Elavon Payments is a payment processing company that allows businesses to accept payments online, in-store, and through mobile devices. With it, businesses can accept all major credit cards, debit cards, and electronic checks for secure transactions. Unfortunately, many merchants have had negative experiences with the company.
This Elavon Payments review thoroughly examines the company’s features and services, pricing structures, and more. Read on to determine if Elavon Payments is the right choice for your business.
Services and Features
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Elavon Payments is a leading payment processor that provides services and features for merchants belonging to different businesses. It offers an array of online and in-store payment processing services. Following is an Elavon Payments review that provides a comprehensive look into its features and services.
Industry-Specific Services
Elavon Payments provides services specific to different industries, such as retail, hospitality, health care and professional services. For example, it offers EMV card readers for retail businesses and integrated payment solutions for health care providers. But, some of its industry-specific services may lack features necessary for businesses in those industries.
Reporting & Analytics
Although the company offers reporting and analytics, they are less comprehensive than other payment processors. The reports do not offer an in-depth look into the financial performance of a business. Also, Elavon Payments does not provide forecasting and long-term planning tools. It makes it difficult for businesses to decide based on the provided data.
Point of Sale Solutions
Elavon provides a variety of point-of-sale (POS) solutions, such as in-store payment processing and mobile POS. But, the features and capabilities of these solutions are limited compared to other payment processors. For example, the mobile POS may not offer inventory management capabilities or detailed customer data.
Credit Card Processing
The company offers credit card processing services. It has many options, such as contactless payments and virtual terminals. But, the fees for processing credit cards can be higher than other payment processors. Merchants may also be charged additional fees for add-on services, such as fraud protection or business analytics.
Mobile Payment Solutions
When it comes to mobile payment solutions, Elavon also falls short. Its mobile payment solution does not offer as many features and options as other payment processors. For example, its mobile payment solution does not provide the ability to create custom payment forms.
Revenue Through Loyalty Programs
Elavon Payments offers loyalty programs but is less comprehensive than other payment processors. The loyalty programs do not offer rewards that are tailored to different customers. Also, these programs are difficult to set up and manage, and it can be difficult for merchants to maximize their revenue through them.
BBB Rating
The BBB rates Elavon Payments with an “A+” rating. However, this is not an endorsement of their services or business practices. While the company has responded to several complaints filed, several customers have expressed dissatisfaction with customer service.
Numerous reports have also been of customer funds not being returned on time. Additionally, Elavon Payments has received several negative reviews regarding the charges associated with their services, with some customers remarking that these fees were not disclosed upon sign-up. These factors combined lead to a lower rating than expected for an organization of their size and standing.
Hence, merchants should consider the abovementioned factors before signing up for services with Elavon. It is important to thoroughly review all fees and terms associated with the services before deciding.
Lawsuits and Fines
Elavon is not exempt from legal issues and lawsuits. The company has been involved in several cases that have resulted in hefty fines and getting bad reviews. Here are a few of them.
Industry-Related Lawsuit
In 2012, Cisero’s alleged that Elavon breached its contract by overcharging processing fees. The company ultimately settled the case, but it was costly for the company. It has since improved its customer service and communication to avoid similar situations. But, the lawsuit did cause harm to its reputation.
False Advertising Lawsuit
The organization was sued for false advertising over its claims of having the lowest transaction rates in the industry. The company did not disclose that the advertised rates only applied to certain types of merchants. The case was later dismissed, but Elavon spent much time and money defending itself.
Fines from the FTC
The Federal Trade Commission fined Elavon for its deceptive and unfair practices related to credit card processing fees. The company was accused of misrepresenting the terms of its contracts, not disclosing all applicable fees, and other questionable practices. It made the merchants sign long-term contracts and then raised the rates without notifying them. It was forced to pay a significant fine for its practices.
Civil Suits
The company has also been sued by customers who allege that it had charged them more than their contract agreed upon. It was sometimes accused of charging extra fees without prior notification. Customers claimed that Elavon had not provided the promised services in other cases. The company has settled many cases but faces legal challenges from disgruntled customers.
Pricing Models
Elavon offers two pricing models for businesses to choose from. The first option is the Interchange Plus Pricing model, which allows merchants to pay a percentage and transaction fee on all card types. The percentages vary depending on the card type, and the transaction fee is generally fixed.
The second option is the Tiered Pricing model, which allows merchants to choose from different tiers based on card type and the merchant’s previous processing history. Each tier has preset rates, meaning the merchant does not pay more for a higher-cost card type. The challenging aspect of tiered pricing is that merchants often don’t know which rate they are being charged. Additionally, there may be hidden fees or markups that are not disclosed.
Hence, businesses should consider their processing needs carefully and compare the two models to determine the best.
Rates
When understanding Elavon’s rates, the picture seems a bit blurred. The company offers competitive pricing, but merchants will likely pay a slightly higher rate than some competitors. Following is a breakdown of the rates to consider when understanding the payment structure.
Transaction Fees
Elavon charges a transaction fee with each payment ranging from a few cents transaction, depending on the payment method and card used. The exact rate depends upon numerous factors and can be difficult to track.
Monthly Fees
It also charges monthly fees for its services. These fees typically include transaction costs, processing limits, and other miscellaneous expenses related to the account. The monthly fee depends on the services you sign up for and can vary widely.
Chargeback Fees
With the Elavon payment system, chargebacks can occur if a customer disputes a transaction. To cover the cost of these disputes, it charges additional fees. These fees typically range from $15 to $35 and can add up quickly if your business experiences a high volume of chargebacks.
Termination Fees
Elavon also charges termination fees. These fees vary depending on your account type and can be difficult to calculate. Hence, read the fine print of any contract you sign with the company, so you know what the termination fees might be.
PCI Compliance Charges
You must also be PCI compliant when you sign up to use the services. It means that you must meet the Payment Card Industry Data Security Standard. The company charges fees for annual PCI Compliance. It has caused some frustration among customers who have had to rely on Elavon for assistance in achieving compliance.
Virtual Terminal Fees
The company charges a fee for its Virtual Terminal service. It allows merchants to manually enter credit and debit card information for processing in an online environment. The exact cost of the virtual terminal will depend on your business’s needs. It is an added expense to consider when considering Elavon services.
Payment Gateway Charges
It charges fees for its payment gateway services. This service lets merchants connect their e-commerce store directly to Elavon’s payment platform. The exact fee for this service depends on the features you need and your transaction volume.
Equipment Leases from Ladco
Since the company has partnered with Ladco, they also offer equipment leasing. The cost of the lease depends on the type of machine and how long you need it. While it is sometimes cheaper than buying the equipment outright, you may pay more over time with a lease.
Complaints
When researching Elavon Payments, merchants may encounter numerous customer reviews and complaints. Few of the most common complaints you may find include the following
Lack of Transparency
Some customers have complained that Elavon is not transparent enough regarding processing fees, merchant terms and conditions, and other payment processing details. It makes it difficult to understand how much the service will cost and what other fees may be hidden.
Withholding Funds
Customers have reviewed that Elavon Payments can sometimes withhold funds for extended periods. It makes accessing the money you are owed difficult and can negatively impact your cash flow. For example, some customers have reported waiting months to receive funds initially approved.
High Fees
When compared to other payment processing services, Elavon is generally more expensive. It can make it hard for small businesses and merchants to maximize profits when using the services of this company. Furthermore, some customers have reported that the fees are hidden and difficult to understand.
Unresponsive Customer Service
For a merchant, excellent customer service is essential. Unfortunately, Elavon Payments has received numerous bad reviews about poor customer service. Customers have reported long wait times when contacting customer support and difficulty getting answers to their questions.
Difficulty in Assessing the Financial Impact
Due to the lack of transparency and hidden fees, it can be difficult for merchants to assess the true financial impact of using Elavon Payments. Furthermore, comparing this company with other payment processing services in terms of cost and value can be difficult. It makes it difficult to understand how much the service will cost and what other fees may be hidden.
Closing Accounts Without Prior Notice
Some customers have reported that Elavon Payments has unexpectedly closed their accounts without prior notice. It can be extremely disruptive to businesses, resulting in a sudden loss of access to funds and other services. Furthermore, merchants have reported difficulty finding the reason behind the closure of accounts.
Unexpected Charges
The company’s lack of transparency has also led to numerous customer complaints about unexpected charges. In this regard, customers have reported being charged for services or fees they did not agree to. Furthermore, customers have reported difficulty getting refunds or credits for these unexpected charges.
Problem with Authorizing Transactions
Elavon Payments has also been criticized for the difficulty in authorizing transactions. Customers have reported providing additional information or documentation when attempting to process payments. It can be especially frustrating, as these delays can lead to reduced sales and revenue for merchants.
Incompetent Tech Support
Merchants can find it difficult to use the services offered by the company without reliable technical support. Customers have reported difficulties getting timely and accurate answers from the company’s tech support team. Small businesses need to keep this factor in mind as this issue can lead to lost time and money when resolving technical issues.
Absence of a User-Friendly Website
The outdated user interface of Elavon Payments’ website can make it difficult for merchants to navigate and use the service. Customers have reported difficulty finding the information they needed and that the website was not intuitive or user-friendly. It can result in lost time and frustration, as merchants may have to contact customer service for assistance.
Problematic Chargeback Ratio
Some customers have reported a high chargeback ratio when using Elavon Payments. It can be especially troublesome for merchants, leading to higher fees and potential penalties from the company. Furthermore, customers have reported that the company offers no assistance in dealing with chargebacks, which can be costly and time-consuming.
Flawed PCI Compliance
Elavon Payments has also received complaints regarding its PCI Compliance program. Customers have reported that their data was not adequately protected and experienced problems with the company’s security measures. It can be especially concerning for data security, as it can lead to customer data being compromised and put at risk.
Problems in Downloading Reports
Merchants have also reported problems downloading reports and accessing their merchant account information. They find difficulty in getting the information they need when attempting to download reports. Furthermore, they have reported slow loading times and difficulties accessing their account information online and have given negative reviews.
Higher Interest Rate
Finally, customers have complained about the relatively high-interest rates charged by Elavon Payments. It can be especially burdensome for merchants with lower sales volumes, as it can increase their overhead costs. Furthermore, customers have reported difficulty obtaining accurate information on the applicable interest rates.
Partnered Resellers and Subsidiaries
Some customers have reported difficulties in dealing with Elavon’s partnered resellers and subsidiaries, citing long wait times for response to issues and a lack of resources for support. Additionally, the subsidiaries may charge different rates or fees than Elavon directly, making it difficult to compare the services to those of other providers.
Deceptive Marketing Practices
Several customers have reviewed that Elavon’s marketing materials contain untrue or inaccurate information, such as fake promotional offers and discounts that are not available to customers. Furthermore, some customers have complained that the terms and conditions of its services are often misleading or incomplete when presented in marketing materials, thus making it hard to understand the full scope of the company.
Problematic Telemarketing
Several customers have complained about the telemarketing practices of Elavon and its partnered resellers, citing instances where they were contacted multiple times without their permission and sales representatives being overly aggressive in their attempts to sell the services. Additionally, some customers have reported instances where they were misled by Elavon’s telemarketing representatives regarding the services or rates they were being offered.
Challenging For Small Businesses
Elavon is a great option for large businesses, but it may be too expensive and challenging to set up for small businesses. It requires a lot of paperwork and documents for setup and an initial cost that can be prohibitive. Additionally, customer service does not appear as helpful for smaller businesses. Thus, it can make it difficult for merchants of small businesses to get the help they need to set up and maintain their accounts.
Conclusion
Elavon Payments provides a reliable solution that is secure and simple to use for merchants of all kinds. However, assessing all the potential fees with the company is important before signing up for the service. Hence, it may not be the most appropriate option for small to medium enterprises because of its strong focus on larger businesses.
It is, however, important to carefully review the fees associated with Elavon Payments and its focus on larger businesses before deciding if it is the required payment processing solution for your business. Moreover, it’s worth researching other payment processing options to compare fees and features. Ultimately, the best payment processing solution will depend on your particular needs.
