Electronic Merchant Systems (emscorporate.com) 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. Electronic Merchant Systems is a registered ISO/MSP of BMO Harris Bank, Chesapeake Bank, and Merrick Bank with headquarters located at 5005 Rockside Road, Penthouse 100, Independence, Ohio 44131. Dan Neistadt is listed as the company’s CEO.
In March 2015, the Consumer Financial Protection Bureau (CFPB) filed a complaint against Global Payments, Electronic Merchant Services, Frontline Processing, and Pathfinder Payment Solutions in connection with a “phantom debt” scheme that allegedly attempted to collect nonexistent debts from consumers. The CFPB’s complaint alleges that these four payment processors facilitated transactions for multiple debt collection companies owned by Marcus Brown and Mohan Bagga. According to the complaint, these debt collection companies used robocalls to target millions of consumers, who they then threatened in order to obtain debt payments that were not actually owed or that didn’t even exist. The CFPB further alleges that Global Payments “ignored numerous red flags of the debt collectors’ illegal conduct, including consumer disputes that described the scheme and communication problems with the debt collectors.” The outcome of the CFPB’s complaint is currently pending.
- Sales & Marketing: Electronic Merchant Systems hires independent sales agents and has received a moderate number of complaints about its sales practices.
- Costs & Contract: Electronic Merchant Systems offers an 18-month contract with an early termination fee of $595.
- Complaints & Service: Electronic Merchant Systems has received more than 65 public complaints.
- BBB Rating: Electronic Merchant Systems has an “A+” rating with the Better Business Bureau and has received 133 complaints in the past three years.
- Rates & Fees: How Merchants Got The Best Rates With Electronic Merchant Systems