Newtek Merchant Solutions Review

Rates and Fees
80/100
Truth in Advertising
70/100
Consumer Reviews
80/100
Customer Support
70/100
3.5

Best for

Newtek Merchant Solutions (NMS) is best for small businesses such as mobile and e-commerce platforms, small restaurants, and retail shops.

Specializes in

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.

Pricing Summary

Setup Fee: $0

Monthly Fee: Undisclosed

Swipe Rate: 1.00% - 4.99%

Keyed-in Rate: 1.00% - 4.99%

Early Termination Fee : $295

Contract Terms:

3 Years
Visit Newtek Merchant Solutions

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.

Newtek Merchant Solutions Overview

 

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.

Quick Facts

Head Quarters

Lake Success, NY

Year Founded

1998

CEO

Barry Scott Sloane

Employees

50

Merchant Provider Risk Tolerance

What We Like

What We Don't Like

Industries Served

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

Business Types Served

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

Newtek Merchant Solutions Products & Services

 

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.

Newtek Merchant Solutions Payment Processing

  • ACH Check Transactions
  • Credit Card Processing
  • Debit Card Processing
  • EMV Processing
  • Gift & Loyalty Program
  • Mobile Payments App
  • Online Payments
  • Payment Gateway
  • POS Equipment
  • Virtual Terminal

Newtek Merchant Solutions Billing & Invoicing

  • Mobile Payments
  • Online Payments
  • Payment Processing

Newtek Merchant Solutions Advertising & Sales

 
We have found two complaints about NMS' The company advertises via a combination of outside sales teams and affiliate partnerships.

NMS focuses on cross-selling: referral relationships, wholesale solicitations, and financial institutions rather than independent sales agents.

Truth in Marketing

Discloses All Important Terms

No

Public Pricing Available

No

Newtek Merchant Solutions Pricing, Rates & Fees

 

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.

Pricing at a Glance

Pricing Model

Swiped Rate

1.00% - 4.99%

Keyed-in Rate

1.00% - 4.99%

Mobile Payment Rate

Virtual Terminal Rate

1.00% - 4.99%

Monthly Fee

Undisclosed

Payment Gateway Fee

Undisclosed

Batch Fee

Undisclosed

Early Termination Fee

$295

PCI Compliance Fee

$89.95

Equipment Lease Terms

Undisclosed

Address Verification Service (AVS)

Application Fee

Account Setup Fee

$0

Gateway Setup Fee

Undisclosed

Annual Fee

Monthly Minimum

Undisclosed

Statement Fee

Newtek Merchant Solutions Contract & Terms

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.

Contract Length

3 Years

Early Termination Fee

$295

Newtek Merchant Solutions Setup & Support

 

Setup Highlights

  • Documentation / Knowledge Base

Support Highlights

  • Domestic Phone Support (Business Hours)

Newtek Merchant Solutions Complaints, Ratings & Reviews

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. 

Ratings

BBB

B(2 complaints)

Google

N/A

Facebook

3.1 Stars / Based on the opinion of 17 people

Yelp

N/A

Reviews

Total Online Reviews

50+

Total Online Complaints

<10

Lawsuits

1

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