Allied Wallet Overview
Allied Wallet May Have Overcharged You
If you accepted credit cards through Allied Wallet or any other credit card processing company between 2017 and 2019, recent changes to the law may entitle you to refunds of certain debit card and credit card processing errors and overcharges. See this post to find out if your were among the businesses affected and to learn how you can get your money back.
An International E-Commerce Payment Processor
Headquartered in London, Allied Wallet is a rapidly growing merchant account provider that specializes in e-commerce payment processing for small to medium sized businesses. 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. Andy Khawaja is the CEO of Allied Wallet.
Allied Wallet Overseas Operations
Allied Wallet claims to service 88 million users worldwide and claimed 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.
Allied Wallet Review Table of Contents
- Costs & Contract: Allied Wallet lists its base rates, but its contract terms will vary depending on the merchant’s country of origin and business type.
- Complaints & Service: Allied Wallet has received more than 35 public complaints.
- BBB Rating: Allied Wallet has an “A+” rating with the Better Business Bureau and has received four complaints in the past three years.
- Sales & Marketing: Allied Wallet has a history of utilizing misleading sales tactics, but it appears to have changed its approach in recent years.
- Rates & Fees: How Merchants Got The Best Rates With Allied Wallet
Types of Businesses Served
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Allied Wallet Rates, Fees, and Costs
|Turnkey Solution Rate||1.00% - 4.99%|
|Enterprise Solution Rate||1.00% - 4.99%|
|Early Termination Fee||Undisclosed|
|PCI Compliance Fee||Undisclosed|
|Equipment Lease Terms||Undisclosed|
Allied Wallet advertises rates as low as 1.0% with the caveat that the “Fixed Percentage and Transaction Fee will vary.” It also mentions on a separate blog post that its fees include a monthly maintenance fee, transaction fee, refund fee, retrieval fee, chargeback fee, wire fee, and a rolling reserve. There is very little verifiable information about the actual figures in the standard Allied Wallet merchant account contract, but it is likely that the company offers a range of contract lengths and pricing options. Allied Wallet handles 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.
Allied Wallet Prohibited Business Types
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 company claims that it cannot serve the following industries:
- MLM (without a tangible product)
- Adult and Pornographic Content
- Body Parts
- Child Pornography
- Cyberlocker Services
- File-Sharing Services
- Money Transfer Businesses
- Money Transmission
- Online gaming or Gambling in the USA (USA Cards must be blocked 7995 MCC)
- Pharmacy: Controlled Substances
- Tech Support
- Tobacco (when sent outside of your country and/or state)
Rates and Fees May Vary
Overall, it is unclear at this time what kinds of contract conditions Allied Wallet offers to the average merchant. 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.Are you happy with your Allied Wallet fees? Tell us about them before your go!
Allied Wallet Complaints & Customer Reviews
|Total Online Complaints||35+|
|Live Customer Support||Yes|
|Most Common Complaint||Fund Holds|
Rising Complaint Total
We are currently able to locate over 35 Allied Wallet negative reviews, some of which 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 a few cases, a company representative responded to complainants and explained why their funds were withheld. There is no indication at this time that Allied Wallet abused its fraud prevention policies in these instances, but high risk merchants are advised to think twice before processing through Allied Wallet. Merchants who have had their funds held also report difficulty resolving the situation quickly through customer support.
Complaints About Resellers
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.
Allied Wallet Lawsuits
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.
Additionally, a lawsuit was filed against the company on May 20, 2019 by the Federal Trade Commission. The suit alleges that Allied Wallet and its officers have knowingly processed payments for merchants engaged in fraudulent business practices and that the company has falsified information on merchant applications. This outcomes of this case is still pending.
Allied Wallet Customer Support Options
Allied Wallet offers 24/7 phone and email support, which far exceeds the standard set by other e-commerce providers. Overall, we are not seeing a complaint volume that would justify a low grade.
Allied Wallet BBB Rating Summary
Key Points - BBB
|Product & Service Complaints||1|
|Billing & Collection Complaints||2|
|Advertising & Sales Complaints||0|
|Guarantee & Warranty Complaints||0|
8/28/2019 Update: At the time of this update, the BBB profile for Allied wallet is not available and the following references the data last available during our last review.
Under 5 Complaints
Allied Wallet has been an accredited business of the Better Business Bureau since 2014 and currently shows an “A+” rating based on 4 complaints filed in the last 36 months. Of these complaints, one was due to problems with the product or service, two had to do with a billing or collection issue, and one had to do with a delivery problem. All four were resolved with BBB assistance.
What Merchants Say
The most recent available complaint details describe an extended fund hold following cancellation:
I closed my merchant account with Allied Wallet in 08/21/2017 with an ending credit balance of $426.81. I was informed by funds would be held for 180 days since my last transaction on 6/13/2017 and then I would receive whatever credit I had on my account. I have contacted Allied Wallet’s finance department by email multiple times with no response. I spoke with the COO Moe Diab on 01/04/2018 via email about receiving my final payout and I was CC’d in an email to the finance department asking to process a payout for me. The finance department has not reached out to me nor has Moe Diab when I sent a follow up email on 01/11/2018.
Merchants who find themselves in this position should consider taking steps to make their processor release their money.
An “A” Performance
Based on the company’s complaint total, we agree with the BBB’s rating at this time.
Truth In Marketing & Advertising
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
Previous Sales Concerns
At the time of an earlier 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.
Fake Colorado DMV Website
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.
Incomplete Rate Quotes
The Allied Merchant website currently lists the pricing for its “Turnkey” solution as “1.0% + 10¢” per transaction. This rate does not appear to be a flat rate for the entire transaction, but rather Allied Wallet’s service fee added on top of each transaction. Farther down the page, the company states that it charges a “fixed percentage and fee for each transaction you take,” but then notes that the “Fixed Percentage and Transaction Fee will vary.” If Allied Wallet truly did offer e-commerce credit card processing for only 1.0% plus $0.10 per transaction, it would be by far the cheapest option available on the market. However, it appears that a number of other undisclosed rates and fees will apply.
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 not found any complaints that describe its marketing approach as deceptive. We have accordingly raised the company’s grade in this section, but it will remain at a “B” until the company sustains a longer period without us finding similar problems. If you suspect that Allied Wallet has misrepresented its pricing to you, we recommend seeking a third-party statement audit to eliminate hidden fees.
Allied Wallet Marketing Example
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.