Wells Fargo Merchant Services Review
Wells Fargo Bank was founded in 1852, but the merchant services division is far more recent. That was started in 1971, and First Data is the processor behind WFMS. Some 100 odd employees are used in this division, whereas Wells Fargo has over 200,000 employees on its payroll. Its merchant services division mainly caters to mom and pop and small businesses. Its headquarters is in San Francisco, California.
|Swipe Rate||2.60% + $0.15|
|Keyed-in Rate||3.40% + $0.15|
|Early Termination Fee||$500+|
|Contract Terms||3 Years|
Wells Fargo Merchant Services Overview
Wells Fargo is a well-known bank that is one of the largest and oldest banking institutions in the United States. While having a massive size, a tremendous amount of branches and workers, and a ridiculous total asset value, Wells Fargo has been involved in several recent lawsuits and controversial behavior in the past decade or two. Hence, its reputation is on the lower side. Its Merchant Services division is mainly focused on small businesses. Still, the actual bank itself deals with almost any level of transaction or financial institution–personal accounts, business accounts, other banks, and more. Its pricing model is based on a three-year agreement, with a generic swipe and key-in rate that goes off a percentage plus a small fee.
Wells Fargo Merchant Services Pros & Cons
Wider potential customer base
Robust security features
Fees are not transparent
Two contractors are involved in providing one service
Wells Fargo Merchant Services Products & Services
Point 1: Credit and Debit Processing, Contactless Payment
Wells Fargo Merchant Services offers debit and credit card processing, but recently as of COVID-19, it has also started to offer Contactless Payment. The fast funding feature of WFMS means that the funds in the merchant’s account can be available as quickly as the very next day. Other processors sometimes take several days to credit a merchant’s account with a transaction fully. Some businesses may find this type of processing to suit their company better.
Point 2: All-In-One POS System, Mobile Payment Types
WFMS also offers an all-in-one POS system via Clover. There are a variety of different terminals, card readers, and other devices to choose from to process the payment. Some are better than others, but the number of choices means a merchant can choose which fits their business the best. In addition to this, mobile payment support is offered, so things like Apple Pay, Google Pay, Samsung Pay, and more are usable in a business with WFMS.
Point 3: EMV Chip Card Technology
Wells Fargo also offers EMV Chip Card technology, a far safer and more secure way of processing payments for consumers. EMV Chip technology makes it so that the information is changed with each transaction. This makes fraud incredibly difficult to pull off and safeguards any kind of data or card detail theft that could occur.
Wells Fargo Merchant Services Advertising & Sales
WFMS advertises and sells its services through the use of outside sales agents. These agents are fully employed and are not independent contractors, which is what many merchant account providers use. Some merchants have complained about deceptive sales tactics or the nondisclosure of essential contract items by these sales agents. Wells Fargo also uses its physical banking branches to offer merchants its processing services. Some merchants also complain about hidden fees that seem to randomly appear from Wells Fargo Merchant Services.
Truth in Marketing
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
|Public Pricing Available||No|
Wells Fargo Merchant Services Pricing, Rates & Fees
The pricing for the services is on the higher end, but it is not always clearly available. Some digging generally has to be done to find the rates. Wells Fargo Merchant Services charges 2.60%+$0.15 for a swiped card and 3.40%+$0.15 for a keyed-in card. Its virtual terminal rate falls between 1% and 5%. It has a $9.95 monthly fee, or a $24.95 monthly fee if you are an eCommerce business. Its PCI Compliance fee is not disclosed.
Pricing At A Glance
|Pricing Model||Interchange Plus, Flat Rate|
|Swiped Rate||2.60% + $0.15|
|Keyed-in Rate||3.40% + $0.15|
|Mobile Payment Rate|
|Virtual Terminal Rate||1.00% - 4.99%|
|Payment Gateway Fee||Undisclosed|
|Early Termination Fee||$500+|
|PCI Compliance Fee||Undisclosed|
|Equipment Lease Terms||48 Months, (locked)|
|Address Verification Service (AVS)|
|Account Setup Fee||$0|
|Gateway Setup Fee|
|Monthly Minimum||$9.95 in-person; $24.95 online|
Wells Fargo Merchant Services Contract & Terms
Wells Fargo Merchant Services offers a three-year standard contract, generally. Its early termination fee is noticeably high and has been the subject of more than one complaint, with the fee ringing in at $500 if the merchant has processed under $1,000,000 and $500 plus the merchant’s most expensive month times six if they have processed over $1,000,000. All of these fees are per location, so this can add up very fast. Some of the terms of the contract are subject to change, which has also been the subject of merchants’ complaints.
Wells Fargo Merchant Services Setup & Support
Wells Fargo Merchant Services is a regular merchant account provider and not an aggregate or any other kind, so it generally uses standard underwriting procedures. An online application is also available, but things like your credit history, personal history, 3-6 months of bank statements, and a general overview of your business are almost certainly going to be requested to be able to set up an account with WFMS.
WFMS has 24/7 customer support if there are any issues, and a contact form is available. Secure email contact is another method of support. A relationship manager will be assigned to your business when you get an account with WFMS, but still, complaints have been made about the customer service of WFMS. Merchants complain about poor customer service or not even being able to speak to anyone at all.
Wells Fargo Merchant Services Complaints, Ratings & Reviews
Wells Fargo has been involved in several lawsuits in just the past decade alone, and some of them were class-action. It has been involved in cases of fraud and other suspected criminal activity. Thus, its Merchant Services division is also subject to some of this legal action and has had many complaints.
Specifically, merchants complain of jacked-up rates, poor customer service, and mark-ups on specific fees. As of August 2017, Wells-Fargo is involved in a class-action lawsuit involving these accusations. It has merchants sign contracts they don’t understand and proceed to jack-up rates in a very predatory manner. The case is unresolved.
|BBB||F (3,247 complaints)|
|Yelp||1.5 Stars / 4 Reviews|
|Total Online Reviews||300+|
|Total Online Complaints||80+|