Phone Swipe Review

Category Breakdown
Sales & Marketing rated B plus
Costs & Contract rated B
Complaints & Service rated B
BBB Rating rated C

Overall Rating

B Credit Card Processor Rating


Phone Swipe ( is a mobile payment processing service provided by North American Bancard. Created in 2007, Phone Swipe allows merchants and individuals to accept credit and debit card payments via their Android phone, iPhone, or iPad using a small card-reading device. Phone Swipe is a registered ISO/MSP of Wells Fargo Bank, N.A. Walnut Creek, California, and is located at 111 North Harbor Blvd. #2, Fullerton, California 92832. The president and CEO of North American Bancard is Marc Gardner.

 Phone Swipe Features Industries Served
  • Debit and credit card processing
  • Free card reader
  • Real-time transaction reporting
  • Custom tip and tax support
  • Emailed receipts
  • Custom inventory
  • Retail
  • Mobile

Related: Find The Best Processor For Your Business Type

Sales & Marketing | B+

Key Points – Sales & Marketing
Uses independent resellers? Yes
Promotes deceptive rate quotes? No
Discloses all important terms? No

Phone Swipe appears to primarily market its service through its website and online promotion. At this time, the company does not appear to employ independent sales agents, although it does allow sales organizations to resell it as their mobile payment solutions. We are currently able to locate a handful of Phone Swipe reviews that describe nondisclosure of fees by the company’s sales team. The Phone Swipe website advertises a swiped transaction fee of 2.69% and a keyed transaction fee of 3.49% plus $0.19, and there are no merchant complaints online that challenge these rate quotes, although vaguely described “hidden fees” have been mentioned in complaints.

The Phone Swipe website advertises a free terminal placement program for merchants who process over $10,000 per month. This $10,000 minimum is only described in the fine print of the page, and there is no mention anywhere of the additional costs listed in this full version of the company’s terminal placement agreement. The full agreement mentions that merchants whose monthly volume falls below $10,000 will be subject to monthly fees, which range from $19 to $99, and all merchants in the program will be charged an annual software license fee of $79. Failure to mention this information on the company’s website, which includes prominently placed signup forms, is a slightly misleading sales tactic in our opinion.

Related: Find The Best Providers By Processor Type

Costs & Contract | B

Key Points – Costs & Contract Terms
Swiped rate: 2.69%
Keyed-in rate: 3.49% + $0.19
Termination fee: None
PCI compliance fee: None
Equipment lease: Variable

Phone Swipe offers a service that is similar to Square and other smartphone-compatible processors. The company advertises no long-term service agreements, early termination feesPCI Compliance fees, or minimum monthly fees, but we have seen complaints alleging that the company actually does charge monthly minimum fees and an early termination fee. All swiped transactions are processed at 2.69%, and all card-not-present transactions are processed at 3.49% plus $0.19. Merchants should determine which type of transaction they are more likely to require when deciding whether to use Phone Swipe.

The majority of the complaints filed against Phone Swipe appear to be the product of the company’s fraud prevention policies. Like Square, Phone Swipe reserves the right to withhold merchant funds at its discretion to establish a cash reserve. Some merchants report surprise upon learning that a large portion of their payments have been withheld without notification, and they further express difficulty resolving the issue in a timely fashion through Phone Swipe’s customer service department. The Phone Swipe website claims that it differentiates itself from Square by having an automated underwriting process (as opposed to Square’s lack of underwriting), but the service still seems to be plagued by the same complaints.

Related: Best Processors For Quickbooks Integration

Complaints & Service | B

Key Points – Complaints & Service
Total complaints: 20+
Live customer support: Yes
Most common complaint: Hidden fees

We are currently able to locate over 20 Phone Swipe complaints on this and other consumer protection websites, some of which accuse the service of being a ripoff or a scam. Common complaints include delayed or withheld funds, poor customer service, undisclosed fees, and problems with the app itself related to a software update. The two most common complaints of delayed payment and poor customer service tend to be mentioned in the same complaints, as merchants report great difficulty reaching representatives and having their funds delivered to them in a timely fashion. The company’s website offers a dedicated phone support number and email address, and these lines appear to be serviced by North American Bancard.

Related: Best iPad & Tablet Point of Sale Services

BBB Report | C*

Key Points – BBB Report
Product/service: 8
Billing/collection: 4
Advertising/sales: 2
Guarantee/warranty: 0
Delivery: 0

As of this update, Phone Swipe is not an accredited business with the Better Business Bureau. The company holds a, “F” rating and has had 14 complaints filed against it in the last 36 months. Eight of these were filed in relation to problems with the company’s product or service, four were due to billing or collection disputes, and two were related to advertising or sales issues. The company resolved 10 complaints successfully, while one complaint was resolved to the dissatisfaction of the merchant and three received no resolution whatsoever. The BBB cites these three unresolved complaints as the primary factors lowering the company’s grade. Given the company’s complaint total and resolution ratio, we have adjusted the BBB’s rating to a “C.”

* Denotes CPO-adjusted BBB score

Related: Best Processors For E-Commerce

Bottom Line

Phone Swipe Review

Rated 3.3 out of 5 Stars
Reviewed by Phillip Parker
Reviewed on 2015-04-17

Due mostly to its affiliation with North American Bancard, Phone Swipe rates as an average merchant services provider according to our rating system. The company’s credit card processing service is showing a low complaint total at this time, and it appears that the most persistent issues are the company’s cash reserve policy and its customer service network.

This review was originally published on 3/11/13 and was last updated on 4/17/15.

Leave your review of Phone Swipe in the comment section below:

Phillip Parker is a former merchant services agent turned small business advocate and the author of "Fee Sweep," which teaches merchants how to dramatically lower their processing rates, eliminate junk fees, and avoid fine-print scams. He founded to help merchants enact positive change in the credit card processing industry. Schedule a Consultation with Phillip

Schedule a Consultation with Phillip

14 Reviews Leave Your Review Below

  1. Be ware. Phone Swipe just allowed a sales company complete access to all my banking information in an attempt to charge me a $30 a month fee to see online reviews and the info that is available to me on my statement. I’ve recommended this company for years, but will get away from them asap since they are giving all my financial info to some con artist who represents that he is part of company. How incredibly dishonest!

  2. Phone Swipe is a SCAM! Stay away!!! They never told me that they charge monthly fees! They just charge me $115! They get more money from my bank than what I make and it’s just ridiculous! I hate how they take advantage of small businesses. SCAM!!

    Are you with Phone Swipe? Learn how to resolve this complaint.

  3. This company is absolutely terrible I would not recommend using this company. They have been holding funds of mine for over one month. Their customer service is terrible and I don’t know what they’re talking about. They keep giving me the runaround and send me all these confusing emails and refused to pay me my money. As of today I still have not received my money

    Are you with Phone Swipe? Learn how to resolve this complaint.

  4. I would strongly suggest that no one uses this company. Their customer service is awful, they charge a monthly maintenance fee, and there’s better lower-cost options out there. Why use this when there’s Square or many others? North American Bancard services low credit people and treats everyone as if they’re in that category. No reason to use this thing.

  5. BEWARE! Whatever you do don’t trust this company. They will tell you one thing to get you to sign up for the service but before you can complete the sign up process they will start drafting fees from your account and hold you liable for the fees. Then when you find that this has happened and try to resolve the isssue they drag their feet to correct it so you are close to the next month I tried for a month to get $128 credit back to my account only for the same thing to occur with a extra $100 they tried to debit after I cancelled the account now another fee. The employees and senior rep are very unprofessional, I honestly feel this place is being operated out of the Ghetto. I would not recommend this company to anyone. They tell me that they will credit my account back if I sent them a voided check after sending me 3 terminals that doesn’t work for the Government contract I have LOL .RUN!!!!!!

  6. My experience with this company has been HORRIBLE. They tell you everything is FREE, but then they DEBIT YOUR BANK ACCOUNT for all of these mysteriously heretofore undisclosed FEES. Total BS ripoff. Go with SQUARE or PayPal Here for your card reading needs.

  7. just got my first E-statement..the daily deduction of 1.68% from each swipe is fine, (as advertised)..the monthly charge of $12.95 for the “free pad” is tolerable, but finding out that my bank account was debited an extra 7% on top of that for a “min volume processing fee” brings my cost to do Swipe to 8.68% or 9.88% if I include monthly fees…we are getting funded next day for swipes before 5pm …so no problems there, but the minimum volume fees…that was not made clear in the signup process..

  8. Been in business for 31 years. They called me. They sent me their card reader. I still never responded. They called ME again and asked why I have not hooked up. The service rep said he would walk me through it. I had a couple of eBay transactions that I could have done with someone else but I said I would give them a try. One was for 462.50 and the other for 675. Both went through, I was told my money would be in my bank account the next day. Nothing.
    Got an email telling me my funds were on hold. I exploded on their answering machine, you never get a live person. I called for 5 days and finally I cancelled both transactions and will never use them again. Next day had a charge of almost $90 on my credit card. So they made $100. On me and made my stomach churn for two weeks. Plus my customers on eBay are not thrilled and I have a 100% feedback rating. THEY SUCK AND SHOULD NOT BE ALLOWED TO OPERATE.

  9. By “no monthly fee” they mean a $10 monthly fee, and by “no miminum monthly charges”, they mean there is a $25 minimum monthly charge. But wait, it gets better, by no long-term commitment and monthly renewals with no cancellation charge, they mean a minimum of one year commitment with a $350 cancellation penalty. I will not do business with Phone Swipe and I would not recommentd to anyone to do business with them.

    1. Phone Swipe is a bad credit card processor to deal with. Huge fees and delayed funding. Reported to the NJ Banking Commission and BBB. They are crooks and buyer beware. Use bank approved merchant services and stay away from Phone Swipe and Square! Both are crooks and should be shut down for stealing from customers.

  10. !!!!AVOID THEM!!!!!

    Wow, what a mess. Stay away!!!! You’ll get hidden fees and they will grow over the course of your contract…”If you don’t have any charges that month, you still have to pay fees”.. “Monthly Basic Service Fee”….. Contract? Phone Swipe has a contract? Yes contract … 3 yr contract. I’ve been able to figure out the following, PhoneSwipe->PayProTec->North American Bancard. To me, it looks like a bunch of shell companies that front for NAB. So, assume your payment terms will be NAB’s… Yes, they are the worst. Read the NAB review on this site. At the time of this writing, they got a D.

  11. Phone Swipe… sounds like a good idea. Wow, what a mess. I have been waiting to receive my money for about 45 days and still no answers and a lot of excuses. I simply changed my bank account and they have not processed the information that I have updated and updated for the third time. The customer service is absolutely the biggest load of @$!&^ I have ever dealt with. If you want to effectively manage your merchant services, DO NOT go with Phone Swipe or North American Bancard. They will, at the least, cause delays in payment and over promise their services. They offer free equipment which is a crock, only if they feel that they will be able to delay or keep your first couple of months transactions to pay for this equipment. Or if they can determine by osmosis that you will be a high volume customer. So, no real value in that, go with the Square or PayPal Here. I can not stress how much this company has aggravated my merchant processing services. JUST WALK ON BY…

  12. Phoneswipe customer service is terrible. They allowed information to be stolen and caused merchant accounts to become compromised. Because of their error I have had funds held for weeks with no notice of the hold. Merchants beware, do not use this company. The square has never given me a bit of trouble.

  13. We have had NOTHING BUT PROBLEMS with PhoneSwipe (they seem to also go by the name “North American Bancard” and possibly since we signed up a month ago. We have not recieved payments, and every time I call in to ask why, I get a different reason. Lately I am told the money will be released, and the next day, still no funds. The time on hold has been up to 30 minutes EVERY TIME I GOT TRANSFERRED last week. Our account rep told me she doesn’t check her voicemail messages, which is why she did not respond to me last week. Today I can’t reach our “rep” as her phone is always busy, and I get the voicemail that I do not believe she listens to. I couldn’t talk to an Operator, since that goes to voicemail when I tried. Last week our rep said the money was to be released, but now I suspect I am in for more excuses. Now, I just hope I can get my money. They claim a one day payment but we are now at 14 days waiting for payment. IN MY OPINION THIS COMPANY MAY BE UNABLE TO DEAL WITH THEIR VOLUME OR IS IN TURMOIL. I WOULD RECOMMEND A DIFFERENT COMPANY FOR PROCESSING, AS THESE PEOPLE DO NOT APPEAR ABLE TO RELIABLY OPERATE, IN MY OPINION.

Leave a Review

Your email address will not be published. Required fields are marked *