Kotapay was founded in 1993, as InterceptEFT, in Fargo, North Dakota. It services thousands of clients each year, and over 70,000 businesses use it as a processing solution. It employs 21 people. It primarily focuses on secure online transactions and ACH processing/direct deposit. In 2018, it was acquired by First International Bank & Trust and rebranded as kotapay.
|Early Termination Fee||$250|
|Contract Terms||3 Years|
Kotapay is an older credit card processing company that focuses on secure online processing. It specializes in ACH processing, direct deposit, standard forms of card processing, and POS services and terminal services. its industry focus is on retail, e-commerce, and high volume stores. It also serves mom & pop style businesses and businesses on the smaller end.
its overall reputation is positive. It has almost no complaints available to be found, which is strange for a company with a history of about 27 years. It also has a noticeable lack of positive reviews. Considering there is not a list of complaints about frauds or scams, however, it’s likely that kotapay does legitimate, quiet business, and no one has a reason to speak out about it–positively or negatively.
its pricing model isn’t public, but a copy of one of its more generic contracts is available online. It seems to have reasonably standard rates, including a locked-in contract with an early termination fee of $250.
Kotapay Pros & Cons
Kotapay Products & Services
Point 1: ACH Processing and Direct Deposit
Kotapay offers ACH Processing and direct deposit services. It integrates these services entirely into your business and makes it convenient for the merchant to use it. ACH is useful in a variety of different circumstances. Direct deposit can be utilized for all kinds of things, but many merchants use it for payroll, bonuses, or commissions. Direct deposit can also be used for tax purposes or business to business transactions.
Point 2: Credit/Debit Processing, Secure Transactions
Kotapay also offers traditional credit and debit card processing. These transactions, done securely, can be done through online means, a POS device, or a terminal. One time or recurring payments are both available as options. All of its technology and services are PCI compliant. Most of this is done through its payment portal.
Point 3: Software Solutions to Processing
Most of Kotapay’s processing solutions are done through its software. It has a variety of different services and software that it offers to merchants. Most of these services are provided through its payment portal software, Jolokia, or its ACH transactions portal, BankEFT. It also has numerous other software useful for other financial purposes, such as ACH Bind or ACH Encrypt, which assist with marketing, file editing, file conversion, and general security purposes.
Kotapay Advertising & Sales
Kotapay appears to do the majority of its advertising and its sales through independent contractors. As kotapay doesn’t seem to have many online complaints that are possible to locate, the thousands of merchants it services don’t have a problem with this. Kotapay is a division of First International Bank & Trust and seems to do honest business most of the time. No outstanding complaints, cases of fraud, or declaration of scams are common on the internet. There are almost no negative reviews of kotpay.
its pricing isn’t transparent, but it features a contract of an unspecified length with a $250 termination fee with a minimum upkeep fee of $25 a month. Several other various kinds of fees may also apply. Most of it seems clearly outlined on the form available.
Truth in Marketing
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
|Public Pricing Available||No|
Kotapay Pricing, Rates & Fees
Not every aspect of Kotapay’s pricing is made clear, but a few things are available to the public. It has a contract that is of unspecified length, featuring a $250 early termination fee, a $25 minimum monthly fee, and other fees depending on what kind of services you receive from it. It also has costs based on chargebacks and other issues that a merchant can come into contact with. Some of its rates and additional fees appear to depend on what kind of business you are and what volume of transactions you process regularly.
Pricing At A Glance
|Pricing Model||Unknown, Flat Rate|
|Mobile Payment Rate|
|Virtual Terminal Rate||Variable|
|Payment Gateway Fee||Variable|
|Early Termination Fee||$250|
|PCI Compliance Fee||Variable|
|Equipment Lease Terms||Variable|
|Address Verification Service (AVS)|
|Account Setup Fee||$0|
|Gateway Setup Fee||Variable|
Kotapay Contract & Terms
Kotapay uses a multi-year contract of unspecified length with a $250 early termination fee, a minimum $25 monthly fee, and additional fees if you tack on extra services. It also has a chargeback fee of $15. The rest of its contract covers the type of business that the merchant has and the volume of business it processes. The specifics of that business defines the rates and terms after that.
Kotapay Setup & Support
Kotapay, like most merchant account providers, requires a decent bit of information to begin the process of setting up your service. It most likely has a traditional underwriting process, which means it will ask for things like 3-6 months of bank statements, how much business you do, your credit history, your personal history, and more.
Kotapay has a customer support number as well as a contact form, which is relatively standard. However, by the lack of negative reviews it has, its customer service seems like it’s enough for the merchants that it services.
Suppose you’re considering applying to kotapay to have it process your payments for you. In that case, it’s best to have the previously mentioned financial documents on hand to begin the setup process. It may take up to several weeks the underwriting process concludes, and you’re able to take debit and credit cards. Traditional underwriting processes usually take this long.
Kotapay Complaints, Ratings & Reviews
Kotapay is unlike most credit card processing companies in that it has almost no negative cases against it. No instances of fraud, no notable complaints about fees or unauthorized charges, and virtually no cases of poor customer service. The one negative review online available is about rude customer support, but besides that, its record is spotless.
Kotapay has no current active lawsuits. its last name, InterceptEFT, had a case that it dealt with. It was a civil action lawsuit filed in June of 2016. It was from the Consumer Financial Protection Bureau. Still, a judge dismissed the charges as lacking evidence, stating the CFPB ‘did not provide sufficient factual allegations to back up its conclusory statements.’
|3 Stars / Based on the opinion of 2 people|
|Total Online Reviews||50+|
|Total Online Complaints||<10|