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 that advertises 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.

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

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 Support

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.

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, as well as 1 which was closed in the last 12 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.

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.

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.