Is Costco Merchant Services Really Cheaper for Small Businesses?

Costco Merchant Services is the merchant services division of Costco, a well-known wholesale retailer. Costco Merchant Services is actually a reseller of Elavon contracts, and this relationship was indicated clearly on the department’s website. Elavon is part of U.S. Bank’s (U.S. Bancorp’s) payment services division. This means that businesses that sign up for a merchant account through Costco will receive the processing services of Elavon.

Payment Processing

Costco Merchant Services handles processing for all major debit and credit cards across various business types. Their offerings include POS systems, EMV card readers, swipers, mobile processing, and online processing solutions, with Elavon as the actual processor behind these services.

Talech Terminal and POS Solutions

The service includes the Talech Terminal, a smart terminal equipped with a built-in card reader and printer, designed for mobile payments without needing a cell phone. It features an intuitive user interface, inventory and customer tracking, and is Wi-Fi and 4G enabled. Talech also provides POS solutions specifically for retail, restaurants, and service industries, offering features like inventory management, table management, and online booking.

Business Management and Security

Costco Merchant Services aims to improve cash flow with options for receiving funds within hours of batch submission or by the next day. They also provide business management tools, including employee and inventory management, invoicing, and security technologies to protect sensitive data.

Overview of Costco Merchant Services Reviews

Our exploration reveals a modest volume of Costco Merchant Services reviews across consumer protection platforms, with approximately 10 detailed complaints. Historical issues highlight unfavorable rates, service cancellation hurdles, and non-disclosed early termination fees. More recent criticisms shift focus to problems with fund holds, costly equipment leases, and challenges in replacing stolen equipment. It’s noteworthy that many of these grievances are documented under Elavon reviews, indicating potential confusion due to the intertwined operations of Costco and Elavon.

Costco Merchant Services Support Quality

Evaluating customer support quality for Costco Merchant Services is challenging, considering Elavon’s varied performance in addressing complaints and Costco’s extensive reach. Nonetheless, there are no widespread allegations of fraudulent practices or grave misconduct. Customer support, managed by Elavon, is accessible 24/7, catering to the diverse needs of businesses.

Customer Feedback Analysis

Positive Costco Merchant Services reviews often praise the service for its competitive fees and pricing clarity, emphasizing the lack of hidden charges and extra fees as major advantages. Notably, these benefits are generally contingent on holding a Costco membership, considered by some as a valuable investment for the associated savings.

Negative feedback primarily addresses customer service challenges, especially the complexities of liaising between Costco and Elavon, leading to protracted issue resolution and dissatisfaction. Concerns also extend to contractual aspects, like the rigidity and cost of equipment leases and the policies around early termination, which some find to be unexpectedly stringent or costly.

While many users find value in Costco Merchant Services’ cost efficiency and transparency, improvement areas such as streamlined customer support and more favorable contractual terms could significantly elevate the customer experience.

Summary of Customer Sentiment

Customer sentiment towards Costco Merchant Services is divided, with some appreciating the competitive rates and transparency afforded by Costco’s brand, while others voice frustrations over service experiences and the nuances of engaging with a reseller model. This mixed reception highlights the necessity of aligning merchant services with specific business requirements and preferences for customer support, urging prospective clients to weigh these considerations carefully.