Paperless Transaction Corporation (paperlesstrans.com) 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. 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. Paperless Transaction Corp is a registered ISO/MSP of Wells Fargo Bank, N.A., Walnut Creek, California, and the company is located at 400 E Royal Ln, Suite 201, Irving, Texas 75039. George Reich is listed as the president and CEO of Paperless Transaction Corporation.
- Sales & Marketing: Paperless Transaction Corporation does not engage in misleading sales tactics and has received only a few complaints about its sales team.
- Costs & Contract: Paperless Transaction Corporation offers multiple monthly pricing tiers and charges a per-transaction rate of interchange plus 0.5%.
- Complaints & Service: Paperless Transaction Corporation has received fewer than 10 complaints.
- BBB Rating: Paperless Transaction Corporation has an “A” rating with the Better Business Bureau and has received three complaints in the last three years.
- Rates & Fees: How Merchants Got The Best Rates With Paperless Transaction Corporation
Sales & Marketing
Key Points - Sales & Marketing
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||Yes|
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.
The Paperless Transaction Corporation website currently lists the company’s rates and fees for the public to view. Its rate calculator presents 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. However, a bullet point beneath that table states that “We only charge you what the card-issuing banks charge us (a wholesale rate).” Further down, another bullet point states 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 claims to charge a flat per-transaction rate, to only charge interchange, and to charge interchange plus 0.5%. It seems most probable that the company simply charges interchange plus 0.5%, and that the other quotes are erroneously listed. However, the contradictory nature of this page has the potential to confuse merchants. Merchants are therefore advised to request explicit, complete rate details before evaluating the company’s pricing.
Paperless Transaction Corporation Marketing Example
Costs & Contract
Key Points - Costs & Contract
|Swiped Rate||Interchange + 0.5%|
|Keyed-in Rate||Interchange + 0.5%|
|Early Termination Fee||$250+|
|PCI Compliance Fee||Variable|
|Equipment Lease Terms||Variable|
The standard Paperless Transaction Corporation terms of service (available below) 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 merchant’s application or agreement. However, the company’s website states that it does not charge gateway fees, monthly fees, or monthly minimums. Some merchant complaints also mention a $90 annual fee.
The Paperless Transaction Corporation website lists three tiers of service intended for different sizes of non-profit organizations. The “Early Growth” package costs $500 to set up and $25 per month and includes API integration, a virtual terminal, custom email receipts, a donor portal, a Facebook app, giving pages, and recurring giving. The “Expansion” package costs $1,000 to set up and $50 per month and includes every Early Growth feature plus a mobile card reader, a USB card reader, event registration, mass text alert campaigns, and Text2Donate. The “Executive” package costs $1,500 to set up and $75 per month and includes every Expansion feature plus a mobile app, storefront pages, and integrated email giving campaigns.
As noted above, the early cancellation penalty in the company’s contract contract consists of $250 per merchant 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.” See the Paperless Transaction Corporation Terms and Conditions.
Complaints & Service
Key Points - Complaints & Service
|Total Online Complaints||<10|
|Live Customer Support||Yes|
|Most Common Complaint||N/A|
We are currently able to find three Paperless Transaction Corporation complaints online, one of which openly describes the company as a scam. Multiple complainants report unexpected fees of $90 and $18.74, likely due to recurring fees of some sort. Merchants also report difficulty resolving their issues in a timely fashion through the company’s customer service, a theme echoed on the company’s BBB profile. Although this is a low complaint volume for the company, the specific reference to poor customer service has negatively impacted Paperless Transaction Corporation’s score in this section. In addition, the company’s website does not appear to list a dedicated communication channel for customer support, indicating that this may be outsourced to Chase Paymentech or First Data.
Key Points - BBB
|Product & Service Complaints||0|
|Billing & Collection Complaints||2|
|Advertising & Sales Complaints||1|
|Guarantee & Warranty Complaints||0|
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 (up from an “B+” at the time of our last update) and has had three complaints filed against it in the last 36 months. Two of the complaints stemmed from billing or collection issues, while one was related to an advertising or sales problem. All of the complaints were either resolved to the dissatisfaction of the merchant or did not receive a final response from the merchant. In light of these figures, we agree with the BBB’s rating.
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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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