Cayan (Merchant Warehouse) Review

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Date Established
Boston, MA


  • Interchange-plus pricing offered
  • Good customer support
  • Multiple products and services offered
  • No termination fees
  • No setup/application fees


Note that in early 2015, Merchant Warehouse rebranded itself as Cayan.

We’ve had good things to say about Cayan for years, and we’re not the only ones. Cayan has a great reputation, with many independent reviewers offering praise alongside industry awards. They even received the Electronic Transaction Association’s ISO of the Year award in 2009, which is a big deal in the merchant services industry. They’ve been in business since 1998, maintaining corporate headquarters in Boston, Massachusetts, and have kept up a positive buzz since the beginning.

The lack of an early termination fee (ETF) remains one of the major selling points for Cayan services. The industry standard is a three-year contract with early termination fees averaging at about $400, but sometimes exceeding $1,000. I always encourage merchants to negotiate the ETF out of their contracts, so it’s really a huge relief to see that you won’t have to worry about it here.

You also don’t have to worry about expensive third-party leases being shoved down your throat here (as they are with so many other providers). Cayan is literally one of the only providers to list prices alongside their terminal selection (believe it or not). Furthermore, their prices are extremely reasonable. I know this sounds so simple, but trust me – it’s essentially unheard of in this industry.

(If you’re interested in new and alternative payment technology, check out my detailed summary of Cayan’s new Genius Customer Engagement Platform below.)

You’ll find a number of negative reviews and complaints for Cayan online. They sign up thousands of merchants each month, so even though you can find a couple hundred complaints online, it’s not a big percentage of Cayan’s overall volume. More importantly, though, I was thrilled to see how well this company handles complaints in the public forum. Responses are not at all robotic, and representatives almost always acknowledge that Cayan shares the blame. In most cases, Cayan is willing to negotiate a satisfactory refund or agreement.

Cayan gets 4 out of 5 stars, a highly commendable rating. They provide high-quality products and services, conducting business ethically and respectfully. They don’t get a perfect score for a few reasons. For one, their complaint volume is a little high. I know it’s only a small percentage of their business overall, but it’s more than I like to see for a business of this size. Ideally, these complaints should be handled in-house before the merchant feels the need to go to a third party site. Second, Cayan doesn’t provide any information about interchange-plus pricing on their site, which we consider to be the fairest, most transparent pricing model for the majority of merchants. (They do offer it, though.) I’d also like to see a better disclosure of PCI compliance fees, and to have this fee charged monthly (prorated) instead of annually.

Overall, Cayan gets my seal of approval. I’d be happy to recommend them to all small and mid-sized businesses, especially those interested in new and alternative payment technology. Keep up the good work over there!

Check out the full review below for more info, and don’t forget to comment!

Products and Services:

With an impressive collection of products and services, all neatly and transparently cataloged on their site, Cayan stands out in this category. I like that they keep the focus on processing and marketing rather than delving into payroll solutions and other business services. This allows Cayan to provide a solid line of products that remains navigable and focused. Their offerings include:

  • Merchant accounts
  • Check processing
  • Terminal sales: Cayan earns major points with me in this category. Most providers will set you up with expensive, non-cancellable leases that rack up thousands of dollars in fees for you. Cayan does the exact opposite. They take care of their own terminal sales and provide extremely fair prices for their products. Almost no merchant service providers will disclose affordable terminal prices on their websites. Good work Cayan!
  • Gateway/virtual terminal: You get free use of a gateway and virtual terminal with your account.
  • Mobile processing: Using the free MerchantWARE Mobile app, you can process credit cards from your smartphone. If you want to swipe cards, you’ll have to get a swiper as well (not free).
  • Processing software
  • Gift card program
  • Cash advances

Genius Payments Platform:

We should take a minute to talk about Cayan’s newest product, a customer engagement platform called Genius. (Also note that Customer Engagement Platform and Genius are both registered trademarks.)

I was pretty skeptical of this service because a term as vague as “customer engagement platform” can lead to pretty disappointing results in my experience. It’s also a little difficult to figure out exactly what this service entails at first. Is it hardware, software, POS? No pictures or images of these products in action exist in the main ads for Genius. Even the “Demo” video doesn’t exactly demonstrate real-world use.

This is not to say I dislike these products. I actually think the Genius line has some cool offerings that could prove useful to merchants interested in getting ahead of the curve on processing technology.

Let’s ditch the term customer engagement platform for a minute though. Really, for merchants, it’s more of an alternative payment platform with mobile marketing features, including both hardware and software. Genius also features unified reporting, automatic software updates, and a so-called “out of scope” PCI solution (more on these below). Let me break down the Genius components for you:

1. Standard Payments

  • Standard credit and debit payments
  • Loyalty, reward and gift programs

2. Mobile Processing

  • Mobile app and card reader
  • Virtual terminal

3. New and Alternative Payment Technology

  • Near field communication (NFC): This technology allows customers to pay simply by placing their phone in front of the reader to access their mobile wallet (such as Softcard). iPhone don’t currently support NFC, though, and Apple doesn’t have plans to, so that removes a big demographic from the pool.
  • QR code payments: You know those little black and white square things? They’re called QR codes. Some services allow you to use a unique QR code to make payments. For instance, LevelUp (4.5 stars) offers a QR-based payment service. PayPal will also be releasing this type of service in early 2014 to allow customers to pay in-store with a QR code. Many loyalty programs also work based on QR codes, such as SpotOn.
  • EMV chips: EMV cards are already beginning to hit the market, adding security with an embedded circuit chip. This so-called “smart card” technology will be standard security in the US starting in 2015, making terminals without EMV readers obsolete.

4. Mobile Marketing

  • Digital rewards, coupons, and offers via SMS: This services allows you to send SMS messages to subscribing customers, and can even target customers who are in the vicinity of your store. I know I’d be more tempted to stop at the local coffee shop on my way to the bank if I got a coupon sent to me as I passed by. So I’m intrigued by this service. You can find similar services elsewhere, such as at Tatango, so if all you want is SMS coupons it might make sense to shop around.

Other Features:

  • Cloud-based software updates for new capabilities (I really like this)
  • Unified security through tokenization and encryption, offering an “out of scope solution,” meaning PCI compliance is not an issue (I really like this, too)
  • Omni-channel extension, which basically amounts to a unified reporting system that allows merchants to view all transactions across all payment systems (mobile, in-store, and ecommerce) in one place and via one login.

Okay, so now let me give you a breakdown of the Genius family of products:

  1. Genius ITX: This is the flagship product, a fully integrated countertop POS system. Includes all of the above (standard payments, new payments, mobile marketing) except not mobile processing (see Genius EX below).
  2. Genius STX: Exactly like Genius ITX, except it comes as a standalone device for merchants that don’t need a full POS.
  3. Genius TX: Includes standard payments, mobile marketing, and QR scanning (via integrated LevelUp). EMV and NFC are optional add-ons.
  4. Genius EX: This is really just mobile processing and a virtual terminal. It’s not a novel service, and doesn’t seem to add any benefits beyond these two fairly ubiquitous services. Calling it “customer engagement” might not be the most accurate marketing. For me, this doesn’t really fit with the rest of the Genius line, but it might offer some advantages over Cayan’s MerchantWARE mobile processing app and virtual terminal given the “other features” discussed above.

Do you see how these different packages and their cryptic names could be confusing? I’d like to see this all marketed more clearly. I don’t actually think that Cayan is trying to be deceptive here, though.

Fees and Rates:

Like so many processors, Cayan doesn’t advertise any rates or fees on its website. This makes sense in some ways, because rates and fees will vary widely from one merchant to the next based on a number of variables. I do think, however, that they could disclose at least some standardized fees along side descriptions of the pricing models they offer and the factors that affect rates.

They do offer cost-plus pricing for all merchants, although you’ll still likely have to contend with their industry standard $25 monthly minimum. If you have a higher volume, this won’t matter to you. If you have a lower volume, try to negotiate this down to an acceptable level (I’ve seen low-volume merchants get the minimum down to $5 with Cayan.)

They charge a $7.95 statement fee, which is pretty low and generally fair in my opinion.

The $99 PCI compliance fee seems to raise the most eyebrows among merchants. It’s a little steep, since the industry standard is closer to $80, but an extra dollar per month isn’t a huge deal. The real annoying thing is that they charge it in one shot instead of divided monthly, and they don’t prorate it or offer partial refunds from what I’ve seen. If you decide to switch providers the month after they charge for PCI, you’re stuck paying for the whole year.

In some cases, you’ll have to pay a 35% restocking fee on a returned terminal if you’ve removed its protective film or stickers. From what I’ve seen, though, Cayan is willing to make exceptions to this, especially if you simply can’t get the terminal to work.

Some fees you won’t see:

  • No application fee
  • No set up fee
  • No annual fee
  • No early cancellation fee

That’s what I like to see!

Contract Length and Early Termination Fee:

Cayan offers the best of the best in this category. They have no cancellation fees, making your account ostensibly month-to-month! You’ll still have to go through the cancellation procedures in order to stop them from billing you when you decide to stop using your account, but there is absolutely no penalty for doing so. Good job Cayan!

Sales and Advertising Transparency:

Looking at the Cayan site, I’m really impressed. They have one of the most comprehensive and professional looking sites I’ve seen in the industry, without being overwhelming or confusing. It’s also incredibly accommodating and not at all pushy. You’ll find few sales gimmicks, and no bold claims or misleading information anywhere. Their salespeople – in my experience – live up to the friendly and helpful air of the website. I spoke with a sales agent on the phone and via live chat. Both exchanges were pleasant and not at all deceptive.

I would have liked to see some articles or even pages devoted to rate models such as interchange-plus or tiered systems. While I trust Cayan to make ethical decisions and set merchants up with the best pricing for their unique needs, disclosing some of this information in plain sight would increase transparency. As of now, information about cost-plus pricing is conspicuously absent from the extensive articles and resources offered at Cayan.

While I don’t usually like to see “price match guarantee” style sales gimmicks, the Cayan $100 Guarantee seems somehow more plausible because of the low payout. Other providers promise $500 or $1,000, or even a full year of free processing – promises that smell a little fishy to me. I also have more faith in this promise because I’ve read actual reviews from people who have received a $100 check from Cayan.

Overall, I love all of their resources and I believe Cayan makes an admirable effort to market in a fair and honest manner. It’s also nice to see their public presence via Twitter, LinkedIn and Facebook.

Customer Service and Technical Support:

The support offered by Cayan looks stellar. With live chat from 9AM to midnight on weekdays, email support 9AM to 6PM (EST) on weekdays, and phone-based support 24/7, they’re outdoing a lot of the competition here. Furthermore:

We pride ourselves on providing World-Class Service to our customers. Our large in-house support staff undergoes weeks of training to ensure that we provide honest, clear-cut answers to your questions. We never outsource this service, which means you’ll be talking to a Cayan employee who knows your account and understands your business.

That’s what I like to hear. US-based support is a plus, but in-house support is the best. The downside here is that you might be met with longer wait times.

I used their live chat support feature midday on a weekday, and the responses were a little slow. I tried again after hours on a Friday and service was VERY slow. In fact, after over 20 minutes of waiting I just gave up.

On the bright side, the responses I did get were much more professional and intelligent than I’ve received elsewhere. I’d say it’s worth a little bit of a wait for better responses, but of course I’d rather have the best of both worlds.

I’m also a fan of Cayan’s Resources portal and their Support page.

Negative Reviews and Complaints:

Cayan has an A+ rating at the BBB, with 168 complaints over the last three years. When we updated this a little over a year ago, they had 97 complaints filed, so the volume has increased in the past year (72 filed in the last 12 months alone). Additionally, 46 BBB users left detailed reviews, 45 of which are negative. This is, to be honest, a little high for my liking. If this trend continues, I’m going to have to reconsider my rating of Cayan.

One of the truly remarkable things about Cayan has been and continues to be their dedication toward making things right with customers who have complaints. You’ll find dozens of well-considered, kind, sincerely apologetic and understanding responses from Cayan representatives. They take responsibility for preventable errors, and seem to genuinely care about the reputation of the company and the customer’s experience. You can see evidence of this in our comments section, as well as on the BBB reviews and Ripoff Reports. Unfortunately, they offered no responses via Yelp, where Cayan has 25 predominately negative reviews.

Of the complaints I browsed, these came up most often:

  • Withholding of funds: This can happen for a number of reasons. Chargebacks and/or suspicious charges can easily raise a red flag that will either get you suspended or shut down. Cayan uses First Data (FD) for their processing. If Cayan is boarding merchants using the First Data platform, it’s also possible that FD is underwriting those same accounts. If that’s the case, then FD has the authority to shut down an account without authorization from Cayan. The same goes for any acquiring banks that Cayan is associated with. They have the last word. With that said, a good ISO/MSP will have their own risk department that monitors their merchants’ accounts to catch any security issues before they get out of hand. Because once that red flag goes up with First Data, it’s shoot first, ask questions later. To learn what you can do to prevent this, check out this article.
  • Undisclosed PCI compliance fee: After reading a ton of complaints about this, it’s clear to me that Cayan really needs to do a better job when it comes to disclosing this $99 fee. The fee itself is justifiable – failure to disclose it is not. I’d like to see this information on their site. I’d also like to see it split into monthly payments, so that if I signed up in April (when they assess the PCI fee) and decide to cancel in May, I’m not stuck paying for a whole year to offset their PCI costs. Based on many reviews I read, Cayan is not generally willing to prorate this charge.
  • Difficulty cancelling: This complaint comes up a lot with Cayan, but I’m not sure why. Their cancellation process is actually a lot easier than many other providers. (Here’s a link to their page explaining the process.) Basically, you have to call Customer Service to submit a cancellation request, and then they will send you an email with a link for an online cancellation form. Having the process that includes a phone confirmation protects merchants from an unauthorized party cancelling the account. Having the digital step helps provide a record of the cancellation. I actually like this process quite a bit, much more than the standard “written request” that most providers ask for. My only concern is that some merchants report having trouble getting through to the cancellation department.

Positive Reviews and Testimonials:

There are plenty of testimonials on the Cayan website. Feel free to check them out. They aren’t dated, but I’m glad to see full names and business names attached to the reviews. You’ll also find some positive reviews in our comments section below.

Final Verdict:

Cayan (formerly Merchant Warehouse) offers some solid services, far exceeding the industry standard across the board. With fair payment terminal sales, quality products, good support, ethical sales practices, and no early termination fee – what’s not to like? Their new Genius “Customer Engagement Platform” is an interesting solution for merchants looking for new and alternative payment technologies and/or mobile marketing.

One of my favorite things about Cayan is seeing how company representative respond to public complaints. They seem to genuinely take note of Cayan’s shortcomings, and hopefully report the need for fixes to their managers. If they continue to take complaints and feedback to heart, Cayan could easily be a perfect five star processor in the near future. For now, 4 stars isn’t too shabby! They’ve earned my seal of approval.

Leave your comments below to share your experience!

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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    Marti Witmer

    ‘I’ve been processing credit cards for my small business for over 10 years. This is the WORST company I’ve ever dealt with. They charged me $82. to process $48. worth of charges. They said they sent me a refund check over a month ago. WHATEVER!!! Don’t use this company because you will REGRET IT!!!! They must train their employees on how to lie since they do it so well!!

    RatingNot Rated
    John Eastwood

    Why give a no start rating? Because this company Merchant Warehouse conjures up phony charges and then rips my account for the money. I never knew I had joined some fake “club” that had “fees” when I was only out to buy cheap card processing. But why am I pissed? Because their “customer service” is absolutly the worst in America. They arnt going to answer the phone and good luck with the broken web site email. THis kind of communication can take hours and if you are trying to run a business good luck. Get ready for a screw job.
    Now Im trying to get the account closed and guess what? Nobody home. Scam time.

    RatingNot Rated
    Judith Daniel

    This company is very difficult to communicate with, especially if you are trying to end your account. You will spend countless minutes being passed form number to number, only to be asked to levee a number for them to call you back. Things went fine at first, but when I needed to cancel, they were hiding, and those monthly fees keep adding up.


    Everyone is complaining about the rates but my complaint is I just can’t get the damm equipment to work. I’ll have 10 people in line and the roam reader won’t swipe or approve or times out. It’s never been so frustrating to take people’s money. You would think they would simplify the equipment to make more money. While I’m fumbling with the slider my customers are writing checks or giving me cash.

    Catherine Siebert

    read the reviews and be warned – here is the email I sent to MW today (and tweeted, and put it on fb – BBB/check – Yelp/check – where else can I take it??? Can you tell, I am peeved!) Super curious that the emailed link doesn’t work today – so they can charge me another month tomorrow.

    I expect that they will find more ways to get money from me. They make you believe that you are get a cheaper rate then Square (etc) but there are A TON of HIDDEN FEES they never mention.



    NO WHERE!!!




    PHONE – 586-216-7144

    On Wed, Sep 3, 2014 at 3:59 PM, wrote:

    Important Message from Merchant Warehouse

    Dear Merchant,

    To cancel your account, please visit the web site below and fill in the requested information.

    Click here to cancel

    Your account will not be closed until you complete the required information on the website. All merchants that submit cancellation requests on or after the 3rd business day of the month will be responsible for the entire month’s fees and will have the ability to process transactions until month end.

    If you process with any of the following companies, please contact them directly:

    American Express: 1-800-528-5200
    Discover: 1-800-347-2000 1-877-447-3938
    Cross Check: 1-800-843-7354

    Merchant Warehouse

    1 Federal Street, 2nd Floor, Boston, MA 02110 800.941.6557

    Jennifer ST.Pierre

    They have caused several negative charges after I closed the account. The customer service reps are rude and you have to be forceful to get a manager on the phone. They did not correct the problem and it has taken over 5 hours to get the account corrected. After all this, they tried to charge the account two more times. Now I cannot get through to customer service using the phone number on their billing statements- that I should no longer be getting. I have tried to contact the upper levels and have gotten no responce. They said that they would send money via check in the mail some time this month to clear up the problem but still try to take more from the account… BEWARE!


    3 days later and no closer to being able to cancel our account with Merchant Warehouse.

    Called and left another voicemail with their cancellation department. I guess if they never answer the phone they can simply keep on charging businesses and simply call it a “feature” that you need to speak to someone at an understaffed department in order to end your contract.

    Tom DeSimone

    Hi Michael,

    It seems like they really need to reevaluate their cancellation system. MW’s protocol is supposed to make things easier, compared to dealing with faxing/mailing cancellation forms. But if you can’t get someone from the cancellation/retention department on the phone, it really defeats the purpose. I’m hoping they pull through and get this taken care of, especially after the headache you had to deal with earlier. Please continue to keep us posted. And if you’re in the market for a new provider, I hope you’ll check out some of our other high rated providers.


    RatingNot Rated

    Update: Fortunately, Merchant Warehouse went ahead and emailed the link to cancel rather than make me call again. I am grateful for that as I hate wasting time on process that does not add any value.

    I will keep everyone updated on how smooth things go from here – including any fees related to closing out the account.

    Tom: I switched to Dharma. So far I am very impressed. They let me ask my questions via email, and usually respond within 15 minutes. They even initiated a call with me to clarify something in regards to adding a second terminal (they wanted to make sure they had the info to make sure they would have it ready to go on Monday).

    I would strongly consider changing the rating of Merchant Warehouse as there is no way that Dharma is only 1/2 star better.

    RatingNot Rated
    Tom DeSimone

    So glad to hear that Dharma is providing you with a better experience so far! Giving the Merchant Warehouse review an intensive update is on my to-do list, and you can be assured that your experience and the experiences of other merchants in recent months will be taken into serious consideration during our reassessment of the MW rating.


    RatingNot Rated

    Another update:

    At this point it looks like the cancellation was complete. Unfortunately, I just received an invoice for their Genius device for July even thought it was unusable for basically the entire month. I already made a request to Merchant Warehouse a few weeks ago (which was ignored) that I did not want to have to pay for the device rental as it was unusable in July.

    And since they take this with an automatic debit, there is little I can do but to pay for rental of a device that did not work due entirely to issue on Merchant Warehouses end.

    I hope you seriously consider lowering Merchant Warehouses rating. Having them at 4 1/2 stars makes it seem like they are comparable to a high quality Merchant processor. They are not.

    Tom DeSimone

    Hi again Michael,

    That’s not fair at all. They should certainly refund that month as a courtesy. If you hit a wall with them, and it sounds like you have, it might be time to take it to the BBB. Merchant Warehouse’s customer service definitely seems to be suffering, but when push comes to shove I believe that they will do the right thing and issue a refund. This is not to say that I think their unresponsiveness is at all acceptable, but I do think you might have better luck with that avenue.

    Please continue to keep us posted about this.


    RatingNot Rated

    Just a heads up that they really seem to be slipping recently.

    We went a full week without being able to use our swipe machine (Genius based). Their support promised a callback that never happened.

    When we finally were able to get in contact with someone who could help (by repeatedly calling in), they were able to download new software. We now have a workaround but still cannot use the Genius capabilities we paid extra for or process debit cards with a PIN.

    Add this to the fact that the week when we had no swipe capabilities, we were paying higher rates due to no fault of our own. Indeed, the issue was 100% of Merchant Warehouse.

    Worst of all was the email I received from them stating “All issues have been resolved” for our account. No. We still are running an a crippled system. We still are not getting the level of service (Genius) we paid extra for. And we still have not received a single callback stating when there will be a fix, and how they will compensate us for the extra fees, lost time and general lack of understanding for how critical merchant processing is for a business.


    It just gets worse.

    I was told that I would be contact by a staff member to have the higher rates adjusted. Still no callback.

    Called to cancel. My call was forwarded to voicemail promising (you guessed it), a callback. As I have never received a callback to any of the times they promised one, I am not feeling confident that they will actually call me back to start the cancellation process.

    The review states that they like the cancellation process. Sorry, but if you can’t even get the process started due to Merchant Warehouse not answering the phone then the process is broken.

    E. Karl

    Well Tom, I received a call from the cancellation dept. this am at 8:58. After reading many negative reviews on the MW process and other assorted issues I was bracing myself as I thought I would again have to call them but instead my phone rang! As a small “mom and pop” business in the Fingerlakes we have had many processors over the years and MW is (in our experience) not that bad. Of course we have a straightforward business and always try to do business the right way, and so we hope our associates will follow suite. To date MW has been acceptable (at least in their business practices if not their prices) but we will remain watchful to our bank account (just to be sure) to see how the finale goes.

    RatingNot Rated

    After two years I just tried to cancel and was switched to the “cancellation Dept.” where my the phone rang fro 14 minutes with no answer. I recalled and was advised “that was strange” by the rep and forwarded to the cancelation dept. again this time getting voicemail and left my contact information and two hours later I am still waiting for something to happen. I was leaving Merchant Warehouse with no ill will, I hope that will remain as such. We’ll see what happens. I will keep you posted on my cancellation experience.

    RatingNot Rated
    Tom DeSimone

    Please do keep us posted. I hope the cancellation process goes smoothly from here on out.


    RatingNot Rated
    Tiffani Kase

    I signed up with this firm based on all of the good reviews. However, despite my repeated questioning ahead of time about any and all fees, and multiple discussions about the infrequent use that I expected, the sales agent never once mentioned the fee they tack on if you fail to reach a minimum monthly sales number. They continue to debit my account month after month, despite my snail mail, my emails, and my telephone calls. I contacted the sales agent, again, by email, and she referred me to the client services number, and still no resolution. Today I am sending certified mail to their corporate office, and if they fail to refund those fees immediately, I will be pursuing what I expect to be a class action lawsuit in federal court. Fortunately, I’m a lawyer, and so I have the ability to fight these jerks without spending another fortune, and I’ll do my level best to find as many other businesses that I can who have been mistreated. If this is the best option out there for people, I can only imagine the nightmares I would have experienced with most of the others.

    RatingNot Rated
    Robin C

    I’ve had nothing but problems since signing up with Merchant Warehouse.

    They’ve held my funds that I charged Wed. the 7th at 4:10 central time, despite my sending immediate documentation of all my invoices & previous payment processing for this customer to their “risk dept” my funds have been held. WITHOUT ANY communication from them that they were holding my funds back.

    I go to my bank account two days after the charge and the funds aren’t there. That was my notice.

    One reason is that I have a $1,500 a month limit that I was totally unaware of.

    I discussed this briefly with the sales person that I probably would only process $1,000 to $2,000 per month.

    The charge I had was way over what I ever usually charge ($100 – $500), which is why I sent the documentation to the risk dept. immediately so there would NOT be a problem.

    The charge was for $1613.00

    My first transaction with Merchant Warehouse I did get my funds of $242.50 – which was my first charge, but the risk dept. requested documentation then never, ever got back with me on it. The funds did come to my account though.

    From that transaction & all the people I spoke to at Merchant Warehouse, I would have thought someone could have told me that I had a very low limit for processing.

    With PayPal I have never, ever had any problem in 6 years. I always receive my money within 2 days of the processing day. I’d say Pay Pal is much, much better than Merchant Warehouse even though I have heard of others there having issues – in 6 years I have not had any and other than their fees am happy as a clam there.

    I’m very upset & there is no point to paying a statement fee to Merchant Warehouse when I can only process $1,500 a month and have my funds delayed every time I take a payment through Merchant Warehouse.

    I needed those funds today before the close of business.

    There was no notice yesterday of funds being held, or that I had exceeded my monthly limit.

    Nothing. They should have an error that pops up when you process the payment “HEY YOU’RE EXCEEDING YOUR MONTHLY LIMIT”!! That way I could have used Pay Pal of which I have no limits.

    I couldn’t be more upset or more disappointed in Merchant Warehouse. They are not an upfront company at all. The risk dept should have contacted me within the following business day that might funds were going to be held!!

    What kind of outfit does business this way?? Merchant Warehouse is a rip off. I understand risk management, but laying a customer out in the cold like this is not defensible. There should have been a communication.

    The associate I was sending your way isn’t calling for an account after this, because he doesn’t want this kind of hassle either.

    Robin C

    Unbelievable update – DO NOT USE MERCHANT WAREHOUSE SCAM.

    So of course our customers are busy & can’t always be available for the risk department’s phone calls, etc.

    The the risk dept is only open 9 – 5 M-F Eastern except when they have to leave at 2 pm on a Friday and of course lunch and breaks.

    That is why you don’t hear from the risk department that they’ve held your funds for 3 or 4 days after the charge. They are waaay under staffed.

    I should have received my funds Friday, but now the earliest, EARLIEST I can get the funds is Tuesday, except the risk dept. cannot guarantee the higher ups at Merchant Warehouse will approve the charge to go through at all. That is an extra layer of b.s. that can take another day or two just to find out that – nope we’re not taking this charge at all.

    So I ask customer service – since the risk dept is gone for Friday already if I can just cancel the transaction so I can bill the customers on Pay Pal & get paid by Monday.

    Merchant Warehouse said, “If you refund the funds to your customer, then $1613.00 will be taken immediately from your bank account.”

    Are you kidding me?????

    Before you sign up with them be sure to read all the revues here & that you are prepared to suffer the consequences of what others here have had happen before you move your application forward.

    If Pay Pal’s risk dept can start communications within 30 min. of a transaction 7 days a week – why can’t Merchant Warehouse?

    One time I had a customer pay with a friend’s card & within 20 min. Pay Pal had sent me a notice to not send the product – that there could be a problem with the card & they are looking in to it.

    When I first started with Pay Pal – high transactions would have their risk dept. immediately call the customer to verify the charge & everything sailed through perfectly.

    In the end, I do not think Merchant Warehouse will save you any money over processing with Pay Pal and could cost you way more.

    RatingNot Rated
    Laurence Hallas

    Was with them for many years. Grumbled about all the increasing surcharges and an itemized to death invoice every month but I could always call them and get an answer on things.

    Reached the point where we realized we could get a better deal with another provider – a MUCH better deal so canceled the service. The mistake I made was to cancel BEFORE I had finished signing up with the other provider. Merchant Warehouse within 24 hrs put me on the Terminated Merchant File issued by Visa and MasterCard! For those of you who don’t know (as I didn’t), this is the dreaded Blacklist and almost impossible to get off of.

    Here is a link for a better explanation for those needing advice:

    Essentially only the company that put you on the list can take you off and you can NOT RUN ANY CHARGES from any merchant anywhere! You are dead in the water.

    Calls to Merchant Service were met with polite ignorance. They said my account looked fine, but clearly it was not. After a week of phoning and working my way up through the system, I was taken off the list without explanation though perhaps the last call from my lawyer may have helped.

    I do not know what happened, but the only thing I can surmise is that some pinhead in the organization put me on the black list because they had not gotten their monthly fee that closed my account 3 days later (all of $54). They had told me that they would be taking the fee out and I of course was willing to pay.

    So beware! They are a good company as long as you stay with them. Getting out may end up being a big issue. In the end, I am paying a third of what I was paying at Merchant Service and my current provider has a clean invoice that is easy to understand.

    RatingNot Rated
    Eric Sartoris

    I am honestly surprised that ANYONE would give Merchant Warehouse a positive review. Merchant Warehouse is one of those companies that make you wonder, “How the heck can they possibly remain in business?” They are underhanded, and they have absolutely NO ethics or morals. They assess nuisance fees, without your permission, and then refuse to refund your money.

    As with many of the other reviews, they blindsided us with a $99 “Compliance Service Package” that we neither wanted nor asked for nor needed. They said, “Well, we’ve already taken that $99, and it is non-refundable.”

    That’s on top of all of their OTHER nuisance fees. The monthly statements show a total of 23 different fees and charges. Whatever percentage that they quoted you is completely false. Our last statement (and I mean our LAST statement, since we closed the account right away) showed that we paid fees of $162 on credit card charges of only $1500.

    That’s almost 11%, people. They charge 11% to “accept” your money.


    These are scam artists. The negative reviews below are accurate. Do yourselves a huge favor and stay away from these crooks.




    Michael White

    Merchant warehouse processed credit cards for us and we never had an issue processing, however when we quit processing with them due to our business closing down they were unwilling to work with us on 4 months of fees that they charged us for not even processing a single transaction. We realized we shared blame in that we had oversight of not closing the account down so we were not being unrealistic like asking for a full refund. We called in to close our account on March 6 after we were charged the 4th $50 charge for no card processing. While explaining the situation to the MW customer service person at how we had closed down and quit processing 4 months earlier he basically said in the nicest way he could…”that is your problem”. I would have at least expected a “hey let me see if there is something we can do” even if they would have told me no after that I would have at least felt like he tried and we were being treated like a true client vs a merchant number and payment to them. That is the only reason I am rating their service low is because this is my first experience with their CSR group and I was not impressed by the way they handled the situation.

    Parker Tauzier

    I am pretty disappointed in merchant warehouse. I have been being charged OVER 5% for processing including all fees at the end of the month. I have had HORRIBLE customer service issues with frontline CSR’s. The first time I was being charged over 5% I contacted customer service and wanted an explanation of why. It took over two weeks to finally come to a conclusion on the issue. The issue was merchant warehouse’s fault and was supposedly corrected and I had an refund for the over charges. Next month’s statement was around 3.5% total in fees charged vs payments taken. I was ok with this. Now, this months fees are back to 5% again. I am in the process of canceling my account because I am fed up with the fees I am being charged. Over 5% for processing is insane. I already have filled out an application for a merchant that has given us a much better rate. Really disappointed customer.

    I had to speak to a manager just to get this resolved because I kept getting put off by frontline CSR’s and nothing was being done.


    This is a continuation of the previous two reviews. Account cancellation saga is finally over. Success at last! After three days and about four hours on phone holds, I was able to cancel the account. Four stars in celebration!!!

    Eric Sartoris

    Sorry, but they are still a one (or zero) star company. I’m glad that you were finally able to get out from under them, but that doesn’t absolve them of their wrongdoings.

    Even IF they ever refund the money they took from us, the business relationship was SO AWFUL that they will always suck, in my book.

    Look at it this way: Take a dinner plate. Smash it on the ground, then look at it and say “I’m sorry!” Now look at the plate again. Is it all better?


    This is a continuation of my account cancellation saga.

    Day 3: This time customer service picked up promptly. Again, customer service transferred me to “cancellation” department where the recorded message informed me that no one is available to take my call. I will just have to keep trying in hopes some day someone will actually pick up the phone and do their job.

    I will give it a two stars this time, only because customer service answered promptly today.


    I would give 0 stars but that this website does not offer this option. I have used Merchant Warehouse as our card processor for four years. Because Merchant Warehouse fees are considerably higher than those charged by its competition, I have decided to switch processors. The difficulty and time needed to cancel are absolutely staggering. Here is my experience trying to cancel:

    Day 1: While sales staff picks up the phone immediately, the customer service staff routinely puts you on hold for thirty minutes or more. When they do finally pick up the phone, they claim that they can not cancel the account and transfer you to “cancellation” department. That is another wait of thirty minutes or so, only to find out that, even though it is their business hours, there is no one in cancellation department to answer your call. Another call to customer service department, another half an hour hold but the service rep refuses to provide direct number to the “cancellation” department.

    Day 2. Again, call to customer service and again 30 minutes on hold. Again, transfer to “cancellation” department. Again, no one picks up the phone. Second attempt a few hours later with exactly the same result.

    So far nearly three hours spent on holds and no results. Will try again tomorrow.

    Downhill Mike

    I have been with Merchant Warehouse for 9 years and was just insulted by a supervisor badly. We had our 1st charge back ever. I have elderly parents that are sick, now passed that needed my attention. I flew across the country a few times to take care of this. Because of my travels I sent in the signed credit card slip with the customers signature stating “I agree to pay the above amount” a few days late. The customer did not recognize the charge and that was their dispute. This clearly shows their signature and agreement to pay. Merchant Warehouse sided with the cardholder and said “I lose”. This is obviously not right and I feel someone just stole $500.00 from me, that I can’t afford at this time. Even if I could afford it, this is not the right thing to do. Please, please read the small print because it does not help Merchant Warehouses customers. I am immediately canceling this company that is not willing to do what is right, or protect their customers. Worst experience I have ever had. I even gave them a chance t keep me as a customer, but they do not want my business. That is bad business and I would never do that to one of our customers. Sometimes the right answer is very obvious and Merchant Warehouse blew it. Ex-Customer, Mike.

    RatingNot Rated
    Barbara Day

    This is our 2nd day at trying to use our analog terminal which was programmed wrong from the beginning. To say this has caused problems in the work place is an understatement. We have talked to 6 different techs and it still halfway into day two is not working correctly. I am so frustrated and so disappointed in Customer Service for not walking us through each transaction to ensure performance. One tech was irritated because “We” didn’t know how to do each transaction. When I signed up I said we had never taken cards before. I researched and thought I had a pretty first rate company to deal with and we were excited for our business. Now, we have customers mad at us and spend hours waiting on the phone for service and still they can’t get it right. I want some amends made, which my business deserves.

    RatingNot Rated
    Janelle Martignetti

    While Merchant Warehouse strives to ensure that there are never any delays in funding, it appears that there was an unforseen issue which happened to delay the deposit of one particular batch for this merchant. As a rule of thumb funding delays are most common for businesses that choose not to auto batch the terminal nightly. Thus, if the terminal is batched out later than the cut off time the merchant can sometimes see a one day delay. In this case we are happy to report that the batch was funded the very next business day. On behalf of Merchant Warehouse I apologize for the inconvenience and encourage you to try us again. If I can be of any assistance please do not hesitate to contact me.

    Janelle Martignetti
    Relationship Manager

    RatingNot Rated
    Derrell Winowich

    We have only been with MW since February and except for dealing with the headphone jack ID Tech swipers we started with using our Registroid Cloud POS system on the android tablets, we hadn’t really had any problems until today. We own a small brewpub and process cc’s 6 days a week through the system, and nothing has changed for months. Our “Normal” situation is that we receive our funds the second day after the batch posts (Batch goes in Wednesday morning at 1:30 am then posts in bank account Thursday morning by the time I wake up), and on weekends, the thursday mornings batch would go in by Saturday morning. Friday and Saturdays batches normally are together and post to my bank account on Tuesday morning before I wake up (9 AM). NOT this week however, for some reason when I checked my bank account on Tuesday, I was surprised to see that the weekends batches hadn’t posted. I called MW and was told that Risk Management had apparently placed a hold on those two weekend batches. I tried to escalate to another person and was told that his supervisor was aware of the situation and would call me by closing time today. Surprise, the call never came and my money is still not in the bank. Luckily I have access to one of the small card swipers with another company and I processed todays cards with it. until they resolve this issue, I will not use MW to process cc’s again. I am a very small business and cant afford to have the weekends payments to be held over whatever they deem unusual without at least contacting me first. Why do they just hold the money? it isnt theirs in any case and they are basically using my money without my authorization.

    RatingNot Rated

    Thanks for the review, I am still weighing my options but your website has helped us move in the direction of finalizing a system to use for our new site.


    RatingNot Rated
    Tai Dang

    I am not happy with the service that provided by Merchant Warehouse. I tried to setup another account for a another business and I had to wait to talk to the “SALE REP” and there is no other can help me to setup an account. I escalated it to another supervisor [edited: name removed] and she gave me a lesson on how they run their business. Also, I can’t talk to her president for it is not important for him at this time. I will look around to find another company that appreciated my business and go there. It is a poor service and too rigid in their process.

    RatingNot Rated
    Janelle Martignetti

    Dear Mr. Dang

    On behalf of Merchant Warehouse I apologize for the misunderstanding. Merchant Service providers including ourselves require new paperwork to be submitted for a new location due to issuing bank regulations.

    While we do have certain company procedures, it appears you were using a POS system that would necessitate a setup by a certain “sales team” who specializes in this integration.

    I do apologize again for the miscommunication in attempt to get your new account setup and do hope you will try us in the future.

    RatingNot Rated
    Downhill Mike

    They kept telling me they were educating me. I just want my money from the signed credit card slip that states the customer agrees to pay the above amount. I think Merchant Warehouses is the one that needs to be schooled. I have been a customer for 9 years and was insulted by their supervisor. I too, will not give anymore of my hard earned money to this bad company. Hope you have better luck with a legitimate business that cares about their customers than I have had.

    RatingNot Rated
    Lance Lerman

    So after about a year of getting phone calls from Merchant Warehouse about starting to accept credit cards, we went ahead and got it going. Our shiny, new website was finished and we were ready to go. So now we can accept credit cards, Ok. We make high-end guitars and they are not cheap. Originally, the plan was for the website but it turned out that some of our dealers and customers were asking if we accepted credit cards. “We do!” So I would get the occasional $1700 charge on a credit card. Some from international buyers. I didn’t think much of it. The cards went through and in almost every case I actually knew the people or had the card in my hand.
    So then our Colombian dealer asked the same question and I replied that yes we could accept credit cards. We had six guitars going to him totaling 10K. A lot of money, indeed. The guitars were ready to ship and we could certainly use the money so we took the card.
    A day later I get an email saying our account with Merchant Warehouse is closed and I shouldn’t accept any more transactions.

    They could had denied the transactions and I would have accepted that and learned not to accept large charges from overseas customers.
    Nope. You’re outta here. Closed. Good bye!

    We have not had a single chargeback or any other problems prior to this.
    I am truly stunned. Perhaps they could have gotten one of those super-friendly sales guys to take 5 minutes away from the important work of signing people up and give us a call. He could have said “Don’t do that!” and we’d have understood that the transaction was too risky for both of us.

    Now I understand that they did not want to take the risk and now that I think about it, perhaps I don’t want to either. But to shut us down without so much as a call or any notice whatsoever I find unacceptable.

    RatingNot Rated
    Janelle Kahn

    Dear Mr Lerman,

    On behalf of Merchant Warehouse I apologize for the troubles you described in your recent post. Although it appears you no longer process with Merchant Warehouse I would like to speak with you further to find out more about what happened and see if there is anything I can do to make up for the less than stellar experience that you had.

    Janelle Kahn
    Relationship Manager
    Merchant Warehouse
    Direct: 877 529 0134

    RatingNot Rated
    William Fagan

    We switched to MW last summer and process about $150,000 a month with them. I have very mixed feelings about the switch. There were numerous glitches getting started including holding funds unnecessarily, canceling valid charges because they happened to be for the same amount, and a couple other issues. I had hoped these issues would smooth out as the relationship matured and they got know us.

    Instead we were hounded by them after the New Year over a ridiculous issues regarding our fed tax ID #. No one over there would proactively deal with the situation. Their security team rejected my signature because it didn’t “match” a signature done online with a mouse! And, no one over there seemed to care. I concur with the comment – after I signed on the dotted line their interest in providing customer service dropped significantly.

    This morning $10,000 has not been posted that should have. The answer I just got on the phone was – “Can you send me the batch records? That’s what we are asking clients. We don’t even see the batches here in our system.” That’s scary. And, apparently I am not the only one. The woman on the phone had answer to when I am going to see my $10,000. She said “well I don’t want to tell you the wrong thing”. Scary.

    We were with Chase Paymentech for 10 years. And, yes, they were a bit more expensive. But, I didn’t have an issue for years and years on end. I didn’t even know their customer service number, the money just flowed in like clockwork. With MW I am on the phone with an issue every couple weeks.

    Very mixed feelings about the change to this company.

    Janelle Kahn

    I had the pleasure with speaking with Mr. Fagan today. While things appeared to have gotten off to a rocky start I was able to address all of his concerns. All funds were accounted for at the time of our conversation and he now has a dedicated representative to help him should he need any further assistance with his account.

    On behalf of Merchant Warehouse, we apologize for any miscommunications and issues which were experienced and look forward to a long amicable business relationship moving forward.

    Janelle Kahn
    Relationship Manager
    Merchant Warehouse
    Direct: 877 529 0134

    RatingNot Rated
    James Foggett

    Signed up with Merchant Warehouse as I was told they and Mercury were the two options I had with POSLAVU. We had good rates with FTS Services prior to making the change.
    Read the contract and was satisfied we were offered good rates and believed after checking with BBB this would be a good solid company to process the card business through. However, when you process a card it may go through or it may not go through. Many times you do not get confirmation but the card actually goes through to their gateway. Without the confirmation servers will run the card and 2nd and 3rd time looking for confirmation. This leads to multiple charges on the same card and multiple charges to the same customer. Talk about a lack of confidence and loss of reputation to your business. Don’t know how the BBB gives them a strong rating as this is the basis of the Merchant business. If they cannot accomplish the basics of the business with customer confidence there must be money changing hands to get those kind of reviews.
    Since I purchased equipment and made a stressful change I am trying to give them a second chance, but each day this occurs my confidence & patience is erodes.

    RatingNot Rated
    Greg Mayer

    I was processing cards at a flat rate of 2.75%. After spending a good part of two days trading e mails, account statements, applications, and several different forms, I was approved. I requested the ability to accept American Express, which was a flat rate of 3.5%. No problem. The rates for non qualified rates concerned me. I was told, and I quote
    “After looking over your bank statements and learning a bit about what you do I wouldn’t worry too much about non qualified rates because those are just for some corporate cards and government cards which you probably wont see too much of. The rates for Non are +1.99% + $0.10. For rewards cards the rates are +1.79% + $0.10. Based on what I saw from your statements it looks as though the majority of your cards will be debit and personal credit cards which are 0.39%+$0.04 and 2.19% + $0.21 respectively. ”

    My first charge was a Visa Card. I was charged over 4% by Merchant Warehouse. My second was an American Express Card, I was denied because the application was never filed. I called AMEX directly and was approved. I was charged 3.5%. When I questioned the charges, I was told that AMEX made a mistake. They did not. After four e mails to my salesman and customer service, I still got the same answer. Finally I spoke to a different customer service rep, and the charges were explained. I was charged for three batches, even though I only charged two cards. My Visa rate was a non qualified rate of 4.18%, precisely what I had inquired about when I applied. Smoke and mirrors to get me on board! Wish me luck getting my $100 for Merchant Warehouse not beating my rate. I cancelled my account after a grand total of ONE charge.

    Janelle Kahn

    We were able to connect with Mr. Mayer and apologize for the experience in which he had with Merchant Warehouse. We were able to clarify all of the account issues in regards to pricing and determined the account may have been set up incorrectly. Merchant Warehouse issued Mr Mayer a check for $100 for our low cost price guarantee as a result. The merchant was completely satisfied with the resolution.

    Janelle Kahn
    Relationship Manager
    Merchant Warehouse
    Direct: 877 529 0134

    RatingNot Rated

    I contacted Merchant Warehouse for services processing my online credit card transactions and upon discussing the fees prior to signing up with sales agent I was given the following information:
    $10 per month from Merchant Warehouse and $7.95 per month fee for processing VISA,MC,Discover and AMEX with a 2.19% +$.25. I was assessed what i was told was a pass through charge of $79.99 without notification to me.
    Had I been aware of these charges it would have made no sense for me to begin service with them. When discussing fees with my sales rep I specifically asked multiple times about any additional fees outside of the fees listed above.
    I was told no on both occasions. I feel I was taken advantage of and given false information just to get me to start a account with them. It is the duty of the sale representative to accurately inform the consumer of the product they sell and in this case the product/service was misrepresented despite direct inquiry regarding the fees. When speaking with customer support the simply stated I signed a contract and I have to pay it. The contract is so full of legal speak that even after looking back at it I am un aware of how they came up with a $79.99 fee.
    I am in the process of canceling my account with them.

    RatingNot Rated

    How does a compnay with such bad reviews have such a high rating???

    RatingNot Rated
    Merchant Maverick Admin


    Thanks for the comment. Merchant Warehouse is a very large company, so they’re naturally going to have more complaints than others. One of the biggest reasons why they have such a high score is because their merchant accounts don’t carry an early termination fee. That’s a HUGE plus for the merchant. Not many providers offer that.

    Now, with that said, the MW rating isn’t set in stone. Their review will be updated, and when it is, I’ll re-evaluate their score to see if they still deserve it.

    Take care!

    RatingNot Rated

    Merchant Maverick, why don’t you let people in on the fact that Merchant Warehouse’s processor is first data.

    I think that will assist people in making informed decisions.

    Your goal should be to assist small and large businesses find the best merchant solution.

    Merchant Maverick is becoming to show itself as a independent sales agent assistant rather than a source of reliable information that is going to determine the near future of a business.

    You’re going to make a few extra bucks in commission withholding relevant information, but someone on the other end is probably going to lose out on a few–or several thousand dollars.

    However if that’s not a concern of yours, please disregard.

    Merchant Maverick Admin

    Hi Miranda,

    Thanks for the comment. The review does state that First Data is the processor. Please see the “Payment Processor(s)” section.

    RatingNot Rated
    Kathleen Bell

    Miranda, it does state that First Data is their processor. Up at the very top before you would read any of the reviews. I’ve been reading up on the top 5 and all of them have the “Payment Processor” Section before any of the reviews.

    RatingNot Rated
    Bryan Schuler

    Very unhappy with this processor!!!! This was my first month using them, came from Intuit’s Services. When The Client Srvcs Rep sold me the contract they promised 24-36 hour funding. After processing a few batches, they were funded 72 hours later. 2nd and 3rd batches were processed on 1/2/12 and 1/3/12, and it is now 1/11/12, yet to be funded. Called Srvc Rep, and he said there is nothing he can do it’s underwriting that put a 2-4 day fund on the account. Called Customer Relations, they said to deal with my Srvc Rep. The Srvc Rep said its out of his hands. NO ONE wants to handle this issue!! @#$%! So I call today and they say that my funds are on hold and they can’t tell me why? They are sitting on $2500 that is MY MONEY w/o an answer why this wasn’t funded. They said they will have to get back to me later. I am very disappointed in their services. Customer service is terrible, no support on setting up processing on my store, no one knows anything and has to ask somebody else all the time. After these funds are deposited I will be cancelling my service with them.

    Kathleen Bell

    Bryan, If you don’t mind me asking…Why did you leave Intuit? I’ve been considering Intuit. I use them for my android. It’s great for craft fairs and similar events. Thanks

    RatingNot Rated
    Beverly Skinner

    Very helpful when I first contacted them. Rates are good, etc. Time to process funds and land them in my bank account was very good. Only issue is the recurring fees. Way too many! And since when has a $99.00 admin fee been acceptable? Moved my account immediately. Contacting Office of the Comptroller of Currency. This is *not* right.

    RatingNot Rated
    Josh Chamberlain

    I have been happy with this company, but out of the blue they mention a $99 fee for PCI compliance. Did anyone else have this experience? How many times do they plan on charging my company this amount? This charge was not mentioned when I signed up. Is there any way around it? It seems like a scam? Who is the best competitor of Merchant Warehouse?

    Dave Heise

    Hi Josh. I’ve been with First Data for almost 4 years now and yes, a PCI compliance fee is an annual fee but at $99 it’s a bargain! First Data charges $300/yr and it’s a mandatory fee. Add to that the high fees that FD charges and you can see why I’ve been shopping around. I’ll be contacting Merchant Warehouse soon and making the switch……

    RatingNot Rated

    I have had worst experience in my life with this company. their Client service has no clue of how many accounts they create on your name and keep charging.
    they will keep charging you until you are bankrupt. Beware of these company. stay away. I will spread my experience any one who wants to know. Please email me. They don’t even accept their mistake now they want to charge me again next month. I ma sure this will be removed from this site. but I will Flood my experience in the web, Until I get justice on this.

    RatingNot Rated
    Brian Waldman

    Dear Veettil,

    Thank you for the opportunity to work with you to make this situation better. We are grateful that you spoke with us and allowed us to credit you for the period of time during which there was the miscommunication.

    We hope you now understand now that our intent was not to be underhanded or deceitful. We did provide printed statements each month following when you thought the account was closed. For our part, we agree that we need to take steps to handle customers with multiple accounts a little differently and should have asked you explicitly about the second account. We also need to re-examine how much autonomy we give our customer support personnel when handling situations like this. We need to make it easier for them to resolve issues and will do so. It never should have gotten to the point where you felt you needed to voice your dissatisfaction in a public forum such as this.

    We will use this incident as a learning experience and will continue to get better and better. Thank you again for allowing us to work it out amicably with you.

    Brian Waldman
    VP Marketing & Strategy :: Merchant Warehouse

    For those reading this review, I think it is important to add some context to this incident since the review was so overwhelmingly negative. As stated above, this customer had two merchant accounts with us. They called to cancel one and gave us that account number. It is my understanding that they did not mention the other account explicitly or give that account number. Unfortunately, it is a shortcoming of our system that we don’t have a clear notation within each account telling us that it is associated with a merchant who has multiple accounts. As a result we did not know to ask about the second account. We need to add this ability but this is the first such instance of this type we know of.

    After that point, and for the next several months, the merchant was charged the regular monthly fees associated with their account. They were sent statements via mail and had money withdrawn from their account. It was not until approximately 5 months later that we were called by the merchant to close the second account. By that time the fees they were charged had added up to an amount our customer support reps were not empowered to credit. Suffice it to say that we should have handled this better from both a technology and empowerment perspective. This situation should never have gotten to this point and that is up to us to prevent going forward.

    RatingNot Rated

    I’ve signed up with this company and canceled my membership in 10 days because I found bad reviews about it. They told me that it is free to cancel, but they’ve charged me for two months service fee and refused to reimburse.. This is a scam. Stay away from this company.

    RatingNot Rated
    Brian Waldman


    I am very sorry that you canceled your account before you had the opportunity to get to know us better. People say things online, as on this forum, which may fairly represent a poor experience, and that can be a little scary. On the other hand, those comments are often not reflective of the experiences of the 99.9% of customers who are completely happy. These informal reviews can also sometimes unfairly cast a company in a negative light or make more of an isolated incident than might be warranted. That is the nature of the Internet.

    Merchant Warehouse retains an A+ rating with the BBB and has received multiple industry and independent awards for our ethics, service and innovation. We have helped over 100,000 businesses to process credit cards and our customers are overwhelmingly happy with the quality of products and services we deliver. Yes we make mistakes and, at times, have unhappy customers but we are in no way a scam and always do our best to respond to and resolve any complaints in a fair and transparent way.

    As for your specific concern, it seems there is confusion in your interpretation of the fees you were charged as they had nothing to do with your canceling your account. They were the regular monthly fees you agreed to in your contract with us. Many companies specifically charge cancelation fees or lock customers into a long term agreement. We do not do so and that fact allowed you to leave us with no additional cost beyond the fees for the service itself.

    Having said that, I do see that you signed up right at the end of a month and did not process any transactions during that time. Because of that we have issued a refund for the first month and probably should have when you first raised the issue. We apologize for that frustration. We will explore our policies in this area moving forward.

    Thank you for giving us the chance to try and explain our position and also for raising the issue.

    Brian Waldman
    VP Marketing & Strategy :: Merchant Warehouse

    RatingNot Rated
    Meredith Garstin

    We signed up with Merchant Warehouse and they called me today stating that our custom packaging department was associated with medical marijuana and just called to tell us that they are dropping us because of association with medical marijuana. They should have made this decision before taking my money. I am appalled, we do not sell drugs or deal drugs, we’re graphic designers making boxes.

    I am so disappointed in Merchant Warehouse, and I am considering taking legal action after all the money I’ve spent on them.

    ZERO STARS. (sadly I have to give 1)


    Thanks much for providing this forum. I am just about ready to set up a merchant account of some sort. I was informed about MW thru Vistaprint offering a “coupon” – which Vistaprint never sent (by the way, they are a real “switcharoo”, no customer service company- avoid their online lack of services!)Talked to MW rep, Tim who was good about answering questions. I asked to have a contract emailed so I could review, that was 3 days ago (even with an voicemail reminder I left him yesterday). So far no contract. If this is how they communciate to earn your business, I can believe the problems listed on this site with after sale communication and resolution. I’m still waiting, but am exploring other venues. Any suggestions out there??? -

    RatingNot Rated

    Merchant Warehouse. I don’t understand the rave reviews of this company. We have had nothing but trouble since we signed on. Customer service went out the window once we signed on the dotted line. Our terminal wasn’t properly programmed that we purchased from them and we had to spend valuable retail time during business hours to get it straight. Their billing is definetely on the shady side and I have to go over each statment with a fine tooth comb. That is, once I finally get the statment. We don’t usually receive it until about the 3rd week of the month, generally a week to 10 days after they have taken out their processing fee. The only good thing I can say about this company is that there is no contract, so no cancellation fee when I cancel.


    Does anyone know what the Qualified Rate, Mid Qualified, Non Quailfied rates are for this company. As well as the Authorization and Per Item fee is? What the monthly statement fee is? Do they charge a PCI compliance fee? As well as any other fees they may have? Thanks.

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    adam z

    I signed up in March 2010. They sucked me in with a 2.09% rate… all of my transactions are actually at 4%. my rep was [name removed]. Many things he said are not true. They overcharged me $40 for setup. I am looking for a new processor

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    Brian Waldman

    The great news is that this merchant has decided to stay with us and is currently a valued customer. The bad news is that we made a few mistakes setting up his account which caused this frustration.

    The first was the overcharge for the set-up. This was a simple mistake as there are two different ways to set-up these accounts (higher start-up cost and lower monthly cost or vice versa). As soon as we realized the mistake we proactively reimbursed the merchant and changed his billing to reflect the correct amount going forward.

    The second was in the set-up of the account itself. This merchant, similar to the other reply posted to this website, ended up taking a highly unusual amount of rewards and business credit cards which have a higher cost. Again, once we realized this we reworked the account to lower the costs of taking those specific cards.

    These sorts of mistakes, while clearly frustrating, are relatively easy to fix and I believe our staff did a good job working to make things right with the merchant and to ensure that he was properly set to move forward in the most cost effective way possible.

    Brian Waldman
    VP Marketing & Strategy :: Merchant Warehouse

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    Lesley Fleming

    I signed up in February 2010 under a promotional offer of first month free processing and a 2.19 processing rate. Every single thing the sales person promised me was NOT TRUE. My rep was [name removed]. They billed me double at at 4.18% rate despite my specific inquiry about credit cards that I would not be penalized because of a MC or Visa that offers points and which I have no way of knowing. I have never received my refund and no one has responded to my complaints after 3 weeks. This is the SLEAZIEST company. I am going back to my nice bank which they much maligned in order to get me to switch but at least I know what I’m getting and there are no sneaky switharoos.

    Brian Waldman

    This is an unfortunate situation as we had the merchant’s best interest in mind but clearly didn’t do a good enough job communicating how the special promotion works or how different cards get charged different rates.

    We have a special offer through one of our partners which offers a free month processing. We had a hard decision to make… do we give the first month free or the first FULL month? We decided to make it the first FULL month so merchants can maximize their potential savings, especially if they signed up later in the month as this merchant did. In this case we clearly did not set proper expectations that the first FULL month would be free but, objectively, I think everyone would understand our intent was to maximize savings, not to deceive.

    In regards to the downgrades, again, I fear this is a failing in communications on our part. All credit and debit cards have different bases costs to process based in VISA and Mastercard’s Interchange categories. We have no say in these rates and mostly simply pass them on. In this case we had no idea the merchant was going to be accepting a majority of her transactions on the most expensive cards, B2B. We most certainly could have done a better job explaining what “downgrades” are and why they cost more. That would have gone a long way to avoiding this issue but it wouldn’t have changed the fact that these cards are significantly more expensive to process.

    At this point I do feel obliged to point out that these fees are all clearly outlined on the paperwork application we send to all merchants. They need to sign and approve the fees before we can submit their application. I realize it isn’t a good defense to simply say, ‘well, you signed the paperwork’ but it absolutely isn’t the case that we hid anything or tried to do a switcharoo.

    When we learned the merchant was upset we did attempt to explain these unfortunate miscommunications and did both offer to lower her rates for business cards and provided a very generous refund, including the first month free service. We sincerely apologized and, hopefully, the merchant at least understands that we weren’t trying to be deceptive in any way.

    Brian Waldman
    VP Marketing & Strategy :: Merchant Warehouse

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    Lesley Fleming

    Thx Brian, but I am not an idiot. I asked all of these questions very specifically UP Front and was told otherwise by your rep [name removed]. I purposely signed up on the month when the bulk of my transactions were to be processed as I wholesale and do most of my business twice a year. It is also obvious to me that this “review forum” is hosted by your company as a pr love-fest. I have had several of your “happy” customers contact me telling me they had similar experiences since then. Alas, after I cancelled my service and started writing reviews I suddenly started getting all the customer service I didn’t get before.

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    Merchant Maverick Admin

    Hi Lesley,

    When I asked you to respond, I wasn’t expecting a response like this. Lol! :)

    Just a couple things I wanted to address:

    1. Please don’t use a sales rep’s name directly. I know it’s good for us to know who you dealt with, so we can be aware, but without any type of restriction, this site will end up becoming a personal flame war thread, and I don’t want that.

    2. In response to your comment…

    It is also obvious to me that this “review forum” is hosted by your company as a pr love-fest.

    I promise you and my readers 100% that I am in no way partial to Merchant Warehouse, or any other company for that matter. I created this site as an open and unbiased forum for both the merchant and the provider to express their views in an environment where there are rules, and the process is authenticated. Make no mistake, I don’t play favorites with anyone.

    Just because I allow the provider to submit a rebuttal does not mean that I’m on their side. I’m on neither side, but I do think it’s only fair that both of you get to say your piece. Merchant Maverick is just a platform.

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    justin brain

    Great company, We’ve been with them since October 2009. We’re in a high risk business where alot of companies will come and go. Merchant Warehouse has been very patient with us in dealing with any chargebacks we have from customers. They have great customer service and we’ve never had one outage or issue with their online payment gateway. We’ve recommended other people to them as well. CHOOSE MERCHANT WAREHOUSE WHEN LOOKING FOR A PROCESSOR
    thanks again
    All Day Auto Transport

    Marcus House

    I just wanted to say that while I am currently in shopping around mode and have been hesitant with signing up with Merchant Warehouse becuase of their 4.5 star rating, I find it impressively interesting the Merchant Warehouse makes the time to respond to concerns expressed in this fourm. Will see…


    Because they’re .5 from a perfect score? Really? LOL

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    James Lee

    Our industry (adult novelties) is considered by the banks and processing companies – to be “High Risk” (although our return rate and cb rate is exceedingly lower than most “low risk” retail sites).

    I contacted Merchant Warehouse in hopes they would be able to provide decent rate, and it appears they have. We were approved yesterday (< 48 hours), and are just waiting to get our settings for our gateway changed over. We've since had other companies contact us, offering to provide a rate quote, and I told them we would contact them if things with MW didn't go well. One such company said "I will send you some information. Merchant Warehouse approved you as a low risk company, and in a couple months, they will drop you. I'll be hearing from you in two to three months."

    We'll see what happens. I would certainly hope this is not the case, but I guess you never know. I will post back in a few months to update everyone on how it's going.

    Merchant Maverick Admin


    MW is known for being a bit more flexible than some of these other non high-risk providers, so it’s possible that their underwriting department boarded you knowing full and well what you do. Of course, we won’t know for sure until you start processing. You can always contact their risk department to double check too. Although you might be hesitant in informing them that you’re getting traditional rates in fear that they may re-evaluate you, it’s much better to be certain then to face an account hold/closure once you’ve started processing.

    Definitely let us know, because if MW is ok with your industry, then that’d be good news for other businesses that do the same thing you do.

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    Eric Peterson

    This site must be funded and/or run by MW. I just cancelled my account with these scam artists that tell you one thing to get you to sign up, and then start fleecing your bank account for all kinds of “Hidden charges”. $32 a month if you use them or not does not coincide with the $7.99 statement fee the salesmen told me was all I would have to pay over the transaction fees. Then today I find out they debited my account for $132.95 for an Annual fee they NEVER mentioned at sign up. Steer far away from these crooks!

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    Amad Ebrahimi


    I’m sorry to hear about your experience with Merchant Warehouse. Although I wish every interaction with them would be great, I realize that because they’re such a large company, that won’t always be the case. Just to clarify, we are not funded by Merchant Warehouse in the sense that our rating of them is not influenced by any direct monetary contribution. We do however, get referral compensation whenever we send business their way. However, we have referral based relationships with several of the processors that we’ve reviewed, so there is no exclusivity involved. Please refer to our page “How This Site Makes Money” for more info.


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    James Lee

    Well, it’s been a few months.. (4 actually), and I am really quite amazed. The customer service has been absolutely outstanding, with regular follow-ups from our rep just to make sure everything is going well. I’m sure it helps that we haven’t had a single return or chargeback with them (knock on wood), but I am pretty sure that even then, they would be just as accommodating, unbiased, and helpful as they are now. What’s even better, is our rates!

    Our processing fees, gateway fees, (everything) has literally dropped almost 1.2%. Almost 4% of our revenue used to be gobbled up by Total Merchant Services, now we’re under 3% with Merchant Warehouse.

    I wish I could give props personally to our rep, but I see the names are removed in this forum, but nonetheless, if he finds this, he knows who he is – great work, tell your boss you deserve a raise!


    I Just signed with them. One of their reps [name removed] was really helpful over the phone and through email. I looked at lots of processors before hand; cdg merchant plus pay simple and others. I found merchant warehouse to have some of the lowest rates and fees. Your site was helpful in helping me narrow downthe field, thanks.

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    The Merchant Maverick


    Glad to be of service. Please do come back here once you feel like you can give a decent review of their services. I know it’s tough to judge an ISO without letting the entire relationship take its course, but even a little bit of info will help out a ton.

    Take care, and best of luck to you with Merchant Warehouse.

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    I ran into the same problem. I sent them an e-mail and they told me to call their 1-800 number. I sat on hold for 27 minutes before someone came on the line. They transferred me to the Cancellation Dept. where I was immediately transferred to voice mail. I got a call back two hours later saying I needed to cancel online. The link they sent me said there was an error and I needed to try again later. I went to my bank and paid for a stop payment and a dispute for the charges they were deducting for a merchant portal that I can’t access. They sent me another cancellation e-mail with the same error so I had to call again. They then sent me a PDF copy to scan and e-mail back. The e-mail said to send it to the e-mail address on the form. There was no e-mail address on the form so I had to call again. This company is a joke!

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    Diane Offutt

    Merchant Warehouse contacted me a few days after the problem of charging my account. They promptly refunded the fee back to my checking account, along with apologizing for the error. I have stayed with them and have had excellent service.

    I thought my original bad review was removed from this site, but obviously it has not been removed. Since it has NOT been removed I have no choice but to leave a reply stating the company, Merchant Warehouse, now named CAYAN, is a reputable company and their customer service is great. Sorry for all the confusion.

    Diane Offutt
    Woodstock, GA 30189

    Tom DeSimone

    Hi Diane,

    Old comments removed. Thanks for the update!


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