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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.
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.
Location & Ownership
Allied Wallet does not list its backing banks. Andy Khawaja is the CEO of Allied Wallet. Allied Wallet lists Bockenheimer Landstraße 2-4 60306 Frankfurt, Germany as its “German Support Office” address, while the BBB lists an American address at 7525 E Camelback Rd Ste 208 Scottsdale, AZ 85251-3550.
Table of Contents
- Costs & Contract: Lists its base rates, but its contract terms will vary depending on…
- Complaints & Service: Complaints number more than 35 on…
- BBB Rating: Has no rating with the Better Business Bureau and has received 0 complaints in…
- Sales & Marketing: Has a history of utilizing misleading sales tactics, but it appears to…
Allied Wallet Reviews and Complaints
Here's What Their Clients Say
Total Online Complaints
Live Customer Support
Most Common Complaint
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 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. 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, merchants 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 merchants 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 2020-2021 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 Service Options
Allied Wallet offers 24/7 phone and email support, which far exceeds the standard set by other e-commerce providers.
We have located multiple Allied Wallet customer service phone numbers:
(888) 255-1137 – Toll-Free Customer Support
+44 (0)203 655 2121 – UK Support
Allied Wallet also offers a customer support form on its website.
Allied Wallet BBB Rating and Report
Our Better Business Bureau Profile Assessment
See Which Processors Offer No Monthly Fees And No Contracts.
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.
Allied Wallet was an accredited business of the Better Business Bureau since 2014, but the BBB has revoked their accreditation with the following note:
“On 12/16/2020 this business’s accreditation in the BBB was revoked by the BBB’s Board of Directors due to failure by the business to adhere to the BBB requirement that Accredited Businesses meet and abide by the following standards:
1. Establish and maintain a positive track record in the marketplace.
1C. Be free from government action that demonstrates a significant failure to support BBB ethical principles in marketplace transactions (this requires a determination by BBB as to the nature of any violation, whether it was caused or condoned by management, and actions taken to resolve underlying issues that led to the government action).
6B. Make a good faith effort to resolve disputes, which includes mediation if requested by BBB. Other dispute resolution options, including arbitration, may be recommended by BBB when other efforts to resolve a dispute have failed. BBB may consider a business’ willingness to participate in recommended dispute resolution options in determining compliance with these standards.”
The company currently shows no rating based on 0 complaints filed in the last 36 months.
What Merchants Say
There are no current reviews on the Allied Wallet profile; however, previously a complaint detailed 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 “F” Performance
Based on the company’s staggering legal issues, we have adjusted the BBB‘s score to an “F.”
Allied Wallet Fees and Rates
A Closer Look at the Contract
Don't Fall Into An Expensive Trap. See Who The Worst Processors Are.
Turnkey Solution Rate
1.00% - 4.99% + $0.10
Enterprise Solution Rate
1.00% - 4.99%
Early Termination Fee
PCI Compliance Fee
Equipment Lease Terms
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 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 Allied Wallet review.
Allied Wallet Jobs and Employment
Hiring Standards and Ethical Marketing Assessment
Audit Your Current Statement To Find Its Hidden Fees
Processing statements are intentionally complicated so that they can overcharge you. Get clarity before you switch.
Employs Independent Resellers
Advertises Deceptive Rates
Discloses All Important Terms
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 Allied Wallet 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. Obviously, this does not compare favorably to our list of best credit card processors.
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 Allied Wallet 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 Allied Wallet fees.
Allied Wallet Review Summary
Our Final Thoughts and Opinions
One of the Worst Processors Available
Considering the spectacular level of illegal activity that Allied Wallets has been convicted of, 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, merchants will be better served by working with a top-rated merchant account provider.
Customer & Employee ReviewsWhat Others Are Saying About Allied Wallet