UPDATE 5/8/2017: The Justice Department has charged Michael Mendlowitz and Richard Hart with wire fraud, mail fraud, and conspiracy to commit wire and mail fraud in relation to their operations as executives of Commerce Payment Systems. The Justice Department charges the company with “masterminding a years-long scam that took more than $30 million from more than 10,000 small businesses, who relied upon CPS to help them process debit card and credit card sales,” specifically stating that Mendlowitz and Hart “operated a fraud scheme founded on false claims of very low fees, along with false promises that there were ‘no hidden fees,’ and that rates were ‘guaranteed for life.’ In truth, however, CPS customers were charged all manner of hidden fees, and MENDLOWITZ subsequently altered customer accounts to add even higher fees. Among other deceptive tactics, MENDLOWITZ and HART used a ‘cost comparison calculator’ that ostensibly showed potential customers a direct comparison between what they were currently paying versus what they would pay if they became customers of CPS. However, these cost comparison calculators were intentionally designed to conceal many of the fees that the customers would be charged.” Each charge carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
The Commerce Payment Systems website is no longer active, and it appears that the company has closed. We are unable to determine whether this closure is temporary or permanent, but we have ceased updating this review for the time being. A LinkedIn profile for a Michael Mendlowitz names him as the president of Sapphire Capital, but it is unclear whether this is the Michael Mendlowitz who formerly served as CEO of Commerce Payment Systems. If you have any information about the current status of Commerce Payment Systems (including any rebrandings or DBAs), please share it in the comment section below this review.
Commerce Payment Systems (commercepaymentsystems.com, commercepaymentgroup.com) is a merchant account provider serving small merchants in most industries. There is some evidence that Commerce Payment Systems is an ISO of North American Bancard. According to multiple complaints, however, the company also does business as Evolution Bankcard, which is a subsidiary of EVO Payments International. It is therefore possible that Commerce Payment Systems is somehow linked to EVO Payments International, but this relationship is unconfirmed at this time. Launched in 2006, Commerce Payment Systems is a registered ISO/MSP of Deutsche Bank AG in New York. Michael Mendlowitz is listed as the CEO of Commerce Payment Systems, which is located at 1465 Broadway, Hewlett, New York 11557.