Payzone Hidden Charges – The Full Story

Wednesday, August 29th, 2018

At first glance, Payzone looks like a convenient merchant services provider that offers customized packages, a host of card machines. Much of this is true, but upon looking closer and digging deeper, you will discover Payzone hidden charges.

The Real Scoop on Payzone

As an independent sales organization and member service provider that works with a number of merchant acquirers, including Barclaycard and Elavon, Payzone is really a middleman. So, this is how it works. Acquiring banks handle the card transaction processing and therefore, also set the fees. Payzone sets up merchants, oversees customer and technical support, and negotiates a rate on your behalf with Barclay, Elavon, or another acquirer.

On one hand, this works to your advantage because it gives you and other small merchants an opportunity to get a merchant account with a very large international provider, such as Elavon. Typically, this approach means you get an account at discounted rates based on the total volume of transaction through a Payzone account. Unfortunately, this also means that you can’t see rates upfront.

If Payzone ends up connecting your business with Barclay, you can expect to pay rates starting at £20 per month plus a transaction rate between 0.6% – 2.5% for each sale per card plus a flat rate transaction fee. In addition to these charges, your rates also will include Payzone’s fee. The size of your business, your needs, and any additional features will determine Payzone’s fee.

Since the processing is handled by the third parties and the contracts will come from them, the price you are quoted from Payzone may not be what is reflected in your final agreement. This is where some Payzone hidden charges are lurking.

Think About the Contract

Payzone offers a 12-month standard contract. Shorter month-to-month, 6-month contracts, or rolling contracts, however, are not options. Fortunately, Payzone does not offer contracts for longer than one year. This is good news because you won’t be stuck in a lengthy contract that doesn’t work for your business.

Additionally, Payzone does not charge set up or termination fees when you cancel when your contract is about to expire. However, you will have to pay a fee or the remaining months of your contract if you want to cancel your contract before it expires. Also, keep in mind it is possible that you will have to pay for terminal collection and maintenance after the equipment is returned.

The Final Note On Payzone Hidden Charges

Though Payzone has benefits, like getting a merchant account with a major acquirer and not paying set-up fees, one major con is that it is not a bank. Since Payzone is a not a bank, it must get you set up with a merchant account through a third-party acquiring bank. Though this has its rewards, it adds another level of complexity to the situation. Working with Payzone, means accepting a certain level of uncertainty in terms of upfront rates, potential hidden fees, and technical problems.

To avoid this type of situation, you have to do your due diligence to determine what you will end up paying per month, do your research, and ask directly about any hidden costs. Negotiating directly for yourself is often the most beneficial way to get the best rates, terms, and conditions for your business.

Just like with any service, weigh the pros and cons before you agree to sign any contracts. Now that you know the full story, follow these tips to avoid Payzone’s hidden charges.