In this review of Capital One’s credit card processing services, we will provide a detailed overview of the company’s offerings. We will cover the range of services they provide, including point-of-sale (POS) systems, mobile payment solutions, and e-commerce capabilities. The review will identify the types of businesses that might benefit from these services. Additionally, we will examine client and customer reviews to highlight common trends and potential concerns. The article will also address the company’s pricing structure, contract terms, and specific services provided. By the end of this review, you will understand whether Capital One’s credit card processing services meet your payment processing needs.
About Capital One Merchant Services
Capital One Merchant Services is a division of Capital One bank that provides merchant accounts and other business solutions for small businesses. Capital One is partnered with WorldPay for its merchant services, meaning that merchants will deal with WorldPay rather than Capital One for most of their payment processing services and support. Founded in 1994, Capital One is a large national banking company that has traditionally focused on consumer credit services and personal banking.
Capital One Merchant Services Homepage
Spark Pay Discontinued
In recent years, Capital One took an interest in credit card processing with the launch of its SparkPay mobile phone processing service in mid-2013 and the more recent introduction of an iPad-based point-of-sale system called Spark Point of Sale. Both products have since been discontinued.
Capital One Merchant Products and Services
Payment Processing
Capital One offers a variety of merchant products and services that cater to different business needs. Their offerings range from physical payment processing solutions to digital tools aimed at streamlining payment acceptance.
Virtual and Smart Terminals
Capital One provides virtual and smart terminals, enabling businesses to process payments without needing traditional hardware. This can be an efficient option for businesses that operate remotely or in environments where space is a concern.
Hosted Web Pages
For businesses looking to handle payments online, Capital One offers hosted web pages that allow merchants to accept payments through a customized interface. This service supports integration with existing websites.
Mobile Readers
Mobile readers are another tool in Capital One’s product lineup. They allow businesses to accept payments on the go, ideal for service providers, small businesses, and vendors at temporary locations.
Payment Methods
Capital One supports various payment methods, including swiping, EMV chip cards, contactless payments, and phone orders. Additionally, they offer integration with PayPal, providing customers with more options when making purchases.
Email Invoicing
Email invoicing is another service offered by Capital One, allowing businesses to send invoices electronically and receive payments more quickly.
Gift and Loyalty Cards
Capital One also offers gift and loyalty card solutions for businesses looking to enhance customer engagement. These programs can help businesses build customer loyalty and provide additional revenue streams while also offering customers more ways to interact with the business.
Capital One Customer Reviews
Customer Reviews Summary
Total Online Complaints
<10
Live Customer Support
Yes
Most Common Complaint
N/A
Recent Lawsuits
No
Low Complaint Total
Our search didn’t reveal any Capital One Merchant Services reviews that categorize the company as a scam or a ripoff. Negative feedback associated with Capital One Merchant Services mainly pertains to Spark Pay, which is no longer operational. These reviews are limited and sporadic. The most frequent issue mentioned is fund withholding, a common concern among providers offering easy signup processes and free mobile processing apps. Although WorldPay has numerous negative reviews online, we found no specific complaints about its partnership with Capital One Merchant Services. We welcome your Capital One Merchant Services reviews in the comments section below.
Capital One Merchant Services Lawsuits
No significant class-action lawsuits or FTC complaints have been filed against Capital One Merchant Services. Clients seeking non-litigious resolutions for their concerns with Capital One Merchant Services are advised to report them to relevant supervisory bodies.
Capital One Customer Satisfaction Ratings
No Dedicated Profile
Capital One Merchant Services does not have its own Better Business Bureau profile at this time, but Capital One as an overall entity does have a BBB page. The BBB is currently assigning Capital One an overall rating of “A-” based on 10,821 complaints and 1,151 reviews. Since this profile does not specifically field complaints related to Capital One’s merchant services division or WorldPay, we will not factor it into this review for now.
Capital One Fees, Rates & Contract
Rates & Fees Summary
Cancellation Penalties
Yes
Monthly & Annual Fees
Yes
Processing Rates
Variable
Equipment Leasing
Yes
WorldPay Contract Overview via Capital One
Capital One, acting as a reseller for WorldPay, extends the merchant services provided by WorldPay without offering unique contractual conditions. The terms, including pricing and fees, largely reflect WorldPay’s own structures and can vary based on the account representative’s discretion. The relationship with Capital One doesn’t materially alter the standard service offerings of WorldPay.
Diverse Rates and Agreement Lengths
Pricing under WorldPay can fluctuate based on several factors including merchant category and the avenue through which services were procured, either directly or via a reseller like Capital One. Advertised rates stand at 2.90% plus $0.30 for swiped and 3.30% plus $0.30 for keyed transactions. Reports suggest a direct arrangement with WorldPay might lead to higher fees and lengthier contracts compared to engaging through a reseller.
Three-Year Standard Agreement
Entering a WorldPay agreement through Capital One necessitates careful review of the contract, typically set for three years with subsequent yearly renewals unless a 90-day pre-expiration notice is issued. Early termination might incur fees ranging from $95 to $495. WorldPay also applies a monthly PCI compliance fee between $15 and $25, with an annual $69 charge possibly for IRS 1099 compliance, both considered higher than industry norms.
WorldPay’s equipment leasing options, facilitated through ISOs for terms from 12 to 48 months, are dependent on the merchant’s credit profile, offering a purchase option at lease end. Considering most credit card terminals cost less than $500 outright, long-term leases can significantly inflate equipment costs, suggesting a purchase is often the more economical choice.
Assessment of Pricing Competitiveness
Factors like potential high termination fees, automatically renewing contracts, and elevated compliance charges necessitate a cautious approach. WorldPay’s standard offerings, as facilitated by Capital One, are not positioned among the most competitive merchant account options available. Merchants are encouraged to review contract details thoroughly and consider alternatives for more favorable terms.
For additional insights and comparisons, merchants may find value in our selection of highly recommended merchant service providers.
Capital One Employee Reviews & Sales Practices
Jobs & Marketing Summary
Uses Independent Resellers
No
Telemarketing
No
Misleading Marketing
No
Discloses All Important Terms
No
Inside Sales Team
Capital One appears to rely primarily on traditional advertising and strategic partnerships to market its services. Like many other large banks, Capital One utilizes its existing personal banking services as a channel for attracting business customers. There is no evidence that the company utilizes a team of independent sales agents, and we are currently unable to locate any negative Capital One Merchant Services reviews that describe deceptive sales tactics by the Capital One sales team.
No Deceptive Quotes
Capital One also does not list any misleading rate quotes or unrealistic guarantees on its website. All of these factors incline us to award Capital One an “A” in this category for the time being. If you suspect that Capital One is overcharging you, however, you can double-check your pricing with a third-party statement audit.
Capital One Review Summary
Capital One Merchant Services holds an above-average rating as a credit card processing provider based on all currently available information. Essentially mirroring WorldPay’s suite of products and services, the company surprisingly does not seem to be attracting a significant volume of complaints. However, given WorldPay’s reputation, businesses are encouraged to conduct a thorough comparison of Capital One’s offerings and pricing against those of top-rated merchant services providers. Such diligence ensures that they receive the most favorable terms, balancing reliability and cost-effectiveness, while navigating an increasingly competitive payment processing landscape.
Please note that we only suggest providers that adhere to strict ethical standards and offer top performing support at extremely competitive pricing. We may earn revenue if choose one of our recommendations.
Reader Comments, Testimonials & Complaints
1 User Reviews
Christopher Ackley
Had my card for 3 years, I’ve never missed or been late a single payment. They will not increase my $300 limit, but are more than happy to charge me $30 for going over my limit by $2. But if I tried to go over my limit $100 they declined it. There’s also a yearly fee of $60. I’ve likely paid $300 just in fees since I’ve had this card. They’re a horrible company that wants to charge you fees rather than being a high quality credit company. I wouldn’t recommend capital one to even those with the worst credit cuz that’s who they are trying to entrap. I’d recommend Canadian Tire and American Express are far beyond better. Do not do business with these shysters. I imagine most of these ratings are fake and paid for by capital one.
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Christopher Ackley
Had my card for 3 years, I’ve never missed or been late a single payment. They will not increase my $300 limit, but are more than happy to charge me $30 for going over my limit by $2. But if I tried to go over my limit $100 they declined it. There’s also a yearly fee of $60. I’ve likely paid $300 just in fees since I’ve had this card. They’re a horrible company that wants to charge you fees rather than being a high quality credit company. I wouldn’t recommend capital one to even those with the worst credit cuz that’s who they are trying to entrap. I’d recommend Canadian Tire and American Express are far beyond better. Do not do business with these shysters. I imagine most of these ratings are fake and paid for by capital one.