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: https://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.

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  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!

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    2 / 2 found this review helpful.
  3. Daniel

    I cancelled 2 days after I signed up through Flagship because I didn’t know this company named iPAYMENT was GOD. Apparently they have the power to approve or decline my sales. I processed two transactions that totalled more than what I was allowed to charge, which was never disclosd to me by the Sales Rep. I don’t understand how and why a company would put a limit on how much a business can charge per transaction, per customer and per month. What a ridiculous policy! Why would they put a ceiling on my sales? You guys are just a middle man making money off my profits. Take the money from the buyer, who is willing to pay, take your percentage and hand the rest over to the seller. Simple.
    I now have to shop for another merchant provider and the first question I ask is “Are you partners with ipayment?”
    If they are, that disqualifies them automatically.
    Reading other reviews, I’m glad I had this experience early because it would have been a nightmare.

    I guess I should thank the Risk Management Dept for declining my sales transactions based on god knows what.
    Obviously they consider me a risk before they even had a chance to do business with me.
    Well anyone who is considering using ipayment … BEWARE because your risking your business by dealing with them.

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    1 / 1 found this review helpful.
  4. Thomas Burdsall

    I was totally unaware that I was required to pay a nearly 100 dollar minimum per month for the privilege of accepting credit cards.
    IN over three years I processed ZERO credit cards, but found I was paying I-payment nearly 5000.00 in monthly and yearly fees. I did not monitor my banking account as closely as I should have…. But locking in for 3 years was not made clear not can I find it in any paperwork I received.
    Run Away… Run fast if you are a small business. It takes one month to close the account. so they charge you another one month fee.
    Customer service reps are NOT there to help YOU. BEWARE

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    1 / 1 found this review helpful.
  5. Valerie Hector

    I received a replacement VeriFone VX610 Wireless terminal from IPayment’s agent NPMG. The terminal was a replacement for a stolen VeriFone VX610 and NPMG sent it to me without first downloading the software to make the terminal work. NMPG told me to telephone Ipayment for a telephone download. After 3 unsuccessful downloads, IPayment told me the problem was with my telephone line. They told me to go to another building with a different telephone line. I went to my parents’ house in an adjacent town, and after 2 more download attempts, my terminal still would not work.

    IPayment techs then told me that they could try to have my downloadable file “rebuilt” by their sister company, First Data, and that maybe then, on the 6th download, the download would work. I was not fond of that idea, given that I had other work to do than wait for a 7th download to fail.

    I informed them that the previous day, one of their techs told me I could return my terminal to IPayment and have them do a download in-house. Well, that was yesterday’s tech, and today the story was a bit different. Today’s tech tried everything possible to dissuade me from returning the terminal to them for an in-house download. But I persisted.

    Bottom line: I am shipping the terminal to IPayment tomorrow via FedEx overnight at my expense. It should arrive on Tuesday morning, April 8th, 2014. I was told to call IPayment on Tuesday to be sure that the terminal has arrived, and to ascertain how long the download will take. I have requested overnight service on their end, since I need the terminal for a show this coming week. Ipayment could not promise to do the download quickly, but they will try. Supposedly the overnight return shipping of the terminal, whenever that ends up taking place, will be at IPayment’s expense but just in case I offered to give them FedEx number, so that the cost of return shipping cannot be used as an excuse for not getting the terminal to me quickly, so that I can use it during my upcoming show.

    All of this is quite surprising – given the 4 or so hours I have spent on the phone with IPayment techs in the last few days, it would seem to make more financial sense for them to just stop the nonsense after the 2nd or 3rd hour of technical support, and program the download in-house. I have lost 4 hours of time on my end, and they have lost 4 hours on theirs – total of 8 hours. That is not including the 5 or so hours I spent trying to get their defective downloads to work.

    Unfortunately this is not the first serious problem I have had with IPayment’s technical support department, trying to fix their defective VeriFone VX610 terminals. Am I wrong to suspect that these terminals are rebuilt, meaning highly likely to be problematic?

    And they are highly adverse to acknowledging a very basic fact: the problem lies not with my telephone line, or with my parents’ telephone line, but with the apparently defective downloadable file that someone on their end built for my terminal.

    One further issue: when I call IPayent Technical Support and they ask for the last 4 digits of my social security number, they tell me no, they don’t have those digits on file for me, that I must be mistaken about my social security number. So I give them my FEIN instead. Nor can IPayment recognize the business phone number I have had for 15-plus years.

    Given the above, should I stay with IPayment, or try another processor? And a more technically-advanced type of terminal / card reader?

    Valerie Hector
    Evanston, IL

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    1 / 1 found this review helpful.
  6. Jeffrey Burton

    Century Payments accepts merchant services through I-Payments. After my contract was up I decided to cancel my service due to high fees and changing policy on the whim, they charged me a $250.00 early termination fee although it was not an early termination. This made my banking account overdraft 3 times for 3 days in the amount of $108.00. They said they are not responsible for the overdraft fees (this has gone on for 6 days straight). I can not purchase supplies or pay bills with my business account because of their mistake. I warn you, do not do business with Century Payments (I believe they were bought out by another larger merchant services company) or their affiliates. Im just a small mom and pop shop, and must manage my money tightly, they did not care.

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    1 / 1 found this review helpful.

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