Electronic Payment Systems
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Electronic Payment Systems Overview
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Founded in 1994 by John Dorsey, Electronic Payment Systems (EPS) is a midsize merchant account provider based in Englewood, Colorado (eps-na.com). Along with offering credit card processing services, EPS provides a variety of other business financial services including a self branded ACH payment service called EPS90. This service allows merchants to offer a 90 day payment plan to customers and appears to be the source of many merchant complaints against the company. For the purposes of this review, we will focus only on EPS’s credit card processing services.
Electronic Payment Systems Sales & Marketing Tactics | D
No misleading advertising or marketing materials were found for EPS. However the company does employ both inside agents and independent outside resellers, and evidence was found to suggest the use of misleading sales tactics by both parties. The common tactic found was non-disclosure of important details of the merchant account agreement and this reviewer experienced it directly.
Posing as a potential merchant, I spoke with the “National Sales Manager” and was told that the contract was “month-to-month with no cancellation fee.” However, upon reading the merchant account agreement, it states in section 3.05 that it is actually a one year term that auto-renew for another year unless the merchant cancels within 90 days prior to the expiration. Not only did the sales manager fail to disclose this fact, but he also lied about the actual term.
EPS may argue that without a cancellation fee that their contract is month-to-month, but the merchant account agreement states that it “shall remain in full force and effect relative to all debt purchased under this Agreement.” This vague clause could be interpreted to mean that the future monthly fees and an annual fee ($85) of the agreement are “debt” and that the merchant must pay them. This could be done by one lump sum, or by finishing out the contract and paying the monthly fees over time. Several merchant complaints suggest that the latter is the common scenario. Although a clever tactic for avoiding having a defined cancellation fee, it still forces merchants to pay for cancelling early.
Electronic Payment Systems Fees, Costs & Contract Terms | C
Now that we have covered the non-disclosure of the contract term, EPS’s merchant account agreement is actually not bad. A one year service term is below average for the merchant services industry and EPS’s agents should not feel compelled to hide this fact. Aside from the normal monthly fees and processing fees that will vary by merchant, EPS has an $85 annual fee for each terminal the merchant uses. It is unclear if this fee covers the PCI Compliance fee, or if the merchant may be subject to both. Additionally, EPS will not prorate the it for partial years of service. The rating for this section would be higher if the early cancellation liability called “debt” in the agreement were more clearly defined.
Electronic Payment Systems Complaints & Service | D
Electronic Payment Systems has a relatively high number of complaints filed online for a processor of its size. Many of the complaints are in regards to the EPS90 ACH payment service the company offers, but a sizeable portion point to credit card processing issues.
Just like this reviewer experienced, numerous merchants reported of being told that the merchant account agreement was month-to-month only to find otherwise when they tried to cancel. Not only is the merchant account agreement a one year auto-renewing term, but it appears that a few merchants were lead to believe that their equipment leases would not let them cancel service with EPS. One merchant even reported that he opted in for a “purchase protection plan” that also had a one year agreement and monthly fee. Aside from this, one of the most common complaints was the non-disclosure EPS’s $85 annual fee during the account signup process.
There were several rebuttals by EPS representatives to many of the complaints filed online and nearly all of them are very unprofessional. Instead of attempting to resolve the complaint, the representative issued backhanded apologies, attacked the merchants’ intelligence and blamed them for not reading the fine print of the contract.
Lastly, there are also a few complaints from former agents mostly indicating that they were mislead at some point during their employment with the company.
Electronic Payment Systems BBB Report | D (CPO Adjusted)
Electronic Payment Systems is not accredited with the Better Business Bureau (BBB). As of this review the BBB is reporting an “A” rating despite 202 complaints filed in the last 36 months. Of the complaints, the majority are attributed to service and billing/collection issues. On the bright side (and what is probably the source of EPS’s high BBB rating) is that of the 202 complaints only 18 were not resolved to the merchants’ satisfaction.
Based on Electronic Payment Systems’ complaint count and resolution ratio, we are adjusting the rating to a “D” for the purposes of this review. You can learn more about why we adjust BBB ratings in our rating criteria.
Bottom Line
Electronic Payment Systems’ problems appear to lie primarily in the sales process. As a midsize provider some complaints are to be expected, however the common theme in EPS’s complaints should point the company to the needed areas of improvement. EPS can improve its score by tightening up the sales process, eliminating the $85 annual fee and working to eliminate new complaints. On a positive note the company appears to have a relatively fair merchant account agreement.
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5 comments
Nathan
May 14, 2012 at 2:47 pm (UTC -7)
Never get into business with these people. They are dishonest, ridiculous, and never follow through on anything they say they will. Do anything to keep yourself away from them.
Matt
May 3, 2012 at 8:13 pm (UTC -7)
I have been taken Victimized by EPS 90. These people are dishonest and should be prosecuted. Is there some way we can file a class action suit against these people. They do not care about you as a customer, they just want that monthly fee. There customer service is a joke. I filed a BBB complaint against them, got no where. They get you hooked with the contract, and the salesman which basically tell a bunch of lies about what is in the contract. Any body ever met an agent with EPS90 who’s name is Ryan Payne. I met him once, when I signed the contract, never heard from him again. I tried to contact him from at least three or four phone numbers that were given to me by EPS90. All of then where no longer in service or went to someone that said it was a wrong number.
This seems very strange to me that I cannot not contact my sales agent. Customer service could care less, if you find him or not. In my opinion customer service for EPS90 is just there to stall you.
Bedrock Stone & Design
April 25, 2012 at 12:25 pm (UTC -7)
This letter will act as a formal complaint from Bedrock Stone & Design to Electronic Payment Systems, LLC (EPS) located at 6472 S. Quebec St., Englewood, CO 80111-4628. EPS has been contacted numerous times with regards to a credit due to Bedrock Stone & Design. A monthly fee from EPS for the period of 2008 – 1-14-12, has posted to Bedrocks bank account. Melissa with Bedrock Stone & Design called EPS due to overcharging Bedrocks account. EPS front desk receptionist transferred her to Jesse (Assistant Manager for customer service) who was very rude. Melissa asked Jesse if EPS would be crediting Bedrocks bank account. Jesse said no and Melissa asked why? Jesse said that EPS needed a cancellation letter. Melissa then asked “Why not credit us since we have never used the terminal of even processed credit cards with EPS?” Jesse then told Melissa “Ma’am, I am only doing my job.” Melissa then asked to speak with his manager. Jesse said she was in a meeting. At that time the owner and signer on the account, Kerzon, called EPS and asked to speak with Amy (Jesses Manager). Melissa (on the other line) asked Jesse what Amy’s last name was, Jesse replied he could not give that information out. After being on hold for many minutes, Kerzon hung up the phone. Immediately Melissa called back and was able to get in touch with Amy. Amy said that Bedrock needed to send a letter of cancellation and agreed that she could give Bedrock a credit but could only go back 6 months. Letter of cancellation was mailed to EPS on 1/30/12 to cancel the account and we have attached. Melissa also requested the original contract agreement and Amy did mail it and Bedrock received it. Bedrock never received a response from EPS after sending the letter of cancellation as requested by EPS.
2/13/12 Melissa called again and tried to speak with Jesse who never took the call. She was then transferred to Anthony Armstrong. Anthony stated he would start the paperwork and issue a credit to the account. Anthony tried to persuade Melissa into staying with EPS and even offered to give Bedrock a lower rate. Melissa responded and said “No this is not why I am calling.” Melissa called EPS again to check with Anthony on the credit status and left him a message. Bedrock called again and was transferred to Jesse who said he did not know who we were or anything about the credit that Anthony stated he would be giving Bedrock.
2/22/12 Melissa left a message for Anthony, called back and left a message for Amy, called back and left a message for Jesse. 3/12/12 left another message for Anthony. 4/8/12 Melissa spoke with Anthony who stated he had given the paperwork to Jesse. She asked to be transferred to Jesse and was hung up on. Melissa called back and spoke with Jesse, who informed her that he had no idea what the call was regarding. Melissa asked to be transferred to Jesse who informed her that the account could not be cancelled because it was placed in collections.
4/24/12 Debra at Bedrock called Ms. Chonda Pearson (Executive Assistant) and Lane Dorsey (2nd Complaint Contact) and left messages. Chonda returned Debra’s call and spoke with Melissa. Chonda stated she would only talk to Kerzon, since EPS has a policy that they cannot speak to anyone else other than the account holder. Melissa told Chonda that it had been recorded back in January that Melissa could speak on behalf of the account. Melissa had previously spoken to Amy, Jesse and Anthony and did not have a problem speaking on behalf of the account holder. Chonda said she was reading all the notes in the system and began to raise her voice at Melissa. Chonda was very rude and hung up on Melissa. Melissa then proceeded to call back and was placed on hold for 15 minutes. Melissa finally spoke with Chonda again and asked if she could ask a general question (not regarding the account) Chonda was over talking Melissa and said NO and hung up. Melissa called back and asked to speak with Chonda and the receptionist said Chonda does not take calls. Then Melissa asked to speak with Anthony, Amy, Jesse and all were out to lunch. Each time she was transferred to customer service. Melissa was transferred to Chonda, again, and Chonda said she would contact police for being a harassing caller. Furthermore, EPS showed up on Bedrocks caller ID and hung up on Bedrock when the phone was answered.
At the present time, Bedrock has followed the procedure to send a written notice of cancellation (before Jesse informed us of the collection status); Bedrock is attempting to collect the credit of $779.50 in erroneous charges that were automatically taken out from Bedrocks bank account. The customer service at EPS has been very difficult to deal with. Since Bedrock did follow the contract agreement and Bedrock cannot work around talking to the same people who do not help, Bedrock believes that this company is no way intending to refund the money fraudulently taken. Bedrock has no choice but to file a complaint with the BBB and take the necessary legal steps towards receiving such funds. Bedrock also demands to be removed from collections and will be contacting the proper authorities to have such status removed from their unblemished name.
Terri
March 5, 2012 at 2:39 pm (UTC -7)
I was sold the EPS system last year and it has been a nightmare. My sales person Terry London has disappeared after promising to rebate fees that I was not told about, and assist me in using the EPS 90 system. I teach classes every few months and he guaranteed me that many schools and training facilities were using the system. I actually find that most of the students I speak to about it find it to be fishy.
He also charged me $2500 to “set up” the system, market and provide training. When i called customer service to ask about this charge and what I really was getting for it, they told me they had no idea what it was and that I needed to talk to my sales person about it. I told them who my sales person was and they told me that no-one by that name had ever worked for EPS and that I should contact the police. And yet this sales person did sign me up for their services…
The credit card processing through Authorize.net is fine, however EPS customer service is difficult. I would get a different story each time I called. I will cancel this account. I have filed complaints with the BBB and EPS would take no responsibility for the practices of their independent sales people. I feel that I was scammed.
Jackie
February 10, 2012 at 12:51 pm (UTC -7)
I have used EPS as a stylist, for a year now. The salon I worked at had nothing but problems with them, and while EPS did work to fix them, it was “always something”. I just recently began working at a new salon and although I called to cancel my account with them for the next year, they said I must continue to pay their $35/month fee for the next year because I did not give 90 days notice and there is no way for the salon I just worked at to replace me in their credit card system, and no way to cancel for the entire next year. This was not an expected job change and EPS has not tried to resolve this issue for my previous employer or myself. All-in-all, I’m not impressed with their contracts, timeliness of deposits, or customer service. I recommend any independent contractors looking into a company called Square (www.squareup.com) in order to accept credit cards from clients.