Moneris Solutions Review
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- Date Established
- Toronto, ON
My first experience with Moneris Solutions was through research into Dharma Merchant Services, one of our few five-star providers. Dharma provides merchant accounts through Moneris and three other processors. As you may already know, we have all the respect in the world for Dharma Merchant Services. We thoroughly reviewed their practices and found nothing bad to say about them, which is a not-so-tiny miracle in this industry. So the first reason I like Moneris is because any friend of Dharma is a friend of mine.
A Canadian provider first and foremost, Moneris came about as a sort of super-group resulting from the Royal Bank of Canada and the Bank of Montreal combining their payment processing services into a single entity, which included Harris Bank in Chicago. Thus Moneris has some serious infrastructure and experience in the industry, and I like to see that. They have more investment capital and wider margins than a small processor, which could work in your favor.
Their Canadian website is easily one of the most thorough, polished, and generally good-looking payment processor websites we’ve seen. They have article-sized testimonials from big businesses, beautifully-designed catalogs, brochures, manuals, guides and almost every other resource you could want. Almost. Information about interchange-plus pricing is conspicuously missing, which is disappointing. While their US-based website is still chock-full of useful information, it isn’t nearly as polished and professional-looking.
It’s not all good news with Moneris (is it ever?). We have recently seen a steady stream of complaints from Merchant Maverick readers regarding early termination fees, technical issues, billing problems, and generally poor customer service. Most alarmingly, a large percentage of complaints from our readers say that Moneris is taking liquidated damages upon early termination. They also have a sizeable number of complaints on Ripoff Reports and through the BBB, all along the same lines.
I wish I could more easily differentiate between complaints from merchants in Canada and from merchants in the US. While Moneris claims that all merchants across North America get the same level of service, I don’t believe that. I think merchants in the US have a better chance of dealing with an independent sales agent further away from corporate oversight, and I think this leads to poor and/or inconsistent practices. Overall, Moneris rates 3.5 stars (although they’re probably a solid four-star processor if we’re just looking at their Canadian business). I really like a lot of things about this processor, but having liquidated damages and failing to disclose an early termination fee consistently – that’s a major screw-up in my eyes.
Check out the rest of my Moneris Solutions review for more details. If you’d rather cut to the chase, take a look at our better processors or try our merchant account finder to get matched with the best processor for your particular business needs. For nine out of ten Canadian businesses, we find that Helcim performs the best. If you hail from Canada, check them out first!
Products and Services:
Moneris truly shines in this category. They offer an enormous number of products and services ranging from merchant accounts to office supplies, which you can browse via their online store at ShopMoneris.com. If you can name a service or product related to merchant accounts, chances are Moneris can provide you with it, often in-house.
Some of the stand-out services include:
- Mobile Payment App and Swiper: With services like Square offering flat-rate processing and a free card reader (really free), most processors are trying to compete by offering their own payment apps and mobile readers, all bundled in with their POS software. Moneris offers its PAYD mobile app and card reader, and also eSelect Plus for US customers. Before you commit to any mobile processor, check out our mobile and low-volume comparison article.
- eCommerce Services: These include a virtual terminal, shopping cart integration, in-house payment gateway service, support for recurring payments, and other features.
- POS Software: Moneris has recently replaced their old Morris POS system with PAYD Pro Plus, an Android/iOS app-based system that brings POS capabilities to your smartphone or tablet. Unfortunately, it appears to be available only in Canada. US customers can use eSelect Plus, a web-based program that provides similar capabilities, but runs on a PC. Note that PAYD Pro Plus and eSelect Plus are proprietary (i.e., you can’t use them without a Moneris merchant account). They don’t make this very clear in their advertising.
- Quick Service Options: This includes Moneris’ No Signature Program and support for Apple Pay.
- Merchant Supplies: See ShopMoneris.com.
Fees and Rates:
First, the good news. I like Moneris because they’re Canadian. There, I said it. What does that matter, you ask? Well for starters a few years ago the Canadian government released an official “Code of Conduct” for the credit and debit card industry. While this code doesn’t currently have legally binding status, if the industry doesn’t kindly acquiesce to the simple guidelines of conduct the Canadian government will step in more forcefully, or so they claim. Under this code, merchants can expect:
- Clear information regarding fees and rates
- A minimum of 90 days’ notice of any new fees or fee increases
- The ability to cancel contracts without penalty should fees rise or new fees be introduced
- New tools to promote competition, and in particular, the freedom to accept credit payments from a particular network without the obligation to accept debit payments and vice versa
…among other provisions. Sounds pretty good, right? Well, Moneris states its commitment to this Code of Conduct in many places through their website, including a dedicated Code of Conduct FAQ. While I’m inclined to believe them, it’s not clear if these practices extend to their American customers. I don’t see this company as on par with the transparency and honesty you’ll find with a Canadian merchant account provider like Helcim, but it’s definitely a step in the right direction.
Moneris discloses very little information about fees or rates, although they’ve recently included some interchange rate information on their Canadian website. The US site isn’t nearly as transparent, and you’ll need to use the site’s Search function to find anything at all. Just remember that your rates will be negotiated depending on your business type, and you will want to negotiate an interchange-plus rate plan.
I’ve seen Moneris try to hit some merchants with big setup fees, up to $300. Don’t accept this. While a gateway setup fee makes sense, other account setup costs are generally junk fees.
On a brighter note, Moneris does offer seasonal downtime if you need it. You’ll be able to shut your account down for up to six months without any fees or penalties. As always, be sure to verify those terms on your application before signing.
Contract Length and Early Termination Fee:
By default, Moneris Solutions will set you up with a three-year contract that auto-renews for one year intervals thereafter. This is the industry standard, although you might be able to negotiate something better. Terminating your contract requires that you submit a written cancellation request at least 60 days prior to the end of the current contract period.
Moneris will also hit you with an early termination fee if you try to leave before your contract expires. I’ve seen a lot of merchants stating they were charged $250-$300 for early termination, while others have been charged thousands of dollars to buy out the remaining time. We call this liquidated damages, since they are cashing in on the money they predict they’ve lost by losing your business. It’s asinine, but it really does happen.
The sales agent I spoke to about this promised me that I would have no such terms in my contract, and furthermore denied that any “average” merchant with Moneris would see these kinds of terms. He told me the usual ETF comes in at $300. He did say, however, that in rare cases larger merchants might expect to see those kinds of terms, but that they would be fully disclosed.
So I’m left with a “he said, she said” situation. Personally, I believe that Moneris is including liquidated damages in a fair number of their contracts, and that at least some of those cases involve non-disclosure of these terms. For this, I have to deduct serious points from Moneris. For practical purposes, however, you can protect yourself from this by simply reading your contract and paying close attention to the termination section, usually located toward the end of the document. Always go into negotiations assuming you can’t trust your sales rep. It’s sad to say that, but it’s what you have to do to protect yourself. As friendly as they may seem, salespeople are not your friends and sometimes do not have your best interest in mind.
Sales and Advertising Transparency:
Moneris does okay in this category, but not great. They don’t disclose much about fees or pricing in their sales copy, as I mentioned in the Fees and Rates section above. They also have a reputation for failing to disclose their early termination fees, as mentioned in the Contract Length and Early Termination Fee section above. The sales agent I spoke to also didn’t do a very thorough job of explaining fees and rates to me during our pre-application consultation. On the bright side, Moneris does provide copious information about the features associated with their products and services via their Canadian website, as well as the difference between various machines and plans.
Moneris also employs numerous sales gimmicks, which is a big turn-off for me. These ploys are always designed to work in their favor, not yours. Nothing in this industry comes free, so when they say they’ll “give you” $300, know that it’s coming from somewhere – and that somewhere is probably your own pocket. This kind of thing doesn’t foster transparency. Let me walk you through a few of the central gimmicks currently advertised by Moneris.
First, they have a “90-Day Satisfaction Guarantee.” Three months seems like a sufficient amount of time to decide whether Moneris will work out, so initially I like this offer. But what does it entail? Will they provide any refunds? Well…
The promotional offer… is available from January 1, 2016 to December 31, 2016 and is available only to new merchants located in Canada that enter into Visa®, MasterCard®, Discover® and Interac® processing agreements with Moneris Solutions Corporation (“Moneris”) and that rent or buy terminal(s) from Moneris…
The 90-day satisfaction guarantee is limited to a waiver of the cancellation or deactivation fee if the merchant cancels any of the Agreements within 90 days from the date of the Agreement. All other fees, charges and terms and conditions in the Agreements apply.
Okay, so basically if you want to cancel within the first three months – that is, within 90 days of signing – you won’t have to pay a cancellation fee – as long as you also buy or lease your terminal through them. While buying your terminal is a viable option, leasing one is not. While this is a reasonable offer, I’d prefer to see an affordable cancellation fee that extends the life of the contract. They meet you halfway here, though. Or maybe a quarter of the way.
Next, they advertise that you will get a gift card worth up to $500 for signing up with their service. Awesome! Right? Well, the aforementioned terms apply to this offer as well, and…
The gift will be provided in the form of a GIFTPASS® from Giftcertificates.ca™ delivered approximately 150 days after the merchant begins processing credit and debit transactions with Moneris, provided that:
at such time the merchant continues to be an active Moneris merchant processing transactions under valid Agreements; and
the merchant has processed at least $1,000.00 in Visa, MasterCard and/or Discover credit card volume with Moneris within the first 60 days following the date that the merchant processes the first credit or debit card transaction…, provided that such first transaction is processed within the first 30 days of the Agreements. [Emphasis added]
Okay, well that’s something. If you process a minimum of $1000 worth of transaction in the two months following your first transaction and buy or rent a terminal through Moneris, you will at least get a $150 gift card five months after signing up. Getting the $500 gift card requires that you process a whopping $150,000+ in the same period. All this assumes, of course, that you remain an active user of Moneris in good standing for the entirety of those five months.
Advice to Moneris: To increase transparency, nix the gimmicks and list your fees on the web. Thank you.
Customer Service and Technical Support:
Moneris offers 24/7 customer support by phone or through their Merchant Direct Secure Message Center. You’ll also find a number of manuals, troubleshooting guides, installation instructions and so on though their Support page. Not all processors offer this kind of information at your fingertips.
They also have a strange but nice-sounding customer service practice called the Ambassador Program. One article describes it as:
A more unique and impressive customer service is what Moneris calls its Ambassador Program. All 1,000 employees of Moneris receive a card they can present to any merchant they meet who either has a complaint about Moneris or a question about its service. The employee gives the merchant a designated phone number, and, in turn, a dedicated team at Moneris’ call center exclusively handles those Ambassador Program calls. […] Responses to those initial conversations are guaranteed within 24 hours. Even if the merchant does not place a call, the dedicated team still will make contact. The result: A happy merchant who believes someone out there is listening.
While this seems a little haphazard, it’s a nice idea. I’d like to do business with a company that thinks outside of the box for customer support. I just hope that their non-Ambassador Program service can provide a good solution for the average customer as well.
Have you worked with Moneris Solutions? Feel free to leave us your review. Don’t forget to read the user review and comment policy.
Negative Reviews and Complaints:
While you’ll find more good press about Moneris Solutions than you will for an average processor, a fair number of negative reviews populate review sites as well as our Comments section. Overall, Moneris has a relatively small volume of complaints with the BBB and on Ripoff Reports considering the size of the company. Their Illinois and Toronto offices have separate BBB profiles, and both branches currently have A+ ratings, despite not being accredited by the BBB. Together they have a total of 51 BBB complaints in the past three years, and 20 complaints within the past twelve months. This represents a slight uptick from our last review update.
Ripoff Report currently shows 19 complaints dating back to 2006 and covering both the Canadian and American offices. Remember that Ripoff Report doesn’t take down complaints – ever. A handful of predominately negative reviews also came in via their Google+ page.
For a company that processes more than 3 billion credit and debit card transactions a year and serves over 350,000 merchant locations across North America, 51 BBB complaints split between two countries is actually much better than average. I was also happy to see that Moneris responded to all of their BBB complaints, usually offering refunds or trying to resolve the situation in an appropriate manner.
With this large of a complaint volume, certain trends become readily apparent. Issues that came up frequently included the following:
- Nondisclosure of early termination fees: As with most payment processors, the number one complaint you’ll see has to do with allegedly undisclosed early termination fees. You don’t have to worry about this, of course, since you will make sure to bring this up in negotiations and you will not sign the contract until their ETF clause is amended to your satisfaction – right?
- Liquidated damages: Many merchants also have complained in our Comments section and on other review sites about being charged liquidated damages as a part of their early termination fee. For some merchants, this translates into thousands of dollars owed upon closing, which Moneris automatically takes from their accounts. A number of complaints assert that these damages are equal to the three highest months of processing fees combined, with a bottom limit of $250. I find this troubling. While you can usually prevent these terms by carefully reviewing the termination section of your contract, Moneris loses points with me for having ever included this kind of clause in the first place.
- Undisclosed automatic renewal of contract: Again, this comes up with a majority of processors. It happens for two reasons. First, it happens because auto-renewal is the industry standard and 95% of processors have this as part of their standard merchant agreements. Second, it happens because many sales agents just want to get you signed up while disclosing as few potential sticking points as possible. The problem is that unsatisfied merchants are waiting patiently for the three-year contract to be up so they won’t have to pay the termination fee. They wait and wait and then when it’s time for the contract to expire they call to cancel only to find out they are stuck for another year! In case you were wondering, this makes merchants very angry. While I understand why they do the auto-renewal (it saves them time and makes them money), Moneris needs to do a much better job of informing their merchants about it.
- Poor customer service: A few merchants have complained about dealing with rude customer service reps, especially when it comes to handling more complex problems. I’d like to hear some more opinions on this, as it’s difficult to tell based on a few anonymous complaints. If you’ve dealt with their customer service reps, please let us know how you’ve been treated. Authenticated reviews will, as always, be heavily considered in future updates.
Positive Reviews and Testimonials:
Although it’s not easy to find, Moneris has a nice section called Success Stories on their Insights blog which features testimonials from some of their more-satisfied customers. Rather than the usual quick blurb that most processors provide, these are in-depth articles and videos showing how customers are using Moneris products and services in the day-to-day operation of their businesses. While any testimonial featured on a company’s website is naturally going to be very one-sided, it’s nonetheless an impressive presentation.
Their US-based website also has a Testimonials page, but it’s not nearly as convincing. It includes a small number of very cursory customer reviews, and that’s about it.
Final Verdict on Moneris Solutions:
Moneris offers an impressive lineup of products and services. However, their hefty early termination fees and occasional use of liquidated damages clauses in their contracts brings them down a notch. Their failure to disclose important contract terms – either verbally or on their websites – lowers their score even further.
Unfortunately, Moneris Solutions operates both the Canadian and American divisions of their business under one company name, so for the purposes of this review I must take all practices into consideration and assign a single overall rating. I’d love it if readers could help me out here. In your reviews, please make a note to let me know if you have your contract in Canada or in the US. This information will allow me to provide a more accurate picture of their practices in future review updates. Thank you! Until then, I can only offer 3.5 out of 5 stars. While that’s still a slightly better-than-average score, it’s not enough for me to give them a ringing endorsement, either.
In the meantime, I’d recommend comparing some of our better-rated processors, especially for US-based merchants. For Canadian merchants, I wholeheartedly recommend Helcim. For me, their site speaks for itself. Definitely check it out.