Just like the review for Square, this GoPayment (GoPayment.com) review will focus on the concerns of business owners and not so much on the technology of the product.
GoPayment (often misspelled as Go Payment or GoPay) is a mobile credit card processing product for iPhone, iPad, and Android devices created by Intuit Merchant Services. As of this update, Intuit appears to be slowly converting the name of the service from “Intuit GoPayment” to “QuickBooks GoPayment” or “QuickBooks Payments,” possibly in an effort to reclassify GoPayment as a mobile processing option within QuickBooks Merchant Services. For the purposes of this review, we will be scoring GoPayment independently of Intuit Merchant Services because GoPayment operates under completely different contract terms and pricing.
|Key Points – Sales & Marketing|
|Uses independent resellers?||No|
|Promotes deceptive rate quotes?||Yes|
|Discloses all important terms?||No|
The marketing strategy, web design, and execution of GoPayment is strikingly similar to that of Square. And just like Square, GoPayment offers a free smartphone app and card reader, although the reader appears to be the more robust ROAMpay reader. Overall, GoPayment is very transparent about its pricing, but there are two common fees that the company’s “Pricing” page does not disclose. The first is a PCI Compliance fee that is assessed on e yearly basis and is calculated according to a merchant’s processing volume (see section below for exact figures). The second is a $0.15 fee that is tacked on to all “Non-Qualified” transactions, which can only be seen by scrolling to the bottom of the company’s homepage and clicking a small “Important pricing terms, offer details, and disclosures” link. Although this information is technically disclosed, it’s not located anywhere near the pricing breakdown in the middle of the page.
Intuit primarily markets its service through online advertising and strategic partnerships.
|Key Points – Costs & Contract Terms|
|Swiped rate:||1.75%-2.75% + $0.25|
|Keyed-in rate:||3.15-3.75% + $0.15-$0.25|
|Termination fee:||$295-$500 or none|
|PCI compliance fee:||$35-$100 per year|
Aside from the similarities in execution and marketing, there is a significant difference in the way Intuit sets the processing rates for GoPayment versus how Square sets its pricing. GoPayment’s pricing has also become much more complicated in recent months.
Intuit appears to offer two pricing plans for its QuickBooks mobile processing service: “Simplified” pricing and “GoPayment” pricing. It seems that the Simplified plan is available to QuickBooks Merchant Services customers who add mobile processing to their existing accounts, while GoPayment pricing is reserved for merchants who only want the mobile card reader without also paying for other QuickBooks or Intuit services.
Simplified pricing is available in two versions: “Pay As You Go” and “Pro.” The Pay As You Go plan quotes a swiped rate of 2.4% plus $0.25 and a keyed-in rate of 3.4% plus $0.25 with no monthly fees. The Pro plan quotes a swiped rate of 1.75% plus $0.25 and a keyed-in rate of 3.15% plus $0.25 with a monthly fee of $19.95.
The standalone GoPayment pricing plan also offers a “Pay As You Go” version and a “Pro” version. The Pay As You Go plan charges a flat fee of 2.75% per swiped transaction and a 3.75% fee on keyed-in transactions with no monthly fees. The Pro plan charges a swiped rate of 1.75% and a keyed-in rate of 2.75% with a monthly fee of $12.95. These are the service’s transaction fees and monthly fees, but there are other potential costs that will be discussed in greater detail below.
Unlike Square, which uses the same processing rate for all card types, GoPayment actually groups all swiped transactions into two tiers. The fine print indicates that the advertised swipe rate is actually reserved for swiped Visa and MasterCard “Qualified” cards, which are typically personal credit/debit cards that do not have a rewards or miles program attached to them. Similarly, the keyed-in rate only applies to manually entered transactions that are “Qualified.” GoPayment will add $0.15 to any transaction, swiped or keyed, that is considered “Non-Qualified.” GoPayment defines “Non-Qualified” as “corporate cards, foreign cards, and transactions that do not meet Visa/MC/Discover Network requirements for the best interchange program.” There is no mention of whether rewards/miles cards fall into the “Non-Qualified” category, which seems to indicate that they fall into the “Qualified” tier. These tier distinctions are important because a high percentage of credit cards have have rewards programs attached to them.
GoPayment also appears to added an early termination fee to its service in some cases. The company’s merchant agreement states that the merchant “may be required to pay termination fees as set forth in your Merchant Application. If your Merchant Application references a ‘standard termination fee,’ a fee of $295 dollars will apply upon your termination of Services.” Intuit also assesses an annual PCI Compliance fee that varies based upon transaction volume ($35 for 1-24 annual transactions, $50 for 25-99, and $100 for 100+).
[Related: Compare Fees and Save Money]
GoPayment is transparent about processing limits and notifies merchants what their limits are in their online dashboards. Merchants who will have high processing volumes or high ticket sales ($5,000+/mo or $500+/sale ) will want to contact the company to get higher processing limits.
It is important to note that the free card reader offer only applies to new customers. Therefore, it looks like existing customers will still be bound to their original merchant account agreement and be required to purchase the card reader if they wish to use GoPayment.
Overall, GoPayment’s pricing has become remarkably complicated since the service was first launched, and it appears that GoPayment merchants can receive either very competitive terms or very expensive terms. For a full breakdown of GoPayment’s pricing tiers and additional fees, see this page.
|Key Points – Complaints & Service|
|Live customer support:||Yes|
|Most common complaint:||Fund holds|
There are over 80 complaints filed against the company on this and other consumer protection websites. Most of these complaints have to do with GoPayment placing holds on transactions in excess of a merchant’s processing limit, although some have been filed regarding poor customer service or nondisclosure of “Non-Qualified” transaction rates. Since GoPayment clearly displays merchants’ processing limits upon signup and in the service’s dashboard, it seems that many of these complainants simply did not understand that they were only allowed to process up to a certain amount on a weekly or monthly basis. A GoPayment representative has been very active in responding to complaints in the comment section of this review.
Probably the biggest advantage that GoPayment support offers over Square is a dedicated telephone customer support line. Square relies primarily on email support and buries its contact number, which often goes to a voice mail system when called.
GoPayment is technically under the Intuit umbrella of services and does not have its own Better Business Bureau (BBB) profile. Intuit’s BBB profile has an “A+” rating as of this review. For the purposes of this review, Intuit’s BBB rating will not be factored into GoPayment’s overall rating for two reasons: First, the report is not specific to GoPayment, and second, GoPayment appears to operate under completely different service terms and customer support than Intuit’s traditional merchant account setup.
Overall, GoPayment card processing appears to be a decent product and most merchants seem happy with the service. Additionally, GoPayment’s paid account tier offers better swipe rates than Square, which makes it more attractive for businesses that have higher processing volumes or accept credit cards on a regular basis. It should also be noted that GoPayment is compatible with many more phones than Square. A complete list of compatible devices can be found on the GoPayment website.
This review was originally published on 7/13/11 and was last updated on 8/21/14.
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