Braintree Payment Solutions Review

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Date Established
Chicago, IL


[UPDATE: Braintree has substantially altered their pricing model to accommodate lower volume merchants and startups, reducing formerly expensive fees to a very affordable level. Read on for more info.]

Is it a brain in the shape of a tree, or a tree that grows brains? I’m not entirely sure, but either way I can tell you that Braintree is definitely smart – smart as a business, and smart for businesses. (It’s an ecommerce/app-commerce/mobile-commerce solution only, I should note.)

Transparency and utility have the front seat when it comes to Braintree’s website and advertising. Their site and interface are enough to make a minimalist designer drool. So sleek, so neat, so – what’s the word – cool. Yes, Braintree has the cool factor of Apple in the mid ‘00s, but without the devastating price tag. They don’t have to sell to you – they make you want to do business with them using pure charm combined with industry-leading service and technical capabilities. Braintree is the cool kid in school, and everyone wants to be their friend.

I mean, just look at the crowd B.T. runs with (no, no, it’s cool – me and Brainy go way back). Suave services like GitHub, Airbnb, Fab, LevelUp, LivingSocial, even Angry Birds – they all choose Braintree, and for good reason. They call themselves a “full-stack” payments platform for developers, which essentially means that Braintree deals with everything from servers, to back end, to front end, to marketing, and everything in between. They traffic in every layer of software and development.

Braintree’s developer-friendly marketplace coding, recurring billing, and data portability make it an ideal and specialized processing option for forward-thinking app developers, social market-style businesses, and other internet-based, tech-driven merchants who need to provide seamless, frictionless billing while maintaining access to billing information in a way that most providers don’t allow.

eBay (via PayPal) acquired Braintree in September of 2013, but so far it looks like they will maintain it as an independent subsidiary. I just hope that eBay doesn’t kill the cool factor, since eBay is about as cool as a parent chaperone at your middle school dance. For the $800 million bones eBay dropped to pluck the fruit from Braintree, I’m guessing they’ll do everything they can to maintain appearances.

I wholeheartedly recommend Braintree to you. If you have no need for their developer tools and other capabilities, then you might want to look elsewhere for the lowest rates. In my mind, though, Braintree offers incredibly valuable services at a fair price, and almost any merchant could benefit from processing with them. Congratulations, Braintreeps (Braintree reps, get it? I didn’t make this up). You’ve earned a perfect 5-star rating.

Read on to learn more about what makes Braintree unique.

Products and Services:

With so many incredibly useful features, you’ll need to take a couple of days to process the possibilities. Everything is customizable, with the most painless integration you’re likely to find anywhere in the industry. Offerings include:

  • Merchant accounts: Braintree is a direct processor, so your merchant account comes directly from this provider.
  • International accounts: Available in the US, Canada, Europe and even Australia, Braintree is a truly global provider. Not to mention that you can accept payments in over 130 currencies. This is pretty unique.
  • Payment gateway: Their in-house gateway comes as part of your account, although merchants can purchase it separate (for a fairly steep fee). One of the big advantages to the Braintree gateways is unprecedented freedom (see below).
  • Data portability: The Braintree gateway uses their “vault” system to give you access to your customers’ stored payment information while maintaining PCI compliance. With other gateways, you lose access to this information if you decide to switch providers. This means that all of your recurring payments would be interrupted (a really bad thing). So I’m really impressed to see Braintree offering this wonderful feature.
  • Recurring billing: While a bunch of providers can hook you up with recurring billing, not many execute the service as well as Braintree. Customization is king with the Brain. This includes customized failed transaction management, pricing plans, discounts, promos, push notifications, rewards and add-ons, automatically prorated subscriptions, as well as search/reporting capabilities. And lets not forget the secure storage in Braintree’s vault.
  • Braintree Marketplace: For market-style merchants, you just cannot beat Braintree. If you fall into this category, I’m legitimately excited for you to try this service. Braintree will effortless split payments between you and your providers, keeping track of your 1099K tax forms along the way. Their flexible escrow service gives you the option to pay right away, or wait for fulfillment. Plus, it’s free. You only pay the normal processing rate for the initial transaction, and nothing else. Be aware that the marketplace feature only works for US-based companies with US-based providers.
  • Venmo payments: While we’re on the topic of Braintree’s marketplace, this service allows you to pay your market providers using their email addresses or mobile phone numbers, so you don’t have to deal with collecting and verifying bank account numbers.
  • One-touch payments: App developers will love Braintree’s proprietary Venmo Touch payment integration, allowing users to pay easily and securely.

Fees and Rates:

For most of us, the rates and fees charged by Braintree are incredibly simple:

  • 2.9%
  • $0.30 transaction fee

That’s it. One rate. No surcharges. No fees. So simple. That means:

  • No monthly minimum (used to be $75)
  • No monthly fee
  • No annual fee
  • No PCI compliance fee
  • No early termination fee
  • No set up fee
  • No gateway fees (monthly or setup)
  • No statement fees

You’ll be responsible for chargebacks, though, which come with a reasonable $15 fee. This is industry standard and  unavoidable. If you knew how much of an expensive pain in the ass it is for processors to deal with chargebacks, you’d consider $15 unbelievably low. Their two-day payout is another plus, and an improvement for Braintree.

While I like that Braintree provides incredibly accurate and plain disclosure here, flat rate services will never be as transparent as itemized fees and interchange-plus rates. All costs just come out of the 2.9% + $0.30, and you have no way of knowing the actual expense behind the scenes.

Still, I like this system for Braintree. Their old pricing system had expensive monthly minimums and fees, making them a cost-prohibited provider to merchants with smaller volumes. Now, with this new pricing structure, all merchants can afford to use Braintree’s unique services.

A Quick Example:

For a point of reference, 2.90% + $0.30 is what you’d expect to pay for non-qualified ecommerce payments with a good-quality processor, along with maybe 1.90% + $0.30 for qualified. Figuring a half and half split between the two, you’d pay about 2.40% + $0.30 on average, making Braintree about 0.5% more expensive that I might like to see. So if you’re doing $5,000 worth of sales each month, you might expect to pay an extra $25 with Braintree. But when you consider that standard monthly service and gateway fees usually come in at about $25 anyway, you can see that Braintree is actually offering competitive pricing, even for low-volume merchants. In my opinion, it’s absolutely worth it, especially if you’re going to take advantage of their unique marketplace, partners API, recurring billing and data storage features.

High volume merchants may qualify for customized pricing. Aside from that, though, don’t expect to be able to negotiate. Braintree is what it is, and they’re not going to make exceptions for just anyone. They’ve already made huge changes to their pricing model to accommodate more merchants, and they did a good job in my opinion.

Contract Length and Early Termination Fee:

You’ll have absolutely no early termination fee with Braintree. You can see the standard Braintree Merchant Agreement if you’re interested.

Another plus: If you do choose to leave Braintree, you get to take all of your customer data with you. Good deal.

Sales and Advertising Transparency:

With such a simple pricing structure, Braintree has an easy job when it comes to transparency. They disclose all rates, fees, and important contractual stipulations in plain sight, with absolutely no surprises.

The much tougher task here is properly describing all of Braintree’s many features and customization options. It’s a big job, but Braintree performs outstandingly. Their website is very well organized, with answered to just about every question you could conceive of.

Braintree doesn’t have thousands of independent agents hitting the pavement to try to sell their products. All salespeople are in-house as far as I know, and they know the Braintree products inside and out. This is an optimal sales situation.

Application Process:

I’m not sure how Braintree does it, but in late 2012 they launched a new Instant Merchant Application, allowing you to begin accepting payments within 30 minutes of applying. My first reaction to this was a cringe of inevitable failure. Surely these merchants must be subject to all sorts of account holds and freezes due to this practice. Right? Well, apparently not…

I searched far and wide for complaints related to this practice, but couldn’t find a single one. Since they’ve been using the instant service for over a year, I think it’s safe to say it really works. The application itself seems stunningly straightforward, brief, and entirely undaunting. All in all, Braintree provides the simplicity of setting up a Square account, but with none of the drawbacks.

This feature came along with their new fee structure, demonstrating Braintree’s movement toward opening their services to startups. Previously, Braintree only made sense for well-established, well-funded, experienced businesses.

Customer Service and Technical Support:

While many providers struggle to maintain an acceptable level of customer support, Braintree has a reputation for excellence in this category.

Braintree offers an extensive knowledgebase – an essential support feature in my opinion. Sometimes you just want to look something up without getting on the phone with customer support. By using this resource, you can solve the vast majority of issues on your own time.

If you need to get a hold of a knowledgeable “Braintreep” (Treep for short), you can do so during these hours:

  • Email: 5am to 8pm US Central Time, Monday through Friday
  • Phone: 9am to 5pm US Central Time, Monday through Friday

If it’s an emergency, you can get service 24/7/365 via email from reps and engineers on-call.

You’ll be impressed by Braintree’s Status page, where you can find information about outages or other technical difficulties in real time. This is a pretty unique and much-appreciated service.

Negative Reviews and Complaints:

Braintree has one complaint with the BBB in the past three years, which was resolved to the satisfaction of the merchant with no further details provided. This is exceptionally low!

I scoured the internet for Braintree complaints, and found a few. For the most part, these complaints don’t come from Braintree’s clients – they come from outsiders looking in complaining that their old pricing model was cost-prohibitive.

First of all, I think that Braintree was worth every penny, even with their old fees. They pack so many features and services in – the value is almost incalculable, at least for merchants who are going to utilize these features. For merchant who aren’t – why not just look elsewhere?

That’s all beside the point now, since Braintree offers a fixed-rate pricing solution with absolutely no additional fees. This is ideal for low-volume merchants, since the service is entirely pay-as-you-go.

Positive Reviews and Testimonials:

Okay, are you ready to be astounded? Sitting down? Not sipping your coffee? Okay…

Braintree has some of the most comprehensive and impressive case studies I’ve ever seen, alongside kind words from very successful companies. I mean, their client list is chock-full of unique apps and internet businesses, many of which provided complex challenges for payment processing. In their case studies, Braintree walks you through these challenges and their solutions. It’s really fascinating reading material if you’re interested in this sort of thing. Check them out.

Aside from these testimonials, you can find a number of independent, unbiased reviews on the net. Be aware, though, a lot of these reviews are outdated or otherwise flat-out incorrect. Here are some misconceptions:

  1. Braintree is too expensive for most merchants. FALSE. At one point Braintree’s pricing model was cost-prohibitive, but those days are long gone.
  2. Braintree uses FirstData or another processor. FALSE. Braintree is now a direct processor. When you sign up with them, you get a merchant account straight from Braintree – no middleman. For non-US-based merchant, this may differ.
  3. Braintree uses a tiered pricing structure. FALSE. At one point they did, but these days Braintree has a fixed-rate pricing model. 2.9% + $0.30 per transaction.

Got it? Good.

Final Verdict:

Braintree is probably the only provider I’ve rated at 5 stars without a widely available interchange-plus option. That would usually be a deal breaker for me at this level, but they pull it off. What their fixed-rate model lacks in interchange transparency it regains in consistency and affordability. When you consider the absolutely enormous number of unique features and service you get at absolutely no additional charge and no monthly fee – Braintree may have the best value in the entire ecommerce/app-commerce processing industry. I’m beyond impressed.

With everything Braintree has accomplished in the past year or two, they’re poised to own the ecommerce and m-commerce worlds. I think the PayPal buyout will provide the necessary fuel to make this happen right on time. App developers would be crazy not to thoroughly consider working with Braintree, and market-style business would be, too. These people are not only delivering a developer-friendly medium – they’re bringing ethical, transparent, high-quality processing services to the table. When you put these two attributes together, you get a solid 5-star processor. Good work!

Tom DeSimone

Tom DeSimone

Tom loves asking tough questions and getting straight answers, so he has a lot of fun calling payment processors for Merchant Maverick to cut through their smoke and mirrors and find the real deals. He has run a full-time editorial business from his home in New York’s Hudson Valley since 2010 and could not imagine a better job. When not busy writing and keeping credit processors honest, Tom enjoys backpacking in the mountains.
Tom DeSimone
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    Tom Townsend

    Braintree is far and above my choice for ALL my clients.

    Easy to set-up – Sandbox for testing, LIVE Person to to talk with on integration and or security issues. Lowest Cost of ALL the other major players and the first 50K earned NO FEE.

    Simon Raymont

    Braintree stole my money. They said it was easy to set up a merchant account. They sure did set me up: so I took my first two big payments. Days later I check my account. Weeks later I checked my account. Today I checked my account. Still no money. Now they are effectively ignoring all queries I make to hunt down the missing money or give explanation as to why. I am now having to contact my clients (very embarrassing) to assist with chargebacks so they clients can keep their money rather than it end up in Braintree’s pockets. I have lost over five hundred pounds (seven fifty) dollars to Braintree. AVOID BRAINTREE LIKE THE PLAGUE.

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    would you recommend strip or braintree for a company who starts accepting payments ?

    Thanks a lot for your advice.

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    Tom DeSimone


    Braintree is a great option. Very inexpensive and simple setup, low level of commitment. This is assuming you are an internet-based business. Otherwise, maybe consider Helcim.

    Good luck,

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    Is there a minimum transaction volume to use the service? I see that there are no fees (except charge backs) until you reach $50,000/year which leads me to believe they are trying to attract start-ups. (I will only have ~$500.00/month in subscription fees for my 3-6 month beta period.)

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    Tom DeSimone

    Hi Ben,

    No minimum required for Braintree‘s current pricing model. It’s entirely pay-as-you-go, meaning that if you don’t processes any transactions you won’t be charged a dime. Even if you process over $50K annually, you won’t be charged any subscription fees. You might be refering to their current promotion, which allows you to process $50K with no fees whatsoever. This means that if you process $50K, you keep $50K. To quote Braintree’s site:

    We’re committed to helping our customers launch and grow their businesses. So when you sign up with Braintree we’ll cover the fees on your first $50,000 of sales volume. That means no transaction fees, no interchange costs, and no catch. After your business crosses the $50,000 threshold, our standard 2.9% + $.30 per transaction rate applies. But for your first $50,000, you won’t be charged a cent (though chargebacks will still incur a $15 fee).

    And there are no time limits on this offer. You will have to be located in the US to qualify for it though. So you could end up payig basicically nothing for a low-volume business over the first year.

    Let me know if I can help you further!

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    Marcel Ruhf

    Just FYI: The same promotion is currently available in the UK (the first £30,000).
    So chances are that similar promotions are available in other countries where Braintree operates.

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    Ramiro Aguirre

    Great review! I am interested in starting an ecommerce business, but I am really confused about gateway providers, merchant accounts, and shopping carts. What is considered a good deal for a small ecommerce business? Is there a monthly service fee for the three accounts needed to operate an ecommerce business? Do you think shopify is a better option for me? I greatly appreciate your advice.

    Ramiro Aguirre

    Tom DeSimone

    Hi Ramiro,

    Thanks for checking us out! The answers to your questions depend on your specific needs, desires and processing volumes. If you want to build a good looking online store with as little effort and investment as possible, and get your payments account integrated as easily as possible, and you don’t need a lot of customization power, then using a service like Shopify will make the most sense for you. You’ll have to pay their monthly fee, but you’re paying for the convenience of using their tools to set up and maintain your online store. This comes with your gateway and merchant account included if you choose to use Shopify Payments. If not, they’ll charge you a transaction fee AND you’ll have to pay for the merchant account elsewhere, so it almost always makes more sense to use Shopify Payments if you use Shopify.

    If you use a service like Braintree, then you don’t pay any fee for your merchant account or your gateway. You just pay the 2.9% + $0.30, and that covers everything. But you’ll have to get your shopping cart and webstore design elsewhere, like through a service such as LemonStand.

    I know this is confusing. Let us know if we can help you further!

    Good luck,

    RatingNot Rated

    Just wanted your advice for my business credit card needs..FYI I’m located in Canada ….I have a unique contract that will need a credit card terminal or swiper for only one customer exclusively also located in Canada but parent company is in US. This contract will pay approx 100 000$ per year but the terminal will only be used for this one customer. Monthly this would vary but obviously average over the $ 5000$ mark.
    I initially thought that a phone app might be the easiest but I’m not sure after reading everything, I am so confused about what would be most cost effective, and holds on funds over the $5000 amount. Any info would help thanks!

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    Tom DeSimone

    Hi Tamar,

    You have a few options, each with varying costs and ease of use. The best solution will depend on exactly how you will be taking the payment. For most Canadian merchants, I suggest that they first give Helcim a look. Most of the time this the best, most reliable option. If you will be taking the card in person, then a card reader or terminal will help you to get the best rates (swiped transactions are cheaper than manually entered ones). If you’ll be taking payment over the phone (ie, without the cardholder present), then you’ll just need a virtual terminal to process cards from your computer. I wouldn’t suggest using any mobile/aggregating providers if you’ll be processing large transactions.

    Since this will all come from a single client, the amount you pay for processing will have a lot to do with how that particular client chooses to pay. For instance, what type of card they use and what country their payment account exists in will have an effect on the amount you pay to process. But all of that aside, I believe that Helcim will be the best deal for you. They even have a reasonable terminal rental program that won’t rip you off. Just make sure to give them an accurate picture of how you will be processing, including a good estimate of the largest transaction you could need to process. This will help to prevent funding holds as much as possible. If you need to process a transaction larger than your approved high-ticket amount, you’ll have to call up the processor for approval or else your funds will almost definitely be held. Many merchants are not aware of this and it leads to a lot of headaches.

    Good luck, and feel free to follow up if you need more help!


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    Daniel M.

    While ive been using braintree for 5 months now they switched me to a second merchant so i am getting double charged. I signed up thinking Braintree was the merchant and the gateway. But now they are the gateway and Bank card USA is the merchant? I am getting doubled charged now. i dont like it one bit. I still like braintree because they do a good job but seems like im getting screwed both ways.

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    Tom DeSimone

    Hi Daniel,

    Braintree is a direct processor, so there is no reason Bankcard USA should be involved with your account in any way. It sounds to me like Bankcard USA set you up with a separate account. I would contact Braintree right away about this. Please come back and let me know how this plays out.

    Good luck,

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    Shane S

    I received quotes from 8 different processors and Braintree was the highest price of all of them. They also were unwilling to negotiate at all. Companies like Paymentech, Merchant e-Solutions, First Data and Blue Pay Go!, were all cheaper.

    Of the 8 companies I compared, they had the highest per transaction cost ($.30) and the highest monthly minimum ($75). They had the 2nd highest setup fee ($99) and the highest monthly fee ($35).

    I actually wanted to choose them over the others because they are so forward thinking about data portability. But, why would I pay more money to choose them? If your bottom line is important, you may want to shop around – you may be able to get a much better deal elsewhere.

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    They do look very top notch, alas, as a Canadian business we can’t use them unless we create a legal U.S. presence. Hopefully they expand their reach …

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    Lisa Komolova

    Here is a quick update on the earlier conversation, Braintree has recently expanded to Canada as well as Europe. Check out our payment APIs and apply for a Braintree merchant account. We can help you accept international credit card payments in more than 130 currencies, and settle in 13 major currencies, including GBP, AUD, and EUR. Disclaimer: I work at Braintree

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    Amad E.

    Thanks Lisa. Braintree review updated coming soon. Take care!

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    t. falcon

    I love your site and all the useful information, but Braintree is clearly out. You see, I’m a sketch artist and writer looking for a good merchant rep to handle credit card transactions by cell phone. What solid company would you recommend for a little guppy like me. ;>

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    Merchant Maverick Admin


    I just sent you a private message. Let’s see if we can find you a good provider.

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    Jason Grunstra

    Wow. This company seems very forward thinking. Impressive!

    I LOVE the fact that they also offer data portability. Everyone reading reviews of merchant accounts should take a VERY SERIOUS look at data portability. A LOT of gateways (like *ahem*) will inadvertently LOCK YOU IN since you can’t get YOUR customers data out of the gateway once it’s in there. So if for any reason you ever wanted to move your merchant account elsewhere, you have to hope that your customers will re-enter any reoccurring subscription billing info! I got burned on this once and learned my lesson. Not enough people talk about this downside of gateways and data management. Remember merchants, these are YOUR customers and therefore you should consider it YOUR data. Don’t let someone keep it hostage from you!

    Their PCI compliance solution seems pretty clever too.


    $75 minimum, $35 monthly fee, $99 set up? You must be kidding!

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    Merchant Maverick Admin

    Thanks for the comment Bob. I wasn’t going to let this one through because, I can’t really say it adds anything to the conversation per my policy, but it does raise some good questions…

    Just by looking at those three incidental fees, do you feel that you’re able to accurately determine that Braintree is more expensive than any other providers? Wouldn’t you need to take other fees into consideration? Especially the discount rates? You’d probably actually have to have a full rate proposal from Braintree and the other provider in order to get a better idea of what the true cost of your merchant account would be…right?

    Additionally, do you think price is the only thing a merchant should look at when shopping for a merchant account? Is it that much of a commodity that price becomes the only thing that matters?

    I’m not trying to pick on you here Bob, but it’s difficult for me to add any validity to an argument that doesn’t present me with anything new or enlightening. I love being proven wrong, because that means I can get better at what I do, which in turn will better my reviews, but you gotta come with something better than “You must be kidding!” if you plan on being heard.

    RatingNot Rated

    Just an FYI for everyone. The reason for the B- rating could very well be because they don’t pay the BBB. Good info. Thanks for the review!

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    Bryan Johnson

    What a pleasant surprise. Thank you for the kind words.

    Bryan Johnson

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    The Merchant Maverick

    No sweat Bryan. You guys deserve it. :)

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    “Braintree Payment Solutions doesn’t have any complaints or negative reviews because they’re choosey with whom they do business with. By being selective, they can focus on a smaller number of big merchants, thus providing great customer service and support to them all.”

    I can clearly see that Braintree is the best in the business. But my small business doesn’t even earn enough revenue at this point to sign up with them. The little guy is stuck with PayPal etc, I suppose…

    Merchant Maverick Admin

    I wouldn’t say that you’re stuck with Paypal. There are other third-party providers like Google Checkout or 2Checkout as well, but you are right, it’d be much better for you to start off working with one of them until you have enough sales volume to justify the expense that will come with a merchant account. See this article here.

    RatingNot Rated

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