Merchant Warehouse Review

Overall Rating Breakdown
Sales & Marketing Tactics
Costs & Contract Terms
Complaints & Service
BBB Rating

Merchant Warehouse

"A" Credit Card Processor Rating

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Jump to: Sales & Marketing | Costs & Contract | Complaints & Service | BBB Complaints

Merchant Warehouse Overview

Merchant Warehouse Logo

Merchant Warehouse Logo

Merchant Warehouse ( is a merchant account provider established in 1998 that 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 choose 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 a prestigious award within the merchant services industry.

In addition to offering merchant accounts, Merchant Warehouse introduced a new processing solution in 2012 branded 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 accept payments with both traditional methods (credit cards, debit, ACH, etc.) and emerging payment methods, 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 and is located in Boston, Massachusetts.

Merchant Warehouse Sales & Marketing Tactics | A+

Key Points – Sales & Marketing 
Uses independent resellers? No
Promotes deceptive rate quotes? No
Discloses all important terms? Yes

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. Merchant Warehouse does enable outside sales agents to market its merchant services under the Capital Bankcard brand, which scores an “A” in our review. 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 Costs & Contract Terms | A-

Key Points – Costs & Contract Terms
Swiped rate: Variable
Keyed-in rate: Variable
Termination fee: None
PCI compliance fee: $99 per year
Equipment lease: Variable

By far the biggest appeal of Merchant Warehouse is 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-

Key Points – Complaints & Service
Total complaints: 80+
Live customer support? Yes
Most common complaint: Hidden fees

Although Merchant Warehouse has far fewer complaints filed online than most providers of its size and time in business, this reviewer did uncover a number of negative reviews on other consumer protection websites and in the comment section of this review. 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 in comparison to the company’s size; therefore, they are not a reason for concern with this reviewer. Although one dissatisfied merchant created a blog to label Merchant Warehouse as a scam, no evidence has been found to support such a claim.

Merchant Warehouse BBB Report | B (CPO Adjusted)

Key Points – BBB Report
Product/service: 58
Billing/collection: 70
Advertising/sales: 33
Guarantee/warranty: 1
Delivery: 8

As of this review, Merchant Warehouse maintains an “A+” rating with the Better Business Bureau (BBB) and has been accredited since 2002. According the the website, 170 complaints have been filed in the last three years with all but 30 resolved to the merchant’s satisfaction. The bulk of the complaints are related to billing and collection issues and product or service problems. The company also has 46 negative customer reviews filed against its profile, but these complaints are not screened or subject to review by the BBB. Due to the types of complaints filed, it is advised to thoroughly read your merchant account agreement and to make sure you understanding the company’s full pricing before signing.

Bottom Line

Merchant Warehouse scores well in this review primarily due to well-rated customer service and the fact that the company offers month-to-month service agreements. Although the company’s score suffers from a low volume of complaints for its size, it appears that Merchant Warehouse works diligently to resolve them. The primary complaints of the company’s 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.

Merchant Warehouse Review

Rated 4.125 Out of 5 Stars
Reviewed by Phillip Parker
Reviewed on 2014-07-17 14:44:35

Merchant Warehouse ( has far fewer complaints filed online than most providers of its size and time in business, but this reviewer did uncover a handful of negative Merchant Warehouse reviews. The complaints centered mostly on issues relating to misunderstandings of fees… Learn more in this Merchant Warehouse review.

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About the author

Phillip Parker

Phillip Parker is a former merchant services agent turned small business advocate and the author of "Fee Sweep," which teaches merchants how to dramatically lower their processing rates, eliminate junk fees, and avoid fine-print scams. He founded to help merchants enact positive change in the credit card processing industry.

Phillip can help you find an ethical and honest processor that will offer you great rates. Click here to request a free provider consultation.

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  1. Tony Funk

    I tried Merchant Warehouse for a couple of months, the fees were higher than they stated they would be but the real kicker was that they LOST a $1200 transaction. I got a confirmation # but they somehow lost it internally. After spending hours on the phone over several weeks they finally forced the transaction through because it was “the last day possible” and then charged me a higher rate because they had to force it through. I cancelled immediately, I dont like to pay for other people’s mistakes. They also made me pay for another months service and the $99 fee even though I was cancelling.

    There are much better avenues to use, I am very happy with the processor I am with now.

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    1 / 1 found this review helpful.
  2. Britney T.

    I have called this crappy company 15 times today. Even tried to call the direct line, but it just rang and rang. The “cancellation department” apparently doesn’t exist because there is I quote “no external line” to call and when you are transferred internally, there is only a voicemail that tells you they are available 8-6 p.m. M-F, but they are not available at this time…. no matter how many times you get the message. The “customer service” department is horrible. The people are either rude and don’t listen or are stupid and don’t listen. It’s one lie after another and another. The sales people lie. I spoke with one who said I wouldn’t be charged until I accepted the account. I was charged anyway. The company took no time taking my money, but apparently it will take 10-14 business days to put the money back into my bank account…? Why? It takes me 5 minutes to put money into my bank account. That makes no sense. I tried to chat online on their “24/7 chat” but it said “there is no one available at this time,” yeah, that’s not 24/7 chat service, now is it? The customer service said there was nothing they could do to get me my money back any sooner. I feel like I am going to have a panic attack. This is ridiculous. This “company” is just a thieving, maniacal, evil corporation that is out to get you and your money. I will NEVER use any company like this one again. And as for it’s superb BBB rating, well, I just assume the people who gave the rating are on crack because there’s just no way that this company could be rated anything more than a big fat zero in my book. Don’t trust them. They’re crap. I’ve never been so screwed over in my life. At least my bank assured me that the company can’t take any more money, but even doing that costs money. So now I’m out $100 just for talking to a sales person. Wow. Just wow.

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    4 / 4 found this review helpful.
    1. Britney

      For anyone wanting to stop these fees: I cancelled my account and talked to SEVERAL employees before getting funds back to my bank acct. but, it is possible to do if you talk to the right person. I also put in a stop payment with my bank. Cost $30 but well worth it. They can’t touch my account now.

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      1 / 1 found this review helpful.
  3. Joni Lambert

    I signed up with Merchant Warehouse after the fees described to me seemed reasonable and the services available seemed to match my needs. I specifically asked the representative if the fees he described were the only fees and he swore up and down they were. NOT SO! All sorts of mystery fees started showing up. I tried to cancel, but the following month I got charged again. I called back and was told some nonsense about an obligatory final fee. Two months later (and two additional fees) the account was finally closed.

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    7 / 7 found this review helpful.
  4. Sherri Stewart

    I used to be happy with Merchant Warehouse, but they are like all others in raising costs every time we get a statement and now I am paying 2.885%! When I try to call, either I get a busy signal and then get a “you’ve reached a number that is no longer in service”. They are now charging a fee for myvantageportal that I do not even have a login for! I called last month, after a full day of trying to get through, and said I did not want, they lady gave me credit but then it was charged again this month!!! Typical credit card processor crap. I am thinking seriously about not taking credit cards any more!

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    5 / 5 found this review helpful.
  5. Laurence Hallas

    Was with them for many years. Grumbled about all the increasing surcharges and an itemized to death invoice every month but I could always call them and get an answer on things.

    Reached the point where we realized we could get a better deal with another provider – a MUCH better deal so canceled the service. The mistake I made was to cancel BEFORE I had finished signing up with the other provider. Merchant Warehouse within 24 hrs put me on the Terminated Merchant File issued by Visa and MasterCard! For those of you who don’t know (as I didn’t), this is the dreaded Blacklist and almost impossible to get off of.

    Here is a link for a better explanation for those needing advice:

    Essentially only the company that put you on the list can take you off and you can NOT RUN ANY CHARGES from any merchant anywhere! You are dead in the water.

    Calls to Merchant Service were met with polite ignorance. They said my account looked fine, but clearly it was not. After a week of phoning and working my way up through the system, I was taken off the list without explanation though perhaps the last call from my lawyer may have helped.

    I do not know what happened, but the only thing I can surmise is that some pinhead in the organization put me on the black list because they had not gotten their monthly fee that closed my account 3 days later (all of $54). They had told me that they would be taking the fee out and I of course was willing to pay.

    So beware! They are a good company as long as you stay with them. Getting out may end up being a big issue. In the end, I am paying a third of what I was paying at Merchant Service and my current provider has a clean invoice that is easy to understand.

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    5 / 5 found this review helpful.
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