Fattmerchant Review

Pros:

  • pros Transparent and straightforward pricing
  • pros Low, fixed transaction fees
  • pros No percentage markup rate
  • pros Price scales with transaction volume
  • pros Month-to-month billing with no long-term contracts
  • pros No cancellation fees

Cons:

  • cons Additional costs for online shopping carts/virtual terminals
  • cons Expensive for business with low transaction volumes
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Score: A

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Product Overview

Fattmerchant is a unique credit card processor. It bundles together a number of services for a single monthly subscription payment as it works to empower medium-size businesses. It was founded on the principles of a transparent pricing model, but that’s not the only reason for its popularity.  

The company doesn’t have percentage markup rates. Instead, it offers fixed wholesale transaction rates and subscription-based plans. According to Fattmerchant reviews, the combination of subscription-based pricing and month-to-month billing make this provider highly alluring. However, Fattmerchant isn’t suitable for small businesses.

Pricing Plans

The monthly cost of the plan is determined by your transaction volume. We performed calculations based on several assumptions in order to give you an estimate of your monthly total. 

For our calculations, we assumed transaction volume would consist of individual $100 transactions, then applied an average interchange rate of 2.2% + $0.15. 

Of course, this is just a model and only meant to give you a rough numerical estimate that can be useful when making a credit card merchant fees comparison. Keep in mind that you’re paying the interchange fees to the issuing banks, not to Fattmerchant.

 

Up to $500,000 annually: This is the smallest and cheapest payment processing plan available at Fattmerchant. The starting cost is $99/month. In addition to the $99 monthly membership fee, you’ll be paying interchange + $0.08 per transaction for swiped payments and $0.15 for keyed ones. There’s no markup interest, and the dreaded cancellation fees are also excluded.

Furthermore, there are no batch, PCI compliance, and statement fees. These are not especially high fees, but they stack up over time, so their exclusion shouldn’t be overlooked. Like Fattmerchant’s other plans, this plan includes several features regarding card-present technology, which is frequently commended in reviews of Fattmerchant.

The features include a reader that accepts both swiped and tap-to-pay cards, electronic signatures, the ability to process large transaction volumes from one credit card, and wireless capabilities. You also get access to Fattmerchant’s Omni integrated payments platform, which centralizes all of your transactional data. Here, you’ll be able to find features like payment processing, same-day payment data, invoicing, billing, and inventory management. 

Even though this is Fattmerchant’s cheapest credit card processing plan, it comes with a multi-channel, in-house customer service team that’s available via telephone, email, or live chat. 

As far as payment security goes, all of the payment tiers come with Level 1 PCI Compliance – the highest level of PCI compliance available. The customer data you’ll be handling will be tokenized and encrypted – protecting against possible breaches.

A typical monthly cost for companies processing $20,000 in monthly swiped transactions would be $685. If you’re processing $40,000 per month, the cost would be about $1,071.

From $500,000 to $5 million annually: This Fattmerchant pricing plan is designed for companies processing between $41,600 and $416,000 on average every month. The monthly membership fee is $199. The transaction fee is $0.06 for swiped and $0.12 for keyed transactions.

The plan includes two free features that aren’t available with the low-volume option – an assigned customer success manager and priority risk monitoring. Most reviews on Fattmerchant will tell you that these features aren’t essential. But that doesn’t mean they aren’t valuable. Risk monitoring is especially useful in protecting your business from fraudulent transactions.

Companies processing $100,000 per month would pay about $2,609. If your monthly transactions are $400,000, then your total monthly fee would be approximately $9,839.

Over $5 million annually: Fattmerchant’s high-volume plan is geared toward larger companies with significant transaction volumes. It’s suitable for businesses processing more than $5 million per year or an average of more than $420,000/month. The price for this plan is disclosed only after consultation with Fattmerchant sales agents. However, with the help of online reviews for Fattmerchant, we can safely conclude that this option further reduces transaction fees.

The only feature that separates this plan from the previous one is expedited service request resolution. Although it is useful, the feature isn’t central to the offe

Features

Before delving into individual plans that are available with this credit card processing provider, we’ll list all of the features.

No markup fees: Fattmerchant’s most inviting feature is the offer of fixed wholesale transaction rates instead of charging a percentage markup in addition to interchange fees. Markup fees are not only more expensive, but they make it harder to predict what your monthly costs will be. In addition, all Fattmerchant plans come without statement fees, PCI compliance fees, and batch fees. And there are no cancellation fees, which isn’t the case with many credit card merchants.

Merchant account: Unlike many of its competitors, Fattmerchant offers full merchant accounts to all subscribers. Each business gets a unique merchant ID number without any additional fees.

Card Present Technology: All of Fattmerchant’s pricing packages come with a slew of card-reading capabilities and equipment. These include a reader for EMV, NFC, and swiped-card payments, batch notifications, and electronic signature capture.

Analytics: Another great tool is the Omni analytics online platform. It allows you to keep track of crucial data like same-day payments, growth, projections, customer reports, and heatmaps.

Customer Support: Fattmerchant’s support team is available to all users. The company’s agents stand ready to assist you in overcoming any hurdles. Support is available via phone, live chat, and email. Most Fattmerchant reviews describe the support staff as kind, patient, and helpful. Our own experience was no different.

Security: The protection of your data is a top priority at Fattmerchant. This is a Level 1 PCI Service Provider – the highest level of PCI compliance. All customer data is tokenized and encrypted, protecting the highly sensitive material from bad actors.

Paid Add-ons

Mobile POS, virtual terminals, online shopping cart, API: While Fattmerchant offers cheap credit card processing, it’s not an all-in-one service. If you want to use additional point-of-sale options, the online shopping cart, the API, or integrations, you’ll have to dish out more cash. Most of these services cost an additional $99 per month.

Advanced reporting and customization: You can get more detailed reporting and customization capabilities for your invoices and receipts for an additional monthly fee. Detailed reports will cost you an additional $20 per month, while other services are available for another $10 per month.

Bank payments: Fattmerchant gives you the option to accept bank transfer payments at your business. The service costs an extra $49 per month plus a $0.25 transaction fee.

Additional security: If you’re worried about the safety and endurance of the terminals you’re using, Fattmerchant offers additional hardware protection and dedicated technical support for only $10 per month. Most Fattmerchant reviews appear to be in agreement that this is a bargain, and we advise against trying to cut costs when it comes to security.

Setup Process and Ease of Use

Setting up an account with Fattmerchant is quick and easy. Fattmerchant uses Authorize.net as a payment gateway, meaning you’ll have both a payment gateway and a merchant account if you go with Fattmerchant. You can complete the setup process through an online form or by contacting a sales representative who will offer analysis of how much you’ll be saving by using Fattmerchant and provide you with a quote.

After setting up a merchant account, you’ll receive the requested equipment. It will already be programmed by Fattmerchant’s team, meaning you can start accepting credit card payments right away. While setup times can vary, customer reviews of Fattmerchant report that the process is quick.

Contract Length and Termination Conditions

Most payment processors tie you down to long-term contracts and have steep cancelation fees. But Fattmerchant adopted a more user-friendly approach. Don’t worry, your merchant account will still be covered by a contract. But the billing is performed on a month-to-month basis, and there are no long-term contracts. 

Moreover, there are no cancellation fees. When you decide to close your account, Fattmerchant will continue processing your payments up until the end of that month, and you’ll pay the transaction fees for only the transactions they process. None of the Fattmerchant reviews had issues with contracts.

Integrations

Fattmerchant offers a variety of integrations with popular gateways or POS systems. This can be extremely useful if you’re switching from a pre-existing setup, and you don’t want to change the entire system. According to their tech team, Fattmerchant is compatible with over 90% of third-party solutions.

Compatible gateways and platforms

First Data Omaha, Nashville, North, and Rapid Connect

TSYS

Authorize.net

Blackline

SPin

POS systems Fattmerchant integrates with

Aloha

Micros

Revel

Vend

ShopKeep

During our Fattmerchant review, we found that there is no additional charge for these integration services. However, you might be expected to pay the gateway and POS providers that you’re integrating with.

BBB Rating

Fattmerchant currently holds an A- rating with the Better Business Bureau. They’ve been in business for seven years but are yet to be accredited by the BBB. Nevertheless, we found many stellar Fattmerchant reviews on BBB, most of them recent.

Some of the Fattmerchant reviews on BBB were negative. Most complaints relate to charges that appeared after the account was cancelled and transactions that were deemed fraudulent. 

Thankfully, most post-cancellation charges were the result of minor errors. The parties behind the complaint were refunded, and the complaints were settled. The allegations of fraudulent transactions had nothing to do with the processor. But customers often mistakenly complain to payment processors instead of banks.

Customer Service

We have nothing but praise for the support team at Fattmerchant. They are polite, professional, patient, and ready to help. Based on other reviews of Fattmerchant, many people agree with our assessment.

Support agents can be reached by telephone, live chat, or email. They are more than happy to answer any questions whether you’re a customer or just an interested party. All of the support staff is in-house, meaning you won’t be dealing with some overburdened third party.

Conclusion

Our overall impression is positive. Fattmerchant has one of the lowest credit card processing fees on the market. It is a great choice for businesses that are looking for a trusted credit card payment processor thanks to its transparency, straightforward pricing, easy to predict costs, month-to-month billing, and the absence of markup fees. 

However, Fattmerchant is definitely not tailored for small businesses with very limited transaction volumes. Still, our experience coupled with the many positive Fattmerchant reviews in our literature review affirm that this is a trusted operator. We highly recommend it. And if you aren’t sure whether Fattmerchant would end up saving you money, get in touch with a sales representatives and get a quote.

FAQ

How much does Fattmerchant cost?

The cost of Fattmerchant pricing plans mostly depends on your transaction volume and any additional terminals or features you choose. The prices start at $99/month and increase by $100 for every $500,000 in transaction volume.

What is the best credit card processing provider for small businesses?

Determining which processor is best for your business depends on which features you want and on your transaction volume. The usual question is who comes out on top in the Fattmerchant vs. Square duel. That depends on your business. Thanks to the low fixed transaction rates, we suggest either Fattmerchant or Payment Depot.

What is the cheapest credit card processing company?

Some of the cheapest credit card processors are Fattmerchant, Square, Payment Depot, and National Processing.

What is the best way to accept credit cards?

Your business should strive to accept credit cards in person (keyed and swiped), through the mobile reader, and online.

What is the average credit card processing fee?

Credit card processing fees range from 1.5% to 3.5% depending on whether the transaction is swiped or keyed. The keyed transactions are more costly. The reason for so many positive Fattmerchant reviews is that the provider doesn’t charge a markup percentage over those fees. Instead, it charges fixed monthly fees and per-transaction fees.