Preferred Merchant Services
Preferred Merchant Services is a registered ISO of Wells Fargo Bank providing credit and debit card payment processing to SMBs across retail, restaurant, QSR, petroleum, B2B, hospitality, and eCommerce verticals. It offers terminal, mobile, POS (Clover), and online processing plus cash advance and gift/loyalty modules to over 25,000 merchants.
- Company typePrivate
- Founded2016
- HeadquartersNew York, United States
- Headcount1–10
- GTM typeB2B
- OfferingServices
What Preferred Merchant Services does
Preferred Merchant Services is a private payment processing company operating as a registered Independent Sales Organization (ISO) of Wells Fargo Bank, N.A. Founded in 2016 and headquartered at 79 Madison Avenue, New York, the company provides credit and debit card processing to small and mid-sized merchants across seven verticals: retail, restaurant, quick-service restaurant, petroleum/gas stations, B2B/large ticket, hospitality, and eCommerce.
The company's core offering is a multi-channel processing platform built around four primary rails — Terminal Processing (including a free VX520 terminal), Mobile Processing (free chip card reader via Bluetooth), POS Processing through a Clover Network / First Data partnership giving access to over 200 Clover Marketplace apps and QuickBooks integration, and Online/Virtual Terminal Processing for web-based and recurring transactions. The underlying infrastructure is PCI-compliant through a ControlScan partnership delivering the PCI 1-2-3 compliance program, and supports all major card networks (Visa, MasterCard, Discover, American Express, JCB, Diners Club). Supporting modules include Gift & Loyalty Cards, merchant Cash Advance via funding partners, Check Processing, Free Statement Analysis, and Online Reporting, with an agent/reseller login portal enabling a distributed sales channel.
Preferred Merchant Services earns revenue primarily through per-transaction processing fees under tiered and interchange-based pricing, with rates advertised from 0.17%. A secondary stream is generated via merchant cash advances, where the company refers or originates funding using existing credit card sales as collateral. The go-to-market is sales-led and inbound-driven: merchants fill out a pricing form or call a toll-free line and are contacted by a relationship manager within 24 hours for underwriting and same-day setup, with next-business-day fund disbursement. Distribution is executed through direct sales, inside sales, and an agent/reseller network. The company markets on price transparency — no setup fee, no cancellation fee, free equipment, a $500 rate-beat guarantee, and a BBB A+ rating — competing against Square and Stripe in the SMB processing market. Cumulative merchant volume is stated at over 25,000, with brand references including Ford, Jaguar, Land Rover, Edible Arrangements, and Hampton Inn. Leadership consists of founder and CEO Aleksey Nugid; the company reports 1–10 employees and has no disclosed funding rounds, revenue figures, or M&A activity.
Preferred Merchant Services firmographics
Firmographics- Name
- Preferred Merchant Services
- Legal name
- Preferred Merchant Services LLC
- Website
- https://preferredmerchantservices.net
- Company type
- Private
- Founded year
- 2016
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- Preferred Merchant Services is a registered ISO of Wells Fargo Bank providing credit and debit card payment processing to SMBs across retail, restaurant, QSR, petroleum, B2B, hospitality, and eCommerce verticals. It offers terminal, mobile, POS (Clover), and online processing plus cash advance and gift/loyalty modules to over 25,000 merchants.
- Ownership category
- akta.pro rank
Preferred Merchant Services industry classification
Industry- Product category
- Merchant Payment Processing
- akta.pro primary industry
- Merchant Acquiring Banks & ISO/MSP Acquirers (FSAMABAB)
- akta.pro secondary industries
- Merchant Payment Gateways (API/Hosted Checkout) (FSAMACAA), Integrated Payment Processors (PSP/Acquirer) (FSAMABAA)
Keywords
Where Preferred Merchant Services is headquartered
LocationHeadquarters
- HQ city
- New York
- HQ country
- United States
- HQ region
- North America
Offices2 records
Markets served
Preferred Merchant Services business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Marketing or Sales, Technology or R&D, Operations, Infrastructure
Revenue model
- Transaction/Processing Fees: Charges merchants a percentage or per-transaction fee for processing credit and debit card payments. Rates start from 0.17% with tiered and interchange pricing models.
- Cash Advance Funding: Provides merchant cash advances using existing credit card sales as collateral, working with merchant funding partners to offer additional funding streams.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Pay-as-you-go | Processing rates starting at 0.17% |
| Transaction based/ take rate | Pay-as-you-go | Tiered & Interchange Pricing |
Go-to-market motion2 records
Distribution channels3 records
Marketing channels4 records
Preferred Merchant Services product offering
Product offeringCore offering
Preferred Merchant Services is a merchant payment processor that enables businesses to accept credit and debit card payments through four channels: physical terminals, mobile devices, Clover POS systems, and online/virtual terminals. The firm is a registered ISO of Wells Fargo Bank, N.A., providing PCI-compliant processing, free equipment, next-day funding, chargeback protection, and supporting services such as cash advances, gift/loyalty programs, and check processing for SMB and mid-market merchants.
Product overview
Preferred Merchant Services offers a unified payment processing platform serving merchants across multiple channels. The core offering comprises four main processing methods: Terminal Processing (hardware-based), Mobile Processing (smartphone-based), POS Processing via the Clover Product Suite, and Online/Virtual Terminal Processing. Supporting modules include Traditional POS Solutions, Tablet-Based POS Solutions, Online Reporting, Gift & Loyalty Cards, Cash Advance, Check Processing, and Free Statement Analysis. The company integrates with QuickBooks for accounting sync and provides Clover Market Place access with over 200 apps. Processing supports all major card networks including Visa, MasterCard, Discover, American Express, JCB, and Diners Club.
Differentiator
Problem solved
Functional benefit
Quantifiable outcome
- Free VX520 Terminal worth $499 with service signup
- +2 more outcomes
Companies that use Preferred Merchant Services
Customer profileNamed customers2 records
Segments7 records
Ideal customer profiles4 records
Preferred Merchant Services technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration1 record
Feature5 records
Preferred Merchant Services partnerships and signals
Strategic signalPartnerships
Two partnerships are on record, tiered supporting and core.
- ControlScansupportingControlScan assists merchants in understanding and meeting PCI DSS compliance requirements through their PCI 1-2-3 compliance program, providing self-assessment questionnaires, policy builders, security awareness training, and scanning services.
- Clover Network, Inc. (First Data)coreClover Product Suite integration offering over 200 apps in Clover Marketplace, with full POS solutions and QuickBooks integration capabilities.
Scale indicators1 record
Recent moves6 records
Expansion highlights5 records
Preferred Merchant Services competitors and assessment
Company assessmentDirect peers
- Square (Block): Square is a direct competitor offering SMB credit card processing, POS hardware, mobile card readers, and software to retail and restaurant merchants — the same core use cases Preferred Merchant Services targets. Both compete on transparent pricing and ease of onboarding.
- Helcim: Helcim is a direct SMB-focused payment processor competing on transparent interchange-plus pricing, no cancellation fees, and bundled POS — a very similar value proposition and target customer to Preferred Merchant Services.
- Stripe: Stripe is a direct competitor for online and omnichannel payment processing, serving SMB and mid-market merchants with API-first acquiring, virtual terminals, and POS integrations (e.g., Stripe Terminal) overlapping Preferred Merchant Services' eCommerce and integrated offerings.
- North (formerly North American Bancard): North is a large US ISO offering merchant processing, POS, and cash advance to SMBs across retail, restaurant, and hospitality — directly comparable in business model, product mix, and agent/reseller channel to Preferred Merchant Services.
- Toast: Toast is a vertically-focused restaurant POS and payment processor, directly competing for the same restaurant merchant accounts Preferred Merchant Services serves with its Clover-based POS and restaurant-specific features like tip reporting and pay-at-table.
- Payment Depot: Payment Depot is a wholesale-rate ISO-style merchant account provider for SMBs, directly comparable to Preferred Merchant Services on pricing model, equipment bundling, and target segments including retail and restaurant.
Broad incumbents
- Fiserv: Fiserv is a broad incumbent in merchant acquiring and account-to-account payments (parent of First Data/Clover), competing across all segments Preferred Merchant Services addresses while also providing the underlying Clover platform Preferred Merchant Services resells.
- Heartland Payment Systems (Global Payments): Heartland is a large established acquirer/ISO-style processor offering full-service payment processing, POS, and payroll to SMB and mid-market merchants across the same verticals Preferred Merchant Services serves, with much greater scale and geographic reach.
Emerging players
- Lightspeed Commerce: Lightspeed provides cloud-based POS and integrated payments for retail and restaurant SMBs, overlapping with Preferred Merchant Services' Clover-based POS offering in target verticals but with stronger proprietary software.
Others
- Clover Network (First Data / Fiserv): Clover is the POS platform partner (and Fiserv subsidiary) that Preferred Merchant Services integrates with and resells. As the OEM enabling their POS offering, Clover is both an enabler and a potential competitor if it expands direct SMB acquiring.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks5 records
Key highlights7 records
Customer concentration
Preferred Merchant Services social profiles
Digital presencePreferred Merchant Services compliance and trust
Trust signalCompliance1 record
Preferred Merchant Services financial estimates
Financial estimateRevenue estimate
Valuation estimate
Preferred Merchant Services leadership team
Management profileNumber of profiles
Profiles1 record
Preferred Merchant Services funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Preferred Merchant Services M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Preferred Merchant Services
What does Preferred Merchant Services do?
Preferred Merchant Services is a merchant payment processor that enables businesses to accept credit and debit card payments through four channels: physical terminals, mobile devices, Clover POS systems, and online/virtual terminals. The firm is a registered ISO of Wells Fargo Bank, N.A., providing PCI-compliant processing, free equipment, next-day funding, chargeback protection, and supporting services such as cash advances, gift/loyalty programs, and check processing for SMB and mid-market merchants.
Is Preferred Merchant Services a public or private company?
Preferred Merchant Services is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Preferred Merchant Services founded?
Preferred Merchant Services was founded in 2016. It employs 1 to 10 people.
Where is Preferred Merchant Services based?
Preferred Merchant Services is headquartered in New York, United States, in the North America region.
How does Preferred Merchant Services make money?
Two revenue lines are on record. Transaction/Processing Fees are the primary driver. The others are cash Advance Funding.
Who are Preferred Merchant Services's main competitors?
Direct peers on record are Square (Block), Helcim, Stripe, North (formerly North American Bancard), Toast and Payment Depot. Broad incumbents are Fiserv and Heartland Payment Systems (Global Payments). Lightspeed Commerce is listed as an emerging player. Clover Network (First Data / Fiserv) is listed as an others.
Does Preferred Merchant Services have an API?
No public API is recorded for Preferred Merchant Services.
What industry is Preferred Merchant Services in?
Preferred Merchant Services's product category is Merchant Payment Processing. Its primary akta.pro industry code is FSAMABAB, Merchant Acquiring Banks & ISO/MSP Acquirers, with a secondary code of FSAMACAA, Merchant Payment Gateways (API/Hosted Checkout).