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Electronic Payment Systems: Reviews & Complaints
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Note: As of 2021, the FTC has ruled that Jay Wigdore, Michael Peterson, Electronic Payment Solutions of America, and Electronic Payment Services is banned from processing payments and telemarketing. We are leaving our review up for those previous customers, but the business was effectively out of the payment processing industry. However, it appears that the company is back in operation, which is concerning. Please leave a comment below if you have any information on the company’s operating status.
Founded in 1994 by John Dorsey, Electronic Payment Systems is a midsize merchant account provider based in Englewood, Colorado. In addition to offering credit card processing services, Electronic Payment Systems (EPS) also provides a variety of other business financial services including a self-branded ACH payment plan service called EZ Payment Plan (formerly EPS90). This service allows clients to offer a 90-day payment plan to customers and appears to be mentioned in many client complaints against the company.
Before we dive in, here’s a short summary of what we’ll cover:
- Electronic Payment Systems’ various payment processing services.
- EPS was banned by the FTC from being in business, but somehow they appear to still be operating.
- The company has received a very large number of complaints.
- The company’s contract is deceptive and includes a large number of excessive fees.
Electronic Payment Systems Payment Processing
EPS offers credit card payment processing services. They aim to simplify the process for businesses and provide guidance on contracts and payment structures. EPS provides merchant services, including payment processing solutions tailored to different types of businesses such as brick-and-mortar stores, web or e-commerce businesses, and mobile services.
Mobile Payment Solutions
For businesses that require mobile payment solutions, EPS offers services that allow payments to be accepted pretty much anywhere.
EPS offers to look at statements from other service providers to help businesses understand their current fees and explore changes in their contracts.
Business Types and Industries Served
EPS serves different business types and industries, although specific industries are not listed on the website.
Location & Ownership
John Dorsey is the CEO of Electronic Payment Systems. Their headquarters are at 6472 S Quebec 2, St Bldg, Centennial, Colorado, 80111, and they are a registered ISO/MSP of Esquire Bank, NA, Jericho, NY.
Table of Contents
Electronic Payment Systems Customer Reviews
Here's What Their Clients Say
|Total Online Complaints||100+|
|Live Customer Support||Yes|
|Most Common Complaint||Hidden Fees|
High Complaint Total
There a a huge number of negative Electronic Payment Systems reviews filed online for a processor of its size, some of which can be found in our comment section below. Many of the complaints are in regard to the EZ Payment Plan (formerly EPS90) payment service the company offers, but a large portion also point to credit card processing issues. If you have your own Electronic Payment Systems review to make, please do so in the comments below.
Electronic Payment Systems Complaint Contents
Just like we experienced, numerous clients report being told that the merchant account agreement is month-to-month only to find out that it is not when they try to cancel. Not only is the merchant account agreement a one-year (or more) auto-renewing term, but it appears that a few clients were led to believe that their equipment leases would not let them cancel service with EPS. One client even reported that he opted in for a “purchase protection plan” that also had a one-year agreement and monthly fee. Aside from this, one of the most common complaints was the nondisclosure of EPS’s $85 annual fee during the account signup process. Several of the reports also complained of poor customer service.
Electronic Payment Systems Response To Criticism
There are several rebuttals by EPS representatives to many of the complaints filed online, and nearly all of them are very unprofessional. Instead of attempting to resolve the complaints, the representatives issued backhanded apologies, attacked the clients’ intelligence, and blamed them for not reading the fine print of the contract. This pattern has precluded EPS from not ranking among the top payment processors for great customer service.
Complaints From Electronic Payment Systems’ Agents
Lastly, there are also a few complaints from former agents mostly indicating that they were misled at some point during their employment with the company. This further confirms the issues that the company appears to be having with its sales tactics.
Electronic Payment Systems Lawsuits
In July 2017, the FTC filed a complaint against Electronic Payment Systems and several of its sub-ISOs alleging that the company’s employees knowingly laundered payments for a fraud scheme called “Money Now Funding.” 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 are banned from processing payments and telemarketing, effectively putting them out of the industry. However, they appear to be functioning again, though we do not know how this is legally possible.
Electronic Payment Systems Customer Support Options
Electronic Payment Systems has a dedicated customer support phone number that operates 24 hours a day, 7 days a week. Customer service agents offer new customer on-boarding, statement review, and transition services for new customers. Even with this comprehensive telephonic support, Electronic Payment Systems does not rank among the top merchant account providers for customer service.
Electronic Payment Systems Customer Service Numbers
- (888) 859-9219 – Customer Service
- (800) 863-5995 – Toll-Free Local Office
- (303) 221-2510 – Local Office
- (844) 691-3205 – Sales
Electronic Payment Systems Online Ratings
Here's How They Rate Online
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.
“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
There are no positive reviews published about Electronic Payment Systems on the BBB website.
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.
“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
There are no positive reviews published about Electronic Payment Systems on the PissedConsumer website.
Electronic Payment Systems Fees, Rates & Costs
A Closer Look at The Contract
|Monthly & Annual Fees||Yes|
EPS’s contract includes a costly liquidated damages-style cancellation fee. A one-year service term is less than the average length for the merchant services industry, and EPS’ agents should not feel compelled to hide this fact (see the Sales and Marketing section for more on this). The company’s standard merchant agreement also discloses a multitude of additional fees as well as a high qualified rate beginning at 2.99% with a transaction fee of $0.20. Aside from the normal monthly fees and processing fees that will vary by client, EPS also has a $99.50 annual fee for each terminal the business uses, a 99.50 annual PCI compliance fee, a 99.50 annual EMV compliance fee, a $.8.95 regulatory fee, a $6.95 government compliance fee, a $25 monthly minimum fee, a mobile payments fee of $12.95 per month, a monthly administration fee of $10, and an additional $10 debit administration fee.
Other EPS Contract Terms
Another version of the company’s terms and conditions outlines a two-year agreement with an annual PCI Compliance fee of $99.50 and an early termination fee of $295 plus Liquidated Damages, so it appears that clients can encounter various contract terms and fee structures through EPS. None of the company’s contracts we have found would compare favorably to those offered by the industry’s cheapest merchant accounts.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, EPS also dedicates a portion of its website to advertising its virtual terminal and payment gateway services. However, pricing on either of those services is not disclosed other than the company’s qualified rate of 2.99% plus $0.20. The company’s merchant agreement does disclose a $15 monthly gateway fee and a $25 wireless access fee. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.
Long-Term Equipment Leases
EPS also appears to lease credit card processing equipment through Northern Leasing Systems and First Data Global Leasing. Clients have reported extremely high monthly fees for the equipment and that the leases are non-cancellable for 48-month terms. The company also charges a terminal warrant fee of $9.95 for a single unit or $14.95 for multiple units. Business owners are advised to fully understand the terms of any proposed equipment leases before signing any documents and to purchase the equipment outright rather than a lease if they have the funds to do so.
High Rates, Excessive Fees, and Equipment Leases Result in an “F” Overall
The EPS merchant agreement discloses a multitude of red flags. First and foremost, the company’s qualified rate for transactions begins at 2.99$, which is much higher than what other merchant accounts charge. The excessive amount of seemingly redundant fees is another huge cost for merchants. Lastly, long-term equipment leases add further monthly charges to those already abundant. For these reasons, EPS receives an “F” in this category.
Electronic Payment Systems Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Uses Independent Resellers||Yes|
|Discloses All Important Terms||No|
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.
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