Dharma Merchant Services Review: Fees, Complaints & Lawsuits

Dharma Merchant Services
Star FullStar FullStar FullStar FullStar Full
Dharma Merchant Services

Agree with our rating?
Tell us about your experience with Dharma Merchant Services in the comment section below.

PhonePhone(866) 615-5157 View Pricing

Before You Switch Processors, Find Out How Other Businesses Got Fee Refunds From Their Current Processor.

Interchange-Plus Pricing For Multiple Industries

Founded in 2007, Dharma Merchant Services is a merchant account provider based in San Francisco, California. A certified green eco-friendly business, the company advertises that it donates a percentage of its net profits to non-profit organizations. Dharma Merchant Services is a low-cost payment processing option for the health care industry, including for hospitals, EMS, rehab clinics, walk-in clinics, occupational therapists, speech therapists, and veterinarians. The company prominently advertises interchange-plus pricing and Level 2 and 3 processing.

Dharma Merchant Services Payment Processing

Dharma Merchant Services has recently partnered with Clover to provide mobile phone processing and tablet-based POS options for merchants. Dharma is offering the Clover Mini station for a purchase price of $499 and a monthly fee of $10, which includes Clover’s PRO software set. The company also resells the flagship Clover POS solution at $1,349 per device, which includes a full cash drawer, built-in fingerprint scanner, and high-speed printer. For mobile EMV payments, Dharma is offering Clover Flex. Dharma’s preferred EMV terminal solution is the FD-130 terminal, which allows EMV processing, Chip-and-PIN acceptance, tip adjustment, and PIN bypass.

Reduced Rates For Restaurants

Dharma also recently lowered its rates for restaurants, bars, and quick-service restaurants. In order to meet the needs of these low-average-ticket businesses, Dharma is now offering a rate of interchange plus 0.15% plus $0.07 to this particular industry type.

Dharma Merchant Services Location and Ownership

Dharma Merchant Services is a registered ISO/MSP with Synovus Bank, Columbus, Georgia. The company itself is headquartered at 3739 Balboa Street #105 San Francisco, CA 94121. Jeff Marcous is the co-founder and CEO of Dharma Merchant Services.

Dharma Merchant Services Review Table of Contents

  • Costs & Contract: Dharma Merchant Services offers a month-to-month contract with interchange-plus pricing and a $25 account closure fee.
  • Complaints & Service: Dharma Merchant Services has received fewer than 10 public complaints.
  • BBB Rating: Dharma Merchant Services has an “A+” rating with the Better Business Bureau and has received 1 complaint in the past 3 years.
  • Sales & Marketing: Dharma Merchant Services does not hire independent sales agents and has not received any complaints about its sales practices.

Should You Trust Dharma Merchant Services?

Lawsuits, Reviews & Complaints

Here's Who We Trust.

Complaint Summary

Total Online Complaints
<10
Live Customer Support
Yes
Most Common Complaint
N/A

Low Complaint Volume

We are currently unable to locate any Dharma Merchant Services complaints that accuse the company of being a ripoff or a scam. There are only a handful of complaints to be found against the company across all consumer protection websites, and most of these complaints either state that their applications were rejected by Dharma or vaguely describe “bad” experiences. Nearly all of the available online reviews about Dharma are positive testimonials.

Dharma Merchant Services Lawsuits and Fines

We have not found any outstanding class-action lawsuits or FTC complaints filed against Dharma Merchant Services. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.

Dharma Merchant Services Customer Service

This generally spotless complaint record is likely a product of the company’s transparent marketing and rate structure, but an effective customer support staff might also play a large role. Dharma’s website provides an email form and designated local and toll-free customer support phone numbers. These channels appear to do a great job of handling issues even when compared with top-rated credit card processors for customer service.

We have located a single Dharma Merchant Services customer service phone number:

(866) 615-5157 – Toll-Free Customer Support

Dharma Merchant Services also offers the following customer support email addresses:

support@dharmams.com – Support
sales@dharmams.com – Sales
info@dharmams.com – Other 

Is the BBB Rating for Dharma Merchant Services Accurate?

Better Business Bureau Profile

See Which Processors Offer No Monthly Fees And No Contracts.

BBB Summary

Product & Service Complaints
1
Billing & Collection Complaints
0
Advertising & Sales Complaints
0
Guarantee & Warranty Complaints
0
Delivery Complaints
0

No BBB Complaints

Dharma Merchant Services has been an accredited business of the Better Business Bureau since 2010 and receives an “A+” rating as of this review. The company has had 1 complaint through the BBB in the past 36 months. The lone complaint was filed in regard to a product or service issue. That complaint was answered by Dharma Merchant Services but has yet to be resolved.

An “A” Performance Overall

Considering Dharma’s clean complaint record, we agree with the BBB’s rating at this time. Merchants should note, however, that there are good reasons to view the BBB’s information with skepticism.

How Expensive is Dharma Merchant Services Service?

Rates, Fees, and Contract Terms

Don't Fall Into An Expensive Trap. See Who The Worst Processors Are.

Cost Summary

Retail Rate
Interchange + 0.15% + $0.07
Restaurant Rate
Interchange + 0.15% + $0.07
Virtual Terminal Rate
Interchange + 0.20% + $0.10
Payment Gateway Fee
None
ACH Processing Fee
$25 Per Month
B2B Processing Fee
$20 Per Month
Recurring Billing Fee
$10 Per Month
Account Updater Fee
$25 Per Month
Account Closure Fee
$25
PCI Compliance Fee
$20
Equipment Lease Terms
Undisclosed

Fully Transparent Rates

Dharma Merchant Services advertises interchange-plus pricing (interchange plus 0.15% plus $0.07 per transaction for in-store payments, interchange plus 0.20% plus $0.10 per transaction for e-commerce payments, and interchange plus 0.15% plus $0.07 for restaurants) and no long-term service agreements. The company claims to charge a $20 monthly fee that includes PCI compliance, and there is a $25 account closure fee upon termination of service.

Virtual Terminal and Payment Gateway Pricing

In addition to its storefront payment processing services, Dharma Merchant Services also dedicates a portion of its website to advertising its virtual terminal and payment gateway services. The company’s service, called MX merchant, charged a rate of interchange plus 0.20% plus $0.10. According to the company, the platform is free to use, meaning no gateway fee is imposed. However, additional fees for other features of the platform exist. The platform also charges ACH processing for $25 per month, B2B processing for $20 per month, recurring billing for $10 per month, and an account updater for $25 per month. Additional rates and fees, including technical support fees, batch fees, and additional transaction rates may apply to these e-commerce services.

Level 2 and Level 3 Processing Services

In addition to its traditional merchant services, Dharma Merchant Services also advertises that it provides Level 2 and Level 3 processing for B2B and B2G transactions. Level 2 and Level 3 processing rely upon different interchange rates than traditional consumer credit transactions. Accommodating those rates requires different payment processing technology from a merchant account provider to transmit the amount of data required to facilitate the transactions. These services are reserved for B2B and B2G purchases.

Ideal For High-Volume Businesses

Dharma is best suited for merchants processing over $10,000 per month, so the company will refer most merchants processing below that to another provider. The company offers especially low rates for enterprise-level processors– specifically offering discounted rates for retail merchants processing over $100,000 per month.

No Contract Complaints

Interchange-plus pricing is the most transparent pricing model available, and the company’s additional fees appear to be well below industry averages. These figures, coupled with the general absence of complaints regarding the standard Dharma Merchant Services contract, merit an “A” rating according to our criteria.

We also encourage merchants to check out our list of the providers of the best merchant accounts.

Does Dharma Merchant Services Use Deceptive Marketing?

Advertising & Sales Strategy

Audit Your Current Statement To Find Its Hidden Fees

Processing statements are intentionally complicated so that they can overcharge you. Get clarity before you switch.

Key Points

Uses Independent Resellers
No
Advertises Deceptive Rates
No
Discloses All Important Terms
Yes

Complete Pricing Disclosure

Dharma Merchant Services appears to utilize its client network, its website, and community outreach efforts to market its services. There is no indication that the company partners with independent sales entities at this time. Additionally, the Dharma Merchant Services website actively promotes Interchange-plus pricing and lists the company’s full fee schedule for anyone to view.

This compares favorably to our list of best credit card processors.

No Red Flags

We cannot find any negative Dharma Merchant Services reviews regarding the company’s sales approach at this time; we therefore award the company an “A” rating in this category. That said, it is always a wise idea to get a professional analysis of your contract with a third-party statement audit.

Does Dharma Merchant Services Deserve Your Business?

Review Summary & Our Thoughts

An Excellent Option For Most Merchants

According to all available information, Dharma Merchant Services rates as an exemplary merchant services provider. The company appears to offer transparent pricing and excellent customer service, and its eco-friendly and non-profit initiatives are sure to be appealing for many merchants. Merchants are encouraged to read their contracts carefully even when dealing with a highly rated payment processor.

Customer & Employee Reviews

What Others Are Saying About Dharma Merchant Services

4 Responses

  • Priya Parmar MD

    This is a terrible company that lies. Not only do they lie, they lie about your payments due. They are not transparent about how they deposit money and when they deposit to your account.
    STAY AWAY

  • SHANNON HIGHFIELD

    I would not recommend Dharma Merchant services as they will say anything to get your account and then when you have any customer charge-back issues they immediately begin holding your funds with no notice or snail mail notice so you have no time to respond! They will send you confirmation that your account is good and then continue holding the funds without explanation. They do not care what effect it has on customers or their business! Very deceptive practices STAY AWAY!


    This post will help: Best Merchant Accounts for Legal Services

    -Phillip

  • Pam Elyea

    We are very happy with Dharma. The company is easy to work with, it doesn’t demand that we learn how their business works, but rather they accommodate us.
    We’re saving lots of money in fees, and I am grateful.

  • Mark Klug

    What a mistake. The worst technical support I have ever dealt with.

Leave a reply

Your email address will not be published. Required fields are marked *

Copyright

Copyright © CardPaymentOptions.com, Inc. (Digital Fingerprint: 0d38c6720f0d78a701b74d58653af608). Getting paid to re-write this page? Click here to earn a reward.

Any unauthorized copying and reproduction of the content of this page, including all meta data and computer code, is strictly prohibited. While the information in the above article is believed to be accurate as of its publish date, the author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents. The author and publisher shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this material, which is provided “as is,” and without warranties. Any and all use of trade names and/or marks are for identification purposes only and shall not be construed as a claim of affiliation, or otherwise, with CardPaymentOptions.com, Inc. ("CPO") in any form. The sole purpose of the material presented herein is to alert, educate, and inform readers. It is not intended as legal or financial advice. We may earn revenue if you obtain services from a provider that we recommend. See this page to learn how we support our operations.

Phillip Parker
Credit Card Processors
2 min read
4 Comments
FTC & Advertising Disclosure
We take great pride in providing one of the only objective an unbiased merchant account review websites on the internet. To support this enormous responsibility we earn some of our revenue through affiliate fees and advertising. These revenues in no way influence our ratings or reviews. Learn more about our monetization policies here.
Show disclosure
Share this post
Our Readers Frequently Choose
helcim logo
star star star star star
Helcim Payments
done
No Monthly or Annual Fees
done
Super Low Processing Rates
done
POS, Mobile, and Online Payments
Sales & Support: (888) 506-7812

Trouble Getting Approved? Try PaymentCloud
paymentcloud logo
star star star star star
PaymentCloud
done
Fast Approval of Most Industries
done
Competitive Rates
done
POS, Mobile, and E-Commerce
Sales & Support: (888) 506-7859

Educational Resources

Before You Switch Processors, Find Out How Other Businesses Got Fee Refunds From Their Current Processor.

Here Are The Processors Who Don't Hide Fees

Some processors have no monthly, no annual fees, no contract, and cheap rates.

Should You Work In Merchant Services?

It's a cut throat industry. Get the truth here.

Quickbooks Merchant Services Too Expensive?

These processors offers Quickbooks integrations and have low rates.

Here's Where To Report Bad Processors

Start by leaving a comment at the end of this review