To clarify right off the bat, two companies go by “PayHub” in the credit card processing industry. One is PayHub Payments, a company located in Connecticut. PayHub Payments places certified quotes through the CardFellow marketplace. The other is simply PayHub, a company located in Texas and the subject of this review, which does not place certified quotes through CardFellow.
With that cleared up, let’s look at what PayHub Payments offers for processing services, rates and fees, and equipment. You can also read or leave PayHub reviews.
- PayHub Overview
- Credit Card Processing Services
- Equipment and Integrations
- PayHub Rates and Fees
- PayHub Reviews
PayHub is a division of SignaPay, another processing company. Unlike most of the companies in the CardFellow processor directory, PayHub is not a registered ISO. The company was founded in 2006, and has headquarters in Irving, Texas.
PayHub offers multiple options for accepting credit cards. You can take payments online through your website, over the phone using your computer as a virtual credit card machine, or using your smartphone or tablet.
PayHub offers a gateway that includes tokenization, helping you securely accept credit cards through your website. You can accept one-time payments or set up recurring billing to charge your customers at set intervals. If you’d like, you can also use PayHub’s “buy now” button option.
If you take payments from your customers over the phone, a virtual terminal allows you to easily and securely process them right on your computer. The PayHub virtual terminal is available for both Mac and PC and requires a web browser and connection to the internet.
Related Article: Using a Virtual Terminal to Take Credit Cards.
PayHub offers a payment app that allows you to take credit cards using your smartphone or tablet. It’s available for both Apple and Android devices (though you’ll need to check compatibility with your specific phone or tablet) and lets you securely enter card details or swipe cards with a headphone-jack card reader. A built-in signature capture option lets you collect signatures for transactions if you have a touchscreen device.
PayHub doesn’t provide details for equipment options to take credit cards in person. It does offer a gateway and a virtual terminal, allowing for online payments through ecommerce websites or by phone using a secure web-based portal.
PayHub has multiple integrations with popular ecommerce software, shopping carts, and more. Integrations are available with WooCommerce, OpenCart, PrestaShop, Magento, and others.
PayHub publishes some rates and fees on its website, but the information is contradictory or unclear. For example, as seen in this screenshot of a comparison chart on its website, PayHub claims that it charges:
Debit transactions: 1.19%
Swiped credit: 1.59%
Keyed transactions: 2.19%
Per-transaction fee: $0.25
It lists costs next to the published pricing for flat-rate competitors PayPal, Square, and Stripe.
However, there are two problems with that. First, PayHub goes on to list that if you choose flat rate processing, your costs will be 2.79% + 20 cents per transaction – a higher percentage than Square’s 2.75%.
The chart also erroneously claims that Square has a 30 cent transaction fee. Square does not charge a per-transaction fee for swiped transactions, and only charges a 15-cent transaction fee for keyed transactions.
The other problem with the pricing in the comparison chart is that it doesn’t offer any details about the types of transactions to which the rates apply. That is, saying a “swiped” card will cost 1.59% may or may not be accurate. Is that a “qualified” rate for only certain transactions? If so, what are the “mid-qualified” or “non-qualified” rates, since many transactions will cost more than the qualified transaction rate?
Alternately, if it’s interchange plus pricing, it’s not accurate to give a per-transaction swipe fee for all transactions. Credit card transactions have a base (wholesale) cost, called interchange. There are hundreds of interchange categories, each with different rates. Below is a snippet of the Visa interchange table:
As you can see, there are different rates for different categories; some are higher than PayHub’s stated 1.59%, while some are lower. Let’s take the lowest cost category from the chart: 1.22% + 5 cents. If you’re charged on an interchange-plus model, PayHub states that the rates will be the cost of interchange, plus 0.40% and 10 cents per transaction. Even without adding in Visa or Mastercard’s fees (called assessments), the total would already work out to 1.62% + 15 cents for the transaction – more than PayHub’s stated 1.59%. Taking the highest rate on the chart would yield 2.80% + 20 cents, much more than the published 1.59%.
Ignoring the comparison chart, we can look at what PayHub publishes for costs by pricing model, as follows:
Gateway only: starting at $9.95/month
Flat rate: 2.79% + $0.25 per transaction
Interchange plus: Interchange rates, plus 0.40% + $0.10 per transaction
This information makes more sense than the numbers in the comparison chart.
The right pricing model for you will depend on the specifics of your business, including how you accept cards, your average monthly volume, and the average size of individual transactions. In some cases, flat rate pricing may be a good fit, while in others, it would mean you’re overpaying.
If this all sounds confusing, not to worry. You can skip the process of figuring it out yourself by requesting a quote through our free and private quote request tool. There’s no obligation, and you’ll be able to easily see your exact costs for processing. Try it now.
With two businesses sharing a name, it can be a little challenging to weed out which reviews are about which company. Many of the reviews available online are about PayHub Payment Processing (in Connecticut) not PayHub (in Texas.)
PayHub has a profile with the Better Business Bureau, and an A+ rating, but it is not accredited. Furthermore, no one has left a review for PayHub on the BBB’s website, though no one has lodged a formal complaint in the past 3 years, either.
The company doesn’t list testimonials on its website, but there are five reviews on its Facebook page.
Four of the reviews give the company 5 stars, while one gives it 1 star. The majority of the positive reviews simply give a star rating without providing any detail as to what the client is happy about. The one review that does provide comments states that PayHub is a great solution to a business’ needs. The negative review claims that the reviewer tried to cancel service for several months but PayHub still removed money from his account while he got the run-around from customer service.
Still, these reviews aren’t much to go on, as they only give insight into a few isolated incidents. Have you used PayHub for your business’ credit card processing?
Let us know what you think. Leave a PayHub review!
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