Gravity Payments (gravitypayments.com) is a small merchant account provider based in Seattle, Washington. The company was founded in 2004. According to a representative of Gravity Payments, the company primarily uses First Data and Cynergy Data as its processors but services the accounts directly. Gravity Payments markets its services nationally, but most of its customers are in the state of Washington. Gravity Payments is a registered ISO/MSP for BMO Harris, N.A., Chicago, Illinois, and Wells Fargo Bank, N.A., Walnut Creek, and is located at 1455 NW Leary Way, Suite 200, Seattle, Washington 98107. Dan Price is the CEO of Gravity Payments.
Sales & Marketing
Key Points - Sales & Marketing
|Employs Independent Resellers||No|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
Gravity Payments appears to hire W2-employed inside and outside sales agents to market its services, although it is possible that the company also employs independent sales reps in some cases. We are currently unable to locate any Gravity Payments merchant complaints that accuse the company’s agents of unethical conduct, but we have found one complaint from a former employee who felt that she did not receive adequate support from her employers. However, this complaint appears to be an isolated instance. It also appears that the company actively markets Interchange Pass-through rate pricing to all of its merchants, which is the most transparent pricing model available. As an additional point in its favor, the company does not appear to engage in deceptive advertising strategies in its official materials.
Gravity Payments Marketing Example
Costs & Contract
Key Points - Costs & Contract
|Early Termination Fee||Variable|
|PCI Compliance Fee||$85 Per Year|
|Equipment Lease Terms||Variable|
According to a company representative, Gravity Payments sets contract length and cancellation fees on a case-by-case basis. We have located one sample contract provided by the company (available here and below) that outlines a three-year agreement through First Data with an early termination fee of $495. This agreement also includes a minimum monthly fee of $35 and flat rate pricing of 4%, and the Gravity Payments website mentions a PCI Compliance program that costs $85 annually. Overall, these contract terms are more expensive than industry averages, but it may be that the merchant in question could not qualify for more competitive terms. At this time, we will take the company’s representative at his word and assume that Gravity Payments offers contract terms that can range from very competitive to very costly depending on a merchant’s business type, size, and time in business. The few available complaints about the company’s contract terms express frustration with its early termination fee. See the Gravity Payments First Data Program Guide.
Complaints & Service
Key Points - Complaints & Service
|Total Online Complaints||<10|
|Live Customer Support||Yes|
|Most Common Complaint||N/A|
We are currently able to locate a handful of negative Gravity Payments reviews, none of which accuse the company of being a scam or a ripoff. Most complainants report fund holds, difficulty cancelling service, frustration with the early termination fee, misleading advertising, or poor employee support. Two of these complaints received identical responses from a company representative within minutes of each other, and it is unknown whether the merchants’ complaints were resolved. The complaints related to fund holds suggest that merchants who expect sudden, large jumps in revenues or who operate in high-risk sectors should avoid Gravity. In general, though, the low complaint volume and lack of a consistent theme lead us to believe that most Gravity Payments clients are satisfied with the service they receive. According to a company representative, Gravity services customer accounts directly rather than outsourcing support to its processors. In keeping with this approach, the company offers a dedicated phone number and email address on its website.
Key Points - BBB
|Product & Service Complaints||0|
|Billing & Collection Complaints||2|
|Advertising & Sales Complaints||0|
|Guarantee & Warranty Complaints||0|
As of this review, the Better Business Bureau is reporting accreditation since 2005 and an “A” rating for Gravity Payments with two complaints filed in the last 36 months. Both of the complaints are related to billing and collection disputes and were either resolved to the dissatisfaction of the merchant or did not receive a final response from the merchant. Given the company’s low complaint volume and resolution ratio, we agree with the BBB’s rating at this time.
About Phillip Parker
Hi, I’m Phillip and I’m disgusted by the state of credit card processing in the U.S. and abroad. I believe that the industry has been overrun by people who engage in fraud and deception in order to steal money from hard working business owners. I’ve made it my mission to expose the companies and individuals who engage in predatory marketing, pricing, and contracts, or just provide terrible service. Along with uncovering the bad guys, I’ve also discovered the good guys who do stand out from the status quo. CPO is a website where you will find ratings and reviews of these companies along with advice on how to save money and which service providers consider. Together we can move the industry in a positive direction. If you would like to help support my work, please checkout “Fee Sweep” my eGuide to getting the lowest possible fees when accepting card payments. If you haven’t heard of “interchange” this advice will save you hundreds, even thousands, in processing fees.Schedule a Consultation with Phillip
Related: Phillip’s Top All-Purpose Merchant Account Picks
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