Our Take
The bottom line:
Payment Depot is a payment processor owned by Stax. Customers pay interchange plus an additional percentage fee on each transaction, but there are no monthly subscription costs. The provider’s pricing and 24/7 support make it a good option for small businesses willing to explore cost-saving options outside of flat-rate processors.
Payment Depot
Payment processing fees
$0 to 1.95%, plus interchange.
Monthly fee
$0.00
Learn more
on Payment Depot's website
Pros & Cons
Pros
- Businesses save when customers use cards with low interchange rates.
- Compatible with several POS hardware providers, including Clover.
- 24/7 support.
Cons
- Hardware pricing is quote-based.
Full Review
Payment Depot lets merchants process credit card payments in person and online. Instead of charging a monthly membership fee, it charges 0.2% to 1.95% on top of interchange rates. Plus, customers can cancel whenever they want without paying early termination fees.
“Payment Depot stands out for its customized interchange-plus rates, but you won’t be able to start accepting transactions immediately. Businesses need to reach out for a quote and go through an in-depth underwriting process.”Hillary Crawford, small-business writer at NerdWallet
To accommodate in-person transactions, Payment Depot sells point-of-sale (POS) hardware from companies like Clover, SwipeSimple and Dejavoo. For online payments, the company integrates with a variety of shopping carts and e-commerce platforms including WooCommerce, BigCommerce and OpenCart. Alternatively, if you don’t use one of those platforms, you can use Authorize.net’s payment gateway to accept online payments.
Other features include a performance analytics dashboard, as shown below, that displays how many new versus returning customers your business has and lets you compare key data points, like net sales and number of transactions completed, across weeks, months and years. You can also use the dashboard as a virtual terminal to manually enter customers’ credit card information if you’re completing a sale over the phone, for example.
Source: YouTube
Payment Depot is best for businesses that:
- Prefer an interchange-plus solution: As opposed to flat-rate pricing that charges the same rate per transaction, regardless of how interchange rates fluctuate, Payment Depot’s interchange-plus model passes along the interchange rate and a consistent percentage on top of it. That means you save when customers use cards that carry low interchange fees. If you expect your business to grow and complete more sales as the years go on, interchange-plus pricing will likely result in lower processing costs than flat-rate pricing.
- Want rates tailored to their business: Payment Depot isn’t the only interchange-plus processor, but it’s one of the few that tailor markups to your business. This may leave some room for negotiation when it comes to how much you pay on top of interchange. Other interchange-plus processors, like Helcim, charge the same margin across business types, unless you qualify for a volume discount.
Deciding factors
Payment processing model | Interchange-plus. |
Payment processing fees | 0.2%-1.95% plus interchange. |
Monthly fee | $0. |
Hardware cost | Sells card readers as well as countertop and mobile POS hardware from Clover, Dejavoo and SwipeSimple, but prices are undisclosed. You have to request a quote. |
Contract length | No long-term contracts or termination fees. |
Customer support | 24/7 phone and email support. |
Where Payment Depot stands out
Interchange-plus pricing
Many competitors, like Square or Stripe, charge a flat fee for each transaction. While this pricing model is easy to understand, it doesn’t pass interchange savings to the business. With interchange-plus pricing, markups are consistent, but interchange varies from transaction to transaction. That means businesses save when customers use cards that have lower interchange fees.
Compatible with different hardware
Payment Depot sells a variety of credit card terminals, which allow you to accept payments in person, from brands that include Clover, Dejavoo and SwipeSimple. You can choose from mobile-only card readers, standard terminals and full POS terminals that resemble traditional cash registers. Depending on the model and POS system, features could also include inventory management, discounts, reporting and employee management. If you already have a terminal, Payment Depot may be able to reprogram it.
Around-the-clock customer support
If your business can’t quickly solve payment processing issues, it risks losing out on sales. Payment Depot has 24/7 phone and email support to help prevent this scenario. Reading customer reviews can help you gather more information on individual customer support experiences.
Where Payment Depot falls short
Hardware pricing isn’t transparent
Payment Depot sells POS hardware, like card readers and terminals, from various providers, but it requires businesses to reach out for a quote. This makes it difficult to factor in the cost of hardware and compare it to other payment processors. Additionally, its website doesn’t have much information on additional features that typically come with payment processing services, like invoicing or reporting.
Alternatives to Payment Depot
Square
Why we like it: Unlike Payment Depot, which passes variable interchange rates along to the merchant, Square charges a set fee for each transaction. Card terminals are proprietary and include low-cost options. You can get your first magstripe reader for free. Square also offers Tap to Pay on iPhone, which lets merchants accept card payments using only a regular iPhone with the Square POS app. The company’s contract-free rates and intuitive POS system make it popular with small-business owners. Read our full Square review.
- $0 for Square POS, Restaurant, Retail and Appointments Free plans.
- $29 for Square Appointments Plus plan.
- $60 for Square Restaurant Plus plan.
- $69 for Square Appointments Premium plan.
- $89 for Square Retail Plus plan.
- Custom pricing for Square Retail and Square Restaurant Premium plans.
- 2.6% plus 10 cents for in-person transactions.
- 2.9% plus 30 cents for online transactions.
- 3.5% plus 15 cents for manually keyed transactions.
- 3.3% plus 30 cents for invoices.
- $0 for Square magstripe-only card reader ($10 for each additional reader) or if using Tap to Pay for iPhone (iPhone not included).
- $49 and up for Square Reader contactless and chip card reader.
- $149 for Square Stand iPad POS or Square Stand Mount (iPad not included; monthly financing available).
- $299 for Square Terminal mobile card reader with built-in printer (monthly financing available).
- $799 for Square Register two-screen system (monthly financing available).
Payline
Why we like it: Payline offers a variety of shopping cart integrations for e-commerce businesses, but its real standout feature is the fact that it supports businesses in high-risk industries. These industries include CBD, credit mending, vitamins and supplements, and travel. Merchants are paired up with a dedicated support manager, and the first one to two months may be free. Read our full Payline review.
- $10 for in-person sales.
- $20 for online sales.
- Interchange plus 0.4% and 10 cents for in-person transactions.
- Interchange plus 0.75% and 20 cents for online transactions.
Offers mobile card readers, countertop terminals and full POS systems. Cost varies by provider and is quote-based.
Learn more
on Payment Depot's website
Methodology
NerdWallet’s ratings of payment processing providers rewards companies whose products and services are priced well and work in a variety of payment scenarios, among other criteria.
Ratings are based on weighted averages of scores in several categories, including overall cost, hardware and software options, system capabilities, customer service, contract requirements and integrations. Learn more about how we rate payment processing providers.
These ratings are a guide, but fees, hardware, software and contract requirements can vary widely from business to business and provider to provider. We encourage you to shop around and compare several providers.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
