GoPayment Overall Rating
Last Updated: January 16, 2014
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. We will be scoring GoPayment independently of Intuit Merchant Services because GoPayment operates under completely different contract terms and pricing.
GoPayment Sales & Marketing Tactics | B+
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.
GoPayment Costs & Contract Terms | A-
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 credit card processing is quoted at a flat fee of 2.75% per swiped transaction like Square’s 2.75%. Just like Square, GoPayment’s fee is higher when transactions are typed into the phone rather than swiped through the reader, coming in at 3.75% versus 3.15% +$0.25 with Square. At first glance it appears that the companies are using the same pricing model and that GoPayment offers a very slight savings for swiped transactions. Upon digging deeper, this reviewer found that there is more to GoPayment’s pricing.
Unlike Square, which uses the same processing rate for all card types, GoPayment actually has two tiers for swiped transactions. The fine print indicates that the 2.75% fee 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. However, GoPayment does not list exactly which card types it considers to be “Qualified.” The second tier of 3.75% applies to “Qualified” cards that have been keyed in. GoPayment will also 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.
Although GoPayment has a month-to-month service with no cancellation fee, the company does assess 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+).
GoPayment offers another tier of pricing for merchants with moderate-to-high transaction volume. For a monthly fee of $12.95, merchants can get a lower “Qualified” swipe rate of 1.75% with the “Non-Qualified” rate staying the same. Merchants that wish to take American Express or JCB cards through GoPayment will need to set up separate AMEX and JCB merchant accounts, which is typical in the credit card processing industry. These accounts can easily be set up during the GoPayment signup process, or by visiting the companies’ respective websites at a later date.
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 GoPayment to get higher processing limits.
It is important to note, if you are already an Intuit Merchant Services customer, 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.
For a full breakdown of GoPayment’s pricing tiers and additional fees, see this page.
GoPayment Complaints & Service | A-
GoPayment has mostly positive reviews among all users, but there are approximately 50 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 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 BBB Report | N/A
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 appears to be a great 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.
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