Phone Swipe Review

9 Replies

Credit Card Processors
Phoneswipe / Moblized Logo

Phone Swipe Overall Rating

"B+" Credit Card Processor Rating
Last Updated: February 4, 2014
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Phone Swipe Overview

Phoneswipe / Moblized Logo

Phone Swipe Logo

Phone Swipe ( is a mobile processing service provided by North American Bancard. Phone Swipe used to be primarily marketed through Phone, but it seems that Phone Swipe has relaunched as a general mobile payments review website. Created in 2007, Phone Swipe allows merchants and individuals to accept credit and debit card payments via their Android, Apple, or Blackberry phone, using a small card reading device. Phone Swipe also offers referral programs, tax and tip calculation, and more. Phone Swipe is a registered ISO/MSP for HSBC Bank USA, National Association, in Buffalo, New York, and is located at 111 North Harbor Blvd. #2, Fullerton, California 92832.

Phone Swipe Sales & Marketing Tactics | B+

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. 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 2.70% 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, seems to be a slightly misleading sales tactic.

Phone Swipe Costs & Contract Terms | B

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.

Phone Swipe Complaints & Service | B

We are currently able to locate over 10 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.

Phone Swipe BBB Report | A- (CPO Adjusted)

As of this update, Phone Swipe is not an accredited business with the Better Business Bureau (BBB). The company holds a “C+” rating and has had three complaints filed against it in the last 36 months. All three were filed in relation to problems with the company’s product or service, and all but one have been resolved to the complainant’s satisfaction. The BBB cites a lack of sufficient background information on Phone Swipe as the primary factor lowering its score. Given the company’s low complaint total and performance in other categories of this review, we have adjusted the BBB’s rating to an “A-.”

Bottom Line

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 apparatus.

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  1. Kirk Lohse

    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.

  2. Roger jahn

    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..

  3. Ernie Radicchi

    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.

  4. Larry Pfeil

    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. Ron

      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.

  5. Dimitry Borochin

    !!!!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.

  6. Robert L

    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…

  7. RD

    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.

  8. Mark O

    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.

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