Paynet Systems Overall Rating
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Paynet Systems Overview
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Paynet Systems (paynetsystems.com) is a small-to-mid size merchant account provider based in Alpharetta, Georgia. Founded in 1999, the company was bought by Pipeline Data in 2006 but continues to operate as its own brand. Unfortunately for Paynet Systems, Pipeline is one of the poorest rated processors in the credit card processing industry. With that said, it appears that Paynet may have shielded itself from Pipeline’s reputation and operates nearly independently of Pipeline. For this reason, we will treat Paynet as its own company for the purposes of this review.
Paynet Systems Sales Tactics & Marketing Strategy | C
Paynet Systems has received an average rating in this section because it promotes misleading rate & fee quotes on its website. It does this by only quoting the “Qualified” transaction rate and making no mention of the more expensive “Mid-Qualified” and “Non-Qualified” rates that 50%-80% of a merchant’s transactions will experience. Additionally, Paynet makes no mention of other ancillary fees such as batch fees, and AVS fees.
Aside from the misleading quotes, this reviewer found no other use of deceptive marketing or sales tactics. The company appears to market primarily through partnerships, affiliates and an inside sales staff.
Paynet Systems Fees, Costs & Contract Terms | C+
As mentioned earlier, Paynet Systems quotes only the Qualified rate tier on its website. The company also mentions that it will pay a merchant $200 if it cannot beat a competitor’s rate. Due to this fact, it is likely that rates and fees with Paynet Systems will vary from merchant to merchant based on a variety of factors.
On a positive note, Paynet offers a short-term, six (6) month service agreement with a $75 early cancellation fee, which is far less than the industry average. Additionally, the company offers a smartphone processing service that waives the $10 monthly service fee for the first six months.
Paynet Systems Complaints & Service | C+
For a company of Paynet Systems’ size, it has about an average number of complaints compared to similar sized providers. Although most of the complaints were not overly alarming, there is a theme among them where merchants complain of unexpected fees, and receiving poor service and customer support.
Paynet Systems Better Business Bureau Report | B-
As of this review, the Better Business Bureau (BBB) is not showing Paynet Systems as accredited. The BBB is reporting a rating of a “B-“ based upon 26 complaints filed within the last 36 months. Of the complaints 12 are due to problems with service, 11 to billing & collection and three (3) to advertising & sales issues. Paynet Systems resolved 17 of the complaints and 42% of them were not resolved to the merchants’ satisfaction, which is a relatively poor resolution ratio.
Bottom Line
Paynet Systems appears to be an average merchant account provider within the credit card processing industry. As a subsidiary of Pipeline Data, it is difficult to say if Pipeline’s poor reputation has an influence on Paynet. The company could improve its rating in this review by removing it misleading rate and fee quotes from its website, reducing/eliminating future complaints, removing its early cancellation fee and six month service agreement, and resolving a higher percentage of BBB complaints to the merchants’ satisfaction.
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