Credit Card Processor Rating Criteria
Credit Card Processor Rating Criteria
Credit card processing services are marketed under many names. A common term we use to encompass credit card processing services is Merchant Services. The term Merchant Services Provider refers to any company that provides credit and debit card processing services to merchants as well as ancillary services, such as check processing, payment gateways, and virtual terminal software.
There are two broad categories of merchant services providers: 1) Merchant Account Providers offering a full-service merchant account and unique merchant ID, and 2) Payment Services Providers (PSPs) that aggregate individual merchants into a group account (alternately known as third-party processors or simply aggregators). Our rating criteria apply to both types of providers.
Credit card processors are rated on the following six sections: Products & Services, Fees & Rates, Contract Length & Cancellation, Sales & Advertising Transparency, Customer Service & Technical Support, and User Reviews.
Each section is assigned a rating of Excellent, Good, Fair, or Poor based on the outlined criteria. The overall score out of 5 stars is then based on the following general guidelines:
| Overall Score | Section Ratings |
|---|---|
| 5.0 | Majority "Excellent" and "Good", no "Poor" |
| 4.0 - 4.5 | Majority "Good" |
| 3.0 - 3.5 | Majority "Good" and / or "Fair" |
| 2.0 - 2.5 | Majority "Fair" and / or "Poor" |
| 1.0 - 1.5 | Majority "Poor" |
For more detailed information on scoring, as well as how we make recommendations based on these scores, see our Rating And Scoring System.
The following characteristics warrant an Excellent rating:
Products & Services
- Features include: credit card terminals, POS systems/integrations, payment gateways, virtual terminals, and echeck (ACH) processing
- Advanced features (e.g., loyalty program and gift cards) are available at fair and competitive price points
- Features of specialized, niche services may differ from above but still offer strong value for the price and intended customer base
- Feature set offers good value for the price
- Hardware is sold outright — no equipment leases
Fees & Rates
- The pricing model is well-suited for the intended audience (e.g., interchange-plus or subscription-based pricing for mid/high volumes, flat-rate for low volumes and/or ticket sizes, no monthly minimum for low-volumes)
- Pricing is competitive and affordable relative to the intended customer base
- Pricing is transparent overall (note: high-risk providers may publish limited information due to the wide price ranges in the high-risk processing industry)
- Processing rates are standardized and fully-disclosed on website
- Account fees (if any) are fully-disclosed and easy to locate on the website
- Account fees (if any) provide good value relative to cost, and no “junk” fees are charged (e.g., application fees, account setup fees, PCI noncompliance fees)
Contract Length & Early Termination Fee
- Offers true month-to-month (or pay-as-you-go) billing with no long-term commitment and no penalty for closing the account
- Good account stability with few terminations reported (PSPs on par with traditional merchant accounts)
- Does not use third-party resellers, or it’s an individually vetted reseller with an established history of transparent pricing and fair contract terms
Sales & Advertising Transparency
- Maintains a professional, up-to-date website that is clear, comprehensive, and easy to navigate
- The website includes full pricing and contract term disclosures
- The website is free of misleading advertising, sales gimmicks, and marketing fluff
- Sales team is in-house
- Sales representatives use transparent and well-regulated practices
- No pattern of complaints from merchants regarding poor sales practices
Customer Service & Technical Support
- Provides multiple avenues for personalized support (e.g., phone, email/web tickets, live chat, active social media accounts)
- A live representative can be reached 24/7 via phone, live chat, or email/web ticket
- Company responds to support requests in a timely manner (e.g., emails within 24 hours, phone holds and live chats within minutes)
- Support representatives are knowledgeable, courteous, and able to resolve issues
- Support department has a reputation for good service, even if some complaints exist
- Provides a dedicated account representative to each merchant at signup who is available during business hours and is effective in resolving problems
User Reviews
- The number of complaints is reasonable in proportion to company size and user base
- Complaints are addressed publicly in a reasonable and respectful manner
- Complaints have a high rate of resolution and may include documented refunds when appropriate
- Receives mostly positive reviews/scores on trusted third-party review sites (and/or app marketplaces)
- Positive reviews include significant detail regarding reasons for the high rating
Note: Credit card processing providers with very few user reviews receive a rating of Fair until more data becomes available.
