Best for
Merchants who want a do-it-all payments solution and are okay with long-term contracts
Specializes in
Merchant accounts, gateways & shopping carts, POS software, mobile processing, loyalty & gift card programs, terminal leases
Pricing Summary
Setup Fee: $0
Monthly Fee: Undisclosed
Swipe Rate: 1.00% - 4.99%
Keyed-in Rate: 1.00% - 4.99%
Early Termination Fee : Up to $900
Contract Terms:
Smart Choice Payments was a merchant services provider that was rolled into the Velocity Merchant Services (VMS) brand in 2019. Velocity is a DBA of Smart Choice Payments, Wholesale Merchant Processing, and First Choice Payments. It services standard-risk merchants with a wide variety of payment solutions, including POS software, merchant accounts, virtual terminals, and payment gateways.
Velocity Merchant Services is based out of Portland, Oregon, and led by Todd McCartney. The company services standard-risk merchants who operate in industries like:
As part of Velocity, Smart Choice Payments utilizes a flat-rate pricing model. But it doesn’t publish its rates online, so it’s assumed they vary from merchant to merchant.
The company is a bit of a mixed bag when it comes to reviews. Some merchants complain about Velocity’s deceptive sales reps and altered contracts. But there’s also a fair amount of positive reviews available online. However, the total number of reviews for the company seems abnormally high, which could be evidence of gaming the system.
Head Quarters
Beaverton, OR
Year Founded
2013
CEO
Todd McCartney
Employees
50
Merchant Provider Risk Tolerance
Online and Mobile Payment Processing
Velocity provides everything that a merchant needs to accept payment for products online and via mobile phones. The company offers merchant accounts, gateways and shopping carts, and a mobile processing solution called Clover Go.
Velocity also has a website development service, which promises to supply merchants with technology that will improve their online payment services.
POS Software
Merchants can also get POS software through VMS. The company uses a Clover POS system, which has a pretty solid reputation. But merchants should be careful about leasing a terminal through Velocity. The company has had several reviews that indicate it could use predatory practices with hardware leases.
Loyalty & Gift Card Programs
Velocity can also help you set up a loyalty or gift card program. The company’s offerings include the ability to sell and accept gift cards, as well as the ability to issue store credit. The Clover POS app also has some marketplace loyalty programs integrated into it that could be useful.
Discloses All Important Terms
No
Public Pricing Available
No
Velocity doesn’t disclose any pricing or fees information on its website. Instead, the company directs you to contact one of its reps directly if you want to start using one of its services. This can be pretty annoying to a merchant who’s busy and doesn’t have time to spend hours on communications just to figure out pricing information.
There’s some information online that suggests VMS offers a base rate of 1.29% with a $0.15 per transaction fee. But what sales reps don’t say is that this is on top of interchange rates. So you may end up paying closer to 3% in fees. Take these numbers with a grain of salt, because they’re just internet rumors. But they are worth considering given the absence in the availability of other pricing information from VMS.
Pricing Model
Flat Rate
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
Up to $900
PCI Compliance Fee
$4.95/mo
Equipment Lease Terms
48-month (locked); $3,900 (Equipment Lease Cost)
Address Verification Service (AVS)
Application Fee
Account Setup Fee
$0
Gateway Setup Fee
Undisclosed
Annual Fee
Monthly Minimum
$25
Statement Fee
$10
Velocity favors a three-year contract with an automatic renewal clause. This is a fairly standard practice in the industry. But it’s one that’s unfavorable towards merchants who value flexibility. Additionally, the company has very high early termination fees. These can be as high as $900, depending on how far along the contract is when the merchant cancels.
Contract Length
3 Years
Early Termination Fee
Up to $900
Velocity Merchant Services currently has an A+ rating with the Better Business Bureau. But the company also has numerous negative reviews on other websites. The majority of these complain about altered contracts, deceptive sales practices, and poor customer service.
There are also some positive reviews about Velocity. But we’re a bit dubious about their credibility. There seems to be a larger number of reviews than you would expect to see from a merchant services provider that is Velocity’s size. This can be a sign of attempting to game the reviews in the company’s favor, though this isn’t confirmed in any way.
BBB
A+(8 complaints)
1.9 Stars / 34 Reviews
2.5 Stars / Based on the opinion of 11 people
Yelp
N/A
Total Online Reviews
90+
Total Online Complaints
50+
Lawsuits
None
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