Circle Review: Is It a Safe and Reliable Payment Solution?

Launched in October 2013, Circle is a peer-to-peer payments technology company. The company offers payment processing, automatic payout services, ACH, and other related services through its online API. The company utilizes the USD Coin for all transactions, a so-called “stable coin” that is reported to be backed by actual dollar investments. Circle is the creator and primary issuer of the USD Coin.

Previously the company operated like Venmo or Square Cash, and offered a free mobile app called Circle Pay that enabled its users to pay each other via linked bank accounts, debit cards, or credit cards. Circle advertised its vision of a crypto-backed payment platform that enables transactions, investments, and financing through Bitcoin and other blockchain technologies. Since its inception, the company has come to host over 8 million customers and more than 1,000 organizations, which have made transactions totaling over $200 billion dollars worth of the 60-plus financial assets its platform supports.

In 2023, Circle acquired merchant and developer-first payments orchestration platform Elements.

Table of Contents

• • Costs & Contract: Offers month-to-month service with…

• • Complaints & Service: Has received more than…

• • BBB Rating: Has an “A” rating with the Better Business Bureau and has received…

• • Sales & Marketing: Does not appear to hire independently contracted agents and has not…

Payment Processing

Circle, known for its cryptocurrency services, now offers credit and debit payment processing as part of its Payments package, which costs $1,000 per month, plus transaction fees. This can be expensive for many businesses seeking payment processing services. However, Circle’s services might appeal to those needing a combination of crypto-based payments, ACH, and bank wire services, offering more options than some other providers. Circle also has a Payouts package for $250, though this does not include payment processing.

APIs for Developers

Circle provides a suite of APIs for developers, allowing businesses to integrate digital currency payment processing into their platforms or create custom solutions.

Wallet and Account Services

Circle allows businesses to create digital wallets and accounts to manage their digital currency transactions. This feature helps merchants store, send, and receive digital currencies securely and efficiently.

International Payments

Circle facilitates international payments by enabling businesses to accept digital currency payments from customers worldwide. Using currencies like USDC, merchants can process cross-border transactions quickly and at lower fees compared to traditional methods.

Circle Business Account

The Circle Business Account is designed to help businesses manage their digital currency transactions. It includes features such as multi-user access, advanced reporting, and transaction tracking.

Payouts and Mass Payments

Circle offers solutions for businesses needing to send multiple payments to vendors, suppliers, or other stakeholders. This feature allows merchants to distribute digital currency payments to multiple recipients simultaneously.

Security and Compliance

Circle emphasizes security and compliance, ensuring safe digital currency payments that adhere to regulatory requirements. The platform uses advanced security measures and complies with industry standards, including KYC and AML policies.

Comprehensive Review of Circle Complaints

An extensive review has uncovered over 500 negative reviews about Circle, with some users labeling the company as a scam or ripoff. Despite a previously high rating on the Google Play Store, the Circle Pay app’s removal from the Apple Store and outdated presence on Google Play have raised concerns. Users have reported issues ranging from poor customer service and fund holds to failed transactions. If you’ve had experiences with Circle, positive or negative, please share them in the comments below to help inform others.

Prevalent Issue: Fund Holds

A significant number of complaints focus on Circle’s practice of freezing accounts or withholding payments unexpectedly, a challenge not unique to Circle but seemingly prevalent within its operations. Users often report payments being placed “under review” indefinitely, with attempts to resolve these issues through customer service proving fruitless.

Diverse Circle Complaints

Additional grievances include app glitches, restrictions on cryptocurrency transactions, unexpected charges, and encounters with unhelpful customer support. Notably, dissatisfaction spiked when Circle temporarily ceased allowing Bitcoin transactions, though this decision has since been reversed.

Evaluating Circle’s Customer Support

While Circle’s complaint volume is moderate for a free service, recent feedback has necessitated a downgrade in its customer support rating. Circle provides email, chat, and limited phone support as part of its efforts to address user concerns.

PaymentPop Rating for Circle

Positive Feedback

There are no positive reviews published about Circle on the PaymentPop website.

Circle BBB Rating

Circle currently has an “A” rating with the Better Business Bureau and is not accredited with the BBB. The company has received 4 complaints in the last 36 months.

Circle has also received 1 informal review from users, which was negative in tone. The review describes held funds and poor customer service:

Customer satisfaction is imperative for any business. This makes the quality of customer service an important consideration when choosing a merchant account provider.

A “C” For Declining Performance

Given Circle’s size, complaint total, and resolution efforts, we have adjusted the BBB’s rating to a “C.”

Trustpilot Rating for Circle

Circle has a 1.4 out of 5 star rating based on 81 user reviews on Trustpilot.

Monthly Plans

Circle provides two tiers of monthly plans. The first, known as the Payments package, is priced at $1,000 per month, with additional transaction fees applicable. This plan encompasses payment services for cards, bank wires, and ACH transactions. Additionally, it offers fixed-rated yields on all USD Coin holdings. The more economical monthly service also facilitates payouts via wire transfers, ACH, and upcoming Visa Partner Wallets.

Circle Mobile App Limitations

Circle Pay was not designed for business transactions and imposes individually set limits on its accounts. The company also specifies that cashing out to a linked debit card or bank account may take between one to four days. Refer to the Circle user agreement for details. Circle reserves the right to terminate accounts found in violation of its terms, so users should review Circle’s list of prohibited activities before processing significant amounts through the app.

Increased Contract Complaints

While there are no public complaints about Circle’s pricing, there’s a noticeable uptick in reports of sudden account terminations. Despite its free service, making its pricing competitive even with the cheapest merchant account providers, reports of fund-holds have affected its rating in this regard.

In 2021, Circle allocated $10.4 million for a settlement regarding their past association with Poloniex amid a federal probe into potentially unauthorized transactions. Additionally, Circle faces an IRS investigation aimed at identifying users involved in substantial cryptocurrency trades, with the intent of ensuring tax compliance, though Circle itself is not accused of any misconduct.

In-House Marketing Team

Circle appears to market its service through a combination of traditional advertising and strategic partnerships. The company does not use independent sales agents, and it appears that its focus on Bitcoin has attracted a user base that its competitors are unable to serve. The company’s marketing materials repeatedly state that its service is free, but this claim is only partially true. While the company does not generate revenue by charging users, it’s possible that some users may encounter small fees when paying with credit cards. Circle maintains, however, that it does not charge a markup on any transfers.

Third-Party Cash Advance Fees

Some users who purchase cryptocurrency through the app using a credit card have encountered cash-advance fees from their credit card issuers. Circle currently does not allow users to link their Circle accounts to credit cards, but at least one Circle review has stated that the company allows users to link business debit cards and that fees may be charged when these cards are used.

Circle Pay Pricing Disclosure

Circle does not prominently identify or warn users about these potential costs on its website. Circle users should be aware that not all uses of Circle are completely free. We cannot locate any Circle Pay complaints that mention unexpected or hidden fees, which is more than can be said for even the top-rated mobile credit card processors.

Circle earns a respectable rating as both an international and domestic money transfer and credit card processing service, standing out with its notable capability to facilitate instant and cost-effective international payments. This feature distinctively positions Circle as a valuable service for global transactions, distinguishing it from many competitors. However, when it comes to domestic money transfers, Circle does not surpass the functionality or popularity of other apps like Venmo or Square Cash, which dominate the top-rated mobile app landscape for local payment solutions.

The trajectory for Circle in the evolving payment processing landscape carries potential but also uncertainty. With the launch of the USD Coin, Circle is pivoting towards leveraging blockchain technology, signaling a strategic focus that could redefine its role in the market. Yet, it remains unclear how this focus will impact the quality of customer service and the efficiency of traditional payment processing functions. Furthermore, Circle’s relatively high monthly fees could pose a barrier for many businesses, potentially limiting its appeal to those specifically interested in the innovative aspects of blockchain technology. As Circle navigates these new waters, its ability to balance these elements will be crucial in determining its continued relevance and success in the competitive payment processing sector.