Allied Wallet Review

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Category Breakdown
Sales & Marketing rated C
Costs & Contract rated B
Complaints & Service rated B plus
BBB Rating rated A

Overall Rating

B Credit Card Processor Rating


Overview

Headquartered in London, Allied Wallet (alliedwallet.com) is a merchant account provider that specializes in e-commerce and has grown rapidly in the last two years. The company, which was founded in 2002, appears to utilize First Data as its processing network but may also be partnered with other international companies and banks. Allied Wallet claims to service 88 million users worldwide and expects to process $55 billion in 2013, but the company has received very little coverage in the U.S. and is not showing very many reviews online. This is likely due to the fact that Allied Wallet appears to operate most heavily in Asia (specifically Russia and China) and the UK. In fact, Allied Wallet was the first company to win the international rights to transact renminbi online, which has helped it to secure a large foothold in the growing Chinese e-commerce market. Andy Khawaja is listed as the CEO of Allied Wallet.

Allied Wallet reached a civil settlement with the FBI in 2010 for a sum of $13.3 million, which the FBI had seized in an online gambling raid. According to the FBI, Allied Wallet knowingly partnered with a Scottsdale, Arizona-based bank to process offshore wire transfers and other payments related to gambling through an Isle of Man company called Pokerstars. Allied Wallet forfeited the total amount seized by the FBI and has not been cited for similar illegal activity since the ruling.

Allied Wallet Products and Services Industries Served
  • E-commerce
  • International

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Sales & Marketing | C

Key Points – Sales & Marketing
Uses independent resellers? Yes
Promotes deceptive rate quotes? No
Discloses all important terms? No

At the time of our last update, Allied Wallet was engaging in two sales strategies that we considered very deceptive. The first issue we found was a large number of online articles and blogs seemingly built for the sole purpose of showing up in search results for “Allied Wallet” plus the words “scam” or “ripoff.” The problem was that most of these blogs didn’t actually make a legitimate effort to determine whether the company is a scam or a ripoff, which indicated to us that someone was attempting to absorb traffic for those searches and possibly suppress actual complaints. The second issue we found was that Allied Wallet appeared to be operating a website designed to look like that of the Colorado DMV. The website, which had a “.org” domain, contained language specifying that it was privately owned and was not affiliated with the DMV, but this text was not featured prominently, especially when compared to the large, linked text encouraging visitors to renew or replace their driver’s licenses through the website. The site charged visitors $14.95 to renew or replace their licenses and was not shy about collecting visitors’ credit card numbers. At the very least, it appeared to be at the very least an attempt to dupe unsuspecting visitors into paying Allied Wallet unnecessarily for a service that is actually provided by the government.

Since that update, Allied Wallet appears to have abandoned both strategies. The articles for “Allied Wallet scam” and “Allied Wallet ripoff” have dropped out of search results for the most part, and the fake Colorado DMV website is no longer active. We have accordingly raised the company’s grade in this section, but it will remain at a “C” until the company sustains a longer period without us finding similar problems.

Allied Wallet Marketing Example

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Costs & Contract | B

Key Points – Costs & Contract Terms
Swiped rate: Variable
Keyed-in rate: Variable
Termination fee: None
PCI compliance fee: Variable
Equipment lease: Variable

There is very little verifiable information about the standard Allied Wallet merchant account contract, but it is likely that the company offers a wide array of potential rates and fees to its clients. Allied Wallet appears to handle electronic transactions in multiple countries and for many different business types, so costs may vary depending on a merchant’s size, business type, country of operation, and time in business. There is a lot of evidence at this time that Allied Wallet provides high risk merchant accounts and offshore merchant accounts, which may explain why most of the available complaints about the company cite fund holding or account freezes. The Allied Wallet website quotes rates “as low as 1.95%,” which is almost certainly the company’s “Qualified” rate and is not representative of the average processing fee a merchant will pay. Overall, it is unclear at this time what kinds of contract conditions Allied Wallet offers to its merchants. If you have any specific knowledge of the company’s standard contract (including early termination fees, PCI Compliance fees, monthly minimums, etc.), please share that information in the comment section of this review.

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Complaints & Service | B+

Key Points – Complaints & Service
Total complaints: 10+
Live customer support: Yes
Most common complaint: Fund holds

We are currently able to locate over 10 Allied Wallet negative reviews that accuse the company of being a scam or a ripoff. The most common issue cited among complainants is fund withholding by Allied Wallet, and this often appears to be related to high risk merchant accounts provided by the company. In many cases, a company representative responded to complainants and explained why their funds were withheld, and there is no indication at this time that Allied Wallet was abusing its fraud prevention policies in these instances.

Another issue cited by complainants is the fact that they found themselves in an agreement with Allied Wallet without knowing that they had signed up for service through the company. Allied Wallet appears to use a number of subsidiaries and strategic partners to sell its services across the globe, and these smaller entities are likely under no obligation to transparently advertise that they are affiliated with Allied Wallet. Because of this, merchants may have some trouble determining which entity they should contact for customer service. Overall, though, we are not seeing a complaint volume that would justify a low grade, although merchants are advised to be cautious given Allied Wallet’s grade in the Sales & Marketing Tactics section of this review.

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BBB Report | A*

Key Points – BBB Report
Product/service: 1
Billing/collection: 1
Advertising/sales: 1
Guarantee/warranty: 0
Delivery: 0

Allied Wallet is not an accredited business of the Better Business Bureau and currently shows an “A+” rating based on three complaints filed in the last three years. Of these complaints, one was due to problems with the product or service, one had to do with a billing or collection issue, and one was related to advertising or sales. Two were resolved with BBB assistance, while one was resolved to the dissatisfaction of the merchant. Allied Wallet is also showing three negative reviews in the BBB’s review section, one of which received a response from a company representative. Based on the company’s complaint total, we have adjusted the BBB’s rating to an “A.”

* Denotes CPO-adjusted BBB score

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Bottom Line


Allied Wallet Review

Rated 3.6 out of 5 Stars
Reviewed by Phillip Parker
Reviewed on 2015-05-20

Allied Wallet’s grade has improved since our last review. The company appears to have dropped some of its more questionable marketing tactics and has reduced its number of BBB complaints. It is not showing a high volume of complaints online and appears to do most of its business outside of the U.S for the time being. At this point, we still have some reservations about recommending the company, but there isn’t a sufficient complaint volume to recommend against it.

This review was originally published on 4/20/12 and was last updated on 5/20/15.

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6 comments

  1. John

    Alliedwallet is rubbish I can’t even log in with the password that was sent to me. I have even clicked forgot password but didn’t get a new one sent. Now the item g ordered gap been cancelled by the seller because they didn’t receive payment.

  2. Artem

    Wondering I haven’t read these comments earlier!

    Same story with our processing as above.
    We have been processing for 2 month. Funds were released properly, however processing was low.
    As soon as we pushed the volume up and in a week they should have settled us proper amount of money, we received and email from Moe Diab about the Chargebacks ration going high and we should pay attention on this or they will have to fine us $100 per Retrieval, not Chargeback.
    All the retrieval reports requested by AW were properly sent with overloaded volume of information necessary for CBs fight. No one report has been reviewed and in the end of the months Moes notification came.
    Just next day we had a notice, that due to Fraud reports they have to terminate our accounts and money will be held for 180+ days due to investigation and possible disputes payouts.
    Now they held settlement 36.000 GBP + 8.000 GBP holdback.

    Customers support in this Cowboys office is simply missing! Never replied to our mails of requests. Only one person I can consider as a reliable there is Derek Baehr, IT support. Replies immediately to any issue discussed on skype.

    Well, my suggestion is not to go for them and if happens, take the issue to the lawyers to try to blame them.

  3. Hussain B

    Very Funny!!

    A much over disaster experience with Allied Wallet.
    After reviewing and agreeing with the terms they have, my funds were holded for initial 90 days as a matter of high risk.
    I kept on enquiring about funds release date and then was informed about the first release date i.e. 24th Dec’14 as per 90 days initial holding.
    It was not done and was informed that they have found some wrong transactions and the number of chargebacks are more.
    I agree it was however, the reason of holding the funds for initial 90 days was given for the same reason due to high risk account.
    I didn’t get my payout and due to insecurity, I stopped transacting. It was then informed to me that in order to get a payout I should keep transacting and show a active processing however, my question is, if you are not releasing the funds on time as promised, why we should keep on transacting the amount.
    These guys have many reason to hold the money for 180 days and use it.

    Very bad experience and this is for the first time. I have signed up with other merchant provider which is far better then Allied Wallet.

  4. chris c.

    After sending several transactions during 2 weeks, our account was around $5,000 usd. They missed the first and the second scheduled payment date, and then they said the account was suspended, and that they were not able to release the payment if we didn’t continue to send transactions.

    After a phone call with the COO, he decided to cancel our account and release the payment after 6 months.

    “Hello Chris,

    Please note that we cannot release funds on any account that is not actively processing, you will need to process the volumes you requested on the application when you opened the account and it needs to be continuous without any interruption in order to receive weekly payouts, we cannot release otherwise.

    Best Regards,
    Moe Diab – COO

    [Customer Service] 888-255-1137 | [Direct Phone] 310-424-5495 Ext 5005 | [Mobile] 818-967-7485| [Fax] 480-304-3434|

  5. Keith Woolley

    Hi,

    I read your article with interest.

    For the past month I have been applying to open a merchant account with the UK arm of Allied Wallet.

    Terms were agreed, rates were agree and paperwork signed and returned. I have apparently been dealing with both the UK I have been dealing with a Steve Wilson Managing Director, Allied Wallet Europe and Lewis ClarkUK & European Business Development Manager, Allied Wallet Europe – so both of them should know their jobs?

    This isn’t a new application – we have been communicating for a month, and all business information has been supplied to Allied Wallet and their Risk Assessment team.

    We agreed a card processing fee of 2.9 percent plus a 30p per transaction fee.

    Forms were signed and returned to Allied Wallet.

    Even as of yesterday, I was promised that the account would be live by 4pm.

    Then today was the “bombshell”. I was asked – “Did you sign the termsheet with the new rate of 7% + £0.30p on?

    Well no – I signed the terms sheet with 2.9 percent on plus 30p

    This new term sheet had never been sent to me.

    I am now presented with a take it or leave it?

    Have any other members been held to ransom by Allied Wallet just before their website was to go live?

    1. Robert

      Hi,

      I am currently applying with them. They told me that it will be up in about 48 hours. Can you tell me more about your experience?

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