National Discount Merchant Services Review

Established in Los Angeles, National Discount Merchant Services is a merchant account provider suitable for medium to large-scale companies since 2002. Headquartered in Manhattan Beach, California, the provider is a verified ISO/MSP of Chesapeake Bank and Elavon. It prides itself on offering direct credit card payment processing to national and offshore businesses. Here is a detailed National Discount Merchant Services review concerning the benefits and drawbacks of choosing it as your account provider.

NDMS has been in business since 1998 but officially initiated its payment processing services in early 2000. It caters to industries of all types and sizes, serving multiple B2B, high-risk, retail, wholesale, insurance, taxi services, restaurants, marketing, property management, healthcare, gaming, education, and entertainment businesses. Many mobile, e-commerce, and remote companies benefit from its technology-driven solutions to simplify their day-to-day payment processing tasks. The provider also initiates its services for insurance companies, non-profits, and government organizations.

The payment processor promises to provide unparalleled consumer support and prioritize the client’s needs. It has partnered with several well-grounded companies to ensure a secure and efficient platform for merchants to enjoy seamless transactions.

Products and Services

NDMS offers an array of services and equipment to facilitate credit and debit card processing for all major brands. It purveys multi-currency acceptance, e-check processing, and real-time analytics. Users can access fraud prevention and chargeback management tools to ensure secure transactions. They are offered tech-savvy terminals, efficient payment gateways, and PCI-compliant POS systems to accommodate domestic and international customers.

NFC payment facilities, loyalty programs, and secure vault technology are some benefits of choosing NDMS.  Here is an overview of the services available to the company’s consumers;

Payment Gateway

According to National Discount Merchant Services reviews, users are offered USA ePay, NMI, PaidYET, Authorize.NET, aPay+, PayPal, and CyberSource payment gateways. The standard features include a merchant console that helps consumers track account statements, review each transaction, and download reports.

Merchants can utilize their existing computers as payment terminals and integrate with the desired shopping carts to accept online payments. The merchant seal visible on the website instills confidence in customers.

POS System

The company purveys a full range of easy-to-setup POS systems to match the needs of restaurants, retail, and mobile businesses. The NDMS mobile POS apps are compatible with Android, iOS, and Windows, enabling merchants to accept payments on the go. The retail and restaurant-oriented POS systems are equipped with the required hardware and can be used in multiple locations.

Payment Links

Consumers can use a payment link to send invoiced through text or email that customers can click on to send payments. Since payment links are PCI-compliant, this method is faster and more secure than others. Users can customize the invoices and access multiple features to enhance convenience.

Auto Updater

National Discount Merchant Services reviews show that the provider’s automatic billing updater service enables businesses to maintain consistency. It automatically updates customers’ credit card information and account database to eliminate delays. This way, clients can avoid declined payments, ensure recurring transactions, and increase cash flow.

Security Features

With the security vault technology, businesses can access customers’ credit card information without worrying about security breaches. Since this data is secured by encryption, it eliminates the possibility of fraud or theft. The sensitive information can be used to process recurring payments but cannot be decrypted or used in fraudulent activity. The company purveys AVS, CSC, and 3D-Secure facilities to protect cardholders’ data with an additional security layer.

Reporting and Analytics

NDMS online reporting services give a detailed view of a company’s payment operations. Merchants can view sales trends and transaction data, identify fraud and chargebacks, and resolve online disputes. Users can customize reporting groups to get refined results. The data can be downloaded, printed, or exported to any software.

Multi-Currency Acceptance

As deduced from National Discount Merchant Services reviews, the payment facilitator offers processing in over 150 currencies, enabling merchants to expand their business to international customers. Generally, when shopping online for international merchandise, customers can get confused with the final price in the unfamiliar currency and abandon the purchase. The company’s Foreign Exchange Cash Management facility allows businesses to display the price in the customer’s local currency and reduce chargeback risks.    

Rates and Contract

NDMS’s official website does not list its contract or pricing information. Most of the provided information is gathered from reviews from consumer protection websites. Here is an overview of its rates and standard agreement.

Contract Terms

The provider offers variable contract terms depending on the client’s business. Since NDMS does not advertise month-to-month agreements, and there are no complaints about long-term contracts, it is safe to assume that merchants are bound to a three-year arrangement. There is no information to clarify the early cancelation or PCI compliance charges.

Pricing Structure

According to National Discount Merchant Services reviews, clients can choose between tiered and interchange-plus pricing models. However, most high-risk companies are signed up with interchange-plus pricing.

Processing Fees

Apart from a $5 monthly fee, the provider does not offer insight into its processing charges. A standard NDMS agreement costs 1.39% per transaction for retail and 1.79% for e-commerce transactions. There is also a mid-qualified and non-qualified downgrade fee of 0.75% and 1.50%.

The company advertises its virtual terminal and payment gateways, but the rates are not disclosed. Merchants should expect additional transaction rates and equipment leases.

Consumer Support

NDMS has reserved a general support line available during office hours and a customer service email address. There is a support form and knowledge base on the website. Users are also offered recorded video training for guidance.

Marketing and Sales

NDMS counts on ISOs, referral programs, and telemarketing to promote its brand. It does not offer all the information, and there is a hint of misleading rate quotes. The provider discloses its mid-qualified and non-qualified rates in a small text barely readable under its self-praise. It tricks merchants into expecting the rates to be lower than they will pay. 

National Discount Merchant Services Reviews and Complaints

NDMS has maintained a low complaint rate, and no negative reviews suggest it scams its clients. No lawsuits have been cited in the last few years, and the provider seems reasonable. However, some complainants hint at being misled by NDMS and have left negative reviews about its fee disclosure practices.

Sub-Par Consumer Support

The company’s customer service is typically standard and uncompetitive compared to the top-rated payment facilitators with excellent consumer support. It is unclear if the available helpline leads customers to an in-house team or if the provider outsources its facilities. Overall, the options are inadequate.

Confusing Sales Strategies

Even though NDMS clarifies its rate quotes, it practices misleading marketing strategies by hiding its non-qualified and mid-qualified rates under a pile of text. It often confuses clients into believing they are offered low rates, but they end up paying significantly more.  The company instills unrealistic expectations by advertising appealing rates that are not the same for all businesses. 

Concealed Information

Several complaints arise due to the provider’s non-disclosure practices. As deduced from National Discount Merchant Services reviews, the company has not revealed its annual charges and most of its fees. Merchants are unaware of the equipment lease terms, gateway charges, and technical support fees. NDMS contract terms, compliance policies, and conditions of early cancelation are also undisclosed.

Unsuitable for Small Businesses

Even though NDMS advertises its payment solutions for all business types, it is unfit for small-scale companies. The provider’s processing rates and the long list of fees are too expensive for businesses processing low volumes. Overall, NDMS is too pricey for most business types.

Employee Complaints

Apart from a few positive National Discount Merchant Services reviews, former workers have posted negative feedback for NDMS on employee protection websites. They have complained about micromanagement, lack of bonuses, and an aggressive work environment. Employees have also stated that the provider offers one-size-fits-all services, and its claim to provide tailored solutions is a scam. Moreover, the sales managers are never reachable when needed.

BBB Ranking

National Discount Merchant Services is not accredited by Better Business Bureau and does not have a BBB profile. Hence, a BBB rating does not qualify as a reliable source to gather information for the company.

Final Words

The payment processor is generally a decent enough service provider. It offers a range of services to fulfill the requirement. However, it cannot be trusted completely. As deduced from this National Discount Merchant Services review, most merchants find it too expensive for their company. The provider does not offer transparency and conceals important details from clients, leading to an unpleasant experience. Its sales practices are unreliable and often mislead consumers.

Small companies are better off with a payment facilitator that offers price transparency and facilitates an affordable merchant account with reasonable processing rates.

High-risk businesses looking forward to signing NDMS are encouraged to hire a third-party auditor to identify hidden charges. They must request complete disclosure and ask necessary questions to understand the contract terms.