Review Updated: 5/9/2013
Merchant Warehouse Overview
Merchant Warehouse (merchantwarehouse.com) is a merchant account provider in established 1998 and claims to be one of the first merchant processors to offer credit card processing equipment over the Internet. The provider boasts that over 30,000 merchants chose Merchant Warehouse each year and that the company processes over $7 billion in credit card sales annually. In 2009, the Electronic Transaction Association (ETA) chose Merchant Warehouse as the “ISO of the Year,” which is considered as a prestigious award within the merchant services industry.
In addition to offering merchant accounts, Merchant Warehouse introduced a new processing solution in 2012 branded and the “Genius Customer Engagement Platform.” This technology consists of a suite of payment and reward program services and hardware that are designed to help merchants accepts payments with both traditional methods (credit cards, debit, ACH, etc.) and emerging payment method, such as digital wallets, QR codes, NFC and EMV. Merchant Warehouse promotes that the system is “future proof” and can help merchants leverage new technologies as they gain popularity among consumers.
Merchant Warehouse is a registered ISO/MSP of the following banks: US Bank-Minneapolis MN, HSBC Bank USA, National Association Buffalo, NY, and Wells Fargo Bank, N.A., Walnut Creek, CA. The company appears to primarily use First Data for its processing network
Merchant Warehouse Marketing & Sales Tactics | A+
Merchant Warehouse relies primarily on lead generation, client referrals, advertising and an inside sales staff to acquire new merchant customers. This strategy greatly minimizes the problems most other processors have with deceptive sales tactics because Merchant Warehouse does not use outside independent sales agents who are only interested in high sales commissions. Additionally, Merchant Warehouse does not advertise rates or fees on its website nor was this reviewer able find any uses of deceptive marketing.
Merchant Warehouse Pricing & Contract Terms | A-
By far the biggest appeal of Merchant Warehouse this that this provider offers month-to-month contracts with no early termination penalties, an attribute that makes the company stand out in an industry for which multi-annual service agreements are common. Pricing and fees of a Merchant Warehouse merchant account are more typical with processing rates varying from one merchant to the next based upon a merchant’s business type, processing volume, risk profile, and the agent setting up the account. In addition, the company charges a $99 annual PCI Compliance fee along with other common monthly fees. All rates and fees appear to be negotiable prior to account activation, so merchants are encouraged to fully read their agreement and discuss fees prior to signing.
Merchant Warehouse Complaints & Service | A-
Although Merchant Warehouse has far fewer complaints filed online than most providers of its size and time in business, this reviewer did uncover a handful negative reviews. The complaints center mostly on issues relating to misunderstandings of fees and discontent over the $99 annual PCI Compliance fee. In most cases Merchant Warehouse addressed the complaints directly and provided explanations of the circumstances from their point of view. It’s apparent that the company places great importance on maintaining a positive online reputation. The complaints are infrequent and not widespread; therefore, not causing reason for concern with this reviewer. Although one dissatisfied merchant created a blog to label Merchant Warehouse as a scam, no evidence was found to support such a claim.
Merchant Warehouse BBB Report | B (CPO Adjusted)
As of this review, Merchant Warehouse maintains an “A+” rating with the BBB and has been accredited since 2002. According the the BBB.org website, 114 complaints have been filed in the last three years with all but 11 resolved the merchant’s satisfaction. The bulk of the complaints are related to billing and collection issues, and product and/or service issues problems. Due to the type of complaints filed, it is advised to thoroughly read your merchant account agreement and to make sure you understanding the pricing before signing.
Merchant Warehouse scores well is this review primarily due to well rated customer service and that the company offers month-to-month service agreements. Although the company has suffered from a low volume of complaints, it appears that Merchant Warehouse works diligently to resolve them. The primary complaints of the service are the $99 annual PCI Compliance fee and merchant confusion over some of the monthly fees, both of which signal a possible need for better disclosure prior to account activation. Overall, we believe that the vast majority of Merchant Warehouse customers are satisfied and that new merchants are safe with this company.
Visit The Merchant Warehouse Website for more information.
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