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.
Note: As of 2023, the Clearwater Payments brand has been fully absorbed into DocuPhase. We will have a new profile for DocuPhase shortly. If you have any information about this situation, please email us or let us know in the comments below.
Overview
In this review of Clearwater Payments, we provide a comprehensive look at the company’s credit card processing solutions. We cover their range of services, including point-of-sale (POS) systems, mobile payment options, and e-commerce tools designed to support various business types. The review examines pricing, contract terms, and service features, as well as customer and client feedback to identify common trends and concerns. We also assess the company’s transparency, reliability, and customer support to help you understand its overall performance. By the end of this review, you’ll have a clear sense of whether Clearwater Payments is a suitable choice for your business’s payment processing needs.
About Clearwater Payments
Clearwater Payments appears to provide a variety of payment processing services
Founded in 2015, Clearwater Payments is a payment service provider that was originally owned and operated by former executives of Crescent Processing Company, Park Central Company, Future Payment Technologies, and Talus Pay. In fact, “Clearwater Payments” is a registered trademark of Future Payment Technologies, which could mean that the company is technically structured as a DBA of Future Payment Technologies. There is also a possibility that Clearwater Payments is associated with Merchant Processing Company, a revived version of the Crescent Processing Company website. In April 2021, automation platform DocuPhase purchased Clearwater Payments, making DocuPhase “one of the few industry players to offer end-to-end payments within the A/R and AP automation marketplace.” According to Clearwater CEO David Kesler, “This partnership allows us to not only continue that objective, but also enhances and improves our client experience with the addition of DocuPhase’s process automation and document management platform. This creates a payments hub, managing both receivables and payables. That is a powerful offering for our clients.” As of 2022, it appears that the Clearwater Payments brand has been fully absorbed into DocuPhase.
Clearwater Payments Management
The executive management team of Clearwater Payments included David Kesler (owner and CEO), Chad Smith (member of Board of Directors), Bob Wilson (Executive vice president and chief revenue officer), Bob Stephens (COO), and Sunnye Goldston (compliance officer), all of whom held the same positions at Future Payment Technologies and Talus Pay prior to December 2016. The owners also were executives at Crescent Processing Company and Park Central Company prior to operating Future Payment Technologies. Talus was purchased by a private equity firm prior to 2017, and Talus is now operated by a different ownership group separately from Clearwater Payments. This history has been included in Clearwater Payments’ review because the aforementioned businesses are some of the lowest-rated processors on CPO.
Following this review’s initial publication, a Clearwater Payments representative contacted us to state that Clearwater Payments is not a merchant services company and does not engage in that industry in any way. Rather, the representative stated that Clearwater Payments is focused on providing third-party bill payment services to the utility, insurance, and consumer finance markets. Although billing software may be the company’s primary focus, the Clearwater Payments website currently features the following language:
“Support for all Payments – Accept credit cards, debit cards, and echeck payments made over the phone, through our online interface, via mobile devices/smartphones, or by way of a live agent.”
“Instant Payments and eReceipts – Your customers can make their payments in real-time and instantly receive payment/confirmation receipts via email or text messaging.”
“Simplified Reconciliation – All prior days’ payments are delivered in ONE daily settlement report – no more reconciling from multiple sources.”
At the time of a previous update, the website also included the following language (which has since been removed):
“Multiple Payment Options – Your customers can pay their bills via credit card, debit card or ACH/echeck.”
“With Clearwater POS, accepting walk-in payments is both simple and convenient. Our robust terminal is secure, easy to use and packed with numerous features to help support the needs of your business.”
These are all payment processing services, and a merchant account will be required to accept credit cards through these services. Whether Clearwater Payments provides that merchant account, refers merchants to a Clearwater Payments partner, or requires merchants to obtain their own merchant account separately is not explained on the Clearwater Payments website. Given the fact that Clearwater Payments offers billing tools and its executive leadership team has an extensive background in merchant services, we feel it is in the interest of merchants to review this company on CPO.
Customer Reviews & Sentiment
Clean Complaint Record
Our investigation finds no negative Clearwater Payments reviews at present, nor any indications of fraudulent activity. While the absence of complaints might be partly attributed to Clearwater Payments being a relatively new brand, it could also reflect positive changes implemented by the company’s executive team, evolving from their experiences at Talus.
The Better Business Bureau does not maintain a profile for Clearwater Payments at this time. We therefore will not factor a BBB rating into this review.
Processing Rates & Fees
Variable Contract Terms
Currently, there’s no available information about the standard Clearwater Payments contract. The company doesn’t disclose its pricing or documentation on its website, and there are no Clearwater Payments complaints detailing specific aspects of its contract. Considering its history, it’s probable that Clearwater Payments offers an automatically renewing contract of up to four years, possibly accompanied by a $495 early termination fee and a four-year, non-cancellable equipment lease. However, there’s a possibility that Clearwater has revamped its previous pricing approach to offer something more competitive with the cheapest merchant accounts available.
Virtual Terminal and Payment Gateway Pricing
In addition to its in-store payment processing services, Clearwater Payments also advertises its virtual terminal and payment gateway services on its website. However, pricing details for these services are not disclosed. Additional Clearwater Payments rates and fees, such as gateway fees, technical support fees, batch fees, and additional transaction rates, are typically applicable to these e-commerce services.
No Red Flags
Similar to the previous section of this review, we’ll assign Clearwater Payments an “A” rating due to the absence of any merchant complaints. However, it’s important to note that Clearwater’s executive team has previously scored poorly in this category. If you have specific knowledge regarding the standard Clearwater Payments contract, including any PCI compliance fees or monthly minimum fees, feel free to share it in the comment section below this review.
Clearwater Payments offers e-commerce services including virtual terminals and access to payment gateways
Employee Reviews & Sales Practices
Inside Sales Team
Clearwater Payments appears to market its products via online advertising and referrals, and there is no evidence at this time that the company utilizes independent sales agents or telemarketing. This marks a dramatic divergence from the sales practices at Future Payment Technologies and Talus Payments, which accumulated dozens of complaints about aggressive telemarketing commission-only sales agents. It may be possible that Clearwater also engages in these tactics and simply has yet to attract complaints under its new brand, but we have found no evidence that the company is actively recruiting outside sales agents at this time.
No Misleading Quotes
The Clearwater Payments website does not list any misleading rates or guarantees, and we have not found any online advertisements from Clearwater that use “teaser” rates. We will therefore assign the company an “A” rating for now with a strong advisory that this company’s executive team has previously operated “D” and “F” rated providers in this category. If you suspect that Clearwater Payments is overcharging you, you can double-check your monthly bill with a third-party statement audit.
Clearwater Payments Competitors
Compare Clearwater Payments to competitors that earned top marks.
Clearwater Payments is currently rated as a reliable merchant account provider due to a total absence of merchant feedback. While the history of its management team hints at the potential for the company’s rating to decline, we’ve assigned it an “A” for now, leaving room for the possibility that Clearwater has made a distinct break from its predecessors.
To better assess its reliability and maintain accurate ratings, we encourage merchants to share their experiences with Clearwater Payments below, helping us adjust or maintain the company’s standing as appropriate. Meanwhile, merchants should always compare Clearwater Payments to top-rated merchant services providers before committing to any service. By conducting thorough research and weighing available options, merchants can secure the most suitable, transparent, and valuable payment processing solution for their specific needs.
