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Citi Merchant Services Review: Is It the Best Fit for Your Business?

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Maintained Since: March 31, 2014

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Citi Merchant Services
Rating
C
3/5
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Pros

Comprehensive payment solutions
Low complaint rate
Variable pricing options.

Cons

Complex cancellation process
Hidden fees reported
Early termination fees
Limited transparency
Long-term contracts

Overview

In this review of Citi Merchant Services, we’ll provide a clear analysis of its offerings, covering rates, fees, contract terms, and the full range of payment processing options, including credit card, debit card, and online transactions. We’ll examine customer and employee feedback to highlight common complaints and overall satisfaction, while also addressing the company’s security measures and compliance practices that safeguard sensitive data. By weighing the pros and cons reported by users, this review offers a balanced perspective to help businesses decide whether Citi Merchant Services is the right fit for their payment processing needs.

About Citi Merchant Services

Screen Capture of Citi Merchant Services Homepage
Citi Merchant Services

Citi Merchant Services is the merchant account division of Citigroup. Founded in 1812 under the name City Bank of New York, the company did not assume the name Citigroup until the $140 billion merger of Citicorp and Travelers Group in 1998. Citigroup is currently the third-largest bank holding company in the U.S., and it boasts the world’s largest financial services network. Citi Merchant Services is a reseller of First Data (now Fiserv) merchant services, so the company may not directly service its merchant accounts.

Products & Merchant Services

Payment Processing

Part of Citigroup, Citi Merchant Services processes debit and credit card transactions for various business types. The service also handles check and gift card processing and facilitates online payments through Clover Online and the Payeezy Gateway. For mobile and point-of-sale transactions, it uses the popular Clover products, including the Clover Flex, Clover Go, Clover Mini, and Clover Station.

Business Management Tools

Citi Merchant Services provides customizable business management tools and point-of-sale systems. Businesses can enhance their point-of-sale capabilities with over 400 apps designed to manage various aspects of their operations.

Online, Mobile, and In-Store Payment Solutions

The service offers flexible payment options suitable for different business models, including in-store, online, and mobile solutions. This allows businesses to accept payments in various settings, catering to a broad range of customer preferences.

Security and Compliance

Citi Merchant Services emphasizes security, incorporating built-in payment security technologies to protect customer cardholder data.

Customer Reviews & Sentiment

Analysis of Citi Merchant Services Feedback

Upon review, only a minimal number of negative Citi Merchant Services reviews have been identified, with a singular complaint labeling the company as a scam. Considering Citigroup’s substantial scale, this complaint volume is notably low. It’s worth noting that certain grievances might be directed towards First Data (now Fiserv), which partners with Citigroup. Recurring issues among the complaints include undisclosed fees, unsatisfactory customer service, and binding long-term contracts accompanied by significant early termination fees. We encourage you to share your experiences with Citi Merchant Services by leaving a review in the comments section below.

Citi Merchant Services Support Infrastructure

Citi Merchant Services provides a robust customer support system, featuring live support, comprehensive online FAQs, and chat support to promptly address and resolve business-related inquiries and issues. This proactive approach to customer service likely contributes to the low volume of public complaints.

Industry Scores & User Ratings

Online Ratings Summary
PaymentPop5
BBB Rating1.04

PaymentPop Rating for Citi Merchant Services

Negative Feedback

There are no positive reviews published about Citi Merchant Services on the PaymentPop website.

Positive Feedback

We’ve been using Citi Merchant Services for over a year, and the experience has been solid. Their integration with Clover made our transition easy, and the reporting tools help us stay on top of our daily transactions. It’s clear they’re backed by a strong network—we rarely have to think about our payment system, and that’s exactly how it should be.

No Dedicated Profile

The Better Business Bureau does not maintain a profile for Citi’s merchant services division, but the bank itself has an “F” rating with the BBB. The company is showing 6,864 overall complaints, but since this BBB profile includes complaints from users of all of Citi’s services, it is not a useful measure of the company’s merchant services division. We will therefore disregard it for the purposes of this review.

Processing Rates & Fees

First Data Contract Terms

Given the close association between the company and First Data (Fiserv), the standard Citi Merchant Services contract mirrors many aspects of the standard First Data (Fiserv) contract. For businesses processing up to $50,000 monthly, the swiped rate is 2.69% plus $0.19, while the keyed-in rate is 3.69% plus $0.19. For clients exceeding $50,000 in monthly charges, the swiped rate is 2.29% plus $0.19, and the keyed-in rate is 3.29% plus $0.19. These contracts often include non-cancellable, long-term equipment leases through First Data Global Leasing. While First Data (Fiserv) can provide month-to-month agreements with no hidden fees, there have been reports of an early termination fee of $495, annual PCI Compliance fees potentially reaching $179, and variable monthly minimums. Additionally, Citi Merchant Services may enforce Liquidated Damages fees on certain accounts and equipment leases through First Data Global Leasing. For comprehensive options, we recommend business owners to review our list of the top providers of merchant services.

Virtual Terminal and Payment Gateway Pricing

In addition to its in-store payment processing services, Citi Merchant Services highlights its virtual terminal and payment gateway offerings. Utilizing Payeezy, a First Data (Fiserv) payment gateway, the company presents two plans: the Basic Plan and the Pro Plan. The Basic Plan imposes no gateway fee but charges a transaction rate of 2.90% plus $0.30, while the Pro Plan has a $19.95 monthly gateway fee but offers a transaction rate of 1.89% plus $0.23. However, how these payment gateway plans will be delivered to clients through Clover Online remains uncertain. Additional fees such as technical support fees, batch fees, and set-up fees may also apply to these e-commerce services.

Variable Pricing

The pricing and fees for businesses are likely to differ based on the agent facilitating the account setup, as well as the size, type, and tenure of the business. However, First Data’s (Fiserv) standard pricing typically does not match the offerings of the most cost-effective merchant accounts. If you possess specific insights into the standard Citi Merchant Services contract, please contribute to the discussion in the comment section below this review.

Lawsuits & Legal History

Our search did not uncover any class-action lawsuits or Federal Trade Commission (FTC) complaints directly aimed at Citi Merchant Services. Clients looking for non-litigious resolutions are advised to report their issues to relevant regulatory organizations.

In September 2020, the Commodity Futures Trading Commission (CFTC) mandated Citibank N.A. to settle a $4.5 million penalty for erasing audio recordings that had been subpoenaed in a separate investigation. Additionally, in 2022, Citigroup was implicated in a legal dispute with Loomis Sayles concerning $70 million in lost trades, which remains unresolved.

Employee Reviews & Sales Practices

Inside/Outside Sales Team

Citi appears to utilize both its standard sales channels and a team of independent resellers to market its services. This marketing strategy is usually tied to high complaint rates for a company, but in the case of Citi, there are very few Citi Merchant Services reviews that mention deceptive sales practices by the company’s sales team. The few Citi Merchant Services complaints that are available mention nondisclosure of fees and poor follow-up by agents, but the number of these negative Citi Merchant Services reviews is much lower than would be expected for a company of this size. This compares favorably to our list of best credit card processors.

No Deceptive Quotes

In addition, Citi does not appear to advertise misleading rate quotes in its official materials. The company’s online advertising is a very limited assortment of First Data (Fiserv) promotional materials. If you suspect, however, that your Citi representative misled you about your pricing, you can double-check your monthly bill with a third-party statement audit.

Citi Merchant Services Competitors

Compare Citi Merchant Services to competitors that earned top marks.

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Bottom Line

Citi Merchant Services is considered a better-than-average credit card processing provider. The company operates primarily as a reseller for First Data (now Fiserv), yet it has managed to maintain complaint totals that are significantly lower than other resellers of similar size under the First Data banner. This lower rate of complaints suggests that Citi may offer a more satisfactory service experience or better manage customer issues compared to its peers within the First Data network.

For business owners considering Citi Merchant Services, it is crucial to thoroughly review and understand the specifics of their contract, particularly clauses related to cancellation policies which can often be areas of contention. Additionally, comparing the pricing and terms offered by Citi with those from top-rated credit card processors is advisable to ensure they are securing the most favorable terms for their business needs.

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Contact Citi Merchant Services

Contact & Customer Support
CEOJane Fraser
Headquarters388-390 Greenwich St, New York City, New York 10013
Toll-Free Customer Support(800) 430-0263
Sales Inquiries(844) 741-4140
Websitecitimerchantservices.clover.com