Electronic Payment Systems Reviews & Complaints

Payment Processing

Electronic Payment Systems (EPS) provides credit card payment processing services aimed at simplifying transactions for businesses. They offer guidance on contracts and payment structures and tailor their merchant services to various business types, including brick-and-mortar stores, e-commerce businesses, and mobile services.

Mobile Payment Solutions

EPS offers mobile payment solutions for businesses that need to accept payments on the go, via smart phones and tablets.

Statement Analysis

EPS provides a service to analyze statements from other service providers, helping businesses understand their current fees and identify potential changes to their contracts.

Business Types and Industries Served

EPS caters to a variety of business types and industries, although specific industries are not detailed on their website.

High Complaint Total

Electronic Payment Systems has garnered a significant number of negative reviews online, especially considering its size. Many complaints, some of which are detailed below, touch upon various aspects of the service, particularly issues related to the EZ Payment Plan (formerly EPS90) and credit card processing. We welcome your own Electronic Payment Systems review in the comments section.

Electronic Payment Systems Complaint Contents

Several clients have reported misleading information regarding the merchant account agreement, discovering it to be longer-term upon attempting cancellation. Instances of undisclosed fees, including an $85 annual fee, have also been cited during the signup process. Additionally, poor customer service has been a common grievance among users.

Electronic Payment Systems Response To Criticism

Representatives from Electronic Payment Systems have responded to online complaints, often in an unprofessional manner. Rather than addressing concerns, these responses have sometimes included backhanded apologies, attacks on clients’ intelligence, and shifting blame to clients for not thoroughly reviewing contracts. Such behavior has prevented Electronic Payment Systems from ranking among the top payment processors for great customer service.

Complaints From Electronic Payment Systems’ Agents

Former agents of Electronic Payment Systems have also lodged complaints, indicating instances of misinformation or deception during their employment. These complaints further underscore issues with the company’s sales tactics.

Electronic Payment Systems Customer Support Options

Electronic Payment Systems offers dedicated customer support via phone, available 24/7. Their services include new customer onboarding, statement review, and transition assistance. Despite this comprehensive support, Electronic Payment Systems does not rank among the top merchant account providers for customer service.

BBB Rating Analysis for Electronic Payment Systems

Electronic Payment Systems, a credit card merchant services company, has a BBB rating of A. The BBB profile for this company shows a total of 3 complaints in the last 3 years, with none closed in the last 12 months. The complaints primarily focus on issues related to billing and collection, as well as problems with products or services. A common theme in these complaints is dissatisfaction with contract terms, particularly regarding cancellation policies and unexpected charges.

Negative Feedback

I have a small business for which I opened a credit card processing machine in September 2019. Shortly after, I noticed many small charges on my account. I called the company and was advised to return the machine and terminate the contract, which I did. However, months later, they tried to collect more funds from our bank account, and recently, they reported over $2,000 on our credit report. I find this unfair and unethical as these were never services rendered. I returned the machine a month after starting the service, yet they are charging for the rest of the 2-year contract. – Complaint from June 1, 2022

Hello, I opened an account with EPS for my business in 2018. My business closed in 2020 due to COVID-19, and I called the company to cancel the service. Despite not processing a single sale since 2020, EPS kept my account open and charged me monthly, eventually putting me into collections. They did not close my account despite inactivity and never reached out to me before sending me to collections. This is a terrible business practice. – Complaint from April 28, 2022

Positive Feedback

There are no positive reviews published about Electronic Payment Systems on the BBB website.

Source: BBB

PissedConsumer Rating Analysis

Electronic Payment Systems has a 2.3-star rating based on 2 customer reviews and ranks 289 of 3479 among companies in the financial services category on PissedConsumer. The reviews indicate a general dissatisfaction among consumers. The rating distribution shows 50% unfavorable and 50% neutral feedback. Common themes in the reviews include concerns about customer service and issues with contract terms and charges.

Negative Feedback

Hi, my name is Dr. Nick Fennelli. I was contacted by phone by Richard Jurgens, the national sales director of Electronic Payment Systems. I have signed electronically all paperwork, received my terminal as promised, and they have done a 28 cent test deposit to my corporate bank account. Complaints against them have dropped my current issues with EPS. One, they didn’t seem to care about my credit history. Two, I was promised a $10,000 free and clear loan, no fees taken out to my corporate account. This was two weeks ago, so far just the 28 cents. Mr. Jurgens promised me $10K and said I was fully approved by underwriters, so I wait. He has not returned any of my messages recently and never disclosed any of the terms of the loans or the costs involved in the terminal. So the terminal sits. The terminal has been activated, but I will not use it until I get my loan as promised. Richard seems like a decent enough person, but where’s my loan and why did he never disclose anything about any fees, and he now has my banking information. My plan is to wait till the end of the week, then close my bank account since I don’t trust EPS. I won’t take the risk of them pulling fees out of my bank account. This is an ongoing matter, and I will be posting again as this matter evolves. So far, I am very unhappy with Richard Jurgens and EPS in general. They get a 3-star rating. My plan is to go to their competition, Durango Payment Services, which gets a 5-star rating, and send their terminal back to them in pieces after it accidentally fell on the floor. But we will see. It all boils down to my loan of $10K. Oh, Richard Jurgens also said the underwriters had two versions of my loan with different terms, payments, and interest. Sounds totally fishy to me. Just another very bad sign. – Review from May 24, 2016

We signed up after numerous sales conversations with Richard Jurgens, the sales rep. The entire reason we were shopping for a new vendor is that we felt our all-in rate of 2.79% was too high. Richard made comments about how expensive that was, and I was assured that EPS would beat that. We provided billing fees and rates from our previous provider and were quoted a rate of 2.59%. Then discovered that this rate was not an all-in rate with EPS as it didn’t cover AmEx transactions. Richard supposedly had this issue corrected. I’ve yet to receive confirmation of this. Then when we received our first statement for the full month of September 2015, our rate was 4.76% ($599 in fees charged on $12,578 of processed transactions). I immediately called Richard, the sales rep, and after several days of leaving voice messages that were not returned, I got him on the phone at 8:33 am on Monday 10/5/15 and was told that the fee we were charged were ridiculous, were a mistake, and that he would fix it. He promised to call me back by 9:30 am that morning, one hour later. He never did, and after several more unreturned voice messages, I got him on the phone again on Wednesday 10/7/15 at 8:32 am. I was told that the fees were corrected and he just needed to talk to another person there who was coming in in about 15 minutes to finalize it. Once again, I was promised a call back no later than 9:30 am, but likely much sooner. I never received a call back. I’ve left numerous voicemails since, talked to customer service, and a customer service manager named Blake twice. My last conversation with Blake on the morning of Tuesday 10/13/15 ended with him saying he couldn’t do anything for me except have me submit billing statements from our previous provider, and he could see if they could meet or beat those charges. This is what I did before I signed up with EPS. He said that the additional charges were disclosed in my contract, the sale contract that Richard walked me through via DocuSign and basically dismissed entire sections of fine print as ‘that’s just saying,’ while reassuring me that there are no additional fees or if there were, normally they are being waived. The most frustrating thing is that I specifically said to Richard on at least two occasions during the due diligence phase prior to signing up, ‘What might I be missing because I don’t want my expectation of us paying 2.59% to be violated, and in a month I have to express some form of disappointment with you.’ To this, I received the – Review from October 13, 2015

Positive Feedback

There are no positive reviews published about Electronic Payment Systems on the PissedConsumer website.

Source: PissedConsumer

Transparent Contract Terms

EPS provides a one-year contract term, which is shorter than the industry average. However, it’s essential to note that their contract includes a substantial liquidated damages-style cancellation fee, which could be costly for businesses seeking to terminate the agreement early. Additionally, EPS’s standard merchant agreement reveals various fees, including a high qualified rate starting at 2.99% with a $0.20 transaction fee. In addition to monthly and processing fees, EPS imposes several annual and monthly charges, such as terminal fees, PCI compliance fees, EMV compliance fees, regulatory fees, government compliance fees, monthly minimum fees, mobile payments fees, and administration fees.

Variable Contract Structures

EPS offers different contract terms, including a two-year agreement with distinct fee structures, such as an annual PCI Compliance fee and an early termination fee plus Liquidated Damages. The variability in contract terms and fee structures could lead to confusion for clients. However, none of the identified contracts seem competitive compared to offerings from cheaper merchant account providers.

Virtual Terminal and Payment Gateway Costs

While EPS advertises virtual terminal and payment gateway services, detailed pricing for these services is not readily available. The company’s merchant agreement discloses a qualified rate for transactions but lacks transparency regarding additional fees associated with virtual terminal and payment gateway usage, such as monthly gateway fees and wireless access fees. Clients should be aware that e-commerce services typically entail additional rates and fees beyond the qualified rate.

Equipment Leasing Concerns

EPS leases credit card processing equipment through Northern Leasing Systems and First Data Global Leasing, with reported high monthly fees and non-cancellable 48-month terms. Additionally, EPS charges terminal warrant fees for leased equipment. Business owners should carefully review equipment lease terms before committing, considering outright equipment purchase if financially viable.

Unfavorable Pricing Structure

EPS’s merchant agreement reveals high transaction rates, numerous fees, and long-term equipment leases, resulting in an overall grade of “F” in this category. The combination of high rates, excessive fees, and inflexible equipment leases could impose significant financial burdens on merchants. Business owners should carefully assess EPS’s pricing structure and explore alternative merchant account providers offering more competitive terms.

In July 2017, the FTC filed a complaint against Electronic Payment Systems and its sub-ISOs for their involvement in laundering payments for the “Money Now Funding” fraud scheme. The FTC stated that EPS and its sub-ISOs opened nearly two dozen merchant accounts under a number of fake business names to spread chargebacks across multiple accounts and avoid triggering Visa and MasterCard’s fraud monitoring systems. In March 2018, the FTC separated EPS from the other defendants, who settled for $1.3 million a few days later. However, EPS was unable to pay. In January 2021, the FTC ordered that Jay Wigdore, Michael Peterson, Electronic Payment Solutions of America, and Electronic Payment Services faced legal consequences and was later banned from processing payments and engaging in telemarketing. Despite this, the company appears to be operational again, raising questions about its legal standing.

Inside/Outside Sales Team

We are currently unable to find any misleading or deceptive advertising in EPS’s official materials. However, the company does employ both inside sales agents and independent outside resellers, and evidence was found to suggest the use of misleading sales tactics by both parties. The most common tactic found was nondisclosure of important details of the merchant account agreement, which this we have experienced directly.

Our Experience With EPS

Posing as a potential client, we spoke with the “National Sales Manager” and was told that the contract was “month-to-month with no cancellation fee.” However, upon reading the merchant account agreement, it states in section 3.05 that it is actually a one-year term that automatically renews for another year unless the client cancels within 90 days prior to the expiration. Not only did the sales manager fail to disclose this fact, but he also lied about the actual term.

Actual EPS Contract Terms

EPS may argue that without a cancellation fee, its contract is month-to-month, but the merchant account agreement states that it “shall remain in full force and effect relative to all debt purchased under this Agreement.” This vague clause means that the future monthly fees and an annual fee ($85) of the agreement are “debt” and that the client must pay them in full if service is canceled prior to the one-year term. This could be done by one lump sum, or by finishing out the contract and paying the monthly fees over time. Several Electronic Payment Systems reviews suggest that the latter is the most common scenario, but the contract allows EPS to automatically withdraw the whole amount. Although this is a clever tactic for avoiding having a defined cancellation fee, it still forces clients to pay for canceling the account prior to one year of service and is therefore an early termination penalty.

“D” Rated Sales Tactics

EPS deserves a “D” in this section in light of a large number of client complaints and our own experience. If you have experienced misrepresentation at the hands of an EPS sales agent, you can renegotiate your pricing with a third-party statement audit.

Electronic Payment Systems (EPS) appears to mislead businesses seeking credit card processing through its sales tactics and unfavorable contract terms. While complaints are expected for a midsize provider, the recurrent themes present in EPS’s feedback, combined with the Federal Trade Commission (FTC) ruling against the company, reveal a troubling pattern of deceptive practices. This pattern not only makes EPS an unsuitable choice for businesses but also led to its closure by the FTC due to these practices.

Given this history, business owners should exercise caution and seek more reputable alternatives. Readers are advised to explore top-rated merchant account providers that prioritize transparency, competitive pricing, and customer satisfaction. Comparing options carefully will help businesses secure a solution that aligns with their needs without risking the pitfalls associated with providers like EPS.