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Dharma Merchant Services is a financial services company that specializes in providing merchant accounts to business owners with average yearly revenue of $500,000 and more.
Despite the fact that it is not a bank, Dharma’s process for opening up an account can be completed online in less than 24 hours.
This article will go into detail about how you should evaluate this type of service if your business would benefit from one at all. Dharma provides merchants with competitive rates on some popular options but many believe there are better options out there for those who need more customized solutions such as rewards programs or other features specific to their industry or niche.
Dharma Merchant Services is a conventional merchant services company that focuses on dealing with small companies and offers interchange-plus rates. For low-risk businesses processing more than $10,000 per month, Dharma Merchant Services provides options for taking online and offline payments. Free Terminal in the Cloud, online reporting, mobile processing, online payment linkages, customer database, credit card storage, and next-day financing are among the additional advantages.
Is Dharma Merchant Services Good For You?
Dharma Merchant Services is known for being trustworthy and open, which is refreshing in the payment processing market, which can be opaque and difficult to manage. The firm focuses on working with small enterprises and charity groups. Dharma, in my experience, has among the lowest interchange-plus rates. Dharma Merchant Services is particularly useful for:
- Restaurants and quick-service food venues; may benefit from Dharma Merchant Services’ inexpensive credit card processing rates and 24-hour customer assistance, which comes in handy on weekends. Dharma also integrates with a variety of popular hospitality applications, making it an excellent credit card processor for restaurants.
- In-person retail and restaurant payments: Features of Dharma Merchant Services incredibly low interchange-plus pricing, which is especially beneficial for in-person retail and restaurant payments.
- B2B payments: Dharma Merchant Services offers level 2/3 interchange savings for B2B sales via a connection with MX Merchant. There are bulk savings available, as well as priority 24-hour financing.
- Established NGOs: It provides processing savings to established charities and works with credit card issuers to verify your company is legally registered to get the lowest prices. However, it only works with companies that handle over $10,000 each month.
When Dharma Merchant Services Isn’t Right For You
A different merchant account provider may be a better option for certain firms. Merchants that don’t handle a lot of money each month, as well as those who fall into the high-risk group, should go elsewhere.
- Dharma Merchant Services has a longer and more demanding application and approval procedure for processing less than $10,000 per month. Merchants who conduct less than $10,000 in monthly transactions are unlikely to get accepted. Smaller businesses could make use of these free merchant accounts or payment software designed for smaller transactions.
- Many high-risk merchants will be disqualified as a result of Dharma Merchant Services’ verification procedure. If that’s the case, you may want to check for a high-risk merchant account.
Dharma Merchant Services’ costs have changed somewhat, and this update reflects those adjustments. Dharma’s application procedure and contracts were also scrutinized. This revised assessment includes current price information as well as notable elements that contribute to its restaurant, retail, B2B, and charitable offerings.
Overview of Dharma Merchant Services
Most merchant service providers have a more stringent application screening procedure than Dharma Merchant Services. As a result, it’s not recommended for high-risk enterprises. After Dharma gets all of the relevant materials, it takes two to three business days to set up a new merchant account.
Determining Factors for Dharma Merchant Services
- Interchange plus 0.1 percent + 8 cents to 0.3 percent + 11 cents processing cost
- The monthly price ranges from $20 to $25.
- Month-to-month contract duration
- Time to make a deposit: the next business day
- Two to three business days for the application and approval procedure.
- Card present, card not present, online, ACH, invoice, and recurring payments are all examples of payment methods.
- Fee for cancellation or early termination: $49
- The chargeback cost is $25.
- Sales of above $100k per month qualify for a volume discount.
Dharma Merchant Services Alternatives & Fees Comparison
Are you looking for the best deals? The payment processing rates you pay will depend on the size, kind, and average order value of your company.
Pricing for Dharma Merchant Services
To be eligible for the high-volume reduced rates, retailers must handle over $100,000 in credit/debit card sales per month and have over 5,000 transactions per month; restaurants must have an average ticket of $25 or less per month.
You can find a fees calculator on Dharma’s website to help you estimate and compare interchange vs flat fees based on your business needs. (Source: Dharma Merchant Services)
With the MX Merchant Gateway for Payments, all Dharma Merchant Accounts include the use of its Terminal in the Cloud, mobile processing, credit card storage, address verification service, and batch processing capabilities.
Fees Not Included
While the majority of MX Merchant services are free, certain tools have a fee:
- $10 per month invoicing and recurring billing
- $25 per month, 40 cents each transaction for integrated ACH (check) processing
- Processing for B2B (level 2 and level 3): $20 per month for lower exchange rates.
- $49 per month for online ordering
- Account updater: $25 per month to keep the expiry dates of cards on file up to date.
- $25 per month for inventory management
MX Merchant also doesn’t enable shopping cart connections and can only export data to QuickBooks in a rudimentary format. Dharma suggests Authorize.net and NMI as alternative Gateway for Payments, which will let you utilize some of the services indicated above for free but will cost you $10 per month and 5 cents for every transaction.
Other Charges
- $1.50 for each request by the customer’s bank to contact them via phone to verify the charge.
- Merchants that use wireless terminals such as the PAX s90 must pay a $20 charge.
- The chargeback cost is $25. for every disputed transaction
- Retrieval fee: $5 for each subsequent sales information request from your customer’s bank.
- If you don’t complete the PCI Compliance Survey within 90 days of joining up with Dharma, you’ll be charged $24.95 per month.
Hardware from Dharma Merchant Services
Dharma supports a wide range of payment terminals, including hardware that allows for direct interaction with MX Merchant features. It also sells a mobile card reader that is compatible with the MX Merchant Express app.
While most of Dharma’s payment terminals are reasonably priced, their 3-in-1 card reader is much more costly than other mobile card readers on the market. Mobile card readers that handle swiped, chipped, and tap payments typically cost between $59 and $109 (Chipper BT) (Helcim).
Dharma may be programmed into any Clover POS hardware that accepts swipe, EMV chip, Chip+PIN, Apple Pay, EBT, or Gift card payments. From $599 to $1,999 (Image courtesy of Dharma Merchant Services.)
Features of Dharma Merchant Services
Apart from providing cheap, discounted rates, Dharma also offers versatile features from mobile payments to Gateway for Payments, making it capable of handling a wide range of payment methods. However, those planning to use Dharma’s Gateway for Payments should carefully consider the Fees Not Included. Note that while access to MX Merchant is free, Fees Not Included for key features such as invoicing and recurring payment tools can quickly drive up your monthly cost. It also does not support shopping cart integration tools, which you can find easily with an alternative merchant services provider like Helcim.
Here are some of Dharma’s most remarkable characteristics:
Contract & Merchant Agreement Terms
After completing all of the relevant papers, being accepted for a Dharma account usually takes two to three business days. Dharma will, however, need to verify your Tax Identification Number (TIN) with the IRS, which might take up to two weeks.
Dharma Merchant Services does not need a long-term or minimum commitment, but if you cancel your account permanently, you will be charged a $49 “closure processing fee.” You may deactivate and reactivate your account without paying this or any other relevant cost to avoid that fee, or if you’re a seasonal company.
If you need a point-of-sale system, search for Clover POS, which is part of the TSYS or First Data (Fiserv) network. You may get a copy of Dharma’s terms & conditions (also known as program manuals) here, depending on which one you chose:
Gateway for Payments
Dharma Merchant Services provides free access to MX Merchant Gateway for Payments so you can process different types of payments online, including mobile card processing. However, not all tools are free to use:
This implies that if your online company accepts a lot of invoiced and ACH payments, you need to think about the whole cost. Dharma also interfaces with NMI and Authorize.net, which demand a monthly fee of $10 and 5 cents per transaction, respectively, and maybe more cost-effective for bigger enterprises. For B2B firms, both provide free recurring billing and level 2 data processing, as well as a lower ACH processing price and free shopping cart integration options that MX Merchant does not.
Using a hosted payment link from MX Merchant, add a “Pay Now” or “Donate” button to your website. (Image courtesy of Dharma Merchant Services.)
App for mobile devices
MX Merchant Express is a free mobile payment software that allows you to take payments while you’re on the road. It has features such as accepting swiped, chip, and contactless transactions, as well as the ability to print digital receipts, take digital signatures, and adjust for gratuities. It also combines data from your MX Merchant account, allowing you to charge consumers using their saved credit card information and see previous transactions.
Compared to other popular mobile payment applications, this one is simple and straightforward to use, with useful features such as digital signature capture and tip entry. However, you won’t be able to see reports, which are currently available in most payment applications like SwipeSimple and Helcim.
MX Merchant Express is available for free download from the Apple App Store and Google Play Store for both iOS and Android smartphones. (Image courtesy of Dharma Merchant Services.)
Terminal in the Cloud
QuickPay is Dharma’s Terminal in the Cloud that comes free with its Gateway for Payments and allows you to accept payments from your MX Merchant dashboard. You can opt between adding card details manually or from the stored credit card information. It also provides an option between keyed-in or swipe payments by connecting a magnetic stripe reader directly to your computer, which means you don’t get charged the higher card-not-present transaction rate.
Dharma’s Terminal in the Cloud tools and interchange plus pricing are not so different from providers like Helcim; however, you need to pay Dharma a monthly fee of $25 per month for virtual transactions while Helcim is free. Meanwhile, Chase Merchant Services is still a better choice if you have a B2B business, mainly for its direct processor nature and additional features.
In the advanced part of the QuickPay app, fill in extra information such as client contact information, invoice number, and sales tax. (Image courtesy of Dharma Merchant Services.)
Invoicing & Recurring Billing
You can manage your invoices and regular payments with the MX Invoicing app. You may include customer memoranda, enable special payment conditions, simply update unpaid and canceled bills, send invoices through email or text, and get alerts for rejects, accepted payments, and chargebacks by creating templates and customizing invoices.
Dharma has a robust collection of invoice management tools that make it easy to produce and handle one-time and recurring invoices. Similar features may be found in rivals like Stripe, which you can use without paying a monthly subscription. The invoicing software from Dharma will set you back an extra $10 every month.
Dharma’s features let you manage recurring bills by allowing you to define payment frequency and a certain number of occurrences, apply taxes, and adjust for discounts. (Image courtesy of Dharma Merchant Services.)
Processing of B2B transactions
Dharma offers a B2B app that automates the application of level 2 and level 3 processing rates to your transactions. The MX B2B app automatically populates any missing information required for level 2 or level 3 processing every time you enter a sale on your Terminal in the Cloud. This helps to make sure that you always get the lowest rate possible for your transactions. However, this is an extra $20 monthly fee on top of your current processing fees, so it’s best to analyze the cost-worthiness of your business before signing up.
Dharma does not enable international sales, which would have been a helpful feature for wholesale B2B merchants who would gain the most from the MX B2B app. When compared to competing companies like Stripe, which is free to use and supports 135 currencies, the monthly charge is likewise pricey.
Credit Card Storage in a Customer Database
With Dharma’s customer data storage option, you may safely save customer information. Dharma allows you to classify your customer list, keep various payment information, preserve historical purchase data, and track the number of visits per client, in addition to recording an infinite amount of names and contact details for each customer. You may also build custom fields to record extra data like client preferences and spending profiles.
Not every merchant service provider offers a free sophisticated customer relationship management capability. Dharma has a distinct edge in this market, providing tremendous value, particularly for enterprises with hardware that complements this capability. Clover POS, for example, offers a customer-facing display that allows you to provide consumers the choice of selecting their preferred payment method depending on their profile.
Dharma makes it simple to charge a card on file by starting a payment from the customer interface. (Image courtesy of Dharma Merchant Services.)
Ease of Use with Dharma Merchant Services
Integrations with POS Systems
What Dharma Merchant Services lacks in built-in POS features, it makes up for in integrations. It works with TSYS and First Data (Fiserv) networks and primarily endorses Clover POS system. However, Dharma also works with other POS systems for retail, restaurant, and niche business types, some of which might require the use of a specific Gateway for Payments like Authorize.net.
The following POS systems are compatible with Dharma:
- Aloha
- Ambur
- Breadcrumb
- Dinerware
- Groupon
- Lavu POS
- Micros
- Silver NCR
- POS Revel (requires the use of the FreedomPay gateway)
- Shopify POS (requires the use of the Authorize.net gateway)
- Shopkeep
- POS Squirrel
- POS Talech (requires the use of the USAePay gateway)
- Vend POS (only available online; needs the Authorize.net gateway)
- Vendini (requires the use of the Authorize.net gateway)
Ecommerce
Aside from its own Gateway for Payments, Dharma also integrates with Authorize.net and NMI to offer customers more online payment tools. With an Authorize.net gateway, you get access to top eCommerce platforms such as BigCommerce and Shopify where you can build your own website. It also supports online ordering with MX Merchant’s e Tab app which works great for restaurants that offer food delivery.
Dharma connects with 4aGoodCause, an online fundraising tool for organizations. It has everything a small charity needs, including a contribution campaign builder, event management, personal or team-based fundraising tools, and extensive customer relationship management capabilities.
Supportive Customer Service
Dharma Merchant Services’ support crew has a reputation for being accessible and willing to go above and beyond. It provides technical help 24 hours a day, seven days a week by phone, live chat, or online ticket submission. Their comprehensive help website includes an easy-to-navigate FAQs area for self-troubleshooting.
Customer feedback reveals that the support crew is competent, patient, and responsive. In the payment processing market, having a great customer service review is a major plus.
Dharma Merchant Services: What Users Have to Say
Despite the fact that there aren’t many customer reviews for Dharma Merchant Services, the ones we did uncover were all good. Merchants like the prompt customer service staff and price clarity.
- Dharma Merchant Services received a 5-star rating on Capterra from just one person. Even if they don’t utilize the site on a regular basis, they like how simple it is to navigate.
- Dharma has a 4.2 out of 5 rating from Trust Pilot, based on over 115 customer reviews.
While Dharma has received mainly positive feedback, some users have noted that it may not be the best match for businesses that transact less than $10,000 per month. Dharma is also exclusively accessible to firms situated in the United States.
Conclusion
Dharma Merchant Services is a conventional merchant account provider that provides high-volume enterprises with low-cost payment processing. Strong features and connections customized to things like tipping, tableside ordering, and more assist restaurants and other food-based enterprises. Discounted B2B payment processing, next-day financing for eligible transactions, and competent support staff are among the other perks. Visit their website to get an estimate of your expenses and to get a quotation from their staff.
Frequently Asked Questions
How much can you make selling merchant services?
There is not an exact amount that can be made by selling merchant services. Your income will fluctuate depending on the market and your business strategy, but a common range for revenue would be anywhere from $0 to over $2,000 on average per month.
