Global Payments Review

Global Payments Inc. plays a major role in the credit card processing industry and has been in business for nearly 60 years. It partners with businesses in over 30 countries and is one of the few payment processors listed on the New York Stock Exchange (NYSE: GPN) and included in the S&P 500 index.

The company offers payment processing and merchant services enabling businesses to accept card payments from their customers. Through its OpenEdge division, it also provides integrated software solutions.

Key Acquisitions and Partnerships

Wells Fargo

Global Payments, through its TSYS solution business, renewed a multi-year agreement with Wells Fargo in 2020, extending their longstanding partnership that began in 1995. Under this agreement, TSYS will continue to provide processing and support services for Wells Fargo’s commercial card portfolio, leveraging TSYS’ payment technology to further the bank’s ongoing digitization efforts.

Zego

Global Payments acquired Zego, a top provider of real estate software and payment solutions, in an all-cash deal valued at $925 million, including a tax asset. Zego specializes in offering tools that help property managers and homeowners’ associations simplify rent payments, utilities, and other fees through digital platforms. With this acquisition, Global Payments expanded its reach into the real estate sector by integrating Zego’s software into its existing payment processing solutions.

Google

In 2021, Global Payments and Google formed a multi-year partnership to deliver advanced cloud-based products and capabilities, with Global Payments migrating its merchant acquiring technology to Google Cloud and becoming a worldwide merchant acquiring provider for Google. The collaboration includes joint product development, integration of Google APIs with Global Payments’ ecosystem, and strategic go-to-market activities, aiming to create a more seamless digital experience for merchants and expand both companies’ reach in the payments industry.

Acquisition of TSYS

On May 28, 2019, Global Payments announced its acquisition of TSYS in a $21.5 billion all-stock deal. The acquisition had been speculated upon for some time in the months preceding its confirmation. TSYS was among the largest merchant service providers in the world, making Global Payments’ acquisition of the company a seminal moment for the industry. The announcement follows a flurry of acquisitions among competitors as Fiserv announced its acquisition of First Data in January for $22 billion as well as its acquisition of Worldpay for approximately $35 billion.

Global Payments has has contributed significantly to consolidation of the credit card processing industry in recent years through the acquisitions of several competitors.

These purchases include:

• EVO Payments (2022) – Acquired for $4.0 billion.
• MineralTree (2021) – Acquired for $500 million in cash.
• AdvancedMD (2018) – Acquired for $700 million.
• Cayan (2018) – Acquired for $1.05 billion.
• iMobile3 (2018) – Acquired for $13.4 million.
• Heartland Payment Systems (2016) – Acquired for $4.3 billion.
• Realex Payments (2015) – Acquired for €115 million.
• Payment Processing (PayPros) (2015) – Acquired for $420 million.
• Ezidebit (2014) – Acquired for $305 million.
• Accelerated Payment Technologies (2012) – Acquired for $413 million.

Payment Processing

Global Payments offers merchant accounts and services for businesses of all sizes, enabling them to accept electronic payments such as credit cards, debit cards, and ACH transfers. The company provides the necessary hardware and software solutions for card payments, including POS systems, payment terminals, and online payment gateways.

Issuer Solutions

The company provides issuer solutions that support transactions between card issuers and merchants, addressing both consumer and commercial needs.

Industry-Specific Software

Global Payments offers specialized software tailored to various industries, including retail, restaurants, healthcare, financial services, and education. These software solutions are designed to meet the specific needs and business models of each sector.

Business Tools

For business-to-business (B2B) transactions, Global Payments provides accounts payable and accounts receivable solutions. Additionally, they offer gift and loyalty programs, email marketing tools, and analytics services.

Payroll and HR Solutions

The company offers cloud-based payroll and HR tools for employers, facilitating digital payment methods for employee compensation.

Services for Financial Institutions and Developers

Global Payments caters to financial institutions and developers by providing configurable solutions that can be integrated into other products and platforms.

Volume of Complaints

Global Payments’ moderate volume of complaints is not unusual, given its status as a long-standing payment processor and its broad customer base across multiple industries. Companies of similar scale, especially in the payment processing sector, often experience a proportional number of complaints due to the complexities of handling financial transactions. While many of these complaints reflect the operational difficulties common in high-volume financial services, they also highlight challenges in maintaining consistent customer experiences over time.

Funding Holds

A recurring complaint from merchants involves fund holds, typically occurring when transactions are flagged as suspicious or merchants exceed predefined processing limits. These holds are intended to mitigate risks associated with fraud or unusual activity. However, some merchants argue that these restrictions are applied inconsistently or without sufficient explanation, leading to operational disruptions. While Global Payments aims to protect itself and clients from financial risks, the lack of timely communication surrounding these holds often exacerbates merchant frustrations.

Customer Service as a Pain Point

Customer service issues frequently surface in negative reviews, with merchants citing long wait times and insufficient resolution of issues. Businesses, particularly those facing urgent situations like payment holds, express dissatisfaction with the support process. Some users have noted that escalations to higher management or technical support teams are often required to address more complex issues, indicating room for improvement in front-line service capabilities.

Hidden Fees and Increasing Complaints

Another point of contention involves hidden or undisclosed fees, which have drawn criticism from clients expecting more transparent pricing structures. While these fees are not uncommon in the payment processing industry, recent complaints indicate that merchants feel caught off guard by costs not outlined in their agreements. This trend, alongside a growing volume of reviews mentioning both customer service and fee-related issues, suggests that Global Payments may need to revisit its communication practices to ensure greater clarity and trust with its clients. For prospective merchants, this underscores the importance of reviewing contract terms closely before committing to any payment service provider.

Global Payments BBB Rating

Global Payments based in Niles, IL, is not BBB accredited and holds a B- rating. It has an average customer review rating of 1.03/5 stars based on 78 customer reviews and 114 complaints closed in the last 3 years. Common themes include issues with product/service and billing disputes. Global Payments Canada, located in Etobicoke, ON, is BBB accredited since 5/4/2011 with an A+ rating. It has an average customer review rating of 1/5 stars based on 3 customer reviews and 25 complaints closed in the last 3 years. The common themes here are problems with product/service and customer service issues.

Trustpilot Rating for Global Payments Inc.

Global Payments Inc. is rated “Excellent” with a 4.6/5 score on Trustpilot, based on 3,273 customer reviews. A significant majority, 79%, of the reviews are 5-star, indicating high customer satisfaction. Common themes in the reviews include positive experiences with customer service, efficient setup, and reliable transaction processing. However, there are also some negative reviews, primarily focusing on issues with service and technical difficulties.

Google Maps for Global Payments

Global Payments has a 2.2 out of 5 star rating based on 377 user reviews on Google Maps.

PaymentPop Rating Analysis for Global Payments

Global Payments has a 1.3-star rating on PaymentPop.com, based on 116 customer reviews. The majority of the reviews are negative. Common themes in these reviews include dissatisfaction with customer service, billing issues, and difficulties in resolving disputes. Customers frequently express frustration over unexpected fees, poor communication, and challenges in canceling services or resolving account issues.

Variable Global Payments Contract Terms

Client reviews indicate that rates for credit card transactions vary widely among businesses. The pricing and merchant account fees offered by Global Payments are influenced by factors such as business type, processing volume, and the reseller setting up the account. Understanding how processing fees are assessed is crucial for business owners. A sample Global Payments agreement from 2019 lists an early termination fee of $500 per location or Liquidated Damages, whichever is greater. However, it seems that entering into a month-to-month agreement can avoid the service length agreement and early termination fee. Some reviews mention undisclosed fees, such as a $299 annual maintenance fee, account holds, and challenges in closing accounts.

Virtual Terminal and Payment Gateway Pricing

In addition to its in-store payment processing services, Global Payments advertises its virtual terminal and payment gateway services on its website without disclosing pricing. Typically, additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates, apply to these e-commerce services.

Negotiate Contract Pricing

Global Payments contracts we’ve reviewed typically last for three years, including automatic one-year renewals. Business owners are encouraged to negotiate pricing and contract terms aggressively, as this scenario often allows for highly flexible fees and terms. We also recommend checking out our list of the best merchant accounts, featuring providers that do not charge termination fees or other hidden charges.

Merchant Cost Case Study: What You Can Expect

In a recent audit, we reviewed a medical office’s statement showing over $80,000 in credit card transactions for one month. During the audit, we found several cases of overbilling and unnecessary fees.

Substantial Rate Overbilling Found

On $88,258 in processing, Global Payments charged the business $4,250 in fees, resulting in an effective rate of 4.82%. This high rate shows significant overbilling since the actual interchange cost from the statement averaged below 2%. Our analysis revealed that the interchange rate for Visa cards was only 1.65%.

Excessive Monthly Fees and Charges

Our analysis uncovered over $2,000 in fees not typical of ethical credit card processors. One was a “risk assessment” fee of $1,154. Global Payments also charged $167 just to transfer funds to the business’s checking account. Additionally, they added a $139 fee for “network security” and $149 for renting a card reader that costs less than $300 to buy. The list continued with smaller fees that offered little to no real value to the business.

Avoided Losses

Our audit of this merchant account statement helped the business avoid hundreds of thousands of dollars in excess fees. We showed not only how much they were paying but also what they could save with a low-cost, ethical processor or through better negotiations with Global Payments.

Cost Analysis Summary

If you’re considering switching to Global Payments or want to ensure you’re not being overbilled, it’s essential to review your statements. A professional audit can uncover avoidable fees and ensure you fully understand what to expect before making any changes.

Global Payments has been party to a few significant legal issues, both under its own brand name and via it’s subsidiaries:

• Securities Class Action Lawsuit (2022-2024):
  • This was filed by investors alleging that Global Payments made false and misleading statements about its subsidiary Active Network’s practices. Global Payments agreed to settle this lawsuit for $3.6 million in June 2024.
• Willingham v. Global Payments, Inc.:
  • This case involved plaintiffs alleging their personal information was compromised in a data breach. While this was filed by customers, it was related to data security issues rather than general business practices.
• Investigation by Kahn Swick & Foti, LLC:
  • This law firm announced an investigation into Global Payments’ officers and directors regarding potential breaches of fiduciary duty.
• FP Omni Technologies:
  • In a $500 million lawsuit, FP Omni Technologies accuses TSYS Acquiring Solutions, a subsidiary of Global Payments, of breach of contract. FP Omni claims TSYS misrepresented its ability to process cannabis transactions, leading to business losses. The dispute intensified after Visa and Mastercard banned cannabis-related transactions, which FP Omni argues TSYS should have foreseen. TSYS dismisses the claims, stating the lawsuit is without merit and blaming regulatory challenges beyond their control.
• Heartland CEO Insider Trading:
  • The former CEO of Heartland Payment Systems, Robert O. Carr, was charged with insider trading, leading to a civil penalty of $250,628. According to the U.S. Securities and Exchange Commission (SEC), Carr provided confidential information about an upcoming acquisition of Heartland by Global Payments to his girlfriend, Katherine M. Hanratty. Using this non-public information, she bought over 11,000 shares of Heartland stock, eventually profiting more than $250,000 following the merger announcement. Carr not only shared the information but also gave her $1 million to open a brokerage account for the trades. The SEC’s complaint resulted in penalties for both Carr and Hanratty, highlighting regulatory efforts to uphold fair market practices and transparency in corporate conduct.
• Illegal Fees:
  • In 2019, Global Payments faced a class-action lawsuit alleging fraudulent fees on student loan payments. The lawsuit claimed the company improperly added hidden charges, affecting borrowers by inflating fees related to loan payments. Following the legal proceedings, the case was settled, with affected individuals entitled to compensation totaling $,600,000 as part of the agreement. The resolution aimed to address the financial impact of the deceptive practices and ensure more transparency in future transactions
• Breach of Contract:
  • In 2019, a jury awarded $135 million to Frontline Processing Corp. in a breach-of-contract lawsuit against Global Payments. The case revolved around Global Payments allegedly violating a merchant-service agreement by restricting Frontline’s access to referred merchants and shared funds. This breach effectively cut Frontline out of its own business operations, leading to the legal dispute. The jury’s verdict not only granted substantial damages to Frontline but also rejected Global Payments’ counterclaims.
• Dark Pattern Billing:
  • In 2022, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Global Payments’ subsidiary, Active Network, for deceptive practices involving the extraction of membership fees through “dark patterns.” These misleading tactics tricked consumers into enrolling in the Active Advantage membership program while registering for events, such as races or camps, without their consent. The CFPB alleged that these unauthorized enrollments generated over $300 million in fees since 2011, with many participants unaware of their subscription until charged. The lawsuit aimed to stop these practices, provide financial relief to affected consumers, and impose penalties for violations of consumer protection laws
  • In 2023, Global Payments faced two significant class-action lawsuits. The first targeted its subsidiary, Active Network, for allegedly violating California’s Automatic Renewal Law by enrolling consumers into subscriptions without their explicit consent and making it difficult to cancel. This lawsuit highlighted concerns about deceptive practices in recurring billing schemes, which often trap consumers into unwanted payments through unclear terms.
  • The second class-action lawsuit focused on alleged federal securities violations, claiming that Global Payments misled investors about its compliance policies and failed to disclose unethical practices by Active Network. These undisclosed practices, including deceptive fee extractions, posed a risk of regulatory scrutiny, leading to stock declines and financial losses for shareholders once revealed. The lawsuit aimed to recover damages for affected investors, emphasizing the company’s obligation to maintain transparency and comply with securities laws.

An Abundance of Resellers

The only strike against Global Payments in this section is how the company acquires new clients. Global Payments relies heavily on partnered independent sales organizations (ISOs) and independent sales agents (both are also called “resellers”) to market and sell its merchant accounts. Although this is a common marketing practice among larger processors, it can result in numerous client complaints because the resellers’ sales tactics are hard to control. This does not compare favorably to our list of best credit card processors.

Despite its size and nearly 60 years of experience, Global Payments receives moderate complaints, mainly about unexpected fund holds and poor customer service. Recent feedback highlights concerns over hidden fees and declining service quality, trends that may have worsened after acquiring Heartland Payment Systems. The company has also faced legal issues, including lawsuits over deceptive practices, insider trading, and debt collection schemes. While some cases were resolved, these challenges underscore the importance of compliance and transparency. Businesses should carefully evaluate these risks when considering Global Payments for their merchant services.