Fattmerchant Review 2020

If you have decent sales volume, Fattmerchant may be the most cost-effective credit card processing company out there. And as a plus, you may get to keep your current POS system.
Best POS Integration
Fatt Merchant
  • Check
    Lowest rates per swipe
  • Check
    Many POS integrations
  • Check
    Customizable API
  • X
    High monthly fee

Fattmerchant is a cheap credit card processing solution with a strong reputation. We combed through hundreds of user reviews to make sure Fattmerchant wasn’t pulling a fast one with its prices, and almost every single small-business reviewer said they saved money on processing fees using Fattmerchant.

Fattmerchant is a relatively new company, arriving on the scene in 2014. Its number-one selling point has always been its prices, but its digital payment processing platform, point-of-sale integrations, and customizable application programming interface (API) payment portal all add much-needed value to small-business processing needs.

Fattmerchant pricing

Fattmerchant has two pricing systems based on your yearly sales volume.

FeesUp to $500,000 in annual processingOver $500,000 in annual processing
Monthly fee$99$199
Swiped payment feeInterchange + 8¢Interchange + 6¢
Keyed payment feeInterchange + 15¢Interchange + 12¢

Data effective 4/17/20. At publishing time, pricing is current but is subject to change. Offers may not be available in all areas.

Interchange plus pricing
Keep in mind that you’ll be paying interchange fees in addition to the per-payment cut that Fattmerchant takes. Some businesses complain online about not being made aware that Fattmerchant charges interchange fees in addition to their 6¢–15¢ cut they take for each transaction. These complaints are likely due to the fact that Fattmerchant refers to interchange fees as “direct costs” on their website. So if you’re crunching the numbers to decide whether switching over to Fattmerchant will be cost-effective, remember to look up the interchange rates so you can factor those into your total analysis.

Fattmerchant also offers custom pricing for any businesses doing $5 million or more in sales per year. If that’s your business, you’ll have to call to negotiate those rates.

Fattmerchant’s stated rates for businesses below $5 million in yearly sales are highly competitive. They only take 6¢–15¢ per transaction depending on the processing method and your plan. This is the lowest processing rate we’ve been able to find, meaning you’ll be spending less money per transaction than anywhere else out there.

The biggest drawback of Fattmerchant’s pricing model is its expensive monthly fee. Most credit card processing companies don’t charge nearly as hefty a sum as Fattmerchant. Square, for example, charges more per transaction than Fattmerchant but doesn’t have any monthly fees.

Fattmerchant also requires a three-year contract. Luckily, it doesn’t penalize you for canceling before the expiration of the contract. You can cancel any time at no extra cost. Fattmerchant only requires that you give 30 days’ notice before canceling.

Fattmerchant key features

Flat-rate processing

Some processing companies like to tack on hidden fees to nickel-and-dime their clients. After reviewing Fattmerchant’s business practices, we can safely say that it has a good track record of transparent pricing and fees. In fact, it has no hidden fees:

  • No batch fees
  • No cancellation fees
  • No PCI compliance fees
  • No statement fees

What you agree to pay is what you end up paying.

Cloud payment system

Fattmerchant’s cloud payment platform makes it easy to take keyed payments on your computer—the virtual terminal is clean and easy to use. Plus, you can schedule regular payments for customers who have subscribed to your monthly product and send regular invoices to clients.

And to simplify things even more, customer data is stored so you can easily track repeat purchases from customers and allow them to save credit card information with your company.

Terminal payment acceptance

Fattmerchant offers Dejavoo terminals. You’ll have to buy this terminal outright, but once you’ve made the purchase, you own the terminal, meaning you’ll get to keep it if you ever change processors. Comparatively, many companies charge a rental fee for their terminals and then request them back if you ever switch processors.

However, there’s no terminal pricing information on Fattmerchant’s website, so we can’t make a judgment call as to whether the terminal is a good deal. But Fattmerchant also offers mobile payment terminals that you can attach to your phone.

Customizable online API

What is an API?
API stands for application programming interface. APIs are what programmers use to connect apps to websites. Payment processing APIs allow your programmer to connect a payment processor to your website. Using an API to add a payment processor to your website will require programming experience.

Do you need an online terminal for your website? Fattmerchant has an API that you can integrate into your website with a custom flow so your payment experience is tailored to your customers.

The API can be used for mobile apps, websites, and software and hardware solutions, allowing you the freedom to add payment processing functionality wherever you need it. The API also comes with customer management, inventory tracking, invoicing, and recurring billing features.

Analytics

Fattmerchant’s Omni software serves as both a way to accept keyed-in payments and a way to run analytic reports based on your transaction data. These reports can help you see the strengths and weaknesses of your sales process, guiding you toward data-supported solutions.

Point-of-sale integration

Fattmerchant payment processing integrates with 90% of third-party point-of-sale systems, including some of the most popular systems in the industry:

  • Aloha
  • Micros
  • Revel
  • Vend
  • ShopKeep

Point-of-sale systems are useful because they can provide inventory management, cash drawers, accounting integration, and customer management features.

Is Fattmerchant right for me?

Fattmerchant is a great solution for any business owner who wants to save money on processing fees and has a solid sales volume every month. Luckily, those savings come bundled with a high-quality offering. Fattmerchant’s payment processing tools are smartly designed, easy to use, and tailored to the needs of the modern business.

Why Fattmerchant may not be right for you

Fattmerchant is not good for businesses that only need to process a credit card once in a while. You have to pay the expensive monthly fee whether or not you process a single payment in a given month. So if your processing needs are more sporadic, you may want to stick with a pay-as-you-go solution like Square.

Additionally, Fattmerchant may not be good for businesses looking for a one-stop-shop solution. Fattmerchant is a payment processing solution that offers point-of-sale integrations, but not many point-of-sale features. This means you’ll end up paying for a point-of-sale system and a payment processor if you need those additional features.

Square, on the other hand, is both a payment processor and a point-of-sale system that gives you additional features for a flat per-transaction rate. It may be a better option for businesses looking for a more all-in-one solution.

The takeaway

Fattmerchant is a great credit card processor for businesses that want to save money on processing fees. You’ll be able to take payments online, over the phone, on the go, and in person using Fattmerchant’s terminals and payment platform.

But Fattmerchant’s expensive monthly fee means your business will have to be doing a reasonable amount of processing volume every month to save money. So if your business is already doing a lot of processing every month, there’s no cheaper processing solution than Fattmerchant.

If Fattmerchant doesn’t quite fit your bill of wanted features and functionalities, be sure to check out our other top payment processing recommendations.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Andrew Mosteller
Written by
Andrew Mosteller
For four years, Andrew has been writing copy to help business owners expand, manage, and advertise their unique brands. His upbringing in an entrepreneurial family nurtured a passion for small business at a young age. Andrew’s father, an equity fund manager, taught him the ins and outs of investment financing and owning and operating a successful business. Now he brings his expertise and experience to entrepreneurs as a regular contributor on Business.org.
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