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In this review of Fiserv, formerly known as First Data, we'll provide an in-depth overview of the key aspects businesses should consider when evaluating the company's payment processing services. We'll begin with a brief history of the company, including notable acquisitions and mergers. After that, we'll discuss the various merchant services Fiserv offers, including credit and debit card processing, hardware sales and leasing, payment gateways, and e-commerce solutions. Additionally, we'll explain Fiserv's role as a direct processor and its partnerships with numerous resellers and and merchant account marketers (sub-ISOs).
Controversies and Legal Issues
We'll also address some of the challenges and controversies surrounding Fiserv, such as common customer complaints, legal issues, and government fines. This section will include a thorough examination of the company's customer support options, along with key contact information for various service needs.
Customer Experience
To give a well-rounded view, we'll explore Fiserv's online ratings and customer feedback to highlight common issues experienced by its clients, providing a balanced perspective on the company's overall performance from a user standpoint.
Costs and Commitments
Finally, we'll dig into Fiserv's fee structure and contract terms, with special attention to the implications of signing up for services through one of its network of independent resellers. The goal of this Fiserv review is to help business owners determine if Fiserv is the right fit for their card processing needs.
Listen to a summary of this review:
About Fiserv
Fiserv stands as a global giant among credit card processing services. The company primarily generates revenue by offering back-end card processing services to Independent Sales Organizations (ISOs), banks, and various merchant service providers worldwide. Fiserv has also made strides in the point-of-sale technology sector with its Clover POS system (see our Clover POS Review). A significant expansion occurred in May 2017 when Fiserv acquired CardConnect for $750 million, followed by the purchase of BluePay in October of the same year. In a landmark development, First Data merged with Fiserv in January 2019 through an all-stock deal valued at $22 billion, with Frank Bisignano, the former CEO of First Data, continuing as the CEO of the merged entity.
Continuing its growth trajectory, Fiserv acquired Radius8 for $14 million and Ondot Systems for $270 million in 2021, along with the purchase of BentoBox for an undisclosed sum. The company’s acquisition spree didn’t stop there; it also included Finxact, Merchant One, The City POS, and Yacare. Additionally, Fiserv has formed a strategic partnership with Central Payments, further expanding its influence and capabilities in the financial services technology sector.
Acquisitions and Partnerships
Fiserv’s growth strategy includes acquiring companies like CardConnect, BluePay, and Ondot Systems, and forming partnerships to enhance its service offerings and technological capabilities.
Resellers & Banking Partnerships
Fiserv distinguishes itself in the merchant services industry as a direct processor with major credit card networks like Visa and MasterCard. This direct processing capability sets the company apart from many other merchant services organizations that rely on intermediary banks or processors like Fiserv to handle transactions. Being a direct processor allows Fiserv to have more control over the processing and, potentially, offer more competitive rates to high volume businesses.
While Fiserv does maintain a modest direct sales force, the company predominantly leverages partnerships with third-party resellers through a white label program that allows companies to market and sell merchant services under their own branding. This extensive network of partners has enabled Fiserv to reach a broad range of clients across various industries and geographical locations.
Furthermore, Fiserv has played significant role in the credit card processing operations of some of the largest banks in the United States, providing the underlying credit card processing services for Wells Fargo Merchant Services and, formerly, Bank of America Merchant Services which ended its joint venture in 2020 to provide its own merchant services. These partnerships, along with thousands of others, contribute to Fiserv’s status as one of the largest, if not the largest, processor in the world.
Equipment Leasing Controversy
In addition to its core credit card processing services, Fiserv operates a POS (Point of Sale) leasing division through First Data Global Leasing. However, this division has received significant amount of negative reviews, with much of criticism directed at the terms and conditions of the leasing agreements and the quality of the leased equipment. In fact, a competitor offering nearly identical leasing services was was shut down by the New York Attorney General (see our review of Northern Leasing Systems).
Products & Merchant Services
Credit and Debit Card Processing
Fiserv offers comprehensive card processing services, including authorization, settlement, and funding for credit and debit card transactions.
Point-of-Sale (POS) Solutions
Fiserv’s Clover POS system provides a versatile solution for processing sales transactions, managing inventory, and engaging with customers, combining both hardware and software components.
Mobile and Online Payment Solutions
Fiserv enables businesses to accept payments through websites, mobile apps, and other digital platforms with their mobile and online payment solutions.
Merchant Cash Advances
Fiserv offers merchant cash advances, providing businesses with access to working capital based on their future sales.
E-commerce Solutions
Fiserv provides a range of e-commerce solutions, including payment gateways and shopping cart integration, to facilitate online transactions.
Fraud and Risk Management
Fiserv equips businesses with tools and services for fraud detection and risk management, protecting both businesses and their customers from fraudulent activities.
Data Analytics and Reporting
Fiserv offers data analytics and reporting tools to help businesses track transactions, understand customer behavior, and make informed decisions.
Financial Services Technology
In addition to merchant services, Fiserv provides financial services technology solutions for banks and financial institutions, including account processing services, electronic bill payment, and digital banking solutions.
Customer Reviews & Sentiment
Public Feedback and Reviews
After conducting thorough research on Fiserv’s customer reviews and commentary, we’ve identified diverse trends and patterns in client satisfaction, offering insights into what to expect when engaging with this credit card processor. While there are commendable aspects of user experiences, there are also areas of concern.
Positive Aspects Highlighted by Clients
Modern and Reliable Technology: Fiserv’s “Clover” payment hardware line garners widespread praise for its reliability and advanced features, providing efficient payment processing, robust security measures, and user-friendly interfaces.
Support for Businesses of Varying Sizes: Fiserv is recognized for its support of small, medium, and enterprise-level businesses, tailoring solutions to meet diverse needs and offering tools previously accessible only to larger corporations.
Customization and Flexibility: Clients value the customization and flexibility of Fiserv’s services, enabling them to tailor solutions to their specific business needs, even amid operational changes.
Global Reach and Comprehensive Services: Fiserv’s global presence and extensive array of financial services under one umbrella receive positive mentions for the convenience they provide to customers worldwide.
Positive Customer Service Experiences: Despite mixed reviews, many users report positive interactions with Fiserv’s customer support teams, citing knowledgeable assistance, efficient issue resolution, and proactive customer care.
Areas of Concern
Fiserv has faced a notable volume of customer complaints covering various aspects of the company’s fees, policies, and services. Our investigation revealed a significant number of negative Fiserv reviews, exceeding 600 within our comment section below and over 400 additional complaints on other consumer protection websites.
Sales Practices and Transparency: There are consistent concerns about deceptive sales tactics, particularly from resellers and sales agents, leading to surprises and misunderstandings regarding contract terms and conditions.
Customer Service Challenges: Numerous complaints revolve around difficulties in dealing with Fiserv’s customer support, including long wait times, difficulty in issue resolution, and perceived lack of attentiveness.
Billing and Contract Disputes: Billing issues, hidden fees, and unclear contract terms are recurring themes, resulting in dissatisfaction and financial burdens on businesses.
Hardware Costs and Commitments: Dissatisfaction with the costs and lease terms of credit card processing hardware is common, along with reported functionality and reliability issues.
Concerns Regarding Resellers and ISOs
Misleading Sales Tactics: Customers report encountering misleading or aggressive sales tactics from some resellers and ISOs, resulting in unfulfilled promises and incomplete information about services offered.
Lack of Transparency in Contract Terms: Many complaints stem from a lack of transparency in contract terms, with customers locked into long-term contracts with high cancellation fees.
Hidden Fees and Unexpected Charges: There are frequent reports of hidden fees and unexpected charges not disclosed during the sales process, leading to surprise costs for customers.
Inconsistent Customer Support: Customer support provided by resellers and ISOs is inconsistent, with some customers experiencing difficulties in getting timely and effective assistance.
Customer Support Options
Fiserv offers customer service directly to merchant account customers via a 24/7 call center, with resellers also providing assistance. However, confusion may arise regarding which entity is responsible for servicing accounts.
Industry Scores & User Ratings
Online Ratings Summary
PaymentPop
1
BBB Rating
1
Trust Pilot Rating
3.8
Software Advice Rating
4.3
Average Rating
3
PaymentPop Rating for Fiserv
Negative Feedback
I just made the mistake of signing up with First Data because I didn’t do my homework. I have not yet been processing for 30 days and it turns out there are extra fees they are charging that were not listed in the contract. I’d like to go ahead and simply close the account and use these hidden fees as the reason. This contract also came with a non-cancellable equipment lease from First Data Global Leasing that I’d like to close as well. I got the equipment, not because I needed it, but as a result of the merchant contract. On top of that, the equipment doesn’t do everything I need it to do and it’s not necessary that I have it to run my business. So, I’d like to get out of both agreements. Since I’ve processed for such a short time and the charges do not agree with the contract and the lease was opened because of the contract, can I still get out of both? How would this affect ETF’s and their lost “income”?
Positive Feedback
There are no positive reviews published about Fiserv on the PaymentPop website.
Fiserv BBB Rating
Fiserv, Inc. has an average customer review rating of 1 out of 5 stars on the Better Business Bureau (BBB) website, based on 130 customer reviews. Common themes among these reviews include complaints about poor customer service, issues with account handling, and dissatisfaction with the company’s response to customer concerns.
Negative Feedback
We called 3 times to cancel services and return merchandise. Each time we got the transfer game. Each time they had no record of the previous call and continue to bill us for machines we no longer use. Today we were told they could not guarantee we would receive a return label and we should simply ship back and keep the tracking number in case the machines are lost. When we receive shipping confirmation we then need to call and cancel the service. The fees are already a far cry from the best deal but the ability to cancel service when the contract is over and return their equipment is excessive. It clearly is all part of the game to continue billing for services not being used.
Positive Feedback
There are no positive reviews published about Fiserv, Inc. on Better Business Bureau.
Trustpilot Rating Analysis
Fiserv, Inc. has an average customer review rating of 1.9 out of 5 stars on Trustpilot based on 13 customer reviews. The common themes in the reviews include poor customer service, issues with their merchant services, and difficulties in resolving problems.
Negative Feedback
When I called for help to resolve an issue they put me on hold and forwarded my call to US Bank. Neither US bank nor Fiserv have helped me to find this missing $2785.51
Would not recommend
Positive Feedback
Very helpful, fast and reliable service
Software Advice Rating Analysis
Fiserv has an average customer review rating of 4.1 stars on Software Advice based on 23 customer reviews. Common themes in the reviews include appreciation for its ease of use and integration with other software like QuickBooks and Shopify. However, some users mention issues such as system lag, difficulties with customer service, and limitations in software functionality.
Negative Feedback
LISA from the banking sector, who has been using Fiserv for more than 2 years, reviewed the service in July 2021. She finds the Maxxar software for phone banking very basic and antiquated, lacking advanced features and voice options. She also mentions frequent service disruptions and a general lack of support for this product.
– Review from July 2021
Ryan, from the computer software industry, using Fiserv monthly for less than 2 years, reviewed it in August 2023. He appreciates the robustness of the payment processor but criticizes the slow customer service response time, mentioning that they have had tickets open for months without answers.
– Review from August 2023
Positive Feedback
Eve, from the hospital & health care sector, using Fiserv daily for less than 12 months, gave a review in November 2018. She finds it quick and easy to take payments, appreciates the integration with QuickBooks and Invoice ASAP, and likes the feature of resending receipts easily.
– Review from November 2018
Dustin, from the medical practice industry, using Fiserv daily for less than 12 months, reviewed it in August 2018. He praises the ease of use, the simplicity of processing payments, and the fast processing of transactions.
– Review from August 2018
Processing Rates & Fees
Fiserv Rates and Fees Breakdown
Fiserv discussing rates and fees on its website.
Fiserv provides direct merchant account services with a pricing structure subject to negotiation, impacting service length commitments and associated costs. Unlike some competitors, Fiserv doesn’t publicly disclose a standardized fee structure for its credit card processing services. Instead, the company grants considerable discretion to its sales representatives to set fees and rates. This approach yields a wide variation in pricing, often contingent on the business owner’s knowledge of prevailing pricing models.
Merchants well-versed in industry benchmarks stand a better chance at negotiating favorable rates. Armed with knowledge, they can challenge high fees or unfavorable terms, seeking reductions or modifications aligning closer with industry standards or their transaction patterns. Conversely, less informed merchants might accept initial offers, potentially incurring higher costs.
Impact of Sales Commissions
Fiserv’s sales representatives, incentivized by commission structures, may push merchant accounts with higher rates and fees. The commission system rewards representatives for contracts with higher costs, posing a potential conflict of interest. This dynamic could prioritize representatives’ earnings over merchants’ best interests, especially if merchants lack familiarity with fee structures.
Tiered Pricing vs. Interchange-plus
Fiserv’s representatives typically offer tiered pricing models, critiqued for opacity compared to Interchange-plus. In a tiered structure, transactions group into tiers, each with its rate, potentially costing merchants more due to higher markups and fee unpredictability. Interchange-plus pricing, conversely, offers transparency, separating interchange fees from the processor’s markup, aiding merchants in understanding transaction costs.
Hardware Expenses
Fiserv primarily promotes its “Clover” POS systems and payment processing hardware but also offers traditional options. Hardware pricing isn’t publicly disclosed, suggesting representatives retain flexibility to negotiate prices, potentially for higher commissions or to compete with rival offers. It’s uncertain if Fiserv still leases hardware via First Data Global Leasing, known for costly, non-cancellable leases.
The Contractual Landscape
Fiserv’s service agreements and terms appear variable, shaped by merchants’ knowledge and representatives. While Fiserv historically offered long-term, binding agreements with hefty termination fees, recent shifts suggest softened policies. However, reports of surprise cancellation fees and auto-renewing contracts persist. Concessions by Fiserv, often tied to equipment discounts, aren’t always commensurate with service commitments, as voiced by merchants.
Fiserv Reseller Pricing
Fiserv’s reseller costs vary significantly, driven by resellers’ pricing discretion. Resellers can set margins and fees atop Fiserv’s base rates, leading to a wide price spectrum. While some resellers transparently outline fees and margins, others may not, underlining the need for comprehensive research and comparisons. The financial impact of pricing differences underscores the importance of informed decision-making.
Reseller Contract Flexibility
Resellers, especially larger ones, tailor service agreements, adjusting contract lengths, cancellation terms, and hardware costs. This flexibility allows customized solutions but could yield less favorable terms. Some resellers might extend contracts, increase cancellation fees, or inflate hardware costs to boost margins. Customer service levels can also vary, contrasting resellers with Fiserv’s direct service.
Prospective Fiserv clients should thoroughly comprehend all pricing and contract terms. Simplified credit card processing alternatives are available among this list.
Lawsuits & Legal History
Fiserv has faced legal actions and fines, including lawsuits related to acquisitions, termination fees, authorization fees, and data breaches, along with fines for labor violations and settlements for fraud charges.
Fiserv’s Acquisition of First Data: Valued at $22 billion, Fiserv’s acquisition of First Data marked a significant milestone in the financial industry. However, this expansion has not been without legal challenges. Here’s an overview of notable legal issues and settlements involving First Data, now part of Fiserv:
Class-Action Lawsuit by Alan Skulsky: In response to the acquisition, Alan Skulsky, a minority stockholder in First Data, filed a class-action lawsuit in the Delaware Chancery Court. While the outcome of this lawsuit is undisclosed, it underscores concerns raised by stakeholders regarding the acquisition.
Legal Issues of First Data (Part of Fiserv): In 2017, First Data, now part of Fiserv, faced a class-action lawsuit in New York, alleging the imposition of excessive termination fees on equipment leases. This lawsuit, demanding a jury trial, brought attention to concerns over unfair financial practices within the company.
Lawsuit Against First Data by Peel Payments (2016): Peel Payments, a First Data reseller, filed a lawsuit in 2016 alleging a significant increase in authorization fees for some merchants, from $0.05 to over $0.60 per transaction. This discrepancy in fees, noted to exceed typical authorization fee standards, raised questions about fee transparency and fairness.
Lawsuit Against Fiserv by Bessemer System Federal Credit Union (April 2019): In April 2019, Bessemer System Federal Credit Union alleged that Fiserv failed to address vulnerabilities in its platform for banking websites and online applications, raising concerns about the security and reliability of Fiserv’s digital infrastructure.
Lawsuit Against Fiserv’s Bank of America Merchant Services Arm (July 2021): In July 2021, claims were made against Fiserv’s Bank of America Merchant Services arm, alleging the charging of excessive fees not included in merchant contracts. These claims highlighted ongoing concerns about billing transparency and fairness in Fiserv’s services.
Lawsuit by Municipal Credit Union Against Fiserv (2022): In 2022, Municipal Credit Union alleged negligent and fraudulent practices by Fiserv, leading to a data breach exposing sensitive information of thousands of MCU members. Seeking compensation for protection costs and damages, MCU underscored the importance of data security in financial services.
Repeated Fines for Labor Violations: Fiserv/First Data has faced multiple fines for labor violations, including wage and hour violations totaling $51,565 and economic sanction violations amounting to $23,336.
Settlement for Fraud Charges: First Data, as part of Fiserv, settled with the Federal Trade Commission (FTC) for $40.2 million, resolving charges related to its involvement in four scams. These charges stemmed from alleged illegal actions committed from 2012 to 2014, highlighting the importance of regulatory compliance and ethical conduct in the financial industry. (Source: Reuters)
These legal issues and settlements reflect the complexities and challenges faced by financial institutions like Fiserv, emphasizing the need for transparency, compliance, and accountability in their operations.
Employee Reviews & Sales Practices
We analyzed numerous employees reviews from various sources to gain insight into the company’s work culture, management practices, and overall employee satisfaction – variables that can also affect a business owner’s experience with the company.
Work Environment and Culture
Employees often describe the work environment at Fiserv as fast-paced and dynamic, reflecting the company’s position in the rapidly evolving financial technology industry. Many appreciate the opportunity to work on challenging projects that push the boundaries of financial services and technology. The company’s commitment to innovation is frequently cited as a motivating factor, providing employees with a sense of being at the forefront of industry changes.
However, some reviews indicate that the fast-paced nature of the work can lead to a high-stress environment. Employees have mentioned the pressure to meet tight deadlines and manage large workloads, which can sometimes impact work-life balance. Despite these challenges, there is a general consensus that the work is intellectually stimulating and offers opportunities for professional growth.
Management and Leadership
The leadership at Fiserv receives mixed reviews from employees. On the positive side, some employees commend their managers for being supportive and fostering a collaborative work environment. They appreciate the open-door policy of some managers and their willingness to listen to employee concerns and suggestions.
Conversely, other reviews point to inconsistencies in management styles across different departments and locations. Some employees have expressed concerns about a lack of clear communication from upper management, leading to uncertainties about company direction and employee expectations. There are also mentions of challenges in getting recognition and visibility for achievements, particularly in larger teams.
Employee Benefits and Compensation
Fiserv is often recognized for offering competitive compensation and a comprehensive benefits package. Employees appreciate the health insurance, retirement plans, and paid time off policies. These benefits are seen as reflective of the company’s commitment to its employees’ well-being and long-term financial security.
However, some reviews suggest that the compensation may not always be commensurate with the workload or industry standards, particularly in junior or mid-level positions. There are also comments about the variability in pay scales across different roles and departments.
Sales Positions & Tactics
User reviews of Fiserv often touch upon the company’s sales tactics. These reviews, primarily from clients and customers, provide a different angle on how Fiserv trains it saleforce.
A recurring theme in these reviews is the mention of aggressive sales tactics. Some users have reported experiences with sales representatives who are highly persistent, sometimes to the point of being intrusive. There are accounts of representatives using high-pressure strategies to close deals, which can leave customers feeling overwhelmed or coerced.
Additionally, there are mentions of a lack of transparency in sales pitches, with some customers finding that the actual terms and conditions of services differ from what was initially presented. This includes discrepancies in pricing, contract terms, and the specifics of service offerings.
Actual Employee Reviews
People are great, not super demanding, great work-life balance, AMAZING maternity leave, and great benefits overall. Managers are wonderful and don’t micromanage.
I’ve worked for Fiserv for 10 years. I’ve been remote for the last 8. When leadership changed to Frank Bisignano the entire organization started on a downward spiral. This list is long so I will try to keep it succinct 1. Pay has not kept up with either the market or inflation. 2. No flexibility in work arrangements. Remote is no longer an option. Relocation is a requirement and working onsite from a local office instead of moving is not an accepted compromise.
Fiserv Competitors
Compare Fiserv to competitors that earned top marks.
Fiserv, previously known as First Data, stands out as a significant player in the credit card processing industry, providing a diverse range of services designed to meet the needs of businesses across various sectors. With its comprehensive suite of products, including the Clover POS system, merchant cash advances, and online reporting tools, the company leverages its global reach to deliver efficiency and usability that many businesses appreciate. However, customer feedback reveals a mixed experience, with concerns about pricing transparency, contract terms, and customer service often coming to light. Reports of hidden fees, lengthy contracts, and inconsistent support highlight that while Fiserv’s services can be empowering, the customer experience is not always consistent. Thus, it’s vital for potential clients to thoroughly assess their specific needs and negotiate favorable terms when considering Fiserv.
Adding to the complexity is the role of resellers in Fiserv’s business model. Individual resellers have the autonomy to set their own pricing and contract terms, leading to varied experiences that depend on the specific reseller involved. This makes it crucial for businesses to conduct thorough due diligence when selecting a Fiserv reseller. Understanding all aspects of any agreement and how it aligns with business goals is key to navigating potential challenges and securing the best possible terms.
