Merchant Account Reviews

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  • Charge Card Systems Inc. Review

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    Overview: Charge Card Systems (CCS) understands what it means to do business in the digital age. They aren’t afraid of social media like most other ISO/MSPs. Instead they’ve embraced it as part of doing business online. That’s why they have a Twitter account, Facebook page, Yelp profile and a blog, where you as the customer […]

  • Nationwide Payment Solutions Review

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    Overview: Nationwide Payment Solutions (NPS) is based out of Scarborough, Maine and has been in business since 2002. Everything looks pretty good with them. They have a nice “A+’ rating at the BBB, with no complaints that I was able find. They also offer both interchange-plus pricing and seasonal downtime to their merchants. They are […]

  • Unibul Merchant Services Review

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      Overview: You can tell that Unibul Merchant Services is part of the new-age group of ISO/MSPs. They have a Facebook page, a Twitter account and a few blogs that they update regularly. They also have quite a few educational resources for you to sift through. Unibul might be a little new to the game, […]

  • ABC Global Systems Review

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    Overview: According to their “About Us” page, ABC Global Systems (ABC) has been doing business since 1990, so they obviously have plenty of experience in the space. I couldn’t find any reason why you shouldn’t work with them, but they are missing quite a few things that could drastically help their rating. For starters, I […]

  • Card Payment Solutions (IN) Review

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    Overview: When doing my research on Card Payment Solutions (CPS), I found some conflicting information. On the one hand, it looked like CPS is a great company, but once I started doing a search for complaints, I found quite a few (see below). But, as I kept digging, I noticed something that I haven’t encountered […]

  • Veritrans Merchant Services Review

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    Overview: I have to say that I’m pretty impressed with Veritrans Merchant Services. For a company that’s been around since 2001, they have a great reputation…at least from what I could dig up. There are some nice testimonials listed on their website with fully disclosed names and company information. I wasn’t able to find a […]

  • ProPoint Card Services Review

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    Overview: ProPoint Card Services looks like a nice small ISO/MSP out of Fall River, Massachusetts. They’ve only been around for a few years, so I think I’ll let them age a bit before I give them a better rating. They have a great BBB score without any complaints, nor any negative reviews…from what I could […]

  • Heartland Payment Systems Review

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    Overview: In the payments space, it’s pretty common to encounter tradeoffs. Rarely do we at Merchant Maverick encounter a company that is the whole package — pricing, service, transparency, etc. So when we encounter them, we absolutely feel the need to tell the world. Heartland Payment Systems is not absolutely perfect as far as processing, […]

  • Global Payments Review

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    Overview: Big payment processing companies tend to get a bad rap. Usually this has little to do with the actual processor and more to do with the independent sales office or specific sales agent marketing the service through a third party. It also has to do with sheer volume. Since a big processor will serve […]

  • First Data Review

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    Overview: First Data (FD) is the 800 lb. gorilla of the credit card processing industry. They were established in 1969, and according to their stats, they serve over six million merchant locations worldwide. That is a HUGE merchant base, about six times bigger than the already-enormous Chase Paymentech. First Data has many offices across the […]

What is a Merchant Account?

If you want to accept card payments from your customers – and virtually every business needs to these days to remain competitive – you need access to a merchant account. “Merchant” is another word for a seller or business owner. You can think of a merchant account as a bank account that extends you, the merchant, a line of credit. This allows a merchant to receive funding for the credit transaction based on the trust that they will perform the services or deliver the goods properly, and thus the customer will not refuse to pay for the transaction based on the inadequacy of the merchant.

The point of a merchant account is to facilitate the complex interactions that need to occur between you, your customer, the credit card networks, and your payment processor every time you receive a card payment. It helps to ensure that you receive funding as quickly as possible, that the banks are protected from losses, and that buyers are protected from ripoffs and scams. With a merchant account, everyone is held accountable based on the rules of the credit card processing agreement.

You will, of course, have to pay a number of fees in order to take advantage of the credit card processing networks and banks. But it’s much easier and more secure to open a merchant account than it is to keep a book of credit accounts for all of your customers!

How to Avoid Merchant Account Scams and Ripoffs

Be skeptical of sales gimmicks – If it sounds too good to be true, it probably is. A lot of processors make claims about having the lowest rates in the industry, but how can they all have the lowest? Answer: they can’t. They will match the rate quote provided by another processor, but the contract could still include hidden fees to make up for it. When a processor claims that it will pay you $1000 if it can’t beat a competitor’s quote, rest assured it has no intention of paying up. There’s always a loophole.

Request interchange-plus pricing – The only way to make real, meaningful comparisons between rate quotes is to get an interchange-plus rate. This type of quote will tell you the markup that you are paying on top of the wholesale (or “interchange”) cost of the transactions. Since the wholesale cost will vary from transaction to transaction, this is the only way to get a clear picture of the profit margin for the processing company. Fixed rate tiered quotes that do not separate wholesale from markup reduce transparency and make it impossible to compare the rates effectively from one company to the next.

Avoid early termination fees – The most common merchant account fee that we see complaints about is the early termination fee (ETF). These fees can range from hundreds to thousands of dollars, and are often not disclosed or poorly disclosed during the sales and contract signing process. Don’t take your salesperson’s word for it, either. Verbal promises during the sale process are not legally binding. If it’s not in writing, it’s worthless. You need to review your contract carefully and make sure an early termination fee waiver is included if the contract mentions an early termination fee.

Don’t give in to pressure – Some merchant account sales agents will try to put pressure on you to make a quick decision, saying that an offer is only good for a certain amount of time. Never let these high-pressure sales tactics sway you. You, the business owner, have all the power. Don’t make any hasty decisions. Sales agents may also try to make you feel like you owe them something just because they have spent time on you. You don’t owe the sales agent anything! Don’t let them guilt you into making a decision that could negatively impact your business for years to come just so they can close a sale.

What Is a Payment Gateway?

A payment gateway provides the connection between an online payment and the bank that processes any given credit card transaction. Whether used for eCommerce or a mobile payment application, the payment gateway works behind the scenes to securely transfer sensitive credit card information. It’s important to recognize that a gateway is not the same thing as merchant account, and each comes with its own separate fees.

Most eCommerce businesses will need a payment gateway, but some in-person businesses might need one too. Point of sale (POS) software will sometimes require a payment gateway to operate. If you just need a virtual terminal to key-in card information at your computer, however, you might not need a dedicated gateway at all. Many payment processors include a virtual terminal for free as part of their basic service packages.

To use a payment gateway, you will have to “integrate” it with your website or software. This can be as easy as typing in a numerical key. It can also be difficult enough that you will have to hire a web developer to help out. It all depends on your gateway, your software, and your needs. Your gateway provider’s website should include detailed instructions regarding integration.

When picking a payment gateway, it’s important to make sure that it’s compatible with your POS, your shopping cart, or your payment processor. Not all gateways work with all systems. Be sure to talk to customer service before you commit to any solution to avoid fees and penalties for cancelling.