1st National Processing Review

1st National Processing Overview

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An iPayment/First Data Reseller

1st National Processing (1stnationalprocessing.net) is a merchant account provider based in Los Angeles, California. The company appears to be an alternate business name of iPayment (now Paysafe) and eProcessing Network, and it resells First Data and Clover 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. 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 iPayment with 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 iPayment) has an “A+” rating with the Better Business Bureau and has received 226 complaints in the past three years.
  • 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 Statement Analyzer

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Products & Services Offered

Types of Businesses Served

  • Retail
  • Mobile
  • E-commerce
  • Restaurant
  • Petroleum
  • High risk

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1st National Processing Rates, Fees, and Costs

Key Points

Swiped Rate Variable
Keyed-in Rate Variable
Early Termination Fee $250-$350
PCI Compliance Fee $129 Per Year
Equipment Lease Terms Variable

Three-Year Contract

The standard 1st National Processing contract (available below) is a three-year agreement through iPayment with an early termination fee (ETF) of $250-$350, an iAccess fee of $14.95 per month, a PCI Compliance fee of $129, and other associated fees. 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.

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. See the 1st National Processing Contract.

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Response from 1st National Processing

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1st National Processing Complaints & Customer Reviews

Key Points

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 cancelling 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 (1st National Payment Solutions), responded to several complaints to point out that his office wasn’t responsible for these complaints.

1st National Processing 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.

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Response from 1st National Processing

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1st National Processing BBB Rating Summary

Key Points - BBB

Product & Service Complaints 105
Billing & Collection Complaints 106
Advertising & Sales Complaints 8
Guarantee & Warranty Complaints 0
Delivery Complaints 7

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 iPayment

The Better Business Bureau currently lists 1st National Processing as a DBA of iPayment and groups it with the larger company’s profile, although it maintains several other profiles labeled “1st National Processing.” iPayment is currently showing an “A+” rating despite 226 complaints in the past 36 months, with only 46 of those complaints resolved to the merchants’ satisfaction. These complaints are categorized as eight related to advertising and sales, 105 related to the product or service, 106 due to billing and collection, and seven related to delivery issues.

What Merchants Say

iPayment has also received 38 informal reviews to its profile, six of which are positive and 32 of which are negative. The most recent review describes overcharges and poor customer service:

I don’t know how they have an A+ rating with BBB, maybe because different entities actually do the billing, I get two separate charges from other branchs? just look at the reviews, right now I can’t even get a answer of why my $50 monthly fee went up to $258 for the last two months, while being passed around, one recording tells me to text to a number, and when I want the charges explained, I’ve had to email them.

Merchants who have been hit with sudden fee hikes from iPayment should act now to renegotiate their pricing and lock in lower fees.

A “D” Performance

In light of these figures, we have adjusted the company’s BBB rating to a “D” for the purposes of this review.

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Response from 1st National Processing

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Truth In Marketing & Advertising

Key Points

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. The company also advertises 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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Response from 1st National Processing

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1st national processing

Our Opinion of 1st National Processing

Not a Competitive Option for Most Merchants

1st National Processing rates as a substandard merchant services provider according to all available information. 1st National is either a DBA or an ISO of iPayment, which explains its moderate-to-high complaint rate and below-average contract terms. The company utilizes a large network of sub-ISOs to resell its services, many of which go by different business names. It should also be noted that the company spells its name as “1st National Processing” rather than “First National Processing.” 1st National Processing also should not be confused with 1st National Payment Solutions. Merchants are encouraged to research which companies they’re dealing with and to compare their pricing to the top-rated merchant accounts.

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Thank you for reading my review. I hope that it has helped you with your research.

My Qualifications

I'm a former credit card processing sales director who left the industry to start my own a small business. From the time that I starting working in the merchant services industry to when I left to write about it, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this insider knowledge to myself, so decided to build this website to help you research which providers to use and how to save money on rates and fees. 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 here. Simply scroll to the top of the page to find the search bar. You can also message me if you need any guidance.

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2 Reviews Leave Your Review for 1st National Processing Below

  1. Kerensa Bertolino says:

    Run away as fast as you can. We just got hit with a brand new, unannounced $100 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 and they will not be refunding these fees to any of the customers. When I called Woodforest 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. 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 always 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 $300 kick-out fee.

  2. Anne Jansen says:

    There is not enough room to adequately express the issues with this company. It’s a scam, they are rude, they put you in touch with their fast talking east coast guy when you are not satisfied with the lower level canned answers you get from their less than helpful “reps” as they call themselves. You never know where you are calling, who you are actually talking to, and they keep charging your bank account even after you call to cancel the account. I had to call twice, once over a month ago, and then now again, but they conveniently stateed that they don’t have any notes int he system of my first call to cancel. I don’t use the machine because I use Square or Intuit where there are no PC compliance fees or any other hidden costs that are being charged to me by 1st national. I’ve been out of contract with them and don’t use the machine (that I own), but in talking with them, they couldn’t justify why they charged me over $152.00 in the last two months? It’s a scam. They put you on hold and pass you to different people in hopes that you will simply hang up and then another month passes and they charge you some more money that they can’t justify. They are stealing from unsuspecting small business owners like myself. It’s sinful. Their BBB rating, and numerous complaints certainly justify my comments here, but 1st national can’t seem to justify anything. What does that tell you about this company??? These companies are preying on people that don’t realize the alternatives that are available in today’s high tech world for accepting credit cards. I wish somehow this company could be shut down once and for all.

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