IRN Payment Systems
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IRN Payment Systems Overview
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IRN Payment Systems (irnpayment.com) is small merchant account provider located in Westbury, New York that claims to have been in business since 1988. Despite the company’s long time in business, it appears to have remained a fairly small player in the merchant services industry.
IRN Payment Systems Sales Tactics & Marketing Strategy | C
The exact marketing strategy of IRN Payment Systems is unknown at the time of this review. The company does not appear to use any misleading advertising, but there were indications of misleading marketing tactics which will be covered in the complaints section of this review.
IRN Payment Systems Fees, Costs & Contract Terms | D
A few dissatisfied merchants reported that IRN Payment Systems has a 4-year auto-renewing contract with a cancellation fee of around $1000; however, we were contacted by James Marchese (IRN’s Executive Vice President) who stated that the agreement is a one year auto-renewing term with a Liquidated Damages cancellation fee. Marchese also claimed that the company rarely enforces the full cancellation fee and that terms are negotiable prior to account setup. If you have experienced a cancellation fee with IRN, please leave a review in the comment section below.
Aside from the cancellation fee, a few merchants reported receiving high processing rates and statement fees. It should be noted that we were unable to verify additional terms of IRN’s merchant account agreement because we were never sent a copy of the contract.
IRN Payment Systems Complaints & Service | D
IRN Payment Systems earned a low grade in this section not because of the amount of the complaints, but because of the content of the complaints. Although only a handful were located, all of the complaints were from mid-to-late 2011 and reported the same problem: each merchant reported getting hit with a $1000 cancellation fee. One merchant reported that he was told that if he retracted his complaint and announced that IRN is refunding his cancellation fee that they would refund it. The merchant then retracted the complaint and a few months later reported that IRN still had not refunded the fee.
Marchese claims that these are isolated incidents and that IRN rarely enforces such high cancellation fees. It should be noted IRN’s contract gives them the ability to enforce a Liquidated Damages claim if they choose to do so, which is the main factor lowering the company’s score in this section.
We consider a Liquidated Damages cancellation clause as a deceptive “fine print” marketing tactic because it is easily missed by both seasoned and inexperienced merchants, and allows providers to charge exorbitant cancellation fees.
We will continue to monitor IRN’s complaints and policy changes, and update this review accordingly. Subscribe here if you wish to be notified.
IRN Payment Systems BBB Report | D (CPO Adjusted)
IRN Payments Systems is not accredited with the Better Business Bureau (BBB). As of this review, the BBB is reporting a “B-“ rating with 35 complaints filed in the last 36 months. Of the 35 complaints, all but two are regarding service or billing issues and 21 were not resolved to the merchants’ satisfaction. Based on IRN’s complaint count, resolution ratio and size, 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
IRN Payment Systems can greatly improve its overall rating in this review by removing the automatic renewal and Liquidated Damages clauses from its merchant account agreement. Additionally, reduction or elimination of future merchant complaints will also help the company’s rating. Merchants are advised to carefully read IRN’s merchant account agreement prior to signing up with the company.
Leave your review of IRN Payment Solutions in the comment section below.
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10 comments
Geoffrey Boutros
April 26, 2012 at 8:50 pm (UTC -7)
My name is Geoffrey Boutros. I am the president and co-owner of GR Purchasing LLC in Florida. I have been using IRN for credit card processing for 18 months. Most of my clients pay us via wire transfer or check. Once every 6 weeks, a client will ask me to charge the purchase to a credit card. Every time I pass a credit card, it gets approved, then it goes to risk assessment and I have to fight with risk assessment to get paid. They even call my clients to verify the purchase. I lost a client because IRN called them, was very rude, and harassed them about the credit card purchase they made with my company. Last week a client came to my warehouse. He made a purchase for $5433.50. He gave me his credit card. I followed the instructions that IRN gave me (key in the credit card and do not swipe it because my account is not set up for swiping). The credit card was approved on the machine. We made the delivery. Then we get a call that risk assessment is again reviewing the transaction and that they were freezing the payment again. They asked me for a copy of the invoice and all documents pertaining to the client and the transaction. I sent everything in. Then I get a call that IRN was going to keep my money for the next 6 months before they pay me. They indirectly accused me of being a thief. They told me that my company is not allowed to sell computers and because I sold computers to my client that they would not pay me. She was rude and accusatory. She was indirectly accusing me of Credit Card fraud. My client has told me that his bank has charged him for the transaction. He even paid the bill. IRN got paid by the client’s bank. But they will not pay me. When I told her that that I should have an attorney or someone of power review their practices, she told me to go ahead. She did not care because the fine print in their contract allows them to do this. She said that they have collected the money and will not pay me for 6 months. When I set up the account with IRN, they asked me about my business on the phone. I told them toys and office equipment. The lady told me that she wanted more specific than office equipment. I told her chairs, printers, ink, computers etc…. She only put chairs in the application. Now they are telling me that they have determined that my company is not allowed to sell computers and will not pay me because of this. I was very shocked. My company, GR Purchasing, is a licensed and recognized selling partner for Dell Computers, Lenovo Computers, and Cisco systems. She told me that they have determined that they will not pay me because their description of my company is just for office equipment. I told her that the computers we sell are office computers. She told me that IRN did not care and that they will not pay me. As I mentioned before she was very accusatory. When I asked if I had other options, she told me that they can credit back the client’s card but they will not pay me. I told her that the client already shipped the merchandise out. It would violate the trust that the client has in my company if I were to ask him to resubmit the payment in another way. She told me that IRN does not care. If I do not want to risk the reputation of my company by asking my client to resubmit the payment another way, then I should accept that they will not pay me for at least 6 months. In the mean time they have charged me a transaction fee and interest for the transaction that they will not pay me. They deducted the money directly from my account. They will take my money but they will not provide the service I pay them for. In short they will not pay me. My company is a small company. We have bills and and expenses. I have to pay my suppliers for the merchandise that I sold to my customer. IRN in the mean time has (for lack of a better word) has kidnapped my money. I need help.
Robert Brohaugh
March 16, 2012 at 9:53 am (UTC -7)
I signed with Orlando Sanchez in December 2009 for processing with IRN. I was approached this January by Kevin Johnson for federated payment systems processing. I was told I had to be upgraded to be PC compliant. I I told Kevin I would likely have to pay a fee to change. He responded saying he would cover any fees I incurred. I just got my bank statement not only did I get charged $1000 for canceling my last two transactions $134.50 never got credited to my account. Kevin suggested I call IRN and try to reactivate my contract with them. I now worry they have my $1000 and no incentive to help me. Also how much is Federated going to charge to leave them after 2 months?
This is a SCAM plain & simple and all the processors are doing it. Do not change processors for any reason unless you block your account from who you leave.
Nick
March 1, 2012 at 9:44 am (UTC -7)
I began processing with IRN systems in may 2011. I began seeing unfamiliar chargs on Oct and Nov statements and questioned customer service by phone and by letter. I did not receive satisfactory explanation over phone and request to respond in writing was ignored. I had the distinct feeling this relationship would only get worst. I feel IRN vioated the terms of the agreement, and terminated my processing with them. Within a few days my account was debited for 1000.00. FRAUD!!!. I contacted my bank and put stop payment on all IRN transactions. Wish I had put StopPayment prior to terminating! I intend to file complaints with State Attorney General and US Security and Exchange Commision.
Rachel Davis
February 9, 2012 at 8:11 pm (UTC -7)
As of Feb 9 2012 IRN Does charge $1000 to cancel their services. I had to cancel my service after 5 1/2 years. I asked if their was any way this fee could be reduced, that I understood that yes I cancelled their services 6 months prior to the end of my contract. I was told I was lucky that the charge was only $1000 and they were cutting me a break.I signed my contract prior tp purchasing my business and had no idea what I was getting into. I just found this charge on my bank statement today. I will have to cut my employee’s hours to make up for my mistake of trusting IRN. A small business can not take a hit like this.
Michae Dennis
December 20, 2011 at 4:03 pm (UTC -7)
Total rates running 4+%. Has IRN not heard of the Durbin Act of October 1 2011?
Brian
December 2, 2011 at 5:28 pm (UTC -7)
The largest scam company Ive ever dealt with. Signed a contract. From day one was billed a higher percentage and per transaction fee than we signed for. Also at the end of the month they hit me for huge fees on top of those which I knew nothing about contractually. Then the standard monthly fees tripled for no reason. Supposedly I am in a long term contract. Didnt know this. Cancelled my account and was charged $350 thru my bank. Had 4 months remaining supposedly on my contract and would have just paid the $12 per month instead but they never tell you anything about that. I will be filing a legal complaint against them as they are certainly not reputable
Flavius
November 29, 2011 at 4:13 pm (UTC -7)
When I signed Ashley promised me, via email, that they would reimburse my $135 technical support fee, which I had to pay to my POS vendor to switch over. Twenty-something emails and one year later, no reimbursement. I called them to tell them i’m leaving for this reason and Ashley says that I must pay $1000 cancellation fee. She told me that I am unwilling to work with them.
They will tell you anything to sign. They will not deliver. Then they will not let you go.
Micah
November 7, 2011 at 4:13 pm (UTC -7)
IRN Payment systems has been telemarketing my home to try and sell me their services. They leave a message every day and mess up my name in every message. Not sure why they are telemarketing their services to my home instead of my business. They must buy really bad lists.
David Samples
October 7, 2011 at 9:12 am (UTC -7)
Their additional fees were much larger and not told by the salesman. Sure there base rates were competitive but the final bill was much larger. In contacting the business no one to talk to and no returned calls.
They automatically deduct from your account and once they are in you can not stop them from doing so. Their bill makes no since, have stopped using their services yet my monthly deduction goes from $34.95 a month to $61.90 a month with out any usage.
Told by the company they would stop yet they continue. My bank will not stop payment and am at wits end on what to do.
steven malmberg
September 26, 2011 at 3:48 pm (UTC -7)
I spoke with an IRN customer today. He noticed that one month he did no transactions and was only charged a $10 statement fee for that month. Perhaps, rather than get hit with a $1,000 cancellation fee, merchants could just discontinue use during the automatic yearly contract extension and only have the $10 removed from their account each month for the reamining term.