Encore Payment Systems
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Encore Payment Systems Overview
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 recently opened 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 otherwise the company is a direct processor.
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.
Encore Payment Systems Sales Tactics & Marketing Strategy | F
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 companies that take part in this strategy have very poor reputations.
Second, the company appears to be a “hiring mill” that builds its business by continually recruiting outside independent agents 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 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. Additionally, 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 appears that its business practices make it possible.
Alternate URLs:
- encorepaymentsystems.com
- encorepaymentsystems.net
- prodigypay.com
- momentumpayments.com
Encore Payment Systems Fees, Costs & Contract Terms | C-
Encore Payment Systems’ pricing and contract terms appear to vary based upon the merchant and the agent setting up the account. However, the company’s standard merchant account contract has a three (3) year service agreement with an average cancellation fee of $250 – but the fee can vary and be more expensive.
Aside from the standard three year merchant account contract, there are numerous reports stating that merchants were locked into four (4) year equipment leases. We recommend never leasing equipment from any company because it is the most expensive way to obtain it. Always buy your equipment and be sure to shop around for the best pricing.
Encore Payment Systems Complaints & Service | D
For a provider of its size and time in business, Encore Payment Systems has a moderate-to-high number of complaints when you combine all of them from its other DBAs. Even more disconcerting is that there are 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 (4) terms with no ability to cancel without incurring significant financial cost.
Encore Payment Systems Better Business Bureau Report | D (CPO Adjusted)
As of this review, Encore Payment Systems is not accredited with the Better Business Bureau (BBB) and holds a “C+” rating. The BBB is reporting 62 complaints filed within the last 36 months; however, when adding the complaint counts of Prodigy Payment Service and Momentum Payment Services (Encore’s other DBAs), Encore actually has had 105 complaints in the last three years. The complaints are somewhat evenly spread across issues with advertising & sales, billing & collection, and problems with products and services with the highest count. Of all the BBB complaints against Encore Payment Systems, 80% were resolved to the merchant’s satisfaction.
Based on the 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
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.
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