PayJunction Review

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Date Established
2000
Location
Santa Barbara, CA

Overview:

As a consumer, I often find myself signing receipts. And every time I do, I also find myself thinking, “It’s 2015, why am I still signing paper receipts?” No one with any sense doubts that paperless is the way of the future for all things (as much as I love paper books). Paper is wasteful, it degrades, it’s a pain to store/organize/retrieve, and – in the case of receipt paper – it’s potentially toxic. Receipt paper is coated in BPA, which is widely considered to be less than healthy for people and the environment alike. So I was intrigued to see PayJunction‘s tagline: Paperless Payments.

This is not just a gimmick. By offering a unique suite of products and services, PayJunction allows merchants to better organize their sales data, eliminate paper-based inefficiencies, reduce risk, broaden customer payment options, and eliminate the need for a traditional credit card terminal. All of this amounts to savings in time and money, as well as a potential to increase profit and streamline business practices. Add on to that their excellent customer service and competitive rate matching, and we’ve got ourselves the makings of a really solid provider.

The suite of services hinges on the PayJunction payment gateway, which also serves as a basic POS for both card present and card-not-present interactions, including credit, debit, and checking (ACH) payments (kudos for the ACH!). USB card reader and e-signature pad compatibility mean that you won’t need a traditional credit card reader at all. All of your transactions are logged in the computer system, so no more bundles of receipts will plague your files. This makes accounting a much easier and more efficient task. This software also allows customers to sign for emailed orders, adding an additional level of security and chargeback protection. Mobile processing is handled through a separate app, and a basic hosted shopping cart is provided at no added cost.

Without great customer service, even the most honest and fair providers can fall flat. So I was thrilled to hear from many of PayJunction’s current clients, all noting that customer service and support were exceptional and reliable. You’ll find their self-service support more than sufficient for many generic considerations, and their dedicated account reps seem both responsive and knowledgeable.

For new businesses without a processing history, you may be stuck paying the 0.75% + $0.00 markup, which is a little bit on the high side of things, especially for larger tickets. And if you are processing under $10K per month, you will have to pay a $35 monthly fee as well. If you have a low volume, PayJunction might be more than you need. If you plan to do over $10K per month but don’t have an established processing history, you can sign on and then request a rate review after a few months, when you’ve proven your volume.

No one knows better than I do how difficult it is to keep a clean internet reputation as a credit card processor. PayJunction has been at it since 2000, and yet you’ll be hard-pressed to find any substantial complaints against them. I’m impressed by their unique service and high-quality customer support, as well as their honest marketing. It’s rare for us to give a company five stars in an initial review, but I see no reason to give PayJunction any less. Definitely check them out!

Products & Services:

  • Credit, debit, and check payment processing: All can be processed in-store or remotely using the PayJunction system.
  • Payment gateway: PayJunction’s proprietary gateway (once branded as Trinity Gateway) includes access to an all-purpose virtual terminal (compatible with a USB card reader making functional POS), as well as recurring billing and customer info vault features. This amounts to a solid browser-based credit card and check processing system for both card-present and card-not-present sales, with no credit card machine or paper filing required.
  • Electronic and email signature capture: This, along with PJ’s gateway, make up the essential elements of their “Paperless Processing” system, which requires minimal hardware and setup expense. By collecting signatures on an electronic signature pad in-store, you eliminate the need to saves signed receipt copies. All signature data is stored within PJ’s reporting system for easy access. Email signature collection (customers sign with their cursor) adds security to card-not-present transactions or agreements.
  • Hardware: PayJunction offers future-proof, everything-ready hardware that accommodates EMV and NFC transactions. Free equipment may be available if you can provide two months of existing billing statements to prove your processing volume.
  • Mobile processing: This is provided via the free iPay POS app for tablets and smartphones. Simply select the PayJunction gateway from the in-app menu, and voila. You’re ready to go.
  • Call-in processing: No smartphone? No problem. You can call a transaction in through an automated system for low-tech mobile transactions.
  • Free hosted shopping cart: The free cart offered by PayJunction is nothing too fancy, but it’s simple to set up and will get the job done for many businesses. You can also integrate with other third-party shopping carts.
  • Developer-friendly: PayJunction provides a “full-stack” API that delivers both versatility and ease of use.
  • Next day deposits: Available for qualifying business types.

Fees & Rates:

I love that PayJunction uses interchange-plus with absolutely no other fees (aside from network fees, of course). This means you have no monthly fee, PCI fees, monthly minimums, gateway fees, etc. But be aware that if you process under $10K monthly, a $35 monthly fee applies.

My one complaint is that their baseline percentage markup is a little high at0.75%. Yes, you save some money by not paying a monthly fee, but that’s only saving you maybe $30 per month. But the other thing to consider is that no per transaction fee markup applies, which could contribute to substantial savings, especially for small-ticket sellers. This rate will only apply to businesses without a processing history.

We have to recognize that if you have a processing history, PayJunction will match or beat your current rates. So you don’t have to worry about paying more when you switch. I liked seeing this advertised. While basically any processor will be willing to match your current rates to win your business, PJ seems to be more honest/fair about their comparisons than the average provider.

The advertised rate and fee information includes:

  • Cards: Interchange + 0.75%, no per-transaction markup
  • Checks: 0.75%, no per-transaction markup
  • Monthly: No additional charge, or $35 for businesses doing under $10K monthly
  • Annual: No additional charge
  • PCI: No additional charge
  • Gateway: No additional charge

A Little Math on PayJunction:

Before we dismiss the 0.75% markup as expensive, let’s consider the following.

A solid markup for a business doing $12K per month in card-not-present sales might be 0.30% + $0.15, with a monthly fee of $20 (no PCI, no gateway fee). If that business had an average ticket of $50, they would pay the following with a good provider:

  • $36 in markup percentage
  • $36 in per transaction markup
  • $20 in monthly fees

This is $92 total markup, over interchange. This is a good value!

With PayJunction, the same account would cost:

  • $84 in markup cost

That’s it! Slightly less than the other provider. The thing is that the larger your average ticket is and the more you process per month, the more this will rise above the comparison point. Still, it really is a solid deal, even if you don’t have a processing history.

Contract Length & Early Termination Fee:

Your contract with PayJunction is completely month-to-month, no cancellation or early termination fees to worry about whatsoever.

Sales & Advertising Transparency:

I was impressed by PayJunction’s marketing efforts. They go above and beyond what I consider the acceptable average. The information on PJ’s site correctly describes interchange and interchange-plus pricing, which is their primary pricing model. Likewise, they seem to make good on the price matching system, whereby merchants with a processing history can submit two months of processing statements in order to secure a rate equal to or better than what they currently pay.

While some merchants may be wary of handing over processing statements, this serves an important purpose. First, it proves to PayJunction that you are actually processing the volume you say you are. With this added confidence, they are able to guarantee you the lowest rates possible instead of giving you a more conservative estimate. It also allows them to see where you may have been overcharged so that they can explain to you the rationale behind the pricing quote they provide.

Customer Service & Technical Support:

In short, PayJunction provides absolutely outstanding customer service by all accounts. It’s very rare to see a company that has not only virtually no complaints about customer service, but also a fair amount of public praise. PayJunction’s account representative don’t just set up your account, they are available to help you throughout. I love to see this sort of thing. They bring the local experience to remote accounts.

You’ll find a moderate amount of self-service support features including a good-sized knowledgebase and some useful tutorial videos. So if you just want to figure something out yourself instead of getting on the phone, you can do so without any trouble. Standard email-based ticket support is offered, as well as remote support. With remote support, you give a service representative remote access to your computer so that they can either walk you through something, or take care of an issue for you. This is a really nice touch!

In rare instances of public complaints, PayJunction representatives act swiftly and thoroughly to make things right or provide a thoughtful explanation. They go way above and beyond what I’m used to seeing.

Negative Reviews & Complaints:

The number of negative reviews and complaints against PayJunction is nearly non-existent. They have zero complaints at the BBB in the last three years. That’s an amazingly good track record for a business of this age and size. This tells me that PayJunction handles nearly every single complaint in-house swiftly and thoroughly. Of the very small number of complaints you’ll find online, every single one is addressed in-depth by a PJ representative. There are absolutely no complaints on Ripoff ReportsComplaints Board, or any other popular consumer protection sites.

My one “complaint” might be that it is somewhat expensive for low-volume businesses. This isn’t really a complaint, though. PayJunction provides a unique system and really exceptional support, far beyond what a low-volume business is likely to need. Plus we have to remember that, if you are already processing payments, PayJunction is willing to match your current rates and fees.

Positive Reviews & Testimonials:

You’ll find a dozen testimonial videos on PayJunction’s customer profiles page. All seem completely genuine, and give high praise. These customers seem especially satisfied with:

  • Ease of reporting: PayJunction’s selling point is their “paperless” processing system. Merchants used to saving signed receipt copies and having no digital record of sales are thrilled to have all information saved electronically, providing easy access and digital reports.
  • The sales experience: Many of the business owners interviewed cited the attitude of the sales reps as a positive. Most merchants have heard every credit card processing sales pitch in the book by the end of their first year in business, so it means a lot that multiple business owners felt the PayJunction sales experience was straight forward and honest.
  • Customer service: A substantial number of users, not just in the official videos but across the web, give high praise to PayJunction’s customer service. Dedicated representatives know your business and provide intensive help when needed.

Final Verdict:

PayJunction promises paperless payments, and delivers just that. For businesses looking to increase efficiency and get organized, PayJunction is a great option. Savings come not only from competitive rates, but also reduced risk, broadened customer payment options, and the elimination of the need for a traditional credit card terminal. Your time, the time of your staff, and the time of your customers is very valuable. PayJunction helps you to streamline your processes to keep everyone happy and on their way.

For low-volume businesses and new businesses without a processing history, there are cheaper options out there for you. But regardless of your business, PayJunction provides tangible benefits beyond what you’ll find at cookie-cutter merchant account providers.  I’ll leave it to you to weigh the benefit against any potential expense. For businesses with a processing history, PayJunction will match or beat your current rates.

With benefits like integrated ACH processing, free hosted shopping cart, free equipment (card reader and signature pad), integrated reporting, and a versatile gateway, not to mention exceptional customer support, there are plenty of reasons to choose PayJunction. I’d absolutely recommend that you check them out. Let us know how it goes!

Tom DeSimone
Tom loves asking tough questions and getting straight answers, so he has a lot of fun calling payment processors for Merchant Maverick to cut through their smoke and mirrors and find the real deals. He has run a full-time editorial business from his home in New York’s Hudson Valley since 2010 and could not imagine a better job. When not busy writing and keeping credit card processors honest, Tom enjoys backpacking in the mountains.
Tom DeSimone
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7 Comments

    Karen DiJulio

    I rated Payjunction in conjunction with Card Payment Solutions, who does their billing for my company. It is probably CPS who is the rip-off but Payjunction is their partner. I rate CPS a no star. Payjunction is mostly guilty by association.

    This comment refers to an earlier version of this review and may be outdated.

    Karen DiJulio

    I don't care how well things run, that is a given. But getting hit with high extra fees for corporate and other unknown special cards which bites the profit out of your sale, with no explanations. When they charge you an extra yearly fee for $179.00 with no real explanation and claiming it is coverage for the year before! Saying it is in your contract when you aren't on contract. When each person you talk to has different odd explanations for the charge. Other than you can't get it back. They claim some of it is for PCI compliancy, after you pass all their frustrating tests with big fines if you don't get it done in time, some is for the cost for them to report all your earnings to the government and most is for high coverage which they are most proud of which is meaningless to me. Just a rip-off fee. When I finally get them to print me off what that charge is for, it is going straight to the Attorney General's office in CO and CA.

    1

    This comment refers to an earlier version of this review and may be outdated.

    victor cheng

    I definitely give them a perfect score. Great technology. Interface is smooth and easy to use. Wonderful customer service that is knowledgeable and quick to respond to all your questions. The smart terminal is very convenient. It had saved me so much time. My only complain would be that they don't work with my POS so I have to entry the amount each time. Otherwise they offer a superior credit card processing service, better technology, excellent customer service at a super competitive price.

    5

    This comment refers to an earlier version of this review and may be outdated.

    Ron Mccormick

    While they didn't meet my needs due to our business model, I can't say enough about their level of professionalism and honesty during our conversation. Heck, they even recommended that I go with another provider when I told them what I was offered. Worth a good look for sure I think.

    5

    This comment refers to an earlier version of this review and may be outdated.

    Stan

    Are they EMV compatible?

    This comment refers to an earlier version of this review and may be outdated.

    Amad Ebrahimi

    Stan,

    EMV enabled hardware and software will be released by Payjunction this summer.

    Best,
    Amad

    This comment refers to an earlier version of this review and may be outdated.

    Alex Cepeda

    Payjunction is 100% EMV complaint, offering a new 4 in 1 Smart Terminal that provides many payments options, including ACH checks, Swipe or Chip Card functions, NFC-ready phones, and even the Apple Watch. This new EMV-ready terminal reduces the liability potential of fraudulent transactions and is up to date on all payment-processing requirements.

    This comment refers to an earlier version of this review and may be outdated.

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