It may be one of the bigger banks out there, but Wells Fargo's payment processing services leave a lot to be desired.
Chris MotolaChris has been writing about small business topics since 2003. He has been featured in Fox Business, ABC News, Yahoo Finance, GoBankingRates, Newsweek, BizJournals, and other publications. He has a Bachelor’s of Arts in English Writing Arts from SUNY Oswego, and a Masters of Science in Interactive Media from the University of Central Florida. He currently resides in the Hudson Valley region of New York.
WRITTEN & RESEARCHED BY Chris Motola Chris has been writing about small business topics since 2003. He has been featured in Fox Business, ABC News, Yahoo Finance, GoBankingRates, Newsweek, BizJournals, and other publications. He has a Bachelor’s of Arts in English Writing Arts from SUNY Oswego, and a Masters of Science in Interactive Media from the University of Central Florida. He currently resides in the Hudson Valley region of New York. Expert Contributor
Frank has been writing about payment processing and business services since 2015. He is a retired Air Force officer and a former practicing attorney. He has a Bachelor of Science degree in Psychology from The Pennsylvania State University and a Juris Doctorate degree from the Ventura College of Law, and currently resides in Paso Robles, California.
REVIEWED BY Frank Kehl Frank has been writing about payment processing and business services since 2015. He is a retired Air Force officer and a former practicing attorney. He has a Bachelor of Science degree in Psychology from The Pennsylvania State University and a Juris Doctorate degree from the Ventura College of Law, and currently resides in Paso Robles, California. Expert Contributor
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Table of Contents
Wells Fargo Merchant Services (WFMS) is the merchant services division of Wells Fargo, one of the largest and oldest banks in the United States. While getting a merchant account from your bank might seem like a good idea, large banking organizations such as Wells Fargo have little incentive to offer competitive terms or prices on payment processing. The promise of quicker deposit times — the main attraction to getting processing services through your bank — is rarely fulfilled, and many competing providers can now get your money to you just as faster, or even faster.
Wells Fargo uses Fiserv (formerly First Data) as its back-end processor, allowing it to market the popular Clover lineup of POS systems and terminals. However, it also means that you may have to deal with Fiserv for some issues, including account holds, freezes, or terminations.
While WFMS has mostly eliminated the three-year contract term and early termination fee for merchants on flat-rate pricing, we’re unwilling to recommend the company. Limited features, high fees, and reports of poor customer service all add up to an unremarkable service, despite being one of the largest payment processors available.
Have you had any personal experience with using Wells Fargo Merchant Services?
If so, please tell us about it in the Comments section at the end of this review. Thanks!
Software & Services 3.3
Breadth/Quantity Of Software & Services Quality & Appropriateness For Targeted Business DemographicHardware & Equipment 4.2
Equipment Pricing Ability To Source Your Own EquipmentYou’ll find just the basics at Wells Frago Merchant Services, with nothing that sets it apart from the pack in terms of products and services. If you’re looking for a bunch of value-added features, look elsewhere. Here’s a list of WFMS’s products and services:
Wells Fargo offers full merchant accounts through Fiserv, its backend processor. While this arrangement won’t affect you directly, it can slow things down if you experience a hold on a transaction or an account freeze or termination.
WFMS offers the popular Authorize.Net payment gateway for eCommerce merchants. This gateway supports recurring billing, online account management and reporting, and QuickBooks integration, among other features. You can also choose a virtual terminal-only option that supports digital invoicing.
If you’ve arranged to deposit your funds into a Wells Fargo account, and you opened that account recently, your funds can be deposited as soon as one to three business days. The best merchant accounts usually offer deposits within 24 to 48 hours. Taking up to three business days is a bit ridiculous. Check out our merchant’s guide to getting funds fast for more information on expedited deposits.
WFMS offers several countertop terminals that support EMV and NFC-based (contactless) payment methods. These currently include the Clover Flex and the Fiserv FD-150 models. You can purchase the hardware outright, rent it for an indefinite period, or sign up for a three- or four-year lease. Leases are handled through a partnership with First Data Global Leasing. We recommend that you buy your equipment outright. Terminal leases are costly and a bad move overall for your business; there are better ways to get credit card machines and other hardware.
WFMS no longer lists the Clover Station POS systems on its website, but it’s probably still available if you ask for it. You might be able to get a better deal from one of our favorite Clover resellers. Remember that Clover products cannot be reprogrammed to work outside of the Fiserv processing network, so your Clover POS system might turn into an expensive paperweight if you switch processors.
WFMS only offers the Clover Go card reader for mobile payments. You’ll also need the Clover Go G2 app to put together a mobile payments system. With Clover Go, you’ll be able to accept EMV and NFC-based payment methods, including Apple Pay, Google Pay, and Samsung Pay.
Small business owners can apply and get approved for a Wells Fargo merchant account quickly and easily by signing up online. To use this feature, you must have a Wells Fargo Business Checking Account and process less than $500,000 in annual sales. Also, at least one owner must be a US citizen. If you already process more than $500,000 per year, you’ll want to contact WFMS directly and obtain a customized pricing quote. Once you’re approved, the company uses Business Track, a third-party service, to provide online access to your account and monthly processing statements.
Wells Fargo is (obviously) a bank, and so it’s well-positioned to offer you a loan or cash advance if you need one to help launch or expand your business. In fact, it’s currently our top choice among the best banks for small business loans. While we can’t recommend Wells Fargo for merchant services, it’s a great choice if you need to take out a loan.
If you just need a basic solution to accept online and in-person payments, WFMS is workable. However, there are certainly some limitations in terms of flexibility. To access the lowest rates possible, you’ll have to stick with the card terminals and gateways that WFMS offers.
Pricing 3.0
Pricing Model (Interchange+, Subscription, Tiered, Hybrid) Pricing TransparencyAffordability 3.0
Account Fees Fee TransparencyAlthough other processing rate plans are available, Wells Fargo Merchant Services publishes specific flat-rate pricing information on its website. These rates are intended for small business users and appear to be part of a strategy to compete with Square. Rates for consumer sales are as follows:
| Monthly Processing Volume | Card-Present (Tapped, Dipped, Or Swiped) Rate | Card-Not-Present (Online Or Keyed-In) Rate |
|---|---|---|
| Less than $14,999.99 | 2.60% + $0.15 per transaction | 3.40% + $0.15 per transaction |
| $15,000-$39,999.99 | 2.40% + $0.15 per transaction | 3.20% + $0.15 per transaction |
| More than $40,000 | 2.20% + $0.15 per transaction | 3.10% + $0.15 per transaction |
For B2B transactions, the following rates apply:
| Monthly Processing Volume | Card-Present (Tapped, Dipped, Or Swiped) Rate | Card-Not-Present (Online Or Keyed-In) Rate |
|---|---|---|
| Less than $14,999.99 | 2.60% + $0.20 per transaction | 3.99% + $0.20 per transaction |
| $15,000-$39,999.99 | 2.50% + $0.20 per transaction | 3.75% + $0.20 per transaction |
| More than $40,000 | 2.40% + $0.20 per transaction | 3.50% + $0.20 per transaction |
For high-volume merchants, WFMS also offers customized pricing quotes that may or may not include the option to use interchange-plus pricing. However, complaints from merchants suggest that many business owners are simply offered a more expensive tiered pricing rate plan. Unfortunately, the company no longer discloses a minimum monthly processing volume requirement to obtain customized pricing.
As with any other merchant account provider, you will also have to pay a number of recurring monthly and annual fees, as well as incidental fees under some circumstances. WFMS currently discloses the following standard fees:
You can expect that your contract will also include a number of monthly, annual, and incidental fees as well as those listed above. PCI compliance fees are a definite possibility, although these fees’ actual costs will depend on the pricing package you sign up for. We strongly recommend that you read your entire contract very carefully before you sign up, so you won’t be surprised by any of these “hidden” fees later on.
If you’re going to pursue a customized pricing option, be prepared to negotiate for the best terms and rates you can get. Don’t simply accept the first quote that’s offered to you! (Need help negotiating? Download our guide to how credit card processing works to learn how to go about it.)
Sales Practices 2.4
Sales Style Sales EthicsWeb Presence 2.7
Website Disclosures Social MediaAlthough it uses an in-house sales team to market and set up accounts, WFMS doesn’t fare well overall in this area. Here are some of the things you need to know:
Commitment 0.9
No Longterm Contract Required Shorter Contract Upon Renewal/Month to Month RenewalsETF & Other Fees 3.0
Presence & Transparency Of ETF Other FeesLike most providers, WFMS doesn’t advertise its contract terms on its website. These terms generally depend on the type of pricing plan you’re on:
WFMS offers its terminals and POS systems for direct purchase, with prices disclosed on its website. However, your sales agent may still try to offer your equipment through a leasing contract, which we strongly urge you to avoid at all costs. Leasing agreements are non-cancellable, and the sum of the monthly lease payments will vastly exceed the value of the equipment over the full length of the lease.
Personal Support 4.1
High-quality customer service mentioned in several reviews and/or the reviewer has had positive experiences with customer service
Wide range of support hours Multiple forms of support available Training/personalized support available & affordableSelf-Service 2.6
Extensive knowledgebase available Knowledgebase is helpful based on reviewer's personal experience and/or customer reviews In-depth tutorial videos availableWells Fargo offers a variety of points of contact, which are available around the clock. Unfortunately, the quality of that support is frequently criticized as being poor or not available. While WFMS will assign you a dedicated relationship manager when setting up your account, you may or may not be able to reach that person when you need them.
| Wells Fargo Merchant Services Support | Availability |
|---|---|
| Phone Support | |
| Email Support | |
| Support Tickets | |
| Live Chat | |
| Dedicated Support Representative | |
| Knowledge Base or Help Center | |
| Videos & Tutorials | |
| Company Blog | |
| Social Media |
Another missing feature is the lack of a knowledgebase or self-help guide on the WFMS website. Educational resources are limited to a basic FAQ and a handful of product guides. For Clover products, we recommend referring to the Clover website for more detailed information.
Customer Feedback 1.0
Multiple, genuine customer reviews available with positive feedback about the software & providerReview Site Aggregate 1.9
Average calculation of scores from 3-4 reputable customer review sites, such as G2, Software Advice, GetApp, & Trustpilot
Wells Fargo Bank has, unfortunately, been in the news a lot over the last few years for a series of “bogus account” scandals and other improprieties that have cost the company hundreds of millions of dollars to settle. While most of these incidents have affected other divisions of the bank, a 20217 class-action lawsuit filed against WFMS claimed that it had engaged in deceptive sales practices by failing to plainly disclose the three-year term agreement, early termination fees, and other monthly fees. WFMS settled this lawsuit in July 2021 for $40 million.
Wells Fargo Merchant Services doesn’t have a separate profile with the BBB, but you can find some information about it under the main Wells Fargo bank profile. Wells Fargo is not accredited by the BBB, having lost its accreditation in 2016 in the wake of the phantom account scandal. It currently has an F rating by the BBB. Wells Fargo Bank has received 5,765 complaints within the past three years, out of which 2,008 were filed within the past 12 months. However, most of these complaints are not specifically about the Merchant Services division.
User reviews left on sites such as Trustpilot, the BBB, and other third-party review sites reveal several common issues to look out for, including:
Wells Fargo Merchant Services previously included a few customer testimonials on its site, but appears to have removed them. While vendor-provided testimonials are always pretty one-sided, the fact that merchants are willing to go on record and put in a good word for a company is pretty compelling. You won’t find this with WFMS, although there may be some unsolicited praise for the company buried within Wells Fargo’s social media accounts.
If you’ve had a positive experience with WFMS, please tell us about it in the Comments section below.
Even if you already have a bank account with Wells Fargo, we cannot recommend Wells Fargo Merchant Services. With the vast resources of Wells Fargo Bank behind it, there’s no reason why WFMS can’t offer a more complete range of products and services, more competitive terms and costs, and top-notch customer service to back them up.
But it doesn’t. Instead, it offers a surprisingly limited array of products and services with customer support that’s mediocre at best. It should be abundantly clear by now that relying on brand name recognition is no longer an advantage due to the continuing controversies swirling around Wells Fargo.
If you’re determined to sign up with a big, stable bank as your payment processor, try out Chase Payment Solutions (formerly Chase Merchant Services). It has solid features and a reputation for fairness. Otherwise, check out our roundup of the best payment processing companies for small businesses to see the best-rated merchant services providers in the industry.
We evaluate and test each payment processor that we review at Merchant Maverick, placing special emphasis on certain key characteristics in order to generate our granular ratings for merchant accounts and credit card processors.
Weighted Rating Breakdown