Teledraft Overall Rating
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Teledraft Overview
Teledraft Logo
Founded in 2003, Teledraft is company that specializes in ACH (Automated Clearing House), EFT (Electronic Fund Transfer) and credit card processing services. Teledraft is based in Chandler, Arizona and appears to service merchants in both the U.S. and Canada. The focus of this review will be on Teledraft’s merchant account and credit card processing services, and not on Teledraft’s other financial services
Teledraft Sales & Marketing Tactics | A+
Teledraft does not appear to use any misleading sales tactics or marketing. In fact, it looks as though the company solely offers Interchange Pass-through rate pricing to its merchant customers. This is not only rare, but reflects very well on Teledraft’s business practices.
Teledraft hires independent sales agents, which would normally be a mark against the company, but there is no evidence to support that it has lead to problems for Teledraft. It likely indicates that Teledraft provides thorough training for its agents and controls the sales process closely.
Teledraft Fees, Costs & Contract Terms | A+
Teledraft advertises excellent merchant account rate pricing and contract terms, and appears to offer uniform pricing to all businesses solely based on the type of Teledraft account the merchant chooses. As mentioned earlier in this review, the company offers only Interchange Pass-through, which is the least costly and most transparent rate tier. Additionally, Teledraft offers month-to-month contracts, no minimum transaction fees and no cancellation fee. Below is Teledraft’s pricing as of this review:
Teledraft Merchant Account Pricing Matrix
Other fees include a $0.39 batch fee, $25 Chargeback fee and $99 annual PCI compliance fee.
Teledraft Complaints, Dispute Resolution & Service | A+
The only blemish on Teledraft’s record is a handful of lawsuits in 2003-04 in which the company was successfully sued for providing ACH services to a telemarketing scheme that bilked its victims out of hundreds of dollars. Although Teledraft was not involved in the scam itself, it failed to stop providing services to the organization that was putting on the scheme. Several state attorney generals held Teledraft liable for their failure and ordered them to pay back the transaction fees they collected.
Aside from complaints that are related to the scam, Teledraft has no other complaints filed on the usual websites and forums, and none since 2004
Teledraft Better Business Bureau Report | A+
Teledraft is not accredited with the Better Business Bureau (BBB), which basically means that it has not paid the BBB for the accreditation. As of this review, the BBB is reporting no complaints filed in the last 36 months. The lack of any BBB complaints for a merchant services provider is a very positive sign that the company has a strong customer service and sales process.
Bottom Line
Aside from the problems with the lawsuits that Teledraft was named in, the company appears to be good option for credit card processing services. Teledraft’s pricing and fees are lower than average and the company offers month-to-month contracts. As always, merchants are advised to thoroughly read and understand the terms of their merchant account agreement before signing with any provider.
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