1st National Processing Overview
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 1st National Processing website. The company resells both First Data, 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. 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 24 complaints and 7 reviews in the past 3 years. The company has been accredited by the Better Business Bureau since 2010.
- 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
Types of Businesses Served
- High risk
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1st National Processing Rates, Fees, and Costs
|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 that advertises 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.Are you happy with your 1st National Processing fees? Tell us about them before your go!
1st National Processing Complaints & Customer Reviews
|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 BBB Rating Summary
Key Points - BBB
|Product & Service Complaints||15|
|Billing & Collection Complaints||7|
|Advertising & Sales Complaints||1|
|Guarantee & Warranty Complaints||0|
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 feature on Paysafe’s BBB profile. Paysafe has been an accredited company with the BBB since 2010 and is currently showing an “A+” rating with 24 complaints in the past 36 months. 15 of those complaints concern problems with a product or service, 7 address billing or collections issues, 1 is related to an advertising or sales dispute, and 1 addresses a delivery issue. Paysafe has resolved 2 of the 24 complaints while the remaining 22 have been resolved to the dissatisfaction of the merchant or are still awaiting a reply.
What Merchants Say
Paysafe has also received 7 informal reviews on its BBB profile, 6 of which are negative, making only 1 positive. The most recent review describes a multitude of issues from deceptive sales practices to unexpected fees, ultimately calling the company’s rating with the BBB into question:
This review is for Paysafe Merchant Service provider. The company is an absolute SCAM. 1. They charge you much more that you agreed, you will be buried in hidden and unexpected fees. 2. They constant lie, starting with the sales rep, ending with every call center representative. I caught them so many times on lies. 3. They unlawfully withheld some of my transactions, not paying them out to me, telling lies about the reason why (I have proof). 4. They signed me up for a bunch of services that they call free, and guess what, I started to get billed monthly by all of them shortly after. 5. You will spend hours and hours on hold with their support, who would NEVER SOLVE ANYTHING over the phone. They always say they need to contact some other department and they will get back to you within the next 24-4 hours. And they never do, as the issues are never solved either. The easiest way to get out of all this mess is to close your bank account. I URGE BBB TO REEVALUATE THE A+ RATING OF THIS FRAUDULENT AND UNETHICAL COMPANY.
Businesses who find themselves this unsatisfied with their merchant account should take the necessary steps to cancel their account without paying a fee.
An “A” Performance
In light of the low complaint total and resolution ratio of Paysafe, we agree with the company’s BBB rating of an “A” for the purposes of this review.
Truth In Marketing & Advertising
|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.
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.