Dharma Merchant Services Review
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- Date Established
- San Francisco, CA
- Excellent customer support
- Ethical business practices and sales transparency
- Great for non-profit companies
- Interchange-plus pricing offered
- No early termination fee
- No annual fee
- No monthly minimum
- No setup fee
- No PCI compliance fee
The word dharma has many meanings in eastern cultures and spiritual beliefs. It denotes a sort of universal justice, righteous behavior, or steadfastness on a correct path in life. At first I felt that a merchant services provider appropriating a lotus blossom for their logo (a sacred symbol in Buddhism) and a weighty word like “dharma” for their company name might be disrespecting these essential spiritual elements – soiling them with the grimy muck of the credit card processing industry – like putting a giant arm-flailing inflatable Jesus on the lawn of a used car lot. After learning more about Dharma Merchant Services (DMS), however, the appropriation seems, well… appropriate.
The sacred lotus symbolizes a beauty and purity that, while rooted in pond mud and murky water, rises into the air on a strong stalk and blooms with so many clean, delicate petals. Likewise, Dharma Merchant Services – while sticking to a just, righteous path – transcends the putrid filth of the industry standard to bloom as something uniquely wonderful and enlightened.
Okay, okay, enough of the metaphorical mumbo jumbo. It’s just hard to avoid waxing poetical when faced with reviewing a company as perfect as Dharma, especially when I’m so used to raking through the pond muck, so to speak. Founded in 2007 by Jeff Marcous (former regional manger for Cardservice International, then SVP of Sales and Marketing at Authorize.Net) along with his daughter Alexia Marcous, Dharma flawlessly combines industry know-how with endlessly ethical business practices to cater to small businesses and non-profits. The duo created DMS to bring their philosophical convictions together with their knack for business, proving the two need not be mutually exclusive.
Dharma has, hands down, the absolute best advertising and sales transparency I’ve seen anywhere in the industry. They only use interchange-plus pricing, and they have no early termination fees, no annual fees, no monthly minimums, no application fees, and no added PCI compliance fees. I’m not sure how they manage to make any money, especially considering that they dedicate 50% of their net profits to charity. No one is getting filthy rich here. The people at Dharma make an honest living, and live with respect and integrity. And did I mention that they’re a certified green business and B-corp? I mean, come on. These people simply rock!
I can’t say enough good things about this business. If I were to create my own merchant services establishment, it would look a lot like this. I recommend them to you with absolutely no hesitation. The only thing to be aware of is that Dharma does not set up low volume accounts. So if you process less than $10K monthly in cards, you will be referred to Flint Mobile. We really love Flint too, so there’s nothing wrong with going that route if you have a lower monthly card payment volume.
Dharma Merchant Services is at least a 5.5 star business. But our ratings only go up to 5 stars… so we’ll have to stick to that.
Read the full review for more details, or just cut to the chase and sign up with them. You’ll never look back.
Products and Services:
Dharma Merchant Services provides a no-nonsense shopping experience for their merchants. They offer everything you need, and nothing you don’t. Check it out:
- Merchant accounts: As far as I can tell, Dharma uses Select Bankcard, Priority Payments, and Moneris Merchant Services for their processing. While some of these processors might not give you a great deal if you tried to set up your own account with them, Dharma has negotiated excellent deals, and they all provide outstanding service for Dharma’s merchants in return.
- Gateway/virtual terminal: Dharma now uses Authorize.Net as their primary gateway provider, but you can integrate other gateways if you choose. If you sign on with Authorize.Net Dharma will provider you with a free mobile card reader, a nice bonus. Non-profits get about $25 off their gateway setup fee. Check out this page for a complete list of features.
- Credit card machine sales: Another testament to Dharma’s transparency, they fully disclose the prices and associated costs of the terminals they offer, encouraging you to buy instead of lease. If you can’t afford to buy your terminal outright, they’ll even set you up with a payment plan. (Almost no one else in the industry is doing this.) They’ll also reprogram your existing terminal for a $100 fee, but you might want to consider buying a new EMV-capable terminal.
- Mobile/low-volume processing: Formerly called “Dharma Lite,” DMS provides a good option for low-volume merchants via their partner Flint, which I am also a big fan of. (A perfect example of how they go out of their way to save you money.) This service utilizes your phone’s camera to scan cards, so no swiper is needed. If you want to process through your full-service Dharma merchant account, they also sell smartphone/tablet swipers.
- Fundraising services: Dharma specializes in services for non-profit organizations, from everyday donations to online crowd-funding events. They’ll set you up with clean, professional donations pages for web and mobile, as well as event registration services. The costs here are a bit more than regular processing, of course, but they beat the industry standard for sure, offering very reasonable pricing with optional add-ons. Check it out.
- A warm, fuzzy feeling inside: Free with every account, Dharma offers a distinct tingle of satisfaction and restored faith in humanity. With excellent prices, sustainable business practices, and unbridled generosity, you’ll find yourself slipping into a calm, tranquil, meditative state while reading your processing statement each month.
Fees and Rates:
Dharma Merchant Service provides the ideal fee and rate structure, offering interchange-plus and only interchange-plus. They even feature a page called “Tiered Pricing: Just Say No.” (I almost choked on my coffee when I saw that.) Most processors don’t even disclose that cost-plus pricing exists! And almost all providers will try to set you up with tiered pricing. Furthermore, instead of setting you up with a $2,000 third-party lease for your credit card machine, they encourage you to buy one outright for as little as $230, and disclose all prices and fees front and center. If you already own one, they’ll reprogram your existing terminal for a $100 fee, but you may want to consider a new EMV-capable terminal, which will be necessary by the end of 2015 anyway. If you already have an EMV-capable terminal, you can probably get a free reprogramming.
Here’s an excellent example of how Dharma is trying to save you money, not make money for itself. I’ve called dozen of different processors for review purposes, often explaining that I only need to process $1,500 per month (to see how they treat low volume merchants). Sales agents usually pitch me overkill plans that are not at all cost effective for a small merchant. Dharma is different. The first service they’ll reach for is also the one that produces the smallest amount of profits for them – mobile processing through their partner Flint. For merchants processing less than $2,000 per month, with transactions of $1,000 or less, this makes the most financial sense.
- 1.95% for debit cards
- 2.95% for credit cards (and keyed in debit)
- No other fees whatsoever
This is a pay-as-you-go, no commitment service like PayPal Here. The difference is that instead of swiping cards with an attachment, you just use your phone camera to snap a picture of the card. It doesn’t get much more convenient than that. You should note that in this case, you don’t get your own unique merchant account. You share one with thousands of other merchants. This can translate to a greater likelihood for account holds and freezes if you start processing “high risk” transactions (such as high ticket prices or high weekly volumes).
Standard Merchant Accounts
If you need something more robust than offered through Flint, you can get your own, unique merchant account through Dharma. All accounts come with:
- No early termination fee
- No annual fee
- No application fee
- No additional PCI compliance fee
- No monthly minimums
- $15 monthly fee
- 0.25% (above actual cost)
- $0.10 per transaction (above actual cost)
- $15 monthly fee
- 0.35% (above actual cost)
- $0.15 per transaction (above actual cost)
Non-profit rates and fees for retail accounts are currently the same as for-profit retail accounts. For non-profit ecommerce accounts, however, you will see a discount:
- 0.30% (above actual cost)
- $0.15 per transaction (above actual cost)
Dharma discloses a few other incidental fees, all of which you’d have to pay with any provider.
- Late processing fee
- Insufficient funds fee
- Chargeback fee
- Address Verification fee for some key-entered transactions ($0.05)
- PCI Non-compliance fee if you don’t complete compliance program.
- Account closure fee ($25) is to cover the expense of keeping your records on file for six months, which they are required to do.
- FANF fee, which is paid directly to Visa and is required with all processors. Dharma doesn’t make money on this.
You should also note that if you need a gateway, it comes at an additional cost, including setup fees, monthly fees, and per transaction fees. For non-profits, Authorize.Net gateway setup fees are $75 instead of $99. There is also an additional $0.05 transaction fee alongside a $20 monthly fee. As a perk you’ll get a free mobile card reader when you set up an Authorize.Net gateway, which just about covers the entire set up cost.
Contract Length and Early Termination Fee:
Dharma has never charged an early termination fee, making your account with them a month-to-month agreement. Make sure to cancel your account as per the instructions in your contract, though, or else they’ll continue taking monthly fees from your bank account.
While they don’t charge an early termination fee, Dharma does charge a $25 account closure fee, which I consider a fair practice. Basically, their margins are so slim that they will charge you directly for the cost of keeping your account on file for six months after closure, which they are required to do.
We have a $25 account closure fee to help defray our costs (accounts are kept “on file” for six months, incurring fees) but you’re free to leave whenever you please.
This is a fee that I actually like. You see, all providers have this cost. The difference is that other providers will make up for it by charging you higher rates and more fees during the life of your contract. As you can imagine, they usually error on the side of caution and get overpaid in the process. Dharma adds transparency to this process by giving it to you straight.
Sales and Advertising Transparency:
I love how easy Dharma Merchant Services makes my life. I’m usually faced with hours of sorting through a mess of sales gimmicks and conflicting information for sales agents, along with upset merchants all weighing in with their two cents. Not with Dharma. They provide exhaustive (yet expertly organized) listings of fees, rates and other account considerations. Even if you’re feeling completely lost, they provide a great Get Guidance page to help you get your bearing in the search for merchant service.
I absolutely love their many comparison charts. After a while on their site, it’s easy to forget that they are trying to sell you something. The whole experience feels more like a helping hand than a sales pitch.
My one complaint here would be that they do not disclose their $25 account closure fee in bold print. Yes, it’s there, and their sales agents will almost definitely disclose it to you, but it wouldn’t hurt to put this information in plain sight – for the sake of transparency.
Customer Service and Technical Support:
While I love to see 24/7/365 support offered in-house, I also find that this kind of service rarely lives up to my expectations. Dharma compromises in this case. They’ll provide absolutely superb in-house support from extraordinarily knowledgeable and supportive staff during business hours, 8:00am – 5:00pm Pacific Time. For support that falls outside of this time frame, they will direct you to the appropriate party, depending on the issue and what processor they have you set up with.
They have an absolutely outstanding FAQ (one of the best written I’ve ever seen), along with other excellent article like this one. All of the information they provide is truly useful and accurate, and overall quite impressive to me.
I’m also glad to see that they very clearly explain why funding holds happen, and offer to arbitrate for you directly instead of leaving you to talk to the processor:
Funding holds can be caused for many different reasons, such as processing outside of your account parameters, processing a larger than normal transaction, your Website not being Compliant, or legitimate fraud. By reaching out to Dharma, we can facilitate a conversation with your processing bank to ensure the speediest resolution possible. Funding issues are only resolvable during regular business hours, and we recommend letting Dharma resolve funding issues on your behalf.
Overall, I’m entirely satisfied with Dharma’s support system. I’ll take quality over quantity (value over volume) any day.
Negative Reviews and Complaints:
This is a first. I cannot locate a single complaint or even neutral review of Dharma Merchant Services. They have a truly spotless reputation. Congratulations, Dharma!
They have an A rating with the BBB, and have had ZERO complaints in the past three years (which is the entire time they’ve had a BBB profile). Ironically, the BBB rates businesses with high volumes of resolved complaints as A+ businesses, but will only give DMS an “A” despite their immaculate reputation. Thanks BBB…
If I had to come up with a qualm myself, it would be the expense of gateway setup and gateway monthly fees. While I think that Dharma charges completely fair rates for these services (they charge exactly the recommended amount for an Authorize.Net gateway), you can find much less expensive options elsewhere. For instance, CDGcommerce (5 stars) offers a free Quantum gateway with no setup fees and no monthly fees.
So that’s something to consider if you’re an ecommerce business on a very tight budget, but it in no way sways my overall opinion of DMS.
Positive Reviews and Testimonials:
Here, we have the absolute opposite of the complaints section. I don’t even know where to start with showing you all of the praise Dharma garners. Just look at our own comments section. Literally every comment is positive. Here are a few excerpts from our authenticated reviews, coming from merchants we have verified as actual customers of Dharma Merchant Services:
I’d have to say, being in the customer service business all of my career, that I can recognize and appreciate good service when I see it. Dharma went above and beyond to get us started and we are extremely happy with the products and services they offer.
I have used dozens upon dozens of various merchant services and Dharma is by far (by a long, long far and wide far) the best company of its kind I have ever worked with.
My company has worked with Dharma for two years. I can’t say enough about their rates, customer service and business model. They always answer the phone and reply to emails quickly. If I had my way all of my vendors would be as easy to work with as Dharma.
Their rates are really good too. I had an account through another provider and no one had been able to beat the rates I was paying, until Jeff looked at my account. So I switched too and since then, I continue to be very happy with the services I’ve been receiving. I can’t recommend them more highly. I know the scale only goes up to five, but I’d give them a six.
…And that’s just on our site. Look around and you’ll find even more. Even Yelp users, who are notoriously harsh in my experience, have given DMS a perfect score. Feel free to check out Dharma’s fully-disclosed (first/last name plus business name) testimonials from businesses and non-profits while you’re at it.
What else can I say? Dharma Merchant Services is simply among the best of the best when it comes to honesty and integrity. They provide quality service and excellent prices. With such amazing services and sales practices, it’s no wonder that Dharma comes in as an absolute favorite merchant account provider. They have excellent connections in the industry and seem to get the most out of their partnerships. For low-volume merchants (under $10K monthly in card payments), you should head on over to Flint Mobile instead. Dharma refers all low-volume merchants to Flint.
A breath of fresh air in a smoggy industry, DMS does a great job of saving merchant money and providing a headache-free processing experience. Six years is plenty of time to cultivate a reputation, and Dharma Merchant Services has performed flawlessly during that time. I have every reason to believe that they will continue to do so for many years to come. The fact that they also care about community, social responsibility and the environment – and put their money where their mouth is – well, that’s just the icing on the cake, isn’t it? So go ahead and sign up with them already! You’ll get a great deal – and can even brag to your friends about being socially and environmentally conscious.
Congratulations Dharma, you’re a 5 star establishment.