Key takeaways
- Wells Fargo Merchant Services provides payment processing solutions for small- to medium-sized businesses.
- Merchants must have a Wells Fargo business checking account to be eligible for the bank’s services.
- Wells Fargo offers a range of payment processing options, including point-of-sale devices and online payment solutions.
If you own a small- to medium-sized business, you know how important it is to have payment processing solutions in place to accept credit cards, debit cards, digital wallets and other forms of payment easily. One such merchant solutions provider is Wells Fargo Merchant Services, which offers point-of-sale options and online payment choices designed to offer quick and convenient funding.
Partnering with Wells Fargo Merchant Services can be a smart move if you need robust payment processing options that can scale with your business. But it’s wise to weigh the pros, cons and costs of these solutions carefully.
What is Wells Fargo Merchant Services?
Wells Fargo Merchant Services is a division of Wells Fargo Bank, the parent company originally founded in 1852 that remains one of the country’s largest and oldest financial institutions and offers many notable credit card options. This division specializes in providing different payment processing solutions to many kinds of businesses, enabling merchants to accept credit card, debit card and digital wallet payments in person, online and on the go.
Wells Fargo Merchant Services provides tailored solutions that address the unique needs and challenges of small- and medium-sized businesses when it comes to payment processing.
With these services, businesses can streamline operations by utilizing one integrated platform for in-person, online and mobile payments. This reduces the complexity of managing multiple systems and allows merchants to better focus on core business activities.
— Baruch Silvermann, Personal finance expert
What services does Wells Fargo offer for businesses?
Wells Fargo boasts several helpful services that can streamline how businesses accept credit card payments and get funded:
- Point-of-sale (POS) options
- Payment processing options
- Virtual payment solutions
- Check processing, gift cards and loyalty programs
Most of Wells Fargo’s POS options are Clover® products. Clover options range from small handheld devices like the Clover Go, for payments on the go, to countertop systems like the Clover Station Solo that include a cash drawer. The POS option you choose will depend on your industry and business mode. For example, Wells Fargo also offers the Clover Flex, which is designed for tableside payments — perfect for restaurants. All Clover products allow for contactless payments and pin entry, and they safeguard your customers’ card data with encryption and tokenization.
Beyond the Clover line, Wells Fargo offers the FD150 terminal, which is ideal for in-person or manually entered payments; this countertop touchscreen terminal offers a ready-to-go solution out of the box. The product comes with a contactless reader, PIN pad and built-in receipt printer.
POS transaction fees and requirements: What to expect
Although they offer the convenience of integrated payment systems, businesses need to be aware of the associated costs and contractual commitments of these POS products.
One clear downside is that you’re required to have a Wells Fargo business checking account to be eligible for the bank’s merchant services.
Keep in mind that you’ll pay business-to-consumer transaction fees for these POS solutions.
| Monthly processing volume | Per tap, dip or swipe transaction | Per online or keyed-in transaction |
|---|---|---|
| $0–$14,999.99 | 2.60% + $0.15 | 3.40% + $0.15 |
| $15,000–$39,999.99 | 2.40% + $0.15 | 3.20% + $0.15 |
| $40,000 or more | 2.20% + $0.15 | 3.10% + $0.15 |
Online payments
Wells Fargo Merchant Services offers online payment solutions worth considering for Wells Fargo credit card processing (or debit). Here’s a closer look.
Authorize.net e-commerce services
You can begin accepting payments swiftly through your website using Wells Fargo’s Authorize.net service. Account setup promises simplicity, with pre-integration with several top shopping carts, and you can easily add a Buy Now button. The virtual terminal also allows you to key in card details for in-person and phone transactions.
These perks cost you $24.95 monthly, in addition to B2C and B2B transaction fees.
B2C transaction fees
| Monthly processing volume | Per online or keyed-in transaction |
|---|---|
| $0–$14,999.99 | 3.40% + $0.15 |
| $15,000–$39,999.99 | 3.20% + $0.15 |
| $40,000 or more | 3.10% + $0.15 |
B2B transaction fees
| Monthly processing volume | Per online or keyed-in transaction |
|---|---|
| $0–$14,999.99 | 3.99% + $0.20 |
| $15,000–$39,999.99 | 3.75% + $0.20 |
| $40,000 or more | 3.50% + $0.20 |
Authorize.net virtual terminal/digital invoicing services
Want to accept payments via keying card info into a web browser using your own device with no extra equipment or website needed? Authorize.net’s virtual terminal/digital invoicing capabilities allow you to produce and send email invoices to your customers so they can pay by phone or PC.
The monthly fee here is only $9.95, but in addition to B2C and B2B transaction fees.
B2C transaction fees
| Monthly processing volume | Per online or keyed-in transaction |
|---|---|
| $0–$14,999.99 | 3.40% + $0.15 |
| $15,000–$39,999.99 | 3.20% + $0.15 |
| $40,000 or more | 3.10% + $0.15 |
B2B transaction fees
| Monthly processing volume | Per online or keyed-in transaction |
|---|---|
| $0–$14,999.99 | 3.99% + $0.20 |
| $15,000–$39,999.99 | 3.75% + $0.20 |
| $40,000 or more | 3.50% + $0.20 |
The benefits of these Authorize.net online payment options include fast funding, convenient point-of-sale solutions and straightforward pricing. However, these costs make these options best for small business owners who already have a Wells Fargo business deposit account.
— Michael Schmied, Financial consultant
What people say about Wells Fargo Merchant Services
Wells Fargo Merchant Services gets mixed reviews across the internet.
Among the most frequent complaints we found when researching this division was concerned customers who reported that an agent was dishonest or deceptive about terms and conditions of the merchant account agreement or costs of terminals. Many also complained that the agent signed them up for additional services they had not requested. Other typical complaints included the sudden and long-term holding of a business owner’s funds with no explanation provided, no advance notice before account signup of a $500 cancellation fee that may be charged, and nondisclosure of non-cancellable policies regarding equipment leases.
— Phillip Parker Founder, Card Payment Options
Parker adds that Wells Fargo was named as a defendant in a class action lawsuit in August 2017 for which it paid $40 million to settle, and another 2021 class action suit that alleges Wells Fargo assessed excessive charges. For these and other reasons, including many hidden fees, Parker’s site rates Wells Fargo Merchant Services 2.5 stars out of 5.
Wells Fargo earns poor ratings on Yelp and Trustpilot as well, earning just over 1 star on each platform.
The online reputation is mixed. While some users report satisfaction with the reliability and range of services, others have raised concerns over customer service and fee structures.
— Dennis Shirshikov, Adjunct professor of economics at City University of New York
However, there is an overall scarcity of business-specific feedback on Merchant Services that makes it challenging to accurately assess its online reputation.
Should you sign up for Wells Fargo Business Services?
It’s smart to perform your own due diligence before signing up with Wells Fargo Business Services.
“A compelling reason to consider Wells Fargo for businesses lies in its competitive business-to-consumer fees, which is particularly advantageous for enterprises processing over $40,000 monthly,” says Silvermann. “Wells Fargo stands out as the most economical choice for point-of-sale transactions among major banks. Moreover, their online rates — while slightly higher percentage-wise than their competitors — feature the lowest fixed transaction costs.”
For proof, consider this comparison against major competitors.
| POS | Online | |
|---|---|---|
| JPMorgan Chase Paymentech | 2.90% + $0.25 | |
| Bank of America Merchant Services | 2.65% + $0.10 | 2.99% + $0.30 |
| Citi Merchant Services | 2.69% + $0.19 | 2.90% + $0.30 |
| Wells Fargo Merchant Services | 2.20% + $0.15 | 3.10% + $0.15 |
Shirshikov recommends careful scrutiny before signing up for any of these services.
“Thoroughly assess your specific needs, volume of transactions and growth trajectory,” he says. “While Merchant Services offers robust solutions, they might not be the best fit for every business — especially those with lower transaction volumes or specific industry needs.”
The bottom line
Wells Fargo Merchant Solutions provides a range of handy products and services that can address point-of-sale challenges and online payment pain points faced by small- to medium-sized enterprises. But despite its lower fees than some competitors, Merchant Services’ lack of transparency regarding fees and hidden costs along with mixed online reviews should trigger a much closer look before enrolling in any of these offerings.
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