Based in Michigan, North American Bancard maintains two websites, which can make it a little annoying to find the info you’re looking for. Read on for our review, which brings together all the vital information you need to find out if they’re the right merchant services provider for you. If you’re looking to know what others think, jump down to the “Reviews” section at the end of this article to get additional insight.
News
In late 2017, North American Bancard announced that it will be acquiring Total Merchant Services.Overview of North American Bancard
North American Bancard is a merchant account provider. This means it allows you to take payments from customers with debit and credit cards and processes them on your behalf. It then deposits money in your bank account after taking its processing fees. The North American Bancard merchant account is primarily designed for face-to-face retail transactions. Although they do allow ecommerce transactions, face-to-face transactions are what we’ll focus on in this review.
North American Bancard in Their Own Words
“A merchant services account from North American Bancard (NAB) will allow you to accept credit cards at your business. We pride ourselves on offering some of the lowest credit card processing rates in the industry, and our merchant accounts come with a month-to-month service agreement with no cancellation fees.”NAB — Key facts
- Used by over 250,000 businesses throughout the US.
- Processes over $34 billion in transactions every year.
- Have been a payment provider for over 20 years.
- North American Bancard partners with Wells Fargo bank.
Types of Cards Accepted
NAB allows you to accept the following types of debit and credit cards:- Mastercard
- Visa
- American Express
- Discover
- PayPal
- Fleet cards (including Voyager and Wright Express)
Other Services
In addition to credit card processing, North American Bancard offers ATM installation onsite (providing the terminal, software, and support) and merchant cash advances. Called Capital for Merchants, the cash advance program offers up to $500,000 per location for approved business expenses.Free Equipment
NAB claims to provide free point of sale (POS) equipment, including complete card readers, card swipers for taking payments on the go, and several other options:- Countertop credit card readers.
- EMV and NFC compliant for chip cards and contactless payments.
- A “PayAnywhere” storefront tablet
- A swipe reader that plugs into a mobile phone or tablet
Payment Methods
Most NAB equipment is enabled for various different payment methods. This includes swiping, NFC, and EMV.- NFC stands for “Near Field Communications.” This technology lets customers make quick, secure payments through a “contactless” method, using special chips embedded in their credit card and the NAB merchant terminal.
- EMV, more commonly known as “Chip and Pin” or “Chip and Signature” is a technology that uses a chip on the front of a customer’s credit card. Customers insert their card into a credit card reader (called dipping) which uses secure encryption to process payment information.
- All NAB card readers can process cards that are “swiped” with their magnetic strip. Although EMV and NFC are becoming more popular payment methods, not all businesses accept EMV payments yet. Non-traditional retail settings (e.g. taking payments via a mobile card reader) aren’t always chip or NFC enabled.
- Naturally, your customers will also have to sign or enter their PIN to authorize payment.
NAB Countertop Credit Card Machines
North American Bancard provides a variety of countertop credit card machines, all of which are fully PCI compliant, using the latest technology to encrypt and securely process transactions.
Verifone Vx 520 “A rugged and reliable countertype device that’s built for everyday use.” See: Vx 520 Features
Verifone Vx680 Wireless “A portable, handheld device[…]perfect for mobile merchants, delivery services, stadium vendors, and pay-at-the-table restaurants.” See: Vx680 Features
Ingenico iCT220 CL “Among the world’s smallest credit card terminal devices and is designed for easy handling and rugged everyday use.” See: iCT220 Features
Verifone Vx570 DC “A countertop solution that blends speed and performance and can support value-added applications and EMV chip card transactions.” See: Vx570 Features
Verifone Vx510 “A space-saving credit card terminal that is easy to install and[…]comes with a high-speed printer that reduces wait times.” See: Vx 510 Features
Remember to ask whether you’ll be expected to pay for equipment outright or if there is a lease, and double check that your contract says the same thing that you’re told by the sales rep. Related Article: Is leasing a credit card machine the biggest mistake you can make?Getting Approved for a North American Bancard Merchant Account
You will need to complete an application form for an NAB account. Accounts are approved within hours and completing basic setup takes fewer than 15 minutes.Training
North American Bancard provides training for you and your employees on using credit card terminals and reprogramming them if needed. They also have several resources on their website, pictured below.
NAB Payments
You will normally have money transferred to your bank account within two working days of taking payment from your customer. Some merchant accounts can qualify to have funds deposited the next working day. Note that funding times is something that came up in some customer complaints. A few reviewers commented that funds were not always available when promised.Rates and Fees
This is where things get a little tricky, and a big part of the complaints in North American Bancard reviews. Like all processors, NAB prices its services on a “per business” basis. If you look back at the screenshot of North American’s homepage, you’ll see that the company claims “low rates” starting at 0.29%. It’s very important to note that this DOES NOT mean that you’ll pay 0.29% to process transactions. “Rates” are only one part of the total cost of credit card processing, and are easily manipulated. Additionally, the starting rates North American publishes indicate a tiered pricing model – an opaque and expensive type of pricing. The second North American website lists rates “starting at” 0.19% so the same caveat applies. You will pay much more than 0.19% of each transaction. North American Bancard doesn’t disclose full pricing. You can request a full price quote from NAB by using the CardFellow quote request tool. (It’s free, private, and there’s no obligation – Go ahead, it doesn’t hurt to look!) Click here for the quote requester. NAB states that there are no startup or cancellation fees, no hidden fees, and no long-term contracts. The company may charge for PCI compliance. It’s worth nothing that although NAB claims the above on their website, the experiences of their customers vary. For example, some report that NAB charges a termination fee and other undisclosed fees. If you need help understanding your pricing from NAB, let us know. Related Article: How to Read Your Credit Card Processing Statement."Cutting Edge" Pricing Program
North American Bancard also offers a surcharge program, the Cutting Edge program, to pass along processing fees to your customers rather than charging you. While the company refers to it as a cash discount program, it's actually a surcharge because a fee is added at the time of purchase if your customer uses a card. (By contrast, a cash discount program is when you provide a discount at the time of purchase if a customer pays with cash.) In any case, the surcharge program offers flat rate pricing, starting around 3.8%. Confusingly, North American Bancard says that the customer would then be charged 4%, and says that your business would make money on the transactions. However, card brand regulations specify that the cap for surcharges is 4% or the actual cost of processing, whichever is lower. By charging 4% to the customer and only 3.8% to the business, North American is setting your business up to violate card brand agreements. If you're considering North American's Cutting Edge cash discount program, you'll want to clarify this rule discrepancy to protect your business. Read more about adding a fee to credit card purchases.Chargeback Fees
Like most processors, NAB imposes a “chargeback fee” if a cardholder disputes a transaction that’s been charged to their card. According to their website, “Reasons for chargebacks include a cardholder dispute or an error in handling on the part of a merchant’s staff. Obtaining proper authorization and adhering to correct processing procedures can minimize chargebacks.”NAB Clients
North American provides credit and debit card transaction services for brands that are household names including:
Awards and Recognition
- A+ rating with the Better Business Bureau.
- Certified Payment Professional staff.
- 2008 Ernst & Young Entrepreneur of the Year, Detroit Region
North American Bancard Reviews
Take credit card processing reviews with a grain of salt. Processors set pricing and terms on a per-case basis, so the reviews you read from others won’t necessarily be the same as your experience. That said, it can still be helpful to at least get a basic overview of what others think. Here’s a selection of North American Bancard reviews. from around the web. Yelp — 37 reviews, average of 1.5 out of 5 stars As of autumn 2016
Ripoff Report — 73 Reviews As of autumn 2016 As the name implies, Ripoff Report provides a space for customers to explain their negative experiences with a business. This is obviously self-selecting, as customers that may be inclined to leave a good review will likely not do so on a site called the Ripoff Report. So, the 73 reports available are from customers that think North American Bancard is a scam, ripoff, or at least not the right company for their needs.
Other North American Reviews
People who are angry with a company often go to great lengths to share their experience, which is probably why a Facebook group called Bad Business Practices: PayAnywhere/North American Bancard exists. The page has a few complaints that echo the ones on Yelp and other review sites. The page is not very active, with most recent posts dating back to 2015. A website called Complaints Board also includes a detailed complaint about North American, which is answered by someone representing the company. At this time, neither of North American’s websites include any customer testimonials to rebut the abundant negative reviews. We’ll check in with review sites and the company’s website regularly and update this overview if testimonials or additional negative reviews become available. We hope this has given you a comprehensive overview of what North American Bancard does. Unfortunately, despite the claims on their website, the experiences of their customers (at least those who wrote reviews) does seem negative. Of course, there may be many thousands of customers where there were no issues but we recommend carrying out your own research before making a final decision.
Ben Dwyer
Ben Dwyer began his career in the processing industry in 2003 on the sales floor for a Connecticut‐based processor. As he learned more about the inner‐workings of the industry, rampant unethical practices, and lack of assistance available to businesses, he cut ties with his employer and started a blog where he could post accurate information about credit card processing. As the blog gained in popularity, Ben began directly assisting merchants in their search for a processor. Ben believes in empowering businesses by providing access to fair, competitive pricing, accurate information, and continued support. His dedication to transparency and education has made CardFellow a staunch small business advocate in the credit card processing industry.
