Newtek Merchant Solutions (NMS) is best for small businesses such as mobile and e-commerce platforms, small restaurants, and retail shops.
NMS specializes in merchant processing of credit and debit cards and mobile payments processing for standard-risk businesses. The company is also a reseller of EMV-compatible mobile and traditional equipment such as Clover and offers business financing via loans, factoring, and cash advances. The company offers an entire suite of tertiary business services; gift and loyalty cards, ACH processing, Payroll services, web services for website design and app development, QuickBooks integration plugins, and cloud storage.
Setup Fee: $0
Monthly Fee: Undisclosed
Swipe Rate: 1.00% - 4.99%
Keyed-in Rate: 1.00% - 4.99%
Early Termination Fee : $295
NMS is an ISO/MSP of Merrick Bank in South Jordan, Utah, and Westamerica Bank in Santa Rosa, California. NMS is a portfolio company of Newtek, a publicly-traded company investment company (NASDAQ: NEWT) headquartered in New Hyde Park, NY, and was founded in 1998. President and CEO Barry Sloane currently lead the company.
In 2019, the company processed nearly $6 billion in merchant sales transactions.
NMS looks to serve as a one-stop-shop for merchants. Founded in 1998 and publicly traded since 2000, the New York-based company is an "internally managed non-diversified closed-end management investment company." The parent company, Newtek Business Services, is an amalgamation of companies in industries such as IT and cloud computing services, professional business solutions such as payroll and benefits, business lending, and merchant processing.
In 2019, the parent company acquired POS on Cloud, a company that services restaurant, retail, assisted living, parks, and golf course businesses and offers inventory, personnel, customer, and operations technology solutions.
According to the company's website and based on the POS on Cloud acquisition, the company specializes in the restaurant and retail sector. NMS processed merchant transactions with sales volumes of $5.8 billion in 2019, making it one of the larger players in the merchant payment processing ecosystem.
However, the company has a colored past regarding customer complaints and was named in an ongoing FTC lawsuit for "assisting, facilitating telemarketing fraud," according to the Better Business Bureau's website, which gives the company a B+ rating.
Lake Success, NY
Barry Scott Sloane
Merchant Provider Risk Tolerance
Zero setup fee.
Has gift and loyalty cards.
Offers business financing via various methods for equipment.
Provides ACH processing and payroll services.
Website design and app development available to merchants.
Early termination fee.
Accepts standard risk businesses.
Uses outside sales teams and affiliate partnerships.
All important marketing terms are not disclosed.
Public pricing is not available.
Payment Processing: NMS is a reseller of Redwood Merchant Services for merchant processing services.
Point of Sale: The company resells EMV-compliant equipment of First Data, Dejavoo, Clover, PAX, Verifone, and Ingenico.
Tertiary Services: NMS offers mobile payment processing, internet gateways solutions for e-commerce. Based on the various subsidiaries the parent company owns, Newtek looks to establish an ecosystem of cross-selling services to clients of its portfolio companies. These services include business lending by facilitating SBA loans, cash advances of invoice financing. The company also offers Payroll and benefits solutions, web development services, cloud computing, and with the acquisition of POS on Cloud, its own fully-integrated POS offerings are in the works.
Discloses All Important Terms
Public Pricing Available
NMS is a reseller of Redwood Merchant Services for its payment processing. The company's rates are;
Swiped Rate: 1% – 4.99%
Keyed-In Rate: 1% – 4.99%
PCI Fee: $89.95
Early Termination Fees: $295
Merchants must be aware that if they procure e-commerce or online/mobile processing services, they may incur Gateway and Terminal charges, batch fees, and technical support fees. We weren't able to locate disclosures of these charges from NMS.
1.00% - 4.99%
1.00% - 4.99%
Mobile Payment Rate
Virtual Terminal Rate
1.00% - 4.99%
Payment Gateway Fee
Early Termination Fee
PCI Compliance Fee
Equipment Lease Terms
Address Verification Service (AVS)
Account Setup Fee
Gateway Setup Fee
NMS offers a 2-year contract for payment processing through Redwood Merchant Services, followed by a 1-year renewal. The company has a $295 early termination fee.
Some complaints encountered regarding the company’s contract were for account holds. This is a common industry practice that merchant processors have in place to mitigate chargeback risk and is to be expected.
Early Termination Fee
There are complaints against NMS filed with the BBB, however with only two complaints in the last three years and none in the previous one year, the complaint ratio is low for a company that processes nearly $6 billion in transaction volumes annually.
NMS is not accredited with the Better Business Bureau (BBB). The company is rated a B+ with two complaints in the last three years and zero in the previous twelve months. The BBB prominently highlights a lawsuit with the FTC against NMS for processing payments for a telemarketer engaged in telemarketing credit card fraud. NMS was faulted for failing to conduct customer due diligence, such as reviewing the client's telemarketing scripts, which contradicted its standard procedures.
There have been complaints by customers of fund holds. As it's a standard industry practice to appropriate client funds to account for potential chargebacks, we assign a lower weighting to such complaints in the overall assessment of the company's rating information.
3.1 Stars / Based on the opinion of 17 people
Total Online Reviews
Total Online Complaints
If you're in the market for a merchant account provider, be sure to check out our user reviews, our merchant accounts guide and our top popular merchant provider picks