Chyp (gochyp.com) is a newly created merchant account provider that is owned and operated by the previous owners of Securus Payments. Excel Corporation, the parent company of Securus Payments, sold essentially all of Securus’s operations to Chyp but retained Securus’s portfolio of approximately 5,000 merchants. As a result, nearly all of Securus Payments’s 100 employees have been hired by Chyp except for a small customer service team that will assist merchants with the transition to eVance, a separate Excel Corporation subsidiary. Chyp has agreed to board new merchants for the next three years through an exclusive partnership with eVance, which acquired Calpian Commerce in December. In effect, Chyp is the same company as Securus, with the same ownership, employees, and Portland location.
Chyp was registered as an LLC in Oregon less than a month before this review’s initial publication in May 2016, and the sale of Securus’s assets to Chyp was only announced days before this review’s initial publication. As a result, there is still a minimal web presence for Chyp at this time. For instance, the “About” page on the company’s website is not yet functional.
The former owners of Securus Payments, Steven Lemma and Mychol Robirds, are the owners of Chyp. Like Securus, Chyp is headquartered at 7724 SE Aspen Summit Dr., Suite 300, Portland, Oregon 97266. Chyp is a registered ISO/MSP of Elavon, Inc., Atlanta, Georgia; BMO Harris Bank N.A., Chicago, Illinois; and Merrick Bank, South Jordan, Utah.
Sales & Marketing
Key Points - Sales & Marketing
|Employs Independent Resellers||Yes|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
Chyp’s sales approach appears to be nearly identical to that of Securus, specifically in that it is a team of telephone appointment setters combined with a large number of independently contracted outside sales agents. This marketing strategy is frequently associated with high complaint totals in the credit card processing industry and has resulted in a large number of negative reviews for Securus. Despite the fact that Chyp is still a young brand, we are currently able to locate a handful of Chyp complaints that describe persistent telemarketing, misrepresentation of rates, and nondisclosure of fees and contract terms. Securus’s approach to selling equipment leases appears to be in practice at Chyp as well, as illustrated by a commenter below this review:
Buyer Beware—-Sales person called over the phone and sent a sales associate to my office. They were very pleasant and low pressure, but the sales associate was unable to answer some questions i had regarding the plan being offered. The first thing that seemed off was that they were offering rates lower than interchange. While it seemed odd my initial request was to not have a contract and just go month to month. A supervisor called and was happy to send me a letter outlining that there would be no contract with them and he put it in writing. At first i thought this was a great upfront thing to do and I contemplated signing up. As I studied the contract further I noted that the charge for both processing machines was going to be $109.00 a month for 48 months. I couldn’t find any language that exempted me from the terms of that contract. When I called the supervisor about this issue he said sorry i am unable to do anything about the lease. I can’t speak to the quality of the service but I am glad that I didn’t lease $600.00 worth of equipment for $5,232.00.
In a very short period of time, Chyp has received enough complaints about its sales team to lower its rating to a “C” in this section.
Costs & Contract
Key Points - Costs & Contract
|Early Termination Fee||Unknown|
|PCI Compliance Fee||Unknown|
|Equipment Lease Terms||48 Months, Non-Cancellable|
There is very little publicly available information about the standard Chyp contract at this time. The company does not list its specific pricing and terms on its website, and merchant reviews have thus far focused more on Chyp’s sales tactics rather than its pricing. However, as noted above, at least one merchant has stated that Chyp offers 48-month, non-cancellable equipment leases that can cost up to $109 per month. Securus has been known to offer very similar leases to its merchants, and it is common for Securus merchants to claim that their sales agents promoted very low rates and fees while failing to disclose the company’s exorbitant equipment leasing costs.
If Chyp’s basic merchant account contract terms are anything like Securus’s contract terms, then they likely involve a three-year contract through First Data with an early termination fee of $495 and other miscellaneous fees, including a monthly minimum of $25, a $159 annual PCI compliance fee, and a variable monthly statement fee. The company’s reliance on independent sales agents may allow for some wiggle room on many of these terms, but merchants should be prepared to negotiate in order to obtain favorable pricing.
In general, there is very little indication that Chyp offers markedly different pricing or contract terms from those offered by Securus. We will therefore assign the company a “C” in this category until more concrete information is available.
Complaints & Service
Key Points - Complaints & Service
|Total Online Complaints||<10|
|Live Customer Support||Yes|
|Most Common Complaint||N/A|
We are currently able to locate just under 10 negative Chyp reviews, none of which claim that the company is a scam. Complainants primarily mention aggressive telemarketing, misrepresentation of fees, and nondisclosure of lease terms. The content of these complaints mirrors those commonly filed against Securus. There are also a handful of positive reviews about Chyp, but we are unable to verify their authenticity at this time. Overall, the company has amassed a moderate complaint total in a very short period of operation. Chyp offers live phone customer support as well as email support to all of its merchants.
The Better Business Bureau does not currently maintain a profile for Chyp, but it does operate a profile for Securus Payments. Securus currently does not have a rating and has received 145 complaints in the past three years. We will wait until the BBB creates a dedicated profile for Chyp before we factor a BBB rating into this review.
Related: EMV Terminal Recommendations
About Phillip Parker
Hi, I’m Phillip and I’m disgusted by the state of credit card processing in the U.S. and abroad. I believe that the industry has been overrun by people who engage in fraud and deception in order to steal money from hard working business owners. I’ve made it my mission to expose the companies and individuals who engage in predatory marketing, pricing, and contracts, or just provide terrible service. Along with uncovering the bad guys, I’ve also discovered the good guys who do stand out from the status quo. CPO is a website where you will find ratings and reviews of these companies along with advice on how to save money and which service providers consider. Together we can move the industry in a positive direction. If you would like to help support my work, please checkout “Fee Sweep” my eGuide to getting the lowest possible fees when accepting card payments. If you haven’t heard of “interchange” this advice will save you hundreds, even thousands, in processing fees.Schedule a Consultation with Phillip
Related: Phillip’s Top All-Purpose Merchant Account Picks
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