Wells Fargo Merchant Services Review

Wells Fargo Merchant Services, 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 (now Fiserv) as its processor and has been doing so since 1971. It also uses First Data Global Leasing to supply its credit card processing equipment.

Payment Processing

Wells Fargo Merchant Services handles payment processing for all major credit and debit cards, catering to various types of businesses. Their offerings include POS systems from Fiserv‘s Clover brand, EMV readers, e-commerce solutions with virtual terminals and shopping carts, and next-day funding. Reviews commonly cite concerns about fees rather than issues with equipment.

Point-of-Sale (POS) Solutions

Wells Fargo Merchant Services provides a variety of POS solutions, such as traditional countertop terminals, mobile readers, and tablet-based systems.

E-commerce Solutions

Wells Fargo Merchant Services offers e-commerce solutions including payment gateways, shopping cart integrations, and tools for fraud detection and prevention.

Online Payment Gateway

The online payment gateway from Wells Fargo Merchant Services integrates with businesses’ online operations to facilitate credit and debit card transactions.

Business Analytics

Wells Fargo Merchant Services provides business analytics tools to help businesses gain insights from their payment processing data.

Security and Compliance

Security and compliance solutions from Wells Fargo Merchant Services include PCI compliance tools, encryption, and tokenization to protect businesses and their customers against fraud and data breaches.

Faster Deposits for Wells Fargo Banking Customers

Merchants with both a checking account and merchant account at Wells Fargo benefit from quicker deposit of credit card sales funds, typically by the next business day. This is in contrast to the industry standard of a 48-hour delay when using different providers for checking and merchant accounts. While this feature can be beneficial, it should not be the sole consideration for merchants choosing a merchant account provider.

Fewer Complaints Than Expected

Considering Wells Fargo’s size, the company surprisingly has relatively few reviews concerning its merchant services division. Nonetheless, common types of customer complaints indicate areas where business owners are likely to encounter problems. If you have your own review of Wells Fargo Merchant Services to share, please do so in the comments below.

Poor Sales Experience

One of the most recurrent complaints involves customers reporting dishonest or deceptive practices by agents regarding terms, conditions, or costs of merchant account agreements, including additional services being signed up without consent. A business owner named Brad shared his negative experience in the comment section below this review.

“Just like many of the people below in this comment section, they offered the 2.2% rate, no fees, no contract, and $50 credit towards the credit card processing machine. The first 3 months went by with Wells Fargo sticking to the agreement…

Other Wells Fargo Complaints

Additional grievances include sudden and prolonged holding of business funds without explanation, nondisclosure of cancellation fees, and undisclosed non-cancellable policies regarding equipment leases. Clients experiencing fund withholding may benefit from consulting a high-risk specialist.

Wells Fargo Merchant Services Customer Support Options

Wells Fargo provides general customer service options via telephone support on its website. However, this falls short of the comprehensive support offered by merchant service providers known for excellent customer service.

PaymentPop Rating for Wells Fargo Merchant Services

Positive Feedback

There are no positive reviews published about Wells Fargo Merchant Services on the PaymentPop website.

No BBB Profile for Wells Fargo Merchant Services

The Better Business Bureau and other review websites do not have a separate report for Wells Fargo Merchant Services, but there are complaints related to merchant services that have been filed against its general page.

Wells Fargo Merchant Services Terms May Vary

The Wells Fargo Program Guide outlines pricing and fees for merchant accounts, indicating that rates may differ based on business type, processing volume, and the representative handling the account setup. According to the company’s website, it offers a swipe rate of 2.60% plus $0.15 and a keyed-in rate of 3.40% plus $0.15. Storefront businesses are charged a monthly fee of $9.95, while e-commerce businesses pay $24.95. However, business owners have consistently reported higher costs with Wells Fargo compared to previous providers, prompting many to switch to more cost-effective alternatives. To secure favorable terms, working with a reliable agent is advised. We recommend consulting our list of the best merchant accounts for businesses.

Three Years, $500 Termination Fee

Wells Fargo’s standard merchant account agreement, available below, entails a 36-month service commitment with an Early Termination Fee (ETF) of either $500 per location (for clients processing under $1,000,000) or $500 per location plus six times the cost of the business’ highest month (for merchants processing over $1,000,000).

Virtual Terminal and Payment Gateway Pricing

Wells Fargo mentions online payments in its program guide but does not disclose pricing for its virtual terminal and payment gateway services. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates, are common for these e-commerce services.

Beware Long-Term Leases

Business owners are often encouraged to lease processing equipment through First Data Global Leasing, with non-cancellable lease agreements of up to 48 months. It is uncertain if Wells Fargo charges an annual PCI Compliance Fee, which is standard in the industry. Overall, these terms are less competitive than industry averages, making Wells Fargo less favorable as a low-cost merchant account provider.

In August 2017, Wells Fargo faced a class-action lawsuit alleging deceptive practices in merchant processing agreements, resulting in a $40 million settlement in April 2021. A separate class-action suit in July 2021 accused excessive charges, leading to another settlement. In September 2021, Wells Fargo Bank was ordered to pay $250 million for deficiencies in its home lending loss mitigation program.

Advertising to Existing Customers

Wells Fargo primarily markets its merchant services through the use of fully employed outside sales representatives as opposed to independently contracted agents. It also promotes and sells merchant accounts through its numerous banking branches. Negative Wells Fargo Merchant Services reviews have reported uses of deceptive sales tactics, specifically nondisclosure of important contract conditions and fees by the company’s agents. These complaints appear to be related to both the terms of Wells Fargo’s contracts as well as the terms of First Data Global Leasing’s equipment leases. This does not compare favorably to our list of best credit card processors. If you believe you are paying hidden fees from Wells Fargo, you should seek a fee-reduction analysis from an independent third party.

No Deceptive Ads

The company does not appear to utilize any intentionally misleading advertising or rate promotions that are apparent at this time. However, client complaints regarding hidden fees has lowered its rating for the purposes of this review.

Wells Fargo Merchant Services, a large merchant account and credit card processing provider, has been the subject of customer reviews that cite high fees and a subpar sales experience among other concerns. Processing rates appear to be on the higher side, particularly if clients haven’t negotiated their pricing effectively. Furthermore, the likelihood of a long service agreement, an early termination fee, and a non-cancellable equipment lease all contribute to the company’s less-than-ideal rating.

Given these potential pitfalls, business owners are strongly urged to scrutinize their service agreements before signing any documents or consider choosing from one of the best-rated credit card processors we’ve reviewed. Doing so will help ensure more favorable terms and a better overall experience.