Encore Payment Systems Review


Overall Rating Breakdown
Sales & Marketing Tactics
Costs & Contract Terms
Complaints & Service
BBB Rating

Encore Payment Systems

"D" Credit Card Processor Rating
Last Updated: June 25, 2014
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Jump to: Sales & Marketing | Costs & Contract | Complaints & Service | BBB Complaints

Encore Payment Systems Overview

Encore Payment Systems Logo

Encore Payment Systems Logo

Encore Payment Systems (encoreps.com) is a merchant account provider based in Addison, Texas, that began operations in 2004. The company also does business in the U.S. under the names Prodigy Payment Systems and Momentum Payment Systems. Additionally, Encore has a Canadian sales arm called MOCA Payment Systems.

Two different agents claimed that Encore Payment Systems is a direct processor with HSBC Bank, which is surprising considering it’s a young company. After pressing the issue, one agent admitted that Encore occasionally uses Chase Paymentech for a processor, but insisted that the company is a direct processor in all other cases.

Besides offering credit card processing services, Encore Payment Systems also offers check conversion & guarantee, wireless processing, electronic benefits transfer, terminal sales & leasing, and gift/loyalty card acceptance. The company is a registered ISO/MSP of Deutsche Bank AG, New York.

Encore Payment Systems Sales & Marketing Tactics | D

Key Points – Sales & Marketing 
Uses independent resellers? Yes
Promotes deceptive rate quotes? No
Discloses all important terms? No

Encore Payment Systems appears to use an ethically questionable marketing strategy. First, the use of multiple DBAs suggests that the company is purposely attempting to spread its complaint count among the different business names. It also makes it possible for a merchant to cancel an account under one business name and then inadvertently sign up with the same company represented under another name. Nearly all merchant services providers that take part in this strategy have very poor reputations.

Second, the company appears to be a “hiring mill” that markets its business by continually recruiting independent outside sales agents (ISAs) who are only paid upon making a sale. Like many companies that use this hiring practice, Encore’s agents appear to be trained primarily on how to sell expensive merchant accounts and equipment leases in exchange for high commissions. They also appear to be poorly trained about the details of the merchant account agreements they are selling and the credit card processing fees associated with them. Agent turnover with this type of provider is typically very high.

Based on reports by merchants, there is evidence suggesting that Encore’s marketing strategy often results in the use of deceptive sales tactics. We cannot say if Encore encourages or endorses misleading tactics, but it seems that its pricing and underwriting policies make it possible. The company also appears to enforce contracts even when merchants claim to having been misled by an agent.

Alternate URLs:

  • encorepaymentsystems.com
  • encorepaymentsystems.net
  • prodigypay.com
  • momentumpayments.com

[Related: Get quotes from a provider with “A” rated sales tactics]

Encore Payment Systems Costs & Contract Terms | D

Key Points – Costs & Contract Terms
Swiped rate: Variable
Keyed-in rate: Variable
Termination fee: $195+
PCI compliance fee: $95 per year
Equipment lease: 48 mos./non-cancellable

Encore Payment Systems’s pricing and contract terms appear to vary based upon the merchant and the agent setting up the account. The company’s standard merchant account contract has a three-year service agreement with automatic renewal for one-year terms and an average Early Termination Fee (ETF) of $195; however, some merchants have reported ETFs up to $450.

An older version of the standard Encore Payment Systems contract is available below; it outlines a three-year agreement with automatic renewal, a $195 “deconversion” fee (which acts as an ETF), a monthly minimum fee of $25, an annual fee (probably a PCI Compliance fee) of $95, a monthly “bank access fee” of $9.50, and an expensive tiered pricing structure. Although this agreement appears to be outdated, we do not have any evidence that the company’s contract terms are any more favorable today.

Aside from the standard three-year merchant account contract, there are numerous reports stating that merchants were locked into four-year, non-cancellable equipment leases. Cancelling of these leases before the termination date is reported to cost in the thousands of dollars. We recommend avoiding leasing equipment from any company because it is often the most expensive option. Buying your equipment outright is often the best and most cost effective solution.

Click here to see a copy of the standard Encore Payment Systems contract
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Encore Payment Systems Complaints & Service | D

Key Points – Complaints & Service
Total complaints: 100+
Live customer support: Yes
Most common complaint: Long-term leases

For a provider of its size and time in business, Encore Payment Systems has a moderate-to-high number of complaints when we combine all of them together from its other DBAs (many of which can be found in the comment sections of our reviews). Even more disconcerting are the numerous complaints from former agents of the company. Nearly all of these former agents complain of deceptive hiring practices and that they were encouraged to lie to and mislead merchants.

As for merchant complaints, the common theme among them are several reports suggesting the use of predatory equipment leases that cost merchants thousands of dollars for equipment that can be bought in the low hundreds. Nearly all of the reported leases were four-year terms with no ability to cancel without incurring significant financial cost. One merchant’s experience with misleading sales tactics, poor customer service, and unexpected equipment expenses is chronicled here.

Encore Payment Systems BBB Report | D (CPO Adjusted)

Key Points – BBB Report
Product/service: 33
Billing/collection: 30
Advertising/sales: 4
Guarantee/warranty: 0
Delivery: 0

As of this review, Encore Payment Systems is not accredited with the Better Business Bureau (BBB) and holds a “C” rating, up from a “C-” at the time of our last review. The BBB is reporting 67 complaints filed within the last 36 months (up from 64 as of our last update); however, when adding the complaint counts of Prodigy Payment Systems and Momentum Payment Systems (Encore’s other DBAs), Encore actually has had 180 complaints in the last three years. The complaints are somewhat evenly spread across issues with advertising and sales, billing and collection, and problems with products and services with the highest count. Of all the BBB complaints against Encore Payment Systems, 82% were resolved to the merchant’s satisfaction.

Based on the complaint count and resolution ratio, we are adjusting the BBB’s 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

Encore Payment Systems scores low in our review because the company uses multiple business names, relies too heavily on hiring independent outside sales agents, has a moderately high complaint count for a company of its size and time in business, and appears to suffer from widespread use of deceptive marketing and sales practices. The company could improve its rating by eliminating the above mentioned problems.

Leave your review of Encore Payment Systems in the comment section below:


Encore Payment Systems Review

Rated 1 Out of 5 Stars
Reviewed by Phillip Parker
Reviewed on 2014-06-25 10:10:05

UPDATED: June 25, 2014 – There are a moderately high number of negative Encore Payment Systems, and many of these have been left by former employees who consider the company a scam… Encore Payment Systems scores low in our review because the company uses multiple business names, relies too heavily on hiring independent outside sales agents, has a… Learn more in this Encore Payment Systems review.

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About the author

Phillip Parker

Phillip Parker is a former merchant services agent turned small business advocate and the author of "Fee Sweep," which teaches merchants how to dramatically lower their processing rates, eliminate junk fees, and avoid fine-print scams. He founded CardPaymentOptions.com to help merchants enact positive change in the credit card processing industry.



 
Phillip can help you find an ethical and honest processor that will offer you great rates. Click here to request a free provider consultation.

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20 comments

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  1. Keith T

    BEWARE OF THIS BUSINESS…I was referred to encore so I called them. I told them I want a transaction by transaction account. they told me that they would have to charge a higher percentage per transaction. I agreed to that so long as there was no contract binding me if my new small business failed. After obtaining their equipment I was being charged about 10% per swipe. Being a repair facility that could be $100 per swipe. I closed the business but still kept my account open with Encore and paid their monthly account fees. After having them for a year I call and told them that I wanted to cancel and was told that I could not unless I paid a penalty for breech of contract. Well to make it short. Instead of transaction by transaction they tricked me into signing up for a 4 year contract. DIRTY BUSINESS TACTICS………….BEWARE

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    5 / 5 found this review helpful.
  2. David

    The Texas attorney general needs to monitor the owners and managers of this company. The rep (Joe) gave me story on how smooth everything would be because I already used EPN (software) and didn’t need a card reader. Not true. they wanted to set me up with a new EPN and “charge me twice”. For all the rate discounts it doesn’t make sense when the fees are enormous, you can’t have continuity or control of your business.

    He promised to follow up but, never did.

    I hope they don’t burn me when I try to cancel?

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    1 / 3 found this review helpful.
    1. David

      Follow up to my January 20, 2014 post.

      Well, things were quiet and I thought that Encore respected my multiple requests to not engage their services for reasons previously stated. Today, March 6, 2014 I received my first notification that they debited my business banking account for $67.00.

      Encore Payment Services and it’s owners, managers, and apparently employees/contractors are collectively scam artists, liars and thieves. My thief is named Joe Barrett (214) 796-9110. He allegedly grew up in Kopprel, Texas according to him. The reason this was slightly important in mentioning is that he looks you right in the eye with awe shucks country talk and after he was through I mentioned to him I actually know the town well as my Father was a school administrator there after he retired from being a full time administrator in another district. When I mentioned this to Joe he became kind of white and I should have taken the papers out of his hands at that moment, torn them up and kicked him out of my home, (yes home) where he showed up to meet me unannounced.

      Warning to all business owners. I now get to go through the unpleasant task of closing my business checking account because of this. They won’t fix the problem they just lie and lie and lie drag it out until they get their hooks into you.

      At least half of my business I provide direct services to law enforcement, Judges and District attorneys. If I ever would call in a favor it would be on Encore. This business must be stopped!

      I am highly disappointed and disgusted. I will never speak to any credit card processor company again.

      Did you find this review helpful? Yes   No

      1. Michael

        ENCORE BIGGEST SCAM credit card company today.
        I was also scammed in 2011-2013 (post mar 8 2013)
        Still upset that they continue to ripoff the consumer and are still in business.
        Biggest scam company around but keeps on ticking.
        Unbelievable they still exist with such poor ethics.
        Switched to world pay and am very satisfied.

        Did you find this review helpful? Yes   No

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