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Allied Wallet Credit Card Processing Reviews & Complaints

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Maintained Since: October 21, 2013

We take our role in providing guidance and education regarding the card payment industry very seriously. At our own expense, we have vigorously defended our right to continue expose unethical and predatory practices in the industry, successfully defeating every attempt to silence us. However, fending off frivolous lawsuits is costly. To sustain these efforts, one of the ways we generate revenue is through affiliate partnerships with ethical providers. This means that some of our outgoing links connect business owners to trustworthy, low-cost payment processors, which is what most of our readers seek. We see this revenue channel as a win-win-win for everyone involved. Business owners find good processors, processors get good clients, and we are able to continue to provide a valuable service to the small business community. We also recommend and link to many services that do not compensate us. Our priority is to guide you to the best solutions for your needs, regardless of potential revenue. If you have questions, please feel free to contact us.

All mentions of rate and fee costs are estimations based on publicly available information and client feedback. Actual costs may vary based on a variety of factors unique to your business.

Allied Wallet
Rating
F
1/5
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Pros

Quick account setup
Accepts major credit cards
24/7 Support
E-commerce tools
PCI DSS compliant

Cons

Uncertain future, liquidation
Unreliable, insecure service
Unexplained charges
Poor customer service
Hidden cost possible

Note: After the 2019 FTC judgment against Allied Wallet and the 2020 arrest of their CEO, there are claims that they are out of business. However, they maintain their web presence, meaning there may still be some form of the company in operation. Because of this, we will maintain this review for now.

Company Overview

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 (Fiserv) as its processing network but may also be partnered with other international companies and banks. Allied Wallets' services include payment gateways, POS systems, e-wallets, ACH processing, e-commerce solutions, and PCI compliance.

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 the Chinese renminbi online, which has helped it to secure a large foothold in the growing Chinese e-commerce market.

Allied Wallet’s Point-of-Sale Solutions

Designed with user-friendliness in mind, Allied Wallet offers robust Point-of-Sale (POS) solutions. These systems support an array of payment options, enabling businesses to provide their customers with flexible and convenient payment choices. The POS systems are equipped with additional features like sales tracking and inventory management, streamlining business operations.

Mobile Payment Services by Allied Wallet

Understanding the evolving needs of the market, Allied Wallet offers a mobile payment solution. This allows businesses to accept payments on the go, ideal for mobile or field-based businesses. Utilizing a card reader and a mobile app, businesses can process payments easily and securely anywhere, anytime.

Allied Wallet’s eCommerce Payment Gateway

Allied Wallet offers a secure eCommerce payment gateway for businesses with an online presence. This feature allows the seamless integration of the payment platform into an existing website. The gateway can process a wide variety of payment methods, enhancing the online shopping experience for customers while ensuring transaction security.

Allied Wallet payment processing
Allied Wallet offers a variety of payment processing services

Customer Reviews & Sentiment

Rising Complaint Total

We are currently able to locate over 35 negative Allied Wallet reviews, some of which accuse the company of being a scam or a ripoff. The most common issue cited among Allied Wallet complaints 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 businesses are advised to think twice before processing through Allied Wallet. Businesses who have had their funds held also report difficulty resolving the situation quickly through customer support. If you have your own Allied Wallet review to make, please do so in the comments below.

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, clients may have some trouble determining which entity they should contact for customer service.

Allied Wallet Lawsuits and Fines

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.

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 businesses engaged in fraudulent business practices and that the company has falsified information on merchant applications. The suit goes so far as to allege that Allied Wallet’s agents would instruct clients on setting up shell companies and best practices to hide their risky activities. Allied Wallet settled in 2019 with the following terms (via FTC.gov):

“The stipulated final orders regarding Khawaja, his four corporations that do business as Allied Wallet, and Allied Wallet’s former VP of Operations, Amy Rountree, prohibit them from processing payments for certain types of merchants, including sellers and marketers of money making opportunities and debt collection services. The orders impose stringent screening and monitoring requirements on payment processing for certain other categories of merchants to ensure proper screening and vetting by Allied Wallet, Khawaja, and Rountree.

The order against Khawaja and his companies, AlliedWallet, Inc., Allied Wallet, Ltd., GTBill, LLC, and GTBill Ltd., imposes a $110 million equitable monetary judgment. After Khawaja turns over a residence in Los Angeles, California, the remainder of the judgment will be suspended due to inability to pay.

The order against Rountree [Amy Rountree, an Allied officer] imposes a $320,429.82 equitable monetary judgment that is suspended due to inability to pay.

The stipulated final order against Diab, who was Allied Wallet’s Chief Operating Officer, permanently bans him from payment processing and requires him to pay $1 million to the FTC in equitable monetary relief.”

2020 also saw Allied Wallet’s lawyer plead guilty to fraud and campaign finance charges in connection with Allied Wallet. The lawyer was sentenced to a short prison sentence for funneling more than $6 million in campaign contributions from Allied Wallet CEO Khawaja as well as for being part of a scheme to scam Fifth Third Bank into processing more than $5.4 million in fraudulent card payments for Allied.

In connection with the above legal actions, Khawaja allegedly fled the US to Lithuania, where he was arrested amid a flurry of apparent multimillion-dollar transactions and carrying a large amount of money on his person. Khawaja was held until extradition could be completed. It is unclear what Khawaja’s status is at this time, which is probably at least in part to do with the worldwide pandemic of 2020 and beyond and partly to do with the high-profile nature of the case, which has become something of a posterchild for the crackdown on processors.

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.

Allied Wallet Customer Service Numbers

  • (888) 255-1137 – Toll-Free Customer Support
  • +44 (0)203 655 2121 – UK Support

Other Support Options

  • Customer support form

Industry Scores & User Ratings

Online Ratings Summary
BBB RatingN/A
Trustpilot Rating2.2
Average Rating2.2

Allied Wallet BBB Rating Analysis

Allied Wallet  an internet service company, is not accredited by the Better Business Bureau (BBB). The BBB page for Allied Wallet does not display a rating for the company. Additionally, there are no customer reviews or complaints listed on their BBB profile.

Negative Feedback

There are no negative reviews published about Allied Wallet on the BBB website.

Positive Feedback

There are no positive reviews published about Allied Wallet on the BBB website.

Source: BBB

Trustpilot Rating Analysis for Allied Wallet

Allied Wallet has an average customer review rating of 2.2 stars on Trustpilot, based on 8 customer reviews. The reviews overwhelmingly reflect negative experiences, with most of the ratings being 1-star. Common themes in the reviews include issues with fund holds, unexplained chargebacks, and poor customer service.

Negative Feedback

Allied wallet hold funds for ages, they then add processing fees that are just made up and rob your money. – Review from February 14, 2023.

Be careful they closed my account, and sent me proof of chargebacks, that never existed. They were supposed to reverse our funds since 6 months passed, but now got email that they will not send our funds because Alliedwallet got suspended their FCA! Pass your way, and don’t cooperate with this company that stole thousands of company’s! – Review from June 16, 2019.

Positive Feedback

There are no positive reviews published about Allied Wallet on the Trustpilot website.

Source: Trustpilot

Processing Rates & Fees

Fixed-Rate Pricing

Allied Wallet advertises rates as low as 1.0% plus $0.10 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 business’ 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:

Rates and Fees May Vary

Overall, it is unclear at this time what kinds of contract conditions Allied Wallet offers to the average client. 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 Allied Wallet review.

allied wallet approved businesses
Approved businesses that Allied Wallet serves.

Allied Wallet Competitors

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Bottom Line

Considering the spectacular level of illegal activity that Allied Wallets has been convicted of in the credit card processing space, we have downgraded them from a decent international option to one of the worst processors in the industry, if they are even still in business in any capacity. It is likely that more negative news will come out in the next few years about Allied Wallets, what with the arrest of its CEO. It is abundantly clear that the business is not to be trusted in any regard. In nearly all cases, businesses will be better served by working with a top-rated merchant account provider.