Dharma Merchant Services Review: Fees, Complaints & Lawsuits

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.