Monday, July 30th, 2018
There are pros and cons to every merchant account provider, but some do not fare as well as the others. Find out about the top retail merchant services complaints about providers.
Though the following merchant account providers dominate the card payment services industry, their customers have lodged quite a few retail merchant services complaints against them.
Retail Merchant Services Complaints of the 5 Top Providers
Though WorldPay is one of the largest merchant account providers in the world that offers reasonable hardware rentals and support 24 hours per day, seven days a week, customers don’t like that accounts don’t get dedicated account managers, its £15 minimum service charge, and 18-month minimum equipment rental contracts.
Like WorldPay, First Data fails to provide a dedicated account manager. Though this global merchants services provider charges slightly lower monthly minimum service charge of £5, First Data’s hardware rental contracts are lengthy at 36 months. Also, these contracts can never be cancelled early. Customers either have to ride out their contracts or buy out the rest of the term, which can be extremely costly. Also, when customers have problems, they have complained about long delays in getting assistance. This could probably get better if First Data offered 24/7 support.
Based in the UK, Payzone specializes in merchant accounts for small businesses and offers transparent pricing. Also, it offers a 12-month minimum contract, which is on the shorter end for most in the industry. Though Payzone has plenty of positive reviews from customers, top complaints includes its automatic renewal of contracts and its lack of 24/7 customer support.
Payment service provider, PaymentSense, attempts to negotiate the best rates for customers by gathering the transactions together into one shared account, instead providing one merchant account for each business. Additionally, it promises merchants a price match on card payment services. Customers enjoy transaction fees but don’t like the £24.95 monthly minimum charge, and the automatic renewal of the contract.
Lloyds Bank Cardnet
Lloyds Bank Cardnet is one of the major merchant account providers in the UK. It gets favorable rating from merchants because existing customers get the benefit of discounted rates. Though merchants get the convenience of renting hardware, like terminals, from Lloyds, merchants don’t like the 48-month long rental contract. Also, the equipment leases are done through First Data Global Leasing (FDGL) and cannot be cancelled until the full term is up. To get out of leases, merchants have to buy out their full contract amounts. Additionally, merchants have complained about Lloyd’s hefty £50 set-up fee.
Making a Choice
Now, that it is clear what types of retail merchant complaints providers face the most, it is easier for merchants to choose one. Merchants should weigh the pros and cons of each merchant service provider, read reviews and look at online complaint boards, and contact them directly to get answers. Also, determine whether you are able to consider higher upfront fees because the overall rates are competitive, they offer more features, or other tools that really benefit your business. Sometimes, it just comes down to a choice – maybe you are willing to take a minimum monthly charge in exchange for a shorter contract.
Obviously, committing to a three year or four year contract may not be ideal for your business, if you are newly established or small. That’s a long commitment when you are unsure whether the relationship is right for you. In the end, you are likely to get the best deal if you negotiate with providers directly.