Host Merchant Services (hostmerchantservices.com) is a Newark, Delaware-based merchant account provider that serves a variety of business types. Company founder Lou Honick got his start in the web hosting industry by launching, owning, and operating HostMySite.com from 1997 until its acquisition by a private equity firm in 2008. One year later, he founded Host Merchant Services, which is headquartered at 250 Corporate Blvd., Suite L, Newark, Delaware 19702. Host Merchant Services is a registered ISO/MSP of Wells Fargo Bank, N.A., Walnut Creek, California.
Sales & Marketing
Key Points - Sales & Marketing
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
Host Merchant Services appears to employ both W2-employed sales agents and part-time, commission-based positions, and it is unclear at this time whether the latter group consists of independent contractors. We are currently unable to locate any negative reviews of Host Merchant Services that mention the company’s sales team, so it appears that the Host’s sales reps are generally forthright and helpful when signing merchants up for services. Host Merchant Services actively promotes Interchange-plus pricing on its website and includes a description of this pricing structure for merchants who may not be familiar with it. The company also does not appear to engage in any deceptive advertising strategies in its official materials.
Host Merchant Services Marketing Example
Costs & Contract
Key Points - Costs & Contract
|Early Termination Fee||None|
|PCI Compliance Fee||Variable|
|Equipment Lease Terms||Variable|
Host Merchant Services appears to offer an Interchange-plus pricing structure with no term length or early cancellation fee. The section of the agreement that describes the termination process includes a portion that has been struck through; this portion describes an early termination fee ranging from $250 to $500. Merchants are advised to ensure that this portion does not appear in any contract they sign. Host Merchant Services does not seem to disclose any specific figures for other fees or for its markup over interchange, but the company is showing zero complaints online about its contract terms, which indicates that most of its clients are satisfied with their agreements. Overall, these terms appear to be exceptionally transparent and highly competitive, and we therefore award Host Merchant Services an “A+” in this category.
Complaints & Service
Key Points - Complaints & Service
|Total Online Complaints||<10|
|Live Customer Support||Yes|
|Most Common Complaint||N/A|
We are currently unable to locate any Host Merchant Services complaints that accuse the company of being a scam or a ripoff, which indicates that the company’s in-house customer support team does an excellent job of resolving issues before they are taken onto public forums. The company is showing only two complaints on this and other websites, with one related to an unnecessarily protracted signup experience and the other having to do with malfunctioning hardware. The only other reviews we have located have been positive testimonials. In general, Host Merchant Services appears to offer reliable customer support to complement its competitive contract terms.
Key Points - BBB
|Product & Service Complaints||0|
|Billing & Collection Complaints||0|
|Advertising & Sales Complaints||0|
|Guarantee & Warranty Complaints||0|
Host Merchant Services has been an accredited business of the Better Business Bureau since 2011 and currently holds an “A+” rating. The company’s BBB profile is showing zero complaints in the past three years. Host Merchant Services is also not showing any informal reviews posted to its BBB profile, although it should be noted that these reviews are not subject to verification by the BBB. Since it is our philosophy that “A+” ratings should be reserved for companies with zero complaints, we agree with the BBB’s rating at this time.
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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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