Merchant Warehouse Reviews

Merchant Warehouse Reviews


Merchant Warehouse (MW) was established in 1998 and is based out of Boston, Massachusetts. They have dealt with more than 100,000 merchants, and process 7 billion dollars in a year. No doubt, they are counted among one of the bigger merchant account providers.

I expect Merchant Warehouse to be flawless in their dealings since they have been awarded ETA’s (Electronic Transaction Association) 2009 ISO of the year. So far they have maintained their standards without any disappointments.

It seems they have been running their business very nicely for more than a decade. Due to their consummate customer service duration they do deserve ETA award.

They are very active in submitting rebuttal’s to complaints and for that their BBB rating is excellent. Honestly speaking I haven’t come across any other merchant account provider who works so hard to resolve arguments.

They are among those few merchant account providers who realize the importance to educate merchants regarding the procedure and the industry. For this reason they have a blog providing lots of educational information and also serve as a mean of networking and feedback.

Their testimonial section is really good and they don’t make you sign any contract. They not only provide interchange-plus pricing, but also offer low cost terminals, and moreover, in case you are not offered the lowest rates you have a guarantee of $100 cash. Great news!

They have active Twitter, LinkedIn and Facebook pages where you can easily connect with them.

I rate Merchant warehouse 4.5 out of 5.

Date Established:

Boston, Massachusetts.

Domain Name(s):


Parent/Partner Company:
Merchant Warehouse has a sister company by the name Capital Bankcard. Both companies are owned by the same entity.

Registered ISO/MSP.

Acquiring Bank(s) (Acquirer):
US Bank, HSBC Bank, National Association and Wells Fargo Bank.

Payment Processor(s):
First Data.

Payment Gateway(s):
Authorize.Net or First Data Global Gateway (formerly known as LinkPoint).

Trust Symbols:
You can find the Merchant Warehouse BBB profile here. As of this post they have a “A+” rating with 97 complaints in the last 36 months.

Negative Reviews:
I found some negative reviews about them on RipOffReport and BBB plus you can also look into the user review section below.

To most of these complaints rebuttals are being provided my one of their representative, so they are really putting in efforts to resolve disputes.

Common Complaints:
I found it really hard to find any commonalities among the complaints, however below are the some complaints which I think should be discussed.

  • Faulty terminals:

There have been few complaints about flawed or defective terminals and it’s really hard to find who is responsible for such faults. Sometimes the problem is in the terminal while sometimes people working them are responsible. So it’s quite unpredictable.

  • Withholding of funds:

For this there can be several reasons. You can be suspended or closed down in case of charge-back and/or suspicious charges. Complaints pertaining to funds withholding mostly have First Data (FD) mentioned along with Merchant warehouse, and since it looks that Merchant Warehouse contract out their transaction dealings to First Data, so it’s quite evident that here responsibility rests on First Data. There is a chance that FD is covering those accounts, in case merchants using FD platform are being embarked by Merchant warehouse. If that’s true, then FD has the power to cease an account without Merchant Warehouse’s permission. This also applies to any acquiring banks affiliated with Merchant Warehouse. This makes it quite clear that to keep a check on security matters; a good ISO/MSP would obviously own their personal risk department for monitoring their merchant accounts.

Verifiable Testimonials/References:
There are plenty of testimonials on the MW website. Feel free to check them out.

The Merchant Warehouse online application is secured by Verisign.

Contract Duration:
No contract. Be sure you verify this in your contract.

Cancellation Fee:
No cancellation fee. Be sure you verify this in your contract.

Interchange-Plus Pricing:
Merchant Warehouse also provide interchange-plus pricing  which may vary with your processing volume. As a matter of fact, merchants processing less than $10k per month are usually not offered interchange-plus by most of the providers. But there is a chance that negotiations might be helpful in this case.

Seasonal Downtime:
Seasonal downtime is also offered by Merchant Warehouse.

Product/Service Offering:
Retail (Credit/Debit), Online/e-Commerce Payments, Mail Order/Telephone Order (MOTO), Wireless, Cash Advance, Gift & Loyalty, Point-Of-Sale (POS), Check Processing.

Product/Service Specialty:


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