Wells Fargo Merchant Services Overview
Payment Processing from a Banking Giant
Wells Fargo Merchant Services (wellsfargo.com/biz/merchant/), a division of Wells Fargo Bank, is one of the top ten largest merchant account providers in the United States. Although Wells Fargo is an Acquiring Bank based in San Francisco, California, it uses First Data as its processor and has been doing so since 1971. It also uses First Data Global Leasing to supply its credit card processing equipment. Timothy Sloan is the CEO of Wells Fargo.
In August 2017, Wells Fargo was named as the defendant in a class-action lawsuit containing the following allegations:
- Defendant takes advantage of [the industry’s inherent] confusion, inducing small, “mom and pop” merchants like Plaintiffs to execute standardized “Merchant Processing Applications” with the promise of straightforward, transparent pricing
- Merchants are asked to sign a “Confirmation Page” to suggest they have read and understood the Program Guide, even though such an effort would take an expert attorney weeks of toil
- Through the Program Guide, Defendant seeks to backtrack from the agreed-upon fees and rates that have actually been reviewed and approved by the merchant and immunize itself from liability
- After merchants sign the contracts and the parties begin to do business, Defendant implements mark-ups by inflating “pass through” costs, increasing agreed-upon fees, and imposing new junk fees
- Even if customers learn they are being ripped off, they are still not able to escape because Defendant imposes massive early termination fees
This lawsuit is significant because it accuses Wells Fargo of practices that are common to the entire credit card processing industry. If it is successful, then a large number of other payment processors will be vulnerable to similar claims in the future. As of this update, the lawsuit is unresolved.
Faster Deposits for Wells Fargo Banking Customers
One of the benefits merchants receive when they have both a checking account and merchant account with Wells Fargo is a quicker deposit of funds from their credit card sales. Typically in the credit card processing industry, merchants who have their checking and merchant account through different providers will experience a delay of around 48 hours to receive deposits. Wells Fargo boasts that funds are usually available the next business day. This rapid deposit schedule is an attractive feature for some merchants, but it shouldn’t be the only focus for merchants who are seeking the best merchant account.
Wells Fargo Merchant Services Review Table of Contents
- Sales & Marketing: Wells Fargo Merchant Services hires independent sales agents and has received a moderate number of complaints about its sales practices.
- Costs & Contract: Wells Fargo Merchant Services offers a three-year contract with an early termination fee of $500 or more.
- Complaints & Service: Wells Fargo Merchant Services has received more than 80 public complaints.
- BBB Rating: Wells Fargo Merchant Services does not have a rating with the Better Business Bureau and has received 3,483 complaints in the past three years.
- Rates & Fees: How Merchants Got The Best Rates With Wells Fargo Merchant Services
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