CardConnect In-Depth Review

We take our role in providing guidance and education regarding the card payment industry very seriously. At our own expense, we have vigorously defended our right to continue expose unethical and predatory practices in the industry, successfully defeating every attempt to silence us. However, fending off frivolous lawsuits is costly. To sustain these efforts, one of the ways we generate revenue is through affiliate partnerships with ethical providers. This means that some of our outgoing links connect business owners to trustworthy, low-cost payment processors, which is what most of our readers seek. We see this revenue channel as a win-win-win for everyone involved. Business owners find good processors, processors get good clients, and we are able to continue to provide a valuable service to the small business community. We also recommend and link to many services that do not compensate us. Our priority is to guide you to the best solutions for your needs, regardless of potential revenue. If you have questions, please feel free to contact us.

All mentions of rate and fee costs are estimations based on publicly available information and client feedback. Actual costs may vary based on a variety of factors unique to your business.

CardConnect

Rating
F
1/5
full starempty starempty starempty starempty star

Pros and Cons of CardConnect

Pros

Secure Transactions
Modern Payment Hardware
User Friendly POS

Cons

Potential High Fees
Undisclosed Pricing
Frequent Complaints reported
Potential Contract Committments
Customer Support Issues

Overview

In this investigative review of CardConnect, a Fiserv subsidiary, we will examine the business practices of a large processor with a strong presence in the United States. This article will address common customer complaints and how they reflect on CardConnect’s customer service, pricing, rates, contract issues, and issues related to the company's sales and marketing practices. We will also cover legal challenges and recent lawsuits to gauge compliance with consumer protection laws. This article aims to provide a balanced viewpoint on CardConnect to help business owners understand if the company is the right fit for their credit card processing needs.

About CardConnect

Screen Capture of CardConnect Homepage
CardConnect’s Homepage

CardConnect, originally known as “Financial Transaction Services,” is a merchant account provider that operates as an independent credit card processing subsidiary of Fiserv. The company was founded in 2006 by Brian Shanahan before changing its name and relocating to Pennsylvania. CardConnect was subsequently acquired by First Data (which has since rebranded as “Fiserv”) in 2017 and serves as one of the companie’s primary marketing channels for Fiserv. In essence, when a business signs up for credit card processing through CardConnect, they are actually signing up to process with Fiserv, but with key differences in sales tactics and client prospecting.

Products & Merchant Services

CardConnect markets a range of financial services aimed at small businesses. Particularly in credit processing and customer payment acceptance.

  • Payment Processing
    • CardConnect provides payment processing services for all major credit and debit cards targeting numerous business types and industries.
  • Payment Gateways
    • CardConnect offers a branded payment gateway called “CardPoint” that allows businesses businesses to accept credit and debit card transactions online. The platform is promoted to to be user-friendly and customizable, but has garnered numerous complaints from merchants.
  • Virtual Terminals
    • CardConnect’s virtual terminal enables businesses to manually enter and process payments via a web-based interface. This type of solution is useful for phone orders where card details are provided remotely.
  • Mobile Payment Acceptance
    • CardConnect offers a mobile app for accepting card payments via tablets and smartphone, similar to that of Square.
  • Card Readers and Hardware
    • CardConnect provides a range of card readers that are compatible with both mobile devices and traditional payment terminals. These readers support EMV chip cards, magnetic stripe cards, and contactless payments.
  • POS Systems
    • CardConnect integrates with Clover POS hardware by Fiserv, which include physical point-of-sale systems with registers, printers, and touchscreens. Clover POS offers a variety of hardware options depending on the size and needs of the business.
  • E-Commerce
    • Bolt is CardConnect’s software integration for embedding payment acceptance directly into business websites or software platforms.

Customer Reviews & Sentiment

Significant Complaint Volume regarding CardConnect

There have been over 100 negative reviews concerning CardConnect, with some individuals suggesting potential involvement in unethical business practices. While CardConnect has responded to several complaints on various platforms, some responses appear generic or copied. Customers have raised issues with customer service, although company representatives have made efforts to address dissatisfied clients.

Two comment rebuttals attributed to individuals from CardConnect were considered unprofessional and discourteous. As these individuals are no longer associated with the company, it is reasonable to assume that such interactions do not reflect the present company culture or customer service approach. Unfortunately, CardConnect’s complaint rate has shown an increase over time, possibly due to rapid expansion and acquisitions. Numerous complaints cite subpar customer service and unmet commitments.

Industry Scores & User Ratings

Online Ratings Summary
PaymentPop1
BBB Rating1
TrustPilot Rating2.3
Google Maps1.8
Software Advice Rating3.7

PaymentPop Rating for CardConnect

Negative Feedback

cancelling is difficult.

I haven’t used account for over four years and can’t cancel by phone and the fees are ridiculous and different every month even though I don’t use the merchant system anymore.

Positive Feedback

There are no positive reviews published about CardConnect on the PaymentPop website.

See more CardConnect customer reviews on PaymentPop.com’s listing.

CardConnect BBB Rating

CardConnect has a BBB rating of B and is not BBB accredited. The company has an average customer review rating of 1 out of 5 stars, based on 28 customer reviews. There are 89 complaints closed in the last 3 years, with 41 closed in the last 12 months. Common themes in the reviews and complaints include issues with service quality, difficulties in communication with the company, and problems with transactions or financial handling.

Negative Feedback

Horrible customer service, including rude staff and weeks to resolve support requests. I am currently involved in an issue with them that has taken 2 weeks and gone in circles and still unresolved. They have interfered in my ability to operate my business and taken tremendous amounts of my time trying to resolve this issue. When I requested to speak with a manager to resolve this, I was denied. Therefore, I am issuing this review to make others aware. Please choose a different company!

Positive Feedback

There are no positive reviews published about CardConnect on the Better Business Bureau website.

Trustpilot Rating Analysis for CardConnect

CardConnect has a “Poor” rating on Trustpilot, with an average score of 2.3 out of 5, based on 7 customer reviews. The reviews overwhelmingly reflect negative experiences, with 100% of the reviewers giving a 1-star rating. Common themes among these reviews include complaints about customer service, difficulties in canceling services, and issues with unauthorized transactions and fees.

Negative Feedback

In addition to the horrible customer service, they also make it incredibly difficult to cancel. My first two phone attempts at cancellation after my CC provider went out of business last June resulted in cases being created, followed by ‘rate reduction’ offers but not actually closing the account. It has taken 3 calls so far and on this latest call they state that they require ‘written’ request to cancel and then it takes 30 days and plus a cancellation fee. I already sent multiple emails reiterating my ‘cancel’ request but they only told me today, the apparently super secret email address where they need to receive those cancellation requests (cancel-at-cardconnect.com). Avoid this company. – Review from October 20, 2023

Positive Feedback

There are no positive reviews published about CardConnect on the Trustpilot website.

Google Maps Rating for CardConnect

CardConnect has a 1.8 out of 5 star rating based on 118 user reviews on Google Maps.

Positive Feedback

Love having the entire solution with a hosted payment page, e-commerce and virtual terminal. Experience with customer service has always been good.

Negative Feedback

Robbery. Small business owner they took 20% of my revenue in 1 month. Don’t fall for their lower %s to start, they will raise them and you will fight for your money back.

Software Advice Rating Analysis for CardConnect

CardConnect has an average customer review rating of 3.7 stars on Software Advice based on 39 customer reviews. The reviews reflect a mix of experiences, with some users appreciating the ease of use and integration capabilities, while others express dissatisfaction with customer support and setup difficulties.

Negative Feedback

It’s a merchant account, and it operates as such. Nothing extra about it, and if you don’t run up against an issue that requires you to speak with customer support, it will work adequately for you. If you require someone to help you who actually has the knowledge needed to troubleshoot…GOOD LUCK! THEY HAVE HORRIBLE CUSTOMER SUPPORT! Clear statements and easy to track transactions. Not a single person in their customer service knows butkis about their own product. You get different answers from different people on the same subject. You are bounced around like a ping pong ball, and it can take days to get situations resolved. In my case months!!! I have never had worse customer service than here. – Review by Kathleen, Non-Profit Organization Management, October 2023

I love how it helps us streamline event payments across all our properties, however, its been a nightmare for us to setup for each property. I like how useful card connect is when we have business that we execute at 4 different properties in San Francisco and allows us to require full payments which allows us to run low risk for events that may have previously had an event balance. It has been a nightmare to setup with each of our businesses. We are currently going on three months and still waiting to launch our cc payments for one of our venues. Communication isn’t the best. – Review by Ashley, Hospitality, September 2023

Positive Feedback

At the Chicago Psychoanalytic Institute, we’ve had to implement a new educational management software and as a result, we needed to register for a merchant account that was applicable to the new software. After further review of the potential merchant accounts, CardConnect was a winner. It acted as gateway to Authorize.Net that provided the best CC processing/transaction fees compared to the other merchants and offers a number of services that benefits the Institute. Overall, the best feature about this software is their customer service from all sides. We were given incredible support through the whole process from the application to going live. The response time was amazing and made it their priority to resolve any issues that you may have as soon as possible. – Review by Julius, Mental Health Care, October 2018

The set up was easy and integrated seamlessly. The tap feature has only worked twice since we’ve gotten it. – Review by Emily, Fine Art, July 2022

Source: Software Advice

Processing Rates & Fees

Variable Contract Terms, Rates, and Fees

CardConnect doesn’t readily disclose its merchant contract terms, but reports reveal various details. These include service agreements lasting up to five years, a monthly PCI compliance fee of $8.25, and potentially high early termination fees, reaching up to $750. Additionally, there are mentions of an annual fee of up to $288, retroactively applied at year-end. The standard application lists monthly minimum fees of $25, a $5 statement fee, and a $19.95 monthly PCI non-compliance fee. Furthermore, there’s a reference to a POS system equipment lease, presumably through First Data Global Leasing, considering CardConnect’s affiliation with First Data/Fiserv.

RELATED: Considering switching from CardConnect? Prioritize retroactive refunds through an independent audit.

Virtual Terminal and Payment Gateway Pricing For Online Sales and E-Commerce

Apart from its in-store payment services, CardConnect advertises its CardPointe virtual terminal and payment gateway. However, specific pricing and fees for these services aren’t disclosed. Additional rates and fees, such as gateway fees, technical support fees, batch fees, and additional transaction rates, are typical for e-commerce merchant services.

Level 2 and Level 3 Processing for Merchant Services

CardConnect offers Level 2 and Level 3 processing for B2B and B2G transactions in addition to traditional merchant services. These processing levels entail different interchange rates than standard consumer credit card transactions, necessitating specialized payment processing technology and POS systems from the merchant account provider.

CardConnect Transaction Fees

While some sources suggest tiered pricing starting at 2.32% for “Qualified” transactions, pricing likely varies based on factors like the sales agent and business type. CardConnect doesn’t prominently feature interchange-plus pricing, which is the most transparent model. A class-action lawsuit alleges deceptive fees, citing a second agreement attached to the initial merchant contract, adding 0.25% plus $0.07 to agreed-upon rates. Given the industry-average to below-average contract terms, CardConnect isn’t considered competitive with the cheapest merchant account providers. Refer to our list of the best merchant accounts for alternatives.

Lawsuits & Legal History

In 2016, CardConnect was involved in a class-action lawsuit (Kao et al v. CardConnect Corp) alleging deceptive practices in merchant contracts. In 2021, CardConnect agreed to a $7.65 million settlement to address the claims.

While CardConnect has not faced direct government actions or fines, its parent company, Fiserv, has incurred substantial penalties, including one exceeding $40 million.

Employee Reviews & Sales Practices

Outside Independent Sales Agents

CardConnect is a vast independent sales department of First Data/Fiserv, so its sales strategy mirrors that of First Data. The company partners with independent sales agents and offices to market and sell its credit card processing and point-of-sale services. This strategy often results in expensive fees for CardConnect’s customers because the income received by independent agents is based on commission. The size of the commissions is directly tied to the rates, fees, and lease terms of the merchant account. The higher the fees and the more aggressive the lease terms, the higher the commission for the agent.

Lack of Contract Disclosure

As is the case for many merchant service providers who market their services through independent salespeople, CardConnect suffers from numerous complaints regarding failures to disclose important contract terms at the time of signing a service agreement. These agreements can include predatory clauses such as early termination fees costing hundreds of dollars if a merchant account is closed prior to the end of an arbitrary length of time, or even non-cancellable leases on equipment which can cost unsuspecting business owners thousands of dollars on equipment that can be purchased for just a few hundred.

CardConnect Sales Complaints

The comment section below this review includes several reports of deceptive sales practices, including one allegation of forgery by a sales agent. Despite a proactive response by CardConnect’s customer service department to some of these comments, we are inclined to issue a word of caution before agreeing to services provided by this credit card processor. If you suspect that a CardConnect representative has failed to disclose hidden fees in your merchant account, we recommend seeking a third-party statement audit. CardConnect does not compare favorably to our list of best credit card processors.

CardConnect Competitors

Compare CardConnect to competitors that earned top marks.

Bottom Line

Our examination of CardConnect’s services reveals a company with robust technology offerings like advanced security measures and integrated software solutions. Yet, the persistence of customer complaints, particularly regarding hidden fees and the difficulty in canceling services, calls for caution. Their use of independent sales agents has resulted in varied customer experiences, potentially leading to inconsistencies in service and transparency. Given these complexities, businesses considering CardConnect’s services are advised to thoroughly review all contract terms and seek comparisons with other top-rated providers to ensure clarity and satisfaction.

For those seeking alternatives, exploring more other A-Rated Processors may be advisable. Engaging with a provider that maintains clear pricing, straightforward contracts, and responsive customer service will likely yield better long-term satisfaction and operational stability.

Read Actual User Reviews

All user reviews have been moved to our partner, PaymentPop.com

Contact CardConnect

Contact & Customer Support
CEOJeff Shanahan
Headquarters1000 Continental Drive, #300, King of Prussia, Pennsylvania 19406
Toll-Free General Customer Service(877) 828-0720
ISV Partner Support(484) 581-7690
POS Hotline(888) 211-1273
Websitecardconnect.com