Choosing the right payment processor is essential for any business, directly impacting transaction efficiency and overall customer satisfaction. When evaluating payment processing options, it’s necessary to differentiate between legitimate services and potential bait-and-switch schemes. This review will focus on Host Merchant Services, a trusted payment processor with a less transparent option – The Card Association Merchant Services.
By looking at the features, pricing, and customer support of each, you’ll be equipped with the necessary information to make an informed choice about the right payment processing solution for your business. This review highlights the differences, helping you avoid misleading options while choosing a reliable and effective service.
About The Card Association Merchant Services
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The Card Association Merchant Services presents itself as a division of the Visa and Mastercard associations, claiming to assist business owners in identifying and reducing overbilling in their merchant accounts. This portrayal gives the impression of direct affiliation with the major credit card networks, lending an air of authority and trustworthiness. By positioning itself this way, the company may seek to gain the confidence of business owners who may believe they are working directly with Visa or Mastercard to resolve billing issues.
However, it’s important to note that The Card Association is not directly affiliated with Visa or Mastercard. Instead, it operates as an independent merchant services organization under TCA Commerce LLC, helping businesses find payment processing solutions. Their services include offering lower processing rates, providing free placement equipment, and ensuring top-tier customer support without contractual obligations.
Business owners should exercise caution and conduct thorough research when considering services from The Card Association. While they offer potential cost savings and support, verifying their claims and understanding that they are not directly connected to the major credit card networks is crucial. Reviewing contracts carefully and comparing them with other service providers can help ensure that the chosen merchant services align with the business’s needs and expectations.
Pros and Cons of The Card Association Merchant Services
Pros
- None
Cons
- Reports indicate that the Card Association has presented itself as affiliated with major credit card networks like Visa and Mastercard, but this is not the case.
- This misrepresentation has confused business owners about the company’s true nature and affiliations.
- There are accounts of high-pressure sales approaches, including persistent telemarketing and deceptive strategies, aimed at persuading businesses to switch their merchant services under the guise of official associations.
- Information about the company’s ownership and operations appears to be intentionally obscured, raising concerns about transparency and trustworthiness. For example, ownership details are missing from the company’s website, and domain registration information is hidden using privacy services.
About Host Merchant Services
Host Merchant Services, established in 2010 by Lou Honick, is a Delaware-based payment processing company that delivers transparent and reliable merchant services. Host Merchant Services offers a comprehensive suite of solutions, including credit and debit card processing, point-of-sale (POS) systems, e-commerce integrations, and mobile payment options, catering to businesses across various industries. The company emphasizes transparent interchange-plus pricing, with no setup or early termination fees, and provides 24/7 customer support to ensure seamless payment processing for its clients.
Host Merchant Services’s commitment to customer satisfaction is evident through its month-to-month billing without long-term contracts, allowing businesses the flexibility to adapt as needed. The company also offers free web hosting with each account, adding value to its service offerings. With a focus on serving low-risk and high-risk merchants, Host Merchant Services tailors its services to meet each client’s unique needs, ensuring efficient and secure payment processing solutions.
Clients have praised Host Merchant Services for its exceptional customer service and transparent pricing. The company’s dedication to maintaining lifetime rates without hidden fees has garnered positive feedback from businesses seeking dependable merchant services. Host Merchant Services has established itself as a trusted partner for businesses aiming to streamline their payment operations by prioritizing customer support and offering a wide range of payment processing solutions.
Pros and Cons of Host Merchant Services
Pros
- Host Merchant Services offers clear and straightforward interchange-plus pricing, ensuring businesses understand the exact costs associated with each transaction.
- Businesses can benefit from the flexibility of month-to-month agreements without the worry of being locked into long-term contracts or facing penalties for early termination.
- Host Merchant Services is recognized for its 24/7 customer service, providing timely and effective assistance to merchants.
- The company provides free EMV-compliant credit card terminals to qualifying merchants, reducing the initial setup costs for businesses.
- Unlike The Card Association, Host Merchant Services is a well-established brand with positive customer reviews.
- Extends the services to both high-risk and general industries.
Cons
- While Host Merchant Services’s pricing structure is competitive, businesses with low transaction volumes might find the monthly fees and per-transaction costs less economical than providers offering flat-rate pricing models more suited to low-volume processing.
Key Features of The Card Association Merchant Services
The Card Association website lists several features it provides. While we suggest verifying this information, here’s what they claim to offer:
- Payment Gateways:
Through NMI, Authorize.net, and Valor Gateway, this platform enables merchants to accept major credit cards, including Visa, MasterCard, American Express, and Discover. With a virtual terminal accessible from any internet-connected browser, it supports card swipes, keyed-in transactions, and recurring billing. Additionally, it provides detailed reporting for comprehensive insights and integrates seamlessly with proprietary shopping carts for streamlined transactions.
- POS Systems:
It offers Clover POS, a robust system with customizable software, built-in security with EMV chip technology, and integration with third-party apps. Its user-friendly interface and comprehensive features make it suitable for various business types.
It also provides DejaPay Pro, a versatile POS system that supports multiple payment methods, including credit and debit cards, mobile payments, and contactless transactions. It features EMV chip technology, a large touchscreen display, and robust reporting and analytics tools.
- Mobile Payment Solutions:
iProcess Mobile App, designed for businesses on the move, allows credit card payments to be accepted via smartphones or tablets. It ensures secure transaction processing with built-in encryption, customizable receipts, reporting and analytics, offline mode functionality, and integration with the NMI Gateway.
- Terminals:
Q2 ChargeAnywhere Terminal offers wireless connectivity options (Wi-Fi and 4G/LTE), a touchscreen display, contactless payment capabilities, a built-in receipt printer, and robust reporting and analytics. It’s designed to process payments efficiently in various business environments.
Key Features of Host Merchant Services
Host Merchant Services offers a comprehensive suite of payment processing solutions tailored to various business needs. Key features include:
- Payment Processing and Merchant Services
The company offers competitive and transparent pricing for payment processing, utilizing an interchange-plus pricing model. It supports all major credit and debit cards, including Visa, MasterCard, American Express, and Discover. Host Merchant Services provides features such as next-day funding, 24/7 customer support, and PCI compliance to ensure secure transactions. The scalable service offers tailored solutions for small, medium, and large businesses, ensuring that payment processing capabilities grow alongside business needs.
- Payment Gateways:
HMS Pay is the proprietary, web-based payment gateway that provides merchants with a virtual terminal for processing transactions 24/7 from any location. It supports all major credit cards, signature debit cards, e-Checks, and ACH payments. Features include electronic invoicing, recurring billing, fraud protection, and a secure customer vault for storing payment information. HMS Pay is fully PCI-compliant, ensuring high-level security and data tokenization.
Additionally, Host Merchant Services supports integration with leading payment gateways such as NMI and Authorize.net, allowing businesses to choose the platform that best fits their operational needs.
- Mobile Processing
Host Merchant Services delivers solutions that enable businesses to accept payments on the go. They provide mobile card readers compatible with smartphones and tablets, allowing merchants to process credit and debit card transactions anywhere.
These solutions support EMV chip cards, NFC/contactless payments (such as Apple Pay and Google Pay), and magnetic stripe cards. The mobile app also includes real-time transaction tracking and secure payment processing.
- Point-of-Sale (POS) Systems
Host Merchant Services offers advanced solutions like Bonsai and Clover systems, catering to various business needs. Bonsai POS is designed for smaller businesses, offering streamlined functionality at an affordable price. Clover POS is highly customizable, making it suitable for larger operations with features for inventory management, employee scheduling, and advanced reporting. Both systems support multiple payment types, including chip cards, contactless payments, and mobile wallets, designed for scalability as businesses grow.
- E-commerce Solutions:
Host Merchant Services seamlessly integrates with popular e-commerce platforms and shopping carts, including WooCommerce, Magento, and BigCommerce. This flexibility enables businesses to manage online transactions and shopping cart functionalities efficiently.
- Merchant Cash Advance:
Host Merchant Services offers merchant cash advances to support business growth and operational needs. Eligible businesses can receive advances up to $500,000, with funding typically provided within 3-5 days. Advances up to $20,000 can be funded within 48 hours for faster access. This financial solution is designed to assist businesses in managing cash flow, expanding operations, or covering unexpected expenses.
- Gift Cards and Loyalty Cards
Host Merchant Services helps businesses enhance customer engagement by offering custom-branded gift cards and loyalty programs. These programs allow companies to provide rewards, discounts, and exclusive promotions to frequent customers. Fully integrated into the HMS payment system, the loyalty program simplifies tracking sales, managing balances, and interacting with customers. Gift card solutions are ideal for retail, dining, and service-based industries.
Is The Card Association a Bait-and-Switch Scheme?
Concerns have been raised about The Card Association’s business practices, with some suggesting the possibility of bait-and-switch tactics. The company is an authoritative figure in the payment processing industry, but reports suggest it may primarily function as a reseller for companies like RedFynn Technologies and Paysafe. This raises concerns that business owners might be misled into thinking they are receiving unbiased advice when, in reality, they are being steered toward specific payment processors.
Source: Card Payment Options
In addition, there are discrepancies regarding the company’s listed address. The website mentions an address at 1201 South Alma School Rd., Mesa, AZ, but investigations have found no substantial evidence that The Card Association operates from this location. Another address linked to the company, 5010 E Shea Blvd, Suite 140, Scottsdale, AZ, is shared with Miller and Wolman CPAs, an accounting and tax service business, which raises further questions about the company’s transparency and legitimacy.
Additionally, scrutiny reveals potential connections between The Card Association and RedFynn Technologies, a merchant account provider based in Tempe, Arizona. RedFynn has faced criticism for deceptive marketing practices, including allegations of “slamming,” which involves unauthorized changes to a merchant’s payment processing services.
Given the concerns over deceptive marketing strategies, unclear affiliations, and inconsistent address information, it appears that The Card Association may not operate with the transparency that business owners expect when seeking reliable payment processing services. Business owners are advised to be cautious and conduct thorough research before engaging with The Card Association.
Pricing Comparison Between The Card Association and Host Merchant Services
Host Merchant Services offers a transparent and straightforward pricing structure for its services. It charges a monthly fee of $14.99, which covers account maintenance and customer support. Host Merchant Services provides flexible, no-term commitment contracts, allowing businesses to operate month-to-month without cancellation penalties. The company uses an interchange-plus pricing model, with transaction fees varying by transaction type: 0.25% + $0.10 for retail storefronts, 0.20% + $0.09 for restaurants, and 0.35% + $0.10 for e-commerce transactions. Host Merchant Services also charges a low monthly PCI compliance fee of $4.95, which helps merchants comply with Payment Card Industry Data Security Standards (PCI DSS). Additionally, The company maintains transparency about other fees, such as statement fees and internet gateway fees, ensuring that merchants are fully informed about their costs.
On the other hand, The Card Association’s fee structure is less clear and varies based on the services provided. The monthly fees depend on the specific services and fee structures chosen, with no explicit details on termination fees. Transaction fees also vary, depending on whether merchants select interchange-plus or flat-rate pricing. The Card Association may also charge additional fees for services such as PCI compliance, although the exact amounts are not specified. Additionally, merchants may face supplementary charges for services like chargeback handling and terminal rental.
Host Merchant Services offers a more transparent and predictable pricing structure, with clear monthly fees, low PCI compliance costs, and no early termination fees, making it a cost-effective option for many merchants. In contrast, The Card Association’s fee structure lacks clarity, with potential hidden charges depending on the services used. Merchants are advised to carefully evaluate their specific needs and the predictability of fees when selecting a payment processing provider.
Customer Support Comparison Between The Card Association and Host Merchant Services
Host Merchant Services offers 24/7 customer support, ensuring assistance is always available. The company is recognized for its prompt and efficient support, with a dedicated team that effectively addresses client concerns. User feedback highlights the positive experiences with Host Merchant Services’s customer service, with one user sharing, “I had the good fortune to speak with Chris… I switched to save money, which I did, but I also wanted better service. Host Merchant answers the phone when I call, and the people are good at their jobs.”
On the other hand, the Card Association provides limited information regarding its customer support hours. Client comments have revealed that The Card Association often misrepresents its role, claiming to be affiliated with Visa and MasterCard when it is a reseller. Many business owners report aggressive sales tactics, where representatives pressure them into submitting financial statements to address billing errors. Many customers are pressured into agreeing to contracts that later reveal undisclosed fees and disadvantageous conditions. Frequent follow-up calls and unclear explanations about their connections to credit card networks have caused widespread frustration and wariness among these clients.
Conclusion
Host Merchant Services is a reliable and transparent choice for businesses seeking payment processing solutions. The company’s straightforward pricing, lack of hidden fees, and commitment to exceptional customer service make it a top contender in the industry. Host Merchant Services’s flexible, month-to-month contracts and 24/7 customer support demonstrate their dedication to providing value and maintaining long-term client relationships. The positive feedback from users further solidifies it as a trustworthy and efficient provider.
However, the Card Association raises several red flags that warrant caution. Their misrepresentation of affiliations with major credit card networks like Visa and MasterCard, combined with aggressive sales tactics and unclear pricing structures, creates an environment that may mislead business owners. The lack of transparency regarding ownership, inconsistent contact information, and potential ties to companies with questionable business practices only add to the concerns.
Given these factors, business owners are advised to proceed with caution when considering The Card Association, as their deceptive marketing strategies and unclear service offerings make them a risky option compared to the reliability and clarity offered by Host Merchant Services.
