Capital One Merchant Services 2023: Reviews & Complaints
(866) 343-8447 Company Overview
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.
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 Services Payment Processing
Capital One processes credit and debit card payments through virtual and smart terminals, hosted web pages, and mobile readers. They allow most major payment methods including swipe, EMV, contactless, keyed-in, phone order, email invoicing, PayPal, most major credit cards, and gift and loyalty cards.
Location & Ownership
Richard Fairbank is listed as the CEO of Capital One, which is headquartered at 1680 Capital One Dr, McLean, VA.
Table of Contents
- Costs & Contract: Appears to offer a three-year contract through WorldPay with…
- Complaints & Service: Has received fewer than…
- BBB Rating: Does not have a profile with…
- Sales & Marketing: Does not appear to hire independent sales representatives and has not…
Capital One Customer Reviews
Here's What Their Clients Say
| Item | Result |
|---|---|
| Total Online Complaints | <10 |
| Live Customer Support | Yes |
| Most Common Complaint | N/A |
| Recent Lawsuits | No |
Low Complaint Total
We are unable to locate any negative Capital One Merchant Services reviews that describe the company as a scam or a ripoff. The only negative Capital One Merchant Services reviews that we have found are related to the now-defunct Spark Pay, and these are few in number and infrequent in occurrence. By far the most commonly cited issue is fund withholding, which is a common complaint among providers that offer simple signup and free mobile processing apps. WorldPay has amassed hundreds of negative complaints online, but we cannot find any that specifically describe a poor experience through its Capital One partnership. If you have your own Capital One Merchant Services review to make, please do in the comments below.
Capital One Merchant Services Lawsuits
We have not found any outstanding class-action lawsuits or FTC complaints filed against Capital One Merchant Services. Dissatisfied clients who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
WorldPay Customer Support Options
WorldPay offers phone and email support to all of its clients. It’s unlikely that WorldPay’s customer service through Capital One is noticeably better than its normal customer service, but we will give it the benefit of the doubt until we receive negative feedback from businesses.
Capital One Online Ratings
Here's How They Rate Online
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 & Costs
A Closer Look at The Contract
| Item | Result | >
|---|---|
| Cancellation Penalties | Yes |
| Monthly & Annual Fees | Yes |
| Processing Rates | Variable |
| Equipment Leasing | Yes |
WorldPay Contract Terms
As a reseller of WorldPay’s merchant services, Capital One does not offer unique contract terms of its own. Rather, it sells standard WorldPay contracts with standard WorldPay pricing. The specific details of the company’s pricing will likely vary depending on the representative who sets up the account, but overall, there is no reason to expect an experience that is materially different from the standard WorldPay service.
Variable Rates and Fees
WorldPay’s pricing, rates, and fees will vary by merchant type and according to whether the client signed up for services through a reseller or directly through WorldPay. WorldPay advertises rates of 2.90% plus $0.30 for swiped transactions and 3.30% plus $0.30 for those that are keyed in. Based on a few reports, it appears that businesses are more likely to experience higher rates and longer service agreements by signing up directly with WorldPay instead of through a reseller. This is probably because the company gives resellers pricing and contract flexibility, which allows them to offer better deals to clients if they choose to do so.
Three-Year Contract
Business owners considering a WorldPay merchant account should read the company’s contract carefully because the standard service agreement is for three years with automatic one-year renewals if written notice is not given within 90 days of the service expiration. If clients cancel while under contract they may experience a $95 to $495 cancellation penalty. Additionally, the company appears to charge a PCI Compliance fee of $15-$25 per month, which is above average for the industry. Businesses are also reporting an annual fee of $69 for what looks like an IRS 1099 reporting fee.
Additionally, Worldpay leases point-of-sale equipment through its ISO’s at terms ranging from 12 months to 48 months, with a monthly charge for the equipment based on each merchant’s credit score. Clients leasing equipment from Worldpay have the option to purchase the equipment at the end of their lease term.
It should be noted that most credit card terminals can be purchased for under $500. Non-cancellable, long-term leases mean a client can pay thousands for that same equipment making them a contract term to avoid.
Higher-Than-Average Pricing
The potentially high cancellation fee, auto-renewing contract, and high compliance fees are the factors that greatly lower the company’s rating in this section. WorldPay’s standard agreement does not come close to competing with the cheapest merchant accounts.
Capital One Employee Reviews & Sales Tacitcs
Should You Work For Them?
| Item | Result |
|---|---|
| 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.
Our Capital One Review Summary
Our Final Thoughts
Capital One Merchant Services rates as an above-average credit card processing provider according to all available information. The company more or less offers WorldPay’s products and services, but it surprisingly does not appear to be attracting a large volume of complaints at this time. Due to WorldPay’s reputation, businesses are encouraged to compare Capital One’s products and pricing to those offered by the top-rated merchant services providers.
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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.