Merchant Warehouse Review
Merchant Maverick's Rating: (4.5 out of 5)
Last Updated: October 9th, 2012.
(Use the Above Link to Help Support Our Work)
Merchant Warehouse (MW) is a merchant account provider based out of Boston, Massachusetts, and has been in business since 1998. They've worked with over 100,000 merchants, and process $7 billion in annual volume. Needless to say, they're one of the bigger players in this industry.
Rated ETA's (Electronic Transactions Association) 2009 ISO of the year, I wouldn't expect anything less than perfection from Merchant Warehouse. They barely missed the mark in my book, but nevertheless, they didn't disappoint.
Merchant Warehouse looks like it's been running a nice outfit for over a decade now. The sheer duration of MW's good customer service track record definitely earned them that ETA award.
They have a great BBB rating, mainly because they actively participate in providing rebuttal's to complaints. Matter of fact, I am yet to see another provider that has put as much effort into resolving disputes as Merchant Warehouse.
I love that they have a blog on their site which provides a platform for education, user interaction and feedback. They're one of the few merchant account providers that really spends time and resources on educating merchants about the process and the industry.
They have a great testimonials section, they offer transparent interchange-plus (aka interchange pass-through) pricing, they won't lock you into a contract, they offer low cost terminals, and they guarantee you $100 cash if they don't offer you the lowest rates. Pretty good if you ask me!
Merchant Warehouse gets a 4.5 out of 5.
Merchant Warehouse has a sister company by the name Capital Bankcard. Both companies are owned by the same entity.
Acquiring Bank(s) (Acquirer):
US Bank, HSBC Bank, National Association and Wells Fargo Bank.
Authorize.Net or First Data Global Gateway (formerly known as LinkPoint).
The two main sources of negative reviews that I could find were on RipOffReport and the BBB. You can also check the user review section below to see if there are any right here on Merchant Maverick.
A rep from Merchant Warehouse has been submitting rebuttals to the majority of those complaints, so it looks like they're staying on top of things.
It was difficult to come up with any commonalities between the complaints, but here are the ones that I think should be mentioned.
- Faulty terminals: A couple merchants complained about faulty or inoperable terminals. There's really no way to be sure who's at fault here. Sometimes terminals work, and sometimes it's the people working them that are at fault. It's a toss up.
- 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. Merchant Warehouse seems to contract out their transaction processing to First Data (FD), and since First Data is usually mentioned along with Merchant Warehouse in the complaints regarding withheld funds, it's safe to assume that First Data is the culprit here. If Merchant Warehouse 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 Merchant Warehouse. The same goes for any acquiring banks that Merchant Warehouse 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.
There are plenty of testimonials on the MW website. Feel free to check them out.
The Merchant Warehouse online application is secured by Verisign.
Have you worked with Merchant Warehouse? Feel free to leave us your review. Don't forget to read the the user review and comment policy.
No contract. Be sure you verify this in your contract.
No cancellation fee. Be sure you verify this in your contract.
Interchange-plus is offered by Merchant Warehouse, but may depend on your processing volume. Most providers don't offer interchange-plus to merchants that process less than $10k/month. You may be able to negotiate your way into it though, so don't be shy.
Seasonal downtime is also offered by Merchant Warehouse.
Retail (Credit/Debit), Online/e-Commerce Payments, Mail Order/Telephone Order (MOTO), Wireless, Cash Advance, Gift & Loyalty, Point-Of-Sale (POS), Check Processing.
Don't forget to leave your review and rating in the comment section.