Wells Fargo Merchant Services Review

Merchant Maverick's Rating: (3.5 out of 5)

Last Updated: January 27th, 2012.

Logo:

Overview:
In addition to its regular banking wing, Wells Fargo (WF) has a credit card processing division as well. If you're reading this review, then you probably already knew that. What you might not have known is that when you sign up for a merchant account through Wells Fargo, you're also signing up for an account with First Data. First Data acts as the payment processor for Wells Fargo, and Wells Fargo acts as the acquiring bank. It all sounds pretty confusing, but if you read this article, you'll understand it a bit better.

Putting that aside, the most important thing for you to remember is that Wells Fargo and First Data go hand in hand. So chances are, you'll at some point have to deal with both companies during your lifespan as a merchant.

Moving on...

I suggest you read the Common Complaints section below. That's where you'll find the most important info about Wells Fargo. Like the fact that they charge a $500 early termination fee, or that they have a tendency to push terminal leases and enhanced billback billing. All of which add up to a not-so-great experience for you. If you plan on getting an account through WF, then I highly recommend you consult me first. At least I can walk you through the process and hopefully get you out of that $500 early termination fee.

One positive aspect to the Wells Fargo merchant account is that if you bank with them, then you can get your money deposited into your account the next day. Rather than the usual 48hrs+ that it takes for most other providers.

Wells Fargo Merchant Services gets a 3.5 out of 5.

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Date Established:
1999.

Location:
Several branches throughout the U.S.. Headquartered in San Francisco, California.

Domain Name(s):

• https://www.wellsfargo.com/biz/merchant/

Parent/Partner Company:
Wells Fargo is the Parent company.

Type:
Acquirer.

Acquiring Bank(s) (Acquirer):
Wells Fargo Bank.

Payment Processor(s):
First Data.

Payment Gateway(s):
Authorize.Net or First Data Global Gateway (formerly known as LinkPoint).

Do you need help setting up your payment gateway with your website? Click here.

Trust Symbols:
Since the credit card processing and regular banking divisions of Wells Fargo are under the same roof, the BBB profile doesn't really help us much. Here it is nonetheless. Just keep in mind that the complaints you see on that profile will be a mix of both regular banking customers, and those that have used Wells Fargo's merchant services.

Negative Reviews/Complaints:
You're going to have a tough time separating the complaints for Wells Fargo's regular business from their merchant services division, but you can do what I did. Search for "Wells Fargo Merchant Services complaints" or "Wells Fargo Merchant Services reviews." At least that way you can filter them a bit.

With that said, you can find some complaints here and here.

Common Complaints:
Here are some common problems that you may want to look out for...

• Expensive terminal lease contracts through First Data Global Leasing: Some merchants have complained about not being aware that they were signing into a 4-year terminal lease. The whole "not being aware" part can be chalked up to the merchant not fully understanding how leasing works. I personally think terminal leasing is unnecessary to begin with. If you're a small merchant, and you only need a few terminals, then why not just buy them? They don't cost much these days. Leases make sense for bigger organizations that need many terminals, and don't have the upfront capital to invest in buying them.
• Witholding of funds/termination of accounts: 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. Both First Data and Wells Fargo have been known to be a bit trigger happy when it comes to holding funds or terminating accounts. You're going to want to learn how to avoid holds and minimize chargebacks, if you plan on signing up with WF.
• Enhanced Billback: Wells Fargo and First Data are also known for using a billing technique called enhanced billback, which isn't the most transparent billing method. I plan on writing about it in the future, but in the meantime, you can learn about it here.
• High Cancellation Fee: If you want to cancel before your contract is up (3-years), then Wells Fargo will charge you a $500 cancellation fee. That's pretty steep considering there are plenty of other providers that don't charge a fee at all.
• Poor Customer Service: I really wouldn't expect much from such a large bureaucratic organization like Wells Fargo. You're usually a number, and not a name. Maybe they can prove me wrong.
• Increasing of Fees After Sign-Up: Although Wells Fargo has a right to increase fees, it's still a hard thing to swallow for any merchant. And judging by the number of complaints I've read about this matter, it seems WF likes to raise its rates frequently.

Verifiable Testimonials/References:
There aren't any testimonials on the Wells Fargo website that I could find, but when you're dealing with a company like WF, the name speaks for itself. Try to ask your sales rep for references. Specifically for businesses that operate in your same industry.

Security/Privacy:
The Wells Fargo online application is secured by Verisign.

Customer Service:
Existing customers get 24/7 service and support. The quality of that support on the other hand is questionable (see Common Complaints). Have you worked with Wells Fargo? Feel free to leave us your review. Don't forget to read the the user review and comment policy.

Contract Duration:
3-years.

Cancellation Fee:
$500.

Interchange-Plus Pricing:
Interchange-plus is offered by Wells Fargo, but good luck getting it on the first try. Most providers don't offer interchange-plus, unless they're asked for it. Even then, they may tell you that they won't be able to give it to you, or that it's "reserved for accounts that do a million or more a month, blah, blah, blah." If that happens to you, then just get an interchange-plus quote from another provider, and Wells Fargo will most likely match it...or they'll lose your business.

Seasonal Downtime:
Seasonal downtime is also offered by Wells Fargo.

Product/Service Offering:
Retail (Credit/Debit), Online/e-Commerce Payments, Mail Order/Telephone Order (MOTO), Wireless, Fraud and Risk Management, Recurring Payments, eCheck Processing, Gift & Loyalty, Point-Of-Sale (POS), Check Processing.

Product/Service Specialty:
None.

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