1st National Payment Solutions Overview
1st National Payment Solutions May Have Overcharged You
If you accepted credit cards through 1st National Payment Solutions or any other credit card processing company between 2017 and 2019, recent changes to the law may entitle you to refunds of certain debit card and credit card processing errors and overcharges. See this post to find out if your were among the businesses affected and to learn how you can get your money back.
Offering Merchant Services Since 1998
1st National Payment Solutions, established in 1998, is a family owned merchant account provider headquartered in Syosset, New York. The company is a sub-ISO of 1st National Processing, which is either a DBA or an ISO of iPayment.
Based in New York
1st National Payment Solutions is a registered ISO/MSP of Woodforest National Bank in Houston, Texas, and is headquartered at 40 Underhill Blvd., Ste. 2G, Syosset, New York 11791. The company also has a Michigan-based office located at 9991 East Cherry Bend Rd. in Traverse City. Michael DiGiovanni is listed as the president and CEO of 1st National Payment Solutions.
1st National Payment Solutions Review Table of Contents
- Costs & Contract: 1st National Payment Solutions offers one- to three-year contracts through Woodforest and iPayment with varying terms.
- Complaints & Service: 1st National Payment Solutions has received fewer than 10 public complaints.
- BBB Rating: 1st National Payment Solutions has an “A+” and has received 4 complaints and 1 review in the past 3 years. The company has been accredited by the Better Business Bureau since 2006.
- Sales & Marketing: 1st National Payment Solutions appears to hire independent sales agents and has received only one complaint related to its sales team.
- Rates & Fees: How Merchants Got The Best Rates With 1st National Payment Solutions
Types of Businesses Served
- High risk
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1st National Payment Solutions Rates, Fees, and Costs
|Swiped Rate||1.00% - 4.99%|
|Keyed-in Rate||1.00% - 4.99%|
|Virtual Terminal Rate||1.00% - 4.99%|
|Payment Gateway Fee||Undisclosed|
|iAccess Fee||Up to $14.95 Per Month|
|Early Termination Fee||$350+|
|PCI Compliance Fee||Undisclosed|
|Equipment Lease Terms||48 Months (locked)|
Two Merchant Account Types
The 1st National Payment Solutions website provides a number of important documents, including the company’s contracts and equipment lease. 1st National offers two kinds of merchant accounts, which can last for one, two, or three-year terms. This 1st National Payment Solutions contract is an agreement through iPayment, includes an early termination fee that can range from $250-$350, an iAccess fee of $9.95-$14.95, and a variable PCI Compliance fee. The second agreement, which is through Woodforest National Bank, is an automatically renewing contract with a Liquidated Damages early termination fee. Although neither document lists the company’s specific rates, it is reasonable to assume that these figures may vary based on a merchant’s size, business type, and time in business. Additionally, 1st National’s standard lease agreement is non-cancellable.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, 1st National Payment Solutions also dedicates a portion of its website that advertises its virtual terminal and payment gateway services. However, pricing on either of those services is not disclosed. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.
The primary factors lowering the company’s grade in this category are its use of iPayment’s services and the inclusion of a Liquidated Damages clause in its Woodforest Bank contract. This clause states that the merchant’s early termination fee will be either $250 per location or a total equal to the merchant’s average monthly fees multiplied by the remaining months in the contract, whichever is greater. This figure has the potential to be very high. Although 1st National scores points for providing these contracts for all merchants to see on its website, the actual terms therein are worthy of a “C” grade at this time and do not compare favorably to the cheapest merchant accounts.
1st National Payment Solutions Contract Terms
A company representative has stated in the comment section of this review that the company’s early termination fee only applies to merchants who receive free equipment upon signup and it can be waived for other merchants. In addition, the same representative stated that the company’s contract through Woodforest only charges a flat $5 monthly fee and does not include any other monthly, annual, or PCI compliance fees.Are you happy with your 1st National Payment Solutions fees? Tell us about them before your go!
1st National Payment Solutions Complaints & Customer Reviews
|Total Online Complaints||<10|
|Live Customer Support||Yes|
|Most Common Complaint||N/A|
Low Complaint Total
We are currently able to locate a handful of negative 1st National Payment Solutions reviews, two of which accuse the company of being a ripoff or a scam. These complainants report difficulty cancelling service, poor customer service, fund holds, and equipment issues. Two of the complaints are over three years old, while another complaint was posted in 2011 and referred to issues that took place even before then.
The president of 1st National was active in responding to several complaints and appeared to resolve the customers’ issues after an extended period of time. He attributed the delay to organizational holdups related to the need to have multiple higher-ups sign off on a refund. He also appears to have posted on numerous other reviews filed against 1st National Processing for the sole purpose of clarifying that his ISO of the company was not the party in question.
1st National Payment Solutions Lawsuits
We have not found any outstanding class-action lawsuits or FTC complaints filed against 1st National Payment Solutions. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
1st National Payment Solutions Customer Support Channels
The 1st National Payment Solutions website lists a dedicated customer support phone line, but this channel is not sufficient to qualify the company as a top-rated payment processor for customer service. After taking into consideration the age of the complaints, their delayed resolutions, and the effort made by the company’s CEO, we have awarded 1st National a score of “A” in this category.
1st National Payment Solutions BBB Rating Summary
Key Points - BBB
|Product & Service Complaints||0|
|Billing & Collection Complaints||4|
|Advertising & Sales Complaints||0|
|Guarantee & Warranty Complaints||0|
Under 10 BBB Complaints
1st National Payment Solutions has been accredited with the Better Business Bureau since 2006. As of this review, the company has an “A+” rating with the BBB and has had 4 complaints filed against it in the last 36 months. All 4 complaints were related to billing and collection and were either resolved to the dissatisfaction of the merchant or did not receive a final response from the merchant.
What Merchants Say
In addition to the 4 complaints posted to the company’s BBB profile, 1st National Payment Solutions has received 1 negative informal review. The review details difficulty closing the merchant account:
Run away as fast as you can. We just got hit with a brand new, unannounced $99 annual fee. The money has already been taken from our bank account and they refuse to return it. There was no letter, no email, no bank statement announcement notifying us of the new fee. They say they sent out a letter a month ago, and that’s the end of it. The fact that we never received such a letter means nothing. They say that they looked at their costs and decided that they needed to charge a fee, so they just did it. The guy was quite nasty about it, and told me there was nothing I could do about it, they have the money and they’re not giving it back. The service rep stated that they have received many calls of complaints about this and they will not be refunding these fees to any of the customers. When I called ********** Bank, whom they use, the bank transferred my call right back to 1st National’s office. I got the same jerk on the phone. In the past, I’ve never been treated this way by them, and their reps have behaved decently. This guy was over the top nasty. 1st National Processing targets artisans and microbusineses in their advertising, which is we how came to use them several years ago. They have since changed the “Processing” to “Payment Solutions”, but they’re still the same people. At the end of each year, we did cost comparisons of total annual charges, to see what we would have paid had we run cards through PayPal or Square. 1st National always came in higher, but with human customer service, we stayed with them. That changed this past January. It is now mid-November. We kept 1st Nat as a backup, but have not used them more than once or twice since January. There were just too many times when we had to call because there were unexpected and confusing charges. Those were generally resolved, but we got tired of it, and when they mistakenly charged us for one of their other customer’s fees, we were done. We saw that customer’s info on our statement. It’s a security breach. It’s cheaper to let our contract die off than pay their extortionate $295 kick-out fee.
Merchants in similar situations could benefit from researching how to cancel a merchant account without paying a fee.
An “A” Rating
1st National Payment Solutions also has not received any informal reviews, although it should be noted that these reviews may ore may not be subject to verification by the BBB. Given the company’s complaint total, we agree with the BBB’s rating at this time.
Truth In Marketing & Advertising
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||Yes|
Independent Sales Agents
1st National Payment Solutions appears to utilize a referral program, strategic partnerships, and independent sales entities to market its services. The use of independent sales agents is usually tied to high complaint rates for a company, but we are currently able to locate only one National Payment Solutions complaint that describes misrepresentation of pricing. This review is found in the comment section below and could simply have been a misunderstanding.
No Deceptive Advertising
As an additional point in the company’s favor, it does not appear to engage in deceptive advertising strategies in its official materials. We will therefore assign 1st National Payment Solutions an “A” rating in this category for the time being. If you suspect that 1st National Payment Solutions is charging you undisclosed fees, however, we recommend seeking a free third-party statement audit.
1st National Payment Solutions Marketing Example
About Phillip Parker
Thank you for reading my review. I hope that it has helped you with your research.
Why I'm Qualified to Write About Credit Card Processing and Merchant Account Services
I'm a former credit card processing sales director who left the industry because I didn't like how it takes advantage of small business owners. It feeds like a leech on businesses and thrives by imposing fees that are nearly impossible to comprehend. Seeing a need for change, I left and built this website help business owners better understand the industry, research merchant services providers, and get refunds of excessive merchant account fees. My experience of working "behind the curtain" in the industry, and using that knowledge for good, has resulted in millions of dollars returned to hard-working small business owners as well as enterprise-level companies.
From the time that I starting working in the merchant services industry to when I left to create this website, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this "insider" knowledge to myself. To lift the fog, I've reviewed hundreds of companies, read thousands of user reviews, and learned the pricing tricks of every provider. If you have questions about credit card processing, you can find the answers on this website.