Capital Merchant Solutions is a well-known company offering payment processing services to businesses of all sizes in different sectors. Founded in 1997, CMS has developed a trustworthy name by providing reliable and effective solutions customized to meet the various requirements of its customers. The company has its headquarters in Bloomington, Illinois, where it has expanded from a small paper check processor to a full-service merchant account provider.
Company Overview
Established in 1997, Capital Merchant Solutions originally specialized in handling physical checks. Through time, the business broadened its offerings to encompass a variety of payment options like credit card processing, mobile payments, and e-commerce gateways. The growing need for electronic payment systems in a fast digitizing market fueled this development.
Today, CMS provides an extensive range of services designed to streamline payment processes and enhance customer experiences. These services include credit card acceptance, mobile point of sale solutions, online credit card processing, and more. The company is dedicated to maintaining high standards of quality and value through competitive pricing, innovative products, and robust customer support.
The leadership provided by CMS, with Chris Nelson as CEO and Russell Link as President, has been essential in guiding the company towards expansion and new ideas. CMS has earned a favorable reputation in the industry, thanks to their dedication to excellence.
CMS offers versatile payment options, including credit and debit card processing, electronic checks, and mobile payments, allowing businesses to cater to their customers’ varied preferences. Their secure online payment gateways integrate seamlessly with e-commerce platforms, enhancing both convenience and security for online transactions.
Services Offered
CMS offers a wide range of payment processing services that cater to the varying requirements of businesses. Whether you have a small physical store or a large online store, CMS provides solutions that simplify payment processes and improve customer satisfaction.
Credit Card and Debit Card Acceptance
CMS enables businesses to accept both credit and debit card payments, providing flexibility and convenience for customers. This service is essential for modern businesses that need to offer various payment options to meet consumer expectations.
Mobile Credit Card Processing and Mobile POS Solutions
CMS provides mobile credit card processing and mobile point-of-sale (POS) solutions to cater to the rising usage of mobile devices. These services enable businesses to take payments through smartphones and tablets, simplifying the process of carrying out transactions on the move and boosting sales efficiency.
Online Credit Card Processing and Secure Online Payment Gateways
CMS provides robust online credit card processing and secure payment gateways, integrating seamlessly with e-commerce platforms. This ensures that online transactions are processed securely, boosting customer confidence and improving conversion rates.
Recurring Billing for Subscription-Based Services
For businesses that operate on a subscription model, CMS offers recurring billing solutions. This feature automates payment schedules, reducing administrative work and ensuring timely payments.
Virtual Terminals for Phone and Mail Order Payments
CMS’s virtual terminal enables businesses to accept payments via phone or mail orders. This is especially beneficial for businesses that deal with remote transactions, offering a safe platform for offline payments.
Point of Sale (POS) Systems with Inventory and Employee Management
The POS systems from CMS come equipped with advanced features such as inventory and employee management. These systems help streamline in-store operations, providing real-time analytics and improving overall business efficiency.
Integration Capabilities with Accounting, CRM, and E-commerce Platforms
To enhance operational efficiency, CMS offers integration capabilities with popular accounting software, customer relationship management (CRM) systems, and e-commerce platforms. This seamless integration reduces manual data entry and helps businesses manage their operations more effectively.
Pricing and Fees
CMS offers a variety of pricing plans to accommodate different business needs. Each plan is structured to provide flexibility and cost-efficiency based on transaction volume and specific requirements.
Pay As You Go Plan
This plan is appealing to small businesses or individuals with low transaction volumes as there are no monthly fees associated with it. The fee for each transaction is $0.35 plus 4.95%. Although high-volume businesses may find the higher cost per transaction disadvantageous, startups and small enterprises can benefit from the absence of fixed monthly fees.
Retail Plan
The Retail Plan is designed for brick-and-mortar stores and charges a monthly fee of $20. The per-transaction fee is interchange plus 0.15% plus $0.25. This plan is suitable for businesses with consistent transaction volumes, offering a balance between fixed monthly costs and lower transaction fees compared to the Pay As You Go Plan.
E-Commerce Plan
For online businesses, the E-Commerce Plan charges $35 per month, with a per-transaction fee of interchange plus 0.20% plus $0.25. This plan is tailored for e-commerce platforms, providing secure online payment processing with competitive rates.
Mobile Plan
The Mobile Plan is priced at $35 monthly and comes with a transaction fee of interchange plus 0.20% plus $0.35. This option is perfect for companies that heavily depend on mobile transactions, providing the ability to receive payments through smartphones and tablets.
Additional Fees and Costs
CMS imposes additional fees for certain services. Terminal costs are included in each plan, but businesses opting for the wireless terminal option incur an additional data plan fee of $20 per month. Moreover, PCI compliance fees are charged to ensure adherence to industry security standards. High-risk merchants may face early termination fees if they decide to exit their contracts prematurely.
Comparison with Competitors
Even though CMS has various plans available, its pricing, especially with the Pay As You Go Plan, might not be as competitive as Square and PayPal, who have lower transaction fees for similar services. Businesses need to carefully assess these choices in order to identify the most budget-friendly option for their unique requirements.
Contract Terms
CMS operates with contract terms designed to cater to the varied needs of businesses, but it’s essential to understand the specifics to avoid any surprises.
Length and Renewal of Contracts
The standard contract length with CMS is typically three years. This term is standard in the payment processing industry, providing stability for both the merchant and the provider. Nevertheless, businesses need to be mindful of auto-renewal clauses that could prolong the contract past its original duration. These clauses typically extend the contract for another year unless the merchant gives written notice of termination within a set time period, typically between 30 and 90 days before the contract ends.
Early Termination Fees
For high-risk merchants, CMS applies early termination fees (ETFs) if they decide to cancel the contract before the term ends. The costs may differ but usually fall within the range of $500. Informing CMS in writing and resolving any unpaid fees is part of the early termination process. High-risk merchants should carefully consider the potential costs associated with terminating the contract early to avoid unexpected financial burdens.
PCI Compliance Requirements
PCI compliance is a critical aspect of payment processing, ensuring that businesses adhere to security standards for handling cardholder data. CMS requires all merchants to adhere to PCI compliance and has the authority to impose fees for any violations. These fees serve as an incentive for businesses to regularly validate their compliance status, avoiding potential security breaches and hefty penalties.
Additional Terms
In addition to the above, CMS’s contract terms include specific conditions related to equipment leasing. Merchants may lease payment terminals and other hardware, with the terms detailing the costs and responsibilities associated with the leased equipment. Additionally, CMS has guidelines concerning fund holds and reserves that could be implemented to reduce the threat of chargebacks and fraud. These policies are crucial for high-risk merchants to understand, as they can impact cash flow and operational efficiency.
Understanding these contract terms helps businesses make informed decisions and ensures a smoother relationship with Capital Merchant Solutions.
Customer Support
CMS offers customer support services to assist businesses with their payment processing needs. The availability and quality of this support are critical for maintaining smooth operations. CMS provides multiple channels for customer support, including phone and email. Despite these efforts, there have been common complaints about the responsiveness and effectiveness of their customer service. Clients have reported delays in getting assistance and difficulties in resolving issues, leading to dissatisfaction.
Customer Complaints and Issues
Inadequate Customer Support and Communication
Many customers have expressed frustration with CMS’s customer support. Complaints often highlight unresponsive service representatives and prolonged resolution times. For instance, some clients reported waiting days for a reply to urgent queries, impacting their business operations.
Hidden Fees and Pricing Structures
Another significant issue is the lack of transparency in CMS’s fee structure. Customers have noted undisclosed fees and misleading pricing information. This lack of clarity can result in unexpected costs, adding financial strain to businesses. Instances where businesses discovered additional charges on their statements without prior notice are not uncommon.
Difficulty in Contract Termination or Switching Providers
Terminating contracts or switching to a different provider has proven challenging for some CMS clients. Reports indicate that the process is cumbersome and time-consuming, with some businesses facing obstacles in cancelling services, resulting in continued charges.
Unsatisfactory Equipment or Technology
Issues with the provided equipment and technology have also been a concern. Clients have reported problems with credit card terminals and integration with other systems, leading to operational inefficiencies and disruptions.
Delayed or Withheld Funds
Delayed or withheld funds have been a critical issue for many businesses using CMS. These delays can significantly affect cash flow and day-to-day operations, with some customers facing unexpected holds or freezes on their accounts, further complicating their financial management.
CMS has recognized these issues and has taken steps to address them, including improving customer service protocols and enhancing transparency in their fee structures. However, potential clients should be aware of these common complaints and conduct thorough research before committing to CMS.
Legal Matters and BBB Rating
CMS has faced various legal issues and customer complaints over the years. While the company has a long history of providing payment processing services, it has not been without controversy. Legal matters often revolve around contractual disputes, undisclosed fees, and issues related to service quality. Some lawsuits have involved claims of deceptive practices and non-transparent fee structures, highlighting the importance for businesses to thoroughly review contract terms before committing.
The Better Business Bureau (BBB) has given CMS an F rating, the lowest possible score. This rating reflects the volume and nature of complaints lodged against the company. The BBB rating takes into account factors such as the number of unresolved complaints, the seriousness of the complaints, and the company’s failure to address the underlying issues satisfactorily.
CMS has received numerous customer complaints, primarily focusing on hidden fees, difficulty in contract termination, and inadequate customer support. Complaints about hidden fees often involve unexpected charges that were not clearly disclosed during the initial agreement. Additionally, many customers have reported significant challenges when trying to terminate their contracts or switch providers, which has led to further dissatisfaction and frustration.
Overall, the legal issues and the BBB rating are significant considerations for businesses evaluating CMS as a payment processing partner. Prospective clients should weigh these factors carefully and conduct thorough due diligence to ensure they are fully aware of the potential risks involved.
Pros and Cons
CMS offers a mix of advantages and drawbacks, making it essential for businesses to weigh these factors carefully before committing to their services.
PROS
- Wide Range of Services and Versatile Payment Options: CMS provides a comprehensive suite of payment processing services, including credit card and debit card acceptance, mobile payments, and secure online gateways. This versatility allows businesses to cater to various customer preferences, enhancing the overall transaction experience.
- Customizable Solutions for Different Business Needs: CMS offers tailored solutions to meet the specific requirements of different businesses. Whether it’s a small retail store, a large e-commerce platform, or a subscription-based service, CMS can customize its offerings to optimize payment processes and improve operational efficiency.
- Integration Capabilities with Various Business Software: One of the significant strengths of CMS is its ability to integrate seamlessly with popular accounting software, customer relationship management (CRM) systems, and e-commerce platforms. This integration helps streamline operations, reduce manual data entry, and improve overall business productivity.
CONS
- Higher Transaction Fees Compared to Competitors: One of the primary drawbacks of CMS is its higher transaction fees, particularly with the Pay As You Go plan. Businesses with high transaction volumes may find these fees less competitive compared to other providers like Square or PayPal, which offer more cost-effective rates.
- Issues with Customer Support and Communication: CMS has received numerous complaints regarding its customer support. Issues include unresponsiveness, delayed assistance, and difficulties in resolving problems. These shortcomings can significantly impact businesses, especially those that rely heavily on timely support.
- Hidden Fees and Contract Termination Difficulties: Clients have mentioned occurrences of hidden charges and deceptive pricing models, resulting in unforeseen expenses. Moreover, ending contracts or changing providers has been mentioned as difficult and lengthy, and some customers still incur fees even after trying to cancel services.
Overall, while CMS offers a broad range of services and robust integration capabilities, potential clients should be mindful of the higher costs and possible customer support challenges
Industry Comparison
CMS competes with prominent payment processors like Square, PayPal, and Stripe. Each of these companies offers distinct advantages and features that cater to various business needs.
Comparison with Top Competitors
Square
Square is known for its transparent pricing and ease of use, particularly appealing to small businesses and startups. There are no monthly fees for in-person payments, but a flat rate of 2.6% + $0.10 per transaction is charged. Square also provides a complete POS system, strong mobile payment options, and smooth compatibility with different business tools. CMS, in contrast, has higher transaction fees, especially with the Pay As You Go plan, which can make it less attractive for businesses with high transaction volumes.
PayPal
PayPal offers a well-established and widely recognized platform with a global reach. It charges 2.9% + $0.30 per transaction for online payments. PayPal is popular for its user-friendly interface, robust buyer protection measures, and wide range of e-commerce offerings. While CMS provides similar online payment processing features, PayPal’s brand trust and lower fees give it an edge in customer satisfaction.
Stripe
Stripe is highly regarded for its developer-friendly API and extensive customization options, making it ideal for tech-savvy businesses and online platforms. It costs 2.9% + $0.30 for each transaction, just like PayPal. Stripe provides advanced functionalities such as managing subscription billing, preventing fraud, and processing international payments. CMS offers competitive services, but Stripe’s advanced technical capabilities and global reach often make it the preferred choice for online businesses.
How CMS Stands in Terms of Pricing, Features, and Customer Satisfaction
Pricing
CMS tends to have higher transaction fees compared to Square, PayPal, and Stripe, particularly for smaller transactions. This can make it less appealing for businesses focused on cost-efficiency.
Features
CMS offers a robust range of services, including versatile payment options, POS systems, and strong integration capabilities. However, when compared to the advanced customization and developer tools provided by Stripe, or the brand trust and international presence of PayPal, CMS can fall short in certain areas.
Customer Satisfaction
Customer reviews of CMS frequently point out problems with unexpected charges, challenges ending contracts, and difficulties with customer service. On the other hand, Square, PayPal, and Stripe are typically rated higher for their transparency, user-friendliness, and customer support.
Overall, while CMS provides a comprehensive suite of payment processing solutions, businesses must consider the higher costs and potential customer support issues when comparing it to leading competitors like Square, PayPal, and Stripe.
Conclusion
Capital Merchant Solutions provides a wide variety of payment processing services that come with strong integration features. Nevertheless, it carries higher charges and encounters problems with customer support in comparison to rival companies. When selecting a payment processor, businesses should carefully evaluate the full range of features and costs, taking into account their individual requirements.
