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.



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Permanent link to this article: http://www.cardpaymentoptions.com/credit-card-processors/federated-payments/


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  1. John

    I worked for this company as a inside sales rep for 2 weeks and they were the longest 2 weeks of my life. They are a bunch of fast talking con artists. My job was to contact merchants after an outside rep was not able to close a deal and try to close again as a corporate director from the home office who could give the merchant an exceptional rate. Problem was All of the merchants were so pissed at us that either they hung up or wanted to curse me out. The outside reps would not show at their appointments or would lie to the merchants about anything and everything. This is a boiler room operation from the get go. I’ve been in sales a while so I saw the writing on the wall and got out after I got my first check. If I quit before then I knew without a doubt they wouldn’t have paid me. Run and hide from this place. A job like this will kill you.

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    1 / 1 found this review helpful.
  2. Richard Climan

    Throughout the interview and training, I could not find 2 people in the company who gave the same information regarding commissions paid to the agent nor merchant pricing.Everything was very vague, never in writing. I tried it out to seeif after I closed a deal what the payment would be. I requested information and pricing on self generated accounts but did not receive any response, except “SIGN THEM UP” without even a rate. The leads were not accurate and after a day it was very apparent that this was a boiler room operation with very limited legitimacy. Since then I have learnt that if you do make a sale collecting your commission is very difficult. Manager support is almost is very limited. I was told while I was sitting in front of a potential client the quote would come via fax in 15 minutes but waited 1 hour and 20 minutes for a fax that never came. When i called Mike I was told by his assistant that they would not put the quote in writing as the client had a very good rate. I was embarrassed. There are good professional companies out there,but this is clearly not one of them

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    1 / 1 found this review helpful.
  3. Dr David S Zambron

    I have had a very bad experience with Federated Payments. A salesmen came to my dental office and offered to help reduce my credit card fee’s. I told him that if I don’t have to buy any new equipment and don’t have to pay any cancellation fee’s that I would change over from the previous merchant. I also told the salesmen that he and my office manager would have to end the activities of the previous merchant. It wasn’t until I did my taxes and started to look at the fee’s associated with my credit card account that I got a shock. $1300+ for credit card fee’s for the year??? Later I come to find out that the previous two merchants were also charging my account for service’s that they were not rendering. Part of the deal of me switching to Federated Payments was that they would tie up the lose ends with the previous company. They did not. So after calling the previous company and finding out that they received the termination letter but it was not signed (yeah right), I went to my bank and closed the account so that these companies could not keep taking out fee’s. Now I get collection calls from Federated Payments that I owe them an early termination fee. I call them and they say I signed a contract. I thought to myself I never signed any contract. So I tell them to mail it to me. Finally I receive this contract and they highlight in this tiny print about cancellation fee’s. I look at my signature and it is very close to mine but the last 3 to 4 letters of my last name are missing. Also says (No Tittle) under the first signature and the signature has Dr in front of it. I am very suspicious of a misleading document or some other shady aspect with this company. I verbally told the salesmen I didn’t want to buy any equipment nor did I want any cancellation fee’s. When I called to complain to a representative named Bill, all I got was how do I want to settle the account which they claim I owe them $400.
    So to summarize: Federated Payments will tell you whatever you want to hear. They will not “take care of” closing your previous merchant account that they say is a simple matter to close. They will also find someway to get a signature on a contract to legally bind you to a early termination fee. If they would of done what they said they were going to do, I would not be having issue’s with them.

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    2 / 2 found this review helpful.
  4. Outside Sales Rep

    I’ve “been on the board” with Federated for about 6 weeks now. Sure, not everything is rosy and peachy but I’ve got no complaints when it comes to this job. They provide me with leads (not as many as I’d been promised but s**t happens) and good training. The sales managers are smart, responsive and helpful. Are they a bit pushy? Sometimes but they have their goals to meet, just like I do as an outside sales rep. Sales is a tough job. At the end of the day, this job is earning me some ok money (which will get better as I improve as a sales rep) and making me a better salesman.

    Any issues that have occurred were more a result of my mistakes than any malpractice by FPS. The mistakes that were made at the “office” were quickly and effectively resolved to my clients satisfaction by the sales support team. No one has asked me to lie, cheat, steal or mislead any clients. The one time I pushed back on an issue and explained my position it was accepted and there was no push back from above.

    I did my homework before taking this job, so I knew what to expect.

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  5. Earl Herald

    In my opinion, this was one of the worst card processer company I have ever delt with. Charging my account with crazy “NON CONTACTUAL Fees. They have debited my accout close to three hundred dollars in AMIN COMPLIANCE FEES. Needless to say I have canceled my account with this company….beware of this company….

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  6. Dawn johansen

    I worked for federated as a telemarketer for quite sometime. They are of corruption. Scott Avery encourages us to violate FCC laws. Their new dialer system calls merchants 3 to 4 times daily and we are instructed by scott not write notes that are pertinent to this. He wants us to call excessively until the merchants give in and make an appointment. The management verbally abuses the staff and threatens to fire them if their leads are low for the day. They hire and fire telemarketers daily, even some who have had longevity if you have declined in prodductivity. How are you suppose to produce quality leads when you are calling the same business more than once. They have no regard for these people who are being hounded constantly with a barage of calls. They have no integrity and are untruthful in theIr pitches so they can gain a listening ear and hopefully a sign on. Don’t sign on to their corruption. Don’t seek emplyment with their company. They are greedy ruthless sharks.

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  7. Fomer Emploee / Kansas

    I worked for the company for more than a year in Kansas. I did better than most reps but they went through scores of people because they get screwed on the residuals promised. That is eventually why I left and we’re talking thousands of dollars. The area manager doesn’t care how many sales reps come and go because they keep your residual income stream, and that’s just fine with this company. Your contract says you will need to get a New York lawyer, where the firm is located, if want to bring action in the event of commission dispute. Its a fact, Jack.

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  8. Michael Forsythe

    This company is a big scam. They treat there employees like they are slave have no consideration for anybody that works there and the ones that get screwed in this is the outside sales reps. They think they are going to make a lot money doing this 85k per year because that what it says on careerbuilder not true. They are lucky to make 20k their first year. I hated working for this company it was the worst job I ever had. PLEASE DO NOT WORK FOR THIS COMPANY AT ALL. DO NOT ANSWER THERE CAREERBUILDER AD STAY AWAY.

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  9. Sandy Wait

    The company I worked for saved allot of money after switching to Federated. The sales person was a little pushy & over-excited, but the end result was favorable, and everything she said proved to be truthful.

    The one time I had a question/problem, it was addressed and corrected quickly with a sincere apology.

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  10. Former Employee

    If you are dealing with this company get out now. They will say/do anything to get your money. If you get a call for an appointment just say “no hablo ingles”. They’ll just hang up since they won’t send anyone out who doesn’t speak English. This company is run by a pack of crooks. That $500 guarantee to show you lower rates? You’ll never see it. They’ll just quote you a couple cents under your current cost just to keep from paying up. I won’t even get into they way they treat their employees as well as the quality of people hire. Your best bet is to put an ATM in your business, you get paid for it.

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  11. Anna

    These guys are the worst. They’ve charged us repeatedely for no good reason. They did not cancel our service when we went through the cancellation process, charging us for months without our realizing it. I’m really sorry that a company this bad is even still allowed to do business. Their phone representatives barely ever even know what’s going on. I could call four times with the same question and get four completely different answers. Most recently, they took $300 out of our bank account to pay for an unreturned piece of equipment that was returned 5 years ago. These people are crooks.

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  12. devkirn

    We have been using federated payments for more than 8 years. I have found them to be very heavy handed with charging me for anything they could think of, any good reason. As of today, they decided ( and said they sent a letter which i have not received, i just happen to call them) that my business’s do not qualify as something they would run credit cards for, that is a self development course that teaches, compassion, care and kindness. They said they decided this after looking at the web site…humm. The risk manager actually said they do not process courses that deal with butterflies and rainbows….WHAT…that is ok because i am on the way to another processor for sure i would not deal with them ever again. I their risk management people to be over the top, rude and generally treating you like a child not a customer that they value.

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  13. David Collins

    I have worked for Federated for the past 6 years as an outside and inside sales representative. I felt compelled to write this review because over the past years, they have been very fair to me. I have earned a significant income due to their upfront commissions and lifetime residuals. They are a very honest company and my sales managers (I have had a few over the years) have been great to work for. They give you a lot of help when you need it. I would recommend Federated Payments to other sales people out there as a place to work and to any merchants looking to accept credit cards or switch from their current processors. Thanks!

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