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Navigating Flagship Merchant Services: Critical Insights for Businesses

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Flagship Merchant Services

Rating
D
2/5
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Pros and Cons of Flagship Merchant Services

Pros

No setup fees
Quick application process
High approval rates

Cons

High complaint volume
Lacks pricing transparency
Poorly rated customer support
Potential cancellation fees
Complicated Fee Structure

Overview

This review of Flagship Merchant Services provides a clear look at a long-standing provider in credit card processing for small to medium-sized businesses. Flagship offers a wide range of services, including EMV and NFC-compliant terminals, Clover POS systems, mobile card readers, and e-commerce payment solutions. We focus on their payment gateway, mobile solutions, and POS systems, highlighting how their payment options work across in-store, online, and mobile platforms.

We also look at customer feedback and industry reviews, pointing out issues like customer service quality, billing transparency, and fees. The review covers legal challenges, including lawsuits for false advertising, which raise concerns about their business practices.

This analysis gives readers a balanced view of Flagship Merchant Services, evaluating the strengths and weaknesses of their solutions and reputation. It aims to help business owners make informed decisions about their payment processing needs.

About Flagship Merchant Services

Screen Capture of Flagship Homepage
Flagship Merchant Services Homepage

Flagship Merchant Services is a large credit card processor based out of Charlestown, Massachusetts. The company was founded in 2001 and has become a large super-ISO over the last two decades. Flagship is a reseller of credit card processing services provided by Fiserv and subsidiary of Paysafe (formerly iPayment). It should also be noted that Flagship’s parent company, PaySafe, owns some of the worst-rated credit card processors that we have reviewed, including Leaders Merchant Services.

Products & Merchant Services

Payment Processing

Flagship Merchant Services processes major credit and debit cards for small to medium-sized businesses. Their services include EMV and NFC-compliant terminals, Clover POS systems, mobile card readers, e-commerce payment solutions, phone and mail order capabilities, cash advances, gift cards, loyalty programs, and a business management portal.

Payment Gateway

Flagship Merchant Services offers a secure payment gateway compatible with various e-commerce platforms. The gateway includes features like fraud detection and prevention, recurring billing, and customizable payment pages.

Mobile Solutions

Flagship provides mobile payment solutions, enabling businesses to process transactions wherever their customers are.

In-Store, Mobile, and Online Solutions

Flagship offers a range of payment processing options, including in-store, mobile, and online solutions.

Branded Gift Card Service

Flagship Merchant Services provides a branded gift card service as part of their comprehensive merchant services.

Point of Sale (POS) Systems

Flagship offers Point of Sale (POS) systems as part of their transaction processing services, catering to various business needs.

Wireless Payments and E-commerce

Flagship also provides wireless payment solutions and e-commerce payment options for businesses operating online.

Customer Reviews & Sentiment

Understanding Flagship Merchant Services Customer Feedback

Flagship Merchant Services, given its scale and operational tenure, presents a concerning volume of customer dissatisfaction, evidenced by various negative reviews across consumer forums and over 190 comments on this page. A recurring pattern in these grievances points towards undisclosed fees, unannounced fee hikes, contract cancellation difficulties, and charges persisting post-cancellation. One account underscores the disparity between the company’s advertised and actual practices, highlighting unexpected and substantial charges, coupled with misleading BBB accreditation claims.

Enhancing Transparency and Client Support

The frequency and nature of these complaints suggest systemic issues within Flagship’s sales and billing practices, often attributed to inadequate fee disclosure. For Flagship to enhance its standing, a reevaluation of these practices is imperative, focusing on clear communication and transparency. Currently, Flagship’s support infrastructure, while inclusive of a customer service contact form, falls short of what’s expected from a leading credit card processor in customer service.

Concerns Over Aggressive Retaliatory Measures

Flagship’s approach towards criticism, marked by threats and coercive attempts to remove unfavorable reviews, raises significant ethical concerns. Such measures, rather than addressing the root causes of customer dissatisfaction, appear to prioritize silencing critique over meaningful resolution, further tarnishing the company’s reputation.

Flagship’s Customer Service Reach

Flagship offers a toll-free customer service line and an online support form. Despite these channels, feedback indicates a pervasive dissatisfaction with the quality and responsiveness of customer support.

Industry Scores & User Ratings

Online Ratings Summary
PaymentPop1
BBB Rating1
Trustpilot Rating1.9
Google Maps1
Yelp Rating1
ConsumerAffairs Rating1
Average Rating1.18

PaymentPop Rating for Flagship Merchant Services

Negative Feedback

I found out after selling my business that flagship/Wells Fargo has been charging me fees for a merchant services account that I do not recall setting up and never used. They sent me a copy of contract with a computer generated signature and hundreds of invoices that I had never received. The total fees charged from 2016 to 2024 are in the area of $15,000

The fees were apparently increased every year with the later fees in the area of $235 per month included non compliance and non use fees.

Positive Feedback

There are no positive reviews published about Flagship Merchant Services on the PaymentPop website.

Flagship BBB Rating

Flagship Merchant Services has an average customer review rating of 1/5 stars on BBB based on 4 customer reviews. The company has also received 20 customer complaints in the last 3 years. A common theme in the reviews is dissatisfaction with billing practices and customer service.

Negative Feedback

Bad service, highest processing fees, when you decide to cancel, hit you with fees for months from different acounts. Trying to stop their payments. But so far they got about $1000 out of me after closing account. Each month some new charge pops up.

I was told when setting up the account for my small business that there were no fees involved, nor was it listed about any fees on the document. I have been charged for the last 4 months, and when I tried to resolve it this morning, they said they would not stop billing until I filled out an account closure document and he refused to refund the money. I asked to speak with his supervisor and said he did not have a contact number but would have them contact me. It has been 4 hours, and no one has called me. AuthorizeNet that they partner with did refund the money when they saw that I never used them. This seems very fishy and unethical for a business in money services.

Positive Feedback

There are no positive reviews published about Flagship Merchant Services on the BBB website.

Trustpilot Rating for Flagship

Flagship Merchant Services has a rating of 1.9 stars on Trustpilot based on 13 customer reviews. A significant majority of the reviews are negative, with 90% of them being 1-star ratings. Common themes in the reviews include dissatisfaction with service, misleading information from sales representatives, and issues with account closures and fund holds.

Negative Feedback

Cancelled my account in April but they continue to charge me outrageous charges! I’ve been trying to cancel and my last charge from them is $290 in one month with no service from them! Included extra fees for NOT using their services!! They said I need to fill out cancellation paperwork but I never receive it. Don’t waste your time or money. What a scam.

Positive Feedback

I need Merchant service, I searched and find that Flagship, was Ideal for my online business. L called on of their sales Representative, and he fill my application on the phone, and email me my application to sign it all that tacks 15 minutes. 48 hours later I was up and running, I place a real order, and get through. That is great service and perfection.

Google Rating for Flagship Merchant Services

Flagship Merchant Services has a 1 out of 5 star rating based on 5 user reviews on Google.

Positive Feedback

There are no positive reviews published about Flagship Merchant Services on Google.

Negative Feedback

Wish this company would verify phone numbers instead of bombarding people with calls for YEARS!! Would not recommend willingly giving this company your personal information. They also have a habit of deleting google reviews. Steer clear!

Yelp Rating for Flagship Merchant Services

Flagship has a 1 out of 5 star rating based on 35 user reviews on Yelp.

Positive Feedback

My dad is using their virtual terminal called Expinet. He loves and and it does exactly what he needs. Recommended.

Negative Feedback

This company is terrible. We have literally lost thousands because of their lack of attention to fixing our configuration. I’m tired of calling begging for their help. Customers vote with their feet, and we are running, not walking, away from Flagship. They are a sinking ship.

ConsumerAffairs Rating Analysis

Flagship Merchant Services has an average customer review rating of 1.0 stars on ConsumerAffairs based on 299 reviews. A significant portion of the reviews are negative, with 47% of the reviews being 1-star ratings. Common themes in the reviews include issues with customer service, misleading or deceptive practices, and difficulties in canceling services or obtaining refunds.

Negative Feedback

As the others I signed up with Flagship merchant cause of low rate, however that was the beginning of my nightmare. I signed up with the rep (Shelby) over the phone on 12/02/2022, received the terminal on the 8th, started to using them for processing on the 9th. From 9th to the 12th I didn’t receive any penny from them, I thought maybe the weekend it takes longer so I wasn’t worry about it until I read an email that night from Paysafe (they claim paysafe/flagship as the same company), it said they determined to close my account and my account has been closed effective immediately funds remain held for 180 days. I contacted them, they agreed to release my money in 1-3 business day. When I checked my account they did deposited the amount from the 9th-11th, 12th went missing total $685.00.
– Review from December 17, 2022

I have been with Flagship for over 5 years and have had nothing but problems with them. They are very deceptive in their practices. They tell you one thing and do another. I was told that I would not be charged a monthly fee and yet every month there is a fee on my statement. When I call to question it, they tell me it’s a standard fee that everyone pays. This is not what I was told when I signed up. They also charge very high rates for processing credit cards. I would not recommend this company to anyone.
– Review from January 15, 2023

Positive Feedback

There are no positive reviews published about Flagship Merchant Services on the Consumer Affairs website.

Source: ConsumerAffairs

Processing Rates & Fees

Flagship Merchant Services Contract

Flagship merchant account rates and fees may vary based on factors such as business type, processing volume, and the agent facilitating the account setup. While the company typically offers a month-to-month contract without cancellation fees, there are reports of such fees being applied, indicating some inconsistencies. Additionally, an annual PCI Compliance fee of $99 is standard, along with various monthly fees. Some complaints mention a $29.99 monthly fee for Womply affiliate marketing, with instances of automatic enrollment in a free 60-day trial in late 2016, leading to subsequent charges if not opted out. Furthermore, several reviews highlight ongoing monthly charges post-cancellation.

Virtual Terminal and Payment Gateway Pricing

In addition to its in-store payment processing, Flagship Merchant Services promotes its virtual terminal and payment gateway services. However, pricing details for these services are not disclosed on the website. Typically, additional fees such as gateway fees, technical support fees, batch fees, and transaction rates apply to these e-commerce services.

Negotiate Your Rates

Prior to signing up, business owners should thoroughly review and understand Flagship’s merchant account agreement to avoid surprises. Complaints about undisclosed fees or unexpectedly high rates are not uncommon. While Flagship can offer interchange-plus pricing, it’s not actively promoted.

Flagship Merchant Services offers various e-commerce solutions

Lawsuits & Legal History

The lawsuit, Durango Merch. Servs., LLC v. Flagship Merch. Servs., LLC, casts a spotlight on Flagship’s business practices, with the court ruling against Flagship for false advertising and unfair competition, resulting in a mandate to cease misuse of Durango’s trademarks and compensate for damages. This legal outcome emphasizes the need for honesty and fairness in competitive business conduct.

Employee Reviews & Sales Practices

Deceptive Rate Quote

We have previously located one use of deceptive marketing by Flagship in which the company advertised on its homepage and in Google Adsense ads that “rates start at 0.38% plus $0.19 per transaction.” This rate quote is misleading because it only applies to a particular transaction type, but the majority of a client’s transactions will run at much higher rates. Flagship fails to mention that the business owner will experience other rates and fees in addition to the unrealistically low rate quote. As you can imagine, these types of quotes can lead to confusion. Flagship removed this specific rate quote from its website in the past few years, but replaced it with the just as deceptive “rates start at 0.38%” on its homepage. As of this review update, the homepage no longer advertises these rates. Businesses may also encounter similar “teaser” quotes when speaking directly with Flagship representatives. This type of marketing disqualifies the company from being added to our list ofbest credit card processors.

Questionable Review Website Ranking

Flagship Merchant Services is listed as a top pick with numerous ethically questionable review websites. Many of these websites appear to be in parternship with PaySafe group or possibly owned by PaySafe through a web of alternate DBAs. These websites consistently list the same “top rated” providers, almost of of whom have a poor rating with legitimate review websites. A few examples of these shady review sites, according to our opinion, are:

  • thetop10sites.com
  • idealcomparison.com
  • top10.com
  • best10creditcardprocessing.com
  • compareguroo.com
  • toppaymentprocessing.com
  • best-ccp.com
  • comparisun.com

However, there are numerous such websites that appear at the top of search results as advertisements when researching credit card processors. Business owners are advised to proceed with caution when reviewing credit card processors from websites that resemble the ones listed above.

Gift Card Promotion

Flagship’s homepage currently advertises a “Meet-or-Beat” Processing Rate promotion, offering a $200 AMEX gift card if Flagship does not provide the lowest total processing cost. The terms and conditions of this promotion are not found on the website. Instead, business owners must submit contact information and speak with a representative in order to learn more information about this promotion. In general, these types of promotions are a sales gimmick because the company only has to be a penny cheaper to avoid paying out the $200 gift card.

If you are seeking an ethical way to substantially and permanently lower your processing costs, consider getting an independent merchant account statement audit.

Numerous Sales Complaints

Flagship Merchant Services appears to primarily use inside sales staff to market its services instead of using outside independent sales agents. Inside sales personnel are the preferred marketing strategy for this site because the sales tactics of these agents can be better controlled. This is assuming that the company doesn’t encourage deceptive sales practices, which may be an issue with this processor. Numerous Flagship Merchant Services reviews indicate that agents fail to fully disclose important fees and contract terms. On the surface, Flagship does not appear to engage in any egregiously deceptive practices such as bait-and-switch rate quotes. However, the consistent Flagship Merchant Services complaints about undisclosed fees have lowered its score to an average grade of “C” in this section. If you suspect that Flagship is charging you hidden fees, we recommend seeking a free third-party statement audit.

Flagship Merchant Services Competitors

Compare Flagship Merchant Services to competitors that earned top marks.

Bottom Line

Flagship Merchant Services has garnered numerous reviews and complaints regarding its fees and business practices. As a subsidiary of PaySafe, which has also managed other poorly rated merchant account providers, Flagship’s reputation is marred by reports of deceptive sales practices and excessive billing. Its grade remains unchanged from the last review, largely due to ongoing concerns around these practices.

To improve its standing, Flagship should focus on reducing future client complaints related to billing issues, hidden fees, and challenges with service cancellations. Transparency and a commitment to customer satisfaction are essential for regaining trust. Until significant improvements are made, business owners should consider opting for a top-rated payment processor that prioritizes fair terms and exceptional service for their merchant services.

Read Actual User Reviews

All user reviews have been moved to our partner, PaymentPop.com

Contact Flagship Merchant Services

Contact & Customer Support
CEOBruce Lowthers
SVPNathaniel Short
Headquarters30721 Russell Ranch Rd Ste 200, Westlake Village, CA 91362
Sales(866) 781-8781
Support(888) 272-7624
Websiteflagshipmerchantservices.com