Braintree Payment Solutions (braintreepayments.com) is a merchant account provider based in Chicago, Illinois. Founded in 2007, the company is fairly new to the credit card processing industry but is showing a lot of promise. Braintree markets its services primarily to e-commerce merchants, subscription-based businesses, and merchants that key in all of their credit card transactions.
Braintree’s payment gateway offers virtually automatic PCI Compliance by storing the credit card data off of the merchants’ systems and on its own secured servers. The system allows cards to be recharged or refunded without reentering the card information and enables merchants to set up recurring charges for periodic billing purposes, such as subscriptions and memberships. Braintree also allows U.S.-based merchants to accept international payments in 134 local currencies with settlement in 21 different currencies.
Braintree was purchased by PayPal in September 2013 for $800 million. The acquisition also included Venmo, Braintree’s mobile cash transfer service. Braintree uses First Data for its card processing network, but merchants appear to deal with Braintree exclusively for the service of their accounts. Braintree is located at 111 North Canal Street, Floor 4, Chicago, Illinois 60606, and the company’s acquiring bank is Wells Fargo Bank, N.A., Walnut Creek, California.
Braintree Products and Services:
- PayPal integration
- v.zero integration
- OneTouch integration
- Apple Pay acceptance
- Recurring billing
- Split payments for marketplace-style businesses
- Processing in 40 countries and 130 currencies
- Mail order/phone order
|Key Points – Sales & Marketing|
|Uses independent resellers?||No|
|Promotes deceptive rate quotes?||No|
|Discloses all important terms?||Yes|
Braintree does not appear to use any deceptive advertising, price quoting, or sales tactics. The company markets its services primarily online and through strategic partnerships. We are currently unable to locate any negative Braintree reviews that mention the company’s sales team; we therefore award the company an “A+” in this category.
Braintree Marketing Example
|Key Points – Costs & Contract Terms|
|All transactions:||2.9% + $0.30|
|PCI compliance fee:||None|
Braintree updated its pricing in October of 2012 and now offers just one account type with flat pricing and no service length commitments, including all of the system’s features. The company’s transaction fee is similar to that of PayPal’s and Stripe’s at 2.9% + $0.30 per transaction for all card types with no minimum fees, monthly fees, PCI Compliance fees, or cancellation fees. The only possible fees that a merchant could experience are a $15 Chargeback fee in the event that a cardholder disputes a transaction and a 1% per-transaction fee on multi-currency transactions. Additionally, high volume businesses may qualify for custom rates.
In March 2014, Braintree announced Braintree Ignition, a program that allows new U.S. merchants to process their first $50,000 in transactions for free. There are no strings attached, and these merchants will simply switch over to Braintree’s normal pricing after the first $50,000 has been processed.
Merchants who wish to use Braintree’s payment gateway with a different processor may do so at a cost of $49 per month and 10 cents per transaction.
|Key Points – Complaints & Service|
|Live customer support?||Yes|
|Most common complaint:||N/A|
At this time, we are able to locate only a couple of Braintree complaints, neither of which accuses the company of being a scam or a ripoff. These complainants primarily cite issues with fund holds through Braintree, but one review also mentions trouble with customer service. Although fund holds can be difficult for any business, the fact that one reviewer is an international business and the other appears to have high-risk processing patterns indicates that most traditional merchants will not encounter the same issues as these two merchants. There are also an overwhelmingly large number of positive reviews indicating that the company employs a responsive and helpful customer service staff. Braintree offers both phone and email support in addition to a large online knowledge base.
|Key Points – BBB Report|
As of this review, the Better Business Bureau is showing that Braintree has not sought BBB accreditation. The BBB has assigned an “A+” rating based upon one complaint filed in the last 36 months due to a billing and collection dispute. The complaint was resolved successfully with assistance from the BBB. In light of this successful resolution and the fact that Braintree has no other complaints filed against it, we agree with the BBB’s rating for Braintree.
Braintree Payment Solutions scores well as a merchant services provider in this review due to its flat transaction fee and elimination of monthly fees, PCI Compliance fees, setup fees, and cancellation fees, as well as its lack of merchant complaints and negative reviews. Overall, the service appears to be best suited for e-commerce, mail-order/telephone order, and subscription/membership businesses.
This review was originally published on 11/19/12 and was last updated on 1/5/15.
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