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Is Paperless Transaction Corporation the Right Choice for Nonprofits? Full Review

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Maintained Since: March 12, 2013

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Paperless Transaction Corporation
Rating
C
3.5/5
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Pros

Eco-Friendly Approach
Streamlines Processing
Reduces Paper Use

Cons

Security Risks
Requires Internet
Technology Dependent
Learning Curve
Possible Fees

Overview

In this review of Paperless Transaction Corporation, we provide an overview of the company’s payment processing and nonprofit-focused services. The review covers their range of offerings, including credit and debit card processing, ACH transactions, mobile payments, online giving tools, and donor management software. We also look at the types of organizations that may benefit from these services, along with pricing, contract terms, and customer feedback. By the end, you’ll know whether Paperless Transaction Corporation is a good fit for your nonprofit’s payment processing needs.

Services and Contract Terms

We’ll cover Paperless Transaction Corporation’s rates and fees, as well as review their contract terms. This section will also address common complaints and praises from industry ratings and user reviews.

Marketing Tactics and Customer Support

This section will explore the company's marketing tactics and the customer support options they provide to clients. We will also take a look at how effectively they assist their customers.

Legal Matters and Lawsuit Settlement

We will discuss recent legal matters, including a notable settlement involving Visa & MasterCard. This gives insight into the company’s legal standing.

Pros and Cons of Paperless Transaction Corporation

Finally, we’ll offer a balanced view of the pros and cons of partnering with Paperless Transaction Corporation. This will help you understand their position in the competitive field of merchant services.

About Paperless Transaction Corporation

Screen Capture of Paperless Transaction Corporation
Paperless Transaction Corporation Homepage

Paperless Transaction Corporation is a merchant account provider headquartered in Irving, Texas. There is some evidence that the company resells the merchant services of Chase Paymentech and First Data (now Fiserv). Paperless Transaction Corporation was originally founded in 1998 as an ACH processing service for the retail business community and non-profit sectors, but it has since shifted its focus more narrowly to the faith-based non-profit sector.

Products & Merchant Services

Payment Processing

Paperless Transaction Corporation provides payment processing services for most major debit and credit cards, as well as checks. Their focus is on offering payment and fundraising software for churches and non-profits, including tools for payment data reporting and analysis.

ACH Processing

Paperless Transaction Corporation offers ACH (Automated Clearing House) processing, enabling businesses to handle electronic payments directly from bank accounts.

Mobile Payment Solutions

For businesses needing to process payments on the move, Paperless Transaction Corporation provides mobile payment solutions for businesses operating outside traditional retail settings or requiring flexible payment options.

Online Giving Solutions

Paperless Transaction Corporation offers online giving solutions, particularly beneficial for non-profit organizations. This service allows organizations to accept donations online, providing a convenient fundraising method.

Donor Management Software

Paperless Transaction Corporation provides donor management software. This tool helps organizations manage and track their relationships with donors, aiding in fundraising efforts.

Customer Reviews & Sentiment

Minimal Complaint Volume

A limited number of negative reviews regarding Paperless Transaction Corporation have emerged online, with one review directly accusing the company of being a scam. Clients have expressed concerns regarding unexpected fees, notably charges of $90 and $18.74, possibly originating from recurring fees. Challenges in promptly addressing issues through the company’s customer service have been raised by customers, a sentiment mirrored in the Better Business Bureau (BBB) profile. We invite you to share your personal review of Paperless Transaction Corporation in the comments below.

Customer Support Options

Despite the minimal complaint volume, the mention of subpar customer service has influenced the assessment of Paperless Transaction Corporation in this aspect. It is noted that customer service may be outsourced to entities like Chase Paymentech or First Data (Fiserv).

Industry Scores & User Ratings

Online Ratings Summary
BBB RatingN/A
Google Maps4.7
Average Rating4.7

Paperless Transaction Corporation BBB Rating

Paperless Transaction Corporation is not an accredited business with the Better Business Bureau. As of this review, the company has an “A+” rating with the BBB and has had 1 complaint filed against it in the last 36 months.

What Merchants Say

Paperless Transaction Corporation has no current reviews with the BBB. One older complaint did mention continued charges after account cancellation:

We have changed to a different credit card company and we tried numerous times and left messages and tried told this company to stop charging. They continue to charges eventhough we are not using them. They continue to withdraw from our bank onthly.

Clients who find themselves in this situation may benefit from taking the proper steps to cancel their merchant account without paying a fee.

An “A” Rating

In light of the low complaint volume, we agree with the BBB’s rating.

Google Maps Rating for Paperless Transaction Corporation

Paperless Transaction Corporation has as 4.7 out of 5 star rating based on 12 user reviews on Google Maps.

Positive Feedback

We’ve been using Paperless for several years now. SO thankful we found them and switched our processing over to them! We’ve literally saved thousands of dollars (that we’ve able to put back into our ministry) and they have provided fast, friendly service any time we’ve had an issue or we’ve needed something done. Looking for a company that provides all the tools you need to engage your donors? Look no further!

Processing Rates & Fees

Paperless Transaction Corporation Pricing

The standard terms of service with Paperless Transaction Corporation include a three-year agreement through Chase Paymentech with a $250 early termination fee, a variable monthly fee (outlined below), a per-transaction rate of interchange plus 0.5%, a per-transaction ACH fee of $0.35, and a Liquidated Damages fee related to stored value (gift cards) payment processing fees. All other fees, such as PCI compliance fees, monthly minimum fees, and individual rates, are not included in the company’s terms and conditions but can be found in Schedule A of a client’s application or agreement. However, the company’s website states that it does not charge gateway fees, monthly fees, or monthly minimums. Some client complaints also mention a $90 annual fee with Paperless Transaction Corporation.

Three Plans

Paperless Transaction Corporation website lists three tiers of service intended for different sizes of non-profit organizations. The “Starter” package costs $100 for a 90-day license plus 3% of the amount raised plus processing fees and includes all of the company’s features. The “Enterprise” package costs $1,000 to set up and $75 per month plus processing fees for ongoing giving campaigns. The “Premium” package costs $5,000 to set up and $250 per month along with processing fees, and like the “Enterprise” package, it does not have a usage fee.

Early Termination Fees

As noted above, the early cancellation penalty in the Paperless Transaction Corporation contract consists of $250 per business location plus the merchant’s stored value card processing fees from the previous month multiplied by the remainder of the contract. This second amount is not to exceed state limits on fees. While this second amount is unlikely to be very large in most cases, it is a variable and confusing expense that does not appear to be tied to the company’s actual losses in any way. As a result, we have lowered the company’s score in this section to an average rating of “C.” Businesses are more likely to see savings with a top-budget merchant account provider. See the Paperless Transaction Corporation Terms and Conditions.

We also encourage business owners to check out our list of the providers of the best merchant services.

Lawsuits & Legal History

Upon examination, no significant class-action lawsuits or complaints to the Federal Trade Commission (FTC) against Paperless Transaction Corporation have been identified. Clients seeking alternative avenues to address grievances with the company are encouraged to report concerns to the relevant oversight bodies.

Employee Reviews & Sales Practices

Sales Approach

Paperless Transaction Corporation appears to market its services through telemarketing, its client network, and its website. It is unclear at this time whether the company employs independent sales agents. We are currently able to locate three negative Paperless Transaction Corporation reviews that mention undisclosed fees, although whether these fees were altered after a period of service or whether they were initially concealed by a sales agent is not specified.

This does not compare favorably to our list of best credit card processors.

Confusing Pricing Breakdown

The Paperless Transaction Corporation rates and fees are listed on their website for the public to view. Its rate calculator previously presented a slightly confusing breakdown of its per-transaction pricing. In the table featured prominently on the page, the company’s per-transaction rate is listed as 1.75% plus $0.22. At the time of our last update, a bullet point beneath that table stated that “We only charge you what the card-issuing banks charge us (a wholesale rate).” Further down, another bullet point stated that “No matter how the card was processed (Swiped, Keyed, Internet, etc.), we only charge .5% above the Interchange rate to process the transaction.” So on the same page, the company claimed to charge a flat per-transaction rate, to only charge interchange, and to charge interchange plus 0.5%.

Misleading Rate Quote

A company representative has confirmed that the company’s true per-transaction rate is interchange plus 0.5%. The 1.75% plus $0.22 rate reflects Paperless Transaction Corporation’s estimate for the average client’s effective rate based on blended interchange rates. This rate may or may not be close to each merchant’s actual rate, so we consider it unreliable and even slightly misleading. Business owners are advised to not solely rely on this rate calculator or cost comparison when making a decision.

Paperless Transaction Corporation Competitors

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Bottom Line

We have given Paperless Transaction Corporation a three-star rating, as detailed information about its business practices and the specifics of its service offerings remains elusive. While there are few complaints, which might normally indicate a dependable service provider, the lack of clarity about its operational details, including ownership, location, years in operation, and its processing partnerships, introduces a level of uncertainty. This ambiguity hampers our ability to fully endorse Paperless Transaction Corporation at a higher rating.

The obscurity surrounding these critical aspects of the company’s operations makes it challenging to thoroughly evaluate the credibility and reliability of their services. Without more transparent disclosure of these key business elements, a degree of skepticism remains, which prevents a full recommendation. Businesses considering Paperless Transaction Corporation are encouraged to diligently review and compare its pricing and services against those of well-established, top-rated merchant account providers. This careful comparison is essential to ensure not only competitive rates but also a commitment to transparency and proven reliability from their chosen provider. Such diligence is crucial for making informed decisions that best suit the financial and operational needs of their organization.

Read Actual User Reviews

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Contact Paperless Transaction Corporation

Contact & Customer Support
CEOGeorge Reich
Headquarters550 Reserve Street, Suite 190 - #74 Southlake, TX 76092
Toll-Free Customer Support(877) 869-7115
Fax(877) 218-6130
Websitepaperlesstrans.com