What to Know Before Getting Started
Starting a New Business?
Selecting a credit card processor is often more complicated than most people expect. How much should you be paying in fees? Should you lease or buy equipment? Should you be locked into a service agreement for anything length of time? These considerations and several others are imporant to understand before signing up with any merchant account provider. Mistakes are easily made and can be very costly to your business. Along with seeing our top choices for payment services below, be sure to checkout this post to avoid common traps in the merchant services industry.
Considerations For Current Business Owners
Changing merchant accounts can be an expensive, complicated, and time consuming process. Are you really going to save as much as promised? Do you need to buy to new equipment or sign new lease agreements? Will there be other less accountable costs such as those associated with employee retraining? Before selecting one of our choices below, you may want to consider renegotiating your fees with your current payment processing vendors using the help of a contingency-compensated consultant. It can result in a dramatic decrease in costs without the pains of switching. In some cases business owner have also obtained substantial refunds of prior overcharges along with saving thousands in future processing costs. See this post to learn more about this little-known alternative to changing merchant account provider.
When it comes to your wholesale distribution business, it’s all about efficiency. Moving products quickly from manufacturers to wholesalers and optimizing your own internal logistics requires constant attention to detail. This same approach also comes in handy when you’re shopping for a merchant account. In order to cut out hidden costs and avoid purchasing unnecessary products, you’ll need to do a little bit of research on the industry. Typically, B2B organizations like distributors will be best served by a virtual terminal that offers automated billing, accounting software integration, ACH processing, and access to Tier 2 and Tier 3 processing rates. If you can find these services for a competitive price, you should be operating an even leaner, more cost-effective business in no time.
To help you find an affordable provider that works for you, we’ve put together the following list of the best merchant accounts for wholesale distributors. The companies on this list offer virtual terminals, online billing, MOTO processing, and other useful tools for operating your wholesale distribution center. They are also known to provide low-commitment contracts with transparent pricing and quality customer service. To find the right provider for your distribution company, be sure to research each processor’s products and features and compare pricing and terms.
Our unbiased articles are supported in part by helping you find highly reviewed merchant accounts. You can learn more here.
Why These Merchant Account Providers
Host Merchant Services
Host Merchant Services is a Newark, Delaware-based merchant account provider that is well-suited for wholesale distribution services of all sizes. The company’s products and services include online marketing tools, an online payment gateway and virtual terminal, mobile credit card processing, and merchant cash advance. Host Merchant Services specializes in e-commerce businesses and provides a free website and email address to interested new merchants. Host is an affordable option for distributors that would prefer to accept most of their transactions over the internet.
Host Merchant Services has received only positive feedback on public forums, with most reviewers singling out the company’s customer service for praise. Host offers interchange-plus pricing with no early termination fees to all of its merchants, meaning that users will enjoy the most transparent pricing model and can cancel service without penalty. The BBB gives Host an “A+” rating, and CPO also gives the company an “A+.”
For more information, visit the Host Merchant Services website or call (888) 727-4538.
PaymentCloud
Based in Woodland Hills, California, PaymentCloud is a merchant account provider that specializes in serving standard to high risk business types. The company’s products and services include point-of-sale solutions, mobile phone swipers, an online payment gateway and virtual terminal, EMV-compatible terminals, and merchant cash advances. These features allow wholesale distributors to tap into the benefits of inventory management tools hosted by POS systems. Furthermore, PaymentCloud provides wholesale rates for merchants in this industry. For those reasons, PaymentCloud is a good option for wholesale distributors.
PaymentCloud provides a dedicated account rep to all new merchants for the life of the account. The company has not received any negative complaints on consumer forums, and it customizes its pricing according to each merchant’s business type and processing history. The BBB does not maintain a profile for PaymentCloud at this time, but CPO gives the company an “A.”
For more information, visit the PaymentCloud website or call (888) 506-7859.
Fattmerchant
Active since early 2014, Fattmerchant is a merchant account provider leading the industry’s move toward flat-rate, subscription-style pricing. The company’s products and services include EMV-compatible countertop terminals, a virtual terminal, an online payment gateway, an online shopping cart, mobile phone processing, QuickBooks integration, online invoicing, and recurring billing. Fattmerchant is capable of serving all standard-risk wholesale distributors and offers a comprehensive dashboard for tracking all payments and customers.
Fattmerchant offers multiple pricing plans with different rates. Merchants can select either a plan that charges a flat fee on all transactions or a plan that charges a fixed monthly fee plus a fixed per-transaction dollar amount above interchange. In other words, merchants can choose whether or not they are charged a percentage markup on each transaction. Fattmerchant currently has an “A” rating on CPO and an “A+” rating with the Better Business Bureau.
For more information, visit the Fattmerchant website, or call (866) 397-9826.
Our unbiased articles are supported in part by helping you find highly reviewed merchant accounts. You can learn more here.
Why These Merchant Account Providers
Helcim
NXGEN Canada
Other Merchant Account Options
The providers in this section may not have been researched as thoroughly or may lack a quality that prevented them from being listed above. We have listed them here to provide a broader view of potential merchant account options. Are you a decision maker with your company and believe that you should be listed below? Tell us here.
CDG Commerce
Located in Chesapeake, Virginia, CDG Commerce is another great option for distribution companies. CDG has been privately owned since 1998 and offers a proprietary payment gateway (as well as a discount on Authorize.Net’s payment gateway), a virtual terminal, QuickBooks integration, mobile phone processing, sales reporting, security breach protection, and vulnerability scanning. CDG Commerce is ideal for wholesale distributors that desire a simple, low-cost, integrated method for accepting in-person and online payments.
CDG Commerce only charges a low, fixed fee per transaction and offers competitive contractual terms, including no annual fees, monthly minimums, or termination fees. CDG also offers next day funding to most business types. CDG has earned an “A+” rating in our review as well as an “A+” rating with the BBB.
For more information, see the CDG Commerce website or call (888) 393-1079.
Payline Data
Headquartered in Chicago, Illinois, Payline Data has consistently rated as one of the best merchant account providers on CPO since we first reviewed the company. Payline is capable of serving distribution services of all sizes and types. The company offers traditional retail credit card terminals, mobile phone credit card processing (via Flint), an online payment gateway and virtual terminal, online invoicing, QuickBooks integration, and API integration for websites. Payline Data is a great all-purpose option for any large-scale distributor or shipping company.
In addition to its wide array of services, Payline Data offers interchange-plus pricing with month-to-month contracts and no early termination fees. As a result, the company enjoys a large number of positive testimonials from its clients on this website and in other consumer protection forums. The Better Business Bureau currently assigns Payline Data an “A+” rating, and CPO also gives Payline an “A+.”
Dharma Merchant Services
Based in San Francisco, California, Dharma Merchant Services is a highly rated merchant account provider that places a corporate emphasis on social consciousness and community outreach. The company’s products and services include countertop terminals, mobile device payment processing, an online payment gateway and virtual terminal (Authorize.Net), QuickBooks integration, small business financing, and custom fundraising pages for non-profits. The company also extends special pricing to non-profit organizations and donates a percentage of its profits to non-profits of its choosing every year. Dharma is best suited to provide savings for distributors that process over $10,000 per month.
Dharma scores highly in our review and elsewhere due to its positively reviewed customer service, transparent marketing practices, competitive interchange-plus rates, and fair service agreements. The BBB currently assigns a rating of “A+” for Dharma Merchant Services, while CardPaymentOptions.com also gives the company an “A+.”
For more information, see the Dharma Merchant Services website or call (888) 404-1237.
ProPay
Headquartered in Levi, Utah, ProPay is an e-commerce merchant account provider that provides simple billing and payment options for distribution and logistics companies. ProPay users can utilize digital invoicing to collect payments from clients via email or purchase ProPay Jak, the company’s mobile phone processing solution, to take payments in person. ProPay is also able to process ACH transactions through its virtual terminal and online payment gateway. ProPay is an ideal choice for distributors that require a fully-featured, enterprise-scale digital payments option without the physical equipment offered by traditional providers.
ProPay’s pricing will vary depending on each merchant’s business type, size, time in business, and preferred method of payment acceptance. The company is a TSYS subsidiary and has a very low complaint total in the past three years for a provider of its size. Our review of ProPay currently gives the company an “A” rating, while the Better Business Bureau gives ProPay an “A+.”
For more information, see the ProPay website.
If your business offers merchant services for wholesale distributors, please leave a comment in the comment section below or contact us through our contact page in order to get listed in this article.
About Phillip Parker
Thank you for reading my review. I hope that it has helped you with your research.
Why I'm Qualified to Write About Credit Card Processing and Merchant Account Services
I'm a former credit card processing sales director who left the industry because I didn't like how it takes advantage of small business owners. It feeds like a leech on businesses and thrives by imposing fees that are nearly impossible to comprehend. Seeing a need for change, I left and built this website help business owners better understand the industry, research merchant services providers, and get refunds of excessive merchant account fees. My experience of working "behind the curtain" in the industry, and using that knowledge for good, has resulted in millions of dollars returned to hard-working small business owners as well as enterprise-level companies.
From the time that I starting working in the merchant services industry to when I left to create this website, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this "insider" knowledge to myself. To lift the fog, I've reviewed hundreds of companies, read thousands of user reviews, and learned the pricing tricks of every provider. If you have questions about credit card processing, you can find the answers on this website.