Merchant Data System Review

Rates and Fees
70/100
Truth in Advertising
70/100
Consumer Reviews
65/100
Customer Support
70/100
3

Best for

Small to medium-sized businesses, retail, restaurants, and e-commerce businesses.

Specializes in

Merchant Data Systems is a credit card processing company that specialized in servicing smaller to medium-sized businesses. In specific, most of its accounts were in retail, restaurants, or e-commerce businesses. The company was bought out in 2019.

Pricing Summary

Setup Fee: $0

Monthly Fee: Undisclosed

Swipe Rate: Variable

Keyed-in Rate: Variable

Early Termination Fee : $250+

Contract Terms:

3 Years
Visit Merchant Data System

According to various sources, Merchant Data Systems was a smaller company that had less than fifty employees--around twenty-five. It was founded in 1997 by Drew Freeman, and the company headquarters was in Miami Beach, Florida. it mainly serviced smaller to medium-sized companies in retail, food, and e-commerce.

Merchant Data System Overview

 

Merchant Data Systems was a credit card processing company founded in the '90s that was recently closed and bought out in 2019. It was an older credit card processing company that mainly focused on smaller businesses. The industry rep seemed inadequate overall: while there are not many negative complaints on BBB to see, several other sources cite complaints such as unexpected charges.

Other merchants also complained about things like an overly harsh termination fee as part of its contract. Holds placed on funds and an improperly trained salesforce are other common complaints. Many of its rates, such as an annual fee of $99 for PCI compliance and a $10 statement fee, were standard. Due to the loss of its website and the difficulty of uncovering the information, it's hard to pin down every rate, but it seems most of the pricing it did was at a similar rate to industry standards.

Quick Facts

Head Quarters

Miami Beach, FL

Year Founded

1997

CEO

Drew Freeman - President

Employees

25

Merchant Provider Risk Tolerance

What We Like

What We Don't Like

Industries Served

  • Clothing & Apparel
  • Convenience Store
  • Electronics
  • Gaming
  • Gas Station
  • Moving Companies
  • Personal Service
  • Restaurant / Bar
  • SAAS
  • SEO & SEM Services
  • Thrift Store
  • Web Design Services

Business Types Served

  • Ecommerce
  • High Risk
  • High Volume
  • Information
  • Mobile
  • Mom & Pop
  • MOTO
  • Online
  • Retail / Card Present
  • Small Business
  • Wholesale

Merchant Data System Products & Services

 

The exact specifics behind what services and products Merchant Data Systems offered are hard to determine, but there is some information about it. They offered services like credit card and debit processing, cash advances for small businesses, electronic check conversions, gift card, and loyalty programs, and POS equipment sales as well as leasing.

The exact terms and rates of these services are hard to obtain, but we at least know the general products that Merchant Data Systems offered.

Merchant Data System Payment Processing

  • Check Guarantee
  • Credit Card Processing
  • Debit Card Processing
  • eCheck & ACH Processing
  • Gift & Loyalty Program
  • Merchant Cash Advance
  • POS Equipment

Merchant Data System Billing & Invoicing

  • Mobile Payments
  • Online Payments
  • Payment Processing

Merchant Data System Advertising & Sales

 
Merchant Data Systems was an ISO of Wells Fargo and Deutsche Bank AG. it had a variety of complaints leveled against it while it was active. The majority of these related to fraudulent charges, complaints of huge termination fees, and in particular, salespeople promised lower rates than what was offered when the merchant signed the contract.

In general, however, its pricing and provided rates stayed relatively consistent. it did not provide false things outright or go out of its way to try and fleece the merchants who worked for it. its pricing was variable, with swiped and keyed-in rates not staying consistent. it had a minimum early termination fee of at least $250 with a PCI compliance fee of $99 annually. Its monthly minimums and other rates and fees are unknown.

Truth in Marketing

Discloses All Important Terms

No

Public Pricing Available

No

Merchant Data System Pricing, Rates & Fees

 

Much of the information surrounding Merchant Data Systems' rate on swiping or keying-in credit and debit cards are hard to locate. Not only is its website defunct, but the company who bought it out doesn't have much information stored on its website either.

Due to the following industry standards on other fees and costs, it can safely be expected that its rates for card processing would fall in the standard rate of 1-5%, usually with an additional flat rate added onto each transaction. Getting more information than this is difficult. 

Pricing at a Glance

Pricing Model

Unknown

Swiped Rate

Variable

Keyed-in Rate

Variable

Mobile Payment Rate

Virtual Terminal Rate

Variable

Monthly Fee

Undisclosed

Payment Gateway Fee

Variable

Batch Fee

Variable

Early Termination Fee

$250+

PCI Compliance Fee

$99

Equipment Lease Terms

Variable

Address Verification Service (AVS)

Application Fee

Account Setup Fee

$0

Gateway Setup Fee

Variable

Annual Fee

Variable

Monthly Minimum

Variable

Statement Fee

$10

Merchant Data System Contract & Terms

However, there is little more information on the contracts that Merchant Data Systems used to employ. it used a standard three-year-long deal that automatically renewed if not canceled at the end of the three years. Its early termination fees were mostly, noticeably harsh, stating $250 for each year left in the contract, or the costs it would have been paid based on the volume in one month in the highest twelve-month period, whichever was more significant.

This could result in a far larger total termination fee than many other organizations use, and many merchants complained about this.

Contract Length

3 Years

Early Termination Fee

$250+

Merchant Data System Setup & Support

 

Setup Highlights

  • Live Online (1-on-1)

Support Highlights

  • Domestic Phone Support (Business Hours)

Merchant Data System Complaints, Ratings & Reviews

Most common complaints about Merchant Data Systems revolve around its sales team, independent contractors, and offered low rates it couldn't lock-in. Other common complaints referred to fraudulent charges, high termination fees, and poor customer service because the merchant was filing the complaint. Merchant Data Systems tried to deal with these complaints and refunded a merchant in one case of a disagreement about the contract that it had signed.

No lawsuits involving Merchant Data Systems can be found. BBB has it rated at an A+, with one closed complaint in the last 12 months. It was in business for almost 23 years but was not accredited by BBB. 

Ratings

BBB

A+(2 complaints)

Google

2 Stars / 14 Reviews

Facebook

No Rating yet

Yelp

N/A

Reviews

Total Online Reviews

50+

Total Online Complaints

10+

Lawsuits

None

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