A Detailed Review of PayTrace: Is It Suitable for Small Businesses?

A Detailed Review of PayTrace: Is It Suitable for Small Businesses?

The COVID pandemic has greatly accelerated the growth of the digital payments industry. As millions of people were forced to stay home, many consumers turned to online shopping to avoid catching the virus. 

As a result, e-commerce sales spiked to $794.50 billion. According to Insider Intelligence, this figure comprised a record-breaking 14.4% of total retail volumes in the US in 2020.


There have also been major changes in the payment methods being used by consumers and businesses. While credit and debit cards are still popular in retail stores, mobile wallets and mobile payments are seeing increased use. 

In this article, we’ll review the payment gateway provider PayTrace, and discuss whether it can be useful for small businesses.

Let’s get started.

What is a Payment Gateway?

A payment gateway is a customer-facing interface that collects payment data for card transactions. In a retail store, a point of sale (or POS) terminal serves this function.

In an e-commerce store, a payment gateway is the virtual checkout page on which the customer enters their payment information. A payment gateway differs from a payment processor, which actually collects the payment on the merchant’s behalf.

Introduction to PayTrace

PayTrace is a Spokane, Washington-headquartered payment gateway provider. As explained earlier, a payment gateway enables a small business to accept credit card payments with or without a physical card. Online businesses can receive payments via a shopping cart and secure hosted checkout page.

PayTrace is configured to accept Mastercard, Visa, Discover, American Express, Diner’s Club, and JCB card payments. This payment gateway also processes debit cards to round out its card payment solutions.

As a business-to-business (or B2B) transaction specialist, PayTrace can process Level II and Level III credit card transactions. So, merchants who process many such transactions will pay reduced interchange fees. 

With the proper equipment, it’s possible to receive Level II and Level III data automatically. Through interchange optimization, a business that provides all required processing data will receive the least expensive interchange rate.

How does PayTrace work? 

To enable easy, secure information retrieval, PayTrace stores customer profiles in its PCI-compliant database. Seamless mobile integration enables field-based businesses to easily execute mobile payments.

The PayTrace payment gateway is the company’s main product. PayTrace does not offer merchant accounts or other merchant services. In addition, the company does not market payment processing equipment such as terminals or card readers.  

Note that you must obtain a merchant account before using PayTrace’s payment gateway. From a marketing standpoint, it makes sense that PayTrace offers its gateway through its merchant account provider partners.

Some merchant account providers may have less-than-satisfactory contract terms. So, read the fine print before making your choice.

Key Features and Benefits of PayTrace

PayTrace offers numerous features that help merchants with credit card processing. This payment gateway also includes the infrastructure to support several post-transaction functions. Certain features are only available under specific pricing plans.

Virtual terminal: The PayTrace payment gateway incorporates a virtual terminal. This software enables computer-based transactions via manual data entry. The addition of a card reader makes card-present transactions an easy task.  

Hosted payments page: PayTrace offers a secure hosted payments page that enables fast account setup and immediate use. The PayTrace server hosts the payments page, which permits the acceptance of all payment methods.  

Shopping cart integration: With the rapid rise of e-commerce, integration with online shopping carts is a necessity. The PayTrace gateway is configured to support many popular online shopping carts.

Mobile payments: PayTrace enables you to use your iOS or Android smartphone to process card payments when you’re on the move. The PayTrace GO app supports both platforms, and a card reader enables you to accept cards easily.

Recurring payments: This optional feature enables easy subscription or membership billing functions. Configure payments to run on a daily, weekly, monthly, quarterly, or annual basis.

ACH/eCheck processing: PayTrace offers optional ACH/eCheck payment solutions. ACH payments and eChecks are processed through the Automated Clearing House (or ACH) network rather than a credit card processing system.

Transaction security: PayTrace has achieved Level I PCI compliance, and the company uses tokenization to ensure its transaction security. In addition, PayTrace utilizes Secure Socket Layer (or SSL) encryption to keep transmitted data secure.

A tokenized storage vault further protects customer data. A multifactor authentication process limits system access to authorized users. Optional fraud management services are also available.

Reporting functions: PayTrace offers numerous back-office real-time reporting and management functions. You can review transaction details, download spreadsheets, and print custom reports. PayTrace also offers electronic invoicing capabilities.

API integration: Developers can utilize PayTrace’s API tools to configure their e-commerce platforms for online payments. The company offers several API integration guidelines along with sample code. 

PayTrace’s Contracts and Pricing 

PayTrace’s month-to-month billing will likely suit business owners who want reliable processing solutions without long-term contracts. In addition, you will not incur an early termination fee for closing your PayTrace customer account early.

However, remember that PayTrace’s services are often part of a merchant account provider’s package. This provider might require a long-term contract, especially for small business customers.

Pro Tip: Find a merchant services provider that offers a month-to-month billing model. Payment Depot is a budget-friendly payment processor with services that integrate seamlessly with the PayTrace gateway. Payment Depot offers monthly billing along with wholesale processing rates.

The PayTrace Pricing Model

PayTrace offers four separate pricing plans targeted to merchants and financial institutions. However, their website does not display pricing information.

This means your processing costs will likely vary depending on your choice of merchant account provider. As such, you should evaluate your sales volume and associated processing fees before making your decision.

All three merchant plans provide access to the PayTrace mobile payments app. Although PayTrace will rent you an encrypted card reader, buying the reader outright will save you money.

  • Basic plan: This plan is designed for small e-commerce businesses.
  • Pro plan: This plan is geared toward bigger online businesses and B2B merchants.
  • Pro with EMV plan: Similar to the pro plan, this plan includes PayTrace’s new EMV 2.0 service.
  • Cash advance plan: This plan is tailored to vetted financial institutions.
Paytrace Plan Review Payment Processing

PayTrace Sustomer Support 

PayTrace provides mostly phone-based customer support Monday through Friday, from 5 am to 7 pm. During business hours, PayTrace customers can speak with a knowledgeable customer support/tech support associate who can help them.

PayTrace supplements its phone services with 24/7 email support. The company promises to respond to customer requests within 24 hours.

PayTrace also maintains a separate website for its online knowledge base. This comprehensive resource contains product documentation, training videos, and links to enroll in training webinars.

Limitations and Drawbacks of PayTrace

Know that PayTrace is constantly seeking new resellers. Some of these companies may not be especially knowledgeable about PayTrace’s services. 

In addition, many resellers work with independent sales organizations (or ISOs) that market the reseller’s merchant accounts. These agents may vary in their product knowledge and sales ethics.

Businesses Best Suited for PayTrace

Several types of businesses can benefit from using the PayTrace payment gateway. E-commerce retailers are a natural fit. Mobile businesses, such as mobile detailers and trade show vendors, also process transactions via a gateway. Companies that handle mail and phone orders must also utilize a payment gateway.

Retailers who process point-of-sale transactions, including EMV chip card sales, also require a payment gateway. Finally, PayTrace is ideal for business-to-business (or B2B) transactions such as sales of office supplies.

PayTrace Customer Reviews 

Although PayTrace has been in business for 15+ years, the company does not have a Better Business Bureau (or BBB) profile. That means there are no BBB-related complaints registered against the business. 

Likewise, there are no Ripoff Report complaints or reviews on Capterra or G2. Little negative feedback indicates that PayTrace’s customer service department adequately resolves issues before they escalate.

In addition, PayTrace’s low complaint volume is likely due to the fact that its gateway is usually packaged with a merchant account. Dissatisfied customers may have filed their complaints against that business. Finally, note that PayTrace does not have any positive customer reviews or testimonials on the company website or on review sites. 

Choosing Your Small Business Payment Gateway

Costco Of Credit Card Processing

If you are searching for a reliable (and reputable) payment gateway, PayTrace may be a good option. This software package includes a well-rounded menu of payment processing support components. 

PayTrace is usually bundled with a merchant account provider’s services package. However, you can also sign up for PayTrace separately.

Its integration with Payment Depot provides merchants with a solid payment processing solution that small businesses can easily afford. This is because Payment Depot offers desirable monthly billing and wholesale transaction processing rates. 

The lack of added fees, markups, and cancellation penalties makes this payment processor an attractive choice. Contact Payment Depot today to learn how you can save hundreds of dollars in credit card processing fees every month.

FAQs about PayTrace

Q: What is PayTrace?

PayTrace is a payment gateway provider that allows businesses to accept various card payments. The platform is designed to cater to different business needs like B2B transactions, eCommerce retail, mail and phone orders, and POS transactions in physical stores.

Q: How does PayTrace differ from a payment processor?

A payment gateway like PayTrace is a customer interface that collects payment data for transactions. It differs from a payment processor, which is the entity responsible for actually collecting the payment on the merchant’s behalf.

Q: Which card payments are acceptable on PayTrace?

PayTrace is configured to accept Mastercard, Visa, Discover, American Express, Diner’s Club, and JCB card payments. It also processes debit cards which expand its card payment solutions.

Q: What is the role of PayTrace in B2B transactions?

PayTrace excels in B2B transactions as it can process Level II and Level III credit card transactions. This ability allows merchants to pay reduced interchange fees.

Q: What are some of the features offered by PayTrace?

PayTrace offers features such as a virtual terminal, hosted payments page, shopping cart integration, mobile payments, recurring payments, ACH/eCheck processing, transaction security, reporting functions, and API integration.

Q: How does PayTrace ensure transaction security?

PayTrace ensures transaction security by achieving Level I PCI compliance and using tokenization. The company also utilizes Secure Socket Layer (SSL) encryption to keep data secure and offers optional fraud management services.

Q: Does PayTrace offer customer support?

PayTrace provides phone-based customer support Monday through Friday, supplemented with 24/7 email support, an online knowledge base, and training webinars.

Q: What should small businesses consider before choosing PayTrace? 

Small businesses should evaluate their sales volume, potential processing fees, and the terms and conditions of their merchant account providers before choosing PayTrace.

Q: Does PayTrace have suitable plans for different kinds of businesses?

Yes, PayTrace offers four separate pricing plans aimed at small e-commerce businesses, larger online businesses, B2B merchants, and financial institutions. 

Q: How has PayTrace been rated by its users?

Although the company does not have a plethora of reviews online, the minimal negative feedback indicates that PayTrace’s customer service department is proactive in its approach and resolves issues effectively before they escalate.

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