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Is PayaCardServices the Right Fit for Your Business?

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Maintained Since: May 23, 2012

We take our role in providing guidance and education regarding the card payment industry very seriously. At our own expense, we have vigorously defended our right to continue expose unethical and predatory practices in the industry, successfully defeating every attempt to silence us. However, fending off frivolous lawsuits is costly. To sustain these efforts, one of the ways we generate revenue is through affiliate partnerships with ethical providers. This means that some of our outgoing links connect business owners to trustworthy, low-cost payment processors, which is what most of our readers seek. We see this revenue channel as a win-win-win for everyone involved. Business owners find good processors, processors get good clients, and we are able to continue to provide a valuable service to the small business community. We also recommend and link to many services that do not compensate us. Our priority is to guide you to the best solutions for your needs, regardless of potential revenue. If you have questions, please feel free to contact us.

All mentions of rate and fee costs are estimations based on publicly available information and client feedback. Actual costs may vary based on a variety of factors unique to your business.

Preferred Card Services
Rating
A
5/5
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Note: As of 2023, it appears that Preferred Card Services is out of business. If you have any information about the company's status, please let us know in the comments below.

Overview

In this review of Preferred Card Services, we take a closer look at the company’s credit card processing solutions. Their offerings include merchant accounts, payment gateways, and point-of-sale systems designed to support a range of businesses. We’ll break down their pricing, contract terms, and overall reliability. We’ll also review customer feedback to highlight common experiences and evaluate their support quality. To give you the full picture, we’ll compare Preferred Card Services with other providers in the industry. By the end, you’ll know whether Preferred Card Services is the right fit for your business.

About Preferred Card Services

Established in 1986, Preferred Card Services is a merchant account provider serving businesses of most types and sizes. The website for Preferred Card Services states that the company is "powered by First Data," which indicates that the company resells First Data (now Fiserv) contracts.

Preferred Card Services payment processing
Some of Preferred Card Services' payment processing solutions

Products & Merchant Services

Payment Processing

Preferred Card Services offers payment processing solutions that handle credit and debit card transactions.

Payment Gateway

Preferred Card Services provides a payment gateway that enables secure online payment processing for e-commerce businesses. This gateway integrates with different shopping carts and platforms.

Mobile Solutions

For businesses that need to accept payments on the go, Preferred Card Services offers mobile payment solutions. These solutions allow transactions to be processed using smartphones or tablets.

e-Check Processing

Preferred Card Services facilitates e-check processing, enabling businesses to accept electronic payments directly from customers’ bank accounts.

Gift Card Programs

Preferred Card Services offers gift card programs that help businesses attract and retain customers. These programs include customizable gift cards that can be branded and used to drive sales and enhance customer loyalty.

Cash Advances

Preferred Card Services provides cash advance options for businesses in need of immediate capital.

PCI Compliance

Preferred Card Services ensures that businesses comply with the Payment Card Industry Data Security Standard (PCI DSS).

Customer Reviews & Sentiment

Low Complaint Total

As noted above, most of Preferred Card Services reviews that accuse it of being a scam or a ripoff appear to have been mistakenly filed following an interaction with an unrelated company. Excluding these complaints, we were only able to locate one Preferred Card Services review, found in the comment section of this review, which expressed frustration with the company’s customer support. In this case, the merchant was charged for PCI non-compliance despite going through what the merchant thought was the appropriate process. If you have your own Preferred Card Services review to make, please do so in the comments below.

Preferred Card Services Lawsuits

We have not found any outstanding class-action lawsuits or FTC complaints filed against Preferred Card Services. Dissatisfied clients who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.

Preferred Card Services Customer Service Options

The aforementioned complaint received a professional rebuttal from a company representative who indicated that the merchant may not have even dealt with Preferred Card Services. It is likely that Preferred Card Services relies on First Data (Fiserv) for its customer support, and this arrangement does not appear to be a source of frustration among clients. Still, the available evidence does not suggest that this credit card processor should qualify as a top-rated processor for customer service at this time.

Industry Scores & User Ratings

Online Ratings Summary
PaymentPop5
BBB RatingN/A

PaymentPop Rating for Preferred Card Services

Negative Feedback

There are no negative reviews published about Preferred Card Services on the PaymentPop website.

Positive Feedback

Preferred Payments didn’t treat us like just another account, they listened to our needs and customized a solution that actually made sense for our business. Their support team is proactive, friendly, and always quick to respond. It’s the kind of service every business owner hopes for.

Preferred Card Services BBB Rating

The Better Business Bureau profile for Preferred Card Services currently has an “A+” rating and has not received BBB accreditation. The company has received 0 any complaints or informal reviews in the past 36 months.

An “A” Rating For Now

Given the company’s nonexistent complaint total, we agree with the BBB’s rating of an “A” but will continue to monitor complaints and reviews that surface. Readers should still be aware that there are good reasons to be skeptical of the BBB’s Preferred Card Services reviews.

Processing Rates & Fees

Potential Contract Terms with First Data (Fiserv)

Preferred Card Services, associated with First Data (Fiserv), potentially offers contracts that may mirror those of First Data (Fiserv). These agreements often span multiple years, including an early termination fee of up to $495, a monthly PCI compliance fee of $19.95, and tiered pricing models. Rates for merchants processing up to $50,000 per month could be as low as 2.69% plus $0.19 for swiped transactions and 3.69% plus $0.19 for keyed-in transactions. For higher volumes, the rates may decrease slightly. It’s also possible for merchants to encounter long-term, non-cancellable equipment leases through First Data Global Leasing.

As a reseller, Preferred Card Services may adjust these standard terms based on the specific needs and profiles of its merchants. It’s crucial for businesses to inquire directly to understand the personalized rate and fee structure offered.

Online Payment Solutions

The company provides virtual terminal and payment gateway services, essential for modern e-commerce and online transactions. While Preferred Card Services is a reseller of Authorize.net, with standard gateway fees around $25 per month and transaction fees of 2.9% plus $0.30, the specific rates and fees applicable to Preferred Card Services’ clients might vary. Merchants should engage in negotiations to ensure favorable terms.

Client Satisfaction and Transparency

The absence of public complaints regarding contract terms or fees suggests that Preferred Card Services may effectively communicate its terms, or its clients find the terms satisfactory. Without concrete complaints or endorsements, it’s challenging to compare Preferred Card Services directly with the market’s most affordable merchant account providers.

Businesses are encouraged to explore our curated selection of the best merchant accounts to find a service that aligns with their needs for transparency, affordability, and service quality. Sharing experiences or details about contracts with Preferred Card Services can provide valuable insights for other businesses navigating their payment processing options.

Employee Reviews & Sales Practices

Independent Sales Team

Preferred Card Services appears to rely on independent resellers to market its services. The use of independent resellers usually causes more complaints than a company’s telemarketing practices, but in the case of Preferred Card Services, this trend seems to be reversed. Nearly all of the available complaints about Preferred Card Services cite persistent and aggressive telemarketing tactics, but they have also received rebuttals from a company representative explaining that Preferred Card Services has nothing to do with the company making these calls. This is a strange case, as it seems that the actions Preferred Card Services has taken to put a halt to this other fraudulent telemarketing operation have not been particularly effective.

Lacking Clear Information

In the absence of any clear information, we are taking Preferred Card Services at its word on this issue and awarding it an “A” in this category. If you suspect that Preferred Card Services is charging you undisclosed fees, however, we recommend seeking an independent statement audit to spot hidden charges.

Preferred Card Services Competitors

Compare Preferred Card Services to competitors that earned top marks.

Host Merchant Services logo
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Bottom Line

Preferred Card Services is currently rated as a better-than-average credit card processing provider based on all available information. The company has maintained a low complaint rate and seems to be distancing itself from the fraudulent telemarketing operation that previously tarnished its reputation. While specific details about its standard contracts remain unavailable at the time of this update, business owners can anticipate services consistent with First Data (now Fiserv).

As always, merchants are advised to conduct a comprehensive review of the company’s services, closely evaluating contract terms and comparing costs to top-rated providers. This thorough approach will help ensure that businesses secure the most advantageous payment processing solution for their needs.

Location & Ownership

Preferred Card Services is headquartered at 301 N 3rd St, Coeur d’Alene, Idaho 83814, and is a registered ISO/MSP of Wells Fargo Bank, N.A. of Walnut Creek, California. The company’s president and CEO is John Mahin.

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