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Is Electronic Merchant Systems Worth Your Business? Everything You Need to Know

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Electronic Merchant Systems

Rating
D
2.3/5
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Pros and Cons of Electronic Merchant Systems

Pros

Advanced security protocols
Large direct processor
Diverse products/services

Cons

Expensive tiered rates.
Contract terms complaints
Customer service issues
Long-term contracts
Potential cancellation fees

Overview

In this review of Electronic Merchant Systems (EMS), a U.S. based merchant account provider focused on small businesses, we examine their payment solutions, including POS systems, mobile payments, online gateways, virtual terminals, and mobile services, as well as how acquisitions of Total Touch POS and Paysley have expanded their offerings. We cover EMS’s rates, fees, and contract terms to outline potential costs, while also analyzing customer and employee feedback, common complaints, and industry ratings to present a balanced perspective. Our review also considers EMS’s marketing strategies, customer loyalty programs, and legal challenges, including lawsuits and their outcomes. By highlighting both positive and negative experiences, this overview provides businesses with the insight needed to decide whether EMS is the right payment processing partner.

About Electronic Merchant Systems

Screen Capture of Electronic Merchant Systems Homepage
Electronic Merchant Systems Homepage

Electronic Merchant Systems is an Ohio-based merchant account provider that first opened in 1987. The company specializes in providing a variety of merchant services to U.S. small businesses. Electronic Merchant Systems is owned by or appears to also do business as the Francis David Corporation, and it seems that one of the two entities is a direct processor. In 2018, EMS acquired Total Touch POS, and in 2022, they purchased a majority interest in Paysley.

Products & Merchant Services

Payment Processing

Electronic Merchant Solutions (EMS) provides services enabling merchants to accept a variety of payment types, including credit and debit cards, e-wallets, and gift cards. Their range of processing options includes point-of-sale (POS) terminals, mobile payments, and online payment gateways.

Payment Gateway

EMS’s payment gateway is a secure platform that allows merchants to accept online payments. It supports credit and debit cards, e-wallets, and ACH payments. The gateway can be customized to match the merchant’s branding and integrated into their website or mobile app.

Online Payment Processing by Electronic Merchant Solutions

EMS offers e-commerce payment gateways, designed to securely process online credit and debit card transactions. These gateways are compatible with many popular e-commerce platforms.

Virtual Terminal Service

EMS’s virtual terminal service enables businesses that operate over the phone or via mail order to process card payments without physical equipment. Card details are entered manually into a secure online system.

Mobile Payment Processing

EMS provides solutions for mobile payment processing, allowing businesses to accept payments via mobile devices. This is particularly useful for businesses that operate outside traditional retail environments.

Customer Loyalty Programs

In addition to payment processing, EMS offers customer loyalty and gift card programs aimed at increasing customer engagement and loyalty.

Point of Sale

EMS offers various POS solutions, including the Total Touch and MaxxPay countertop terminals. Total Touch is tailored for restaurants and bars, featuring open table management, online and mobile ordering, employee scheduling and timekeeping, cloud-based reporting, and tab management. MaxxPay offers cloud-based software, inventory management, employee permissions and timekeeping, transaction reporting, and supports EMV and NFC payments.

Customer Reviews & Sentiment

Overview of Electronic Merchant Systems Reviews

Our investigation has uncovered over 70 negative Electronic Merchant Systems (EMS) reviews, with a notable number of customers labeling the company as a scam or a ripoff. Complaints frequently highlight issues such as misrepresented rates, onerous contracts and equipment leases, aggressive sales tactics, unsatisfactory customer service, steep termination fees, and unfavorable treatment of employees. Despite EMS’s moderate complaint volume relative to its size and market presence, the recurring nature of these issues has significantly impacted its reputation. We invite individuals with firsthand experiences with EMS to contribute their perspectives in the comments section below.

Concerns Raised by Merchants

Merchants have voiced serious concerns over EMS’s practices, including unexpected fee increases upon contract renewal and burdensome cancellation penalties. Disturbingly, one report details a $1,500 cancellation fee for a terminal lease, enforced under threat of legal action. Additionally, a publicly available response from an EMS representative to a customer complaint not only failed to address the concern but also inappropriately accused the complainant of dishonesty.

Electronic Merchant Systems Customer Support

Despite offering 24/7 phone support, live chat, and email assistance, EMS struggles to effectively address merchant issues internally, as evidenced by the volume and severity of complaints. This discrepancy indicates a gap between the support services advertised and the actual resolution of customer concerns.

Industry Scores & User Ratings

Online Ratings Summary
PaymentPop1
BBB Rating4.27
Trustpilot Rating2.3
Google4.2
Yelp Rating1.8
ComplaintsBoard RatingN/A
Average Rating3.14

PaymentPop Rating for Electronic Merchant Systems

Negative Feedback

It is a scam company. It is as plain as simple as that. They will hold your money citing chargeback ratio and they will use every wrong chargeback to support their claims and even call customers to scare them into filing a chargeback for already refunded transactions. They have around $14500 of our money on hold. They don’t communicate anything and let your money go into risk reserve so they can hold it for longer periods. We have won every chargeback and whenever we are close to getting below 2% threshold then somehow we get a chargeback for already refunded transaction and EMS says they can’t do anything about it and it has to affect the ratio. This is simply fraud to hold your money. Stay away from them!!!

Positive Feedback

There are no positive reviews published about Electronic Merchant Systems on the PaymentPop website.

Electronic Merchant Systems BBB Rating

Electronic Merchant Systems has an average customer review rating of 4.27/5 stars on Better Business Bureau based on 48 customer reviews. The company has received 90 complaints closed in the last 3 years, with 34 complaints closed in the last 12 months. Common themes in the reviews and complaints include issues with billing and collection, as well as some customers expressing dissatisfaction with the company’s response to their concerns.

Negative Feedback

Horrible company, horrible customer service, very rude and challenging. How old my payout and caused four overdraft fees to my business account. I would leave no stars, but that was not an option.

Positive Feedback

Of all the credit card companies I have done business with, I can safely say EMS is the best so far! Their service is excellent. They help with your business in every way necessary to handle today’s credit and debit card customers.

Trustpilot Rating for Electronic Merchant Systems

Electronic Merchant Systems (EMS) has a 2.3 rating on Trustpilot, with a majority of the 54 reviews being negative. The common themes in these reviews include complaints about poor service, bad communication, undisclosed fees, and issues with fund holds and payment processing. Many reviewers express frustration with the company’s practices and customer service.

Negative Feedback

EMS is by far the worst merchant services company I have ever dealt with. They’ll shut down your account unexpectedly and hold your funds. I strongly advise other business owners to steer clear of EMS. Their lack of communication and unreasonable policies can easily burn your business to the ground. Save yourself the headache and find a more reliable payment processor.

Positive Feedback

My terminal was fried from a power surge. They quickly resolved the issue sending me a new terminal for the next day.

Google Rating for Electronic Merchant Systems

Electronic Merchant Systems has a 4.2 out of 5 star rating based on 48 user reviews on Google.

Positive Feedback

Well being In business for over 30 years has allowed us to try handful of companies to handle our credit card transactions and deposits and we haven’t seen a better service yet then EMS. They sent over a guy named Rudy to take care of us and he has handled our account well enough for me to want to leave a review lol. Great rates and great customer service, I would recommend their services over the competitors. Can’t beat free equipment!

Negative Feedback

Don’t waste your time with these con artists. They just say what you want to hear to get you off the phone and then the following day act like nothing happened and that you never talked to anyone. So heads up if you decide to use them record and save EVERYTHING for they can’t keep their story straight.

Yelp Rating for Electronic Merchant Systems

Electronic Merchant Systems has a 1.8 out of 5 star rating based on 5 user reviews on Yelp.

Positive Feedback

I have been with them for almost 2 years and its awesome!!! I use the FLOK system which is similar to the Starbucks online rewards and the chic-fil-a rewards that I use. Its super convenient for my deli market and just increased my revenue immensely!! I had an issue with my system and was able to call them late at night to help assist me and they brought someone out early in the morning to fix the problem, everyone was completely nice from the beginning and until this day!

Negative Feedback

I have never gotten good service from this company. I have a company that charges a large invoice every year and it’s like pulling teeth to get them to release the funds when I charge that companies card. Many years I end up cancelling the transaction through EMS and running it through Square. And trust me, I am no fan of Square. The concept is good here…better rates than square and large enough to handle it. But it just isn’t here. I’m still on the hunt for a replacement of Sqaure!! This isn’t it….sad!

ComplaintsBoard Rating Analysis

The complaints page for Electronic Merchant Systems on ComplaintsBoard.com features several customer complaints. These complaints highlight issues such as poor customer service, difficulties in resolving account problems, and dissatisfaction with fees and contract terms.

Negative Feedback

Today, on 4/19/2022, I attempted to resolve an alleged balance with Electronic Payment Solutions. The representative was rude, cutting me off multiple times. I offered to pay $150 of the $250 balance, but the representative questioned why I wouldn’t pay the full amount. Previously, this representative had been disrespectful, doubting my intention to call back and complaining about his efforts to reach me. This lack of professionalism and customer service is unacceptable.
– Complaint from K. Kulas

My business has struggled to resolve an issue with Electronic Merchant Systems for weeks. We’ve been ignored by the retention department and customer service. We wanted to end our relationship with EMS due to poor service and high fees, but faced an early contract termination fee of around $700 and were told a new credit card company would have to pay approximately $1400 to take over our account. The fees are outrageous, and the service has been terrible. I will never work with this company again.
– Complaint from J. Howell

Positive Feedback

There are no positive reviews published about Electronic Merchant Systems on the ComplaintsBoard.com website.

Source: ComplaintsBoard.com

Processing Rates & Fees

Costly Contract Terms

The standard Electronic Merchant Systems contract typically spans 18 months with an automatic renewal for another 18 months. It includes an early termination fee of $595, a monthly $50 PCI non-compliance fee, a semi-annual “technology upgrade and update” fee of $75, a monthly minimum fee of $25, and tiered pricing. The purpose of the “technology upgrade and update” fee, often replacing a PCI Compliance fee, remains unclear. Compared to industry averages, these contract terms are notably expensive and fall short of competitiveness with the cheapest merchant accounts available.

Avoid Equipment Leases

A few business complaints have surfaced, alleging that Electronic Merchant Systems enrolled them in costly equipment leases through Lease Finance Group, operating under Northern Leasing. While this could be attributed to independent sales agents rather than the company directly, any association with Northern Leasing warrants caution among business owners. The poor reputation of Northern Leasing and its aliases in the industry raises concerns. Notably, most credit card terminals are available for under $500. Long-term, non-cancellable leases could result in clients paying thousands for the same equipment, making them unfavorable contract terms to avoid.

We encourage businesses to explore our list of the best merchant accounts.

Electronic Merchant Systems payment processing Electronic Merchant Systems offers access to virtual terminals

Lawsuits & Legal History

EMS has been implicated in several legal disputes, ranging from a 2015 case involving allegations of facilitating a phantom debt collection scheme to a 2019 judgment requiring EMS to compensate a selling agency over $5.5 million for breach of contract. Furthermore, EMS successfully defended against a 2022 breach of contract and fraud lawsuit, with the court ruling in its favor. These legal encounters underscore the contentious nature of EMS’s business practices.

Employee Reviews & Sales Practices

Sales Complaints

Electronic Merchant Systems appears to utilize telemarketing and an ISO/Independent Agent program to advertise its services. These hiring practices tend to generate reports of poor training and a focus on high commissions, and EMS is no exception. We are able to locate numerous Electronic Merchant Systems reviews that accuse agents of neglecting to disclose important fees and contract provisions such as service agreement length, cancellation fees, and lease terms. Some clients also report aggressive or high-pressure sales tactics by agents.

This does not compare favorably to our list of best credit card processors.

What Agents Say

There are a few comments posted by current and former employees of the company who claim that these practices are allowed (if not encouraged) by the company. Taken as a whole, these factors warrant a “D” rating in our opinion. If you suspect that an EMS representative has snuck hidden fees into your contract, we recommend seeking a third-party statement audit.

Electronic Merchant Systems Competitors

Compare Electronic Merchant Systems to competitors that earned top marks.

Bottom Line

Electronic Merchant Systems ranks as a substandard credit card processing provider. Although the company has a moderate number of complaints outside the BBB, its significant volume of complaints within the BBB coupled with expensive contract terms are primary factors dragging down its score in this review. Business owners should meticulously read their contracts to avoid excessive or dubious fees. As one of the lowest-rated payment processors on CPO, EMS cannot be recommended for those seeking quality service and competitive rates. For a more positive experience, businesses are encouraged to consider reputable, top-rated providers instead.

Read Actual User Reviews

All user reviews have been moved to our partner, PaymentPop.com

Contact Electronic Merchant Systems

Contact & Customer Support
CEODan Neistadt
Headquarters2018 to 250 W. Huron Rd., Suite 400, Cleveland, Ohio 44113
Toll-Free General Customer Service(800) 615-1330
Sales Inquiries(866) 472-2141
General Information(800) 726-2117
Websiteemscorporate.com