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1st National Processing Review
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Note: As of September 2021, 1st National Processing has had no activity online for many months and no web presence. It appears this company is out of business, and we will no longer be updating their profile. If you have any information to the contrary, please contact us.
A Paysafe/First Data Reseller
1st National Processing is a merchant account provider based in Los Angeles, California. The company appears to be an alternate business name of Paysafe and eProcessing Network, as indicated by the presence of the latter company’s logo on the former 1st National Processing website. However, the website is now down, and there is reason to believe the company is no longer operating or has been absorbed into Paysafe completely. We will continue to monitor the situation and will post updates as needed. If still in business, the company resells both First Data (now Fiserv), Clover, Mynt, and Poynt products. 1st National Processing also has sub-ISOs or other offices located in Anaheim, Beverly Hills, Long Beach, Oxnard, Riverside, Santa Monica, Van Nuys, Las Vegas, Orlando, and Syosset, New York.
1st National Processing Location and Ownership
1st National Processing is a registered ISO/MSP of Wells Fargo Bank, N.A., Walnut Creek, California, and is headquartered at 6399 Wilshire Blvd., Suite 907, Los Angeles, California 90048. Paysafe is located at 30721 Russell Ranch Rd., Suite 200, Westlake Village, CA, 91362. Bijan Kharrazi is listed as the CEO of 1st National Processing.
1st National Processing Review Review Table of Contents
- Costs & Contract: 1st National Processing typically offers a three-year contract through Paysafewith an early termination fee of $250 to $350.
- Complaints & Service: 1st National Processing has received over 30 public complaints.
- BBB Rating: 1st National Processing (as Paysafe) has an “A+” rating and has received 225 complaints and 44 reviews in the past 3 years. The company has been accredited by the Better Business Bureau since 2011.
- Sales & Marketing: 1st National Processing appears to hire independently contracted agents and has received roughly 20 complaints about its sales team.
- Rates & Fees: How Merchants Got The Best Rates With 1st National Processing
1st National Processing Customer Reviews
Here's What Their Clients Say
|Total Online Complaints||30+|
|Live Customer Support||Yes|
|Most Common Complaint||Hidden Fees|
Moderate Complaint Total
We are currently able to locate over 30 1st National Processing complaints, many of which describe the company as a scam or a ripoff. Common complaints include nondisclosure of contract terms, high cancellation fees, difficulty canceling service, poor customer support, and unethical sales practices. Very few of these complaints received rebuttals from the company, although the owner of one of the company’s ISOs responded to several complaints to point out that his office wasn’t responsible for these complaints.
1st National Processing Lawsuits
We have not found any outstanding class-action lawsuits or FTC complaints filed against 1st National Processing. 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 Processing Customer Support Options
Although 1st National’s headquarters in Los Angeles is only mentioned in approximately half of the company’s negative reviews, it is our policy to hold the parent company liable for the conduct of its subsidiaries. This also holds true for iPayment, which likely provides the customer service for 1st National and its ISOs. 1st National Processing claims to offer 24/7/365 technical support, but this may simply refer to the tech support line offered by First Data. At this time, the company falls well short of the top-rated merchant accounts for great customer service.
1st National Processing Online Ratings
Here's How They Rate Online
|Product & Service Complaints||105|
|Billing & Collection Complaints||108|
|Advertising & Sales Complaints||6|
|Guarantee & Warranty Complaints||0|
Note: We have adjusted this company’s BBB rating according to our own standards. To better understand why we adjust BBB ratings, please see our Rating Criteria.
Shared Profile With Paysafe
The Better Business Bureau currently lists 1st National Processing as a DBA of payment, which is now owned by Paysafe. It also maintains several other profiles labeled “1st National Processing.” For the purposes of this section, we will include information featured on Paysafe’s BBB profile. Paysafe has been an accredited company with the BBB since 2010 and is currently showing an “A+” rating with 225 complaints in the past 36 months. This is significantly more than the 24 complaints at the time of our last review. 105 of the complaints were due to a problem with a product or service, 108 were billing or collections issues, 6 were due to advertising or sales problems, and 6 were issues with delivery. Only 92 of these 225 complaints were resolved by the company to the satisfaction of the merchant. The remaining 133 were resolved to the dissatisfaction of the merchant or received no final response.
What Merchants Say
Paysafe has also received 44 informal reviews on its BBB profile, again a much higher number than at the time of our previous review. Only 2 reviews are positive, leaving 42 negative reviews. The most recent review describes difficulty getting out of a contract and hidden fees:
Very untrustworthy. Their agents consistently lie. I was told I had 6 months to get out of contract at no charge. My fault for not realizing it wasn’t in writing. They promised me it would cost me less that my current merchant processor. Well not happy to say they are costing me more. Very hard lesson learned from this experience. Look at all your statements closely. I mean closely! They are billing me rates different than what is in my contract and of course no one can help. Also hidden fees. My fault for being a stressed out business owner during a pandemic who didn’t know any better and didn’t pay closer attention to small details. Guess you can’t trust people at their word. Read and re-read everything they send you. Now they tell me it will cost $7,000 to get out of this crap! Should have known better when they don’t even answer their phone stating their company name.
Businesses who find themselves unsatisfied with their merchant account should take the necessary steps to cancel their account without paying a fee.
A “D” Performance
Given the company’s rapidly increasing complaint total and poor resolution ratio, we have adjusted the BBB’s rating to a “D.”
1st National Processing Fees, Rates & Costs
A Closer Look at The Contract
|Swiped Rate||1.00% - 4.99%|
|Keyed-in Rate||1.00% - 4.99%|
|Virtual Terminal Rate||1.00% - 4.99% + $0.05|
|e-Commerce Service Fee||$10 Per Month|
|Early Termination Fee||$250-$350|
|PCI Compliance Fee||$129 Per Year|
|Equipment Lease Terms||48 Month (locked)|
The standard 1st National Processing Contract is a 3-year agreement through Paysafe with an early termination fee of at least $495, a monthly minimum fee of $14.99, and a long-term, non-cancellable equipment lease. Some of these terms may vary depending on the agent setting up the account and a merchant’s size, business type, and time in business. We also found multiple reports of merchants being signed up for expensive, non-cancellable equipment leases through 1st National, which is concerning when the allegations of slamming are taken into consideration.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, 1st National Processing also dedicates a portion of its website to advertising its virtual terminal and payment gateway services. Those e-commerce services are powered by EProcessingNetwork. The company charges a monthly service fee of $10 per month and a gateway fee of $0.05 per transaction. Additional rates and fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.
Prices Vary By ISO
Some ISOs of 1st National may offer shorter or less-expensive contract terms, so merchants are advised to read all terms carefully and ensure that they understand the fees they will be expected to pay. In general, merchants should not expect the company’s pricing to compete with the cheapest merchant accounts available.
1st National Processing Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||Yes|
|Discloses All Important Terms||No|
Outside Sales Team
1st National Processing appears to use a network of ISOs, sub-ISOs, and other resellers to market its services. This practice has spread complaints about the company across the online profiles of these smaller entities, and only a portion of the overall complaints about the company directly refer to its headquarters in Los Angeles (or, formerly, Calabasas).
Sales Complaints and Deceptive Quotes
We are currently able to locate approximately 20 1st National Processing reviews that accuse the company or one of its subsidiaries of deceptive sales practices, including misrepresentation of rates and fees, aggressive telemarketing, and “slamming.” Slamming refers to a deceptive sales tactic in which a company poses as a merchant’s current processor in order to sign the merchant up for its services, and it is seen as a highly unethical practice within the industry. At the time of our last update, the company advertised rates on its website “starting at 0.15%.” We consider this type of rate quote to be deceptive because it only lists the company’s Qualified rate without mentioning the higher Mid-Qualified and Non-Qualified rates that merchants are likely to receive on the majority of their transactions.
Substandard Sales Practices
Given the volume and content of the company’s complaints, we are currently scoring 1st National a “D” in this category. If you suspect that the company is overcharging you, we recommend seeking a third-party statement audit to find and eliminate hidden fees.
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