Q&A
Merchant Account Questions & Answers
Have Any Merchant Account Questions?
Leave them below, and I'll try my best to answer them in a timely manner.
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March 7th, 2010 - 22:53
I’m very happy to have found this web-site. Great work.
I’m just starting an online retail store and trying to be as careful as possible in this entirely new to me area.
As I was reading your reviews, I noticed that Authorize.net is mentioned with top-rated service providers. After I searched for Authorize.net reviews, this was the first link that Google gave me: http://www.epinions.com/bsrv-Financial_Services-Merchant_Account_Processing-All-Authorize_net
I wonder if it affects the experience with the companies you’ve reviewed here, or it is a different story? Because of those reviews, I’m cautious about using services of a company (even top-rated) that is dealing with Authorize.net.
Thank you for this great web-site.
March 7th, 2010 - 23:10
Alisa,
Thanks for the nice comment about my site. Much appreciated.
You bring up a great question. When I originally started Merchant Maverick, I planned on adding reviews for payment gateway providers like Authorize.Net, later on down the road. However, after seeing how many of these providers were using Authorize.Net, I recently (yesterday) made up my mind that I need to try and find the best payment gateway as well. That way, I can base my reviews on which gateway a merchant account provider uses, in addition to the other criteria I use now. So, your question is a very timely one.
With that said, you’ll be hard pressed to find any provider that doesn’t offer Authorize.Net at least as a secondary payment gateway option. They’re a very large outfit, so they have a pretty large foothold in the market. Until I seriously dig deep into the company, I won’t know if they’re the best option, but I will say that they are the biggest, and have been doing this for years. Give me a day or so to really research all the gateways out there, and I’ll come back and leave a response here. Until then, if you have a gateway in mind that you think is good, then you should ask the provider if they’ll accommodate. Several of my top reviewed providers will be happy to work with you in choosing a gateway that you like. Just because Authorize.Net is their default, doesn’t mean that they won’t work with another gateway of your liking.
All the best. I’ll be in touch.
July 23rd, 2010 - 03:47
Alisa – Most merchant providers, including us, can work with most payment gateways. Authorize.net is the largest with like around 200K merchants. Because of their size, many merchants are familiar with them or have heard of them at some point. In the payment gateway industry, they are the biggest brand. You may find several negative reviews of their service online, but also keep in mind that is expected when you have that many customers. It is impossible for any company that size to satisfy every single merchant or to completely avoid any miscommunication that creates dissatisfaction.
There are several other excellent payment gateways out there but they do not have the brand recognition that Authorize.net has. If you decide to go with a particular gateway company, call the merchant provider you are interested in and ask them if they are compatible with that particular gateway. If they are, then you have a match. Such gateways are EprocessingNetwork.com, USAepay.com, plugnpay.com and nmi.com. I have heard good things about NMI from a few of my buddies that are owners of a merchant processing company that private label their gateway service.
Curtis
March 8th, 2010 - 09:02
Why don’y you review the banks that offer merchant services? It seems that these companies all use a bank for processing. Aren’t they an unnecessary additional cost in the “food chain”? Isn’t it inherently safer to deal with a bank?
Great site. Keep up the good work!
May 11th, 2010 - 00:05
Steve,
So sorry for the delay in response. For some reason my last reply didn’t go live, and here I am thinking that I already answered your question. I definitely plan on adding reviews for the banks that offer merchant services themselves, but here’s one reason (the main reason) why there are other merchant account providers that act as “middle-men.”
The major banks (i.e. Wells Fargo) are very risk averse, so they have strict guidelines on which merchants they approve. However, there are tons of merchants out there (probably like yourself) that based on the banks underwriting guidelines wouldn’t qualify for a merchant account. Maybe you pose too much of a risk to them…enter the ISO/MSP (Independent Sales Organization/Merchant Service Provider). These “middle-men” are able to get you approved because they basically tell the bank that they’re willing to shoulder some of that risk associated with you, thus giving the bank more confidence in dealing with you. It’s almost like they’re vouching for you.
July 23rd, 2010 - 03:47
Steve – Your particular question comes with an answer that can become very lengthy, but I will try to keep it short. All merchant accounts must be sponsored by a bank that is a member of Visa/MC. Not all banks are members of the associations, mostly your big banks are and your local regional ones are not. Many banks that are members of Visa/MC do not do merchant services themselves. There are some that do, such as Wells, BOA, Citi, etc. You are not paying additional costs by not going with a sponsoring bank that also has an in-house merchant service department. Look at FirstData, they are the 800 lb gorilla of our industry and they are not a bank. Guess who Wal-Mart uses. FirstaData, not a bank directly. Most of your processing is handled by companies (ISO’s / Processors) that are no way tied to being a financial institution.
Curtis
March 23rd, 2010 - 20:07
Would it be possible to name for us a few reputable online alternatives to PayPal?
March 23rd, 2010 - 20:11
Hi Eric,
I’d be taking a guess if I was to recommend you any alternatives to Paypal at the moment, as I haven’t yet researched any of them fully. I plan on adding reviews for all of those third-party type processor’s in the very near future, so check back periodically. In the meantime, take a look at the “How I Review” page. You may find some of my pointer’s helpful when doing your own research.
April 22nd, 2010 - 14:20
Can you help me understand why I have a contract with one company as my Merchant Services providor (Mercury Payments) but a second company (Global Pay) is also involved? Would Global be the actual, physical credit card processor with Mercury as the payment distributor? It is confusing to me. -J
April 26th, 2010 - 09:29
Eric,
thanks for this great site. Can you offer a list of merchants that specialize or at least accept someone with bad credit?
April 27th, 2010 - 22:45
Hi Patrick,
Great question. I’m planning on doing that soon, but I might be able to find you one in the meantime. PM me, and I’ll see what I can do.
June 22nd, 2010 - 14:43
Hi Eric,
Many providers can get a merchant approved with bad credit, such as I can help you on that. Having an open bankruptcy is a different story though.
Curtis
June 22nd, 2010 - 14:43
Sorry, I meant Patrick!
May 7th, 2010 - 12:03
I have a quick question. I am not a small business owner yet, however I am planning on becoming an independent producer and writer – this will include running an in-home production facility that will run tape, timecode, etc. – My question is, how can merchant maverick help me? Is this a service that I can use? I do imagine a time when I have local business come to me for service, and I begin to utilize merchants for supplies, credit cards and perhaps equipment. Thank you.
May 8th, 2010 - 01:57
Armando,
Thanks for the comment.
To answer your question about whether Merchant Maverick can help you or not, it would all depend on if you plan on accepting credit cards as a form of payment at some point in the future. It seems like you will, so that’s where this site comes into play.
I created MerchantMaverick.com out of frustration when I tried to find a reputable company that could help my clients accept credit cards through their websites. There are so many different providers out there, and so many shady companies that if you don’t do your research you may end up getting burned. Merchant Maverick is a sort of “background check” for all those companies. I do the research that I think merchants should be doing themselves anyway, but probably don’t have the time to do. Then, I rate those credit card processing companies (much like Consumer Reports), so the next guy can pick a reputable provider to work with.
Hope this helps.
May 14th, 2010 - 09:10
I want to know if you have any info on Heartland and Total Merchant Concepts? I did read about heatlands legal troubles a few years ago about a security breach. This was a couple of years ago should I be concerned now? They are both local and this is why I am considering them.
May 14th, 2010 - 09:55
Hi Jean,
Thanks for the inquiry.
How much time do you have before you need to know for sure? I ask because I can probably start doing my research now, and hopefully have a review for Heartland and Total by early next week. I’ll try to get you something sooner, but I’m a bit slammed right now. Does that work? I’ll PM you when I have the review ready to go.
May 14th, 2010 - 13:12
Im opening my shop June 1st.. Heres my email soccerfamily6@msn.com
Below are th emails from Heartland..
The cost for processing is outlined below (with volume under $50,000 per year)1. Flat monthly fee $50.00 per month 2. A $0.04 per item fee 3. Direct pass-through of Interchange, Authorization Access and Settlement Fees Dues and Assessments 4. No Statement Fee 5. No Annual Fee 6. One Time Installation/Training Fee $50.00 The cost for new equipment $200.00 to $400.00 (depending on the equipment you choose) this payment is billed out to you over a 6 month period.
May 14th, 2010 - 13:13
This is from Heartland too. This is his response about other fees I asked about.
No,no other fees like batch header fee’s,non pci compliance fee’s,annual fee’s ,rainy day fee’s,sunny day fee’s, no I’ll have my fee’s with cheese please fee’s.I know it gets pretty ridiculous…..:)
May 21st, 2010 - 02:45
Jean,
I have the Heartland review up, if you want to take a look.
June 22nd, 2010 - 14:38
Be sure the application and merchant agreement confirms this! It doesn’t matter what you are told by email or phone. What is in the application is what will be binding. This is our take on the whole PCI fee:
All merchants must be PCI compliant. There is a lot of different information floating around about this particular fee that most providers are charging for. Here is our best explanation for it. When PCI was created a number of years back, everyone in the chain had to comply. This includes your merchant provider, the processor, acquiring bank and last but not least the merchant. Providers absorbed a lot of expenses getting their end PCI compliant. To help recover the ongoing cost associated with training, educating and assisting merchants so they are in compliance, most providers are charging some sort of PCI fee. This also includes helping them answer the quarterly questionnaire that Visa / MC requires.
Because there are so many different types of services and solutions available that all must be in compliance, it can be a very daunting task. Products vary from credit card machines to Internet gateways, Yahoo Stores, POS systems, pin-pads, computer software, wireless systems and touch tone services.
Every big processor we are aware of charges some sort of fee for PCI Compliance. There are still numerous merchant applications that do not have any PCI fees listed even though they may be charging one. Our advice: Expect some sort of PCI fee or go with someone who already has a fee established. The reason is look at what happened several years back, PCI fees did not exist. Then all of a sudden most of the major processors started charging one. If a processor advertises no PCI fee, keep in mind that they could very well implement one tomorrow.
May 18th, 2010 - 10:21
Great website. I am looking to start a new career in Michigan and looking at merchant service sales. Any feedback as to best firm to work for or that you have heard has best sale staff? Any feedback on Electronic Payment Systems or North American Bancard? Thanks
July 23rd, 2010 - 03:44
Daniel,
I don’t have any info of Electronic Payment Systems, but I recently did a review of NAB. Also, I think that any of the top rated providers would be a good place for you to start. If they’re treating their merchants right, then chances are they treat their reps right too.
May 26th, 2010 - 20:44
Thanks for all this great info. One of my biggest criteria is affordability. I’m wondering if it’d be possible for you to include affordability and cost info in your reviews? Also, it might be difficult to keep up to date, but what would REALLY be helpful is if for each Merchant, you outlined all the monthly fees and minimums (gateway fees, statement fee, monthly minimum, average discount rate, transaction fee, etc.), so we could compare costs. You could even publish the date for your pricing info if you were concerned about your visitors not knowing how old the info is. Thanks! Laila
May 26th, 2010 - 22:27
Thanks for the input Laila. I’ve really made an effort not to include pricing/fees on my site just because they’re so difficult to actually get correct. All those fees that you see can change on a merchant to merchant basis, depending on big you are, how well you negotiate etc…
Considering your comments, I may try and come up with a good solution. I’ll see what I can do.
Thanks again!
May 27th, 2010 - 07:22
Great site, love the info. As a new eCommerce business, we were recently put on the TMF/Match list as the result of a single chargeback from a fraudulent transaction, despite having paid all balances in full with no dispute. We are looking for a payment processor that specializes TMF accounts. Can you recommend any?
May 29th, 2010 - 00:23
Great question Steve!
Let’s first start and see if we can get you off the list. Have you tried all of your options there? Initially, we need to find out who put you on the list. Do you know who it was?
I think the best plan of action is to be sure that we can’t get you off the list, then work to find you a processor that’ll be willing to deal with you.
July 14th, 2010 - 07:30
Once you are on Match, it is very difficult finding a provider that will be able to take your account. There are some that will, but far in-between. The best solution is to get that provider that placed you on there to remove you.
Match is a way that Visa/MasterCard tell merchants accepting credit cards is not a right, but a privilege and they must follow their rules.
Curtis
July 6th, 2010 - 22:36
I’m just wondering why some of these guys still offer leases if you say that leases are not the best way to go? Is there ever a case where leases are needed?
July 6th, 2010 - 22:38
Leases are generally a way to go for retail shops that are getting a POS system, which can run into the thousands of dollars, depending on what they get and how many stations. Many businesses do not have the capital in cases like that. Or they could get a traditional loan for it if they can get approved by a bank.
July 14th, 2010 - 21:40
This website has been a great help. Thanks a lot for the info.
I have been looking for a company that offers online merchant accounts in Latin America. It is a service-based business (I am a web designer) and obviously clients dont pay me until they are satisfied with the work. I went to the only bank in my country that offers it and in order for me to get a merchant account I must have an account with them with $50,000 on it for them to back any possible chargebacks. To top it off, ther require a minimum volume of $10,000 per month. Both conditions are impossible for me. I am unable to use paypal in my country (I can receive funds but I am not able to withdraw), so I dont know what to do.
I looked into a merchant account with moneybookers and they do accept my country. Problem is….moneybookers only allows a maximum of 1000 euros per US customer per every 90 days, and if it is over that, the US customer needs to be verified, which is impossible because moneybookers does not work in the US!
I looked into Durango and they seem to offer it, but the rates are astronomical (in the 8% per transaction range). Anyone knows of any company that offers international merchant accounts with lower fees than that?
July 23rd, 2010 - 03:41
Sorry about the delay on this. I’d have to look into it, but you might want to check out Global Payments.
July 19th, 2010 - 19:47
Any suggestions for getting setup with a merchant account- retail storefront- For someone with poor credit- Also, is it possible to get set-up with American Express?
Thank you
July 23rd, 2010 - 03:39
George,
There are several providers out there that would be willing to accept merchants with poor credit. Durango Merchant Services and AVPS being a couple. If you’d like some more help, feel free to contact me.
July 20th, 2010 - 19:30
Hello,
Your site is very useful, I wish I had found this earlier.
I would like to be able to deposit money into customers’ bank accounts. Just like paypal, google adsense,or any other institution that allows users to withdraw their balance to be transferred into their bank accounts, how is this done? What is involved to set this up on my website? Thanks
August 1st, 2010 - 06:28
Why havent you reviewed First Data, they are the largest and notorious for the leasing of machines. Also Global should be on the list you have EVO. One more thing, how about the rating who have the lowest rates.
August 4th, 2010 - 16:33
You mentioned Global Payments earlier to a different person who was asking about international solutions.
I am an American based business, the prior person who asked was not. My business is devoted entirely to people who live outside the USA.
First Q, do most of the companies you rated with five stars accept payments from around the globe with no problems and no astronomical fees?
Second Q, assuming the answer to my first Q is no, what merchant would be best for me?
August 4th, 2010 - 17:00
Also, it’s a small part time business.
The avg. sales (minus bank transfers) are $2,500.
August 13th, 2010 - 22:14
Said,
I apologize for the delay in response. It looks like I’m a bit late with this one, but I’ll give you my answer regardless.
No, not all of them are capable of taking on merchants that sell outside of the U.S.
Generally, I would have to know more about the exact nature of your business to be able to give you an exact recommendation. I’ve sent you a PM, so hopefully we can figure it out together.
August 4th, 2010 - 17:01
Sorry, that would be monthly sales.
August 23rd, 2010 - 11:03
Hello, I just stumbled across your site and was pretty impressed by all the information you provide. It gives a newbie to the industry, like myself, confidence to make an educated choice on providers.
My question is this: I was checking out Integrity Payment Systems and U.S. Bank Corp. merchant services… which you haven’t reviewed just yet. In my own findings, IPS has an A- Rating with BBB with 12 complaints… and I didn’t see anything on U.S. Bank Corp, but I can’t find a lot on their Merchant svc. Could you post on these two companies? I think you are an invaluable resource in this area, and I’d respect your take on them. Thank you!
August 25th, 2010 - 00:22
Hi Dee,
I’d be happy to look into them. It may take a bit of time though, so I encourage you to read my “How I Review” page, so you can do a little research for yourself. I’ll let you know when the review is up.