If you own a small- to medium-size 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. 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 SilvermannPersonal 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.

  • Four point-of-sale options provide diverse services with varying benefits and costs.
  • FD150 terminalIdeal 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. It connects with 2.4 GHz Wi-Fi, ethernet or a dedicated analog phone line. Tokenization and encryption protects sensitive card data, and there are no recurring software fees.

    The FD150 appeals to merchants who yearn to settle several batches a day and want the ability to accept a healthy array of payments, including Apple Pay and other digital wallets, chip cards, PIN-and-signature debit cards and contactless payments. It’s also great if you need to support several merchant IDs within the same location.

    Expect to pay $495 (not including tax) for the device, and $9.95 in service fees each month.
  • If you want to accept payments using your own smartphone or other device — whether curbside, online, during deliveries or on the go — this pocket-size card reader/virtual terminal is ideal. Good candidates include businesses that require a portable option for accepting in-person or digital invoice card payments. That can particularly benefit businesses that include repair experts, florists, appliance delivery professionals and caterers.

    Clover Go works with credit, debit and contactless cards as well as various digital wallets. Encryption and tokenization keep card data safe, and you can send receipts through email or text. You can also personalize your Clover Go through apps to assist with payroll and shift management.

    The price is $112 (tax not included), plus a $9.95 monthly service fee.

  • Need a handheld virtual terminal that accepts swipe, tap and dip payments? If so, the Clover Flex is a handy tool that offers many of the same benefits of Clover Go: It’s a handheld gadget that enables you to take a card payment virtually anywhere, it’s customizable through different apps, it comes with a built-in receipt printer, and it works with credit, debit and contactless cards as well as digital wallets.

    But its rich array of features especially caters to merchants who require the option to print, scan and accept on-screen signatures, accepting payments with or without an Internet connection. It also integrates with restaurant, register or other software.

    These enhancements increase the price tag to $675 plus tax. Count on paying a $9.95 monthly service fee, too.

  • This device is meant to substitute bulky terminals with a compact unit boasting a built-in receipt printer and integrated PIN pad that can give you more counter space while enhancing management and payment capabilities. What’s especially nice about the Mini is that the screen easily pivots from the cashier to the customer to obtain a PIN or signature.

    Businesses that stand to benefit from this design include retail, restaurant and personal service operations. But count on paying $799 plus tax for this gadget.

POS transaction fees and requirements: What to expect

Although they offer the convenience of integrated payment systems, businesses need to be cognizant 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. 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 SchmiedFinancial 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 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 ParkerFounder, 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 ShirshikovAdjunct professor of economics, 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 around fees and hidden costs along with mixed online reviews should trigger a much closer look before enrolling in any of these offerings.