The advent of digital payments has ushered in the need to have different options for payment processing for business owners. One such option is Credomatic Merchant Services. Merchants can use its services payment for processing payments, including credit and debit cards, without any hassle. The company offers various services, from improving the customer experience to reducing overhead costs.
This Credomatic Merchant Services review will let you glimpse its features, potential drawbacks, and associated rates to assist you in making an informed decision.
Credomatic Merchant Services Review: Services and Features
When it comes to merchant services, Credomatic has been home to providing different services to its customers. Here is a quick glance at its features.
Payment Processing Services
Credomatic Merchant Services offers various payment processing services and features, including EMV readers, card swipers, POS solutions, and more. But there have been complaints about the level of transparency the company shows in the fee associated with each service. Moreover, some of the features need to be more pocket-friendly and hence can be expensive for customers compared to other payment processing services on the market.
On-the-go Mobile Payment Services
The company also offers a mobile payment service, allowing customers to accept payments. However, this feature comes with several added costs for merchants, such as setup and monthly maintenance fees. Additionally, there is no option for customizability to the mobile payments platform.
E-Commerce Payment Processing
Credomatic also provides e-commerce payment processing. But the merchants might not be happy with its rates as they might be higher than other services in the market. Moreover, the platform might have the issue of limited scalability. Thus, it can make the business environment tough for merchants who are looking to expand their services in the future.
Integrated Business Management Tools
Credomatic offers integrated business management tools, a great feature for businesses looking to streamline their processes. However, these tools are often limited in scope and may offer a partial range of features businesses need. Additionally, there needs to be more customer support for merchants using integrated business management tools.
Virtual Terminal Services
This merchant service provider also provides virtual terminal services, allowing merchants to accept payments over the phone. However, there might be a problem when the question arises about its security. Also, customers have reported that the company is charging comparatively higher for this service. There have also been complaints about technical glitches in setting up the virtual terminal.
Credomatic Merchant Services Review: Lawsuits and Fines
Credomatic has not been subject to any FTC complaints, lawsuits or fines. However, merchants should consider the potential risks to avoid falling prey to fraudulent activities. Reading the terms and conditions of the services can play an important role as it will help to understand all the procedures and policies before signing up. Moreover, the cheery on the top for merchants will be to research the company’s background and get reviews from other users.
Fees and Rates
This review takes a look at the fees and rates associated with Credomatic Merchant Services. Here is a brief overview of the fees and rates associated with Credomatic Merchant Services.
Interchange-Plus Pricing
Credomatic offers their merchants Interchange-plus pricing with a three-year agreement. While this pricing structure can benefit businesses, it is important to note that there are more flexible options which can lead to long-term commitment and financial burdens if unanticipated costs arise. Merchants with high volumes or those who need more flexibility should carefully consider their options before signing a three-year agreement with the company.
Monthly Fees
Different merchant service providers charge a monthly fee from their customers, and Credomatic is no exception. It charges a minimum monthly fee of $25 and a $10 monthly statement fee. The problem arises for low sales volume businesses as these fees can add up and might cause long-term problems. However, in the three-year contract agreement by the company, imploys are bound to pay these fees for that duration.
Ambiguous Equipment Leasing
Credomatic’s equipment leasing terms are ambiguous. While they do offer terminals and related equipment for lease, there is no specific information on rates or what types of plans are available. It can cause concern for merchants who need more time to research thoroughly. Furthermore, merchants should prepare themselves for unexpected costs and other associated complications due to the need for more information regarding the lease terms.
PCI Compliance Fees
The company charges a monthly PCI compliance fee of $7.50, regardless of whether the merchant has completed their compliance requirements. It can be seen as an unnecessary cost for merchants who have already taken the time to complete their PCI requirements and would prefer to pay only when they are required. This fee is rather high compared to the fees charged by other merchant service providers.
Problematic Cancellation Penalties
Credomatic also has a problematic cancellation policy. The company asks for an early termination fee of $250. It can be a major deterrent for those seeking more flexibility in their merchant services provider. Furthermore, no information is available on how Credomatic will handle the return of leased equipment or what penalties may apply in that situation. It could lead to further financial burdens for merchants looking to switch providers.
Complaints
Credomatic offers a range of payment solutions that companies can use to process payments quickly and securely. In this review, what customers have to say about their experience with them.
Troublesome Cancellation Fees
Although Credomatic Merchant Services offers an easy cancellation process, some customers have reported being charged hefty termination fees. It is something to consider before signing up with the company.
Lack of Transparency
Some customers have complained that communication from this merchant service provider could be clearer and more specific. The company must clarify their fees or how they work once customers sign up.
Problematic Contract Terms
Credomatic Merchant Services includes clauses in their contracts that can confuse customers and make it difficult to cancel service without incurring penalties. These include automatic renewal and minimum term requirements. Customers should read the terms of their contracts carefully before signing up with the company.
Absence of Independent Resellers
Negative reviews have been seen as Credomatic does not offer the option of working with independent resellers. Hence, the representatives within the company usually maintain the accounts of merchants. This process can be time-consuming as the customers may demand to have the availability of more service options. Customers have reviewed that Working with a reseller is much easier and more convenient. Thus, the company should look into this matter.
Poor Customer Support
There have also been bad reviews about the customer service from Credomatic Merchant Services. The issues are innumerable, from long wait times to not disclosing complete information about various services. It can cause dissatisfaction towards the company and might not bode well for its reputation in the longer run. The company needs to take into account this matter to improve the overall customer experience and have some positive reviews.
Not Disclosing All Important Terms
When signing up for services, customers report that the Credomatic merchant service provider company discloses only limited terms among their agreement’s important ones. It can include processing fees, equipment costs, and other associated charges. It might be problematic if customers discover additional charges after signing up for services.
No Customized Solutions
Credomatic Merchant Services does not offer customized solutions to its customers. It can be problematic for businesses that need more specialized services or features from their payment processing provider. Some customers have mentioned that the company’s “one-size-fits-all” approach doesn’t always meet their specific needs and may result in customers paying more than they would with another provider.
Inadequate Security Measures
With a lack of encryption and other security measures, customers might be at risk when using Credomatic. It is particularly concerning for customers processing sensitive financial information or personal data. The company should provide robust security measures to protect customers from potential security breaches. The major credit card companies also increasingly require stronger security measures, and customers should be aware of this when choosing a payment processing provider.
Slow Transaction Processing Times
Customers have complained about slow transaction processing times when using Credomatic Merchant Services. It acts as a precursor for long wait times for customers and thus can make them leave negative reviews about the company. Thus, the company should look into the matter and take practical steps to resolve this issue. Speedy transaction of the payment will help improve the customer experience and thus make its services more competitive.
Conclusion
Among the most important observations from the Credomatic Merchant Services review is that businesses could need help integrating their services into existing payment systems. Additionally, there have been complaints about the fees associated with using the service, thus making it a costly option for smaller firms.
Hence, when using the services of Credomatic, merchants should carefully consider how it will fit into their existing payment infrastructure and the associated fees and customer service. The cost may not be worth it, depending on the size of a company’s operations.
