Choosing the right merchant services provider is crucial for e-commerce businesses that aim to process payments securely and efficiently. A reliable merchant account enables businesses to accept credit and debit card payments, expanding their customer base and increasing convenience. When selecting a merchant services provider, it’s vital to consider various factors contributing to their effectiveness and compatibility with your business needs.

East Commerce Solutions and Host Merchant Services are notable among the numerous available options. Host Merchant Services is often preferred for its transparent pricing, exceptional customer support, favorable contract terms, and comprehensive service offerings. While Host Merchant Services enjoys popularity, East Commerce Solutions also provides unique solutions that meet various payment processing requirements.

Understanding the details of what each provider offers is key for businesses aiming to enhance their payment processing systems. In this article, we will compare both to help you make an informed decision and ensure your e-commerce store has the best merchant services to meet your needs.

An Overview of Host Merchant Services

Host Merchant Services (HMS) is a U.S.-based provider specializing in various merchant services, including payment processing and point-of-sale (POS) systems. Established in 2010, Host Merchant Services caters to high-risk and standard businesses, offering no-term commitment contracts and allowing month-to-month service agreements without cancellation penalties.

Host Merchant Services supports various industries, including high-risk sectors such as debt collection, e-cigarettes, real estate, gambling, and standard business sectors like retail, hospitality, and restaurants. Their services are pretty comprehensive, providing solutions that include payment gateway options, virtual terminals, and mobile payment processing. They also offer POS systems tailored to the specific needs of a business, whether it involves handling inventory or simply facilitating transactions. The company prides itself on transparency and customer service, claiming to support 98% of its applicant businesses with free equipment and competitive processing rates.

Host Merchant Services extends its services to e-commerce businesses by offering over 100 payment gateway solutions and tools for online shopping carts, ensuring a robust online presence for merchants aiming to grow their digital sales footprint

Pros and Cons of Host Merchant Services

An Overview of East Commerce Solutions

East Commerce Solutions (ECS), a part of Payroc since its establishment in 1994, is a merchant services provider catering to various business sectors, including retail and restaurants. ECS offers various services, such as credit card processing, POS systems, mobile payment solutions, payroll services, and gift and loyalty card programs. They are known for their dedication to providing personalized customer service and technical support, aiming to meet client needs promptly.

ECS provides tailor-made merchant services and payment processing solutions designed to support the diverse needs of its clients, ranging from small businesses to larger municipal and medical organizations. Specific solutions are provided for each type of client.

ECS highlights include no setup, application, or reprogramming fees. They also provide chargeback and retrieval services, which are essential for handling payment disputes. Training for their hardware and software is available on-site, enabling businesses to implement and use their payment processing systems effectively. However, ECS has received feedback about a lack of transparency in their pricing and fee structures, which might concern potential clients who prefer clear upfront pricing information.

Pros and Cons of East Commerce Solutions

Products and Services Offered by Host Merchant Services

Host Merchant Services offers a wide range of products and services designed to meet the diverse needs of various businesses:

• Merchant Services: Host Merchant Services offers merchant accounts with interchange-plus pricing suitable for online and brick-and-mortar businesses. They provide tailored pricing options for varying transaction volumes and special rates for nonprofit organizations.
• Payment Terminals: Host Merchant Services provides up-to-date payment terminals from well-known brands such as Dejavoo, Pax, Valor PayTech, Ingenico, and Verifone. These terminals can process EMV and NFC payments, including Google Pay and Apple Pay. Businesses processing over $20,000 monthly may qualify for a complimentary EMV terminal.
• Specialized Accounts for High-Risk Merchants: Host Merchant Services partners with Electronic Merchant Systems to cater to certain high-risk sectors and offer specialized pricing and contract conditions. Additionally, HMS facilitates offshore merchant accounts via global acquiring banks.
• Mobile Payment Solutions: Host Merchant Services recommends SwipeSimple and Vital mobile card readers, which are designed for use with mobile devices and associated apps. They also offer advanced portable terminals from PAX, including models A80 and A920.
• POS Systems: Host Merchant Services introduces Bonsai, their proprietary POS software designed primarily for the hospitality industry, alongside POS hardware solutions from Clover and Vital.
• Cash Discount Program: Host Merchant Services provides a “No-Cost Account” program for businesses processing over $5,000 monthly. Businesses with lower volumes may incur a small monthly fee.
• Online Payment Processing: Host Merchant Services Pay, the company’s payment gateway, supports various features, including ACH transactions, check imaging, recurring payments, batch processing, and networking across multiple sites. Host Merchant Services is compatible with many third-party gateways, such as NMI and Authorize.Net.
• Virtual Terminals: The Host Merchant Services Pay gateway includes a virtual terminal for manually processed credit card transactions, suitable for businesses taking orders via mail or phone. This feature is also integrated with all compatible third-party gateways.
• E-commerce Solutions: Host Merchant Services Pay facilitates integration with major e-commerce platforms like Magento, WooCommerce, and BigCommerce.
• Web Services: Host Merchant Services provides a basic website and business email hosting with each merchant account; premium upgrades are available for an additional charge.
• PCI Compliance and Data Breach Protection: With Trustwave, Host Merchant Services offers PCI compliance services and includes $100,000 data breach insurance with its merchant accounts. Opting out is available but discouraged.
• Gift and Loyalty Card Programs: Host Merchant Services designs systems for businesses to offer customized gift and loyalty cards.
• Merchant Funding Solutions: Host Merchant Services provides merchant cash advances up to $500,000, with rapid funding available in as little as 48 hours for advances up to $20,000. Businesses are advised to evaluate all financial options.
• Partnership and Referral Opportunities: Host Merchant Services runs a referral program that allows businesses to introduce clients and serve as resellers for HMS merchant services. Host Merchant Services handles the application and approval processes.

Products and Services Offered by East Commerce Solutions

The ECS website provides limited information about its offerings, but here are the products and services we know about:

• Merchant Accounts: ECS offers merchant accounts tailored for various industries, including retail, business-to-business, medical, fuel, utility, and e-commerce. They handle credit and debit card processing, allowing businesses to accept payments via Visa, MasterCard, Discover, and American Express.
• Credit Card Terminals and POS Systems: ECS supplies a variety of point-of-sale (POS) systems and payment processing devices suitable for retail outlets, restaurants, and other businesses. These systems are designed to be user-friendly and integrate well with existing business operations.
• Mobile Processing: ECS provides mobile processing solutions that enable smartphone payments, offering flexibility and convenience for businesses that need portable payment options.
• E-commerce Solutions: ECS delivers e-commerce services that help businesses engage with the global marketplace through secure and efficient online transaction processing.
• Gift and Loyalty Card Programs: ECS offers customizable programs for gift and loyalty cards to help businesses increase customer engagement and retention by implementing effective incentive strategies.
• Payroll Services: ECS also provides payroll processing services, helping businesses manage employee compensation with accuracy and efficiency.
• Cash Advance Programs: For businesses needing additional working capital, ECS provides cash advance programs to support ongoing operational requirements.
• Remote Deposit Capture (RDC): With RDC, you can deposit checks electronically from your office, bypassing the need to take checks to the bank physically. This service speeds up your access to funds, usually within 1 to 2 days, which is significantly faster than the typical seven-day wait with traditional deposit methods.

Pricing of Host Merchant Services

Host Merchant Services offers payment processing solutions designed for various business types, including those in high-risk industries. Its pricing is clear, with no application or setup fees and no hidden charges. Many businesses might also qualify for free equipment.

Host Merchant Services uses an interchange-plus pricing model, with rates depending on the business type:

• Retail: Interchange plus 0.25% and $0.10 per transaction.
• Restaurant: Interchange plus 0.20% and $0.09 per transaction.
• E-commerce: Interchange plus 0.35% and $0.10 per transaction.

Additional costs apply to its services. Although there is no application or setup fee, users must pay a monthly fee of $14.99 and an annual 1099 reporting fee of $24. Prices also vary based on the chosen payment gateway.

These rates aim to provide cost-effective solutions for diverse transaction environments. Host Merchant Services offers free quotes to help businesses understand potential costs. Businesses can fill out an online form to receive a quote specific to their needs. Host Merchant Services also offers a savings guarantee, promising to give $50 if they cannot help you save on payment processing fees.

Pricing of East Commerce Solutions

ECS does not list its credit card processing fees or subscription costs on its website. To get specific pricing details, you should contact their sales team directly for a customized quote. You can also submit an application with your business details on their website and expect a prompt response from their team.

However, customer feedback indicates that the typical ECS contract may include a 1 to 3-year commitment with Elavon, with an early termination fee of $195, an annual fee of $75, a PCI Compliance fee of $125, and monthly minimum fees up to $35. Additionally, the company provides POS equipment leasing, where a standard Elavon contract includes a non-cancellable 48-month equipment lease, often costing significantly more than the equipment’s value.

Given these terms, it is wise to carefully examine contract details and discuss them directly with ECS to fully understand all fees and commitments before moving forward.

Contract Terms and Early Termination Charges: East Commerce Solutions and Host Merchant Services

Host Merchant Services provides flexible agreements without long-term commitments or early termination charges. This ensures businesses can switch providers without incurring cancellation charges. Host Merchant Services also offers a referral program, which reimburses up to $250 in fees for early termination for clients referred and up to $500 for companies handling more than $50,000 monthly. This program facilitates a smoother switch for businesses moving from other providers.

On the other hand, ECS generally provides contracts of one to three years, frequently in collaboration with Elavon. These contracts often come with an early termination fee of $195, an annual fee of $75, a PCI compliance fee of $125, and monthly minimum fees reaching up to $35. ECS also offers leasing for POS equipment, which includes non-cancellable 48-month leases at prices well above the actual cost of the equipment.

Customer Support of Host Merchant Services

Host Merchant Services offers a comprehensive range of customer service and technical support to ensure its clients have readily available help. Clients can contact the company 24/7 through telephone support for immediate assistance. During business hours, HMS provides a live chat feature for real-time online support, while after hours, support is managed by TSYS tech support or another third-party service linked with the merchant’s account. Host Merchant Services keeps track of all interactions to ensure the quality of service is upheld.

In addition to phone support, Host Merchant Services offers several other support channels. Email support caters to non-urgent inquiries, and an online system manages support tickets to help track issues until they are resolved. There’s also a live chat available during business hours for instant communication, and clients can benefit from a dedicated representative for personalized support. Self-service options include a help center or knowledge base with articles and guides, videos and tutorials for visual learners, and a company blog that covers topics and industry news related to payment processing and merchant accounts. Host Merchant Services also engages with clients via social media platforms like X and Facebook.

Host Merchant Services provides on-site terminal maintenance and repairs up to 150 miles from its Delaware and Florida offices for more targeted support. This service particularly benefits New England and Florida businesses, enhancing customer satisfaction with direct and effective support.

Customer Support of East Commerce Solutions

East Commerce Solutions provides various customer service and technical support options to help its clients efficiently. Clients can access phone support by calling 1-800-527-5395, where specific extensions direct them to various departments, including customer service (Ext. 401), technical support (Ext. 402), payroll services sales & support (Ext. 403), internet & gateway support (Ext. 404), and the WriteTouch POS Division (Ext. 410). Additionally, email support is available at info@eastcommercesolutions.com for all inquiries and assistance.

Clients can also use an online contact form on the company’s website to submit questions or requests anytime. The website features a knowledge base that provides detailed information on services and products, helping clients understand East Commerce Solutions’ offerings. Social media platforms like Facebook and Twitter are used to engage with clients and share updates.

East Commerce Solutions focuses on personalized service, assigning dedicated representatives to meet specific client needs. The company also ensures timely technical assistance by offering on-site support for businesses within its service areas.

Conclusion

Both Host Merchant Services and ECS offer merchant services for various business needs. However, HMS stands out with more flexible contracts, clearer pricing, and higher-quality customer support—key factors affecting a business’s choice.

Host Merchant Services stands out for its transparent pricing structure and no-term commitment contracts, which offer significant flexibility and reduce potential financial burdens. The lack of application, setup, and early termination fees, coupled with a wide range of services tailored to both standard and high-risk businesses, makes HMS appealing for companies seeking clear terms and varied service options. Additionally, Host Merchant Services provides robust customer support, including 24/7 access, various communication channels, and direct support within specific regions, enhancing merchants’ reliability and ease of use.

On the other hand, ECS, while offering a broad suite of services, including customized merchant accounts and mobile processing solutions, has received criticism for less transparent pricing and longer contractual terms that may include early termination fees. Although ECS offers personalized service and on-site support, which could benefit some businesses, the lack of clarity regarding fees and the requirement for long-term commitments could be restrictive and less desirable for businesses looking for flexibility and clear upfront costs.

Considering these aspects, Host Merchant Services is the better option for businesses that value transparency, flexibility, and comprehensive customer support without worrying about long-term contractual commitments and unclear pricing structures.

Frequently Asked Questions