Payments · Interchange-Plus Processors
Dharma Merchant Services Review
Interchange-plus card processing from a US processor in business since 2007
Quick verdict
Dharma Merchant Services is best for Established trades with steady card volume that want the processor's markup shown separately from interchange and will compare a written fee schedule. Current rates, fees and contract terms not confirmed in this update; effective rate varies with card mix; field-payment tools and their costs must be confirmed; small team.
Rates & pricing
Interchange-plus: you pay the card networks' interchange cost plus Dharma's markup on each transaction. Dharma publishes rate pages for retail and small businesses, e-commerce and online sellers, and B2B processing, plus interchange-plus pricing examples. We could not read those pages for this update, so this listing quotes no rates or fees; check Dharma's site for current margins, monthly fees and any closure or chargeback fees, and get them in writing before signing.
Pricing model: interchange plus · Monthly fee: Not listed
Affiliate disclosure: The link to Dharma Merchant Services on this page goes to its own site and is not an affiliate link.
About Dharma Merchant Services
Dharma Merchant Services is a US card processor that prices on an interchange-plus basis: you pay the interchange cost set by the card networks plus Dharma's markup, so the processor's own charge is shown separately. Dharma publishes rate pages for retail and small businesses, e-commerce and online sellers, and B2B processing, along with worked interchange-plus pricing examples.
BBB's San Francisco profile lists a business start date of March 1, 2007, names Jeffrey Marcous as CEO and lists seven employees; a second BBB profile gives a Montclair, New Jersey address. Neither profile shows complaints closed in the last three years.
Interchange-plus pricing can work out cheaper than a single flat percentage for a business with steady card volume when the markup is small, but the effective rate changes with the mix of cards your customers use, and any monthly fee weighs more when volume is low.
The trade-off: we could not read Dharma's website for this update, so its current rates, monthly fees, contract terms and payment tools (mobile app, virtual terminal, invoicing, integrations) are not confirmed here. Ask Dharma for the full fee schedule, contract terms and any closure fee in writing, and confirm it supports the in-person and mobile payments your field work needs.
How it works
Apply with Dharma for a merchant account. On each card payment you pay interchange (the card networks' cost) plus Dharma's markup. Before signing, ask Dharma which payment tools come with the account, such as a virtual terminal, mobile app, invoicing or a payment gateway, what each costs, how fast deposits arrive, and what the contract and closure terms are, and get the full fee schedule in writing.
Pros & cons
What works
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Transparent pricing model
Interchange-plus pricing separates the card networks' cost from Dharma's markup, so you can see what the processor itself charges.
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Published rate pages
Dharma publishes rate pages for retail and small business, e-commerce and B2B processing, plus interchange-plus pricing examples.
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In business since 2007
BBB lists a business start date of March 1, 2007.
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No closed BBB complaints
Both of Dharma's BBB profiles show no complaints closed in the last three years.
What doesn't
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Rates not confirmed here
We could not read Dharma's rate pages for this update, so check current margins and fees on its site before comparing.
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Harder to compare
Your effective rate changes with card mix, so compare real statements rather than one headline rate.
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Field tools to confirm
Confirm mobile, invoicing and virtual-terminal options and their costs before switching.
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Small team
BBB lists seven employees, so ask about support hours and how account issues are handled.
Features & integrations
Key features
Integrations
Frequently asked
Is Dharma cheaper than a flat-rate processor?
It depends on your volume and card mix. Dharma uses interchange-plus pricing, where you pay the card networks' interchange cost plus a markup, while a flat-rate processor such as Square or Stripe charges a published percentage plus a fixed fee per transaction. Interchange-plus can work out cheaper with steady volume, but any monthly fee weighs more at low volume. Get Dharma's current fee schedule and compare it with a recent statement from your current processor.
Does Dharma have a contract or termination fee?
We could not confirm Dharma's current contract terms or any account-closure fee for this update. Ask Dharma for the contract length, any early-termination or closure fee, and every monthly fee in writing before signing.
Can I take payments in the field with Dharma?
Ask Dharma which in-person and mobile payment tools come with the account and what they cost. We could not verify its current mobile app, virtual terminal or invoicing options for this update.
How long has Dharma been in business?
BBB's profile lists a business start date of March 1, 2007, with a San Francisco, California address; a second BBB profile lists a Montclair, New Jersey address.
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