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Thinking About Switching to Merchant Cooperative for Your Payment Processing? Read This First

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Maintained Since: December 4, 2015

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All mentions of rate and fee costs are estimations based on publicly available information and client feedback. Actual costs may vary based on a variety of factors unique to your business.

Merchant Cooperative
Rating
C
3.5/5
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Pros

Profit-sharing possibilities
Lower fees
Collective bargaining power

Cons

Undisclosed Fees
Membership requirements
Limited flexibility
Customer service complaints
Varied service quality

Overview

In this review of Merchant Cooperative, we provide a concise yet thorough look at this merchant account provider, which serves retail, restaurant, e-commerce, and mobile businesses. Our analysis covers their rates, fees, contract terms, and customer complaints, along with industry ratings and overall reputation. We examine their credit card processing capabilities and merchant services, including POS systems for retail and restaurant operations, as well as internet and web solutions. The review also highlights additional services such as alternative financing and web development, while considering pros and cons drawn from customer feedback. To give a balanced perspective, we assess the company’s legal history, employee experiences, and sales tactics, offering business owners a clear and comprehensive understanding 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.

Jump Ahead:

Location & Ownership

Merchant Cooperative is a registered ISO/MSP of Deutsche Bank Trust Company, New York, New York. The company is headquartered at 115 Etiwan Drive, Goose Creek, South Carolina 29445, and is led by President Christian Maurer.

Merchant Cooperative payment processing
Merchant Cooperative offers standard payment processing services to businesses in South Carolina

Products & Merchant Services

Payment Processing

Merchant Cooperative handles the processing of most major debit and credit card payments, with a focus on businesses in South Carolina. Their services include EBT processing, check conversion and guarantee, electronic gift certificate processing, and equipment leasing. They support traditional in-store POS systems, online virtual terminals, and mobile payments. The available equipment includes thermal printers, PIN pads, card swipers, and check scanners.

POS Systems for Retail and Restaurants

Merchant Cooperative provides Point-of-Sale (POS) systems tailored for retail and restaurant businesses. They advertise no sign-up fees and offer competitive VIP rates for these services.

Internet and Web Services

The company offers a virtual terminal for internet and web-based transactions at no additional sign-up cost.

Additional Services

Merchant Cooperative also offers EBT processing, check conversion and guarantee, electronic gift certificate processing, and equipment leasing. Their marketing primarily targets businesses in South Carolina.

Alternative Financing and Web Solutions

Merchant Cooperative provides alternative financing options and web solutions, though specific details on these services are limited.

Customer Reviews & Sentiment

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.

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.

Industry Scores & User Ratings

Online Ratings Summary
PaymentPop5
BBB RatingN/A

PaymentPop Rating for Merchant Cooperative

Negative Feedback

There are no negative reviews published about Merchant Cooperative on the PaymentPop website.

Positive Feedback

Switching to Merchant Cooperative was a smart move for our business. They helped us cut down our processing costs and made the transition seamless. Anytime we’ve had a question, their support team is quick to respond and genuinely helpful. It’s been a dependable partnership.

Merchant Cooperative BBB Rating

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.

Processing Rates & Fees

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.

Lawsuits & Legal History

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.

Employee Reviews & Sales Practices

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.

merchant cooperative rates
The current rates page on Merchant Cooperative’s website

Merchant Cooperative Competitors

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Bottom Line

Merchant Cooperative holds a position as an average credit card processing provider. Since its inception, the company has managed a low-to-moderate rate of customer complaints, which is a relatively positive indicator given its operational history. However, it’s important to note that Merchant Cooperative is known for selling costly equipment leases, which can significantly increase the financial burden on businesses. These leases are coupled with contract terms that are typical for the industry, facilitated through their partnership with EVO.

Merchant Cooperative’s standing has been somewhat bolstered by an improvement in its Better Business Bureau (BBB) rating. This elevation in status has positively influenced its grade, reflecting a potential shift towards better business practices and customer satisfaction. Despite this progress, there remains room for further improvement before Merchant Cooperative can be considered among the top-rated credit card processors. Businesses considering this provider should remain vigilant, examining all aspects of the contract and the total cost implications of any equipment leases. Doing so will ensure they are making an informed decision that aligns with their financial capabilities and business needs.

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Contact Merchant Cooperative

Contact & Customer Support
PresidentChristian Maurer
Headquarters115 Etiwan Drive, Goose Creek, South Carolina 29445
Toll-Free Customer Service Number(888) 287-6033
Main Office Line(843) 884-6884
Additional Support ChannelsOnline Contact Form
Websitemerchantcooperative.com