CDGcommerce Review: Should You Use This Service?

CDGcommerce Review: Should You Use This Service?

CDGcommerce Review: Should You Use This Service?

CDGcommerce is a solid credit card processing option for mid-sized companies that want to keep costs low. CDG offers interchange-plus pricing, which we really like due to how transparent and low cost it is. This processor also doesn't come overloaded with additional fees. The only fee you need to put up with is a $10 monthly support fee, which is low when compared to other processors. If your business is just starting out, you can probably cut costs and do just as well with Square or PayPal.

Review: Should You Get CDGcommerce for Credit Card Processing?

We recommend CDGcommerce for most mid-sized businesses, especially non-profits. They are relatively inexpensive when compared to other merchant account providers and processors. If you're particularly cost sensitive, know that CDGcommerce doesn't charge you any statement fees, PCI fees, AVS fees and it doesn't come with any monthly minimums. These are the types of charges that tend to severely drive up processing costs with other services. The one fee CDGcommerce charges, besides transaction fees, is a $10 monthly support fee, which you wouldn't get charged with processors intended for true startups — like Square or PayPal. If you're just starting out and won't have a regular stream of purchases every day, consider these two other vendors to further lower costs.

Good For…Bad For…
Mid-sized and large businessesStartups
Non-profitsBusinesses that have irregular and infrequent sales

CDGcommerce offers a very interesting service for companies that are worried about security and data breaches. For $15 per month, you can get cdg360 which, among other things, provides you with up to $100,000 in insurance against certain data breaches and provides free scans of your website. We haven't seen many other merchant accounts come with a suite of security features this robust for this low of a fee. If you're a company worried about your payments security, this is a good feature to have.

The other noteworthy thing we like about CDGcommerce is their lower rates for non-profits. Again, this is not something you'll commonly find with other credit card processors. If you're running a 501(c)(3) organization this can greatly reduce a portion of your overhead costs. Registered non-profits pay about 33% less in transaction fees when using CDG.

Bottom Line: CDGcommerce can be a great solution for your credit card processing needs, especially if you are a non-profit. If you're just starting out and expect irregular cash flow, you should go with Square, PayPal or other services that don't charge any monthly fees.

CDGcommerce Fees, Features & Benefits

We've seen CDGcommerce advertise both interchange plus and tiered pricing on their website. At the time of writing this review, their website is showing interchange-plus prices. However, because of this inconsistency you should make careful note of the type of price you see before you sign up. While we usually admonish businesses for using tiered pricing, CDGcommerce is actually very transparent about when certain fees are charged, regardless of which type of pricing model it employs. Still, we recommend businesses opt for interchange plus whenever possible.

CDGcommerce Credit Card ProcessingDetails
Transaction Cost (over interchange)
  • Swipe: 0.25% + $0.10
  • Online: 0.30% + $0.15
  • POS: 0.25% + $0.10
  • Mobile: 0.25% + $0.10
  • Non-profit: 0.20% + $0.10
Networks Accepted
  • Visa
  • Mastercard
  • Discover
  • American Express
Monthly Fee$10
Monthly MinimumNone
Extra Features
  • cdg360: $15/month
  • Signing bonus between $225 and $600
  • High-volume pricing begins at $100,000/month
  • No PCI fees/TIN/1099k fees

CDGcommerce provides solutions for all types of businesses, though it specializes in eCommerce and mid-sized businesses. All the plans — online, swipe, POS, mobile and non-profit — come with a $10 monthly support fee. This is what makes it not suitable for startups with infrequent processing needs. The $10 fee will still eat into any savings you might get from marginally lower transaction costs.

This is one of the few credit card processor to offer discounted rates for non-profits. If you operate a registered 501(c)(3) organization, you pay just 0.20% + $0.10 above interchange. This is CDGcommerce's lowest rate. If you need to process donations or make sales, this is one of the cheapest ways of doing so. That means you'll be able to pass on more of your revenue towards whatever cause you work towards, and less of it will be eaten up by transaction fees.

The standout feature on CDGcommerce is cdg360, which you can get for an additional fee of $15 per month. This is a suite of security features aimed at helping protect your customers' payment data. You receive a $100,000 breach protection plan that serves like insurance in the event of a data breach. If you suspect your payment data has been compromised, cdg360 will cover the cost of a required certified forensics investigation, up to $100,000. The package also covers additional services, like card replacement costs and any penalty fees that are incurred as a result of the data breach.

Cdg360 also provides staff security awareness training to your employees. This comes in the form of an online tutorial, which you can track the progress of on an employee-by-employee basis. You can read more about cdg360's features, like vulnerability scanning, on their website.

How Much Can CDGcommerce Cost Your Business

The way transaction fees are presented can often obscure the actual cost of accepting a credit card. That's why we modeled what you'd be paying CDGcommerce across several different hypothetical businesses. These estimates are based on an interchange-plus pricing scheme, with an average rate of 2.2% + $0.22 and an average transaction size of $75.

Transaction Volume (Monthly)Swipe/POS/Mobile Monthly Cost
$10,000$301
$25,001$726
$50,001$1,417

How Does CDGcommerce Compare to Other Credit Card Processors?

Any good businesses owner knows that to get the best price and product, it's important to compare several different options. That's why in every review we look at other alternative credit card processors a merchant could use. Below you'll see how CDGcommerce stacks up against some of its competitors.

CDGcommerce vs PayPal

We recommend PayPal to companies that are just starting out and need a quick way to accept payments. Unlike CDGcommerce, PayPal has no monthly fees meaning it will be significantly cheaper for businesses that process relatively few credit card transactions each month. By our calculations, if you're processing below $1,500 each month, go with PayPal instead of CDGcommerce. Companies of that size likely don't need to extra bells and whistles CDGcommerce provides, including the cdg360 solution.

While PayPal is cheap, it's by no means featureless. You can generate various reports to track your company's performance. You can also upgrade to a paid merchant account once your business grows that can give you more dedicated support. PayPal Payments Pro costs $15 per month, and is worthy of consideration. When deciding between the two, you should ultimately think about whether the extra $10 per month you could be paying to get cdg360 is worth it for your business, over the standard features you'd be getting with PayPal Payments Pro.

PayPal Highlights

  • Simpler to set-up for e-commerce, but more expensive if you want it built into your website
  • 2.7% per retail transaction
  • No monthly fees
  • Read Full Review

CDGcommerce vs Shopify POS

We recommend Shopify POS for small and mid-sized businesses that are predominantly web based. CDGcommerce is built to better handle restaurant or in-store purchases, especially if you want to do things like easily keep track of your inventory. Shopify is known for their online e-commerce solutions, so it's unsurprising that this is where the service truly shines. If you run an online store, and want a robust set of features and apps to manage your company, we highly recommend Shopify.

While Shopify provides offline retail solutions, these aren't as competitive from a price standpoint as some competitors. For example, the cheapest plan charges $29 per month, and only allows you to have 2 staff accounts. You need to pay $79 per month to bring that number up to 5, and $299 for a 15-staff plan. If you operate a physical store, CDGcommerce is the way to go.

Shopify Highlights

  • Better for online/e-commerce use
  • Monthly fee between $29 and $299
  • 2.4%-2.9% fee for online transactions; 2.4%-2.7% fee for in-person transactions
  • Read Full Review

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