National Payment Processing
Last Updated: June 27, 2014
National Payment Processing Overview
National Payment Processing (nationalpaymentprocessing.com) is a merchant account provider located in Stockton, California. The company looks to have begun operations in 2003, but other details about its operations are difficult to obtain.
Based on phone calls to agents and online research, it appears that National Payment Processing may be affiliated with, or connected to, a few other credit card processing companies about which details are unclear. The company may also have once been called 1st National Payment Processing, but there are at least two other companies that continue to use this name. Additionally, National Payment Processing may have a business relationship with Titan Merchant Services and Spectrum Merchant Services, but the exact details of these relationships are also unclear. An agent of the company claimed that Titan was National Payment Processing’s processor but upon closer inspection it looks as though Titan is an agent or sub-ISO of the company.
Based on its relationship with Wells Fargo as its Acquiring Bank and the fact that the company supplies First Data processing equipment, it appears that National Payment Processing uses First Data for its payment processing network. More accurately, multiple merchants are reporting that the company is a reseller of iPayment, which is itself an ISO of First Data.
The company may also be affiliated with the following websites, some of which are no longer active:
In addition to providing credit card processing services, National Payment Processing also supplies electronic check processing and gift card programs.
|Key Points – Sales & Marketing|
|Uses independent resellers?||Yes|
|Promotes deceptive rate quotes?||No|
|Discloses all important terms?||No|
National Payment Processing does not use any misleading advertising or sales tactics in its official materials that are apparent to this reviewer. The company appears to rely heavily on recruiting independent sales agents, resellers, and referral partners. There are also a couple reports from merchants claiming to have received telemarketing calls from the company, but it is unclear if these calls came from the company itself, or from a reseller.
Generally, heavy reliance on independent agents and resellers results in problems regarding deceptive sales tactics. Although National Payment Processing has a lower-than-usual number of complaints regarding this practice, there is a consistent theme among National Payment Processing negative reviews of nondisclosure of contract terms and misrepresentation of rates. Merchants especially mention the company’s large PCI Compliance fee (also called an “annual fee”) as a term that is inconsistently disclosed.
|Key Points – Costs & Contract Terms|
|Termination fee:||$250-$350 or none|
|PCI compliance fee:||$129 per year|
Pricing of a National Payment Processing merchant account appears to vary based on a number of factors, including a merchant’s business type, processing volume, and the agent setting up the account. A representative of the company claimed that the service contract is month-to-month with no cancellation fee; however, we located more than one merchant complaint stating that the company charges a $250-$350 termination fee for cancelling service. National Payment Processing also appears to charge a $129 annual PCI Compliance fee in addition to several other monthly fees. These costs are consistent with those reported for other iPayment accounts and an older copy of the company’s merchant application (available below). Merchants are strongly encouraged to read their contract to uncover possible annual service agreements, early termination penalties, and additional service charges.
|Key Points – Complaints & Service|
|Live customer support:||Yes|
|Most common complaint:||Hidden fees|
There are a low-to-moderate number of National Payment Processing reviews filed on this and other consumer protection websites. Most of the complaints from merchants report unexpected and hidden fees, having fees increased without notice, and discontent over the $129 annual PCI Compliance fee. A couple reports also indicated difficulty in cancelling accounts. Although the company’s complaint total is not especially large for its size and time in business, the consistent reports of nondisclosure and rate increases have lowered its score to a “B-” in this category.
|Key Points – BBB Report|
As of this review, the Better Business Bureau (BBB) is awarding National Payment Processing an “A+” rating and reporting that the company earned accreditation in May of 2011. As of this update, the report states that National Payment Processing has received 36 complaints in the last 36 months. Of the total, 15 are regarding problems with products and services, 18 due to billing and collection disputes, and three for advertising or sales issues. National Payment Processing has successfully resolved all but seven of the complaints to the merchant’s satisfaction. We have adjusted the company’s rating to a “B” for our scoring purposes based on our Rating Criteria.
Although National Payment Processing rates better than its apparent backend processor, iPayment, the company’s rating still suffers from expensive contract terms and complaints about deceptive sales practices. NPP can improve its rating by eliminating its PCI Compliance fee and reducing complaints regarding confusion over pricing and fees.
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