Wells Fargo Merchant Services Review
2.20% + $0.15
$9.95 to $24.95
$112 to $1,799 per device
Pros and cons of Wells Fargo Merchant Services
| Pros | Cons |
|---|---|
If you’re already banking with Wells Fargo, you may find it simpler to keep all of your accounts at the same bank. Relatively straightforward payment structure, so you can estimate fees and costs ahead of time. A variety of point-of-sale hardware options, with prices ranging from $112 to $1,799 plus tax. | You’ll need to pay a monthly service fee regardless of your processing activity. Depending on the type of business you have, and how many transactions you process, other companies may offer lower rates. There are more expensive rates for B2B businesses. |
Wells Fargo Merchant Services review
As a small business owner, you’ll want to find the best way for your business to accept payments from your customers and clients — that’s where merchant services accounts come in. Merchant services accounts are business bank accounts that enable you to be paid from customers via credit and debit card transactions.
If you’re accepting payments through your business, you’ll likely also need to consider which Point of Sale (POS) system you’ll want to use. A POS is like a cash register: It’s the hardware and software where the transactions take place. When choosing which POS you want to use, keep in mind that a good POS will allow you to take payments efficiently, easily track inventory, provide security for customer data and give you data about purchase history and trends.
In particular, Wells Fargo offers a tiered pricing option that’s based on a per transaction rate, monthly service fee and total point of sale system cost.
Based on the current rates, if most of your sales are in-person transactions, Wells Fargo could be a good option. Those who make over $40,000 per month in in-person sales will pay the lowest per-transaction rates, but even if you make $15k or less monthly, the rates you pay will at least be on par with competitors like Square. However, if the majority of your sales take place online, you‘ll likely be able to find lower rates elsewhere.
Who is Wells Fargo Merchant Services for?
- Somebody who already has a business bank account with Wells Fargo and prefers to keep all of their accounts at the same institution.
- A business owner who wants to estimate their payments ahead of time. Wells Fargo’s relatively simple pricing structure makes your charges fairly predictable.
- Businesses that primarily have in-person transactions and sell directly to consumers. These types of businesses will have access to the lowest rates offered through Wells Fargo’s pricing structure.
Wells Fargo Merchant Services fees and rates
Per-transaction rates
Business to consumer transaction fees
Business-to-consumer (B2C) refers to a type of a business that sells products or services directly to the consumer, such as a restaurant, a company that offers gardening services or a retail store, to name a few examples.
| Total monthly processing volume | Per tap, dip, swipe transaction | Per online or keyed-in transaction |
|---|---|---|
| Up to $14,999.99 | 2.60% + $0.15 | 3.40% + $0.15 |
| $15,000 to $39,999.99 | 2.40% + $0.15 | 3.20% + $0.15 |
| $40,000 and up | 2.20% + $0.15 | 3.10% + $0.15 |
Business to business transaction fees
Business-to-business (B2B) is a type of company that sells its goods or services to other businesses, such as a distributor, a wholesale supplier of equipment or a sales consultant that offers advice to other businesses.
| Total monthly processing volume | Per tap, dip, swipe transaction | Per online or keyed-in transaction |
|---|---|---|
| Up to $14,999.99 | 2.60% + $0.20 | 3.99% + $0.20 |
| $15,000 to $39,999.99 | 2.50% + $0.20 | 3.75% + $0.20 |
| $40,000 and up | 2.40% + $0.20 | 3.50% + $0.20 |
Monthly service fees
You should also be aware of monthly service fees when using Wells Fargo Merchant Services, which will vary depending on payment method. This service fee is in addition to your monthly transaction volume. The positive news is that in-person payments are much lower than online payments, but if your business accepts all methods listed below, you’ll be paying nearly $60 a month in service fees alone.
| Payment method | Monthly service fee |
|---|---|
| In-person payment (tap, dip or swipe) or POS Clover systems | $9.95 per location |
| Through your website’s e-commerce online shopping cart | $24.95 |
| Through a virtual terminal by keying customer card information | $9.95 |
| Through third-party payment software | $14.95 |
This fee covers details such as 24/7 live support, reporting and analytics, advanced risk and fraud monitoring, tools for dispute management and, if you have e-commerce payment processing, the fees that cover payment gateway access.
Point of sale systems
Keep in mind that you’ll also need to consider hardware costs in addition to the transaction rates and monthly service fees. When it comes to POS systems, here are the Wells Fargo Merchant Services payment processing options available to choose from.
Keep in mind that Clover systems may have additional software fees. While some devices offer free software for the first device, there may be additional monthly fees. These generally range from about $11.95 to $89.95 per month, though it can vary quite a bit depending on how many POS devices you use, what type of business you have and what features you’d like. For example, if you’re bundling in a Clover website, it’ll cost more.
| Options | Description | Device purchase price |
|---|---|---|
| FD150 Terminal | Touch screen device with a PIN pad, contactless reader and a printer. Used for in-person or manual keyed-in payments. | $495 plus tax |
| Clover Flex | Hand-held device accepting tap, dip and swipe payments with a virtual terminal. | $649 plus tax |
| Clover Go | Pocket-sized card reader that allows you to take payments using your own device, like an iPhone. Includes a virtual terminal | $112 plus tax |
| Clover Mini | Small countertop device that includes a compact touchscreen and swivels for customer interactions | $885 plus tax |
| Clover Station Solo | Single-screen system for larger countertops that includes a card reader and cash drawer | $1,720 plus tax |
| Clover Station Duo | Double-screen system that is designed for brick-and-mortar stores like restaurants and retail businesses | $1,799 plus tax |
Wells Fargo Merchant Services eligibility requirements
To apply for payment processing with Wells Fargo, you’ll need to call 1-866-609-3378, request a call online or visit a branch. While Wells Fargo used to allow you to apply online, that’s no longer an option.
Required documents
Wells Fargo doesn’t list its required documents, but to speed up the process you may want to be ready with:
- Business legal name, address and phone number
- Business tax identification number
- Country and state where your business registration is located
- Estimated annual business sales revenue
- Personal information about the account applicant
- Articles of incorporation, if applicable
- Bank account information, including a voided check
Wells Fargo will also review your personal credit with a soft credit check when you apply for a Wells Fargo Merchant Services account.
Alternatives to Wells Fargo Merchant Services
| Wells Fargo Merchant Services | Square | Helcim | |
|---|---|---|---|
| POS hardware price | $112 to $1,799 | Free to $799 | $99 to $329 |
| Monthly service fee (not including software fees) | $9.95 to $24.95 | $0 to $29+ | No monthly fees |
| Transaction rates |
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Wells Fargo Merchant Services vs. Square
If you’re looking for a little more flexibility, Square might be a good option to consider. While Wells Fargo’s lowest monthly service fee is $9.95, Square offers a free plan where you only pay when you receive payments, as well as custom plans that are designed to meet the specific needs of your business and priced accordingly.
Square also has a wider range of hardware options, with lower starting prices. Options include a free Square reader that can plug into a headphone jack or iPhone Lightning port. If you want to take contactless and chip payments, Square’s hardware starts at $59.
Wells Fargo Merchant Services vs. Helcim
If you’re shopping for a company where you don’t have to pay monthly fees, Helcim might be a good option for you, as it doesn’t charge any setup fees or monthly service fees. You only pay for the transactions that you process. This is in comparison to Wells Fargo’s lowest monthly service fee of $9.95. Instead, Helcim uses “Interchange Plus” pricing for each transaction. This is just a fancy way of saying that instead of paying a flat, per-transaction rate, your fees will vary based on the type of card used and whether it’s an in-person or online transaction, as well as your industry.
Helcim currently offers a card reader for $99 that you can connect to your own device, like an iPad, and a standalone smart terminal priced at $329. Businesses seeking more POS options may be better off with Wells Fargo Merchant Services or Square, as they offer more variety.