GoPayment – A Costly Mistake!
GoPayment is consistent with the high rates, bundled pricing and fine print that plague Intuit credit card processing services in general. There are several alternatives to GoPayment that offer lower rates, more transparent pricing, and easier sign up.
GoPayment has added a $0.15 transaction fee to all non-qualified transactions.
- (Published) Rates & Fees
- What You Will Really PayExcessive Surcharging
- Charges & Refunds
- Card Swiper & Compatible Devices
- Sign Up
- Contract & Cancellation
- GoPayment Reviews
- Alternatives to GoPayment
- Post Your Review
Rates & Fees
Pricing for Intuit's GoPayment service is far more complicated than the company makes it seem from the pricing table on its Web site. It takes quite a bit of digging through fine print to obtain a total picture of cost.
GoPayment utilizes a form of tiered pricing that allows Intuit to surcharge any transaction that it feels does not qualify for its lowest rate. However, Intuit does not disclose the criteria for specifically determining which types of transactions will be surcharged.
This type of tiered pricing is what makes bait-and-switch tactics possible in the credit card processing industry, and it is best avoided.
GoPayment allows users to choose between two pricing plans. The first plan is called Pay-As-You-Go and is targeted at businesses with sporadic or low processing volume. The second plan is called Pay Monthly & Save and is targeted at higher volume businesses.
The pricing for GoPayment's Pay-As-You-Go option is as follows:
|Visa, MasterCard, Discover "Qualified" Transactions *||2.75%||$0|
|Visa, MasterCard, Discover "Non-Qualified" Transactions||3.75%||$0.15|
|American Express **||2.89% - 3.50%||$0.10 - $0.15|
|Set Up Fee||$0|
* The qualified rate applies only to swiped consumer debit and consumer non-reward credit cards. All keyed transactions and most reward, corporate and special card types will be charged the non-qualified rate of 3.75%.
Keep in mind that most credit card transactions involve a reward-based card. So, the 3.75% rate will apply to the vast majority of credit card transactions, and to all keyed transactions.
** Per Intuit's Terms of Service, a business is consenting to abide by American Express's Card Acceptance Agreement when it opens a GoPayment account. American Express discount rates range from 2.89% to 3.50% with transaction fees of $0.10 to $0.15 depending on business type.
Below is the fine print taken from GoPayment's Web site for the Pay-As-You-Go pricing plan:
Card-Swiped Rate" of 2.75% will be charged on qualified swiped Visa/MC/Discover Network transactions that are electronically authorized. "Key-Entered Rate" of 3.75% will be charged on all qualified manually keyed Visa/MC/Discover Network transactions that have AVS. All Visa/MC/Discover Network transactions that do not meet the requirements stated above, business cards, foreign cards and transactions that do not meet Visa/MC/Discover Network requirements for the best interchange program will be charged a "Non-Qualified Rate" of 3.75%. Different discount rates for American Express may apply.
Pay Monthly & Save
GoPayment's Pay Monthly & Save account allows users to pay a $12.95 monthly fee in exchange for slightly lower rates.
|Visa, MasterCard Discover "Qualified" Transactions *||1.75%||$0|
|Visa, MasterCard Discover "Keyed Qualified" Transactions **||2.75%||$0|
|Visa, MasterCard Discover "Non-Qualified" Transactions ***||3.75%||$0|
|American Express **||2.89% - 3.50%||$0.10 - $0.15|
|Set Up Fee||$0|
|ACH Reject Fee||$25|
The Pay Monthly & Save program has a hidden pricing tier of 3.75% that is only disclosed on Intuit's Web site in the fine print under the pricing table.
* Only swiped non-reward credit and debit transactions will be charged at Intuit's "qualified" 1.75% rate.
** All keyed transactions will fall into either the 2.75% rate or the highest 3.75% rate.
*** Intuit does not disclose the highest 3.75% rate under the Pay Monthly & Save pricing option, but it is referenced in the fine print. The 3.75% rate will apply to all business card, foreign card and interchange EIRF and standard transaction types.
Below is the fine print taken from GoPayment's Web site for the Pay Monthly & Save pricing plan:
Card-Swiped Rate" of 1.75% will be charged on qualified swiped Visa/MC/Discover Network transactions that are electronically authorized. "Key-Entered Rate" of 2.75% will be charged on all qualified manually keyed Visa/MC/Discover Network transactions that have AVS. All Visa/MC/Discover Network transactions that do not meet the requirements stated above, business cards, foreign cards and transactions that do not meet Visa/MC/Discover Network requirements for the best interchange program will be charged a "Non-Qualified Rate" of 3.75%. Different discount rates for American Express may apply.
The following table lists additional charges that apply to the GoPayment processing service that are not clearly listed on the GoPayment Web site. These charges can be found in section 1.14 of the Merchant Agreement.
|Providing Any Documentation||$2.00 per page|
|Checking Account (DDA) Change||$25.00 per change|
|Business Name Change Fee||$75.00 each|
|Third Party Payment Admin Fee||$150* (Intuit may charge a fee to implement legally enforceable requests for payment of Merchant funds to parties other than Merchant, such as tax levies, payments to secured parties or other legally enforceable payment requests of a similar nature.)|
|Voice Authorizations||$0.95 each|
|Voice Authorizations (w/live operator)||$1.75 each|
|Referral Authorizations||$2.00 each|
What You Will Really Pay
Businesses that use Intuit GoPayment should expect to pay an effective rate of 3.25% or more.
Intuit's use of bundled pricing and excessive surcharging will result in higher than expected charges. CardFellow has analyzed countless GoPayment processing statements, and the typical effective rate is between 3.25% - 4.25%, which is significantly higher than Intuit's advertised rates would suggest.
As we have explained in CardFellow’s credit card processing guide, the bundled pricing model that intuit uses allows it to route interchange categories to the pricing tier of its choice. For example, Intuit can choose to route the majority of credit card transactions to higher mid and non-qualified rates, which it typically does.
The following is an actual GoPayment statement provided by a business that used CardFellow’s marketplace to significantly lower its processing cost. As you can see from the highlighted portion of the statement, Intuit routes all credit card volume to mid-qualified (MQUAL) and non-qualified (NQUAL) pricing tiers, which have a rate of 3.75%. So, while Intuit advertises a rate of 2.75%, this rate will not apply to the majority of credit card volume.
Intuit's processing statements use quite a few deceitful tactics, which we have outline in detail in our article about how to read an Intuit statement.
Charges & Refunds
Price isn't the only downfall to the GoPayment service. Daily discounting and intercepted credits are additional considerations.
Intuit uses something called daily discounting to charge fees. This means that it deducts charges associated with the "qualified" rate prior to depositing funds into a business's account. Charges from "non-qualified" rates, monthly fees and transaction fees are deducted at the end of the month.
Aside from stifling cash flow, daily discounting makes reconciling books notoriously difficult.
When a business issues a refund to a customer, the processor gets a credit of the fee paid on the original transactions. This credit is supposed to be passed to the business, but Intuit keeps refunds instead of passing them along. This hidden cost of lost refund credit card refund credits can add up even for businesses that only issue a few refunds a month.
Card Swiper & Compatible Devices
The GoPayment application and card swiper are given away free of charge with a new account.
Supported devices include Apple's iPhone, iPad and iPod Touch running iOS 4.0 or newer, and compatible Android-powered devices running OS 2.1 or newer.
Another drawback to the GoPayment mobile processing service is the sign up process.
GoPayment requires a business to open a traditional merchant account with Intuit Payment Solutions. Applicants must provide a date of birth and social security number so that Intuit can perform a credit check.
GoPayment also requires a full personal guarantee from business principal/owner that grants Intuit the right to "proceed directly against me [the account owner] without first exhausting their remedies against any other person or entity."
Contract & Cancellation
Don't make the mistake of confusing a merchant account contract with a cancellation fee; they are two completely separate things.
The Intuit GoPayment contract does levy a cancellation fee against any business that closes its account in good standing. However, under section 1.15 of the Terms of Service, Intuit will charge a $500 cancellation fee for any account that it closes due to suspected misuse.
Do not open a GoPayment account without first reading the following agreements in their entirety. These are terms that you are agreeing to by processing with Intuit.
Despite the opaque pricing and high fees associated with GoPayment, many online reviews of the service give it high marks.
The reason many reviews of GoPayment don’t reflect reality is because Intuit pays the reviewers a commission for referring business its way.
Intuit uses a company called Commission Junction to recruit online marketers. These online marketers, called affiliates, create content that persuades people to sign people up for the GoPayment service. Intuit compensates affiliates by paying a commission in the form of a referral fee for each person that successfully signs up for GoPayment.
So, take overly positive online reviews of GoPayment with a large grain of salt. It’s very likely that the reviewer’s judgment has been clouded by Intuit’s cash incentive for referrals.
For the record, CardFellow is not an affiliate of Intuit.
Alternatives to GoPayment
Many mobile small business credit card processing options exist in today's marketplace, and most have more favorable pricing and terms than Intuit's GoPayment service.
The following solutions all utilize an Apple or Android-powered device to process credit and debit card transactions.
ROAMpay & Traditional Merchant Account
Businesses that are processing $5,000 a month of more should look toward ROAMpay coupled with a competitive traditional merchant account.
The key with this solution is to get a competitive merchant account with interchange plus pricing. The easiest way to find the best interchange plus pricing is to sign up free at CardFellow to receive instant quotes from multiple processors.
Businesses that process sporadically or with monthly volume of $5,000 or less should look toward PayPal Here or Square.
PayPal Here & Square
These two services are very similar in terms of pricing, but PayPal Here provides a true traditional merchant account where Square does not.
PayPal Here also has slightly lower pricing and much better customer service than Square. Check out our PayPal Here and Square Up Review on CardFellow for in depth information on these two mobile processing options.
Please use the form below to post your review of GoPayment. Be be sure to support any claims about your Merchant One with details about your experience. Reviews lacking supporting detail will not be posted.