Paperless Transaction Corporation Reviews & Complaints

Overall Score
3.5
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Would you recommend them?

Pros: Cons:
Eco-Friendly Approach Security Risks
Streamlines Processing Requires Internet
Reduces Paper Use Technology Dependent
Faster Transactions Learning Curve
Easy Tracking Possible Fees
Secure Payments System Outages

Overview

In this review of Paperless Transaction Corporation, we’ll look into the services and reputation of this merchant account provider, particularly its focus on the faith-based non-profit sector. Originally an ACH processing service for the retail and non-profit sectors, the company has expanded its offerings to include major debit and credit card transactions, ACH processing, mobile payment solutions, online giving solutions, and donor management software.

We’ll cover their rates and fees, review their contract terms, and address common complaints and praises found in industry ratings and user reviews. This article will also examine their marketing tactics, customer support options, and recent legal matters, including a notable Visa & MasterCard lawsuit settlement. Finally, we’ll offer a balanced view of the pros and cons of partnering with Paperless Transaction Corporation, helping you understand their place in the competitive field of merchant services.

Screen Capture of Paperless Transaction Corporations Homepage
Paperless Transaction Corporation Homepage

About Paperless Transaction Corporation

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.

Paperless Transaction Corporation Products and 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.

Paperless Transaction Corporation Customer Reviews

Customer Reviews Summary
Total Online Complaints <10
Live Customer Support Yes
Most Common Complaint N/A
Recent Lawsuits No

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.

Legal Actions and Financial Penalties

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.

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).

Paperless Transaction Corporation Customer Satisfaction Ratings

Online Ratings Summary
BBB Reports 1

Under 10 Complaints

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.

Paperless Transaction Corporation Fees, Rates & Contract

Rates & Fees Summary
Cancellation Penalties Yes
Monthly & Annual Fees Yes
Processing Rates Interchange + 0.5%
Equipment Leasing No

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.

Paperless Transaction Corporation Employee Reviews & Sales Practices

Jobs & Marketing Summary
Uses Independent Resellers Unknown
Telemarketing Yes
Misleading Marketing No
Discloses All Important Terms Yes

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 Review Summary

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.

Contact Paperless Transaction Corporation

Contact & Customer Support
CEO George Reich
Address 550 Reserve Street, Suite 190 - #74 Southlake, TX 76092
Toll-Free Customer Support (877) 869-7115
Fax (877) 218-6130
Website https://www.paperlesstrans.com/

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Reader Comments, Testimonials & Complaints

5 User Reviews

  • Ryan Spaulding

    When you call them, you never get a live person. You always have to leave a voicemail unless you are signing up for new service. If you have a problem, they don’t call you back. I had a major problem that caused over $800 in incorrect charges. They kept bouncing me back and forth with First Data. Neither company would take ownership of the problem and every time I called I was leaving a voicemail and not getting a call back. Incredibly frustrating!!!


    Are you with Paperless Transaction Corporation? Learn how to resolve this complaint.

    • Patrick Moraw

      Hello All,

      I’m posting this review to set the record straight. Hopefully, CPO doesn’t ban my review as it’s being left to clarify some of the inaccuracies of this Reviews page.

      First, the Rates Calculator page was called confusing although the author of this webpage from CPO assessed the pricing structure quite well (so it must not be that confusing). It’s Interchange plus .5%. The comparisons on the Rates Calculator page are there to show that because (since it’s really a mathetical equation & comparison) our pricing is based on Interchange we have displayed a blended average rate so one can compare our service to other card processors’ rates.

      CPO’s assessment of our cancelation policy is also incorrect. There is a $250 IF a merchant account is canceled without an advance written notice of cancelation and there are no other fees assessed.

      There are a few erroneous fees mentioned in our review that are just plain wrong. We simply charge a one-time setup fee for our software, a flat monthly fee, and then Interchange plus .5%. That simple.

      All of the 3 client reviews listed were resolved with the client directly as we don’t resolve issues through 3rd parties like CPO.

      Hopefully, this clarifies our stance on this CPO listing for our company.

      • Phillip CPO

        Responses to Patrick’s statements:

        Regarding the Rates Calculator page, we are stating that it could be confusing to potential customer of your service. Unlike most business owners, we understand how rates are calculated and that is the reason for our correct assessment of your pricing structure. Thank you for also adding your own clarification.

        We are both stating that you have a $250 cancellation fee and you are stating that there are potential arbitrary requirements to avoid it. Often, these policies result in a “ransom-style” retention program wherein a merchant must choose to continue your services or face a cancellation fee. How much advanced notice do you require and why do you require advanced notice? When you say that “there are [also] no other fees assessed,” can you clarify which fees qualify and the threshold to waive the cancellation fee?

        The fees that we state that you potentially charge come either from you own documentation or customer reviews.

        You state that the client complaints filed with CPO have been resolved; however, our readers should be aware that this claim is currently unverified.

  • Lisa Maille

    We are a small nonprofit organization and we tried to use Paperless Transactions for a fundraiser. Before the fundraiser started we saw fees appearing on our bank account from Paperless Transactions and a company they use to process credit cards. We were charged over $650 when we never even processed one credit card through them!! We have tried numerous times to close the account and no one ever answers the phone (and only occasionally by e-mail). We finally received an e-mail stating if we sign a cancellation contract with them they’d be happy to close the account. We did a little research on this and found other nonprofits were being charged $250 to close their accounts!! All of this after their website clearly states that they do not charge monthly fees, gateway fees, or monthly minimums. HA! I recommend you do not put yourself through the headache that this company has caused us and go with someone else!!

  • Debbie Watkis

    I’ve been running myself in circles for the last two weeks trying to determine why nearly $3,000 in credit card donations (we’re a charity)’ have not deposited into our checking account. Paperless Transactions sends me to Chase Payment Tech who state they have no hold on our funds and Paperless Transactions need to release. Apparently First Data would actually deposit the funds into our credit card account but state they have not received funds to deposit on our behalf. Try getting someone from Paperless Transactions on the phone is a joke. They only have voice mail and promise to call back. If you get someone to respond to your email, they don’t include a phone number.

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