Payment Depot is a relatively new independent sales organization (ISO) of Wells Fargo Bank that processes through First Data.
It has differentiated itself from other merchant service providers by re-labeling existing interchange plus pricing as subscription-based pricing by charging a higher monthly and transaction fee to avoid charging a volume markup (percentage).
Due to its interchange plus roots, the company’s approach to pricing is transparent and can be easily compared with other processors’ interchange plus pricing.
Businesses considering Payment Depot can rest assured that its pricing will be far more transparent than that of competitors like Merchant Warehouse, but they should take care not to mistake simplicity for competitiveness.
A competitive, traditionally structured interchange plus quote (one with a percentage markup), like those offered here in CardFellow’s marketplace, has the potential to be just as or more competitive than Payment Depot’s pricing.
- CardFellow’s Experience
- Rates, Fees & Pricing Model
- Equipment & Software
- Reading Statements
- Marketing Tactics
- Payment Depot Reviews & Profile
|Address:||238 W Chapman Avenue, Suite #201
Orange, CA 92866
|Acquiring Bank:||Wells Fargo|
|Affiliates & Additional DBAs:||Payment Depot is sister company of BestMerchantRates|
|Key People:||COO: Randy Hayashi
Co-Found & CTO: Tony Kawaguchi
|Company Structure:||Independent Sales Organization (ISO)|
CardFellow’s Experience with Payment Depot
Payment Depot is a relatively new ISO, so CardFellow doesn’t have much experience with it. We have addressed a few questions from our clients about the competitiveness of Payment Depot’s monthly pricing, but we haven’t analyzed any statements or paperwork from this company yet.
With that said, we have taken the time to examine Payment Depot closely, and its spin on pricing is transparent.
CardFellow’s original profile of Payment Depot took issue with the way the company presented the FAQ section of its Web site. Shortly after posting the profile we were contacted by the Company’s COO, Randy Hayashi, who subsequently had Payment Depot’s FAQs updated to address the concerns we noted.
If you currently use Payment Depot as a processor, or if you’re considering doing so, you’re welcome to utilize CardFellow’s marketplace to ensure you’re receiving the most competitive pricing. As we do for all of our clients, we will provide a free analysis comparing your existing Payment Depot pricing or processing offer to the quotes received through CardFellow’s marketplace.
Rates, Fees & Pricing Model
While this pricing structure may appear to be new to the industry, it’s actually interchange plus pricing with no volume markup (percentage).
For example, Payment Depot’s Starter Plan of $20 a month with a $0.20 transaction fee is exactly the same as interchange plus 0% with a $0.20 transaction fee and $20 monthly fee.
Interchange plus has the potential to be the most cost effective and transparent pricing model because it eliminates a processor’s ability to surcharge transactions using qualified, mid-qualified and non-qualified rates.
Like with interchange plus, Payment Depot charges its markup in addition to the costs of interchange and assessments, which are fixed costs for all processors.
Payment Depot offers three different pricing plans it calls Starter, Most Popular and Enterprise. Each plan has a flat monthly subscription charges and a transaction fee.
As Payment Depot notes on its Web site, the monthly and transaction fees below are in addition to interchange and assessment charges.
$20 Monthly Fee
$0.20 Transaction Fee
Interchange Fees Passed at Cost
Assessment Charges Passed at Cost
- Most Popular
$40 Monthly Fee
$0.15 Transaction Fee
Interchange Fees Passed at Cost
Assessment Charges Passed at Cost
$60 Monthly Fee
$0.10 Transaction Fee
* Interchange Fees Passed at Cost
* Assessment Charges Passed at Cost
Payment Depot’s Markup
Unlike most merchant service providers that make money by charging a percentage of sales, Payment Depot makes its money by charging a flat monthly subscription fee and a transaction fee.
For example, a business with an average sale amount of $100 that processes $10,000 in volume will pay a markup of $55 to Payment Depot (100 transactions * $0.15 + $40).
Since Payment Depot’s pricing is essentially interchange plus 0%, it can be easily compared to interchange plus quotes offered by other processors. Let’s continue with the example above to illustrate how this is done.
If this business was offered a quote of interchange plus 0.15% with a $0.10 transaction fee and a $10 monthly fee, it would pay the processor a markup of $35 (($10,000 * 0.0015) + ($0.10 * 100) + $10).
This markup of $35 is a direct comparison to Payment Depot’s markup of $55.
Comparing tiered pricing (qualified, mid-qualified, non-qualified rates) to Payment Depot’s pricing is much more complicated, and since tiered pricing is so opaque and expensive, it’s most likely not worth the effort.
Payment Depot’s pricing will be more competitive than another processor’s tiered pricing.
Equipment & Software
As a First Data ISO, Payment Depot’s processing is compatible with most modern terminals, POS systems, and gateway.
Credit Card Machines
Payment Depot can reprogram most modern terminals at no cost, including FD brand terminals. It also sells credit card machines, although it doesn’t indicate models or pricing.
Payment Depot can integrate with any gateway that is compatible with First Data. This includes the popular Authorize.net gateway.
Payment Depot will also provide a free gateway to businesses, which is presumably First Data’s Global Gateway, or its new E4 gateway.
POS Systems & Software
Payment Depot does not offer its own POS system or software, but it will be able to integrate with most non-proprietary system or software on the market.
The company is relatively new, so CardFellow has not yet analyzed a statement from Payment Depot, and we don’t have any examples to post. However, we have analyzed many interchange plus statements from First Data, and as a First Data ISO, Payment Depot’s statements will likely mirror this format.
This profile will be updated once a Payment Depot statement comes along, or once we post an interchange plus statement example in First Data’s profile.
Payment Depot is leveraging its spin on higher monthly fees, no percentage interchange plus pricing to appeal to businesses and media outlets that erroneously believe it to be a different, simpler, or more competitive pricing scheme than what is already available.
Payment Depot is relying mainly on pay-per-click advertising, content marketing and affiliate relationships to promote its services.