 

A new form of lending has taken off over the past few years known as Buy Now Pay Later, aka BNPL. Consumer love it helps them expand their purchasing power without having them go through extensive credit checks as traditional credit cards require. Furthermore, they don’t have to pay any fees or interest for the installments.

 

Retailers love it because they are selling more of their products and merchandise, all the while doing it via a service that will save them payment processing fees as this bypasses traditional payment networks such as Visa and Mastercard. New pseudo-innovators such as Klarna and Afterpay love it because they have launched a credit product bypassing existing payments rails and credit reporting agencies and banking regulators.

 

As a result, BNPL has proliferated wildly. In 2021, PayPal entered the fray by offering its own iteration of this credit product with the $2.7 billion acquisition of Paidy. That company offered a service enabling buyers to make installment payments using the company’s own proprietary creditworthiness methodology, which has been shown to increase conversion rates, order values, and repeat business.

 

Today, PayPal is one of the largest online payment systems in the world, with over 435 million active account users, including 35 million merchant account holders in more than 200 markets, facilitating payments in about 150 currencies. Those consumers can then withdraw those funds in 56 different currencies or continue to hold them in their PayPal accounts in 25 foreign currencies. The company, widely recognized as a pioneer in the online payment industry, is currently traded on the NASDAQ stock exchange and valued at over $85 billion

What Is PayPal Best At?

PayPal is best known for providing secure and convenient online payment services. Some of the things that PayPal is particularly good at include the following:PayPal is best known for providing secure and convenient online payment services. Some of the things that PayPal is particularly good at include the following:

 

1.      Sending and receiving payments: PayPal allows individuals and businesses to send and receive payments online, making it a popular choice for online transactions.

2.      Secure transactions: PayPal has a robust security system that helps protect customers’ financial information and ensures that transactions are secure.

3.      Widely accepted: PayPal is one of the most widely accepted online payment methods, making it a convenient option for many customers.

4.      Easy to use: PayPal has a user-friendly interface that makes it easy for people to send and receive payments, even if they are not tech-savvy.

5.      Mobile app: PayPal also has a mobile app that allows customers to manage their accounts and make payments on the go.

Overall, PayPal is best at providing a secure, convenient, and widely accepted platform for online payments.

PayPal Products and Services

PayPal offers a range of products and services to meet the needs of individuals and businesses. Here are some of the key products and services provided by PayPal:

 

·    Personal Payments: Personal Payments is a service that allows individuals to send and receive payments online. This service is free and easy to use, making it a popular choice for personal transactions such as splitting a restaurant bill or paying a friend back for movie tickets.

 

·      Business Payments – a service that allows businesses to send and receive payments online, making managing their finances and transactions easier. Companies can also use PayPal to process customers’ credit and debit card payments.

 

·    PayPal Invoicing – PayPal’s Online Invoicing service allows businesses to create and send invoices to their customers, making it easier to manage their billing and payment processes.

 

·      Payouts – Payouts is a service that allows businesses to send mass payments to multiple recipients simultaneously, making it a convenient option for paying team members, contractors, or affiliates.

 

·   Credit and Debit Cards – PayPal offers a range of credit and debit cards, including the PayPal Cashback Mastercard and the PayPal Extras Mastercard, that allows customers to earn rewards on their purchases and access their PayPal balance at ATMs.

 

·    Venmo – a mobile app that allows customers to send and receive money from friends and family and purchase from select merchants.

 

·   Xoom – a service that allows customers to send money, pay bills, and reload mobile phones for friends and family in other countries.

 

·    Braintree – PayPal-owned Braintree, since 2013, has offered an entire slew of options that allow businesses to customize their shopping cart within their existing platform. Braintree facilitates payment in over 40 countries in over 100 currencies and accommodates Venmo transactions, PayPal payments, and both credit and debit cards. Customers can also pay via digital wallets, ACH deposits, and various other payment methods local to users specific jurisdictions where Braintree is accepted.

 

Unlike most third-party payment processors, such as its parent company, customers are assigned their own merchant account when using Braintree.

 

·        PayPal Working Capital – PayPal Working Capital is a loan product for small businesses that allows them to access capital based on their PayPal sales history.

 

·    Hyperwallet – a solution that allows businesses to send payments to contractual workers and freelancers globally. PayPal’s Hyperwallet payouts enable businesses to swiftly and securely transfer payments to independent contractors, claimants, freelancers, and sellers worldwide. These payments can encompass various types of transactions, including commissions, rewards, claims, and rebates, and can be disbursed to payees with or without bank accounts, regardless of their location.

 

·    PayPal Honey – PayPal Honey is a collection of online shopping tools that is a part of PayPal’s offerings, assisting customers in finding bargains and earning rewards while shopping on participating websites. The company’s goal in offering the tool is to provide more ways for customers to save time and money using PayPal.

 

·       With the acquisition of Paidy, having developed its expertise in BNPL, PayPal launched an offering for its entire customer base known as Pay in 4. As the name suggests, customers can split payments into four installments, so long as they have an excellent-standing PayPal account, and shop with select retailers.

·       PayPal Pay Monthly – PayPal introduced a further iteration to its buy now, pay later product called “PayPal Pay Monthly.” The program allows customers to split the total cost of purchases between $199 and $10,000 into monthly payments over a period of six to 24 months, with the first payment due one month after the purchase is made. Unlike the Pay in 4 program, which only covers purchases between $30 and $1,500, “Pay Monthly” offers customers more flexibility in paying for larger purchases.

 

PayPal offers several lending products and services to individuals and businesses. These include:

 

·     PayPal Working Capital – PayPal Working Capital is a loan product for small businesses that allows them to access capital based on their PayPal sales history. This service provides quick and easy access to funds, allowing companies to grow and expand.

 

·      PayPal Credit – PayPal Credit is a line of credit that allows customers to make purchases, get cash advances, and take advantage of special financing offers from select merchants.

 

·        Bill Me Later – Bill Me Later was a lending product offered by PayPal that allowed customers to defer payment on purchases and pay for them later, with interest and fees. This service has since been integrated into PayPal Credit.

 

PayPal’s lending products are designed to provide merchants with quick and easy access to funds, whether they want to finance a purchase or grow their business. These services are subject to credit approval and terms and conditions, and additional fees may apply.

 

PayPal’s solutions also include several mobile applications, such as:

 

·  PayPal App – The PayPal app allows customers to manage their accounts, send and receive payments, and view their transaction history.

 

·        Venmo – Venmo is a mobile app that allows customers to send and receive money from friends and family and make purchases from select merchants.

 

·     Xoom – Xoom is a mobile app that allows customers to send money, pay bills, and reload mobile phones for friends and family in other countries.

 

·     Braintree – Braintree is a mobile app that provides businesses with tools for processing payments and managing their finances.

 

 

These apps are available for iOS and Android devices and are designed to provide customers with a seamless and convenient experience for managing their finances and making payments.

PayPal Point of Sale Solutions

Yes, PayPal does have point of sale (POS) solutions for businesses. The company offers a range of POS systems, including standalone devices and mobile POS solutions, allowing businesses to accept customer payments using various payment methods, including credit and debit card payments, among others.  PayPal, and contactless payments like Apple Pay.

 

With PayPal’s POS systems, businesses can efficiently process transactions, manage inventory, and track sales from one central location. Additionally, the company offers a suite of business tools, such as invoicing and accounting software, to help streamline various aspects of a business’s operations.

The PayPal point of sale (POS) solutions available for businesses include:

 

·     PayPal Terminal – This is a standalone, countertop device that can process payments in a brick-and-mortar store. The PayPal Terminal accepts a wide range of payment methods, including credit and debit cards, PayPal, and contactless payments.

 

·     PayPal POS – This software solution can be used with a compatible card reader or web browser. PayPal POS allows businesses to manage sales, inventory, and customer information from a single platform.

 

·    Braintree POS – This cloud-based point of sale solution is part of the PayPal family of companies. Braintree POS integrates with various payment methods and can be used on multiple devices, including iPads, smartphones, and desktop computers.

 

 

Each of these solutions has its own features and benefits, and businesses can choose the one that best fits their needs based on factors such as the type of business, the size of the company, and the payment methods they want to accept.

PayPal Pricing and Fees

PayPal offers a range of products and services to help individuals and businesses with their financial transactions. Below is a tabulation of PayPal’s products and pricing. It is important to note that PayPal operates globally and has a pricing structure for each country of operation. We are presenting the pricing details for US merchant rates and fees for this review.

Product

Pricing

Personal Account

Free

Premier Account

Free, but with a monthly fee of $5 for monthly sales over $500.

Business Account

Free, but with a monthly fee of $30 for sales over $15,000.

Payments Standard

2.9% + $0.30 per transaction fee

Payments Pro

Monthly fee of $30 + 2.9% + $0.30 per transaction fee

Payment Processing Rates

Payment Type

Rate

Merchant Commercial Transactions

PayPal Checkout

3.49% + $0.49

PayPal Guest Checkout

3.49% + $0.49

QR code Transactions – > $10

1.90% + $0.10

QR code Transactions – <= $10

2.40% + $0.05

QR code Transactions through 3rd-party integration

2.29% + $0.09

Pay with Venmo

3.49% + $0.49

Send/ Receive Money for Goods and Services

2.99%

Standard Credit and Debit Card Payments

2.99% + $0.49

All Other Commercial Transactions

3.49% + $0.49

International Merchant Commercial Transactions

Add 1.50%

Donations

PayPal Donate Button

2.89% + $0.49

PayPal Listed Fundraisers

2.99%

PayPal Unlisted Fundraisers

No Fee

PayPal Checkout – Donations

2.89% + $0.49

International Donations

Add 1.50%

Charity

Charity Transactions

1.99% + $0.49

International Charity Transactions

Add 1.50%

APM

APM (Alternative Payment Method) – AliPay, and other wallets

2.59% + $0.49

International Alternative Payment Method

Add 1.50%

PayPal Here

Card Present transactions

2.70%

Keyed-in transactions

3.50% + $0.15

In-store PayPal transactions 

2.70%

QR Code payments

2.70%

International transactions

Add 1.50%

PayPal Online Card Payment

PayPal Advanced Credit/ Debit Payment

2.59% + $0.49

PayPal Payments Advanced

2.89% + $0.49

PayPal Payments Pro

2.89% + $0.49

Virtual Terminal

3.09% + $0.49

International transactions

Add 1.50%

PayPal Payflow Gateway

Payflow Pro Transactions

$0.10 

Payflow Link Transactions

$0.10 

PayPal Zettle

Card Present transactions

2.29% + $0.09

Keyed-in transactions

3.49% + $0.09

QR Code payments

2.29% + $0.09

PayPal Payouts

US-based transactions

2.00% – Fee capped at $1.00

US-based transactions via API

$0.25 

International transactions

2.00% – Fee capped at $20.00

Micropayments

US Micropayments

4.99% + $0.09

International Micropayments

6.49% + $0.09

PayPal Fees

 Amount 

Chargeback fees

 $20 per chargeback 

Dispute fees

 $15 per dispute 

Dispute fees for high-volume merchants

 $30 per dispute 

Bank withdrawals – standard

 Free 

Bank withdrawals – Instant

1.50%

Card withdrawal

1.50%

Payflow Pro

 $25 per month 

Payflow Link Monthly fee

 Free 

PayPal Recurring Billing Service

 $10 per month 

PayPal Fraud Protection – Basic Package

 Free 

PayPal Fraud Protection – Advanced Package

 $10 per month 

PayPal Fraud Protection – Buyer Authentication +

 $10 per month 

PayPal Fraud Protection Excess fees – Basic Package

 Free 

PayPal Fraud Protection Excess fees – Advanced Package

 $0.05 per transaction 

PayPal Fraud Protection Excess fees – Buyer Authentication +

 $0.10 per transaction 

PayPal Fraud Protection Excess fees – Recurring Billing Service

 Free 

Please note that these rates and fees are subject to change and may vary based on the country you are located in. Additionally, PayPal may offer different pricing plans or discounts for businesses or high-volume transactions. It’s best to consult the PayPal website or speak with a representative to get the most up-to-date and accurate information on their products and pricing.

 

Details Of The Contract Offered By PayPal

PayPal offers several contract options for merchants who use its payment processing services. The type of contract available to a merchant typically depends on the products and services they use and the volume of transactions they process through PayPal. Some of the contract options available to PayPal merchants include the following:

 

·     PayPal Payments Standard: This essential, transaction-based pricing model charges merchants a flat fee per transaction. There is no monthly fee or setup cost for this service.

 

·    PayPal Payments Pro: This more comprehensive payment processing solution provides merchants with a virtual terminal, API access, and the ability to process payments directly from their website. The pricing for this service includes a monthly fee and a per-transaction fee.

 

·  PayPal Express Checkout: This service allows merchants to integrate PayPal into their checkout process, providing customers with a seamless checkout experience and the ability to pay with their PayPal account. The pricing for this service includes a per-transaction fee.

 

 

Merchants may also be able to negotiate customized pricing and contract terms with PayPal, depending on their specific needs and transaction volume. 

Customer Support

From experience and the reviews left by the users of Payment Depot, this merchant service provider supports its customers via:

24/7 Help & Support

Not available

Phone Support

Monday-Friday 8AM to 8PM Central Phone Support

Email

Technical and Integration Support via Email

FAQ

Full FAQ Knowledge Base
Online Step by Step Help Guides

PayPal's Challenges With Fund Holds, Lawsuits, and Customer Service

With over 100 million customers, the company has received thousands of customer complaints, with sudden account freezes and poor customer service being the most common. While holds are a common industry practice, business owners have reported difficulty explaining why funds were held for extended periods.

 

In 2017, PayPal settled a class-action lawsuit for over $4 million, which alleged that the company had mishandled disputed transactions and placed holds, reserves, or limitations on customer accounts without notice. In 2021, the Securities and Exchange Commission and the Consumer Financial Protection Bureau launched investigations into the company’s swipe fees and marketing practices. As a result, PayPal’s stock plummeted, and several class-action suits were filed against the company, including one by World Series of Poker champion Chris Moneymaker.

 

 

To address customer service problems, PayPal offers a basic support line, but merchants can pay for higher levels of support, such as “13X7 Enhanced” or “24X7 Premium.” Despite these options, wait times, and poor service can still occur. With these challenges, PayPal’s experiences may set standards for the industry going forward.

Conclusion

PayPal has come a long way since the company’s inception more than two decades ago. At the time, the internet was still in its infancy, and online payment transfers still felt scary despite embracing the novelty. Today, the company that had to pay customers $25 to sign up and trial their product is an industry leader staying abreast of all the latest trends in consumer behavior and financial technology. While the company sees transaction volumes drop, the amounts of those transactions are holding up among PayPal customers. The company’s financials have been buttressed from declines in its traditional products as PayPal astutely ventured into new areas of payments technology, such as Buy Now Pay Later.

 

The company sees success with BNPL. Since the product’s launch three years ago, PayPal has extended more than 200 million loans to over 30 million customers and counts more than 300,000 merchants among its BNPL partners. The company’s BNPL loans of $20 billion through 2022, up over 160% from 2021, and the BNPL transaction count grew by over 200%.

 

Today, PayPal is a leading financial services provider offering various products and services for individuals and businesses. Its solutions, which include personal and business payments, invoicing, payouts, credit and debit cards, Venmo, Xoom, Braintree, and PayPal Working Capital, are designed to make online transactions secure, fast, and accessible. 

 

In addition to its lending products, PayPal’s mobile applications, such as PayPal, Venmo, Xoom, and Braintree, enable customers to manage their finances on the go. With a mission to democratize financial services and make them more accessible, PayPal continues to innovate and develop new products and services that cater to the evolving needs of its customers, making it a reliable and convenient option for managing digital finances.

 

 

get a free quote

National Processing Review

National Processing

Overall Rating

4.3/ 5.0
get a free quote

In-Depth Analysis

4.3

Price

Ease of Use

Features

Support

Pros

  • Free equipment
  • No long-term contract required
  • Low cost processing

Cons

  • Early termination charges

Overview

National Processing is a merchant payment processor based in Orem, Utah. The company was founded in 2007 by Wayne Hamilton and is focused on providing small and medium-sized businesses merchant accounts, mainly to process ACH payments. National Processing serves many different industries and caters to both low risk and high risk merchants.

As a result, merchants of all risk profiles can set up businesses and accept noncash payments for all the major card networks such as AMEX, Visa, Mastercard, etc., and can also accept online payments, payments via digital wallets, and ACH.

Other than the company’s comprehensive payment processing services, National Processing’s product offerings include point of sale solutions, EMV card readers, mobile payment options, e-commerce solutions, a payment gateway and virtual terminals, third-party software integration, fraud, and chargeback protection.

National Processing charges customers based on the interchange-plus pricing model. The company has a $500 price-match guarantee in place for any merchant that has a monthly transaction volume of more than $10,000.

The contract structure in place for National Processing customers is somewhat contentious. There any many payment processors that bind customers into long-term, two or three-year contracts, and if merchants end their service agreement before that time, they are subject to an early termination fee. National Processing purports not to engage in this practice. Unfortunately, those claims are valid only given certain caveats, which we’ll detail below.  

In this article, we look at what kind of product and service offerings are available from National Processing, when the company was founded, and by whom, what the company’s target market is, and the company’s pricing structure. We’ll also look at all the different types of fees National Processing does and does not charge its merchant customers. We’ll explore how merchants feel about National Processing’s service and whether there are any outstanding lawsuits or complaints against the company.

National Processing History and Founder

Wayne Hamilton founded National Processing in 2007. The company focuses on catering to small and mid-sized businesses of all kinds of risk profiles. National Processing lists both Chesapeake Bank and Woodforest National Bank as the company’s acquiring banks. The company is very transparent with its pricing structure and lists the fees applicable by industry on the landing page of National Processing’s website.

Although National Processing does not divulge this information, our research has found that Fiserv is the company’s third-party payment processor. Also, National Processing uses Clover and many other vendors to provide merchants with traditional and mobile point of sale solutions.

What Is National Processing Best At?

What National Process is best is the company’s transparency. National Processing’s website clearly states its pricing structure. Unlike most providers, the company gives detailed information about interchange fees, which gives a breakout of the charges for the payment processor and that of the issuing bank.

National Processing Products and Services

National Processing offers mostly bare-bones merchant account and POS equipment solutions. The company provides these solutions to various businesses and serves its customers well. Below is a breakdown of National Processing’s product offerings.

Merchant Services – the company offers payment processing services to low- and high risk merchants. The company provides the service through a third-party payment processor, Fiserv, while National Processing handles the customer service.

Although most high risk merchants are quoted a price usually higher than rates for low-risk merchants, the company has a comprehensive list of their rates by industry, including some sectors that have traditionally been considered high risk, such as eCommerce, restaurants, and retailers.

Finally, the company offers top-notch ACH proprietary software with which it can seamlessly process ACH transactions. Affordable ACH processing is becoming harder to find as free options are seldom available. National Processing specializes in offering ACH payment processing to merchants.

Point of Sale and Mobile Apps

Point of Sale terminals – For businesses like restaurants that require a more robust processing device, National Processing now offers its own NP POS system. It accepts swiped, dipped, and tapped payments and includes features such as inventory management with stock alerts, team schedules, a loyalty/rewards program, cloud-based reporting, and more. They also offer various Clover POS devices.

Also, National Processing provides POS terminals from brands such as Clover and Dejavoo. These terminals are EMV-enabled and offer numerous other functionalities, such as contactless payments. Prices for the equipment are not listed on their website, but you have the option to purchase the device or get a “free” terminal with specific pricing plans. It’s worth noting that National Processing does not have expensive equipment leasing options. However, in the case of National Processing’s payment process agreement, how merchants procure their POS equipment can have an impact on whether their agreement is a long-term one and carries an early termination fee, which we’ll discuss in further detail below.

Mobile POS – For smaller merchants, businesses that are just starting, or businesses that are primarily on the go, National Processing offers the most common mobile POS available in the industry, SwipeSimple, as well as several solutions from Clover. These mobile POS devices connect to smartphones or tablets via Bluetooth and are compatible with Apple and Android devices. These solutions are EMV-enabled and can also process contactless payments along with traditional swipe transactions.

Virtual Terminals and Payments Gateways

Payment Gateway – National Processing supports eCommerce merchants with either Authorize.Net or its own National Processing Gateway. Although there are no fees to get a payment gateway set up, there may be a monthly gateway fee.

Virtual Terminals – The company offers a virtual terminal option through either Authorize.Net or National Processing Gateway. Furthermore, all accounts come with the SwipeSimple virtual terminal for mobile payments.

Tertiary Services Include:

Solutions to various high risk businesses – The high risk industries the company serves include subscription services, merchants with high sales volumes, firearm-related businesses, and tobacco and vaping businesses. It’s important to note that this is not an exhaustive list of the high risk industries the company works with, so we recommend that merchants contact the National Processing sales team to confirm other high risk merchants that the company would work with.

Cash Discount Program – Cash discounting is a program offered by some payment processors in which merchants incentivize customers to pay with cash by offering a discount on the total purchase amount. The idea behind this program is to offset the costs associated with accepting credit or debit card payments. The cash discount is applied as a fee to card transactions and is not applied to cash transactions. This way, merchants can effectively lower their processing costs while still offering their customers the option to pay with cards. National Processing provides a reliable cash discount program that is compliant with card brands and compatible with Clover, SwipeSimple, and Dejavoo devices

Subscription offerings – National Processing offers subscription solutions through the company’s Subscription solution and the Subscription Plus product. They are designed for merchants with high-volume sales and offer membership pricing with the option of additional devices at no cost. National Processing does not mention the processing volume that merchants are required to maintain for these plans. However, the company required the processing volume within the range of $75,000 and $200,0000 for the Subscription plan. The higher tier solution required over $200,000 in monthly processing volume.

Integrations – National Processing offers integration functionality with some of the most commonly used business apps, including:

  • QuickBooks
  • WooCommerce
  • Shopify

National Processing Pricing and Fees

There are clear and upfront public disclosures of National Processing merchant services rates on the company’s website. However, it is essential to not National Processing merchant services to high risk businesses for whom pricing is not always available upfront. Pricing for high risk businesses is determined on a case-by-case basis.

Businesses are classified as high risk due to various factors such as their business nature, industry, and the founder’s risk profile. These companies pose a potential for financial loss or harm to their reputation, making it difficult for merchants to obtain merchant account services. Some examples of high risk businesses include adult entertainment, gambling, gun retail, and cannabis vendors, among others.

Regulators have historically attempted to restrict these businesses by limiting their access to traditional banking and financial services, leading to high interchange rates charged by merchant acquirers willing to work with them. The rate reflects the level of risk the acquirer is taking on by providing services to the high risk merchant.

National Processing offers merchants the interchange-plus pricing models for the company’s service. Interchange-plus pricing is a pricing model for non-cash transaction processing where a processor adds a markup, called the interchange fee, set by card networks such as Visa and Mastercard, to the transaction cost. This model provides transparency, consistency, and cost-effectiveness as the markup is a constant percentage of the transaction amount and per-transaction fee for all transactions. Interchange-plus rates are divided into two categories, card present and card not present, with card not present transactions classified at a higher risk due to the possibility of errors or theft in entering card information.

However, it’s important to remember that National Processing also offers its services to high risk merchants, who are seldom offered an interchange-plus pricing structure. High risk businesses are almost always offered a tiered pricing plan. Tiered pricing is a pricing model employed by some payment processors for processing credit or debit card transactions. It divides processing fees into tiers, each with varying prices based on the type of card, transaction size, and other factors. Transactions that meet specific criteria, such as large transaction amounts or premium credit cards, are put into higher tiers and incur higher fees. Tiered pricing is often criticized for being less transparent as the exact transaction cost is unclear beforehand, making it challenging for merchants to budget and effectively accurately make an apple-to-apple comparison on prices.

Below is a breakdown of National Processing’s payment processing prices.

 

eCommerce

Retail

Restaurants

Nonprofit

Cash Discount

Subscription

Subscription Plus

Processing Rate

Interchange+ 0.29% + $0.15

Interchange+ 0.18% + $0.10

Interchange+ 0.14% + $0.07

Interchange+ 0.12% + $0.06

Interchange+ 0% + $0

Interchange+ 0.0% + $0.09

Interchange+ 0.0% + $0.05

Fixed monthly fee

 $                9.95 

 $                9.95 

 $                9.95 

 $                9.95 

 $              39.95 

 $              59.00 

 $                  199.00 

Additional Benefits

–Reprogram already existing POS equipment (based on technical specs)
 –Gateway setup
 –SwipeSimple mobile card reader

–Reprogram already existing POS equipment (based on technical specs)
 –Gateway setup
 –SwipeSimple mobile card reader

–Reprogram already existing POS equipment (based on technical specs)
 –Gateway setup
 –SwipeSimple mobile card reader

–Reprogram already existing POS equipment (based on technical specs)
 –Gateway setup
 –SwipeSimple mobile card reader
 –Free Device
 –Free Mobile Reader

–Reprogram already existing POS equipment (based on technical specs)
 –Gateway setup
 –SwipeSimple mobile card reader
 –Free Device
 –Free Mobile Reader

–Reprogram already existing POS equipment (based on technical specs)
 –Gateway setup
 –SwipeSimple mobile card reader
 –Free Device
 –Free Mobile Reader
 –Free Pin Pad

–Reprogram already existing POS equipment (based on technical specs)
 –Gateway setup
 –SwipeSimple mobile card reader
 –Free Device
 –Free Mobile Reader
 –Free Pin Pad
 –SwipeSimple Terminal  
 –Terminal is upgraded every two years

Separately, National Processing also offers pricing options for ACH and eChecks processing.

 

ACH

eCheck

Processing Rate

Interchange+ 1.5% + $0.48

Interchange+ 1.5% + $0.48

Fixed fee

 $              15.00 per month

 $              15.00 per month

Just as National Processing does with payment processing rates information, the company is very transparent about all the company’s fees that merchants can expect to pay if using National Processing services. Some of the fees applicable include PCI compliance fees, monthly fees, batch processing fees, gateway fees, AVS fees for, and retrieval and chargeback fees, among others.

Furthermore, there are various fees that the company charges. They are slightly at the low end, given the competition, while others may be higher. For example, National Processing and a monthly fee for PCI compliance of $7.95. The company’s chargeback fee is less than many other payment processors, at $15 per occurrence. The same is the case for retrieval fees, which comes in at five dollars for every retrieval. The company levies a fee for early termination in the amount of$295.

National Processing also charges several fees related to ACH. The setup cost for the services is $25, and a monthly recurring fee of $15. There is a $3.50 charge for every ACH transaction that is returned and a charge of $15 for every ACH transaction that is rejected.

Finally, it’s important to note that high risk merchants have different fees that are applicable to them compared to traditional businesses. High risk businesses are often subject to a rolling reserve requirement, where a percentage of payment volume must be set aside as a reserve by the payment processor. The reserve serves as security against potential losses from fraud or chargebacks, and the percentage can vary based on the level of risk associated with the payment processing. The funds may be held in an escrow account and are meant to protect both the payment processor and merchants from financial losses.

Details Of The Contract Offered and Other Legal Details Of National Processing

In 2019, National Processing was involved in a drawn-out litigation with MiCamp Solutions about the licensing of some of National Processing’s portfolio and money owed to National Processing under certain conditions. The companies sued each other for two years before the case was dismissed, with the outcome for each company unclear.

National Processing’s standard contract includes a $295 early termination fee (ETF), but it can be waived under certain conditions. If the merchant opts for a month-to-month agreement without any free equipment, the merchant will not incur any early termination fees. National Processing will waive the ETF in case of business sale/closure upon receiving proper documentation if they can’t match a competitor’s rate (with written proof). Still, if merchants switch to a competitor without giving National Processing a chance to check the offer, they will be charged the standard ETF.

Are There Any Complaints About National Processing

National Processing has had a profile set up with the Better Business Bureau since 2008. The company is proactive in responding to any inquiries raised on the website. However, less than ten complaints have been launched on the BBB site since the company’s registration with the agency. There have been only three complaints over the last three years and only one in the past year. As a result, Better Business Bureau assigns National Processing an A+ rating.

National Processing provides round-the-clock support via telephone, email, live chat, as well as various social media community management. The feedback from merchants is mostly positive, which is a welcome reprieve since the customer experience is the most common complaint among businesses in the payment processing industry.  

Customer Support

From experience and the reviews left by the users of Payment Depot, this merchant service provider supports its customers via:

24/7 Help & Support

24/7 customer support is available

Phone Support

24/7 Phone Support

Email

Email Support at [email protected]

FAQ

Basic FAQ section on website

Conclusion

National Processing provides payment processing services to small and medium-sized businesses of all risk profiles. The company offers payment processing, including ACH payment processing, point of sale solutions, mobile payment options, and more. The company uses Fiserv as its payment processor and charges customers based on the interchange-plus pricing model. Despite claims of not having any early termination fee or long-term agreements, merchants should review the terms of their agreement carefully. National Processing provides a wide range of products and services, but merchants should check all applicable fees and equipment procurement options to determine if they fit their needs.

get a free quote

Helcim Payment Processing Review

Helcim Review

Overall Rating

4.3/ 5.0
get a free quote

In-Depth Analysis

4.3

Price

Ease of Use

Features

Support

Pros

  • Easy and transparent process
  • No monthly charges
  • Robust management system

Cons

  • Single plan choice
  • Difficult integration w/3rd software

Overview

There are very few payment processors that strive to have honesty as one of their core tenets. Professing affordability and seamless use is common but honesty is also something that Helcim aims for. Helcim provides merchant accounts services and the company is headquartered in Calgary, Alberta, Canada, while also having an office and Seattle, Washington. The company serves small businesses in both countries, shunning long-term contracts, offering attractive pricing through the company’s interchange pass-through pricing model, and levies a minimal level of other charges. There is a range of essential merchant services offered by Helcim, including processing for credit card and debit card transactions, eCommerce and mobile payments and point-of-sale systems.

 

There’s also a company-branded card reader, an integrated payment platform for both traditional and online transactions, and support for several other popular payment options such as ACH, prepackaged payment links, and the processing of subscriptions. The company’s services are available to businesses of all sizes and types, including retail, e-commerce, and many other types of merchants.

 

 

The company provides conventional payment processing equipment and a comprehensive business management solution known as “Helcim Commerce,” aimed at serving merchants across all sales channels. They also provide various features such as tokenization to ensure secure transactions, and the company is one of the few payment processors that lets merchants accept payments globally.

Helcim History and Founder

Along with another cofounder, Nicolas Beique started the company in 2009 and currently serves as Helcim’s Chief Executive Officer. The company was established in Calgary, Alberta, Canada, and also has US offices in Seattle, Washington.

 

The company has been impressing merchants who give it their business, numerous online reviewers, and investors. Through a Series A funding round led by Generation Partners, Helcim Inc. raised CA$16 million, completed on March 21, 2022. The newly acquired funding will be utilized to introduce new products aimed at simplifying the payment process for businesses and incorporating the latest payment technology. The company raised capital to expand its team, planning to add over 150 team members covering key areas such as development, customer service, and sales to provide improved benefits.

What Is Helcim Best At?

Helcim is best at its transparent pricing structure and the top-notch customer experience exhibited by the company, both regarding Sales and Customer Support. The company’s pricing structure is based on an interchange-plus pricing model, and there are few additional fees. Helcim does not charge extra for statements or the initial set-up. Nor are there any recurring monthly or annual charges. Similarly, the company does not assess additional fees to help merchants attain PCI compliance. The company also does not have punitive charges for canceling prior to the duration of the contract since the company has no long-term contract requirements. Even the company’s chargeback fees are lower than the industry standard at $15, which Helcim will reimburse if the chargeback is successfully challenged.

 

Helcim’s Sales practices are highly ethical because the company hires full-time sales team members rather than bringing in independent contractors. An in-house sales team trumps independent sales organization every time, as their goals and incentives often align with the companies. Furthermore, companies take more responsibility for training and hands-on staff vetting as they have more control over internally hired sales teams. As a result, merchants’’ needs are better catered to by a more skilled and trained team, absent the deceptive sales tactics.

 

 

Helcim offers support via email and phone 24/7. Merchants can also launch a support inquiry through the company’s ticketing system. With a solid social media presence across LinkedIn, Facebook, Instagram, and Twitter, and over 200 YouTube tutorials, there’s never a shortage of educational material and resources to troubleshoot technical issues businesses face using Helcim’s services.       

Helcim Products and Services

Helcim offers a range of services, including connecting merchants to a processor, providing a company-branded card reader as the only point of sale solution offered by Helcim, and many other ancillary services.

 

The company offers all the payment options typically required by small businesses, with a fast and straightforward setup process. Beyond merely processing credit cards, the service provides a comprehensive online shopping platform and management tools for employees and customers.

 

The company guarantees to repay merchants for chargeback fees charged as long as the chargeback is successfully challenged. The company’s proprietary card reader is EMV-enabled and can accept NFC payments, so merchants can process transactions paid for by all major card networks as well as a multitude of digital wallets. The company’s self-branded card reader is compatible with all types of desktop computers and smartphones and tablets.

 

Helcim does not charge monthly fees or cancellation fees, nor does it have any charges for setup fees, user fees, deposit fees, or fees for Payment Card Industry (PCI) compliance. The company’s Card Vault is an all-in-one feature that enables merchants to offer subscriptions, free trials, and prorated billing plans to their customers. Furthermore, there are also built-in email features offered that allow businesses to automatically notify customers of necessary payment information updates or upcoming charges to their accounts.

 

According to some reviews, the only drawback of Helcim is the company’s limitations around a limited hardware selection. There are also some snags around the company’s offering options to integrate with widely used retail and business services.

 

Although Helcim only offers the company’s own branded Card Reader, merchants can purchase other hardware from the Helcim Shop available through the software. Merchants whose point-of-sale needs can be fulfilled through handheld card readers and smart devices will find Helcim’s software-centric approach appealing. On the other hand, restaurants and retailers requiring cash drawers, receipt printers, and barcode scanners will need to obtain this equipment from other vendors themselves.

 

The following is a brief overview of the company’s product suite.              

Payment Processing – 

Although Helcim does not process payments directly, the company has partnered with industry leader, Elavon, for that solution. The company lets merchants accept payments both in-person and online. As the name suggests, any retailer or merchant who has either a physical location of the business or an online presence and needs to collect payments, can seamlessly and quickly set up with Helcim to support payments for all major payment networks using the latest payment equipment to swipe, dip or tap, or have the option of virtual terminals, or in an embedded form in the company’s online store and apps.

 

Another form of payment that has taken off in usage among businesses is ACH. These payments are often a lot cheaper to process than traditional card network payments. They involve direct transfers between a network of participating banks and payments are received by the merchant much more quickly. Helcim automatically enrolls all its merchant customers to start accepting ACH payments without any additional steps.

 

Furthermore, Helcim’s software allows for accepting payments globally with built-in payment options and eliminates currency conversion worries. That’s not say that cross-border fees may no longer apply, those are still applicable for international transactions set by card payment networks.

 

 

Best of all, the type of equipment a business uses does not preclude them from the company’s services. It doesn’t matter if you’re an Apple guy, a PC-gal, or an Android user, all of Helcim’s solutions will be compatible with your devices.

 

Point of Sale and Mobile Solutions

POS terminals – Helcim offers a software-based POS solution that can be installed on various devices instead of physical POS terminals. There is the company’s own card reader that merchants can use to accept card-present transactions, and with it, businesses get all the functionalities without the additional costs associated with traditionally large and clunky POS systems.

 

Mobile POS – The company offers a mobile point of sale (mPOS) solution called Helcim Payments that is available for both Apple and Android devices and paired with the company’s own reader. This setup provides full mPOS capabilities for merchants. These capabilities allow merchants to build out a database of their products and/or services catalog, invoicing with no limits on the number of invoices created, and track inventory. The solution also allows businesses to build custom fields and drop-down menus, which can include discount codes, automated calculation of taxes, and invoice and payment due date reminders. It’s important to note that the user must provide hardware, and an optional cash drawer or barcode scanner, among other physical equipment, may be necessary.

 

Virtual Terminals and Online Payment Solutions

Helcim Hosted Payments – Helcim is really adopting the latest solutions needed for online sales and eCommerce. The company offers pre-built widgets that merchants can simply insert into their existing website, emails, and blogs, and they can do it with any programming knowledge. Even within the coding and developer community, there is a growing trend of adopting tools that have minimal coding requirements, often referred to as low-code or no-code. Helcim brings this trend to the FinTech space by offering the Hosted Payments option and letting merchants automatically have the tools such as a shopping cart, setting up and registering customers, invoicing them, and setting up a schedule of repeat payments from their own platforms.

 

Virtual Terminals – the company’s virtual terminal, included in all Helcim Commerce plans, is a web-based application that facilitates online orders from any desktop computer. Ideal for mail-order or phone-order businesses, it is a backup solution in case of technical difficulties with the credit card terminal. It’s important to note that keyed-in payments are considered card not present transactions and incur higher processing fees.

 

Helcim Online Store – Helcim provides an online store with customizable templates for branding (colors, logo), inventory integration, a shopping cart with discount codes, tax calculations, shipping integrations, and a built-in payment flow. Advanced DNS services are available for those with custom needs, with no extra cost for web hosting.

 

Helcim Online Orders – The company offers a tool that is very unique to food-ordering businesses or restaurants. Over the past few years, food delivery businesses have taken the offer as more and more customers have been introduced to the convenience of ordering deliveries online. Customers have started to prefer that as their primary means of eating out rather than going to restaurants enough that companies such as Helcim are catering to businesses that want to serve those customers but may not have the technical know-how or budgets to develop those capabilities in-house.Helcim’s Food Order tool can have the online ordering platform site either hosted for your or offer merchants the tools to integrate that into their existing website. Merchants can then be easily set up with their own menus and order forms, the taxes applicable, the ability to offer discounts, and the details around tipping policy.  

 

Helcim API – The company’s API provides access to over 80 different API actions for embedded payments and customizing solutions for merchants’ websites, internal billing systems, and shopping carts. The API tools let merchants securely store their customers’ card information and then process various types of transactions without having to collect that data again.

 

Helcim Javascript – this tool allows for the secure processing of credit card or bank information in a customizable web presence, using AJAX and working with the API tool. The Helcim JavaScript platform can be easily embedded into websites using just a few lines of code and is designed to work seamlessly with various popular shopping cart software solutions.

 

Tertiary Services Include:

Helcim Card Vault is a feature that allows merchants to bill their customers via scheduled payments, subscription plans, free trials, and prorated billing options.

Integration – the company offers a comprehensive suite of in-built features for managing credit card transactions, but some businesses may require additional integrations with accounting, invoicing, and back office systems. As a result, Helcim integrates with QuickBooks, Magento, and WooCommerce.

International Payments – Helcim is one of the few merchant account providers that lets businesses accept international payments. Although merchants won’t have to contend with the vagaries of currency conversion, they must still deal with transaction costs associated with cross-border fees levied by the major credit card networks.

Starting with Helcim is easy and quick; simply register and submit an application. There are no fixed fees and no obligation to sign a long-term contract, allowing you to cancel at any time without incurring any early-termination fees. No additional hardware is necessary; just download the Helcim app on your computer or smart device.

Helcim Pricing and Fees

Helcim’s credit card processing rates are excellent as all merchants, no matter their processing volume or history, are provided with an interchange-plus pricing plan. This is unlike many providers who either do not offer interchange-plus or keep it hidden. High-volume businesses can also take advantage of discounted rates.

 

Interchange-plus pricing is a pricing model used by some credit card processing companies where the merchant pays a fixed markup on top of the interchange fee set by the card issuer (Visa, Mastercard, etc.). This model provides transparency to the merchant as they know exactly what they are paying for the processing service, in addition to the cost of the interchange fee. The markup can be a flat rate or a percentage of the transaction value and is usually negotiated with the processing company. Interchange-plus pricing is generally considered to be a more transparent and cost-effective pricing model compared to tiered pricing.

 

Tiered pricing is a pricing model used by some credit card processors where transactions are grouped into different tiers (such as qualified, mid-qualified, and non-qualified), each with a different rate. The problem with this model is that it can be confusing for merchants, as it’s challenging to determine which rate applies to a given transaction. It can be difficult to know precisely what you’re paying for the processing service. Additionally, tiered pricing can sometimes result in higher costs for merchants, as processors may classify transactions in a way that leads to a higher tier and a higher rate.

 

With interchange-plus pricing, merchants know precisely what they’re paying for each transaction and can compare costs between different processing companies more efficiently. Additionally, because the markup is based on the actual cost of the interchange fee, there is less room for hidden fees and markups, making it a more cost-effective option for many merchants.

 

Like most providers, Helcim provides businesses with lower rates as their monthly processing volume increases, potentially leading to significant savings in processing costs as the business grows.

 

 

Helcim has a range of charges for in-person transaction payment processing depending on the volume of business processed by a merchant. The charges are broken down into buckets, starting with an interchange + 0.30%, along with additional eight cents for every transaction for a transaction volume of up to $25,000 per month. However, that rates get even more competitive on an escalating basis depending on volume. The best rate is for businesses doing more than five million dollars in transactions per month, which are charged an interchange + 0.10% along with additional five cents for every transaction.

Payment processing for card not present transactions by volume

 

$0 – $25,000/ month

Interchange + 0.50% +$0.25/ transaction

$25,001 – $50,000/ month

Interchange + 0.45% +$0.20/ transaction

$50,001 – $100,000/ month

Interchange + 0.40% +$0.20/ transaction

$100,001 – $250,000/ month

Interchange + 0.35% +$0.15/ transaction

$250,001 – $1 million/ month

Interchange + 0.30% +$0.15/ transaction

$1,000,001 – $5 million/ month

Interchange + 0.25% +$0.10/transaction

More than $5 million/ month

Interchange + 0.20% +$0.10/transaction


Point of Sale solution

Helcim Card Reader

$109 


Additional fees

 

Monthly charges 

$0 

PCI charges

$0 

Set up costs

$0 

Cancellation charges

$0 

ACH processing 

Interchange + 0.50% + $0.25/ transaction

Chargeback fee

$15/ chargeback

Helcim estimates its average credit card transaction fees of 1.86% + $0.08 for in-person transactions and 2.40% + $0.25 for keyed and online purchases. Note that prices, including interchange rates, may vary among credit card networks. 

 

Customer Support

From experience and the reviews left by the users of Payment Depot, this merchant service provider supports its customers via:

24/7 Help & Support

Technical Support Available M-F 7AM-7PM MST or Saturday/Sunday 11-7 MST

Phone Support

Available M-F 7AM-7PM MST or Saturday/Sunday 11-7 MST

Email

Email Support Available at [email protected]

FAQ

Helcim Learning Center Knowledge Base

Details Of The Contract Offered and Other Legal Details Of Helcim

Helcim’s merchant accounts offer flexible, month-to-month billing without any early termination fees. Merchants simply need to provide a 30 days advance notice of their intention to close their account. This is one of the best options available in an industry ripe with three-year contracts with automatic renewal and a termination fee, often of hundreds of dollars. Even worse, some payment processors levy fees such as liquidated damages. 

 

Liquidated damages are a sum of money stipulated in a contract as a reasonable estimate of the potential harm that may result from the early termination of merchant services. The amount is usually the processing fees charged on a merchant’s average monthly transaction volume on all months remaining in the contract.

 

While some providers may agree to waive the termination fee, this does not change the long-term contract obligation. However, with Helcim, you can avoid these issues, as they lead the trend toward actual month-to-month billing. Merchants are advised to review their service contracts carefully and follow the account closure instructions to ensure a smooth process.

 

 

Helcim currently has no FTC complaints against it. Nor are any ongoing litigations that we were able to find in our research.

Are There Any Complaints About Helcim

Helcim has a profile set up with the Better Business Bureau since 2014. There have been no complaints filed against Helcim over the last three years. We found only one online review on the Better Business Bureau website since the company set up a profile related to a merchant needing help applying for their account. Since then, the company has implemented a seamless process to intake, and onboard customers and that issue has not resurfaced as a complaint for the company. Helcim currently has an A+ rating with the Better Business Bureau.

 

Elsewhere online, we found only two complaints against Helcim. Both those complaints were similar to the one found on the Better Business Bureau website, relating to the company’s onboarding and activation process experienced by merchants.  Overall, our research shows that these complaints are mainly old and outliers, given the overwhelmingly positive response by merchants on their more recent experience with the company’s onboarding process. The fact that the company plans to allocate proceeds of its latest funding round towards sales and support is a testament to its seriousness in addressing these matters and continuing to grow.

 

 

The area of contention that merchants do complain about is the level of integration offered by Helcim. Although merchants using the company’s payment solutions can easily integrate with QuickBooks and WooCommerce, many feel these options are insufficient. In a similar vein, Helcim does have a limited number of options for point of sale terminals as the company has resorted to building out Helcim’s Card Reader and mobile solutions rather than building channel partnerships with third-party vendors of a physical point of sale solutions. 

Conclusion

Helcim is a top choice for many businesses. As a merchant account provider and credit card processor, the company has received many positive reviews on various online forums, and the company has consistently worked on resolving reported issues with the application process over time. The company has excellent customer reviews and offers transparent and cost-effective contract terms.


There are a few drawbacks; many would still prefer a more robust suite of options for both integration, as well as the number of point of sale terminals on offer by the company. As with all top-rated providers, merchants need to review their terms carefully.

get a free quote

Flagship Payment Processing Review

Flagship Merchant

Services Review

Overall Rating

4.1/ 5.0
get a free quote

In-Depth Analysis

4.1

Price

Ease of Use

Features

Support

Pros

  • High-quality features
  • Easy to use products
  • Increased security and fraud protection

Cons

  • Poor customer service

Overview

Businesses of various sizes should seek out merchant account providers to partner with based on several factors, how long the company has been in business, what kind of third-party vendors it partners with to resell their products or services, along with how a company manages the front-end client support needs and the seamless back-end logistics of such partnerships. Flagship Merchants Services crushes those criteria as it has put in the years – it has been operating since 2001 from Charlestown, Massachusetts. It partners with one of the largest credit card processors in the world, Fiserv, which also has a solid product line of hardware equipment to meet the needs of any type of business, regardless of how old or new.

 

Other areas that merchants often should evaluate payment processors on, given their history, is to check how well a processor has adapted to the changing FinTech landscape. Digital wallets were still in their infancy 20 years ago with the advent of eCommerce and PayPal. That payment method is expected to cross 53% of all eCommerce by 2025] . As consumers grow more comfortable with online and digital payment tools and with business being conducted at close to real-time speed, how well-equipped is a payment processor to meet the needs of merchants in these changing times? As security precautions increasingly swarm the conversation about transactions, given the speed and sophisticated methods of the flow of money, is the payment processor staying abreast of all the changes? We look into these questions and much more in this review of Flagship Merchant Services.

 

The company offers credit card processing solutions across traditional, virtual, and mobile platforms and has partnered with Clover to provide equipment to process payments. Although Flagship markets its products as simplifying PCI compliance, the company does not offer any PCI-compliance consultation to help merchants become more compliant. Retail and restaurant businesses are advertised as the target market for Flagship’s payment processing solutions, although the company also supports eCommerce platforms via Flagship’s payment gateway and virtual terminal solutions.

 

In addition to standard credit and debit card processing services, Flagship offers a free mobile app that can be used as a virtual terminal for on-the-go transactions. The app allows business owners to quickly run and view reports, oversee sales transactions, and manage financial statements. Flagship also offers a lending facility such as the same-day funding program. The company offers other ancillary services to help merchants. Flagship offers Pirq, a solution for businesses to address their marketing needs by setting up loyalty rewards for their customers.

 

Although details on processing fees and scalability are not readily available on the company’s website, Flagship offers payment processing via Fiserv and PaySafe, enabling the company to provide various services and options to merchants of varying sizes based on transaction volumes. Flagship provides support in-house to get merchants properly onboarded to set up and configure a point-of-sale solution and sufficiently trained on the company’s service solutions.

Flagship History and Founder

Flagship Merchants Services has been operating since 2001, since its founding in Charlestown, Massachusetts. Paysafe acquired the company, and Nathanial Short is currently overseeing the operations of the company. 

What Is Flagship Best At?

There are many different types of industries that Flagship caters to. The eCommerce industry is a clientele that Flagship targets, as are various types of food businesses, such as restaurants. Retailers are another merchant type that can use Flagship’s services as it also specializes in catering to them. Over the years, these industries have become intertwined in the kind of payment processing needed for their businesses.

 

For example, an eCommerce business in the past needed a payment solution for online transactions. There was the question of what services did a payment processor offer to address the needs of merchants in all areas of an online transaction cycle; a website, a shopping cart, a virtual terminal, a payment gateway, 3D Secure, chargeback protection and consultancy, etc. Today, such solutions are just as important to food services and brick-and-mortar retail businesses, as online shopping permeates these industries just as the in-store experience does.

 

 

As a result, all these businesses can benefit from various equipment available through any of Flagship’s partners, whether a traditional or wireless POS that can process EMV or contactless payments or using an app, such as ROAM, offered by the company. As always, all businesses can now have an online presence and seamless process payments because the company partners with the payment processing industry’s de facto standard of payment gateways, Authorize.Net.

Flagship Products and Services

Flagship offers merchants diverse solutions, including payment processing, mobile and traditional point of sale solutions, and additional services such as integrations, eCommerce options, merchant cash advances, and analytics-related features. Below is a highlight of some of the company’s service offerings.

 

 

Payment Processing – In today’s economic climate, it is crucial for businesses to accept all major credit cards. The company provides businesses with a processing solution that meets the merchant’s and their customers’ needs. While Flagship’s credit processing solutions are advertised as ideal for brick-and-mortar merchants in the retail and restaurant industries, the company also offers eCommerce and virtual terminal solutions. Flagship’s accepted payment methods include swipe, EMV, contactless, and mobile. 

Point of Sale and Mobile Apps

Point of Sale terminals – Flagship Merchant Services’ credit card processing solution, in partnership with Fiserv and Paysafe, can handle various transaction volumes. Still, details can only be obtained by contacting a representative. Their online form for further information does provide a breakdown of monthly processing volume into three categories: Under $1,000, Between $1,000-$10,000, and over $10,000. All of the company’s point of sale terminals are EMV and NFC compliant.

 

The company offers a range of hardware options, primarily Clover-based devices such as the Clover Flex, Clover Station, Clover Mini, and Clover Go, with features such as EMV, NFC, PIN code, and swipe payments. Clover Station offers over 200 apps, including a customer database, sales, team member management, and inventory. MobilePay, an option outside of Clover-based devices, is also available through the iPayment mobile app.

 

Flagship’s support team assists businesses in setting up and configuring their POS solutions properly. They offer training by working with a representative or calling their customer service support number.

 

Mobile POS – Flagship offers a free mobile app that functions as a virtual terminal, allowing business owners to conduct transactions on the go. This virtual terminal will enable owners to run and view reports, monitor sales transactions, and manage financial statements. In addition, the merchant console allows for establishing user permissions within the virtual terminal.

 

 

In continuing its strategy of building strong channel partnerships with world-class leaders of product domains, Flagship partners with iPayment to offer the company’s MobilePay suite of products and services for MPOS. 

Tertiary Services Include:

Lending services available through Flagship: lending activities available through a payment processor are ubiquitous nowadays. The availability of such a product can be a win-win for merchants and merchant service providers. The merchant has seamless access to credit without the lengthy wait times or convoluted application processes they’d be subject to via traditional lending channels, such as banks. The payment processor can quickly gauge the right amount of credit risk and creditworthiness of a merchant, given their history and transaction volume with the payment processor.

 

Flagship Dashboard and Analytics – Although an analytics and dashboard tool such as iAccess is now offered as a standard feature by most merchant account providers, it’s still reassuring to see that the cloud-based analytics and reporting tool is included for Flagship customers. This tool is ideal for monitoring the business effectively.

 

 

Flagship Gift Card and Loyalty Program Solutions – Pirq is a Flagship partner that allows merchants to set up gift cards and loyalty programs for their customers.

The Company’s Pricing and Fees

The rates and fees for Flagship merchant accounts can differ depending on a range of factors, such as the type of business a merchant operates, their processing volume, and the agent responsible for setting up their account. While Flagship usually offers a month-to-month contract that doesn’t involve cancellation fees, some Flagship Merchant Services reviews indicate that such costs exist.

 

Flagship mentions that they have no annual or monthly fee for their service. However, the company charges a PCI Compliance fee of $99 annually. Furthermore, some customers complained about a $29.99 monthly fee for affiliate marketing through Womply, a company that Flagship works with. Some business owners have reported being automatically enrolled in a free 60-day Womply trial in late 2016, and those who opted out after the trial ended were subsequently charged $29.99 per month.

 

To offer a payments gateway and a virtual terminal, Flagship partners with Authorize.net, which does post its transaction fees. There is no setup cost for authorize.net, and its advertised plans offer a monthly payment gateway for $25. There is an All-in-one plan, which charges 2.9% + $0.30 per transaction. The Payment Gateway-Only plan also charges a flat rate of $0.10 per transaction plus an additional $0.10 daily batch fee.

 

The hardware cost is not disclosed on the company’s website, but Flagship does provide a complimentary terminal with any contract. However, returning the equipment may incur extra charges if the agreement is terminated. The equipment packaging must be unopened in its original packaging, and the business must return it within 30 days of the purchase at their own expense. Additionally, the merchant may face a restocking fee between 15% and 25%.

 

There needs to be more information on per-transaction costs or specific software and licensing fees on Flagship’s website, making it impossible to compare the company to other credit card processors in our ratings. Instead, Flagship encourages new and existing customers to contact their sales team for detailed information on processing fees and hardware costs.

 

There is a company guarantee that If Flagship fails to provide the lowest total processing cost, the company will offer the business a $200 American Express gift card. Additionally, Flagship’s refer-a-merchant program rewards successful referrals with $100. However, given the lack of transparency regarding fees and hardware pricing, it is nearly impossible for businesses to research costs independently without first speaking to a sales representative.

 

Before signing up, merchants must thoroughly read and comprehend Flagship’s merchant account agreement. Carefully review for undisclosed fees or rates that are higher than anticipated. Flagship can provide interchange-plus pricing, and although the company does not seem to promote it proactively, merchants should also consider that option.

 

Although Flagship has a Rates & Fees page on its website, it needs to provide concrete information on rates or fees. Instead, the page contains marketing fluff about the company’s guarantee to beat competitor rates.

 

It is highly recommended that business owners thoroughly read and comprehend Flagship’s merchant account agreement before signing up. Like many other providers, Flagship uses multiple pricing structures, and often, unbeknownst to merchants, payment processors offer the plan most suitable to their bottom line. Interchange pass-through pricing plan is much more transparent and, most often, financially viable for businesses.

 

Since the company offers pricing via a sales rep and pricing-guarantee option, it’s recommended that to simplify the process of comparing rates and fees with other processors that merchants are considering, they can quickly request a quote from Flagship through this profile. That process is quick, free, and non-binding, giving business owners a clear idea of how Flagship Merchant Services’ pricing measures up. To begin, simply access the quote comparison form.

 

 

We have found alternative reviews for the company’s interchange plus pricing based on customer feedback. These reviews mentioned that Flagship’s interchange plus pricing is very competitive, and it is unfortunate that the company does not market this pricing structure more openly. Of course, it’s important to note that the rate available to any merchant can only be determined on their own merits, on a case-by-case basis.

Details Of The Contract Offered and Customer Service Details of Flagship

Flagship Merchant Services provides month-to-month contracts without early termination fees. The company offers a 24/7 customer and technical support line and a dedicated website for approved merchants to review transactions, run reports, or download statements.

 

Previously, merchant accounts came with long-term contracts and early termination fees. However, due to technology companies that have entered the fray over the past decade, such as Square and Stripe, to disrupt Financial Technology, such contract arrangements are becoming less and less common. Flagship offers some freebies to discourage merchants from closing their accounts, but it has limitations. Merchants can only receive one cheap terminal, which must be returned promptly if the account is closed.

 

 

Additionally, a long-term contract with an early termination fee is required, and merchants have reported difficulties canceling their accounts. As a result, buying processing equipment outright and sticking to month-to-month billing is generally the ideal option for merchants considering Flagship Merchant Services as their payment processor.

Are There Any Complaints About Flagship?

One of the biggest mainstays of payment processing services to a business is the level of support offered. It sounds obvious, given that the merchant service provider will be responsible for getting businesses their money promptly without any surprises. And if there are surprises, the payment processor proactively addresses any merchant concerns. Although Flagship offers around-the-clock multi-channel customer support, it isn’t always easy to get in touch with someone at the company.

 

It should be noted that there have been complaints on multiple online forums, other review platforms, as well as the Better Business Bureau that the account manager was available only sometimes, and issues involving transactions or account holds may need to be resolved by Fiserv and not Flagship.

 

Common issues highlighted by the complaints include funding holds, “hidden” fees, poor customer service after sign-up, and difficulty canceling service. While some of these issues are beyond Flagship’s control, they could better communicate more proactively with merchants around issues related to funding holds.

 

 

Additionally, sales agents could be more transparent about what merchants will be charged for. There have also been complaints about merchants being unable to get through to the company’s designated account manager or the support team to resolve their issues. Finally, some merchants have had difficulty canceling their service, and Flagship should promptly refund any fees charged on any services that merchants have not or are not using. 

Customer Support

From experience and the reviews left by the users of Payment Depot, this merchant service provider supports its customers via:

24/7 Help & Support

Not available

Phone Support

Not available

Email

Contact Form Available for Existing Merchants for Troubleshooting

FAQ

Basic FAQ Online Help Page

Conclusion

Overall, the company is a decent option for merchant services. Flagstar offers a range of payment processing solutions that cater to the needs of small and medium-sized businesses. The company provides payment processing services across traditional, virtual, and mobile platforms and has partnered with Clover to offer point of sale hardware devices and solutions.

 

Unfortunately, the company does not offer any type of PCI-compliance consultation to help merchants become more compliant, which is surprising since it is that compliances that is the underlying bedrock of their marketing efforts. The company’s services include payment processing, mobile and traditional point of sale solutions, and additional services such as integrations, eCommerce options, merchant cash advances, and analytics-related features.

 

 

The company charges no monthly or annual fee but charges a PCI Compliance fee of $99 annually. While the rates and fees for Flagship merchant accounts can differ depending on various factors, Flagship usually offers a month-to-month contract that doesn’t involve cancellation fees. Since the company does not disclose rates on its website and simultaneously offers to beat competitor pricing, we recommend that merchants negotiate hard to secure the best pricing available from the company.

get a free quote