Cynergy Data Overall Rating
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Cynergy Data Company Overview
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Cynergy Data (cynergydata.com) was established in 1995 and is one of the largest credit card processors in the United States. Though Cynergy Data is a credit card processor, the company does not directly market its services to business owners. Instead, Cynergy Data partners with sales organizations (ISOs) that package and resell Cynergy Data credit card processing with their own value added services. In some cases, ISOs market and sell credit card processing under Cynergy Data’s name even though Cynergy Data is not actually involved in the sales process.
Based in Long Island City, NY, Cynergy Data has seen its share of booms and busts. To start, the company has grown and established offices in New York City, Boston, Chicago and Atlanta, and gained over 150 employees. From 1997 – 2005, Cynergy Data was picked several times as one of the fastest growing companies in the United States and in 2007 the processor acquired Abanco International. Not long after, things took a downturn for Cynergy Data and in 2009 the company filed for Chapter 11 bankruptcy protection. Cynergy Data was rescued from financial collapse by the Comvest Group, a private investment firm, and acquired for $81 million. The Comvest Group has since brought Cynergy Data to financial stability and invested millions of dollars into growing the company.
Cynergy Data Sales Strategy & Tactics | C
Cynergy Data follows the same marketing strategy that most direct processors utilize. The processor focuses on marketing its services to ISOs and electronic payment developers, and not directly to business owners. Cynergy Data simply provides backend credit card processing services and tools to help ISOs grow and manage their merchant customers. This can cause confusion with merchants because the merchant account contract is with Cynergy Data, even though the ISO can set customized terms, rates, and fees.
Cynergy Data Costs, Fees & Contract Terms | C
Since Cynergy Data does not supply merchant accounts directly to business owners, it is up to the ISOs to sell the merchant accounts at mark up from Cynergy Data’s wholesale cost and resell it. Therefore, rates and fees will vary by ISO and by merchant. Additionally, the ISOs have the ability to set contract terms such as service length agreement and early cancellation fees to their own specification. Merchants are advised to thoroughly research any company that provides Cynergy Data merchant accounts before signing up for credit card processing services.
Cynergy Data Complaints, Service & Dispute Resolution | C
In cases where ISOs do not wish to supply customer support after selling the merchant account, Cynergy Data can provide it as an added service to the ISO. Cynergy Data, itself, has relatively few complaints considering how large the processor is and how long it has been in business. Although online researchers may find claims that Cynergy Data is a scam and operates under several aliases, this is actually not the case. The “aliases” that a few merchants have accused the processor of using are actually the ISOs that resell Cynergy Data credit card processing. With this in mind, it’s likely that many complaints against Cynergy Data should actually be directed at the ISO that sold the merchant account. There are, however, a few complaints directly targeting at Cynergy Data’s customer support line.
Cynergy Data Better Business Bureau Report | F
There are several BBB profiles for Cynergy Data because of ISOs that market credit card processing services under the processor’s name. The disconcerting issue is that Cynergy Data’s actual BBB profile has an “F” rating at the time of this review and is not accredited. This reviewer typically does not hold BBB ratings in high regard because they can be easily manipulated to gain high scores. However, an “F” does raise concern because it indicates a lack of well functioning dispute resolution process. According to the BBB, the majority of complaints filed are due to service issues, and billing and collection issues. Of 58 total complaints, seven have been ignored by Cynergy Data, while ten did not reach a satisfactory result for the merchant filing the complaint. This equals about 30% of the BBB complaints not reaching a positive resolution and is likely the reason that Cynergy Data has an “F” rating. You can see the profile here.
Bottom Line
Given Cynergy Data’s size and time in business, it’s likely that the majority of its merchant customers are satisfied with the processors services. However since most merchants are obtaining Cynergy Data merchant accounts from ISOs, many of them never actually deal with the processor directly. Instead, the ISOs generally service their merchant customers while Cynergy Data provides backend credit card processing. The fact that Cynergy Data has an “F” rating with the Better Business Bureau does hurt the company’s creditability, so merchants would be wise to be cautious and do their homework before signing any agreements.
Leave your review of Cynergy Data in the comment section below.
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16 comments
Amanda says:
February 7, 2012 at 8:46 am (UTC -8 )
MY EXPERIENCE WITH CYNERGY DATA HAS BEEN HORRIBLE!! Do NOT do business with this company. A complete nightmare from the beginning and I’m still waiting on a refund from them after 4 months. I will make a complaint with BBB as well.
-small business owner
Mike says:
February 3, 2012 at 8:45 am (UTC -8 )
I cancelled my account before it was even fully set up. It was never activated, never used. It was literally cancelled less than 24 hours after my initial contact with them. Imagine my surprise when they debit my checking account for “merchant fees” in the amount of $152.83. FOR NOTHING. One woman I spoke with said that she sent an email to the “sales department” to inquire on a refund, but she said that it most likely wont go through. If they try to debit my account for cancellation fees, I will go to the state AG. This is BS. The account was never even operational!
Lee Gross says:
February 2, 2012 at 7:16 am (UTC -8 )
I have never had a more unprofessional experience than my interactions with Cynergy Data. Despite having had an active merchant account with them for over 1 year, they put a hold on my account and demanded information that was sent to them again and again. The denied ever receiving it. When asked to speak with a suprevisor, there was nobody to speak to. Horrible experience. I have terminated my account with them.
Chris says:
February 1, 2012 at 12:34 pm (UTC -8 )
also getting JERKED AROUND by CYNERGY DATA.
first concern: What can I do to SAVE MY CREDIT? Cynergy has sent their collection agency after me and the threats have only begun.
second concern: Do I pay them off? I mean do I practically have a choice in this matter? It’s not much worth hiring a lawyer that would eat up the same amount of money in under 2 hours. district attorney? Tom Martino? class action? IS IT WORTH FIGHTING?
Third thing: I closed my accounts. From what I understand from their user agreement, they can keep certain parts of the account active for quite a while after a person terminates with them…. Probably so they can continue to collect on all those fees they keep unraveling. So I thought, what’s to stop them from trying to dip into my account for another $600, un-announced, some 4 or 5 months down the road?
nicole pratt says:
October 31, 2011 at 2:43 pm (UTC -8 )
This company is HORRIBLE! It doesn’t take much to open an account…but try
to get out of it…what a nightmare. I was in the process of sending their certified letter,
and getting the credit card machine back…all the while, communicating w/the idiots
at Cynergy…and they send me a collection agency. I would not recommend them to anyone.
B N Shannon says:
October 9, 2011 at 12:12 pm (UTC -8 )
I had recently complained about a situation that got me involved with a Merchant Account that I did not set up myself.
I want to clarify that American Express had indicated that Cynergy Data and Charge.com were involved in the process.
However, in speaking with the risk department of Cynergy Data, they told me that 3 transactions had been made against the Merchant Account but they found them to be suspicious so they put them on hold.
I want to thank them for their direction. They ended up cancelling the Merchant Account and advised me to check my credit reports to determine if their was anyone fraudulently using my credit information. In addition, American Express also cancelled the account. I also noticed another Credit Card processor who inquired to my Experian Account at the same time. I am not going to mention their name unless as I just notified them about the same problem so if they respond possibly about my inquiry, as far as I’m concerned the issure is resolved.
Thank you.
B N Shannon
Erin says:
July 7, 2011 at 5:43 pm (UTC -8 )
Thanks Tena, I have done that, whew! I lucked out because I saw these posts as soon as I signed up, so far they have only taken the 29.99 fee, dont know how soon they will attempt to deduct anymore fees, but I have closed that account, as well as the debit card I used, so they wont get anything…LOL’ing at them right now…haha!
Rae says:
July 6, 2011 at 10:46 am (UTC -8 )
I absolutely would NOT recommend Cynergy Data/Charge.com/Pipeline My initial account was set up through Charge.com with someone named Eddie, who is a smooth talker & apparent “sheister” . He lied to me about fees involved. He told me all I would be paying was $9.99/month to use their service along with the % fee of each transaction & thena flat fee per transaction. (which he wouldn’t disclose to me after I signed up) Stupid me! he told me I was getting a “steak for the price of a cheeseburger” and “don’t worry about the fees” “we are like the Walmart of credit card processing”… Well now since I signed up in May & used the servic I have had “statement fees” & “gateway fees” & “non-use fees” with Cynergy Data that are all being deducted from my checking account! I cancelled my account last month after they withdrew more fees from my checking, but apparently cancellation doesn’t mean anything to them! I have had to file a claim with my bank to stop payment & to put “merchant services’ on the DO NOT PAY list. I spoke to someone named “Julianna” & asked to speak to a supervisor & she kept stalling, but did finally put me on hold HOWEVER…no one ever picked up the phone & on the timer on my phone display I was waiting 21 minutes!
Suzy Hermes says:
October 20, 2011 at 7:35 am (UTC -8 )
I Too have been scamed by Cynergy Data!! They promised lower fees etc and I explained that we took a private label card also. They said “no problem because we are going to use your same machine”. Well after a month & no call from them, I kept calling & calling & Dennis (the person who signed me up & supposed manager) would not return my calls! I finally got ahold of another guy Alex who gave me a number to cynergy data. They “programmed” my machine. Well low & behold, then I
could not run our private label cards!!! Every time you call Cynergy, they are RUDE &
will not help you. Said that we were signed up by Imerperial merchant services so we
have to call them…you call them & they say you have to call Cynergy!! Then you start
getting charged all the fees….I was even charged fees before the machine had been
programed!!! BEWARE OF THIS COMPANY!!!!!!
Erin Soul says:
June 29, 2011 at 8:34 am (UTC -8 )
I too have been scammed…BIG TIME! I applied on June 24th 2011, and called to cancel on June 29th, they claim they will deduct $495 from my account because its due to a 3 year contarct being broken…what? Anyway, I’m trying to figure out how to report them, stop this payments and get the heck away from them! I also signed up through charge.com and am so SORRY I did!
Tena Gallagher says:
June 29, 2011 at 10:17 am (UTC -8 )
Erin… I suggest you call your bank and have them block any further payments from the company. Explain the situation to them. Also, I have reported them to the Better Business Bureau AND filed a report with the Attorney General of New York, Florida and Georgia because they have various addresses on their correspondence. Good luck to you.
ETF? Since when? says:
September 6, 2011 at 10:35 pm (UTC -8 )
They are trying to charge me $495 “early termination fee” as well, even though I’ve had an account for years. Was never told I was going to be charged to cancel. I gave them my photo ID and everything, now a month later I notice a $495 charge.
I requested a refund. They said they’d get back to me, I’m not sure though if this is going to go anywhere though.
Tena Gallagher says:
June 27, 2011 at 6:09 pm (UTC -8 )
This company runs a scam on fees. In December 2009 they started charging a $185 annual fee for “PCI Compliance.” They stated it was an annual fee which was charged to my account December of 2009 and December of 2010. Now, June 24 I received a charge to my account for $185 for PCI Compliance fee. When I called them… they said they decided to change the date they charge the fee… from December to June? Arbitrarily and WITHOUT NOTICE! This fee, even if it is a valid fee, was supposed to be an annual fee. Since I paid it in December 2009 and December 2010… WHY ARE THEY CHARGING ME IN JUNE? I’ve been dealing with this company since 2004 and when I first started had no problem… then about two years in they started throwing in arbitrary fees and escalated my monthly charge. When you complain about it… they tell you that there are no refunds and you can’t get your money back no matter what. I have canceled my account with them and would NEVER recommend this company to any of my business friends. They are shady at best, scam artists at worst.
Bill Johnson says:
July 3, 2011 at 5:17 am (UTC -8 )
Cynergy Data is totally intertwined at the Director and Officer level with Pipeline Data. Last year they took over handling Payment Card Industry Data Security Standard (PCI DSS) compliance for the Pipeline Data/Paynet Systems merchant account I have had since October, 2006 On December 23, 2010 my account was automatically debited $185 for their yearly PCI DSS compliance fee which should have covered me until December 22, 2011. Without any notification my account was automatically debited again for $185 on June 24, 2011 for a yearly PCI DSS compliance fee that would cover me until June 23, 2012. When I contacted customer support to inquire about the 6-month, double-booking overlap of fees for the period of June 24, 2011 through December 22, 2011 … I was told that they had simply re-synched all of their accounts to a June billing cycle … and sorry, that was just the way it was … and no credit/refund was due to me. Messages left with customer support management have been ignored.
I researched that complaints should be filed with the U.S. Department of Justice Financial Fraud Enforcement Task Force through the Internet Crime Complaint Center (IC3) that was established by the FBI, the National White Collar Crime Center (NW3C) and the Bureau of Justice Assistance (BJA). The link to their web site and online complaint form is at http://www.ic3.gov/default.aspx
Tena Gallagher says:
July 5, 2011 at 2:58 pm (UTC -8 )
Bill… thank you for this information. I have already filled with the Attorney Generals of Florida, New York and Georgia as well as filed a complaint with the Better Business Bureau. I will follow up with the information you provided. I’ve also filed a report with the fraud department of my bank who may reverse the charge but will not accept any further charges from this company to my account.
This company is unscrupulous. DO NOT DO BUSINESS WITH THEM!
Lorinda Ensor says:
June 12, 2011 at 10:28 pm (UTC -8 )
This is a terrific article. Thank you so much for bothering to detail all this out for all of us. It truly is a great guide!