Merchant 1 Payments Overview
Headquartered in Ontario
Merchant 1 Payments is a merchant account provider headquartered in Concord, Ontario. Founded in 1999, the company provides Canadian merchant accounts as well as payment processing for U.S.-based businesses. The company provides Poynt as a POS solution to its merchants. Merchant 1 Payments is a registered MSP/ISO of the Canadian branch of U.S. Bank National Association and Elavon.
No Relation to Merchant One
It is worth noting that Merchant 1 Payments could potentially be confused with Merchant One in search results; however, these 2 entities are unrelated. The company is located at 2180 Steeles Ave W, Suite 300, Concord, ON L4K 2Z5. The president and CEO of Merchant 1 Payments is Joe Bonavota.
Merchant 1 Payments Review Table of Contents
- Costs & Contract: Merchant 1 Payments offers a month-to-month contract through Elavon with no early termination fees.
- Complaints & Service: Merchant 1 Payments has received fewer than 10 public complaints.
- BBB Rating: Merchant 1 Payments has an “A+” rating and has received 0 complaints in the last 3 years. The company has been accredited by the Better Business Bureau since 2009.
- Sales & Marketing: Merchant 1 Payments appears to hire independently contracted agents but has not received any complaints about its sales team.
- Rates & Fees: How Merchants Got The Best Rates With Merchant 1 Payments
Types of Businesses Served
- Canadian businesses
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Merchant 1 Payments Rates, Fees, and Costs
|Swiped Rate||1.00% - 4.99%|
|Keyed-in Rate||1.00% - 4.99%|
|Virtual Terminal Rate||1.00% - 4.99%|
|Payment Gateway Fee||Undisclosed|
|Early Termination Fee||None|
|PCI Non-Compliance Fee||$20 Per Month|
|PCI Compliance Fee||$9.99 Per Month|
|Equipment Lease Terms||Up To 60 Months (unlocked)|
The standard Merchant 1 Payments contract outlines a month-to-month agreement with no early termination fee, a PCI compliance fee of $9.99 per month, and an optional, non-cancellable equipment lease through Ladco Leasing, one of the worst ranked companies on our website. There is also a PCI non-compliance fee of $20 per month for merchants who fail to maintain compliance.
A company representative has stated that merchants can buy, rent, or lease equipment through Merchant 1. In almost all cases, merchants are advised to buy rather than lease equipment if possible.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, Merchant 1 Payments also dedicates a portion of its website that advertises its virtual terminal and payment gateway services through Elavon as well. However, pricing for the gateway is not disclosed. Merchant reviews report rates as high as 3.5% plus $0.30 along with a gateway fee of up to $25 per month. One complaint references a setup fee of nearly $500 dollars, though it is more than 5 years old and no other available public complaints reference the fee in the time since it was posted. However, additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.
No Pricing Complaints
Overall, there are no complaints that mention excessive fees or hidden clauses in the standard Merchant 1 Payments contract. We will therefore assume that most of the company’s merchants are satisfied with the service they receive. In our assessment, the company’s contract terms are competitive with some of the cheapest merchant accounts.Are you happy with your Merchant 1 Payments fees? Tell us about them before your go!
Merchant 1 Payments Complaints & Customer Reviews
|Total Online Complaints||<10|
|Live Customer Support||Yes|
|Most Common Complaint||N/A|
Low Complaint Total
We are currently unable to locate any Merchant 1 Payments complaints that accuse the company of being a ripoff or a scam. In fact, there are only two reviews about the company across all consumer protection websites at this time. This complaint, posted in January 2014, vaguely describes a situation in which the merchant “had simply signed up and started receiving bills for online transactions that never happened!” This appears to be an isolated incident. It’s also unclear whether this complainant is referring to an external agent of Merchant 1 Payments or a representative from a different company. The second complaint is addressed later in this review.
Merchant 1 Payments Lawsuits
We have not found any outstanding class-action lawsuits or FTC complaints filed against Merchant 1 Payments. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
Merchant 1 Payment Customer Support Options
The lack of any other such complaints indicates that the company generally employs capable customer service reps and discloses all important contract terms. The Merchant 1 website lists dedicated phone support lines that are available 24/7. The company’s customer service offerings are generally on par with the top-rated payment processors for customer support.
Merchant 1 Payments BBB Rating Summary
Key Points - BBB
|Product & Service Complaints||0|
|Billing & Collection Complaints||0|
|Advertising & Sales Complaints||0|
|Guarantee & Warranty Complaints||0|
Clean Complaint Record
Merchant 1 Payments has been an accredited business with the Better Business Bureau since 2009. As of this review, the company currently holds an “A+” rating with the BBB and has had 0 complaints filed against it in the last 36 months. It has also not had any informal reviews posted to its profile.
An “A” Performance
Given the fact that Merchant 1 Payments has received 0 complaints, we agree with the BBB’s score in this case. For more information on how we factor BBB grades into our overall ratings, please see our rating criteria.
Truth In Marketing & Advertising
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||Yes|
Inside and Outside Sales Agents
Merchant 1 Payments appears to employ both full-time, W2-employed inside sales agents and paid-by-commission external sales agents to market its services. The latter practice is often responsible for merchant frustrations in this industry due to the difficulty of monitoring these agents’ behavior, but in this case we are only able to locate two negative Merchant 1 Payments reviews that mention problems with the company’s sales team. One complaint does not provide specific details of what transpired and is therefore of little use (as mentioned above). The other describes frustration with the company’s insistence on scheduling a phone call to receive a rate quote.
No Red Flags
Merchant 1 Payments does not appear to engage in any deceptive advertising strategies in its official materials. If you suspect that the company is charging you undisclosed fees, we recommend seeking a third-party statement audit to eliminate hidden costs.
About Phillip Parker
Thank you for reading my review. I hope that it has helped you with your research.
Why I'm Qualified to Write About Credit Card Processing and Merchant Account Services
I'm a former credit card processing sales director who left the industry because I didn't like how it takes advantage of small business owners. It feeds like a leech on businesses and thrives by imposing fees that are nearly impossible to comprehend. Seeing a need for change, I left and built this website help business owners better understand the industry, research merchant services providers, and get refunds of excessive merchant account fees. My experience of working "behind the curtain" in the industry, and using that knowledge for good, has resulted in millions of dollars returned to hard-working small business owners as well as enterprise-level companies.
From the time that I starting working in the merchant services industry to when I left to create this website, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this "insider" knowledge to myself. To lift the fog, I've reviewed hundreds of companies, read thousands of user reviews, and learned the pricing tricks of every provider. If you have questions about credit card processing, you can find the answers on this website.