Merchant Cooperative Reviews & Complaints
Overview
In this article, we offer a concise yet thorough review of Merchant Cooperative, a versatile merchant account provider catering to retail, restaurant, e-commerce, and mobile businesses. Our focus encompasses their rates and fees, contract terms, customer complaints, and industry ratings. We also delve into their merchant services and credit card processing capabilities, including POS systems for retail and restaurant sectors, as well as internet and web services.
We assess the company's additional services, alternative financing, and web solutions. We'll also cover the pros and cons based on customer feedback and examine the company's legal standing, fees, and rates. Finally, we touch on employee perspectives and the company's sales tactics, providing a comprehensive overview of Merchant Cooperative.
About Merchant Cooperative
Founded in 2005, Merchant Cooperative is a merchant account provider that serves most standard-risk business types. It specifically focuses on retail merchant accounts, restaurant merchant accounts, e-commerce merchant accounts, and mobile merchant accounts. The company shares executive leadership with another company called SaveOnCreditCardProcessing.com and is a reseller of EVO Payments International products and services. The company also operates as a reseller of SignaPay.
Merchant Services & Credit Card Processing
Merchant Cooperative processes most major debit and credit card payments and focuses its marketing efforts on businesses located in South Carolina. The company's services include EBT processing, check conversion and guarantee, electronic gift certificate processing, and leasing of equipment. They support in-store traditional POS systems as well as online virtual terminals and mobile payment. Other equipment available through the company includes thermal printers, pin pads, card swipers, and check scanners.
POS Systems for Retail and Restaurants
The company offers Point-of-Sale (POS) systems specifically designed for retail and restaurant businesses. They claim to have no sign-up fees and offer VIP low rates for these services.
Internet and Web Services
Merchant Cooperative provides a free virtual terminal for internet and web-based transactions. Again, they mention that there are no sign-up fees for this service.
Additional Services
The company also offers services like EBT processing, check conversion and guarantee, electronic gift certificate processing, and leasing of equipment. They focus their marketing efforts mainly on businesses located in South Carolina.
Alternative Financing and Web Solutions
Merchant Cooperative offers a suite of services that include alternative financing options and web solutions, although specific details are not provided.
Location & Ownership
Merchant Cooperative is a registered ISO/MSP of Deutsche Bank Trust Company, New York, New York, and is headquartered at 115 Etiwan Drive, Goose Creek, South Carolina 29445. Christian Maurer is the president of Merchant Cooperative.
Pros: | Cons: |
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Profit-sharing possibilities. | Fees for non-members. |
Lower fees. | Membership requirements. |
Collective bargaining power. | Limited flexibility. |
Tailored solutions. | Possible slower decision-making. |
Member support network. | Varied service quality. |
Merchant Cooperative Customer Reviews
Here's What Their Clients Say
Total Online Complaints | 30+ |
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Live Customer Support | Yes |
Most Common Complaint | Equipment Lease |
Recent Lawsuits | No |
Assessing Complaint Levels
We have identified more than 30 negative reviews about Merchant Cooperative online. Some reviewers label the company as a scam. Notably, the frequency of complaints significantly decreased after 2012. Prior to this decrease, complaints highlighted issues such as non-disclosure by sales representatives, undisclosed fees, subpar customer service, and unethical behavior by sales and management personnel. Few of these complaints have been countered by Merchant Cooperative’s representatives, who occasionally claim these allegations are unfounded. We encourage you to share your experiences with Merchant Cooperative in the comments section below.
Legal and Regulatory Concerns Involving Merchant Cooperative
Our search did not uncover any unresolved class-action lawsuits or Federal Trade Commission (FTC) complaints against Merchant Cooperative. Customers seeking alternatives to legal action for resolving disputes may find it useful to report their issues to relevant regulatory authorities.
Customer Support Evaluation
Considering the existence of both genuine and disputed reviews, Merchant Cooperative’s volume of complaints and their nature negatively impact its customer service rating, leading to a “C” score in this category. Merchant Cooperative provides contact information on its website, but it remains unclear if these lines are dedicated solely to customer support.
Contact Information for Merchant Cooperative Customer Service
- (888) 287-6033 – Toll-Free Customer Service Number
- (843) 884-6884 – Main Office Line
Alternative Support Channels
- Online Support Form
This level of customer support does not meet our criteria for a highly recommended provider known for exceptional customer service.
This updated content aims to offer a more balanced perspective on Merchant Cooperative, focusing on customer reviews, complaints, and customer service options while maintaining the article’s original tone. By including and optimizing key phrases such as “reviews,” “complaints,” “customer reviews,” and “customer service numbers,” this revision enhances SEO effectiveness and encourages reader engagement.
Merchant Cooperative Online Ratings
Here's How They Rate Online
BBB Reports | 1 |
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Under 5 Complaints
Merchant Cooperative currently has an “A+” rating with the Better Business Bureau and has been accredited since September 2016. The company’s profile is currently showing 1 complaint in the last 36 months. The 1 complaint was resolved to the dissatisfaction of the client or did not receive a final communication.
An “A” Performance
Considering Merchant Cooperative’s complaint total and resolution ratio, we agree with the BBB‘s rating.
Merchant Cooperative Fees, Rates & Costs
A Closer Look at The Contract
Cancellation Penalties | Yes |
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Monthly & Annual Fees | Likely |
Equipment Leasing | Yes |
Processing Rates | 1.00% - 4.99% |
Three-Year Contract
Based on complaints received by Merchant Cooperative, the standard contract with the company spans three years and is facilitated through EVO Payments International. It includes an early termination fee ranging from $250 to $395 and entails a long-term, non-cancellable equipment lease typically through MBF Leasing or First Data Global Leasing. Considering the affiliation with EVO Payments International, Merchant Cooperative likely imposes additional charges such as PCI compliance fees, annual fees, statement fees, and monthly minimum fees. However, specific details regarding these fees have not been mentioned in available reviews. If any Merchant Cooperative fees are discovered, we encourage you to share them in the comments below.
Virtual Terminal and Payment Gateway Pricing
In addition to its in-store payment processing services, Merchant Cooperative also offers virtual terminal and payment gateway services. Unfortunately, pricing information for these services is not disclosed on the website. Typically, additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates, are applicable to these e-commerce services.
Long-Term Lease Concerns
While EVO’s standard contract terms are considered average to below average, Merchant Cooperative’s practice of adding costly equipment leases through MBF and First Data Global Leasing has resulted in a lower rating of “C” in this category. Business owners are generally advised against equipment leasing due to the substantial long-term costs involved, often amounting to thousands of dollars for equipment valued at less than $500. Cancelling these lease agreements usually incurs significant fees. This situation is far from ideal, and we recommend exploring alternative options. We encourage businesses to refer to our list of the best merchant services providers for more suitable solutions.
Merchant Cooperative Employee Reviews & Sales Tacitcs
Should You Work For Them?
Uses Independent Resellers | Yes |
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Telemarketing | Yes |
Misleading Marketing | No |
Discloses All Important Terms | No |
Independent Sales Agents
Merchant Cooperative appears to primarily utilize outbound telemarketing and commission-only sales representatives to market its products and services. This combination tends to generate a high number of complaints within the credit card processing industry, and Merchant Cooperative is no exception. We are able to locate numerous Merchant Cooperative reviews that report “slamming” tactics and undisclosed contract terms, particularly with regard to the company’s long-term credit card terminal leases through MBF Leasing and First Data Global Leasing. This does not compare favorably to our list of best credit card processors.
Incomplete Rates Removed
At the time of an earlier Merchant Cooperative review, the Merchant Cooperative rates page advertised rates that “start at 1.09% for Swiped Merchants and 1.79% for Keyed Merchants,” but it also stated that its rates and fees “depend on the type of business you have, whether you are swiping cards or keying cards, which card types you are accepting, and more.” The company was probably referring to “Mid-Qualified” and “Non-Qualified” downgrade fees which are charged on the majority of transactions. Businesses should heed the company’s words and expect an effective Merchant Cooperative rate that is much higher than 1.09% or 1.79%. If you suspect that Merchant Cooperative is charging you undisclosed fees, we recommend seeking an independent, third-party statement audit.
Our Merchant Cooperative Review Summary
Our Final Thoughts
Merchant Cooperative rates as an average credit card processing provider according to our rating criteria. The company has a low-to-moderate complaint rate for its time in business and appears to sell expensive equipment leases alongside its industry-average contract terms through EVO. Merchant Cooperative’s improved BBB rating has raised its grade in this review, but it still needs to show some improvement before it will be considered a top-rated credit card processor.
If you found this article helpful, please share it!
Francina
I must agree… lots of lies & deception!!! Please be aware of their Sales representative. I do intend to seek legal advice about this matter!!!
This post will help: Find and Eliminate Hidden Fees From Your Monthly Bill
-Phillip
leah
switched over 2 years ago, and I am still very happy with my products, and especially the money I have saved.
Janet Fenn
BEWARE of this company. Very deceptive practices!!