A relative newcomer to the electronic payments industry, Payment Depot (paymentdepot.com) is a merchant account provider founded in August 2013. The company utilizes First Data as its processing network, but its pricing structure is very different from the standard costs associated with First Data. Payment Depot claims that it does not charge an additional percentage above Interchange on each transaction, instead collecting a monthly fee and a flat per-transaction dollar amount to make its profits. Under this pricing model, the company passes along the Interchange fees without any markup to the actual percentages enforced by the card networks (Payment Depot refers to this as “True Cost” in its sales copy).
Payment Depot’s co-founder Danny Choi is also listed as the founder of Best Merchant Rates (bestmerchantrates.com), another merchant services provider that is significantly less transparent about its partnerships and pricing than Payment Depot. The two companies also appear share an address. It is therefore likely that Best Merchant Rates is somehow related to Payment Depot if not the exact same company, and merchants should keep this in mind when evaluating information from either source. Since we cannot verify that the two entities are the same at this time, we will treat them as separate organizations for the purposes of this review. Payment Depot is a registered ISO/MSP of Wells Fargo Bank N.A., Walnut Creek, California, and its Crunchbase profile lists 238 West Chapman Ave., Suite 201, Orange, California 92866 as the company’s headquarters.
- Sales & Marketing: Payment Depot does not appear to hire independent sales representatives and has not received any complaints about its sales practices.
- Costs & Contract: Payment Depot offers a month-to-month contract through First Data with no early termination fee.
- Complaints & Service: Payment Depot has received fewer than 10 public complaints.
- BBB Rating: Payment Depot has an “A+” rating with the Better Business Bureau and has received two complaints in the past two years.
- Rates & Fees: How Merchants Got The Best Rates With Payment Depot