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Phone Swipe Review
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Update 3/8/2019: Phone Swipe’s website (phoneswipe.com) now redirects to PayAnywhere. As of May 2018, North American Bancard replaced its Phone Swipe mobile payment processing services with PayAnywhere, stating that the latter would offer the same services and functionality as Phone Swipe. For up-to-date information about this company, see our PayAnywhere Review.
Phone Swipe (phoneswipe.com) 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 magnetic stripe card reader. Phone Swipe does not appear to offer an EMV-compatible reader at this time. 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.
- Sales & Marketing: Phone Swipe does not promote misleading rate quotes on its website, but it has received complaints about undisclosed fees.
- Costs & Contract: Phone Swipe offers a free card swiper and fixed per-transaction pricing, but some merchants complain of undisclosed monthly minimum fees and fees upon termination.
- Complaints & Service: Phone Swipe has received over 20 public complaints.
- BBB Rating: Phone Swipe has an “F” rating with the Better Business Bureau and has received 15 complaints in the past three years.
- Rates & Fees: How Merchants Got The Best Rates With Phone Swipe
Phone Swipe Customer Reviews
Here's What Their Clients Say
|Total Online 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. Delayed payment and poor customer service tend to be mentioned in the same complaints, as merchants report 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.
Phone Swipe Online Ratings
Here's How They Rate Online
|Product & Service Complaints||5|
|Billing & Collection Complaints||8|
|Advertising & Sales Complaints||1|
|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 update, Phone Swipe is not an accredited business with the Better Business Bureau. The company holds an “F” rating and has had 15 complaints filed against it in the last 36 months. Five of these were filed in relation to problems with the company’s product or service, eight were due to billing or collection disputes, one was related to an advertising or sales issue, and one had to do with delivery. The company resolved five complaints successfully, while five complaints either were resolved to the dissatisfaction of the merchant or did not receive a final response from the merchant. The remaining five complaints received no response whatsoever from Phone Swipe. The BBB cites these unaddressed 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 “D.”
Phone Swipe Fees, Rates & Costs
A Closer Look at The Contract
|Early Termination Fee||None|
|PCI Compliance Fee||None|
|Equipment Lease Terms||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 fees, PCI 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%. Merchants should determine which type of transaction they are more likely to process 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.
Phone Swipe Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||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 Phone Swipe as their mobile payment solution. 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%, and there are no merchant complaints online that challenge these rate quotes, although vaguely described “hidden fees” have been mentioned in complaints.
At the time of our previous update, the Phone Swipe website advertised a free terminal placement program for merchants who process over $10,000 per month. This $10,000 minimum was only described in the fine print of the page, and there was 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. As a positive sign for Phone Swipe, the company appears to have removed this promotion from its website.
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