Merchant One (merchantone.com) is a Miami, Florida-based independent sales arm of United Bank Card that uses First Data (FDIS) as its processor. Merchant One has recently rebranded its logo and revamped its website to make the claim that it serves more than 100,000 merchants. Merchant One provides credit card processing services for nearly any need and has an iPhone app for wireless processing. Joseph Saka is listed as the director of operations at Merchant One. The company should not be confused with One For Merchants, a wholly separate merchant account reseller.
- Sales & Marketing: Merchant One appears to hire independent sales agents and has received a high number of complaints about its sales practices.
- Costs & Contract: Merchant One appears to offer a three-year contract through First Data with an early termination fee of up to $750.
- Complaints & Service: Merchant One has received more than 90 public complaints.
- BBB Rating: Merchant One has an “A+” rating with the Better Business Bureau and has received 33 complaints in the last three years.
- Rates & Fees: How Merchants Got The Best Rates With Merchant One
Sales & Marketing
Key Points - Sales & Marketing
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||Yes|
|Discloses All Important Terms||No|
This reviewer found a few instances of misleading marketing and reports of deceptive sales tactics attributed to Merchant One. In the past, Merchant One has promoted processing rates starting at 0.39% on its homepage as well as through online advertisements we found. Currently, the company’s “About Us” page quotes low rates “starting at 0.29%.” Not only do these quoted rates set unrealistic expectations, but only a tiny fraction (if any) of a merchant’s transactions would qualify for them. The site fails to mention what type of transaction qualifies for this transaction rate or whether merchants will experience additional fees outside of that rate.
In addition to the misleading rate promotion, Merchant One’s website used to state that merchants “will not be subject to any long-term agreement” and “are absolutely free to cancel their services with us at any time—for any reason.” Based on merchant complaints describing cancellation fees ranging from $200-$300, this claim was either a new policy or a complete falsehood. As of this update, these claims appear to have been removed from the Merchant One website, indicating that they might not have been completely truthful. Although the company has removed these specific claims, we are still awarding it a “D” based on the large number of complaints that the company has received and the rate quotes described above.
Merchant One Marketing Example
Costs & Contract
Key Points - Costs & Contract
|Early Termination Fee||$295+|
|PCI Compliance Fee||$100 Per Year|
|Equipment Lease Terms||Variable|
Pricing and fees of a Merchant One merchant account will likely vary by merchant based on business type, processing volume and the agent setting up the account. Merchant One’s standard merchant account contract (available below) can range from three to five years with an early termination fee of $25 per month for the remaining months of the contract term (known as Liquidated Damages), or $295, whichever is greater. Multiple recent complaints mention an early termination fee of $750, indicating that this amount could have gone up. There are several complaints from merchants saying that neither the contract term nor the cancellation fees were disclosed by the agents during the application process, so merchants should be sure to check the document below for the actual text of the ETF (found on page 38). The company also appears to charge an annual PCI Compliance fee of around $100. We will hold the grade to its previous rating and update this section as more information regarding Merchant One’s contract policies becomes available. See the Merchant One Program Guide.
Complaints & Service
Key Points - Complaints & Service
|Total Online Complaints||90+|
|Live Customer Support||Yes|
|Most Common Complaint||Hidden Fees|
It is evident that the dispute resolution process at Merchant One needs improvement, because there are over 70 Merchant One negative reviews across several consumer protection websites. This is a moderate-to-high number of complaints in comparison to other providers of its size. Most problems seem to center around merchants feeling as though they were deceived by the company’s advertising and sales processes. Many also complain of undisclosed fees and undisclosed contract terms during account setup and high cancellation fees. To its credit, Merchant One provides a customer support number for merchants, but it’s unclear whether this line is serviced by Merchant One itself or by First Data.
Key Points - BBB
|Product & Service Complaints||5|
|Billing & Collection Complaints||19|
|Advertising & Sales Complaints||8|
|Guarantee & Warranty Complaints||0|
Note: We have adjusted this company’s BBB rating according to our own standards. To better understand why we adjust BBB ratings, please see our Rating Criteria.
As of this review, the BBB is reporting an “A+” rating for Merchant One despite receiving 33 complaints over the last 36 months, which is down from 48 as of our last update of this review. The types of complaints mirror those found on other complaint websites, with five under problems with service or products, eight filed under advertising and sales issues, and 19 under billing and collection. Of the total complaints, 11 were resolved to the satisfaction of the merchant while the remaining 22 either were resolved to the dissatisfaction of the merchant or did not receive a final response from the merchant. Based on Merchant One’s complaint count, resolution ratio, and business size, we are adjusting the rating of this section to a “B” for the purposes of this review.
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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