Go Daddy Merchant Services Review
GoDaddy has relaunched its payment services under the new brand GoDaddy Payments. Please refer to our GoDaddy Payments review for more up-t0-date information.
Go Daddy (godaddy.com) is a privately owned domain registrar that provides web hosting and e-commerce software and services. It is the largest provider of its kind. Based in Scottsdale, Arizona, Go Daddy has been in business since 1997 but has only offered merchant accounts for online businesses since January 2013. The company was originally partnered with First Data and Frontstream to provide merchant accounts, but it then shifted to setting its users up with PayPal Here (mobile processing), Stripe (e-commerce processing), and Dwolla (ACH processing) through its “Get Paid” program. Currently, the company strongly downplays its credit card processing options, with the only mentions of this service on the Go Daddy website found in the support sections for its online shopping cart. Go Daddy’s corporate headquarters are located at 14455 N. Hayden Road #226, Scottsdale, Arizona 85260, and Blake Irving is listed as the company’s CEO. Go Daddy is also often referred to as “GoDaddy” (one word) despite its official name being “Go Daddy.”
- Sales & Marketing: Go Daddy Merchant Services no longer actively promotes its merchant services product.
- Costs & Contract: Go Daddy Merchant Services has offered a one-year contract through First Data as well as simple integrations with PayPal, Stripe, and Authorize.net.
- Complaints & Service: Go Daddy Merchant Services has received fewer than 10 public complaints.
- BBB Rating: Go Daddy has an “A+” rating with the Better Business Bureau and has received 1,157 complaints in the past three years.
- Rates & Fees: How Merchants Got The Best Rates With Go Daddy Merchant Services
Go Daddy Merchant Services Customer Reviews
Here's What Their Clients Say
|Total Online Complaints||<10|
|Live Customer Support||Depends|
|Most Common Complaint||N/A|
We are currently able to locate three Go Daddy Payment Solutions complaints, but these complaints were filed regarding the company’s previous terms through First Data. There are no complaints related to the service merchants receive through Stripe, PayPal Here, and Dwolla. However, it is difficult to determine exactly how many Go Daddy complaints are related to the company’s merchant services program due to Go Daddy’s size and wide array of services. It it likely that merchants who process payments through Go Daddy will receive customer support through the provider they’ve used rather than from Go Daddy. The quality of customer support varies between these three providers.
Go Daddy Merchant Services Online Ratings
Here's How They Rate Online
Online Ratings Summary
|Product & Service Complaints||599|
|Billing & Collection Complaints||413|
|Advertising & Sales Complaints||106|
|Guarantee & Warranty Complaints||6|
Note: We have adjusted this company’s BBB rating according to our own standards. To better understand why we adjust BBB ratings, please see our Rating Criteria.
Go Daddy has been an accredited business of the Better Business Bureau since 2000 and currently shows an overall rating of “A+.” This is a remarkably high score given the fact that the company has had 1,157 complaints filed against it in the last three years. Of these complaints, 599 were due to problems with the product or service, 413 were related to billing or collection issues, 106 had to do with advertising or sales issues, 33 were due to delivery problems, and 6 were guarantee or warranty issues. Go Daddy has successfully resolved 383 of these complaints, while the remaining 774 either were resolved to the dissatisfaction of the complainant or did not receive a final response from the complainant. It is difficult to determine how many of these complaints are related to the company’s merchant services division, but it seems likely that the majority are related to its web hosting services. After taking all of this information into account, we agree with the BBB‘s grade.
Go Daddy Merchant Services Fees, Rates & Costs
A Closer Look at The Contract
|Early Termination Fee||None|
|PCI Compliance Fee||Variable|
|Equipment Lease Terms||Variable|
Go Daddy’s decision to direct merchants to Stripe, PayPal, and Authorize.net means that its pricing will vary depending on the service selected. All three providers offer month-to-month agreements with no early termination fees, but their transaction rates vary. Stripe charges 2.9% plus $0.30 per transaction and PayPal charges 2.7% for swiped transactions and 3.5% plus $0.15 for keyed-in transactions.
It’s worth outlining Go Daddy’s contract terms through First Data just in case the company is still selling these services without promoting them. At the time of our last review, Go Daddy’s merchant accounts through First Data were available in three different service packages: “Standard,” “Specialty,” and “International.” The Standard tier, which was intended for U.S.-based, low-risk online businesses, included a one-year, automatically renewing contract through First Data with a $75 early termination fee (ETF), a $59.99 non-refundable application fee, a monthly service fee of $10, no monthly minimum fee, and what appeared to be a fixed per-transaction fee of 2.5% plus $0.30.
The company’s Specialty merchant account, which was intended for high-risk business types (such as adult products or multi-level marketing operations), included a two-year, automatically renewing agreement through FrontStream Payments with a $250 ETF, a $199.99 non-refundable application fee, a $20 monthly service fee, and transaction fees starting at 2.39% plus $0.30.
Go Daddy’s International merchant account, which it marketed to all non-U.S. business, included an automatically renewing two-year agreement through FrontStream with an ETF of $250, a monthly minimum fee of $35, a monthly service fee of $20, transaction fees starting at 4.95% plus $0.40 (2.99% plus $0.24 for Canada), and a whopping $699.99 non-refundable application fee. In addition to this large one-time cost, the company’s small print added that most International accounts would likely be subject to additional fees ranging from $995 to $1,495. This type of account appeared to be intended for offshore, high-risk processing and was likely to be prohibitively expensive for most merchants to set up.
Overall, these prices did not compare favorably to the company’s online competition. There are no complaints filed regarding the company’s partnerships with Stripe, PayPal Here, and Dwolla, and those three providers are known to offer competitive pricing for the products they provide. We will therefore award the company an “A” rating in this category for the time being.
Go Daddy Merchant Services Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Employs Independent Resellers||No|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
Go Daddy appears to primarily market its merchant services through its website as part of its online business setup process. Because Go Daddy is such a large provider of web hosting, it does not need to employ either an in-house or outside sales team in order to advertise its service to merchants. There are also no complaints online that accuse the company’s sales staff of deceptive advertising practices with regard to Go Daddy’s merchant services, but a few older complaints mention frustration with the fact that the company did not clearly outline its relationship with First Data. At the time of our last update, Go Daddy had removed any explicit rate quotes from its site and was simply directing users to the payment processors that could be integrated into its shopping cart. At this time, there is no page dedicated to advertising the company’s merchant services options, and Go Daddy appears to have shifted its focus away from payment processing for now.
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