PaySimple Review: Should You Sign Up?
PaySimple is one of the least transparent processors we've looked at. Though they have a sleek website, fees are not well documented. The company also uses an outdated tiered pricing model that makes predicting your monthly costs tricky. PaySimple does have some features that make it worthwhile for large businesses, including customer data collection and support for recurring billing. However, if you're just starting out and processing very little each month, you should go with Square or Stripe instead.
- PaySimple Review
- PaySimple Fees, Features & Benefits
- How Does PaySimple Compare to Other Credit Card Processors?
Review: Should You Get PaySimple for Credit Card Processing?
PaySimple can be a good payment processor for large businesses that are more concerned about getting a rich set of features, rather than cutting costs. This merchant account provider comes with tiered pricing that is among the least transparent in the processing industry. We recommend businesses seek out interchange plus or fixed prices instead. Tiered prices can make forecasting your monthly costs near-impossible. However, PaySimple also comes with some features, like recurring payments and detailed data collection, that may make the price worthwhile for mid-to-large sized businesses.
|Good For…||Bad For…|
|Those who want to collect and store data about their customers||Small businesses processing less than $5,000 each month|
|Business owners who need support for both ACH and recurring billing||Anyone who values transparent pricing and fees|
If you operate a new or very small business, PaySimple is a poor choice because of its fees. First, as we mentioned it can have high and unpredictable transaction fees. Secondly, it comes with a rather high monthly fee of $49, for the most basic package. If you want to simply get your business off the ground and accepting card payments, you'll be better off initially going with a processor like Square or Stripe. These are more tailored towards working with startups.
Once you begin processing over $5,000 each month, you should start shopping around for a merchant account, though even then PaySimple isn't the best option. The fact that this processor engages in tiered pricing is a big knock against it. Mid-to-large sized businesses will be better off going with something like Dharma Merchant Services instead. They are far more transparent, come with lower fees, and provide most of the same features.
Bottom Line: PaySimple is hard to recommend due to high fees and a lack of transparency. You won't find any of the fees disclosed on their website, which means you will be forced to negotiate rates blindly when signing up. Small businesses will be better off with Square, PayPal or Stripe, while mid-to-large sized companies should look at Dharma Merchant Services instead.
PaySimple Fees, Features & Benefits
|PaySimple Credit Card Processing||Details by Plan Name|
PaySimple offers merchant accounts for both card present and card not present transactions, however, it specializes in the former. The processor uses tiered pricing, which makes it difficult to predict the actual cost of using PaySimple for your business. The only rate they advertise is "as low as 2.49% + $0.29 per transaction". This applies to qualified transactions only. Mid-qualified and high qualified can sometimes be as much as 50% more expensive.
There are two plans on PaySimple that include payment processing: PaySimple Pro and PaySimple Enterprise. These come with $49.95 and $99.95 fees respectively. The Enterprise plan is intended for large businesses only, and comes with API customization and the ability to support multiple retail locations. PaySimple Pro is the starter package that will be the best fit for most businesses.
PaySimple supports recurring billing, which is the feature the company promotes the most. There is also a number of high-level addons available, such as online reporting, customer data tracking, and the ability to manage customer communications. For example, you can create user groups and put customers in them that meet specific criteria. You can then send out e-mails, or other communications to them specific for those customers. This may be good, for example for debt reminders.
Finally, it's worth mentioning that PaySimple can handle automated clearing house (ACH) payments and eChecks. While it's standard for many merchant account providers, some credit card processors, like Braintree and PayPal, don't support these types of payments.
How Much Can PaySimple Credit Card Processing Cost Your Business
As we mentioned, PaySimple does not disclose its rates, so the only way you can truly predict the cost is to obtain a custom quote and do the math yourself. However, to give you a jumping off point, we decided to take the lowest rate advertised by PaySimple, and show you the monthly cost of using their PaySimple Pro service. Remember, these are the lowest rates possible. In reality, your monthly bill is likely to be as much as 50% higher.
|Monthly Sales||Estimated Monthly Cost|
How Does PaySimple Compare to Other Credit Card Processors?
Before you decide to sign up with a payment processor, like PaySimple, you should take a moment to consider all your options. This will maximize your chance of finding the best value for your business. To help with that process, we took a look at how PaySimple compares to some of its competitors.
PaySimple vs Authorize.net
Both PaySimple Pro and Authorize.net are some of the most expensive credit card processors. The latter charges a $25 monthly fee, and a $49 setup fee. Though expensive, this monthly fee is still lower than PaySimple's $49.95 charge. For the most part, we like Authorize.net much better than PaySimple because of its commitment to transparency. Their website discloses all the fees it charges merchants for transactions (2.9% + $0.30) along with the monthly and setup fees.
Authorize.net provides many of the same features you get with PaySimple, including recurring billing and support for ACH payments. One thing Authorize.net does not advertise is any support for collecting detailed customer data. If this is something that's important feature to you, consider whether it's worth the higher monthly fee.
- $49 setup fee
- $25 monthly fee
- 2.9% + $0.30 fee per transaction
- Read Full Review
PaySimple vs Stripe
Stripe is one of the best online credit card processors for startups and small businesses. If your company is processing fewer than $3,000 - $5,000 per year, this is probably the best solution for you. Stripe has almost no overhead costs to it. There's no monthly fees or minimums. You pay just for the processing of each transaction, which comes out to 2.9% + $0.30. However, keep in mind that with Stripe you will get very little bells and whistles on top of that. Stripe is all about giving you a well-documented API and allowing your developers to build out exactly the solution they need.
The reason businesses processing higher volumes should stay away from Stripe, and look for merchant account providers like PaySimple, has to do with dependability. Payment aggregators, like Stripe, typically give worse customer service and are more prone to freezing your account. Once you begin processing a lot of sales, these things can end up costing your business way more that what'd you'd lose by paying a nominal monthly fee.
- Online only
- 2.9% + $0.30 per transaction
- No monthly fees or minimums
- Read Full Review
PaySimple vs Square
The advantages Square has over PaySimple are similar to the one's Stripe did in our comparison above. Square is really designed for new businesses processing relatively few transactions. Unlike both Stripe and PaySimple, Square excels at card present credit card processing, which is a major point of differentiation. If you do most of your business at a brick and mortar location, consider getting Square.
Like Stripe and Authorize.net, Square is very transparent about its pricing. You pay 2.75% for each offline transaction, and 2.9% + $0.30 for each online payment. We highly value transparency about pricing, since it's what often leads to a business owner to getting the best deal. That is why we want to highlight that point again here. With Square, you can accurately predict your future processing costs. Doing the same will be significantly harder with PaySimple, even after you obtain a quote, due to the tiered pricing.
- Fixed pricing. 2.75% for each swiped transaction, and 2.9% + $0.30 for each online transaction
- No monthly fees or minimums
- The best mobile credit card processor
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