1st National Processing Review

1st national processing
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How did they treat you? ▼

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

Customer Reviews Summary
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

Online Ratings Summary
Product & Service Complaints 105
Billing & Collection Complaints 108
Advertising & Sales Complaints 6
Guarantee & Warranty Complaints 0
Delivery Complaints 6

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

Cost & Fees Summary
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)

Three-Year Contract

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?

Jobs & Marketing Summary
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.

Our 1st National Processing Review Summary

Our Final Thoughts

No Longer in Business

1st National Processing rated as a substandard merchant services provider according to all available information, but it appears to be no longer in business. 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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Which is Most Important for You?

If you had to pick one, which quality would you say will be the most important with your next credit card processor? Tap or click your selection to register your vote:

  1. Low Transaction Fees
  2. No Monthly Fees
  3. No Contract
  4. Reliable Customer Support
  5. Quick Signup

Testimonials & Complaints

How Did 1st National Processing Treat You?

7 User Reviews

  • Wendy

    I “settled a debt” from an old credit card for the original capital amount and was happy for the opportunity to do so. The payment code on my bank statements shows that it was paid to 1st National. I am now getting sued by Wells Fargo for delinquency which I paid to resolve two years ago. I doubt I’ll have any luck with this in court and am very frustrated.

  • Linda Rutherford

    On my bank statement of payment shows as 1ST PROCESSING 888712324 10/11/2021 PURCHASE 951-2683997 CA the company name that contacted me is Midland Group and Associates phone number 844-530-1546 names of the people I talked with is Michael ex 315 he transferred me Rachel ex 303 for collection of $800.00 for Capital One. I paid it back in 2017 but I don’t have proof of payment. Here is the receipt #First Fincial Bank approval 142112 docusighn David Anderson [email protected] Docusighn ENV.ID OB58857A-A5D3-46FS-8F8D-9F9F0748D341 . I know I will not get back my 800.00 dollars nor the copy of payment. I wish that you could stop them from doing this to people like me inn their sixty’s and living on a fixed income for that seems to be their target or close this company completely down .

  • Linda Rutherford

    Here’s the merchant information for 1st processing 951-2683997. 888712324 shows up on my bank account where they show I paid they scam people out of money cause they can not show proof that they paid capital one off

  • Linda Rutherford

    1st processing is still in business as midland group associates they are a scam company working for capital one, collecting money from customer who paid off capital one, if you don’t have your receipts showing you paid they threatened you they’ll take you to court for they claim to be a law firm


    After 2 cancellation request, to date my account has not been closed and I’m still getting charge fees. I believe a class action lawsuit maybe the best avenue to deal with this company poor business practices.

  • Kerensa Bertolino

    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.

  • Anne Jansen

    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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