Card Payment Solutions (South Carolina)
Review Updated: 5/15/2013
Card Payment Solutions Overview
This review is for the South Carolina (formerly, Madison, Indiana) based Card Payment Solutions (cardpaymentsolutions.com). If you are looking for the Santa Barbara, California based company, see the CardPayment Solutions (California) review.
Card Payment Solutions (CPS) is a small-to-mid size merchant account provider that began operations in 1999. The company is a sales organization that acts as a reseller for several direct processors including Global Payments, First Data and TSYS. Although CPS is a reseller, it handles the customer service of its accounts directly. Besides providing credit card processing services, the company also supplies electronic check processing services.
CPS is sponsored by the HSBC Bank, National Association, Buffalo, NY as its Acquiring Bank.
Card Payment Solutions Sales Tactics & Marketing Strategy | C
This reviewer found a few uses of deceptive rate advertising on the CPS website. On the “determine rates and fees” pages, the company only quotes low “Qualified” transaction rates and fails to mention the Mid- and Non-Qualified surcharges that, on average, more than 50% of a merchants sales will experience. To learn more about deceptive rate quoting tactics and how merchant account rates are calculated, be sure to check out our free ebook “Fee Sweep.”
CPS also appears to rely heavily on recruiting outside independent resellers to market and sell its merchant services. Generally, this practice results in numerous merchant complaints because providers cannot control the sales and marketing tactics of the resellers. As of this update, CPS is not suffering from the typical complaints associated with the practice which may indicate that it has favorable sales policies that do not allow price gouging. Therefore, the company’s use of resellers will not negatively affect the company’s score unless evidence surfaces to the contrary.
Card Payment Solutions Fees, Costs & Contract Terms | C
Pricing of CPS merchant accounts appears to vary depending on a merchant’s business type, processing volume and the agent setting up the account. An agent of the company stated that CPS has a standard service agreement of 36 months with one year automatically renewing extensions at the end of each term. Merchants who wish to cancel service must notify the company within 60 days of the expiration of the contract. Additionally, merchants may suffer a Liquidated Damages early termination fee for cancelling service while under contract. The agent also stated that these terms are negotiable.
Normally, the use of a Liquidated Damages clause and automatically renewing contract would result in an “F” rating in this section for a provider. However, CPS is not suffering from the type of complaints usually associated with the practice. This may be an indication that CPS rarely enforces the policy and that it usually comes to a mutually agreeable resolution during a dispute. In any case, merchants are encouraged to fully read and understand the terms of the agreement before signing any documents.
If you have suffered a Liquidated Damages early termination penalty with Card Payment Solutions, please let us know in the comment section below.
Card Payment Solutions Complaints & Service | B
Since CPS shares a very similar name with another merchant account provider, it is very difficult to differentiate the complaints filed online. Based on our research, it appears the majority of complaints filed are regarding the California based company and not the Indiana based Card Payment Solutions covered in this review.
Of the complaints against CPS of Indiana there are only a few, most which report high or unexpected monthly fees, unexpected cancellation fees, and difficulty getting problems resolved. It is difficult to tell if the complaints are isolated incidents or signs of larger problems. We will continue to monitor future complaints and update this review accordingly. Again, merchants are cautioned to fully understand the terms of their merchant account agreement before signing.
Card Payment Solutions BBB Report | A (CPO Adjusted)
As of this update, the Better Business Bureau (BBB) is reporting that CPS has been accredited since 2011 and is awarding the company an “A+“ rating. The BBB is showing four complaints filed in the last 36 months mostly regarding product and service problems. Of the four complaints, all but one has been resolved to the merchant’s satisfaction.
Card Payment Solutions of South Carolina seems to be a promising company in that it has very few complaints in comparison to other companies of similar size and time in business. The company can improve its rating by offering month-to-month contracts, no cancellation fees, and removing the deceptive rate advertising from its website.
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