Note: The BaseRates Merchant Services website has been down for over a year, so we assume the company is out of business and will no longer be updating this profile. If you have information that the company is still in business, please let us know in the comments below.
BaseRates Overview
Founded in 2014, BaseRates Merchant Services is a merchant account provider that seeks to distinguish itself with its unique credit card processing pricing plan. Like Fattmerchant or Payment Depot, BaseRates advertises that it passes the wholesale interchange costs on to its merchants with no additional per-transaction markup. In place of a per-transaction fee, BaseRates merchants only pay a flat monthly fee to process cards, which is very uncommon within the industry.
Headquartered in California
BaseRates Merchant Services is a registered ISO/MSP of Elavon and is headquartered at 3579 E. Foothill Blvd, Ste #277, Pasadena, California 91107.
Customer Reviews & Sentiment
Low Complaint Total
We have found only two negative BaseRates Merchant Services reviews on the usual consumer protection websites, so it is unlikely that the company is a scam or a ripoff. These complaints are contained in the Reddit thread linked above and mention higher-than-expected rates, poor communication by sales agents, and poor customer support.
BaseRates Merchant Services Lawsuits and Fines
We have not found any outstanding class-action lawsuits or FTC complaints filed against BaseRates Merchant Services. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
BaseRates Merchant Services Customer Service Options
BaseRates advertises 24/7/365 phone support (which is probably serviced through Elavon), so merchants should be able to reach a live representative at any time. We have therefore assigned it an “A” in this section, but we do not consider it a top credit card processor for customer service. If you have had any experience with the company’s customer support channels, please describe your experience in the comment section below.
Client Satisfaction Ratings
No Profile with the BBB
The Better Business Bureau does not currently maintain a profile for BaseRates Merchant Services. We will therefore not factor a BBB rating into our overall grade for the company.
Card Processing Rates & Fees
Interchange Rates on a Month-to-Month Contract
BaseRates has a unique pricing model that, if advertised accurately, could be the cheapest processing option available for many merchants. Instead of earning its revenues with a per-transaction markup under either an interchange-plus plan or a tiered pricing plan, BaseRates charges merchants a simple $0.05 fee per transaction plus a fixed monthly fee and then passes along interchange costs as they’ve been set by the card networks. In other words, a merchant’s only costs through BaseRates will be a fixed monthly fee.
Merchants processing under $10,000 in sales per month are charged a monthly fee of $35. Merchants processing under $25,000 per month are charged $49. While high volume merchants whose monthly transactions exceed $25,000 are charged a fee of $59. BaseRates also advertises that it offers month-to-month contracts with no PCI compliance fee or early termination fee, and the company also appears to either sell or lease equipment.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, BaseRates Merchant Services also mentions that its same plans and pricing structure are available to e-commerce merchants.
A Lone Contract Complaint
On the surface, everything about the pricing through BaseRates indicates that the company is a great deal for most merchants. However, merchants are cautioned to read all documentation carefully and to inquire as to whether any additional parties may impose fees. We have found only one BaseRates complaint that describes unexpectedly high rates through the company, but the merchant, in this case, seems to have received an effective rate of around 3%. That’s not a remarkably high effective rate, so it’s possible that the merchant just didn’t understand how interchange rates work. Even though the company seems to offer competitive pricing, merchants are still advised to ensure that they fully understand their agreements before signing.
We also encourage merchants to check out our list of the providers of thebest merchant services.
Bottom Line
A Unique Approach Appropriate For Some Merchants
BaseRates Merchant Services rates as a reliable merchant services provider according to all available information. However, the company is still relatively new and utilizes an unconventional pricing plan that may not be a perfect fit for all merchants. Some may prefer to work with a top-rated payment processor that features a more standard pricing structure. Merchants are advised to carefully read all documentation and ensure that they understand all rates and fees. As a final note, merchants should be aware that the company’s name could easily be miswritten as “Base Rates Merchant Services.”
BaseRates Rating
