Agree with our rating?
Leave a comment below
TransAct Merchant Solutions Review
Agree with our rating?
Updated 3/11/2019: TransAct Merchant Solutions has changed its name to Exectras. We will no longer update this review. See our Exectras review for up-to-date information about this company.
TransAct Merchant Solutions (transactnap.com), also known as TransAct National Association Program or TransAct NAP, is a merchant account provider that offers a wide range of business services to participating merchants on an annual membership basis. The company’s function is similar to that of a trade organization, but instead of its merchants having a common field of expertise, they simply participate in the same pool of benefits regardless of business type. TransAct charges a monthly or annual fee in exchange for offering its merchant services—as well as other business products like insurance, health benefits, payroll services, retirement plans, loans, and scholarship programs—at a steep discount. TransAct Merchant Solutions is a registered ISO of Fifth Third Bank, Cincinnati, Ohio, and is headquartered at 5819 Hwy 6 South, Ste 255, Missouri City, Texas 77459. Joseph Cherry is the CEO and president of TransAct Merchant Solutions.
TransAct Merchant Solutions Customer Reviews
Here's What Their Clients Say
|Total Online Complaints||<10|
|Live Customer Support||Yes|
|Most Common Complaint||N/A|
We are unable to locate any negative TransAct Merchant Solutions reviews, which is a positive sign that the company is not a ripoff or a scam. TransAct has been operating since 2010, which is long enough for serious issues to be posted in public forums. TransAct’s National Association Program and no-cost processing are newer initiatives for the company, so it may take some time for merchant feedback about these programs to surface. In general, though, there is no negative feedback to be found about the company. We therefore will keep its rating at an “A” level. TransAct offers phone and email contact information on its website, but it’s unclear whether these particular lines are dedicated to customer support.
TransAct Merchant Solutions Online Ratings
Here's How They Rate Online
|Product & Service Complaints||0|
|Billing & Collection Complaints||0|
|Advertising & Sales Complaints||0|
|Guarantee & Warranty Complaints||0|
TransAct Merchant Solutions currently has an “A+” rating with the Better Business Bureau and has been BBB-accredited since 2011. The company has not received any complaints to its BBB profile in the past three years. It also has not received any informal reviews on its BBB profile, although it should be noted that these reviews are not subject to verification by the BBB. Given TransAct’s clean complaint record, we agree with the BBB’s rating at this time.
TransAct Merchant Solutions Fees, Rates & Costs
A Closer Look at The Contract
|Early Termination Fee||Variable|
|PCI Compliance Fee||Variable|
|Equipment Lease Terms||Variable|
TransAct’s standard contract is atypical for the credit card processing industry due to its pricing method. Instead of offering a merchant account with a per-transaction markup, monthly fees, and annual fees, the company claims to offer its payment processing services without any markup whatsoever. In order to make a profit, the company includes this no-markup processing plan in a suite of services for which it charges a single monthly or annual fee. The company’s pricing schedule (available below) details the monthly and annual membership fees that merchants must pay in order to receive TransAct’s full suite of business services, including no-markup payment processing:
Business owners should note that their costs increase according to the number of employees they have, and that annual memberships offer a 5% discount. The document includes the following note: “Custom NAP enrollment is for 51-249 Employees enrolled. The first 50 Employees are enrolled at Standard NAP fees, all Add’l Employees are enrolled at a discount of $3.00 per Employee.”
Merchants should also note this text: “You cannot cancel this Program during the Program Term for any reason. You do not have a free trial period. Your obligation to make the monthly program fee payments is absolute, unconditional and irrevocable and is not subject to any offset, deduction, defense or counterclaim.” This would seem to suggest that while the company does not specifically charge an early termination fee for its payment processing, it also does not allow merchants to cancel their memberships. In our view, this effectively functions as a retention ETF.
Part of TransAct’s advertised value comes in the form of its suite of business services offered to merchants. These include the following:
- The option to buy pre-negotiated cyber liability, medical billing, and professional liability insurance packages
- HIPAA compliance technology
- The option to pay for Paychex employee benefits management
- The option to pay for payroll management software
- The option to pay for a 401(k) management service
- The option to pay for voluntary employee benefits through Colonial Life
- The option to obtain business loans through BizCash
- A college scholarship program for employees valid “at over 360 participating private colleges & universities”
- The option to buy auto and home insurance from Liberty Mutual
- A prescription drug discount card that can simply be downloaded from TransAct’s website
- A pet drug discount card that can simply be downloaded from TransAct’s website
In total, it appears that nearly all of the benefits associated with a TransAct NAP membership are actually opportunities to pay for a service offered by one of TransAct’s partners, albeit at promised “discounts.”
A charitable interpretation of TransAct’s pricing model is that the company has bundled a large array of business services into one predictably priced, dramatically discounted package. A more critical view is that the company is effectively charging merchants on a monthly and annual basis for access to “no cost” payment processing plus the option to buy a host of services from TransAct’s partners (some of whom could potentially pay TransAct for merchant referrals). In other words, the only real discount offered by TransAct is in the form of “no cost” processing, which, as noted above, is actually paid for by each merchant’s membership fee.
Given that most of TransAct’s benefits come with attached costs of their own, merchants are encouraged to consider TransAct’s no-cost payment processing to be the only real benefit offered by Transact NAP. Merchants should also be aware that even with no markup or additional fees, they will still be paying basic interchange fees on all transactions. Therefore, merchants will need to compare the markup charged by their current processors to TransAct’s membership fees. If the cost of a TransAct NAP membership is less than the markup charged by a merchant’s current processor, then TransAct might save the merchant money. If the cost of a TransAct NAP membership exceeds the markup charged by a merchant’s current processor, then TransAct is unlikely to save the merchant money.
In general, we consider it likely that the cost of a TransAct NAP membership will exceed the monthly or annual markup charged by most merchant account providers. A TransAct NAP membership also comes with a non-cancellable term and does not necessarily provide any additional free services. We have therefore lowered TransAct’s rating to a “B” in this section. See the TransAct National Association Program pricing schedule.
TransAct Merchant Solutions Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Employs Independent Resellers||No|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
TransAct Merchant Solutions appears to primarily market its services through strategic partnerships and an in-house sales team. There is no evidence at this time that the company employs independently contracted sales agents, but it is still possible that it may do so in a limited capacity. Regardless, there are no TransAct NAP complaints that accuse the company’s sales team of deceptive sales tactics.
TransAct Merchant Solutions makes some bold claims about its pricing on its website, stating that it offers merchants “True Interchange Cost and Bank Fees” and promising, “We ARE NOT a processing company.” The website’s merchant services page also features the following image:
These claims are made possible by the company’s unique pricing approach, which charges a single large fee for all of its business services, including merchant services, while removing the line-item charges typically found in the payment processing industry. In other words, TransAct Merchant Solutions is able to offer payment processing “at cost” (with little or no markup) because it obtains its compensation elsewhere in the form of its membership fees for its National Association Program. This means that while its payment processing technically might not include any markups, merchants still pay for their payment processing via their membership fees.
The claim that TransAct Merchant Solutions isn’t a processing company seems highly questionable given the fact that TransAct describes itself as a registered ISO of Fifth Third Bank. However, its other claims are technically true.
Copyright © 2023 CardPaymentOptions.com, Inc. (Digital Fingerprint: 0d38c6720f0d78a701b74d58653af608). Getting paid to re-write this page? Click here to earn a reward.
Any unauthorized copying and reproduction of the content of this page, including all meta data and computer code, is strictly prohibited. While the information in the above article is believed to be accurate as of its publish date, the author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents. The author and publisher shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this material, which is provided “as is,” and without warranties. Any and all use of trade names and/or marks are for identification purposes only and shall not be construed as a claim of affiliation, or otherwise, with CardPaymentOptions.com, Inc. ("CPO") in any form. The sole purpose of the material presented herein is to alert, educate, and inform readers. It is not intended as legal or financial advice. We may earn revenue if you obtain services from a provider that we recommend. See this page to learn how we support our operations.