CDGcommerce Review

Pros

• Processing rate plans fully disclosed
• Free payment gateway and virtual terminal
• No account setup or application fees
• Month-to-month billing with no early termination fees
• Excellent customer service and support

Cons

• Only available to US-based merchants

What Is CDGcommerce?

CDGcommerce is a merchant account provider that offers features and pricing that fit well with the needs of small businesses, including true month-to-month billing with no long-term contracts for all of its merchants. CDGcommerce also offers three separate pricing plans that are designed to give you the best value based on the size of your business and your average monthly processing volume.

Flat-rate pricing is available for very small or seasonal businesses, while interchange-plus pricing is offered to medium-sized businesses. Larger enterprises can choose one of four membership pricing plans, depending on their monthly processing volume.

CDGcommerce is one of the very few providers in the industry that actually focuses on meeting the needs of small businesses, and it offers services and prices that are appropriate to all segments of the market. We recommend the company very highly, and when you learn about all it has to offer, we’re sure you’ll agree.

Products & Services

The company’s line of products and services covers all the bases, but it focuses on eCommerce and small to mid-sized businesses. CDGcommerce’s offerings include the following:

CDGcommerce Fees & Rates

Pricing Overview

CDGcommerce differs from most traditional providers in that it fully discloses its pricing on its website. Everything you need to know is available via a Pricing tab, which is prominently displayed in the top menu.

Transaction fees vary depending on your monthly plan and the type of payment you’re accepting (in-person, online, etc.). Having a qualified nonprofit status will also earn you lower transaction fees.

Note that Amex transactions are charged at a higher rate than Visa, Mastercard, and Discover transactions—you can find the Amex Transaction Surchage in the “Extra Costs” table below.

Monthly Plans

CDGcommerce offers a choice between three pricing plans, depending on your monthly processing volume.

The Simple, One Rate plan is very similar to what Square offers and is ideal for very small or seasonal businesses. It works best for small businesses processing between $1,000 and $10,000 per month. Unlike Square, however, with CDGcommerce, you’ll receive a true merchant account with a unique merchant ID number and robust customer service and support.

Most well-established businesses will be best served by the interchange-plus pricing plan, which is tailored to the needs of merchants processing between $10,000 and $200,000 per month.

For large, established businesses that want to save a substantial amount of money on processing costs and get the lowest possible processing rates, CDGcommerce now offers membership pricing plans that are very competitive with those offered by other providers. Your monthly plan fee will vary depending on your monthly processing limit (higher-tier plans have a higher processing limit).

One important caveat is that the Wholesale Membership rates quoted above only apply if you pay for your account on an annual basis, meaning you’ll have to hand over a lot of money all at once. Your rates will be higher if you choose to pay monthly. We recommend scrutinizing your cash flow carefully before selecting either of these two payment options.

Extra Costs

There are a few incidental fees that you’ll have to pay from time to time, such as chargeback fees retrieval fees , refund processing fees and batch fees. You might also pay fees for optional add-on services such as cdg360, and you will pay transaction fees on any ACH payments you receive.

We’re very impressed with how CDGcommerce has been able to eliminate so many of the nickel-and-dime fees that most providers charge. Here’s a brief rundown of the things the company doesn’t charge you for:

• No account setup fee
• No annual fee (except the terminal insurance fee)
• No gateway fees
• No monthly minimum (this is particularly valuable to very small or seasonal businesses)
• No PCI compliance fees
• No Address Verification Service (AVS) fees (saves $0.05 per transaction)
• No TIN/1099K IRS reporting fees
• No early termination fees

For a small business, this can add up to significant savings over what you would pay with a more traditional merchant account provider. Account setup fees can be $100 or more. Gateway fees usually run between $15 and $25 per month, plus there’s often an additional per-transaction charge. PCI compliance fees typically run around $99 per year but can be even higher. Although only applicable if you close your account early, early termination fees can run between $300 and $500 – or even more.

Sales & Advertising Transparency

CDGcommerce’s website discloses far more details about its pricing and contract terms than most of its competitors. At the same time, the variety of plans and features can be a bit confusing, particularly for a first-time business owner. If you’re unsure about something or have a question, don’t hesitate to contact one of the company’s sales representatives for clarification.

The company uses a full-time, in-house salaried sales staff and doesn’t rely on independent sales agents. The use of independent agents by many other providers has resulted in a massive volume of complaints from merchants. You won’t have to worry about this problem with CDGcommerce. With most of the pricing and contract terms already disclosed online, there’s simply no reason for your sales representative to lie to you.

CDGcommerce also has a social media presence, with accounts on Facebook, Vimeo, and LinkedIn.

Contract Length & Early Termination Fee

True month-to-month billing with no long-term contract and no early termination fee is the best arrangement you could ask for, and that’s exactly what CDGcommerce provides for all its merchants. In the processing industry, the typical merchant account contract runs for an initial term of two to four years, with three years being the most common length. These agreements also contain an automatic renewal clause, which will extend your contract for an additional year at a time unless you close your account within a very narrow window at the end of the term.

Most providers include these terms in their standard contracts, although some will now waive the early termination fee – but only if you negotiate aggressively to remove it.

Even then, you’re still on the hook for three years or more, and you might continue to be billed for monthly fees after you’ve stopped using your account and thought it was closed. Always thoroughly review your contract terms and merchant agreement before signing up with any provider, and follow the instructions for closing your account to the letter to avoid difficulties.

Note: Merchants on one of CDGcommerce’s subscription plans who’ve paid for a full year of processing upfront and then decided to close their account can expect to receive a prorated refund of the subscription fees for the unused months remaining in their subscription.

Customer Service & Technical Support

CDGcommerce offers 24/7 customer service via telephone, 365 days a year. Live chat is also available through the website during regular business hours. Additionally, you can contact the company via email and usually receive a response within 24 hours. Reports from merchants indicate that the quality of CDGcommerce’s customer support is very high.

The company no longer includes a knowledgebase on its website, which would be a useful feature for merchants trying to resolve minor technical issues on their own.

CDGcommerce Reviews & Complaints

CDGcommerce reviews demonstrate the company has a great reputation among merchants and across the payment processing industry. Complaints are few and far between and often arise due to issues with the back-end processor, which are out of the company’s hands.

Final Verdict

CDGcommerce is easily one of the best credit card processors for small businesses in the payments industry. If your business doesn’t need any specialized, optional features, you can have a true merchant account with pay-as-you-go pricing and no monthly account fee. Also, eCommerce merchants, who usually have to shell out extra to connect their website to a payment gateway, can enjoy a free gateway and interchange-plus pricing for a small monthly fee.

We’re also very impressed with the company’s unique way of supplying credit card terminals. Countertop terminals are provided for free (one per account, of course), and all you have to pay is a reasonable annual fee to insure and maintain them. This is the one instance where we would recommend renting your terminal rather than buying one outright. Remember, this is not a lease – you can cancel your account and return your terminal anytime. It’s a good way to avoid the risk of being stuck with an obsolete terminal in the future.

If there’s a catch in CDGcommerce’s service, it’s that it’s only available to US-based merchants. The company also sometimes doesn’t accept high-risk merchants in several specific industries. If you’re a high-risk merchant in need of a merchant account and CDGcommerce can’t accommodate your industry, check out our article on the best high-risk merchant account providers for some great recommendations.

CDGcommerce offers a combination of high-quality service and low pricing that makes it one of the best credit card processors for small businesses we’ve found. We highly recommend that you check it out.