iPayment Review

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

iPayment Overall Rating

"D" Credit Card Processor Rating

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Jump to: Sales & Marketing | Costs & Contract | Complaints & Service | BBB Complaints

iPayment Overview

iPayment Logo

iPayment Logo

iPayment (ipaymentinc.com) is a very large ISO of First Data that claims to provide merchant accounts to approximately 190,000+ small businesses nationwide. Founded in 2006, the company is headquartered in Nashville, Tennessee, but maintains its main operations center in Los Angeles, California. iPayment is sponsored by Wells Fargo of Walnut Creek, California, as its Acquiring Bank.

Besides processing credit and debit cards, iPayment offers a wide variety of electronic payment processing services including gift and loyalty card programs, fuel services, paper and electronic check processing, merchant cash advances, and ecommerce acceptance methods.

iPayment Sales & Marketing Tactics | C

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

iPayment relies heavily upon third-party independent sales organizations (ISOs) and independently contracted agents to bring in new customers. This is a common marketing practice among large processors and often results in merchant complaints because the sales tactics of the ISOs and agents are very hard to control. It appears that iPayment is suffering from the typical complaints regarding this strategy, which negatively affects its rating in this section.

iPayment does not appear to directly utilize any deceptive marketing or rate quoting tactics; however, some of its ISOs and agents appear to be doing so. Merchants are encouraged to research any company offering iPayment merchant accounts before signing up.

iPayment Marketing Example

iPayment Costs & Contract Terms | C-

Key Points – Costs & Contract Terms
Swiped rate: Variable
Keyed-in rate: Variable
Termination fee: $250-$350
PCI compliance fee: Variable
Equipment lease: Variable

Pricing and contract terms of an iPayment merchant account can vary based on several factors including a merchant’s business type, processing volume, and the agent or ISO setting up the account. Under most circumstances it looks like the standard contract (available below) has a service agreement of 36 months with an early termination fee that ranges from $250 to $350. Depending on the ISO or agent, however, the terms of an iPayment merchant account contract are likely to be very negotiable. Be sure to read “Fee Sweep” before engaging any merchant account provider in contract negotiation.

Click here to see a copy of the standard iPayment Program Guide
iPayment Program Guide

[Related: Get quotes from a provider with “A” rated contract terms]

iPayment Complaints & Service | D

Key Points – Complaints & Service
Total complaints: 250+
Live customer support? Yes
Most common complaint: Hidden fees

iPayment has a moderate-to-high number of complaints filed online, many of which can be found in the comment section below. There are two types of complaints that dominate the reports. In the first type, the obvious sources of the merchants’ problems originate with the agents or ISOs that set up the accounts. In these complaints the common theme among merchants are reports of hidden fees, high monthly fees, non-disclosure of the service length agreement/cancellation fees, and high PCI Compliance fees. In the second type, iPayment is the source of the complaints and merchants report receiving poor service and unprofessional customer support.

Since it is our philosophy that the actual credit card processor is ultimately responsible for the agents and ISOs which represent it, we are awarding iPayment a “D” rating in this section based on these relationships.

iPayment BBB Report | D (CPO Adjusted)

Key Points – BBB Report
Product/service: 137
Billing/collection: 139
Advertising/sales: 138
Guarantee/warranty: 1
Delivery: 17

As of this update, the Better Business Bureau (BBB) is awarding iPayment an “A-” rating, which is surprising given the fact that the BBB report lists 432 complaints in the last 36 months, only 248 of which were resolved to the customer’s satisfaction. Complaints frequently cite billing and collection issues, product and service issues, and advertising and sales issues as the primary problems. These complaints are most likely a product of iPayment’s use of poorly monitored sales agents and the company’s lackluster customer support. For a better understanding of why we adjust BBB ratings, please see our Rating Criteria.

Bottom Line

iPayment is suffering from numerous complaints mostly due to its marketing strategy of hiring independent agents and partnering with ISOs. The company can improve its rating by significantly reducing its future complaint count and improving its pricing and contract policies so that merchants cannot be set up in expensive long-term contracts.

This review was originally published on 2/2/12 and was last updated on 7/29/14.

Leave your review of iPayment in the comment section below.

iPayment Review

Rated 1.625 Out of 5 Stars
Reviewed by Phillip Parker
Reviewed on 2014-07-29 13:32:38

iPayment (ipaymentinc.com) has a moderate-to-high number of negative reviews filed online, many of which can be found in the comment section of this review. There are two types of complaints that dominate the reports in which… Learn more in this iPayment 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.

Permanent link to this article: http://www.cardpaymentoptions.com/credit-card-processors/ipayment-review-complaints-and-rating/


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  1. reza davachi

    Ipayment inc Placed my accounts on the Terminated Merchant File (MATCH) claiming i broke mastercard rules solely because they were notified i was not Microsoft Authorized. Mr Cohen, of Ipayments possibly inept legal department, told me that they would ignore any evidence of my authorization BUT any evidence of my authorization has to be obtained by me and given to them.. HUH? So I have to prove to you i am authorized but you will not recognize anything i give you showing i am authorized.

    You are asking me to go above an beyond any company in the world has had to go to gain authorization. Not even Microsoft gives this much issue reselling their items.

    I sent Mr Cohen directly to Microsoft’s “How to be a license reseller” and it clearly states sign up for the Microsoft Partner Program. I then sent him a link to the Microsoft Partner program License which states we can sell Microsoft technologies. He then claims i could have gotten that from anywhere. Alleged Ignorance is bliss when it comes to Mr Cohen and his way of doing law.

    I offered to Pay for his time to show him how he can become authorized. I gave him my Microsoft credentials so he could log into my own account and review my license agreement with Microsoft.. Mr. Cohen is actively trying to deny any request or evidence and do any due diligence.

    He also expressed that until his contact from microsoft contacts him and says differently, they will not remove me from match. He will also not supply the info MS has given him and who at microsoft contacted him.. SO again. Mr Cohen is actively trying to prevent me from gaining the proper information he knows will satisfy his legal issues. Ethics left his plate long ago.

    Did you find this review helpful? Yes   No

  2. AJ

    Mine story is no different than others, started a new small business that has website to take orders. I was doing good and getting lot of orders and now all of sudden my money is put on hold for 90 days for no solid reason. They are holding over $10,000 of my hard earned money and I might have to discontinue my business because I don’t money to by supplies and to pay other expanses.
    It seems like they are openly cheating and killing small business and no body can stop them.

    Can anyone suggest any legal action to have my money back, I think I signed some contract of which they never sent me a copy so I am assuming all the fine prints must go against me.

    Really need some genuine help!

    Did you find this review helpful? Yes   No

    2 / 2 found this review helpful.
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