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In this article about Swipe4Free, a merchant account provider known for its cash discount pricing, we will provide a clear overview of their services. We will discuss their rates, fees, contract terms, and the dual pricing model that sets separate prices for cash and card transactions. We will examine their POS systems, cash payment incentives, and support for e-commerce and contactless payments. We will assess the quality of Swipe4Free’s customer support, address common complaints from users, and consider the company’s legal history and customer feedback. In addition, we will review their marketing strategies and employee experiences. The goal is to offer a balanced look at Swipe4Free’s services—highlighting both strengths and drawbacks—to help businesses decide whether their payment processing choices are a good fit.
About Swipe4Free
Swipe4Free Homepage
Launched in May 2017, Swipe4Free is a merchant account provider that specializes in cash discount pricing. The company is a DBA of Merchant Industry, a New York-based credit card processor that has been in business since 2007. Like other cash discount payment processors, Swipe4Free enables merchants to pass the costs of accepting credit cards directly to customers by adding a 4% per-transaction surcharge to all non-cash purchases. The company claims that this eliminates credit card processing fees for its merchants, which would make it one of the cheapest merchant account providers in the industry. Swipe4Free is a reseller of TSYS and First Data (now Fiserv) products.
Products & Merchant Services
Payment Processing
Swipe4Free processes all major debit and credit cards for various business types. Their services include EMV card readers and swipers, POS solutions, virtual terminals and payment gateways, and mobile payment options.
Dual Pricing and Surcharging Platform
Swipe4Free offers a dual pricing platform that allows businesses to display prices in both cash and card amounts. For credit card transactions, a surcharge fee of up to 3% can be applied, shown as a separate line item.
POS Systems
Swipe4Free provides point-of-sale (POS) systems and terminals that support payments in various settings, including mobile transactions.
Cash Payment Incentives
To encourage cash transactions, Swipe4Free offers lower prices for customers who pay with cash. This approach helps businesses avoid card fees and reduces the costs associated with card processing.
E-commerce and Contactless Solutions
Swipe4Free offers e-commerce solutions, integrating a convenience fee at checkout compatible with platforms like WooCommerce. They also provide contactless payment options and equipment for businesses.
Customer Reviews & Sentiment
Swipe4Free Customer Feedback Overview
Our exploration reveals only a handful of negative Swipe4Free reviews, a small portion of which label the company as a potential scam or ripoff. The complaints that are available typically mention higher-than-anticipated rates, non-disclosed costs associated with equipment leases, challenges with customer service, and difficulties in terminating services. These issues mirror those found in a larger volume of complaints against Merchant Industry. Additionally, while there exists a significant number of unverified positive Swipe4Free testimonials online, these have not been considered in our assessment due to uncertainty regarding their authenticity. We encourage you to share your own Swipe4Free review or customer complaints to contribute to a clearer picture of the company’s performance.
Assessing Swipe4Free’s Customer Support
Swipe4Free prides itself on offering comprehensive support through direct phone lines, email, and live chat, although some services may be facilitated by Merchant Industry. The provision of live support signals the company’s commitment to customer service. However, the volume and nature of complaints received in its early operational phase suggest there’s room for improvement before Swipe4Free can be recognized as a leading merchant account provider for exemplary customer service.
Industry Scores & User Ratings
Online Ratings Summary
PaymentPop
1
BBB Rating
3
PaymentPop Rating for Swipe4Free
Negative Feedback
They scammers charging too much money, bad bad, responding and professional the second you want to cancel the service they will hang up on your face. They will hit you with charges you never hear about it.
Positive Feedback
There are no positive reviews published about Swipe4Free on the PaymentPop website.
Swipe4Free BBB Rating
The Better Business Bureau currently groups Swipe4Free’s BBB profile with Merchant Industry’s profile. The combined organization has an “A+” rating and has been BBB-accredited since May 2015. It has received 30 complaints in the past 36 months. Swipe4Free has a 3 out of 5 star rating based on 4 user reviews on the Better Business Bureau website.
What Merchants Say
Swipe4Free has also received 4 informal reviews from clients, 1 of which was positive and 3 of which were negative in tone. The most recent negative review cites a large amount in unexpected fees:
So when I signed a lease with ******(bad mistake) in 2015 they signed me up with this company. I used the machine one a week at the farmers market. We had months were we didn’t use the machine because of it being winter. They never once said anything about inactivity fees. They would never do anything about it. Our contract ended in March with ******(kept giving us the run around about the equipment) Finally in august I was able to close clover down. I assumed that since I signed with both companies at one time they would cancel both at one time. MY BAD! I haven’t used this machine for several months but yet get billed $125.00 (inactivity fees )each month. I found out that I had to cancel with this company too. I called and was told someone would call me back. I have yet to here from them. This has cost me around $900.00 so far. I guess the next thing to do is cancel my bank account. I will never work with this company,,,,
Situations like this make the need for excellent customer service an essential component of merchant account providers dedicated to serving them.
A “B” Performance Overall
The fact that Swipe4Free shares its BBB profile with Merchant Industry makes it difficult to separate complaints about the two businesses. However, this may not be necessary because they both share personnel and a location. We therefore feel that the BBB’s rating should be adjusted to a “B” given Swipe4Free’s complaint total.
Processing Rates & Fees
Swipe4Free’s Full Pricing
According to the latest available information, the standard Swipe4Free contract entails an unspecified term agreement with a monthly fee of $49.99, an annual PCI compliance fee of $119.99, and a monthly PCI non-compliance fee of $19.95. Additionally, the contract includes an early termination fee of $750 or liquidated damages, whichever is higher. Clients have reported that the company offers credit card terminal leases at $30 per month for non-cancellable four-year terms. Detailed per-transaction pricing by Swipe4Free will be discussed further below.
Swipe4Free’s Cancellation Policy
The termination fee imposed by Swipe4Free is notably substantial within the industry, potentially exceeding merchants’ expectations. The merchant agreement explicitly outlines the calculation of this fee, similar to practices observed in the industry. Some business owners have expressed dissatisfaction with such fees. If you intend to terminate your contract with Swipe4Free, we suggest exploring methods to cancel your merchant account without incurring fees.
Swipe4Free’s Per-Transaction Pricing
Swipe4Free’s pricing model has been legally permissible for at least a decade, garnering renewed attention due to innovative marketing approaches by merchant account providers. Essentially, Swipe4Free equips its clients with credit card processing equipment that automatically applies a 4% “service fee” to all items sold in the business. This fee is transparently displayed on receipts. Transactions paid with cash are exempt from this fee. By implementing this model, Swipe4Free replaces conventional per-transaction fees, potentially saving businesses the entirety of such fees.
Assessment of Pros and Cons
While transferring costs to customers may initially seem advantageous in bypassing transaction fees, Swipe4Free’s PCI compliance costs, termination fee, and equipment leasing policies are on par with or below industry standards. However, transitioning to a cash-discount plan necessitates significant operational adjustments, potentially alienating customers accustomed to fee-free purchases. This shift should be approached cautiously, considering potential savings and customer retention. The substantial termination fee restricts flexibility in experimenting with pricing models. Hence, there are valid reasons to approach Swipe4Free’s contract terms with caution. We recommend exploring our curated list of the top merchant accounts available.
Swipe4Free offers numerous POS and terminal leases
Lawsuits & Legal History
To date, no class-action lawsuits or Federal Trade Commission (FTC) complaints have been identified against Swipe4Free. For clients seeking resolutions outside of court, reporting issues to relevant regulatory bodies is recommended as a constructive step.
Employee Reviews & Sales Practices
Outside Sales Team
Like Merchant Industry, Swipe4Free utilizes in-house telephone appointment setters and independently contracted outside sales agents to sell its services. This approach has generated a large number of sales complaints for Merchant Industry, with clients reporting unfulfilled promises, misrepresentation of the agent’s identity, and undisclosed fees. However, we have found only a few Swipe4Free reviews that specifically mention the company’s sales team at this time. These reports describe higher-than-expected Swipe4Free fees and undisclosed costs. Swipe4Free’s low sales complaint total may simply be due to the short amount of time that the company has been active so far. This compares favorably to our list of best credit card processors.
Swipe4Free Marketing Tactics
The Swipe4Free website goes to great lengths to explain how its cash discount pricing plan works, but it fails to highlight other details of its pricing. For instance, a calculator on the Swipe4Free website shows businesses how much they could save by replacing the current total amount of their monthly merchant statement with Swipe4Free’s $49.99 monthly fee and no other costs. However, this estimate does not factor in the company’s $119.99 annual PCI compliance fee, inactivity fees, equipment lease costs, or the company’s $0.10 per transaction fee for EBT payments.
A “B” For Now
Swipe4Free’s affiliation with Merchant Industry, its organizational approach to sales, and the advertising language on its website are enough to lower its grade slightly in this section. However, the lack of client complaints that directly mention the company’s sales team has kept it at a “B” rating for now. If you suspect that Swipe4Free is charging you undisclosed fees, we recommend seeking a free third-party statement audit.
Swipe4Free Competitors
Compare Swipe4Free to competitors that earned top marks.
Swipe4Free is currently positioned as an average credit card processing provider based on our comprehensive rating criteria. The company’s distinctive cash discount pricing model offers a potentially significant cost-saving opportunity for merchants, which could indeed be a major advantage. However, it’s essential to note that there are additional costs specified in its contract that may not compete as favorably with those of its industry peers. This factor necessitates a careful consideration by businesses about the potential complexities and customer reception of implementing a surcharging model versus the expected financial benefits.
Before committing to a potentially binding agreement, we strongly recommend exploring alternatives that may offer more flexible terms. Specifically, investigating whether rock-bottom pricing is attainable on a month-to-month basis from a top-rated merchant account provider could provide more favorable conditions without the burden of a hefty termination fee. This approach not only secures financial flexibility but also guards against unforeseen costs, ensuring that businesses can optimize their payment solutions in alignment with their operational needs and customer base preferences. As always, thorough scrutiny of contract details and comparative analysis with leading providers in the payment processing landscape is advisable before finalizing any contractual commitments.
Locations & Ownership
Swipe4Free is a registered ISO of Wells Fargo Bank, N.A., Walnut Creek, California; and of Esquire Bank N.A., Jericho, New York. The company is headquartered at 36-36 33rd Street Suite 206 Long Island City, New York 11106, which is an address that it shares with Merchant Industry. Leo Vartanov is the CEO of Merchant Industry but is not publicly listed as the CEO of Swipe4Free. COO and co-founder of Swipe4Free Chris Benabu is also the CEO of Merchant Industry.
