Wells Fargo Merchant Services: 2023 Review
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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 $675 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. |
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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) 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 quickly and easily, provide security and give you data about your business.
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 straightforward pricing structures make your charges fairly predictable.
- Businesses that have high total monthly processing volumes of 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 |
|---|---|---|
| $0 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 |
|---|---|---|
| $0 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 a 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.
| Options | Description | Cost |
|---|---|---|
| FD150 Terminal | Counter-top 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. | $675 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 |
Wells Fargo Merchant Services eligibility requirements
Some business requirements to apply for payment processing with Wells Fargo online include:
- A business checking account with Wells Fargo
- Annual business sales of $750,000 or less
- More than 50% ownership in the business
Required documents
You should also be ready to provide the below information while filing out your online application:
- 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
- For e-commerce applications, your business website URL
Wells Fargo will also review your personal credit 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 $675 | Free to $799 | $109 |
| Monthly service fee | $9.95 to $24.95 | $0 to $29 | No monthly fees |
| Transaction rates | Starting at 2.20% + $0.15 Up to 3.99% + $0.20 | Starting at 2.60% + $0.10 Up to 3.50% + $0.15 | Varies based on industry, processing volume and interchange rates |
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 what’s called “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, whether it’s an in-person or online transaction, as well your industry.
Helcim currently only offers a card reader for $109 that you can connect to your own device, like an iPad, although the company plans to introduce a smart terminal priced at $349 in summer 2023. Businesses seeking more POS options may be better off with Wells Fargo Merchant Services or Square, as they offer more variety.