National Discount Merchant Services Review

National Discount Merchant Services Review

National Discount Merchant Services Review

National Discount Merchant Services, or NDMS, is a leading company that offers payment processing solutions for businesses across different sectors and sizes. Founded in 1998, NDMS is based in Manhattan Beach, California. Throughout time, the company has built a reputation for providing a wide range of services such as credit and debit card processing, mobile payment solutions, e-commerce gateways, and advanced POS systems. The purpose of this review is to provide a detailed examination of NDMS’s offerings, pricing structure, customer support, and overall service quality to help potential clients make an informed decision. National Discount Merchant Services Review will be discussed in details here.

Merchant services are vital for businesses today, enabling them to accept a variety of payment methods securely and efficiently. These services not only streamline the transaction process but also play a crucial role in financial management, fraud prevention, and enhancing customer satisfaction. Selecting the right merchant services provider is essential for business success, as it impacts operational efficiency and customer trust.

Before becoming an independent company in 2006, NDMS was initially a division of a bigger payment processing organization. The company’s main focus now is on developing a strong payment platform for more than 150,000 merchants worldwide. NDMS values its customer-centered strategy, viewing each customer as a collaborator and offering customized solutions to accommodate a range of business requirements.

Throughout its history, NDMS has achieved several key milestones, including the introduction of innovative payment solutions and reaching significant transaction processing volumes. The company has maintained a strong commitment to customer service, which is reflected in its proactive approach to resolving issues and maintaining a low rate of complaints.

NDMS aims to provide businesses with secure, efficient, and innovative payment processing solutions that improve operational efficiency and customer satisfaction. The main goal is to constantly enhance, broaden services, and provide advanced payment technologies to support global businesses effectively.

Service Offerings

Service Offerings

NDMS offers a wide range of payment processing solutions tailored to suit businesses’ various needs. Their offerings include credit and debit card processing, mobile payment solutions, e-commerce payment gateways, and point-of-sale systems, among others.

Payment Processing Solutions

Credit and Debit Card Processing: NDMS supports all major credit and debit cards, providing businesses with the ability to accept payments from Visa, MasterCard, Discover, and American Express. Their processing solutions are designed to be secure, reliable, and efficient, ensuring smooth transactions for both in-store and online purchases.

Mobile Payment Solutions: NDMS provides mobile payment options for businesses to receive payments using smartphones and tablets. This involves enabling NFC/contactless payments with Apple Pay, Google Pay, and Samsung Pay. These solutions are perfect for businesses that are constantly on the move, like food trucks and mobile service providers.

E-commerce Payment Gateways: For online businesses, NDMS provides robust e-commerce payment gateways that integrate seamlessly with various shopping carts and online platforms. These gateways support multiple payment methods, including credit/debit cards and electronic checks (ACH), ensuring flexibility and convenience for customers.

Point of Sale Systems

Types of POS Systems Offered: NDMS offers a range of POS systems tailored to different business environments, including retail, restaurants, and mobile setups. These systems include traditional countertop terminals, portable wireless terminals, and advanced systems that integrate with other business tools.

Features and Functionalities: NDMS’s POS systems come with inventory management, sales reporting, customer relationship management, and employee tracking features. They additionally back EMV/chip card transactions and contactless payments, improving security and efficiency during transactions.

Merchant Cash Advance

How Merchant Cash Advances Work: NDMS offers merchant cash advances as a financing option for businesses in need of quick capital. A merchant cash advance is a lump sum payment in exchange for a percentage of future credit card sales. This option is often easier to obtain than traditional loans and is based on daily credit card receipts.

Terms and Conditions: Terms for merchant cash advances typically include a fixed payback amount and a predetermined holdback percentage (the portion of daily credit card sales that go towards repaying the advance). The advance is repaid through daily deductions from the business’s credit card sales.

Application Process and Eligibility Criteria: The application process for a merchant cash advance through NDMS is straightforward, often requiring basic business and financial information. Typically, businesses with consistent credit card sales volumes are eligible to access it.

Gift and Loyalty Programs

Benefits of Implementing Gift and Loyalty Programs: NDMS offers customizable gift and loyalty programs that help businesses enhance customer retention and boost sales. These programs can attract new customers and encourage repeat business by offering rewards and incentives.

Customization Options: Businesses have the ability to customize their gift and loyalty programs to suit their brand and clientele, offering choices such as personalized gift cards, loyalty points, and different reward systems.

Fraud Prevention and Security

Security Measures and Compliance: NDMS prioritizes security and compliance, implementing measures such as PCI DSS compliance to protect sensitive cardholder data. They offer tokenization and encryption technologies to secure transaction data and prevent breaches.

Fraud Prevention Tools and Technologies: To combat fraud, NDMS provides a suite of tools including fraud detection algorithms, chargeback management, and secure payment gateways. These tools help businesses minimize the risk of fraudulent transactions and protect their revenue.

In general, NDMS’s services aim to give businesses the resources and assistance required for handling payments effectively and securely, guaranteeing operational efficiency and customer contentment.

Pricing and Fees | National Discount Merchant Services Review

Pricing and Fees | National Discount Merchant Services Review

NDMS provides businesses of all sizes with competitive and transparent pricing options. Below is an analysis of their pricing structure and charges:

Transaction Fees: NDMS employs an interchange-plus pricing model, which is preferred for its transparency and fairness. For card-present transactions, such as swipes, chips, and dips, the rate starts at 1.39% per transaction. For card-not-present transactions, which include e-commerce and remote payments, the rate starts at 1.79% per transaction. These rates are in line with industry standards, where typical fees range between 1.5% to 3.5% depending on the risk and volume of the business.

Monthly Fees: The company charges a monthly service fee of $5, which is relatively low compared to many other providers. Additional monthly charges can include PCI compliance fees and statement fees. These fees are standard within the industry and necessary for maintaining secure and compliant payment processing systems.

Equipment Costs: NDMS provides choices for buying or renting POS terminals and essential equipment with flexibility. Leasing could benefit businesses trying to reduce initial expenses, whereas buying could prove to be a more economical choice in the long run. It is crucial for businesses to assess their long-term requirements before choosing between leasing and purchasing, as equipment costs can differ.

Hidden Fees: One of the notable aspects of NDMS is its emphasis on transparency in pricing. However, as with any merchant service provider, businesses should clarify all potential fees upfront to avoid unexpected costs. Common hidden fees in the industry include early termination fees, batch fees, and additional charges for non-qualified transactions. NDMS generally maintains a clear fee structure, but thorough contract review is always recommended to ensure complete understanding of all financial commitments.

Contract Terms and Conditions

NDMS provides contract terms that are typically in line with industry standards, yet it is important for businesses to understand important details before making a commitment.

Length of Contracts: NDMS typically offers contracts with a standard duration of three years. This is a common length in the industry, providing a balance between stability for the service provider and flexibility for the merchant. It’s important to note that these contracts often include auto-renewal clauses, which can automatically extend the agreement for additional one-year terms unless the merchant actively opts out.

Cancellation Policy: NDMS enforces a policy for early termination that typically involves a $25 fee for account deactivation. Although the fee is lower than some competitors, merchants should still thoroughly examine the terms stated in their agreement. To cancel services, you must inform NDMS in writing before the contract’s renewal date to prevent automatic renewal and related fees.

Negotiation Options: NDMS demonstrates a reasonable degree of flexibility in its contract terms, which can be beneficial during the negotiation phase. Merchants are advised to talk about and bargain over important terms like transaction fees, monthly fees, and equipment costs. Taking proactive steps and staying informed can result in more favorable terms, particularly for businesses that have high transaction volumes or need specialized services. Tips for negotiating better terms include requesting clarity on all potential fees, comparing offers from multiple providers, and leveraging the volume of transactions to secure lower rates or more favorable conditions.

Customer Support and Service

National Discount Merchant Services provides comprehensive customer support to ensure smooth operation for their clients.

Availability and Channels: NDMS offers customer support through multiple channels, including phone, email, and live chat. This multi-channel approach ensures that businesses can get the help they need through their preferred method. Customer support hours typically cover standard business hours, providing timely assistance during critical periods.

Response Time and Effectiveness: NDMS is known for its quick response times and effective problem-solving. Most customer queries are addressed promptly, often within a few hours. The quality of support is generally high, with knowledgeable staff capable of resolving technical and account-related issues efficiently.

Technical Support: For technical issues, NDMS provides robust support to troubleshoot and resolve problems swiftly. This includes assistance with payment processing systems, software, and hardware. While on-site support may not be standard, remote technical support ensures that most issues can be addressed without the need for physical intervention.

User Experience

NDMS is designed to provide a seamless and efficient user experience, from the initial sign-up to ongoing usage of their services. Here’s an overview of the key aspects of user experience with NDMS:

Onboarding Process: NDMS offers an efficient and user-friendly onboarding process. Signing up and getting started with NDMS is straightforward, involving a digital application that simplifies data entry and accelerates the process. New merchants are guided through the initial setup with adequate assistance, ensuring a smooth start. This process involves linking the merchant’s mobile app, POS system, or online store to the NDMS payment gateway, often requiring technical assistance for seamless integration.

Usability of Platforms: NDMS provides a well-designed online dashboard that is intuitive and easy to navigate. The interface is well-organized, enabling merchants to easily handle transactions, create reports, and use different tools. Additionally, the NDMS mobile app extends the functionality of the online dashboard, offering similar features on the go. This mobile app is particularly beneficial for merchants who need to process payments and manage their accounts while away from their primary business location.

Customer Feedback: Feedback from users generally highlights the ease of use and efficiency of NDMS’s platforms. Common praises include the simplicity of the setup process and the robust functionality of both the online dashboard and mobile app. However, some users have noted occasional difficulties in switching between multiple merchant accounts. Case studies and testimonials often commend the prompt customer support and the overall reliability of the services provided by NDMS, reflecting a positive user experience.

Reputation and Reviews

NDMS has garnered positive reviews across various platforms, reflecting its strong reputation. NDMS holds a strong rating of 4.5 stars on Trustpilot, showcasing their high level of customer satisfaction. Customers often commend the effective customer service, user-friendly interface, and dependable payment processing. However, some criticisms include difficulties in account management and occasional issues with dispute resolution.

NDMS has achieved industry recognition through various awards and affiliations. The company complies with industry standards and has partnerships with notable financial institutions, underscoring its credibility and commitment to quality service. Overall, NDMS is respected for its consistent performance and reliability in the merchant services sector.

Competitor Comparison

NDMS competes with several major players in the merchant services industry, each offering distinct advantages and disadvantages.

Comparison with Major Competitors: NDMS’s primary competitors include Square, PayPal, Helcim, and Stax. Each of these companies offers unique features and pricing models that cater to different business needs. For example, Square is renowned for its transparent pricing and ease of use, making it ideal for small businesses and startups. Helcim is praised for its all-in-one merchant account solutions and competitive pricing, while PayPal is well-known for its extensive online payment capabilities and global reach.

Key Differences in Service Offerings: NDMS focuses on providing a broad range of services including credit card processing, POS systems, and mobile payment solutions. Unlike Square, which offers free POS software, NDMS charges a monthly fee. Furthermore, NDMS offers personalized gift and loyalty programs, a unique feature not as widely available as with competitors such as PayPal.

Pricing and Fee Comparisons: NDMS’s pricing is competitive but varies based on transaction types and volumes. One example is Square, which has a straightforward fee system without any monthly charges, while NDMS requires a $5 monthly fee in addition to transaction fees. Helcim employs interchange-plus pricing, which may provide better value for businesses with larger transaction volumes than NDMS’s tiered rates.

Advantages and Disadvantages: NDMS’s unique selling points include its comprehensive fraud prevention tools and robust customer support. On the other hand, competitors such as Stax and Helcim stand out by providing cheaper transaction fees and pricing models that are more adaptable. Square stands out for its user-friendly interface and lack of monthly fees, which can be more attractive to smaller businesses or those just starting.

Overall, while NDMS provides a solid range of services and strong customer support, businesses should carefully compare these features and pricing with those of competitors to choose the best fit for their specific needs​.

Pros and Cons


  • Comprehensive Services: NDMS provides a wide range of payment processing solutions, including credit and debit card processing, mobile payments, and e-commerce gateways.
  • Customer Support: The company’s customer support is highly regarded for being both responsive and knowledgeable, and can be accessed through various channels.
  • Security Measures: NDMS implements robust fraud prevention tools and complies with industry standards, ensuring secure transactions.
  • Customizable Programs: They provide customized gift and loyalty programs that can improve customer retention and satisfaction.
  • Competitive Pricing: Their pricing model, while including some fees, is competitive and transparent, particularly for businesses with high transaction volumes.


  • Contract Terms: A three-year contract with auto-renewal clauses is usually necessary for NDMS, but it may not be suitable for every company.
  • Early Termination Fees: Cancelling services before the end of the contract can incur early termination fees.
  • Complex Fee Structure: Certain users consider the pricing system to be quite intricate due to the inclusion of multiple transaction fees and monthly costs.
  • Occasional Technical Issues: There have been reports of difficulties in managing multiple merchant accounts and occasional technical glitches.
  • Less Transparent Equipment Costs: The expenses associated with renting or buying equipment may not be transparent and could exceed those of certain competitors.

Overall, NDMS offers a reliable and secure payment processing service with strong customer support but comes with certain contractual and cost considerations.


In general, NDMS is a trustworthy and safe option for different types of businesses, especially those with large numbers of transactions. It provides extensive services and excellent customer assistance. Nonetheless, it is important for potential clients to thoroughly examine the terms of the contract and any associated fees. This is appropriate for businesses in retail, online sales, and mobile commerce.

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