UPDATE 12/8/2016: Element Payment Services has been combined with Mercury Payment Systems to create Vantiv Integrated Payments. The Element brand appears to have been retired as of this time, and Element no longer appears to sell products as an independent organization. See our Vantiv review for up-to-date information about this company.
Element Payment Services (elementps.com) is a merchant account provider based on Phoenix, Arizona, that entered the credit card processing industry in 2001. Element announced that it had been acquired by Vantiv in July 2013. Element Payment Services primarily focuses on providing payment solutions to large enterprises and software makers that need PCI DSS-compliant payment applications. Despite this focus, it appears that the company will serve merchants of just about any size. Element also has its own branded payment gateway called the “Element Express Processing Platform.” Element Payment Services is a registered ISO/MSP of First National Bank of Omaha and is located at 500 North Juniper Drive, Suite 100, Chandler, Arizona. Sean Kramer is listed as the president and CEO of Element Payment Services.
Sales & Marketing
Key Points - Sales & Marketing
|Employs Independent Resellers||No|
|Advertises Deceptive Rates||No|
|Discloses All Important Terms||No|
Element Payment Services appears to rely on telemarketing, strategic partnerships, and an in-house sales team to market its services. There is no indication at this time that the company employs independent sales agents, and we are currently able to locate only one Element Payment Services review that describes unethical behavior by the company’s sales staff. The merchant in this case was led to believe over the phone that she would not be signing a contract, only to later learn that she had in fact agreed to three years of service. Despite the merchant’s confusion, Element Payment Services enforced the terms of the contract in full. To the company’s credit, Element Payment Services does not appear to engage in deceptive advertising strategies in its official materials.
Element Payment Services Marketing Example
Costs & Contract
Key Points - Costs & Contract
|Early Termination Fee||Liquidated Damages|
|PCI Compliance Fee||Variable|
|Equipment Lease Terms||Variable|
The standard Element Payment Services contract (available below) is a three-year agreement through Vantiv with automatic renewal for two-year terms, a Liquidated Damages early termination fee, and either Interchange-plus or tiered pricing. At this time, we cannot confirm specifics regarding other fees, such as PCI Compliance fees, monthly minimum fees, or rate structures. However, some merchants have reported that the company added a $199 annual fee in August of 2014.
The Liquidated Damages clause found in this contract is uncommonly complex, and it charges two different amounts upon termination depending on whether the merchant is on an Interchange-plus or tiered pricing plan. For Interchange-plus merchants, the company takes the average monthly fees assessed during the merchant’s three most expensive months of service and multiplies that amount by the number of remaining months in the merchant’s contract. For merchants who are on a tiered pricing schedule, the company takes the same three-month average, subtracts 2% of the merchant’s average monthly sales dollar volume, and then multiplies that amount by the number of remaining months in the merchant’s contract.
In light of the company’s complicated termination penalty and long-term agreement, we have scored Element’s contract terms a “D.” See the Element Payment Services Terms and Conditions.
Complaints & Service
Key Points - Complaints & Service
|Total Online Complaints||<10|
|Live Customer Support||Yes|
|Most Common Complaint||N/A|
We are currently able to locate five Element Payment Services negative reviews, although none of these refer to the company as a ripoff or a scam. Nearly all of the complaints report billing errors, unexpected fees, poor customer service, and difficulty cancelling service. Element’s decision to add an annual fee of $199 for all merchants in August 2014 also seems to have resulted in a moderate uptick in complaints since our last review. The Element Payment Services website provides dedicated phone and email support contact information, but these channels may be partially serviced by Vantiv.
Key Points - BBB
|Product & Service Complaints||4|
|Billing & Collection Complaints||10|
|Advertising & Sales Complaints||0|
|Guarantee & Warranty Complaints||0|
Note: We have adjusted this company’s BBB rating according to our own standards. To better understand why we adjust BBB ratings, please see our Rating Criteria.
Element Payment Services is showing Better Business Bureau accreditation since 2005 and currently boasts an “A+” BBB rating. The company has had 14 complaints filed in the last 36 months. Ten were related to billing and collection, while four were related to problems with the product or service. All of these complaints were resolved with BBB assistance. Element has also received one negative review and one neutral review, although it should be noted that these reviews are not subject to verification by the BBB. Since it is our philosophy that “A+” ratings should be reserved for companies with zero complaints, we have slightly adjusted the BBB’s grade to a “B+.”
About Phillip Parker
Hi, I’m Phillip and I’m disgusted by the state of credit card processing in the U.S. and abroad. I believe that the industry has been overrun by people who engage in fraud and deception in order to steal money from hard working business owners. I’ve made it my mission to expose the companies and individuals who engage in predatory marketing, pricing, and contracts, or just provide terrible service. Along with uncovering the bad guys, I’ve also discovered the good guys who do stand out from the status quo. CPO is a website where you will find ratings and reviews of these companies along with advice on how to save money and which service providers consider. Together we can move the industry in a positive direction. If you would like to help support my work, please checkout “Fee Sweep” my eGuide to getting the lowest possible fees when accepting card payments. If you haven’t heard of “interchange” this advice will save you hundreds, even thousands, in processing fees.Schedule a Consultation with Phillip
Related: Phillip’s Top All-Purpose Merchant Account Picks
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