Host Merchant Services provides credit card processing and merchant services for businesses. This article will review the company's service offerings, pricing structure, contract terms, and customer feedback. We will assess the transparency of their fees, the quality of their customer support, and the overall satisfaction levels reported by their clients. By the end of this article, you will have a clear understanding of what Host Merchant Services offers and whether their services are suitable for your business's payment processing needs.
About Host Merchant Services
Host Merchant Services is a Newark, Delaware-based merchant account provider that serves a variety of business types. Company founder and CEO 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 has become one of the top-rated merchant services providers on CPO.
Host Merchant Services provides an extensive range of payment processing solutions tailored to a variety of business types. Their services support all major debit and credit cards, ensuring businesses can cater to a broad spectrum of customer preferences and payment methods.
EMV Card Readers and Swipers
For businesses requiring secure transaction methods, Host Merchant Services offers EMV card readers and swipers. These devices adhere to the latest security standards, helping protect against fraud and unauthorized transactions.
POS Solutions
The company’s POS (Point of Sale) solutions include popular systems such as Clover, Vital POS, and SwipeSimple. These comprehensive systems enhance the efficiency and accuracy of sales operations, accommodating businesses of all sizes with robust functionality.
Mobile Solutions
Host Merchant Services also caters to businesses on the move with their mobile solutions. These solutions enable payments to be accepted on the go, which is ideal for non-traditional business settings like food trucks, pop-up shops, and mobile service providers.
Payment Gateways and Virtual Terminals
For online transactions, Host Merchant Services provides payment gateways and virtual terminals. These tools facilitate secure and seamless e-commerce transactions, allowing businesses to process payments through their websites efficiently.
e-Commerce Solutions
Their e-commerce solutions integrate tailored payment systems for online retailers, ensuring a smooth and secure checkout experience for customers. This integration is critical for maintaining customer trust and streamlining online sales.
Cash Discounts and Advance Programs
Host Merchant Services offers cash discount and advance programs. These programs provide businesses with financial flexibility and incentives for customers to use cash, potentially reducing processing costs and improving cash flow management.
EBT Processing
Host Merchant Services also supports EBT (Electronic Benefit Transfer) processing. This service enables businesses to accept payments from government-issued benefits cards, which is particularly beneficial for grocery stores and retailers serving diverse customer bases.
Gift and Loyalty Programs
To enhance customer engagement and retention, Host Merchant Services provides gift and loyalty programs. These programs are designed to attract and retain customers by offering incentives and rewards for repeat business, thereby fostering customer loyalty and boosting sales.
Host Merchant Services Customer Reviews
Here's What Their Clients Say
Customer Reviews Summary
Total Online Complaints
<10
Live Customer Support
Yes
Most Common Complaint
N/A
Recent Lawsuits
No
Positive Customer Feedback
Our investigation has found no Host Merchant Services reviews alleging fraudulent activities, indicating the company’s effective in-house customer support. While a few complaints exist regarding issues like merchant account denials or hardware malfunctions, these are relatively minor compared to the overall positive feedback received. A recent comment cited misrepresentation of rates and unexpected equipment leases, but it stands as an isolated incident amidst predominantly positive testimonials.
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 shows 3 complaints in the past 36 months. 1 complaint was resolved to the satisfaction of the merchant. The other 2 complaints were resolved to the dissatisfaction of the client or received no final communication.
An “A” Performance Overall
Considering the low complaint total and resolution rate, we agree with the BBB’s rating at this time.
Host Merchant Services provides interchange-plus pricing without a specified contract length or early cancellation fee. Their contract includes a crossed-out section detailing an early termination fee between $250 and $500, which business owners should ensure is not part of any contract they enter into. There is one reported complaint regarding a termination fee linked to a long-term equipment lease. While Host does not promote equipment leases, it’s prudent for clients to verify that their contract does not implicitly include such terms.
Retail, Restaurant, and E-Commerce Pricing
Host Merchant Services tailors its transaction rates to different business types: retail at interchange plus 0.25% and $0.10, restaurants at interchange plus 0.20% and $0.09, and e-commerce at interchange plus 0.35% and $0.10. They also offer high-risk merchant accounts with pricing based on the specific business type and processing history. It’s beneficial for readers to compare these rates with other top merchant accounts.
Other Fees
Host Merchant Services openly discloses its additional fees, including a $0.20 batch fee, an optional $5.00 monthly gateway fee, a $14.99 monthly fee, and an annual $24.00 fee for 1099 reporting costs.
Few Contract Complaints
With only a single online complaint regarding contract terms, most clients seem content with Host Merchant Services’ agreements. The company’s transparent and competitive terms have earned them an “A” rating in this category.
Host Merchant Services specializes in e-commerce solutions, providing services like shopping carts, payment gateways, and virtual terminals
Host Merchant Services appears to employ both W2-employed sales agents and independently contracted outside salespeople. We have located only one negative Host Merchant Services review that mentions the company’s sales team. This complaint describes higher-than-expected fees and improper disclosure of the company’s termination policy. The absence of any other such complaints indicates that Host’s sales reps are generally forthright and helpful when signing businesses up for services. This compares favorably to our list of the best credit card processors.
Transparent Pricing
Host Merchant Services actively promotes interchange-plus pricing on its website and includes a description of this pricing structure for businesses that may not be familiar with it. Host offers interchange-plus pricing with its mobile merchant accounts and e-commerce merchant accounts in addition to its conventional retail merchant accounts. The company also does not appear to engage in any deceptive advertising strategies in its official materials.
Our Host Merchant Services Review Summary
Our Final Thoughts
Host Merchant Services rates as an exemplary credit card processing provider based on our standards. The company consistently garners positive reviews across consumer protection platforms, reinforcing its reputation for customer satisfaction. Host Merchant Services also favors the interchange-plus pricing model, which enhances transparency and provides businesses with a clearer understanding of their transaction costs.
However, regardless of a company’s high rating, it’s essential for clients to carefully examine their contracts to avoid potential pitfalls or misunderstandings. By scrutinizing the terms and conditions and comparing them to other processors, businesses can ensure they’re receiving the best value while meeting their specific payment processing needs effectively and cost-efficiently.
Location & Ownership
Host Merchant Services is a registered ISO/MSP of Wells Fargo Bank, N.A., Walnut Creek, California. Host Merchant Services is headquartered at 250 Corporate Blvd., Suite L, Newark, Delaware 19702, and they list a second office at 10661 Airport-Pulling Road North, Suite 13, Naples, FL 34109. Lou Honick is the CEO and founder.
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In the late 2000s, as a broke college student struggling to make ends meet, I was contacted by a merchant services company after uploading my resume to a job listings website. This company promised substantial commissions and ongoing residual income for simply persuading businesses to accept credit card payments. It seemed straightforward enough—after all, what business doesn’t need to process credit card payments? Following a phone interview with a persuasive “sales director,” I found myself embarking on what I believed would be an easy job that would significantly boost my bank account with reliable monthly income and large sales commissions. However, the lessons I learned would profoundly change my life in ways I could never have imagined.
After completing my sales training, I hit the ground running, eager to make sales. This broke college student was determined to improve his financial situation! My first attempt at a cold call, with no prior appointment, ended with a burly man in his 50s yelling at me to leave, claiming he had been “totally robbed” by someone like me before. As I hastily exited, puzzled and intimidated by his reaction, I couldn’t help but wonder what he meant. Throughout the day, I encountered similar hostility from other business owners, all expressing disdain for the industry I had been so excited to join that morning. Confused and curious, I decided to shift my approach from selling to listening.
I quickly uncovered that the merchant services sector was riddled with unethical practices, including hidden fees, deceptive marketing, fine-print traps, and much more. It dawned on me that I had nearly been tricked by a dubious company into selling overpriced services under contracts with long-term commitments, all without being fully aware of what I was promoting. Outraged, I resigned from that company but learned that there were indeed ethical credit card processing companies that treated their clients fairly. Over the next four years, I worked for one such company, assisting hundreds of businesses in securing cost-effective processing solutions. Yet, I also met many more who had been misled and trapped in onerous service agreements. Determined to help people steer clear of these unscrupulous providers, I launched this website in my spare time, dedicating myself to researching and sharing my findings on every merchant account provider I could investigate.
Gradually, more and more business owners began to discover my articles. As word spread, search engines started to rank my content highly, amplifying its reach. My efforts were making a difference! Eventually, the website garnered enough traffic to enable me to leave my job and focus on it full-time, a journey that has now spanned over a decade. This path has not been without its challenges; unscrupulous company owners have tried to intimidate and sue me into silence on several occasions. Yet, I have stood firm against each threat. Here I am, continuing to publish reviews and articles, hoping to safeguard others from the pitfalls of the credit card processing industry.
If you believe in my mission and wish to contribute, please share my articles on your websites and social media. Thank you for visiting!
Testimonials & Complaints
How Did Host Merchant Services Treat You?
20 User Reviews
MELINDA WEIGT
We have been using SquareUp for several years, with no complaints. They recently increased their rates to be more competitive. We “shopped” around to ensure we would still be getting a great deal, and found this site very helpful to confirm that! Their site is easy to use, offers reports and easy to upload, etc. They’re changing rates to 2.65% swiped plus 10cents per trans.
imad
I do not recommend this company to anybody. They have very bad customer service. It is the worst company I have ever dealt with.
Stay away from this company! They tricked us into thinking they were cheaper than our previous company but ended up being the same or more expensive. And the representative told us that the equipment was given to us free for use as long as we used them. But could be returned in the future if we decided we no longer wanted to use them. Turns out that was a lie. Cancelling with them might be at no charge if they cant beat another competitor company’s fees, but you have to pay $3600 for equipment! Look over everything before signing! What they say to you does seem too good to be true, so don’t fall for it.
Clyde Washburn
We have have switched our Church to this Merchant Provider and have found their fees, service and courtesy to be exemplary at every level.
Trustee & IT Manager, P.O.M.O G. Orthodox Church
clint
I see nothing about whether they offer virtual terminal or not. Also I don’t see anything about ‘card not present’ fees.
Mike S
I have worked with HMS for a few years now and they have been not only responsive, but they connect with clients on a personal level. Rates are better than any other option we can offer our clients and the application process is painless and fast! Thanks HMS!
Michael Cardascia
I have been using Host Merchant Services at my restaurant for 2 years. The customer support is outstanding and I would highly recommend them to any business.
Chris Bath
I have used host for a few years now and I have to say it is far superior to my previous hosting company. Low rates on processing and the customer service has been outstanding.
CPO
Hi Chris,
Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!
Allison Jones
Host Merchant Services has handled my restaurant’s payment processing for a few years now. I switched over because they were able to lower the rates and fees I was paying to save me quite a bit each month. After processing with them, I realized that other company’s customer service and support cannot compare to theirs. When I need help with something, I give them a call and have a real person on the phone in about 10 seconds. They are a great company to work with, and I’d recommend them to any business owner.
CPO
Hi Allison,
Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!
Ana R
I am trying to get in touch with them and no results . I sent an email and call leaving a message because i am interested to work with them but i do not have response.
michael
Waste of time. Their response to our application was, Unfortunately I could not get this pre approved. Your score does not qualify for further consideration”
What is that based on? We are over a million dollar business and do not qualify. I question the ratings here.
Carina Cooper
Hugo helped me over the phone today.I found him very personable,and professional.He took care of the professional request that I needed in a timely manor.It is refreshing to talk to a pleasant representative who seemed happy to help.Thank you Hugo!
CPO
Hi Carina,
Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!
Terry Gruchacz
I started applying for a merchant account with Host Merchant Services on July 30, 2015. After a reminder on August 11th that I was still interested, the account manager finally sent me an application. I completed it and e-mailed on August 14th. The account manager then asked for more info on the 14th. I collected it and e-mailed it on the 19th. Today, August 28th, I had to remind the account manager I was waiting for a reply or anything saying he had received my e-mail. He got back to me and wrote Host Merchant Services could not take my account because my credit card volume was too low.
The reason I am putting in a complaint is they dragged out the whole procedure when they could have told me on the 14th, when I e-mailed the original application, my volume was too low.
shirley
my credit card machine will not work..it says ‘reversal not cleared’ I know there is a way to fix this but I can’t find it…please help me
Joel Thomas
Great merchants account providers are hard to come by. Finding one that can not only suit your needs but also provide top class support is another.
We’re proud to have partnered with Host Merchant Services. This is a company that places great emphasis on customer service and are always there to help. We recommend HMS to the people we care about the most because there’s no question they’ll deliver!
William Brown
Host Merchant Services are in my opinion the way to accept credit/debit cards if you want the “personal touch” Our business has been associated with many different credit card processors in our 20+ years in business, and HMS has been the only one with a local representative that is consistently available when you need her. They also provide quicker deposits of transactions with lower fees. We unequivocally recommend Host Merchant Services.
Ryan German
Host Merchant Services has first rate unparalled customer service. Local office and direct cell phone numbers for tech support in addition to the standard 24-hr toll free. I especially like their web based processing solution to process cards not present for our phone orders and catering jobs. Rates are very competive (we have saved money processing with Host Merchant) and Host Merchant has also supplied us with wireless terninals we use to process cards at fairs, festivals, offsite and special events. Little extras (like free thermal paper) are a nice bonus.
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MELINDA WEIGT
We have been using SquareUp for several years, with no complaints. They recently increased their rates to be more competitive. We “shopped” around to ensure we would still be getting a great deal, and found this site very helpful to confirm that! Their site is easy to use, offers reports and easy to upload, etc. They’re changing rates to 2.65% swiped plus 10cents per trans.
imad
I do not recommend this company to anybody. They have very bad customer service. It is the worst company I have ever dealt with.
From The Editor
This Post Might Help: Best Merchant Accounts for Great Customer Service
Anne Hoang
Stay away from this company! They tricked us into thinking they were cheaper than our previous company but ended up being the same or more expensive. And the representative told us that the equipment was given to us free for use as long as we used them. But could be returned in the future if we decided we no longer wanted to use them. Turns out that was a lie. Cancelling with them might be at no charge if they cant beat another competitor company’s fees, but you have to pay $3600 for equipment! Look over everything before signing! What they say to you does seem too good to be true, so don’t fall for it.
Clyde Washburn
We have have switched our Church to this Merchant Provider and have found their fees, service and courtesy to be exemplary at every level.
Trustee & IT Manager, P.O.M.O G. Orthodox Church
clint
I see nothing about whether they offer virtual terminal or not. Also I don’t see anything about ‘card not present’ fees.
Mike S
I have worked with HMS for a few years now and they have been not only responsive, but they connect with clients on a personal level. Rates are better than any other option we can offer our clients and the application process is painless and fast! Thanks HMS!
Michael Cardascia
I have been using Host Merchant Services at my restaurant for 2 years. The customer support is outstanding and I would highly recommend them to any business.
Chris Bath
I have used host for a few years now and I have to say it is far superior to my previous hosting company. Low rates on processing and the customer service has been outstanding.
CPO
Hi Chris,
Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!
Allison Jones
Host Merchant Services has handled my restaurant’s payment processing for a few years now. I switched over because they were able to lower the rates and fees I was paying to save me quite a bit each month. After processing with them, I realized that other company’s customer service and support cannot compare to theirs. When I need help with something, I give them a call and have a real person on the phone in about 10 seconds. They are a great company to work with, and I’d recommend them to any business owner.
CPO
Hi Allison,
Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!
Ana R
I am trying to get in touch with them and no results . I sent an email and call leaving a message because i am interested to work with them but i do not have response.
michael
Waste of time. Their response to our application was, Unfortunately I could not get this pre approved. Your score does not qualify for further consideration”
What is that based on? We are over a million dollar business and do not qualify. I question the ratings here.
Carina Cooper
Hugo helped me over the phone today.I found him very personable,and professional.He took care of the professional request that I needed in a timely manor.It is refreshing to talk to a pleasant representative who seemed happy to help.Thank you Hugo!
CPO
Hi Carina,
Please reply to this comment with your business name and location in order to authenticate your testimonial. Thanks!
Terry Gruchacz
I started applying for a merchant account with Host Merchant Services on July 30, 2015. After a reminder on August 11th that I was still interested, the account manager finally sent me an application. I completed it and e-mailed on August 14th. The account manager then asked for more info on the 14th. I collected it and e-mailed it on the 19th. Today, August 28th, I had to remind the account manager I was waiting for a reply or anything saying he had received my e-mail. He got back to me and wrote Host Merchant Services could not take my account because my credit card volume was too low.
The reason I am putting in a complaint is they dragged out the whole procedure when they could have told me on the 14th, when I e-mailed the original application, my volume was too low.
shirley
my credit card machine will not work..it says ‘reversal not cleared’ I know there is a way to fix this but I can’t find it…please help me
Joel Thomas
Great merchants account providers are hard to come by. Finding one that can not only suit your needs but also provide top class support is another.
We’re proud to have partnered with Host Merchant Services. This is a company that places great emphasis on customer service and are always there to help. We recommend HMS to the people we care about the most because there’s no question they’ll deliver!
William Brown
Host Merchant Services are in my opinion the way to accept credit/debit cards if you want the “personal touch” Our business has been associated with many different credit card processors in our 20+ years in business, and HMS has been the only one with a local representative that is consistently available when you need her. They also provide quicker deposits of transactions with lower fees. We unequivocally recommend Host Merchant Services.
Ryan German
Host Merchant Services has first rate unparalled customer service. Local office and direct cell phone numbers for tech support in addition to the standard 24-hr toll free. I especially like their web based processing solution to process cards not present for our phone orders and catering jobs. Rates are very competive (we have saved money processing with Host Merchant) and Host Merchant has also supplied us with wireless terninals we use to process cards at fairs, festivals, offsite and special events. Little extras (like free thermal paper) are a nice bonus.