Vericomm Overall Rating
Vericomm (vericommcorp.com) is a merchant account provider that specializes in marketing credit card processing services and point-of-sale (POS) systems to small retail and restaurant businesses. There is some evidence that the company is a reseller of iPayment contracts, and it may also resell National Processing Company services. In addition to marketing merchant accounts and processing equipment, the company also offers gift card programs, high risk merchant accounts, merchant cash advances, check verification and guarantee, and debit card processing. Vericomm appears to have begun operations in 1996 and may also use the alternate business names “Vericomm Credit Card Systems” and “Vericomm Electronics.” Vericomm is a registered ISO of Wells Fargo Bank, N.A., Walnut Creek, California. The company’s corporate headquarters is located at 27200 Tourney Road, Ste 220, Valencia, California 91355.
Vericomm Sales & Marketing Tactics | C-
Vericomm primarily markets itself through the use of independent sales agents. The company is showing numerous complaints related to its sales tactics, including nondisclosure of fees, misrepresentation of rates and service lengths, and deceptive claims related to the company’s equipment leases. Generally speaking, Vericomm appears to be a standard “hiring mill” company with a team of minimally trained, poorly regulated sales agents. Vericomm’s responses to merchant complaints about agent deception generally hold the merchants to their contracts and make little effort to rectify the situation. To its credit, Vericomm does not appear to engage in deceptive advertising strategies on its website.
Vericomm Costs & Contract Terms | F
The standard Vericomm contract (available here as part of the company’s sales rep kit) is a three-year agreement through iPayment with an early termination fee of up to $595, an annual fee of up to $99, a monthly minimum fee of $25, a chargeback fee of $35, a statement fee of up to $15, costly tiered pricing, and, most notably, equipment leases through Northern Leasing/MBF Leasing/Lease Finance Group. The terms of the iPayment contract, which may also include PCI Compliance fees, are essentially the most expensive contract terms offered by iPayment’s processor, First Data.
As a major strike against the company, Vericomm is partnered with Northern Leasing for its equipment leases. Northern Leasing is a known provider of long-term, expensive, non-cancellable equipment leases that cost merchants thousands of dollars for equipment that should cost only a couple hundred dollars. In fact, the sales rep kit linked above mentions that sales reps may sign merchants up for leases of $169.95/month for equipment that shouldn’t cost more than $300. This is an expense of over $8,000 over the life of the non-cancellable contract. The company’s iPayment contract alone would be enough to push the company’s score in this category into the “D” range, but the attendant equipment leases push it into “F” territory.
Vericomm Complaints & Service | C-
We are currently able to locate over 30 Vericomm negative reviews, some of which accuse the company and its leasing affiliate, Northern Leasing, of being a scam or a ripoff. Common complaints include nondisclosure or misrepresentation of fees, difficulty cancelling service, expensive equipment leases, and poor customer service. The official Vericomm responses to many of these complaints insist that the company’s hands are tied when it comes to its equipment leases and early termination fees, and the company usually denies any liability for the verbal guarantees made by its independent agents. This stance does not indicate an emphasis on helpful customer service within the company.
Vericomm BBB Report | B- (CPO Adjusted)
Due to an ongoing review of greater Los Angeles-area companies, a current Better Business Bureau (BBB) profile for Vericomm is unavailable at this time. As of our last review, Vericomm held an “A+” rating with the BBB and obtained BBB accreditation as of 2001. The report showed that the company had received 15 complaints within the previous 36 months, consisting of eight regarding problems with products and services and seven with advertising and sales issues. Out of the total, only five of the complaints were resolved to the merchant’s satisfaction while 10 merchants reported that they were not satisfied with the company’s response. Given the company’s figures at the time of our last update and its performance in other categories of this review, we have adjusted this category to a “B-” for the time being.
Vericomm rates as a substandard merchant services provider according to our rating system. The company’s contract terms through iPayment and Northern Leasing are very expensive, and there are numerous complaints from merchants about Vericomm’s sales team. Strangely, the company is showing a lower-than-expected number of complaints, but the content of the existing complaints is consistent enough to lower the company’s score. Vericomm’s grade may be subject to change once the BBB updates its information on the company.
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