It should be noted that Newtek’s website, sba.com, is not the United States Small Business Administration despite the confusing acronym used instead of its own name. Newtek (“the small business authority”) has no affiliation with the U.S. Small Business Administration. This Newtek Merchant Solutions review and profile will clarify the services offered, as well as discuss general opinion of working with the company.
Newtek’s website is a bit sprawling, but we’ll help untangle and organize the services so you know what you can expect. Essentially, Newtek offers fairly standard payment processing options. Services include card processing, e-commerce solutions, mobile processing, and gift/loyalty cards. There is no information regarding the processing of electronic checks.
Being able to pay with a card is a convenience that many customers now take for granted. With Newtek, you have the ability to accept credit card payments from major networks, including MasterCard, Visa, Discover, and American Express. Additionally, you can accept PIN-based and signature-based debit on major debit networks. Newtek offers standard terminals, wireless terminals, PIN pads, and mobile terminals that are all EMV capable, to help meet your business’ specific needs.
Running a store in cyberspace comes with its own set of challenges. You don’t have a physical connection with your customer. To help with online payments, Newtek Merchant Solutions offers a secure gateway and virtual terminal.
The secure gateway allows customers to pay through your website (using shopping cart integration). Secure gateways are PCI compliant, and include built-in fraud controls and customizable reporting.
The virtual terminal allows you to take payments from any computer that is connected to the internet and offer customized receipts. Cards can be swiped or keyed manually, with end-to-end encryption and tokenization for added security. Businesses can also set up recurring payments.
Time and tide wait for no man, and neither do most sales. With mobile processing you have the ability to take payments wherever you go, a great convenience for services that travel and vendors that visit fairs and tradeshows.
Newtek Merchant Solutions offers NewtPay Mobile service, all you need is an existing smartphone or tablet and a mobile processing swiper. Use NewtPay Mobile swipers to safely swipe customers’ cards at the point of sale by attaching the swiper directly to your mobile device. It’s usable with Apple, Android, and Blackberry devices.
NewtPay Mobile includes a free card swiper, no cancellation fees, and no monthly minimums. Rates start at 1.69%. Note that published rates are not necessarily the final cost you’ll pay. See the Newtek rates and fees section below for more information.
Gift cards are a great way of expanding your clientele and influence, while Loyalty programs help encourage repeat business and customer satisfaction. If you want to offer these services to your customers, Newtek Merchant Solutions offers a JumpStart gift card program with no upfront costs. Program includes 100 free gift cards, and marketing/merchandising materials. You can also set up a loyalty program so customers can earn points and rewards for their purchases.
As mentioned before, Newtek Merchant Solutions offers more than just payment processing services. If you need help with payroll, getting extra working capital, or web services, Newtek might have some options for you.
Are you short on time and tired of the tasks associated with payroll? You might want to consider a payroll service that can take that burden. If you are a small business using ADP or Paychex for your payroll services already, Newtek claims it can save you up to 20%. If you have never used a payroll service, Newtek claims it can save you headaches (and the expenses of painkillers associated with them). It offers a 60 day free trial of the service.
You can purchase Newtek’s premium Payroll Pro service for a flat rate. Additional add-ons are offered to fit your needs, such as Online HR Support and Time Clock Import.
Newtek offers business loans, cash advances, and accounts receivable financing as business funding and cash flow solutions. The business loans can finance from $50,000 to $10 million. They can be used for a variety of business expenses and terms range between 7 and 25 years.
Cash advances are available for $5,000 to $250,000 and are paid back differently than a loan. Rather than paying back incrementally, cash advances are paid with an extracted portion of your future sales. While this may seem like a good idea to get some working capital in your hands, make sure you consider all your options. Cash advances can ultimately be very costly.
Accounts receivable financing is another option for helping cash flow. If you are waiting on invoices from customers, you can get an advance on the amount you will eventually be paid. Funding ranges from $50,000 and higher, with some qualifications. You can receive the funding in as little as 2 weeks.
If you need help designing an app or website, want to migrate data into a company cloud, or need help with online security and compliance, Newtek Merchant Solutions can provide assistance.
Website and App Design
Whether you are new to the world of eCommerce or a virtual veteran with a website that needs updating, the services you need for website design can be found with Newtek. The company will help make sure you are optimized for online sales.
Storing data on a cloud can help your company go green and offer better security. If you would like to transport your current system of storing data into a cloud, Newtek claims it can cut costs of IT and help with security in the process.
Security and Compliance
Securing data is extremely important in all industries, but even moreso for companies in healthcare and finance. Newtek Merchant Solutions offers hosting services for such companies with sensitive data needs. The hosting services meet a number of regulatory compliance standards.
Yes, Newtek has a variety of credit card machines, including standard terminals, wireless terminals, PIN pads, and mobile attachments that are all EMV capable. They are from popular brands like VeriFone and FirstData.
If you are looking for a system that does more than take payments, you might want to consider a full point of sale system. Point of sale systems can integrate with inventory, reporting, employee management, and more. Newtek offers point of sale systems from Revel and Clover.
Newtek Merchant Solutions offers 2 levels of rates, NewtPay and NewtPay PRO.
The plans list the following rate and fee information:
Per-transaction fee: $0.28
Setup fee: $0
Monthly fee: $0
Annual fee: $0
Per-transaction fee: $0.26
Setup fee: $0
Monthly fee: $15
Annual fee: $0
Newtek claims that they will match or beat your current processing rates or else they will pay you $250. The company also boasts no hidden fees.
Despite claims of no hidden fees, and despite published rates, there can be additional costs. In order to know exactly what you will be paying for Newtek’s service, request a fully disclosed quote through CardFellow’s free service. Sign up here, and compare pricing of any processor you choose.
Newtek Merchant Solutions’ standard contract term is 2 years. The company’s website boasts that there are no cancellation fees.
Newtek seems to have a bad habit of being misleading, from the confusion with the acronym SBA to listing its headquarters in New York, when the Better Business Bureau shows Newtek Merchant Solutions in Wisconsin. Don’t be confused, Newtek Business Services is at the NY address, but the processor is in WI. While this could be an indicator of a company you need to watch out for, there aren’t really enough reviews to confirm that. It’s possible that the silence of its other clients is the sound of satisfaction.
Currently, Newtek Merchant Solutions is not accredited with the BBB, but has a profile with a B- rating and 6 complaints closed in the last 3 years. This is a relatively small number, when comparing credit card processing companies. One complaint is in regards to being billed for equipment even after it was returned. Another states that an email intended for the client, with sensitive business information, was sent to a stranger and resulted in funds being held with no notification. Attempts to contact Newtek and resolve the situation proved frustrating and unsuccessful according to the reviews. Other complaints claim difficulty cancelling, hidden fees, and rates that were much higher than promised.
There is only one complaint for Newtek Merchant Solutions in the Ripoff Report directory. The complaint alleges being charged excessive amounts of money for an account that wasn’t even used. Nothing appears on Yelp or Google reviews to help frame an opinion.
Reviews for “the SBA”, “the small business authority”, and a general “Newtek” did not turn up much more for useful results.
If you have an experience with Newtek Merchant Solutions that you would like to share, we would love to hear from you. Leave a review!
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Posted by CardFellow on Mar 28, 2016
In addition to merchant processing, Newtek offer payroll, loans, and cloud services. The specifics and pricing for its merchant processing services aren't offered on its Web site. The site says only that custom pricing is offered.